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September 21, 2010 Agenda
AGENDA CITY OF DENTON CITY COUNCIL September 21, 2010 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, September 21, 2010 at 5:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION Requests for clarification of agenda items listed on the agenda for September 21, 2010. Following the completion of the Work Session, the City Council will convene in a Closed Meeting 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 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. CLOSED MEETING Closed Meeting: A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric ("DME") for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. B. Consultation with Attorney - Under Texas Government Code Section 551.071. Receive a briefing from City's attorneys and hold a discussion, pursuant to §551.071 of the Texas Government Code, of legal issues associated with a proposed zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation on tracts 256, 257, 258, 260 and 261 of the E. Puchalski survey, with an overlay district on those same tracts, plus tract 263, containing additional restrictions as noted; the area for the zoning change encompasses approximately 4.678 acres of land located at the northeast corner of North Bonnie Brae Street and West Oak Street, in the City of Denton, Denton County, Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR City of Denton City Council Agenda September 21, 2010 Page 2 VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §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. GOVT. CODE, §551.001, ET SE Q. (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 MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U. S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards I. Presentation of the 2009 Distinguished Budget Presentation Award. 2. Green Pride Fridays 3. BUDGET ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2010, on all taxable property within the corporate limits of the city on January 1, 2010, and adopting a tax rate of $0.68975 per $100 of valuation for 2010; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. B. Consider adoption of an ordinance of the City of Denton, Texas, approving the 2010 tax rolls; and providing an effective date. C. Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2010-2011 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2010, and ending on September 30, 2011; and declaring an effective date. City of Denton City Council Agenda September 21, 2010 Page 3 D. Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2010-2011 Annual Program of Services (Budget) for the fiscal year beginning October 1, 2010, and ending on September 30, 2011 when the Budget will raise more revenue from property taxes than last year's budget; and providing an effective date. 4. BUDGET CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Budget Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Budget Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Budget Consent Agenda. Citizen comments on Budget Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Budget Consent Agenda (Agenda Items A - R). This listing is provided on the Budget Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Budget Consent Agenda. If no items are pulled, Budget Consent Agenda Items A - R below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Budget Consent Agenda. A. Consider adoption of an ordinance amending Article V, Library, of Chapter 2 of the City Code establishing operating policies and procedures; establishing fees for full access library cards for non-residents; providing a severability clause; providing for a penalty for each violation not to exceed $500; providing for a savings clause; and providing for an effective date. B. Consider adoption of an ordinance approving the expenditure of funds for the purchase of a Component Enterprise Agreement with the Microsoft Corporation to renew licensing for the use of Microsoft Windows Enterprise: Desktop Optimization Package, Remote Desktop Services and Client/Server software licensing as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR) under 4DIR-SDD- 1014; providing for the expenditure of funds therefor; and providing an effective date (File 4547-Purchase of Component Enterprise Agreement awarded to Dell- ASAP Software in the amount of $73,47932, the first of three payments, for a total 3-year licensing agreement in the amount of $220,437.96). C. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of Long Term and Voluntary Short Term Disability Benefits for the City of Denton employee benefits program; providing for the expenditure of funds therefor; and providing an effective date (RFP 4482-Long Term Disability and Voluntary Short Term Disability Benefits awarded to The Hartford with a cost of $0.20 per $100 of payroll per month, for an estimated annual cost of $111,584 and Voluntary Short Term Disability Benefits awarded to City of Denton City Council Agenda September 21, 2010 Page 4 The Hartford (with the cost per month to be determined by actual voluntary employee participation rate) in the estimated amount of $97,289). D. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of Group Term Life and Accidental Death and Dismemberment (AD&D) and Voluntary Supplemental Life and AD&D coverage for City employees; providing for the expenditure of funds therefor; and providing for an effective date (RFP 4483-Basic and Supplemental Life/Accidental Death and Dismemberment Insurance awarded to The Hartford in the estimated amount of $118,718 and Voluntary Supplemental Life Insurance/Accidental Death and Dismemberment Insurance awarded to The Hartford (with the cost per month to be determined by actual voluntary employee participation rate) in the estimated amount of $142,786). E. Consider adoption of an ordinance accepting competitive sealed proposals and awarding a three-year contract for Benefit Consultant Services for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFSP 4484-Benefit Consultant Services awarded to McGriff, Seibels and Williams of Texas, Inc. in the annual amount of $48,500 for a three year total of $145,500.). F. Consider adoption of an ordinance accepting competitive sealed proposals and awarding a three year contract for Property, Mobile Equipment, Boiler and Machinery, and Fleet Catastrophic Insurance Coverage for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFP 4558-Property, Mobile Equipment, Boiler and Machinery, Fleet Catastrophic Insurance Coverage awarded to Traveler's Insurance Company in the estimated annual amount of $164,860 for an estimated three year total of $495,580). G. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Harris Public Utility Billing System and associated software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4542-Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $97,939.52). H. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld) available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4545-Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $104,218.74). City of Denton City Council Agenda September 21, 2010 Page 5 L Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Interactive Voice Response and Outage Management System and associated software modules for Denton Municipal Electric (DME) utility available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4546-Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Mil soft Utility Solutions in the amount of $61,363.00). J. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 4548-Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, Inc. in the amount of $56,250.50). K. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department dispatching and records management available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4549-Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $198,545.26). L. Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service access and support for Enhanced Data rates for GSM Evolution (EDGE) and 3G (third-generation) wireless computer network for the Public Safety mobile computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing the expenditure of funds therefor; and providing an effective date (File 4550-Purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE), and 3G (Third-Generation) awarded to AT&T Mobility in the amount of $93,060.72). M. Consider adoption of an ordinance of the City of Denton, Texas amending the Schedule of Rates contained in Ordinance No. 2009-218 for electric service; incorporate Ordinance No. 2010-066 to amend energy cost adjustment (Schedule ECA); adding local government small rate (Schedule G2); amending local government rate (Schedule G1) to exclude customers with low demand; adding unmetered security camera rate rider (Schedule USC); amending non-standard street lighting rate (Schedule DSL) to include a facility charge; amending industrial development rider to raise minimum demand requirement and to change the name of the rider to economic growth rider (Schedule EGR); amending distributed generation from renewable sources rider (Schedule DGR) for clarity; amending independent wholesale generator rider (Schedule IWG) for clarity; City of Denton City Council Agenda September 21, 2010 Page 6 amending renewable cost adjustment rider (Schedule RCA) for clarity; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). N. Consider adoption of an ordinance amending the schedule of water rates contained in Ordinance No. 2009-219 for water service rates and water rates; amending wholesale raw water service rate to Upper Trinity Regional Water District (WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WCL); amending the fire hydrant meter deposit fee (Schedule WFH); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). 0. Consider adoption of an ordinance amending the schedule of wastewater rates contained in Ordinance No. 2009-220; providing for an amendment in the rates for dyno-dirt products (Schedule CWM); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). P. Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2009-221 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton Solid Waste Service; providing for the amendment to the residential refuse and recycling collection services rates and clarification thereof (Schedule SWR); amendment to and clarification of the multi-family refuse collection services rate and renaming it the multi-family household furniture collection service (Schedule SWMFS); amendment to the multi-family chemical collection/recycling rate (Schedule MFR); amendment to the commercial solid waste collection services rates (Schedule SWC); amendment to the commercial recycling services rates (Schedule SWCR); amendment to the constriction, deconstruction, and demolition materials services rates (Schedule SWC&D); amendment to the collection and transportation services permit and clarifications (Schedule SWP); amendment to the sanitary landfill services rates (Schedule SWL); providing for a repealer; providing for a severability clause; and providing an effective date. The Public Utilities Board recommends approval (5-0). Q. Consider adoption of an ordinance of the City of Denton, Texas providing for the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to City utilities customers contained in Ordinance No. 2009-222; adding a new customer application charge; amending section 26-3 of the Code of Ordinances regarding residential service deposits; eliminating the credit report charge; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). City of Denton City Council Agenda September 21, 2010 Page 7 R. Consider adoption of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2009-223; providing a repealer; providing for a severability clause; providing for an effective date. The Public Utilities Board recommends approval (5-0). 5. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Consent Agenda. Citizen comments on Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A - J). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A - J below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving guidelines for operation of the City of Denton Home Improvement Program (HIP) and eligibility criteria; authorizing expenditures in excess of $50,000 for projects meeting program guidelines and criteria; and providing for an effective date. B. Consider adoption of an ordinance of the City of Denton, Texas authorizing the approval of a Professional Services Agreement for an engineering firm by and between CP&Y, Inc. and the City of Denton, Texas; providing for the expenditure of funds; providing an effective date (File 4556-Professional Engineering and Design Services awarded to CP&Y, Inc. in an amount not to exceed $110,000). The Public Utilities Board recommends approval (5-0). C. Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with Solutient GeoSciences, Inc. for Hydrogeological Consulting and Analytical Services pertaining to the City of Denton Landfill as set forth in the contract, and providing an effective date (File 4571-Professional Services Agreement for Hydrogeological Consulting and Analytical Services pertaining to the City of Denton Landfill awarded to Solutient GeoSciences, Inc., in an amount not to exceed $100,869.40). The Public Utilities Board recommends approval (5-0). D. Consider adoption of an ordinance authorizing the City Manager or his designee to sign a Consent To Lien Upon Leasehold as requested by Global Maritime Supply Management, LLC, a tenant at Denton Municipal Airport, to receive financing from Comerica Bank for a facility expansion. The Airport Advisory Board recommends approval (7-0). City of Denton City Council Agenda September 21, 2010 Page 8 E. Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date ($210,200). F. Consider adoption of an ordinance of the City of Denton approving Change Order Eight, an amendment to a professional services agreement between the City of Denton, Texas and Innovative Transportation Solutions, Inc. dated March 5 2002; extending said agreement, and authorizing and ratifying the expenditure of funds for work to be performed; authorizing the City Manager or his designee to execute the change order on behalf of the City and expend funds authorized by the change order; and providing for an effective date. The Mobility Committee recommends approval (3-0). G. Consider approval of the minutes of: July 19, 2010 July 20, 2010 August 2, 2010 August 3, 2010 August 5, 2010 H. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Microsoft Corporation Client Access Licenses (CALs) software licensing as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR) under 4DIR-SDD- 1014; providing for the expenditure of funds therefor; and providing an effective date (File 4566-Purchase of Microsoft CALs software licensing to Dell-ASAP Software in the amount of $140,107.20). L Consider adoption of an ordinance of the City of Denton, Texas ratifying the action of the City Manager's award of a contract dated August 26, 2010, by and between the City of Denton and Brandt Engineering, for the purpose of installing lighting retrofit replacement, acquiring two (2) chilled water pumps 15 HP, two (2) condenser water pumps 7.5 HP, variable frequency drives (VFDs) for the chilled water pumps, and two (2) cooling towers in the total sum of $512,541, said contract having been executed pursuant to Ordinance 2010-097 relating to the City's expenditures of formula funds allocated to the City of Denton through the federal government's Department of Energy's Energy Efficiency and Conservation Block Grant Program and authorizing administration of expenditures and fiscal and administrative matters related to said Grant Program. J. Consider approval of a resolution of the City Council of the City of Denton, Texas, ("City") approving a change in the tariffs of Atmos Energy Corporation, Mid-Tex Division ("Atmos"), as a result of a settlement between Atmos and the Atmos Texas Municipalities ("ATM"); finding the rates set by the attached tariffs to be just and reasonable; finding that the additional cost for replacing steel service lines is appropriate and is approved subject to a prudence review, finding that the continuation of the rate review mechanism ("RRM"), as amended, for two years is reasonable, requiring delivery of the Resolution to the company and legal City of Denton City Council Agenda September 21, 2010 Page 9 counsel; determining that the meeting at which this Resolution was approved complied with the open meetings act; making other findings and provisions related to the subject; and declaring an effective date. 6. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a Specific Use Permit to allow changes to an existing elevation and site plan for a telecommunications tower located within a Neighborhood Residential 4 (NR-4) zoning and use district on approximately 7.908 acres. The property is located at the southwest corner of Audra Lane and Lattimore Street and is more commonly known as Lot 1, Block 1 of the Faith Tabernacle Assembly of God Addition; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (S 10-0002). The Planning and Zoning Commission recommends approval (5-0). 7. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider approval of a resolution authorizing the Mayor to execute and deliver correspondence and other documentation to Oncor Electric Delivery Company LLC ("Oncor") and the Public Utility Commission of the State of Texas regarding the proposed electric transmission line contemplated to be constricted by Oncor together with the transmission line's potential location within, over, across or in the vicinity of the City of Denton, Texas; and providing an effective date. B. Consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation on tracts 256, 257, 258, 260 and 261 of the E. Puchalski survey, with an overlay district on those same tracts, plus tract 263, containing additional restrictions as noted; the area for the zoning change encompasses approximately 4.678 acres of land located at the northeast corner of North Bonnie Brae Street and West Oak Street, in the City of Denton, Denton County, Texas (Z09-0013) The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the seven lots from Neighborhood Residential 3 (NR-4) to Neighborhood Residential Mixed Use (NRMU) subject to overlay conditions (5-1). C. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public City of Denton City Council Agenda September 21, 2010 Page 10 employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. D. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. E. 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 2010 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 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 INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Finance ACM: Jon Fortune n - SUBJECT SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2010, on all taxable property within the corporate limits of the city on January 1, 2010, and adopting a tax rate of $0.68975 per $100 of valuation for 2010; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. BACKGROUND The proposed tax rate of $0.68975 per $100 valuation, which is equivalent to the effective tax rate, is used to balance the FY 2010-11 Budget. This proposed tax rate represents a $0.02323 increase over the prior year tax rate. Of the proposed tax rate, $0.47088 will be applied to fund operations and maintenance in the General Fund and $0.21887 will be applied to fund General Fund debt service. The property tax exemptions provided by the City Council are also described in the attached ordinance. Per the direction of the City Council, the over 65 exemption has been increased from $30,000 to $35,000 in FY 2010-11. The attached tax rate ordinance also indicates that the over 65 exemption will be increased by $5,000 each subsequent fiscal year until the exemption equals $50,000 in FY 2013-14; however, each increase in the over 65 exemption will need to be approved by the City Council each year when the tax rate is adopted. All other exemptions remain at the same level as in previous years. PRIOR ACTION/REVIEW The FY 2010-11 Budget was submitted to the City Council on July 30, 2010. A workshop to present the details of the Budget to the City Council was conducted on August 5th, August 10tH August 17th, September 7th, and September 14th. A public hearing on the Budget was also held on September 7, 2010. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION The proposed property tax rate will generate $42,972,239, of which $29,336,380 will be used to fund operations and maintenance in the General Fund and $13,635,859 will be used to fund debt service. Respectfully submitted: Bryan Langley Director of Finance SALegallOur Documentsl0rdinances11Mad valorem tax. doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, LEVYING THE AD VALOREM PROPERTY TAX OF THE CITY OF DENTON, TEXAS, FOR THE YEAR 2010, ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 2010, AND ADOPTING A TAX RATE OF $0.68975 PER $100 OF VALUATION FOR 2010; PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL MAINTENANCE AND OPERATION EXPENSES AND FOR PAYMENT OF INTEREST AND PRINCIPAL ON OUTSTANDING CITY OF DENTON DEBT; PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLECTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after notice of a public hearing on the budget was published in the DRC and posted on the City's internet web site and its public access television channel as required by law on August 27, 2010, the City Council of the City of Denton, Texas, (City) held one public hearing on the proposed budget. This budget will raise more total property taxes than last years budget by $795,459 or 1.89% and of that amount $934,827 is tax revenue to be raised from new property added to the tax roll this year and the notice showing the effect of the proposed tax revenue increase was posted on the City's web site and the City's public access television channel and any additional notices and actions were completed, as required by law; and WHEREAS, this Ordinance sets a tax rate of $0.68975 that, if applied to the total taxable value, will impose an amount of taxes to fund maintenance and operation expenditures of the City that exceeds the amount of taxes imposed for that purpose in 2009; and WHEREAS, the City Council deems it in the public interest to adopt a tax rate for the 2010 tax year of $0.68975; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. By authority of the Charter of the City of Denton, Texas, and the Laws of the State of Texas, there is hereby levied and adopted for the tax year 2010, on all taxable property situated within the corporate limits of the City of Denton, Texas, on January 1, 2010, a tax rate of $0.68975 for each $100 of taxable value. This tax rate is expected to increase total revenue from properties on the tax roll by 1.89% over 2009 tax revenues. SECTION 3. Of the total tax rate, $0.47088 for each $100 of taxable value is hereby included, adopted and shall be distributed to the General Fund of the City to find maintenance and operation expenditures of the City in accordance with Section 26.05(a)(2) of the Texas Property Tax Code and any other applicable laws. SECTION 4. Of the total tax rate, $0.21887 for each $100 of taxable value is hereby included, adopted and shall be distributed to pay the City's debt service as provided by Sections 26.04(e)(3)(C) and 26.05(a)(1) of the Texas Property Tax Code and any other applicable laws. s:\Lega110ur Documentsl0rdinances1101ad valorem tax.doc SECTION 5. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. SECTION 6. The City Manager, or his designee, is directed to include the following statement on the home page of the City's Internet website: THE CITY OF DENTON, TEXAS, ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. SECTION 7. This budget will raise more total property taxes than last years budget by $795,459 or 1.89% and of that amount $934,827 is tax revenue to be raised from new property added to the tax roll this year and the notice showing the effect of the proposed tax revenue increase was posted on the City's web site and the City's public access television channel and any additional notices and actions were completed, as required by law. SECTION 8. Pursuant to Article S, Section 1-b of the Texas Constitution, and pursuant to the provisions of Section 11.13(n) of the Texas Property Tax Code, one-half percent of the assessed value of residential homesteads, or $5,000 of the assessed value of residential homesteads, whichever amount shall be greater, shall be exempt from City ad valorem taxes. SECTION 9. Pursuant to Article 8, Section 1-b of the Texas Constitution, $35,000 of the assessed value of residential homesteads of persons 65 years of age or older shall be exempt from City ad valorem taxes for 2010. The total amount of the assessed value of the exemption provided for in this section shall increase in $5,000 annual increments until such time as a total exemption amount of $50,000 is attained in accordance with the following: 2011 - $40,000 2012 - $45,000 2013 - $50,000 SECTION 10. Pursuant to Article 8, Section 1-b of the Texas Constitution, $10,000 of the assessed value of residential homesteads of disabled persons shall be exempt from City ad valorem taxes. SECTION 11. For enforcement of the collection of taxes hereby levied, the City of Denton shall have available all rights and remedies provided by law. SECTION 12. If any section, subsection, paragraph, sentence, clause, phrase or word in this Ordinance, or the application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 13. This Ordinance shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas, on this the 21St day of September 2010, at which meeting a quorum was present and the meeting was held in accordance PAGE 2 SALegal\Our Documentsl0rdinances1101ad valorem tax. doe with the provisions of the Tex. Gov't Code, Section 551.001 et seq. The City Secretary is hereby directed to record this Ordinance and the vote to adopt the tax rate. PASSED AND APPROVED this the day of , 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM. ANITA BURGESS, CITY ATTORNEY BY: ,L- Council Member Voted For Voted Aizainst Mark A. Burroughs, Mayor Charlye Heggins Dalton Gregory Jim Engelbrecht Chris Watts Pete Kamp, Mayor Pro Tem James King PAGE 3 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, approving the 2010 tax rolls; and providing an effective date. BACKGROUND As a component of the budget process, the City is required by the Texas Property Tax Code to approve the tax roll on an annual basis. The tax levy is calculated by taking the 2010 Certified Appraisal Roll (excluding property values under protest) and applying the 2010 adopted tax rate. The anticipated collection rate is 100 percent. FISCAL INFORMATION The approval of the tax roll will enable the County to mail tax bills in October 2010. Respectfully submitted: Bryan Langley Director of Finance SALega1l0ur Documents\Ordinances\] tax roll.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE 2010 TAX ROLLS; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the 2010 tax rolls of the City of Denton, Texas, which will result in a tax levy in the amount of $42,972,239 based on the Certified Appraisal Roll as approved by the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY c BY: I C- U.111 A 00 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Finance all- ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2010- 2011 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2010, and ending on September 30, 2011; and declaring an effective date. BACKGROUND The City Council received the City Manager's FY 2010-11 Proposed Budget on July 30, 2010. A workshop to present the details of the Budget was conducted on August 5, 2010. Further workshop discussions on the Budget were held on August 10, August 17, September 7, and September 14, 2010. A public hearing on the Budget was also held on September 7, 2010. During these Budget Work Sessions, the City Council directed staff to include several adjustments to the Proposed Budget. In the General Fund, the expenditure budget for FY 2010-11 will remain the same as the amount recommended in the City Manager's Proposed Budget which is $90,016,715. Due to various changes, however, the General Fund revenue budget for FY 2010-11 will decrease from the proposed amount of $88,873,519 to $88,785,482 (excluding use of reserves). The below table indicates the changes that are being incorporated. City Manager's Proposed FY 2010-11 General Fund Revenue Budget $88,873,519 Increase Proposed Tax Rate from $0.6890 to Effective Rate of $0.68975 $46,726 Increase Over 65 Exemption from $30,000 to $35,000 ($115,135) Receive Reimbursement from DME for 75% of Urban Forester Cost ($19,628) Use of Reserves $1,231,233 Total Revised FY 2010-11 Proposed Revenue Budget $90,016,715 FY 2010-11 Proposed General Fund Expenditure Budget $90,016,715 In the Technology Services Fund, staff recommends increasing the FY 2010-11 proposed budget by $250,000 from $6,556,317 to $6,806,317 to provide funding for a Disaster Recovery Datacenter. The City of Denton relies on numerous hardware and software systems for operations, billing, revenue collection, accounting and communications. A single data center in Agenda Information Sheet September 21, 2010 Page 2 City Hall East provides these services. Any loss incurred at this facility (e.g. fire, flood, physical destruction) would significantly hamper or halt operations and financial transactions. A minimal investment in disk storage, networking equipment, and software would enable a second, redundant data center to be constricted at the Spencer Substation location and provide immediate recovery of a limited set of critical software systems (JD Edwards financials, Harris billing, Exchange email, etc). Total capital expense would be $250,000 drawn from Technology Services Fund reserves. In the Recreation Fund, staff recommends increasing the FY 2010-11 proposed budget by $82,042 from $1,541,457 to $1,623,499 for temporary seasonal staffing, the need for which is created by frozen positions in the General Fund. This additional staffing is required to maintain adequate customer service. The Recreation Fund balance will be used to pay for these additional costs in FY 2010-11, but it is unlikely that this level of funding will be available in subsequent years. In the Non-Airport Gas Well Fund, the FY 2010-11 City Manager's Proposed Budget included $1.6 million in funding for a new animal shelter ($1,000,000) and comprehensive plan and mobility plan updates ($600,000). Due to the uncertainty regarding the cost estimates for these projects, staff is now recommending that this funding be removed from the FY 2010-11 Proposed Budget. As a result, staff recommends decreasing the Non-Airport Gas Well Fund FY 2010-11 proposed budget by $1.6 million from $1,992,900 to $392,900. Once cost estimates are determined with more precision, the City Council will be briefed on the project details, and if appropriate, a budget amendment can be considered by the Council at that time to provide funding. In the Tree Mitigation Fund, the cost of service transfer related to the Urban Forester position has been eliminated since a portion of this transfer will now be made from the Electric Fund (DME). As such, the Tree Mitigation Fund proposed budget has been reduced by $78,514 from $128,514 to $50,000. The expenses associated with this transfer will be absorbed by DME and the General Fund into their existing proposed budgets. In the Capital Improvement Fund (CIP) budget, staff recommends increasing the FY 2010-11 proposed budget by $2,000,000 from $176,323,947 to $178,323,947 to provide additional debt issuance capacity for the Public Safety Training Facility. The full amount of debt associated with this facility was originally planned to be sold in FY 2012-13, but staff is now proposing to issue this debt in phases in order to hopefully preserve the grant funds that have been awarded for this project. The initial phase of this project is expected to consist of the constriction of a firing range at this facility consistent with the master plan. Once project details are finalized, staff will brief the City Council on the specifics of this proposal. Agenda Information Sheet September 21, 2010 Page 3 All of the above changes are reflected in the attached Budget Resource and Expenditure Summary (Exhibit 1). In summary, the total revised City of Denton Budget is recommended to increase by $653,528 to $594,428,699 compared to the City Manager's Proposed Budget of $593,775,171. FISCAL INFORMATION The total 2010-11 expenditure budget is listed by fund below: General Fund $90,016,715 General Debt Service Fund 31,283,177 Electric Fund 144,397,734 Water Fund 38,952,688 Wastewater Fund 25,071,396 Solid Waste Fund 21,128,866 Airport Fund 3,600,657 Technology Services Fund 6,806,317 Materials Management Fund 7,318,474 Fleet Management Fund 10,039,246 Risk Retention Fund 2,581,617 Health Insurance Fund 17,958,217 Recreation Fund 1,623,499 Tourist and Convention Fund 1,314,246 Police Confiscation Fund 193,000 Traffic Safety Fund 377,640 Non-Airport Gas Wells Fund 392,900 Parks Gas Well Fund 350,000 Tree Mitigation Fund 50,000 PEG Fund 209,722 Miscellaneous Funds 1,141,324 Total Operating Expenditures $404,807,435 Grant Program $11,297,317 Capital Improvements Program $178,323,947 TOTAL EXPENDITURES $594,428,699 Agenda Information Sheet September 21, 2010 Page 4 EXHIBITS Budget Resource & Expenditure Summary Ordinance Respectfully submitted: 4 3s~ Bryan Langley Director of Finance General Fund $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 General Debt Service Fund 18,928,105 18,401,932 18,916,857 31,671,393 Electric Fund 131,650,583 151,152,370 136,386,464 147,469,327 Water Fund 36,365,372 46,096,185 40,893,134 38,952,688 Wastewater Fund 23,227,961 24,553,693 23,270,414 25,071,396 Solid Waste Fund 18,359,520 19,538,374 19,381,728 21,128,866 Airport Fund 1,602,989 2,897,072 3,112,457 3,769,658 Technology Services Fund 7,229,926 7,216,749 7,187,795 6,806,317 Materials Management Fund 8,964,328 6,978,929 6,524,266 7,318,474 Fleet Management Fund 7,135,038 10,478,650 7,692,639 10,122,835 Risk Retention Fund 2,910,959 2,837,706 2,797,706 2,890,724 Health Insurance Fund 15,818,453 18,377,480 18,929,260 17,958,217 Recreation Fund 1,263,663 1,425,702 1,403,065 1,623,499 Tourist & Convention Fund 1,402,388 1,382,665 1,268,641 1,314,246 Police Confiscation Fund 137,810 178,875 178,875 193,000 Traffic Safety Fund 180,271 181,000 338,450 385,000 Non-Airport Gas Well Fund 955,805 1,958,992 1,805,046 392,900 Parks Gas Well Fund - 1,450,992 1,574,446 365,800 Tree Mitigation Fund 50,879 100,000 50,000 52,500 Public Education Grant Fund 248,813 205,500 202,000 209,722 Miscellaneous Funds 367,677 40,175 177,200 1,141,324 TOTAL OPERATING RESOURCES $ 362,635,823 $ 406,692,945 $ 380,198,780 $ 408,854,601 Grant Program (L) 2,591,030 8,184,594 2,886,989 11,297,317 Capital Improvements Program 71,387,977 162,756,344 67,660,316 178,323,947 TOTAL RESOURCES $ 436,614,830 $ 577,633,883 $ 450,746,085 $ 598,475,865 General Fund $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 General Debt Service Food 18,327,274 17,985,687 17,985,687 31,283,177 Electric Fund 126,572,768 147,128,591 136,386,464 144,397,734 Water Fund 36,365,372 46,096,185 40,893,134 38,952,688 Wastewater Fund 22,335,360 24,553,693 23,270,414 25,071,396 Solid Waste Fund 18,143,540 19,538,374 19,381,728 21,128,866 Airport Fund (1) 1,602,989 2,401,470 2,401,469 3,600,657 Technology Services Fund 7,229,926 7,216,749 7,144,419 6,806,317 Materials Management Fund 8,521,095 6,978,929 6,524,266 7,318,474 Fleet Management Fund 6,965,571 10,478,650 7,692,639 10,039,246 Risk Retention Fund 2,910,959 2,450,692 2,376,346 2,581,617 Health Insurance Fund 15,032,908 16,114,970 16,800,834 17,958,217 Recreation Fund 1,263,663 1,330,157 1,370,909 1,623,499 Tourist & Convention Fund 1,402,388 1,382,665 1,144,908 1,314,246 Police Confiscation Fund 87,550 161,000 161,000 193,000 Traffic Safety Fund 180,271 181,000 167,000 377,640 Non-Airport Gas Wells Fund - 1,958,992 1,805,046 392,900 Parks Gas Well Fund 1,350,000 1,350,000 350,000 Tree Mitigation Fund - 100,000 50,000 50,000 Public Education Grant Fund 209,801 118,222 182,546 209,722 Miscellaneous Funds 243,245 40,175 33,200 1,141,324 TOTAL OPERATING EXPENDITURES $ 353,229,963 $ 398,806,105 $ 375,230,346 $ 404,807,435 Grant Program (L) 2,591,030 8,184,594 2,886,989 11,297,317 Capital Improvements Program 71,387,977 162,756,344 67,660,316 178,323,947 TOTAL EXPENDITURES $ 427,208,970 $ 569,747,043 $ 445,777,651 $ 594,428,699 (1) The Airport Fund, formally known as the Airport Gas Well Fund, includes the budget for operations beginning in FY2010-11. (L) The Grant Program budget was restated in FY 2009-10 for comparability purposes to the FY 2010-11 proposed amount. S:ILegal\Our Documents\Ordinances1101Budget 2010-11 Ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING THE FISCAL YEAR 2010-2011 ANNUAL PROGRAM OF SERVICES (BUDGET) AND THE CAPITAL IMPROVEMENT PROGRAM OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2010, AND ENDING ON SEPTEMBER 30, 2011; AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the Annual Program of Services for the City of Denton, Texas, for the Fiscal Year 2010-2011 (Budget) was heretofore published at least ten days in advance of said public hearing and such other notice was given in accordance with all applicable law; and WHEREAS, the proposed Budget was filed with the City Secretary and posted on the City's Internet website in accordance with all applicable law; and WHEREAS, a public hearing on the said Budget was duly held on September 7, 2010, and all interested persons were given an opportunity to be heard for or against any item thereof; and WHEREAS, on June 28, 2010, the Public Utilities Board recommended the utility operations budgets and capital improvements to be constructed during the coming year; and WHEREAS, the City Manager has furnished a copy of the Planning and Zoning Commission's recommended general obligation bond capital improvements to each member of the City Council prior to the beginning of the Budget year and as provided by Section 10.03(6) of the City Charter; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The Budget for the City of Denton, Texas, for the fiscal year beginning on October 1, 2010, and ending on September 30, 2011 prepared by the City Manager and filed with the City Secretary, as amended by the City Council, is hereby approved and adopted, a copy of which Budget is attached hereto and incorporated by reference herein. SECTION 3. The City Council hereby appropriates from available resources to the following funds: General Fund S 90,016,715 General Debt Service Fund 31,283,177 Electric Fund 144,397,734 Water Fund 38,952,688 Wastewater Fund 25,071,396 Solid Waste Fund 21,128,866 Airport Fund 3,600,657 S:1Lega110ur DocumentslOrdinances1101Budget 2010-11 Ord.doc Technology Services Fund 6,806,317 Materials Management Fund 7,318,474 Fleet Services Fund 10,039,246 Risk Retention Fund 2,581,617 Health Insurance Fund 17,958,217 Recreation Fund 1,623,499 Tourist & Convention Fund 1,314,246 Police Confiscation Fund 193,000 Traffic Safety Fund 377,640 Non-Airport Gas Well Fund 392,900 Parks Gas Well Fund 350,000 Tree Mitigation 50,000 PEG Fund 209,722 McKenna Trust Fund 46,324 Park Land Dedication Trust 325,000 Park Development Trust 740,000 Miscellaneous Special Revenue Fund 30,000 Total Operating Expenditures $404,807,435 Grant Program 11,297,317 Capital Improvements Program 178,323,947 TOTAL EXPENDITURES $594,428.699 SECTION 4. The City Council approves the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2010-2011 Budget. SECTION 5. The Budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2010-2011 Budget as determined by the City Manager or his designee. SECTION 6. The City Council hereby ratifies all prior transfers made udder the direction of the City Manager for the current and prior fiscal years pursuant to Article VIII, Section 8.07 of the City Charter of the City of Denton. At anytime during the fiscal year, the City Manager may transfer any part of the unencumbered appropriation balance or the entire balance thereof between programs or general classifications or expenditures within a fluid that has been appropriated by the City Council. For the purpose of this Ordinance, the City Council defines an organizational unit as set forth in Article VIII, Section 8.07 of the City Charter, to be a fund that has been appropriated by the City Council. SECTION 7. The City Manager, or his designee, shall cause copies of the Budget to be filed with the City Secretary, County Clerk of Denton County, and the State Comptroller of Public Accounts in Austin, Texas, and shall post a copy of the Budget as hereby adopted on the City's Internet website in accordance with applicable law. SECTION 8. This Ordinance shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas, on this the 21St day of September 2010, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code § 551.001, et. seq. The City Secretary is hereby directed to record this Ordinance and the vote to adopt the Budget. PAGE 2 a i i M SALega110ur DocumentslOrdinances1101Budget 2010-11 Ord.doc PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY s BY: 1; L Council Member Mark A. Burroughs, Mayor Charlye Heggins Dalton Gregory Jim Engelbrecht Chris Watts Pete Kamp, Mayor Pro Tem. James King day of 2010. MARK A. BURROUGHS, MAYOR Voted For Voted Azainst PAGE 3 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2010-11 Annual Program of Services (Budget) for the fiscal year beginning October 1, 2010, and ending on September 30, 2011 when the Budget will raise more revenue from property taxes than last year's budget; and providing an effective date. BACKGROUND Chapter 102 of the Local Government Code (LGC) requires certain provisions to be taken when the adoption of a budget will require raising more revenue from property taxes than in the previous year. Specifically, Chapter 102.007 Section C of the LGC states: "Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law." The FY 2010-11 Proposed Budget will require raising more revenue from property taxes than in the previous year. Because of this, the City Council is required to take separate action to vote to ratify the property tax increase in the budget. FISCAL INFORMATION The FY 2010-11 proposed tax rate is $0.68975 per $100 valuation. The FY 2010-11 Proposed Budget will generate approximately $795,459 or 1.89 percent more property tax revenue than FY 2009-10. This property tax revenue increase is primarily related to additional value from new constriction over the past year. Respectfully submitted: Bryan Langley Director of Finance sAlegallour documentslordinances\IOVatify budget.doc ORDINANCE AN ORDINANCE OF THE CITY OF DENTON, TEXAS, RATIFYING THE ADOPTION OF THE FISCAL YEAR 2010 - 2011 ANNUAL PROGRAM OF SERVICES (BUDGET) FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2010, AND ENDING ON SEPTEMBER 30, 2011 WHEN THE BUDGET WILL RAISE MORE REVENUE FROM PROPERTY TAXES THAN LAST YEAR'S BUDGET; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas, has previously on this day of September 21, 2010 adopted the Fiscal Year 2010 - 2011 Annual Program of Services (Budget) for the City of Denton and set a tax rate for 2010 in separate votes and actions; and WHEREAS, this Budget will raise more revenue from property taxes than last year's budget; and WHEREAS, Section 102.007 of the Texas Local Government Code requires the City Council to take a separate vote to ratify.the property tax increase reflected in the Budget when it will raise more total property taxes than last year's budget; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Council hereby ratifies the adoption of the City of Denton Fiscal Year 2010-2011 Annual Program of Services (Budget) that will raise more total property taxes than last year's Budget by $795,459 or 1.89% and of that amount $934,827 is tax revenue to be raised from new property added to the tax roll this year with a total tax rate of $0.68975 per $100 of taxable value. The City Council hereby ratifies the property tax increase reflected in the Budget. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the 21St day September 2010, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code § 551.001, er seq. The City Secretary is hereby directed to record this Ordinance and the vote to ratify approval of the adoption of the Budget that will raise more revenue from property taxes than last year's budget. PASSED AND APPROVED this the day of 2010. MARK A. BURROUGHS, MAYOR s1legallour documentslordinances1101ratify budget.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: L L 1,!~, r, c. f, Council Member Mark A. Burroughs, Mayor Charlye Heggins Dalton Gregory Jim Engelbrecht Chris Watts Pete Kamp, Mayor Pro Tern James King Voted For Voted Against Paget This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Library System ACM: Fred Greene SUBJECT Consider adoption of an ordinance amending Article V, Library, of Chapter 2 of the City Code establishing operating policies and procedures; establishing fees for full access library cards for non-residents; providing a severability clause; providing for a penalty for each violation not to exceed $500; providing for a savings clause; and providing for an effective date. BACKGROUND On October 1, 2005, the Denton Public Library made full service library cards available to nonresidents of the City of Denton for a fee of $50.00 per year per household. This decision was made after the Denton County Commissioners voted to fund library services at only 80 cents per capita from the previous $1.25 per capita allocation, and eliminate their matching grant of $10,000. If the Denton Public Library had accepted this drastic reduction in funding, it would have only been able to purchase 5,913 new items with County funding in FY 2005-06 when in FY 2004-05, nonresidents checked out approximately 181,232 items. The Denton Library Board recommended to the Denton City Council to not accept County funding beginning October 1, 2005. City Council members agreed and approved Ordinance No. 2005-157 on June 7, 2005. Ordinance No. 2005-157 was again amended by the City Council on June 20, 2006 (Ordinance No. 2006-172), that required the payment of discounted annual fees for nonresident students enrolled full time in an independent school district or home schooled and teachers, for a fee of $30.00. Ordinance No. 2006-172 also provided limited access punch cards which allowed nonresidents to borrow up to 15 items for $15.00 and up to 30 items for $20.00. The new amended ordinance would allow an increase to a flat rate of $50.00 from the current tiered stricture. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Denton Library Board voted unanimously to approve the amended Ordinance at their meeting held on September 13, 2010. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION The Denton Public Library has revised its revenue projection for fiscal FY 2010-11 to approximately $33,784 for a total of 676 nonresident fee cards issued in. VV HIRITC ➢ Ordinance Respectfully submitted: Eva Poole Director of Libraries s: legal our documentsordinances10 library fee amendment. doc ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE V, LIBRARY, OF CHAPTER 2 OF THE CITY CODE ESTABLISHING OPERATING POLICIES AND PROCEDURES; ESTABLISHING FEES FOR FULL ACCESS LIBRARY CARDS FOR NON-RESIDENTS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY FOR EACH VIOLATION NOT TO EXCEED $500; PROVIDING FOR A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Manager and the Director of Libraries have recommended certain changes to Article V "Library" of Chapter 2 of the City Code regulating the purchase of full access cards, and making certain other changes regarding charges for library cards for certain non-residents; and WHEREAS, the City Council has determined that these changes to Article V "Library" of the City Code are in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Sections 2-157 of Article V Library, of Chapter 2 of the City Code are hereby amended to read as follows: ARTICLE V. LIBRARY DIVISION 1. GENERALLY Sec. 2-157. Library cards. An adult applicant is eligible for a library card free of charge upon making proper application if they reside within the city limits of the city of Denton, Texas. City employees and non-residents who own real property within the city limits and non-residents who operate a business within the city limits and who render business personal property for ad valorem taxes and who pay those taxes will also be eligible to obtain a library card free of charge. An annual non-resident fee of fifty dollars ($50.00) or a six month non-resident fee of twenty-five dollars ($25.00) shall be charged for those living outside of the city limits of Denton, Texas who wish to purchase full access to library services. The non-resident fee will be charged per household and not per person. The non-resident applicant shall have the burden of proving real property ownership, rendition and payment of personal property taxes for taxation purposes and household membership which will be determined by proof of residency. The fees may be amended and changed by the City Council as is deemed necessary. SECTION 2. A person violating a provision of this Ordinance may be fined up to a maximum fine of five hundred dollars ($500.00). A person is guilty of a separate offense for each day or part of a day during which the violation is committed, continued or permitted. S: Legal Our Documents, Ordinances 10 Library Fee Amendment. doc SECTION 3. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 4. All provisions of the ordinances of the City of Denton in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Denton, not in conflict with the provisions of this ordinance, shall remain in full force and effect. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune YT_ SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of a Component Enterprise Agreement with the Microsoft Corporation to renew licensing for the use of Microsoft Windows Enterprise: Desktop Optimization Package, Remote Desktop Services and Client/Server software licensing as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DM) under 4DM-SDD-1014; providing for the expenditure of funds therefor; and providing an effective date (File 4547- Purchase of Component Enterprise Agreement awarded to Dell-ASAP Software in the amount of $73,47932, the first of three payments, for a total 3-year licensing agreement in the amount of $220,437.96). FILE INFORMATION In 2007, a Component Enterprise Agreement with Microsoft Corporation was approved by City Council. Microsoft software solutions provisioned under this Agreement enables Technology Services to provide increased flexibility in management and delivery of software applications used by all departments. RECOMMENDATION Award to Dell-ASAP Software in the amount of $73,47932 the first of three annual payments of a three-year licensing agreement in the amount of $220,437.96. PRINCIPAL PLACE OF BUSINESS Dell-ASAP Software Buffalo Grove, IL ESTIMATED SCHEDULE OF PROJECT Component Enterprise Agreement is being paid for November 1, 2010 through October 31, 2013. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2010-11 Technology Services operating account number 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Component Enterprise Agreement Exhibit 3: Department of Information Resources Products and Services Agreement Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4547 Exhibit 1 Texas Price DIRSDD-1014 Agency Name: City of Denton Contact john Dun1e11 Einail/ Fax: jolmdimieIlGi:;citvofdeaiton.coin Date: 8-10-2010 Quote Expiies: 30 Daps After Quote Date EA ANNUAL SA RENEWAL Windows OS wi MDOP SA Core CAL User SA Prjct ALNG SA MVL WinRmtDsktpSrvcsCAL ALNG SA MVL DvcCAL Bead Hickey Sc. Accouuit Etec Dell I ASAP Sof vase 850 Asbufy Dcive Buffalo Gcove, IL 60089 Email: bcadlev hicbev((-i,dell.com 66J-04731 1156 $ 44.00 $ 35.09 $ 40,564.04 W06-00446 1156 $ 34.00 $ 27.11 $ 31,339.16 076-01912 1 $ 123.00 $ 98.08 $ 98.08 6VC-01253 109 $ 17.00 $ 13.56 $ 1,478.04 "3,4"9.32 Page 1 of 1 Exhibit 2 Enterprise Enrollment (indirect) Framework ID Microsoft Business Agreement number (if applicable) Reseller or Microsoft affiliate to complete Enterprise Agreement number Reseller or Microsoft affiliate to complete Enrollment number Microsoft affiliate to complete 01 E61233 State and Local N36 7517229 9/30/2010 This Microsoft Enterprise Enrollment is entered into between the following entities signing, as of the effective date identified below. Definitions. When used in this enrollment, "you" refers to the entity that signs this enrollment with us, and "we" or "us" refers to the Microsoft entity that signs this enrollment. "Qualifying Enrollment," means (i) an enterprise enrollment under a separate Microsoft Select Master Agreement or Microsoft Enterprise Agreement; (ii) any enterprise subscription enrollment entered into under a separate Microsoft Enterprise Subscription Agreement; or (iii) any other enrollment submitted under the Microsoft Enterprise Agreement identified on the cover page. All other definitions in the Microsoft Enterprise Agreement identified above apply here Effective date. If you are renewing Software Assurance from one or more previous "Qualifying Enrollments" then the effective date will be the day after the first Enrollment expires. Otherwise the effective date will be the date this enrollment is signed by us. Where a previous Qualifying Enrollment is being used, your reseller will require that enrollment number and end date to complete the applicable boxes above. Term. This enrollment will expire 36 full calendar months from the effective date. It could be terminated earlier or renewed as provided in the Microsoft Enterprise Agreement. We will advise you of your renewal options before it expires. Representations and warranties. By signing this enrollment, the parties agree to be bound by the terms of this enrollment, and you represent and warrant that: (i) you have read and understand the Microsoft Business Agreement identified above (if any) and the Microsoft Enterprise Agreement, including all documents it incorporates by reference and any amendments to those documents, and agree to be bound by those terms; and (ii) you are either the entity that signed the Microsoft Enterprise Agreement or its affiliate. Non-exclusivity. This enrollment is non-exclusive. Nothing contained in it requires you to license, use or promote Microsoft software or services exclusively. You may, if you choose, enter into agreements with other parties to license, use or promote non-Microsoft software or services. Mictost I Volume Licensing Reseller purchase order number Reseller to complete Previous Qualifying Enrollment number Reseller to complete Previous Qualifying Enrollment end date Reseller to complete SLG Microsoft Enterprise 6.4 Enrollment Cover page Page 1 of 12 (Indirect)(North America) May 2007 N36 This enrollment consists of (1) this cover page, (2) the Contact Information Page(s), (3) the Enterprise order information, (4) the Reseller Information Form, (5) the Media Order Form, and (6) the Core User CAL Terms and Conditions (if applicable). Contracting Microsoft Affiflate Name of entity City of Denton Microsoft Licensing, GP Signature * Signature Printed name * Printed name Printed title * Printed title Signature date * Signature date (date Microsoft affiliate countersigns) Effective date * indicates required fields (may be different than our signature date) MSLI, GP 6100 Neil Road, Suite 210 Reno, Nevada USA 89511-1137 Dept. 551, Volume Licensing Microsoft Law and Corporate Affairs One Microsoft Way Redmond, WA 98052 USA Volume Licensing Group (425) 936-7329 fax Attachments: Media Order Form (required) II Core User CAL Terms and Conditions, if applicable II MS Capital Form, if applicable Customer. Please remit to your reseller. Rese/%% Please remit to Microsoft. SLG Microsoft Enterprise 6.4 Enrollment Cover page Page 2 of 12 (Indirect)(North America) May 2007 N36 1, Contact information, Each party will notify the other in writing if any of the information in the following contact information page(s) change. The * indicates required fields. By providing contact information, you consent to its use for purposes of administering this enrollment by us, our affiliates, and other parties that help us administer this enrollment. Primary contact information: The customer signing on the cover page must identify an individual from inside its organization to serve as the primary contact. This contact is the default online administrator for this enrollment and receives all notices unless you provide us written notice of a change. The online administrator may appoint others as administrators and grant others access to online information. 7Name of entity * Contact name y of Denton Last First Street address * Contact email address (required for online access) City * State/Province * Phone Country * Postal code * Fax Notices and online access contact information: Complete this only if you want to designate a notices and online access contact different than the primary contact. This contact will become the default online administrator for this enrollment and receive all notices. This contact may appoint other administrators and grant others access to online information. Notices and online access contact LL\j Same as primary contact Name of entity Contact name Last First Street address Contact email address (required for online access) City State/Province Phone Country Postal code Fax SLG Microsoft Enterprise 6.4 Enrollment Contact information Page 3 of 12 (Indirect)(North America) May 2007 N36 Language preference: This section designates the language in which you prefer to receive notices. English Additional electronic contractual notices contact information: This contact will receive electronic contractual notices in addition to the notices contact. This contact is not required if you do not want an additional set of notices issued. Electronic contractual notices conta ct Name of entity Contact name City of Denton Last Durnell First John Street address Contact email address (required for electronic notices) john.durnell@cityofdenton.com City State/Province Phone 940-349-7763 Country Postal code Fax 940-349-8533 Software Assurance benefits contact: This contact will receive communications concerning Software Assurance benefits, and any additional TechNet subscriptions that have been ordered separately from Software Assurance under this enrollment. This contact is optional. If this contact is not completed, any notices for Software Assurance benefits will default to the notices and online contact. Software Assura nce benefits contac t Name of entity Contact name City of Denton Last Desjardins First Paul Street address Contact email address (required for electronic notices) 601 E Hickory St paul.desjardins@cityofdenton.com Suite A City State/Province Phone Denton TX 940-349-8971 Country Postal code Fax USA 76205 940-349-8533 SLG Microsoft Enterprise 6.4 Enrollment Contact information Page 4 of 12 (Indirect)(North America) May 2007 N36 MSDN contact: This contact will receive communications concerning registration for MSDN products ordered under this enrollment. This contact is optional. If this contact is not completed, any notices for MSDN will default to the notices and online contact. Name of entity Contact name City of Denton Last Desjardins First Paul Street address Contact email address (required for electronic notices) 601 E Hickory St paul.desjardins@cityofdenton.com Suite A City State/Province Phone Denton TX 940-349-8971 Country Postal code Fax USA 76205 940-349-8533 Microsoft account manager: This section designates your Microsoft account manager contact. Microsoft account manager name Microsoft account manager email address Bryan Friedly bfriedly@microsoft.com SLG Microsoft Enterprise 6.4 Enrollment Contact information Page 5 of 12 (Indirect)(North America) May 2007 N36 2, Defining your enterprise. Use this section to identify which affiliates will be included in your enterprise. Your enterprise must consist of entire government agencies, departments or legal jurisdictions, not partial government agencies, departments, or legal jurisdictions. Each affiliate must be entirely "in" or entirely "out." All affiliates acquired after the effective date of this enrollment that are not party to a Qualifying Enrollment of their own will automatically be included unless you fill in part b below. a. U ® se this .part (a) determine which current affiliates will be included in your enterprise. boxes Check only one of the Only you (and no other affiliates) will be participating You and the following affiliates will be participating (attach a list of names on a separate piece of paper if more than 10 affiliates are being included): 1 2 3 4 5 6 7 8 9 10 b. U e c E se this part (b) to indicate whether affiliates with which you consolidate after the enrollment ffective date will be included. Unless you check the box below, all affiliates you onsolidate enrollment effective date that are • party to a Qualifying nrollment of their own will automatically be included. Exclude all affiliates consolidated with after the enrollment effective date that are not party to a Qualifying Enrollment of their own. SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 6 of 12 (Indirect)(North America) May 2007 N36 3, Selecting your language option. Select the option for the languages in which you will run the products licensed under this enrollment. The options and their corresponding languages are identified here. "Listed Languages" "Restricted Languages" "Extended Languages" Arabic Bulgarian Chinese Simplified Chinese Traditional Croatian English'Hebrew Indic Japanese Korean Portuguese (Brazil) Romanian Russian Serbian Spanish2 Thai Turkish Ukrainian Danish Dutch English' Finnish French3 German Greek Italian Norwegian Portuguese (Portugal) Spanish2 Swedish Czech Estonian Hungarian Latvian Lithuanian Polish Slovenian Slovak ' English is a Listed Language if this enrollment is signed outside of the following countries and a Restricted Language if this enrollment is signed inside these countries: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, France, Finland, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, United Kingdom, Switzerland, Sweden, or Spain. English is a "Listed Language", except when restricted as described in the "Restricted Languages" list (see footnote 3) 2 Spanish is a Listed Language only if this enrollment is signed in Latin America and is otherwise Restricted Language. 3 French is a "Listed Language," if signed in Canada • Select All Languages to run your products in any of the Listed, Extended or Restricted Languages. This option also allows you to run Multi-Language packs for your products. • Select Listed Languages to run your products in those languages. • Select Extended Languages to run your products in those languages. • If you select the Listed or Extended Languages option you may run up to 10% of the copies of each of your products in All Languages. ❑ Listed Languages ® All Languages ❑ Extended Languages SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 7 of 12 (Indirect)(North America) May 2007 N36 4, Language allocation, Provide us with your good faith estimate of the specific languages in which you will run all copies of all products and the approximate percentage of those copies you will run in each language. Information that you provide here does not limit your future use of products under this enrollment in any permitted language within the language group you select above. Attach a separate sheet if more space is needed. English 5, Applicable currency, Payments made in connection with this enrollment must be in U.S. Dollars 100%% 6, Establishing your price level. The price level for enterprise products is determined by the terms and conditions of the enterprise agreement. Your price level for additional products will be level "D". Qualified desktops: You represent that the total number of qualified desktops in your enterprise is, or will be increased to, this number during the initial term of 1156 this enrollment (This number must be equal to at least 250 desktops). Qualified users: You represent that the total number of qualified users in your enterprise is, or will be increased to, this number during the initial term of this enrollment (This 1156 number must be equal to at least 250 users). SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 8 of 12 (Indirect)(North America) May 2007 N36 7, Enterprise product orders. Your reseller will provide you with your product pricing and order. Your prices and payment terms for all products ordered will be determined by agreement between you and your reseller. Your reseller will provide us with your order separately from this enrollment. We will invoice your reseller in three equal annual installments for the enterprise products covered by your initial order. The first installment will be invoiced to your reseller upon our acceptance of this enrollment; the remaining installments will be invoiced at the next two anniversaries of the enrollment effective date. We will invoice your reseller for the enterprise products covered by any true up orders in total upon our acceptance of each true up order. Select the enterprise products to be covered by your initial order. If you select the Core CAL, you must select either desktop or user licenses. Products Enterprise Licenses Licenses Windows Desktop Operating System Upgrade Office Professional Plus' ❑ Office Enterprise ❑ Office Standard' ❑ Core Client Access License 1,2 El H Enterprise Client Access 2 ' ❑ ❑ License Suite ' Exchange Server Client Access 2 ❑ ❑ License Standard Exchange Server Client Access 2 ❑ ❑ License Enterprise Office SharePoint Server Client 2 ❑ ❑ Access License Standard OfficeSharePoint Server Client 2 ❑ ❑ Access License Enterprise Windows Server Client Access 2 ❑ ❑ License Systems Management Server Configuration Management ❑ ❑ License Systems Center Operations Manager Client Operations ❑ ❑ Management License SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 9 of 12 (Indirect)(North America) May 2007 N36 Windows Terminal Services 2 ❑ ❑ Client Access License Office Communication Server Client Access License ❑ ❑ Standard 2 Office Communication Server Client Access License ❑ ❑ Enterprise 2 SQL Server Client Access 2 ❑ ❑ License Microsoft Rights Management ❑ ❑ Services Microsoft Forefront Security ❑ ❑ Suite 1 The components of the current versions of Office Professional, Office Standard and the current versions of the components that make up the Core CAL, are identified in the Product List. 2 If you select a User CAL and the agreement identified on the cover page is version 6.1 or earlier, the User CAL Terms and Conditions apply. SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 10 of 12 (Indirect)(North America) May 2007 N36 8, Additional Products We will invoice your reseller for each additional product covered by your initial order in three equal annual installments. The first installment will be invoiced to your reseller upon our acceptance of this enrollment; the remaining installments will be invoiced at the next two anniversaries of the enrollment effective date. We will invoice your reseller for any new additional product not initially included in your enrollment in total upon our acceptance of your order. We will invoice your reseller for additional products initially included in your enrollment and covered by any true up order submitted during the initial term in total upon our acceptance of your true up order. 9. Qualifying systems licenses. All desktop operating system licenses provided under this program are upgrade Licenses. No full operating system licenses are available under this program. Therefore, if you select the Windows Desktop Operating System Upgrade & Software Assurance, all qualified desktops on which you will run the Windows Desktop Operating System Upgrade must be licensed to run one of the qualifying operating systems identified in the Product List at http://www.microsoft.com/licensing. Note that the list of operating systems that qualify for the Windows Desktop Operating System Upgrade varies with the circumstances of your order. That list is more extensive at the time of your initial order than it is for some subsequent true ups and system refreshes during the term of your enrollment. is Renewal orders, For any 36-month renewal, your renewal order will be invoiced to your reseller in three annual installments. The first installment will be invoiced upon our acceptance of the renewal order; the remaining installments will be invoiced at the next two anniversaries of the effective date of that renewal term. For any 12-month renewal and for any true up orders, we will invoice your reseller in total upon our acceptance of your order. SLG Microsoft Enterprise 6.4 Enrollment Enterprise order information Page 11 of 12 (Indirect)(North America) May 2007 N36 Genera/ information Reseller company name: ASAP Software Street address: (PO boxes will not be accepted) 850 Asbury Dr. City and State / Province and postal code: Buffalo Grove, IL Country: us Contact name: Alice Straetz Phone number: 847-465-3700 Fax number: 847-465-3277 Email address: select@asap.com The undersigned confirms that the reseller information is correct. Name of reseller Signature Printed name Printed title Date SLG Microsoft Enterprise 6.4 Enrollment Reseller information form Page 12 of 12 (Indirect)(North America) May 2007 N36 Microsoft, I Volume Licensing Enterprise and Enterprise Subscription Media Election Form Entity name* City of Denton (must be same as Enrollment primary contact) For the purposes of this form, "entity" can mean the signing entity, Customer, Enrolled Affiliate, Integrator, Institution, or other party entering into a volume licensing program agreement. This form identifies entity's software comprehensive and subscription kit preferences. All software for this program is available for download at https://Iicensing.microsoft.com under fulfillment guide. Entity may choose to receive physical media delivery in addition to this download facility, if required. Terms used but not defined in this form have the meanings given to them in entity's Enrollment. The comprehensive kit delivery address information identifies the delivery location. A comprehensive kit is not shipped to renewing entities. Microsoft reserves the right to discontinue media shipments or charge for them in the future. All CD/DVD-ROM subscriptions and licenses that Microsoft provides (if any) under this enrollment are delivered on a DDU (INCOTERMS 2000) port of entry in entity country basis. Entity is solely responsible for compliance with all associated costs and procedures, including customs and import requirements, and for paying all customs duties, import value added taxes, and other governmental fees and taxes, applicable to the importation of all such CD/DVD-ROM subscriptions and licenses and all accompanying documentation into entity's country, as well as any and all loading, downloading, transportation and mobilization costs. Microsoft may, at its sole discretion, act in entity's name and behalf, in any given. shipment, to carry out and bear the costs related to the customs formalities. In any event, after any such CD/DVD-ROM subscriptions and licenses reach the port of entry in entity's country, (1) Microsoft. has completed its delivery obligations with respect to such merchandise, and (2) all risk of delay, loss, apprehension or seizure of or damage to the CD/DVD-ROM subscriptions and licenses, including the carrier medium and related documentation, will be transferred from Microsoft to entity. The charges for Licenses and any purchase of media may be subject to sales taxes based upon where delivery occurs. If entity is exempt from sales taxes in the delivery location, please provide the applicable sales tax exemption documentation with entity's Enrollment. MEDIA DELIVERY ADDRESS ® Same as notices contact in the Enrollment Name of entity* City of Denton Contact name: First* Paul Last* Desjardins Contact email address (required for online access)* paul.desjardins@cityofdenton.com Street address (no PO boxes accepted)* 601 E. Hickory Suite A City* Denton, State / Province* Tx Postal code* 76205 County Country* USA Phone* 940-349-8562 Fax 940-349-8533 In City Limits ® Estimated Tax Rate If entity chooses below to receive media in addition to the software download option available at https://Iicensing.microsoft.com, entity's selected media preference will be noted in Microsoft's systems so entity may automatically receive that media preference. Please note that DVD kits will include DVDs if available. If media is not available on DVDs, then CDs will be provided. Likewise, CD kits will include CDs if available; if CDs are not available, DVDs will be included. What is entity's media preference? Download Only Does entity request a comprehensive kit? (This option does not apply to renewing entities) No Does entity request subscription updates? No EAandEAS2008MediaElectionForm(NA)(ENG)(Oct2008) Page 1 of 2 Media election form (continued) For each language .group entity chooses corresponding box with an X Language Enterprise Kit English English/Multi-Language ❑ Arabic ❑ Brazilian Portuguese Bulgarian ❑ Chinese Simplified ❑ Chinese Traditional ❑ Chinese Traditional Hon Kong/Pan-Chinese ❑ Croatian ❑ Czech ❑ Danish ❑ Dutch ❑ Estonian ❑ Finnish ❑ French ❑ German ❑ Greek ❑ Hebrew ❑ Hungarian D Indic ❑ Italian ❑ Japanese ❑ Korean ❑ Latvian ❑ Lithuanian ❑ Norwegian Polish ❑ Portuguese ❑ Romanian - ❑ Russian ❑ Serbian Latin ❑ Slovak ❑ Slovenian ❑ Spanish ❑ Swedish ❑ Thai ❑ Turkish ❑ Ukrainian ❑ = Not Available EAandEAS2008MediaElectionForm(NA)(ENG)(Oct2008) Page 2 of 2 Exhibit 3 DIR Contract No. DIR-SDD-1014 Vendor Contract No. STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT FOR PRODUCTS AND RELATED SERVICES DELL MARKETING, LP 1. Introduction A. Parties This Contract for products and related services is entered into between the State of Texas, acting by and through the Department of Information Resources (hereinafter "DIR") with its principal place of business at 300 West 15th Street, Suite 1300, Austin, Texas 78701, and Dell Marketing, LP (hereinafter "Vendor"), with its principal place of business at One Dell Way, MS RR8-06, Round Rock, Texas 78682. B. Compliance with Procurement Laws This Contract is the result of compliance with applicable procurement laws of the State of Texas. DIR issued a solicitation on the Comptroller of Public Accounts' Electronic State Business Daily, Request for Offer (RFO) DIR-SDD-TMP-136, on April 8, 2009, for Software Reseller and Related Services. DIR subsequently issued a BAFO opportunity on May 13, 2009. Upon execution of this Contract, a notice of award for RFO DIR- SDD-TMP-136 shall be posted by DIR on the Electronic State Business Daily. C. Order of Precedence This Contract; Appendix A, Standard Terms and Conditions For Products and Related Services Contracts; Appendix B, Vendor's Historically Underutilized Businesses Subcontracting Plan; Exhibit 1, Vendor's Response to BAFO, including all addenda; Exhibit 2, the BAFO, including all addenda; Exhibit 3, Vendor's Response to RFO DIR- SDD-TMP-136, including all addenda; and Exhibit 4, RFO DIR-SDD-TMP-136, including all addenda; are incorporated by reference and constitute the entire agreement between DIR and Vendor. In the event of a conflict between the documents listed in this paragraph, the controlling document shall be this Contract, then Appendix A, then Appendix B, then Exhibit 1, then Exhibit 2, then Exhibit 3, and finally Exhibit 4. In the event and to the extent any provisions contained in multiple documents address the same or substantially the same subject matter but do not actually conflict, the more recent provisions shall be deemed to have superseded earlier provisions. 2. Term of Contract The term of this Contract shall be one (1) year commencing on the last date of approval by DIR and Vendor. Prior to expiration of the original term, DIR and Vendor may extend the Contract, upon mutual agreement, for up to three (3) optional one-year terms. Page I of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 3. Product and Service Offerings A. Products Products available under this Contract are limited to Microsoft Education Select License, Microsoft Government Select License, Microsoft Enterprise Agreement and Microsoft Enterprise Subscription Agreement. Vendor may incorporate changes to their product offering; however, any changes must be within the scope of products awarded based on the posting described in Section 1.B above. Vendor may not add a manufacturer's product line which was not included in the Vendor's response to the solicitation described in Section 1.B above. B. Services Services available under this Contract are limited to maintenance and warranty. Vendor may incorporate changes to their service offering; however, any changes must be within the scope of services awarded based on the posting described in Section 1.B above. Microsoft Technical Services are not part of this contract. 4. Pricing A. Customer Discount and Vendor Margins All discounts to the Customer for products included in Section 3 of this Contract shall be: i) the discount established in the Agreement between DIR and Publishers, or ii) the percentage discount off then-current list prices from the Publishers based on Vendor's corporate volume from distribution sources, whichever is greater. Minimum Discounts offered are as follows: Product Negative Customer Vendor Discount Margin Microsoft Education Select -3.75 20.27% Microsoft Government Select -4.00 20.06% Microsoft Enterprise -4.00 20.26% A reement Microsoft Enterprise -4.00 20.26% Subscription Agreement B. DIR Administrative Fee The administrative fee specified in Section 5 below shall not be broken out as a separate line item when pricing or invoice is provided to Customer. Page 2 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. Product Administrative For example, the administrative fee Fee for sales totaling $100,000 shall be: Microsoft Education 1/2 or.50% $500 Select Software Microsoft 1% $1,000 Government Select Software Microsoft Enterprise .75% $750 Agreement Software Microsoft Enterprise .75% $750 Subscription Agreement Software C. Shipping and Handling Fees The price to the Customer under this Contract shall include all shipping and handling fees. Shipments will be Free On Board Customer's destination. No additional fees shall be charged to the Customer for standard shipping and handling. If the Customer requests expedited delivery, Customer will be responsible for any charges for expedited delivery. Title to all products shall pass upon shipment from Vendor's dock. Risk of loss shall pass to the Customer upon delivery. D. Tax-Exempt As per Section 151.309, Texas Tax Code, Customers under this Contract are exempt from the assessment of State sales, use and excise taxes. Further, Customers under this Contract are exempt from Federal Excise Taxes, 26 United States Code Sections 4253(1) and 0). E. Travel Expense Reimbursement Pricing for services provided under this Contract are exclusive of any travel expenses that may be incurred in the performance of those services. Travel expense reimbursement may include personal vehicle mileage or commercial coach transportation, hotel accommodations, parking and meals; provided, however, the amount of reimbursement by Customers shall not exceed the amounts authorized by the current State Travel Regulations. Travel time may not be included as part of the amounts payable by Customer for any services rendered under this Contract. The DIR administrative fee specified in Section 5 below is not applicable to travel expense reimbursement. Anticipated travel expenses must be pre-approved in writing by Customer. F. Changes to Prices Vendor may change the price of any product or service at any time, based upon changes to the MSRP, but discount levels shall remain consistent with the discount levels specified in this Contract. Price decreases shall take effect automatically during the term of this Contract and shall be passed onto the Customer immediately. Page 3 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 5. DIR Administrative Fee A) The administrative fee to be paid by the Vendor to DIR based on the dollar value of all sales to Customers pursuant to this Contract is in Section 4.C. Payment will be calculated for all sales, net of returns and credits. B) All prices quoted to Customers shall include the administrative fee. DIR reserves the right to change this fee upwards or downwards during the term of this Contract, upon written notice to Vendor. Any change in the administrative fee shall be incorporated in the price to the Customer. 6. Notification All notices under this Contract shall be sent to a party at the respective address indicated below. If sent to the State: Sherri Parks, Director Contracting & Procurement Services Department of Information Resources 300 West 15th Street, Suite 1300 Austin, Texas 78701 Phone: (512) 475-4700 Facsimile: (512) 475-4759 Email: sherri.parks@dir.state.tx.us If sent to the Vendor: Ashleigh Lane Contract Manager Dell Marketing, LP One Dell Way, MS RR8-06 Round Rock, Texas 78682 Phone: (512) 723-1033 Facsimile: (512) 283-9092 Email: Ashleigh lane~,dell.com 7. Software License and Service Agreements A. Software License Agreement 1) Customers acquiring software licenses under the Contract shall hold, use and operate such software subject to compliance with the publishers' software license agreement set forth in Publishers agreement with DIR. 2) Compliance with the applicable software license agreement is the responsibility of the Customer. Neither Vendor, Order Fulfiller nor DIR shall not be responsible for any Customer's compliance with any applicable software license agreement. If DIR purchases software licenses for its own use under this Contract, it shall be responsible for its compliance with any applicable software license agreement terms and Page 4 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. conditions. B. Shrink/Click-wrap License Agreement Vendor may sell third-party shrink/click-wrap software products as awarded under this Contract. All software sold is subject to the license agreement provided with the software by the publisher. Customers are bound by, and will abide by all such software licensing agreements 8. Authorized Exceptions to Appendix A, Standard Terms and Conditions for Product and Related Services Contracts. 1. Appendix A, Section 3. Definitions, A. Customer is hereby restated in its entirety as follows: A. Customer: Subject to the terms and conditions of the following sentence, any eligible customer that is a Texas state agency (excluding institutions of higher education as defined in Texas Education Code 61.003, and public schools, which institutions may purchase products pursuant to separate academic agreements), unit of local government, as defined in Section 2054.003, Texas Government Code, and those state agencies purchasing from a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code, and any local government as authorized through the Interlocal Cooperation Act, Chapter 791, Texas Government Code, provided that a state and its affiliates shall not, for purposes of this definition, be considered to be affiliates of the federal government and its affiliates; and except for telecommunications services under Chapter 2170, Texas Government Code, assistance organizations as defined in Section 2175.001, Texas Government Code to mean: a. A non-profit organization that provides educational, health or human services or assistance to homeless individuals; b. A nonprofit food bank that solicits, warehouses, and redistributes edible but unmarketable food to an agency that feeds needy families and individuals; c. Texas Partners of the Americas, a registered agency with the Advisory Committee on Voluntary Foreign Aid, with the approval of the Partners of the Alliance Office of the Agency for International Development; d. A group, including a faith-based group, that enters into a financial or non- financial agreement with a health or human services agency to provide services to that agency's clients; e. A local workforce development board created under Section 2308.253; Page 5 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. f. A nonprofit organization approved by the Supreme Court of Texas that provides free legal services for low-income households in civil matters; g. The Texas Boll Weevil Eradication Foundation, Inc., or an entity designated by the commissioner of agriculture as the foundation's successor entity under Section 74. 1011, Texas Agriculture Code; h. A nonprofit computer bank that solicits, stores, refurbishes and redistributes used computer equipment to public school students and their families; and i. A nonprofit organization that provides affordable housing. Notwithstanding anything to the contrary in the Interlocal Cooperation Act, or Section 2054.0565, Texas Government Code, your affiliates shall only include entities located in the State of Texas. 2. Appendix A, Section 5.A.2., Electronic and Information Resources Accessibility Standards, As Required by I TAC Chapter 213 (Applicable to State Agency and Institution of Higher Education Purchases Only), is hereby restated in its entirety as follows: 2) Upon request by DIR, Vendor shall provide DIR with the URL to its Voluntary Product Accessibility Template (VPAT) or a copy of the applicable VPAT for reviewing compliance with the State of Texas Accessibility requirements (based on the federal standards established under Section 508 of the Rehabilitation Act), or indicate that the product/service accessibility information is available from the General Services Administration "Buy Accessible Wizard" (http://www.buyaccessible.~4ov). Vendors not listed with the "Buy Accessible Wizard" or supplying a URL to their VPAT must provide DIR with a report that addresses the same accessibility criteria in substantively the same format. Additional information regarding the "Buy Accessible Wizard" or obtaining a copy of the VPAT is located at http://www.section508.~4ov/. 3. Appendix A, Section 5.B.3., Purchase of Commodity Items (Applicable to State Agency Purchases Only) is hereby restated in its entirety as follows: 3) Vendor agrees to coordinate all State agency commodity item sales by Vendor are through existing DIR contracts. Vendor shall use commercially reasonable efforts so that Order Fulfillers shall sell or license commodity items under this Contract. Vendor will include this term as a standard term in its Order Fulfiller contracts. Institutions of higher education are exempt from this Subsection 5.13. 4. Appendix A, Section 6.A., Service, Sales and Support of the Contract is hereby restated in its entirety as follows: Page 6 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. A. Service, Sales and Support of the Contract Vendor shall provide service, sales and support resources to serve all Customers throughout the State. It is the responsibility of the Vendor to sell, market, and promote products and services available under the Contract. Vendor shall use its best efforts to ensure that potential Texas Customers are made aware of the existence of the Contract. All sales to Customers for products and services available under the Contract shall be processed through the Contract when Customer specifies this Contract number on the Purchase Order. 5. Appendix A, Section 6.D., Customer Site Preparation is hereby restated in its entirety as follows: D. Customer Site Preparation Customers shall prepare and maintain its site in accordance with written instructions furnished by Vendor or Order Fulfiller prior to the scheduled delivery date of any product or service and shall bear the costs associated with the site preparation. 6. Appendix A, Section 6.E.1., Vendor Website is hereby restated in its entirety as follows: 1) Vendor Website Vendor will maintain a website specific to the products and services being offered under the Contract which is clearly distinguishable from other, non-DIR contract offerings at the Vendor's website. The website must include at a minimum: A. The Contract number and a statement that the customer must reference the Contract Number on their purchase order B. A statement designating who can procure through the Contract C. All products and services offered under the contract D. All product and services specifications for products offered under the contract E. Current Contract pricing F. Contact information for Vendor business segments (i.e. State and Local, Higher Education, K-12, Health, etc.) G. Named Order Fulfillers and contact information for each designated Order Fulfiller H. Instructions for obtaining quotes and placing Purchase Orders through Dell direct or through a designated Order Fulfiller L Warranty policy terms and conditions J. Return policy terms and conditions. The Vendor's website shall list the DIR Contract number, reference the DIR Go DIRect program, display the DIR logo in accordance with the requirements in paragraph F of this Section, and contain a link to the DIR website for the Contract. Page 7 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 7. Appendix A, Section 6.E.3., Website Compliance Checks is hereby restated in its entirety as follows: 3) Website Compliance Checks Periodic compliance checks of the information posted for the Contract on Vendor's website will be conducted by DIR. Upon request by DIR, Vendor shall use commercially reasonable efforts to provide verifiable documentation that pricing listed upon this website is uniform with the pricing as stated in Section 4 of the Contract within thirty (30) days of the request. 8. Appendix A, Section 6.E.5., Use of Access Data Prohibited is hereby restated in its entirety as follows: 5) Use of Access Data Prohibited If Vendor stores, collects or maintains data electronically as a condition of accessing Contract information, such data shall only be used internally by Vendor for the purpose of implementing or marketing the Contract, and shall not be disseminated to third parties, other than Order Fulfillers or Subcontractors, as necessary, or used for other marketing purposes. The Contract constitutes a public document under the laws of the State and Vendor shall not restrict access to Contract terms and conditions including pricing, so long as DIR publically posts the document. However, Vendor may agree with an individual Customer to implement security measures such as password protected online ordering. Upon request, Vendor shall provide DIR with a list of any Premier Pages existing under this Contract. By purchasing under this Contract, a Customer acknowledges that DIR may request from Customer "read only access" to Customer's online ordering page with Vendor that is under this Contract (also known as a Dell Premier Page). 9. Appendix A, Section 6.H., Trade Show Participation is hereby restated in its entirety as follows: H. Trade Show Participation At DIR's discretion, Vendor may be required to participate in no more than two (2) DIR sponsored trade shows each calendar year. Vendor understands and agrees that participation, at the Vendor's expense, includes providing a manned booth display or similar presence. DIR will provide four months advance notice of any required participation. Vendor must display the DIR logo at all trade shows in the State of Texas that potential Customers will attend. DIR reserves the right to approve or disapprove of the location or the use of the DIR logo in or on the Vendor's or Order Fulfiller's booth. 10. Appendix A, Section 6.K., DIR Cost Avoidance is hereby restated in its entirety as follows: Page 8 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. K. DIR Cost Avoidance As part of the performance measures reported to state leadership, DM must provide the cost avoidance the State has achieved through the Contract. Vendor shall make available to DIR a detailed report of the following information regarding a representative sample of products sold under the Contract: product part number and price to Customer under the Contract. Such information may be made available through Vendor's website. 11. Appendix A, Section 7.A., Purchase Orders is hereby restated in its entirety as follows: A. Purchases Orders All Customer Purchase Orders will be placed directly with the Vendor and/or the Order Fulfiller. Accurate Purchase Orders shall be effective and binding upon Vendor when accepted by Vendor. Customer shall have the ability to order products through electronic or paper submissions of purchase orders. 12. Appendix A, Section 7.B., Invoices is hereby restated in its entirety as follows: B. Invoices 1) Invoices shall be submitted by Vendor or the Order Fulfiller directly to the Customer and shall be issued in compliance with Chapter 2251, Texas Government Code. All payments for products and/or services purchased under the Contract and any provision of acceptance of such products and/or services shall be made by the Customer to Vendor or the Order Fulfiller. 2) Invoices must be timely and accurate. Each invoice must match Customer's Purchase Order and include any written changes that may apply, as it relates to products, prices and quantities. Invoices must include the Customer's Purchase Order number or other pertinent information for verification of receipt of the product or services by the Customer. 13. Appendix A, Section 7.D., Acceptance is hereby added in its entirety as follows: D. Acceptance A Customer shall determine whether all Products and Services delivered meet the Vendor's published specifications. No payment shall be made for any Products or Services until the Customer has accepted the Products or Services. Unless otherwise agreed upon between the Customer and the Vendor, the Customer shall within fifteen (15) calendar days from the date of the receipt of the Vendor's invoice, issue a written notice of partial acceptance or rejection of the Products or Services; otherwise, the Product or Services shall be deemed accepted. 14. Appendix A, Section 8.A.2., Vendor Contract Administrator is hereby restated in its entirety as follows: Page 9 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 2) Vendor Contract Administrator Vendor shall provide a dedicated Contract Administrator whose duties shall include but not be limited to: i) supporting the marketing and management of the Contract, ii) facilitating dispute resolution between Vendor or a Order Fulfiller and a Customer, and iii) advising DIR of Vendor's or Order Fulfiller's performance under the terms and conditions of the Contract. DIR reserves the right to require a change in Vendor's then-current Contract Administrator if the assigned Contract Administrator is not, in the opinion of DM, adequately serving the needs of the State. In such instance, Vendor requests twenty (20) calendar days notice. 15. Appendix A, Section 8.B.1., Reporting Responsibility is hereby restated in its entirety as follows: 1) Reporting Responsibility a) Vendor shall be responsible for reporting all products and services purchased from Vendor or through Order Fulfillers under the Contract. Vendor shall file the monthly reports which contain sales by Order Fulfillers, and pay the administrative fees in accordance with the due dates specified in this section. b) DIR shall have the right to verify required reports and to take any actions necessary to enforce its rights under this section, including but not limited to, compliance checks of Vendor's purchase orders and invoices at DIR's expense. Upon receipt of ten (10) days notice, Vendor shall grant DIR, during normal business hours, necessary access to Customer purchase orders and invoices generated under and pertaining to this Contract. 16. Appendix A, Section 8.B.2., Detailed Monthly Report is hereby restated in its entirety as follows: 2) Detailed Monthly Report Vendor shall electronically provide DIR with a detailed monthly report in the format required by DIR showing the dollar volume of any and all sales under the Contract for the previous month period. Reports shall be submitted to the DIR Go DIRect Coordinator. Reports are due on the fifteenth (15th) calendar day after the close of the previous month period, unless such day falls on a weekend or holiday, and then the report shall be sent to DIR on the first business day thereafter. It is the responsibility of the Vendor to collect and compile all sales under the Contract from participating Order Fulfillers and submit one (1) monthly report. The monthly report shall include, per transaction: the detailed sales for the period, the Order Fulfiller's company name, Customer name, invoice date, invoice number, description, part number, manufacturer, quantity, unit price, extended price, Customer Purchase Order number, contact name, Customer's complete billing address, and other information as required by DIR. Each report must contain all information listed above per transaction or the report will be rejected and returned to the Vendor for correction in accordance with this section. Page 10 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 17. Appendix A, Section 8.B.3.a., Historically Underutilized Businesses Subcontract Report is hereby restated in its entirety as follows: a) Vendor shall electronically provide DIR with a listing of their relevant purchases from Vendor or through Order Fulfillers under this Contract, so DIR and Customer can compile the appropriate Historically Underutilized Business Subcontracting Report, pursuant to the Contract, as required by Chapter 2161, Texas Government Code. Such listing of purchases shall be on the monthly report. 18. Appendix A, Section 8.B.4.a., DIR Administrative Fee is hereby restated in its entirety as follows: a) An administrative fee shall be paid by Vendor to DIR to defray the DIR costs of negotiating, executing, and administering the Contract. The administrative fee is specified in Section 5 of the Contract. Payment of the administrative fee shall be due thirty (30) calendar days after the close of the previous month period. 19. Appendix A, Section 8.C.2., Records and Audit is hereby restated in its entirety as follows: 2) Vendor shall maintain adequate records to establish compliance with the Contract until the later of a period of four (4) years after termination of the Contract or until full, final and unappealable resolution of all Compliance Check or litigation issues that arise under the Contract. Such records shall include the monthly DIR reports that contain: Customer name, invoice date, invoice number, description, quantity, unit price, extended price, Customer Purchase Order number, contact name, Customer's complete billing address, the calculations supporting each administrative fee owed DIR under the Contract, Historically Underutilized Businesses Subcontracting reports, and such other reasonable documentation as DIR may request. 20. Appendix A, Section 8.C.3., Records and Audit is hereby restated in its entirety as follows: 3) Vendor shall grant access to items retained by Vendor in accordance with generally accepted accounting principles relating to the requirements of this Contract and relevant to the performance of the Contract to DIR, including the compliance checks designated by DIR, the State Auditor's Office and of the United States, and such other persons or entities designated by DIR for the purposes of inspecting, Compliance Checking and/or copying such books and records. Vendor shall provide electronic copies requested by DIR without charge. DIR shall provide Vendor ten (10) business days' notice prior to inspecting, Compliance Checking, and/or electronic records, shall be made available during regular office hours. Vendor personnel familiar with the Vendor's books and records shall be available to DIR staff and designees as needed. Page 11 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 21. Appendix A, Section 9.A., Indemnification is hereby restated in its entirety as follows: A. Indemnification 1) Acts or Omissions Vendor shall indemnify and hold harmless the State of Texas and Customers, AND/OR THEIR OFFICERS, AGENTS, EMPLOYEES, REPRESENTATIVES, FROM AND AGAINST ANY AND ALL ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES arising out of, and that result in, personal injury or damage to physical property resulting from any acts or omissions of the Vendor or its agents, employees, subcontractors, Order Fulfillers, in the execution or performance of the Contract and any Purchase Orders issued under the Contract. THE DEFENSE SHALL BE COORDINATED BY THE OFFICE OF THE ATTORNEY GENERAL FOR TEXAS STATE AGENCIES AND BY CUSTOMER'S LEGAL COUNSEL FOR NON-STATE AGENCY CUSTOMERS. 2) Infringements a) Vendor shall indemnify and hold harmless the State of Texas and Customers, AND/OR THEIR EMPLOYEES, AGENTS, REPRESENTATIVES, from any and all third-party claims involving infringement of United States patents, copyrights, trade and service marks, and any other intellectual or intangible property rights for Vendor branded products or Vendor provided services in connection with the PERFORMANCES OR ACTIONS OF VENDOR PURSUANT TO THIS CONTRACT. VENDOR and the CUSTOMER agree to furnish timely written notice to each other of any such claim. VENDOR AGREES TO DEFEND AGAINST ANY AND ALL THIRD PARTY CLAIMS WITH REGARDS TO VENDOR-BRANDED PRODUCT OR SERVICES, AT VENDOR'S EXPENSE, WHETHER OR NOT SUCH CLAIMS BECOME THE SUBJECT OF LITIGATION SHALL BE LIABLE TO PAY ALL COSTS OF DEFENSE INCLUDING REASONABLE ATTORNEYS' FEES PROVIDED THAT CUSTOMER (i) NOTIFIES VENDOR PROMPTLY OF SUCH CLAIM (ii) GRANTS VENDOR CONTROL OVER THE DEFENSE AND SETTLEMENT THEREOF AND (iii) REASONABLY COOPERATES IN RESPONSE TO VENDOR'S REQUEST FOR ASSISTANCE. The defense shall be coordinated by the Office of the Attorney General FOR TEXAS STATE AGENCY CUSTOMERS AND BY CUSTOMER'S LEGAL COUNSEL FOR NON-STATE AGENCY CUSTOMERS. b) If Vendor becomes aware of an actual or potential claim, or Customer provides Vendor with timely notice of an actual or potential claim, Vendor may (or in the case of an injunction against Customer, shall), at Vendor's sole option and expense: (i) procure for the Customer the right to continue to use the affected portion of the product or service, or (ii) modify or replace the affected portion of the product or service with functionally equivalent or superior product or service Page 12 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. so that Customer's use is non-infringing or (iii) accept return of the Product freight collect and provide a reasonably depreciated refund for the Product. 3) Independent Contractor VENDOR AGREES AND ACKNOWLEDGES THAT DURING THE EXISTENCE OF THIS CONTRACT, IT IS FURNISHING SERVICES IN THE CAPACITY OF AN INDEPENDENT CONTRACTOR AND THAT VENDOR IS NOT AN EMPLOYEE OF THE CUSTOMER, DIR OR THE STATE OF TEXAS. 22. Appendix A, Section 9.B., Taxes/Worker's Compensation/UNEMPLOYMENT INSURANCE is hereby restated in its entirety as follows: B. Taxes/Worker's Compensation/UNEMPLOYMENT INSURANCE 1) VENDOR AGREES AND ACKNOWLEDGES THAT DURING THE EXISTENCE OF THIS CONTRACT, VENDOR SHALL BE ENTIRELY RESPONSIBLE FOR THE LIABILITY AND PAYMENT OF VENDOR'S AND VENDOR'S EMPLOYEES' TAXES OF WHATEVER KIND, ARISING OUT OF THE PERFORMANCES IN THIS CONTRACT. VENDOR AGREES TO COMPLY WITH ALL APPLICABLE STATE AND FEDERAL LAWS APPLICABLE TO ANY SUCH PERSONS, INCLUDING LAWS REGARDING WAGES, TAXES, INSURANCE, AND WORKERS' COMPENSATION. VENDOR AGREES AND ACKNOWLEDGES THAT VENDOR ITS EMPLOYEES, REPRESENTATIVES, AGENTS OR SUBCONTRACOTRS SHALL NOT BE ENTITLED TO ANY STATE BENEFIT OR BENEFIT OF ANOTHER GOVERNMENTAL ENTITY CUSTOMER AS A RESULT OF THIS CONTRACT 'AND/OR THE STATE SHALL NOT BE LIABLE TO THE VENDOR ITS EMPLOYEES, AGENTS, OR OTHERS FOR THE PAYMENT OF TAXES OR THE PROVISION OF UNEMPLOYMENT INSURANCE AND/OR WORKERS' COMPENSATION OR ANY BENEFIT AVAILABLE TO A STATE EMPLOYEE OR EMPLOYEE OF ANOTHER GOVERNMENTAL ENTITY CUSTOMER. 2) VENDOR AGREES TO INDEMNIFY AND HOLD HARMLESS CUSTOMERS, THE STATE OF TEXAS AND/OR THEIR EMPLOYEES, AGENTS AND/OR REPRESENTATIVES FROM ANY AND ALL ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES, RELATING TO VENDOR'S TAX LIABILITY, VENDOR'S UNEMPLOYMENT INSURANCE AND/OR WORKERS' COMPENSATION OR EXPECTATIONS OF BENEFITS BY VENDOR, ITS EMPLOYEES, VENDOR'S AGENTS OR VENDOR'S SUBCONTRACTORS IN ITS PERFORMANCE UNDER THIS CONTRACT. VENDOR SHALL BE LIABLE TO PAY ALL COSTS OF DEFENSE FOR CLAIMS RELATED TO THIS CLAUSE INCLUDING ATTORNEYS' FEES. THE DEFENSE SHALL BE COORDINATED BY THE OFFICE OF THE ATTORNEY GENERAL FOR TEXAS STATE AGENCY CUSTOMERS AND BY CUSTOMER'S LEGAL COUNSEL FOR NON-STATE AGENCY CUSTOMERS, Page 13 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. IF REQUESTED BY THE STATE OF TEXAS OR CUSTOMER THAT IS A NON- STATE AGENCY. 23. Appendix A, Section 9.C., Vendor Certifications is hereby restated in its entirety as follows: C. Vendor Certifications Vendor certifies that it: (i) has not given, offered to give, and do not intend to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the Contract, (ii) is not currently delinquent in the payment of any franchise tax owed the State of Texas and is not ineligible to receive payment under §231.006 of the Texas Family Code and acknowledge the Contract may be terminated and payment withheld if this certification is inaccurate, (iii) neither they, nor to the best of Vendor's knowledge, anyone acting for them, has violated the antitrust laws of the United States or the State of Texas, nor communicated directly or indirectly to any competitor or any other person engaged in such line of business for the purpose of obtaining an unfair price advantage, (iv) has not received payment from DIR or any of its employees for participating in the preparation of the Contract, (v) under Section 2155.004, Texas Government Code, the vendor certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate, (vi) to the best of its knowledge and belief, there are no suits or proceedings pending or threatened against or affecting it, which if determined adversely to it will have a material adverse effect on the ability to fulfill its obligations under the Contract, (vii) is not suspended or debarred from doing business with the federal government as listed in the Excluded Parties List System (EPLS) maintained by the General Services Administration, and (viii) as of the effective date of the Contract, is not listed in the prohibited vendors list authorized by Executive Order 413224, "Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism", published by the United States Department of the Treasury, Office of Foreign Assets Control. In addition, Vendor acknowledges the applicability of §2155.444 and §2155.4441, Texas Government Code, in fulfilling the terms of the Contract. (ix) to the extent applicable to this scope of this Contract, Vendor hereby certifies that it is in compliance with Subchapter Y, Chapter 361, Health and Safety Code related to the Computer Equipment Recycling Program and its riles, 30 TAC Chapter 328; (x) Vendor agrees that any payments due under this contract will be applied towards any debt, including but not limited to delinquent taxes and child support that is owed to the State of Texas; (xi) Vendor certifies that they are in compliance Section 669.003, Texas Government Code, relating to contracting with executive head of a state agency; (xii) Vendor represents and warrants that the Customer's payment to Vendor and Vendor's receipt of appropriated or other funds under this Agreement are not prohibited by Sections 556.005 or Section 556.008, Texas Government Code; and (xiii) under Section 2155.006, Government Code, Vendor certifies that the individual or business entity in this contract is not ineligible to receive the specified contract and Page 14 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate. In addition, Vendor acknowledges the applicability of §2155.444 and §2155.4441, Texas Government Code, in fulfilling the terms of the Contract. 24. Appendix A, Section 9.1, Security of Premises, Equipment, Data and Personnel is hereby restated in its entirety as follows: L Security of Premises, Equipment, Data and Personnel Vendor may, from time to time during the performance of the Contract, have access to the personnel, premises, equipment, and other property, including data, files and /or materials (collectively referred to as "Data") belonging to the Customer. Vendor shall use their best efforts to preserve the safety, security, and the integrity of the personnel, premises, equipment, Data and other property of the Customer, in accordance with the instruction of the Customer. Vendor shall be responsible for damage to Customer's equipment, workplace, and its contents when such damage is caused by its employees or subcontractors. Customer shall be solely responsible for backing up data on a routine basis as mutually agreed to by Vendor and Customer. 25. Appendix A, Section 9.K, Limitation of Liability is hereby restated in its entirety as follows: K. Limitation of Liability EXCEPT AS SPECIFICALLY SET FORTH IN SECTIONS 9.A.1 AND 9.A.2, AND FOR PAYMENT OBLIGATIONS UNDER THIS CONTRACT, VENDOR AND DIR EACH EXPRESSLY AGREE AND UNDERSTAND THAT THE OTHER PARTY WILL NOT HAVE ANY LIABILITY FOR PRODUCTS NOT BEING AVAILABLE FOR USE, OR FOR LOST OR CORRUPTED DATA OR SOFTWARE. NEITHER PARTY SHALL BE LIABLE FOR ANY CLAIM OR CAUSE OF ACTION ARISING UNDER OR RELATED TO THE CONTRACT: I) NONE OF THE PARTIES SHALL BE LIABLE TO THE OTHER FOR INCIDENTAL, INDIRECT, PUNITIVE, SPECIAL, OR CONSEQUENTIAL DAMAGES, EVEN IF IT IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AND 11) VENDOR'S LIABILITY FOR DAMAGES OF ANY KIND TO THE CUSTOMER SHALL BE LIMITED TO THE LESSER OF ONE MILLION DOLLARS ($1,000,000) OR THE U.S. DOLLAR EQUIVALENT OF THE TOTAL DOLLAR VALUE OF PRODUCTS AND SERVICES PURCHASED FROM VENDOR BY SUCH CUSTOMER UNDER THE CONTRACT DURING THE TWELVE MONTHS IMMEDIATELY PRECEDING THE ACCRUAL OF THE CLAIM OR CAUSE OF ACTION. IN THE EVENT THE LAW OF ANY JURISDICTION WHICH APPLIES TO THIS CONTRACT PROHIBITS IN ANY PART ANY LIMITATION IN THIS PARAGRAPH, THE PARTIES AGREE THAT SUCH LIMITATION SHALL BE MODIFIED, WITHOUT FURTHER ACTION OF EITHER PARTY, SO AS TO BROADLY APPLY TO THE MAXIMUM EFFECT ALLOWED BY GOVERNING LAWS. Page 15 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. 26. Appendix A, Section 9.L, Overcharges is hereby restated in its entirety as follows: L. Overcharges Vendor hereby assigns to DIR any and all of its claims for overcharges associated with this contract which arise under the antitrust laws of the United States, 15 U.S.C.A. Section 1, et seq., and which arise under the antitrust laws of the State of Texas, Tex. Bus. and Comm. Code Section 15.01, et seq. to the extent that the overcharge suffered by the Vendor was, in fact, passed on the DIR or its Customers in the products or other goods and/or services purchased by DM or is Customers under this Contract during the time period referenced in the litigation. 27. Appendix A, Section 10. Contract Enforcement, B. Termination, 7) Transitional Support Upon Termination or Expiration is hereby added in its entirety as follows: Transitional Support Upon Termination or Expiration Upon the date of contract termination or expiration, Vendor will provide transitional use of Vendor's Software Tracking Database to all DIR Customers that have purchased software under this Contract. To assure continuity of records, DIR Customers (upon request) that have purchased under this Contract will be provided access to Vendor's website to receive from Vendor a transferable, electronic record of its software license tracking information for a period not less than the prior twelve months, in a commercially available format. If the file download is available on Vendor's website, clear instructions should be posted for DIR Customers along with a contact name, telephone number and email address for questions. Vendor shall also provide DIR a complete copy of the entire DIR Customer database at the end of the 90-day transition period, in a commercially available format. (This page is intentionally left blank) Page 16 of 17 DIR Contract No. DIR-SDD-1014 Vendor Contract No. This Contract is executed to be effective as of the date of last signature. Dell Marketing, LP Authorized By: -signature on file Name: Kelly L. O'Shieles Title: Senior Contracts Consultant Date: 06-01-2009 The State of Texas, acting by and through the Department of Information Resources Authorized By: -signature on file Name: Cindy Reed Title: Deputy Executive Director Operations & Statewide Technology Sourcing Date: 06-01-2009 Legal: ck 06-01-2009 Page 17 of 17 ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF A COMPONENT ENTERPRISE AGREEMENT WITH THE MICROSOFT CORPORATION TO RENEW LICENSING FOR THE USE OF MICROSOFT WINDOWS ENTERPRISE: DESKTOP OPTIMIZATION PACKAGE, REMOTE DESKTOP SERVICES AND CLIENT/SERVER SOFTWARE LICENSING AS APPROVED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION DEPARTMENT OF INFORMATION RESOURCES (DIR) UNDER 4DIR-SDD- 10 14; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4547-PURCHASE OF COMPONENT ENTERPRISE AGREEMENT AWARDED TO DELL-ASAP SOFTWARE IN THE AMOUNT OF $73,479.32, THE FIRST OF THREE PAYMENTS, FOR A TOTAL 3-YEAR LICENSING AGREEMENT IN THE AMOUNT OF $220,437.96). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 4547 Dell-ASAP Software $220,437.96 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: -ORD-File 447 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions regarding this report may be directed to DEPARTMENT: Finance/Risk Management Scott Payne at 349-7836 All YT_ ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of Long Term and Voluntary Short Term Disability Benefits for the City of Denton employee benefits program; providing for the expenditure of funds therefor; and providing an effective date (RFP 4482-Long Term Disability and Voluntary Short Term Disability Benefits awarded to The Hartford with a cost of $0.20 per $100 of payroll per month, for an estimated annual cost of $111,584 and Voluntary Short Term Disability Benefits awarded to The Hartford (with the cost per month to be determined by actual voluntary employee participation rate) in the estimated amount of $97,289). BACKGROUND The City purchases Long-Term Disability (LTD) Insurance for all regular, full-time employees. The purpose of this insurance is to provide employees with temporary income replacement in the event that the employee has a non-work related illness or injury that disables the employee for longer than 90 days. In addition, the City provides all regular, full-time employees the option of purchasing voluntary Short-Term Disability (STD) Insurance, paid for 100% by the employee. This allows employees, especially new hires, without sufficient sick or vacation time to bridge the gap to the LTD coverage in the event of a personal illness or injury. The City has been insured with UNUM Provident for LTD Insurance since 1999, and added the benefit option of STD Insurance in 2000. The current contract with UNUM expires on December 31, 2010. Through Request for Proposal (RFP) 44482, the City of Denton received eleven (11) proposals for LTD and STD coverage. Working with the City's consultant (McGriff, Seibels and Williams), the list was pared down to the below five (5) proposals that staff evaluated and analyzed in greater detail: The Hartford quoted $0.20 per $100 of payroll for LTD with an estimated total annual cost of $111,584. The proposed rate schedule for the STD coverage also represents a savings for our employees. The Hartford is the City's current provider for basic and supplemental life. Lincoln Financial Group quoted $0.22 per $100 of payroll for LTD with an estimated total annual cost of $122,740. Lincoln's proposed STD rate schedule was the lowest of the five proposals that were evaluated. Agenda Information Sheet September 21, 2010 Page 2 UNUM (incumbent) quoted $0.25 per $100 of payroll for LTD with an estimated total annual cost of $139,480. UNUM proposed a renewal STD rate schedule that is less than our current STD rates but higher than those rates quoted by The Hartford. MetLife quoted $0.25 per $100 of payroll for LTD with an estimated total annual cost of $139,480. MetLife's proposed STD rate schedule that is less than our current STD rates but higher than those rates quoted by The Hartford. Prudential quoted $0.24 per $100 of payroll for LTD with an estimated total annual cost of $133,900. Prudential's proposed STD rate schedule that is less than our current STD rates but higher than those rates quoted by The Hartford. Our current contract with UNUM provides for a rate of $0.31 per $100 of payroll for the LTD benefits. All the LTD responses quoted a rate that was lower than the current rate. The rates quoted by the bidders for the STD vary based on the age band of the employee. However, the rates quoted by all of the bidders are less than the rates currently being paid by our employees for STD coverage through UNUM. RECOMMENDATION Award a contract to The Hartford for both LTD and STD. The LTD rate proposed by The Hartford is 35.48% lower than our current rate and will save the City approximately $61,370 when compared with the 2010 estimated premium cost. Additionally, the STD rates quoted by The Hartford are on average approximately 13.4% (per age group) less than the rates currently being paid by our employees. While Lincoln Financial Group proposed the lowest STD rate, they only provided a two year rate guarantee while The Hartford guaranteed both their LTD and STD rates for three years. Having one carrier for both the LTD and STD coverages allows for better coordination of benefits for those employees that transition from STD into LTD. The Hartford is one of the largest providers of disability coverage nationwide and has an A.M. Best financial rating of A (Excellent). The City's history with The Hartford as our Basic and Supplemental Life Insurance Company has been very positive in the areas of claims management, benefit design, benefit administration, customer service and other "value added" benefits. It is staff s opinion that awarding this contract to The Hartford is the most advantageous to both the City and its employees. ESTIMATED SCHEDULE OF PROJECT The contract begins January 1, 2011, with a guaranteed LTD and STD rate until January 2014. The City has the option for up to two additional one-year renewals, based on the City's loss history, employee demographics and enrollment. Agenda Information Sheet September 21, 2010 Page 3 PRIOR ACTION/REVIEW On December 11, 2007, the City Council awarded a contract for Long and Short Term Disability Benefits to UNUM Life Insurance Company of America effective February 1, 2008. FISCAL INFORMATION Funds for LTD Insurance for FY 2010-11 have been budgeted in account 850500.6163. Funds for STD Insurance for FY 2010-11 have been budgeted in account 850500.6167. BID INFORMATION The RFP and Vendor List is available should Council wish to review them. EXHIBITS Exhibit 1 - RFP 44482 LTD Summary Analysis Exhibit 2 - RFP 44482 STD Summary Analysis Exhibit 3 - Ordinance Respectfully submitted: Scott Payne Risk Manager Respectfully submitted: Bryan Langley, 349-7100 Director of Finance 1-AIS-RFP 4482 Q E to L ❑ w H y n o ° ~ C) o y 0 0 ~ (00 (00 U~ a~ U _ N N O w O N m w o N U) N p N l0 ❑ O c3 w t o 't 't t O N O V F O N N N N V N of i0 M m LL~ m O E Un ui O p m m - O - N N J ~j "O O 0 a (A ❑ M N N N y (V N - M fA ~2 C) m ` o N ym p O N d O U U p U U O m 0 0 N Un N U ° 0 n o m U ` o m o ~ o 0 0 ~ ~ M c°o ~O, v~ y ~ m a ° ~ w y w w ci"o m m y r O v N O O d° y 03 N W U-) o d U) O ON ❑ O L O .t_- O .L- O « O N i° F M .L- p N y d N o y n ono U) 1/I J C r 0 0 ui O (P p ❑ M N N N m N N - - > M o °Efl ai m ai "O 0 - U U m `o y ym fA fA o Y o p U U EO N 0 U m O N n T w 10 w _ E d n LL O Q Z o n c O 3 ~ N U - Un U lL y i n O~ m N C ~ O T O W c3 y L- 1/1 .L- y .L.- y « N~ y .L.- N y r N N i0 ~ ~ ~ o 03 'O o y N n 3 O E m NN ❑ O ~i O N . 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AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF LONG TERM AND VOLUNTARY SHORT TERM DISABILITY BENEFITS FOR THE CITY OF DENTON EMPLOYEE BENEFITS PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 4482-LONG TERM DISABILITY AND VOLUNTARY SHORT TERM DISABILITY BENEFITS AWARDED TO THE HARTFORD WITH A COST OF $0.20 PER $100 OF PAYROLL PER MONTH, FOR AN ESTIMATED ANNUAL COST OF $111,584 AND VOLUNTARY SHORT TERM DISABILITY BENEFITS AWARDED TO THE HARTFORD (WITH THE COST PER MONTH TO BE DETERMINED BY ACTUAL VOLUNTARY EMPLOYEE PARTICIPATION RATE) IN THE ESTIMATED AMOUNT OF $97,289). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of individual and aggregate stop loss insurance in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 4482 The Hartford $0.20/$100 of payroll/month SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-()RD-RFP 4482 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions regarding this report may be directed to DEPARTMENT: Finance Scott Payne at 349-7836 Al-L ACM: Jon Fortune YT_ SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of Group Term Life and Accidental Death and Dismemberment (AD&D) and Voluntary Supplemental Life and AD&D coverage for City employees; providing for the expenditure of funds therefor; and providing for an effective date (RFP 4483-Basic and Supplemental Life/Accidental Death and Dismemberment Insurance awarded to The Hartford in the estimated amount of $118,718 and Voluntary Supplemental Life Insurance/Accidental Death and Dismemberment Insurance awarded to The Hartford (with the cost per month to be determined by actual voluntary employee participation rate) in the estimated amount of $142,786). BACKGROUND Since 1993, the City of Denton has provided Group Term Life Insurance and Accidental Death and Dismemberment (AD&D) coverage to our employees. The City has also offered additional Voluntary Supplemental Life Insurance coverage to our employees if they wish to purchase it. The most recent Life and AD&D contract was awarded to The Hartford effective January 1, 2008, with a three year rate guarantee and two additional one-year renewals. Although the City still had two one-year renewals remaining, our consultant (McGriff, Seibels and Williams) believed the current voluntary benefits market was such that we would realize savings if we bid the life and supplemental life products. Through Request for Proposal (RFP) 44483, the City of Denton received twelve (12) proposals for Life/AD&D and Voluntary Supplemental Life/AD&D insurance coverage. Working with the City's consultant the list was pared down to the below five (5) proposals that staff evaluated and analyzed in greater detail: UNUM quoted $0.090 per $1,000 of payroll for Group Life and $0.020 per $1,000 of payroll for AD&D with an estimated total annual cost of $87,060. The proposed rate schedule for the Voluntary Supplemental Life Insurance and AD&D is the same as the current rate schedule. UNUM is the City's current provider for Long-Term and Short-Term Disability insurance benefits. Hartford (incumbent) quoted $0.130 per $1,000 of payroll for Group Life and $0.020 per $1,000 of payroll for AD&D with an estimated total annual cost of $118,718. The proposed rate Agenda Information Sheet September 21, 2010 Page 2 schedule for the Voluntary Supplemental Life Insurance and AD&D is the same as the current rate schedule. Prudential quoted $0.130 per $1,000 of payroll for Group Life and $0.018 per $1,000 of payroll for AD&D with an estimated total annual cost of $117,13 5. The proposed rate schedule for the Voluntary Supplemental Life Insurance and AD&D is the same as the current rate schedule. Lincoln Financial quoted $0.150 per $1,000 of payroll for Group Life and $0.020 per $1,000 of payroll for AD&D with an estimated total annual cost of $134,547. The proposed rate schedule for the Voluntary Supplemental Life Insurance and AD&D was somewhat higher than the current rate schedule, depending on the age band. MetLife quoted $0.163 per $1,000 of payroll for Life and $0.022 per $1,000 of payroll for AD&D with an estimated total annual cost of $146,418. The proposed rate schedule for the Voluntary Supplemental Life Insurance was somewhat lower than the current rate schedule, depending on the age band. However the AD&D rate was $0.008 per $1,000 of payroll more expensive than the other companies that were evaluated. RECOMMENDATION Award a contract to The Hartford for both the Group Life/AD&D and Voluntary Supplemental Life/AD&D. The Group Life rate proposed is 18.92% lower than our current rate and will save the City approximately $27,700 when compared with the 2010 estimated premium cost. Additionally the Voluntary Supplemental Life/AD&D rates are the same as the current rates so our employees will not see an increase in their monthly premiums. While UNUM proposed the lowest rate for Group Life/AD&D, The Hartford's overall proposal scored higher among the evaluators in the following weighted criteria: financial stability (15%), cost of products (25%), references/experience with similar clients (10%), scope of products offered (15%), customer service (20%) and a multi-year rate guarantee (15%). The Hartford has been a good partner for the City's benefit program over the past three years. They have been involved with the Employee Insurance Committee (EIC) and Employee Benefits & Wellness Fair and have been active partners in benefit planning and design. They have helped to enhance our life insurance offering by adding Voluntary Supplemental Life for spouse and children. Since we began our contract with The Hartford they have introduced several "value added" benefits as part of their Life Insurance program. Our employees have access to travel assistance services, estate planning consultation, funeral planning/concierge services, as well as family support/EAP services at no additional cost. Additionally The Hartford will be rolling out identity protection services in the near future. All of the proposers submitted three year rate guarantees for both the Group Life/AD&D and Voluntary Supplemental Life/AD&D insurance coverage. Agenda Information Sheet September 21, 2010 Page 3 ESTIMATED SCHEDULE OF PROJECT The contract with The Hartford begins January 1, 2011, with guaranteed Group Life/AD&D and Supplemental Life/AD&D rates until January 2014. The City has the option for up to two additional one-year renewals, based on the City's loss history and enrollment. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On October 16, 2007, the City Council awarded a contract for Group Term Life and AD&D Insurance to The Hartford effective January 1, 2008. The contract provided a three year rate guarantee with two additional one-year renewals, based on the City's loss history, employee demographics and enrollment. FISCAL INFORMATION Funds for Life Insurance and AD&D for FY 2010-11 have been budgeted in account 850500.6716. BID INFORMATION The RFP and Vendor List is available should Council wish to review them. EXHIBITS Exhibit 1 - RFP 44483 Summary of Basic Life/AD&D Proposals Exhibit 2 - RFP 44483 Summary of Employee Voluntary Life/AD&D Proposals Exhibit 3 - Ordinance Respectfully submitted: Scott Payne Risk Manager Respectfully submitted: Bryan Langley, 349-7100 Director of Finance V) O CL O a- 0 r-1 0 N Lr' r-I O) Q N J U co 4- O E E Ln m 00 tl Li s x LL Q a a a 0 0 p co co co co 0 0 - 0 U C: o 0 X X ~ 0 0 O~ a) a) a) U) 0 0 0 ~ N M o \ N N O 0 70 _0 LO C: cu a) ca ca ca cu a) ,j M 00 NO ,T LO LO - - O 0 O 0 Z) 0 Z) U 61), 0 O m= O cu cu cu cu LO 0 0 0 N 0 0 U U u) U co Ef} Efl ce) - - 0 O 0 a) o 0 o ce) Lo O Efl Efl I- 61) c m m m o ~ 6f} U U U U LO c o NT 0 a a mm a a mm 0 O D LO O LO 0 titio co . X X X X 0 O 0 O a) a) -0 0 2 0 a) 0 0 L O 0 0 co m o N N 0 0 Lo c (B a) cis cis cu cis ~ co 0 - O O O O Z) U U Za O O m= 0 E cu cis cis cis a) Lo 0 - 0 o 0 (0 ~ ti 0 O tU) cU) CO (f} CO 61), C: - O o O 0 N H o 0 o \ \ \ CO Ln m9 V) O) r N U) m U) T m z O ~ ~ E!) 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AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF GROUP TERM LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) AND VOLUNTARY SUPPLEMENTAL LIFE AND AD&D COVERAGE FOR CITY EMPLOYEES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE (RFP 4483-BASIC AND SUPPLEMENTAL LIFE/ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE AWARDED TO THE HARTFORD IN THE ESTIMATED AMOUNT OF $118,718 AND VOLUNTARY SUPPLEMENTAL LIFE INSURANCE/ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE AWARDED TO THE HARTFORD (WITH THE COST PER MONTH TO BE DETERMINED BY ACTUAL VOLUNTARY EMPLOYEE PARTICIPATION RATE) IN THE ESTIMATED AMOUNT OF $142,786). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of Group Term Life and Accidental Death and Dismemberment coverage in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 4483 The Hartford Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3 . Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By acceptance and approval of the above numbered items of the submitted proposals, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved proposals or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-()RD-RFP 4483 EXHIBIT A RFP 4483 Vendor Coverage Price Hartford Life Insurance $0.130 per $1000 of payroll Hartford Accidental Death and Dismemberment $0.020 per $1000 of payroll AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions regarding this report may be directed to DEPARTMENT: Finance/Risk Management Scott Payne at 349-7836 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive sealed proposals and awarding a three- year contract for Benefit Consultant Services for the City of Denton; providing for the expenditure of funds therefor and providing an effective date (RFSP 4484-Benefit Consultant Services awarded to McGriff, Seibels and Williams of Texas, Inc. in the annual amount of $48,500 for a three year total of $145,500.). BACKGROUND The City of Denton has utilized the services of a consultant for our various benefit programs since the early 1990's. These programs include health, dental, vision, life, supplemental life, accidental death and dismemberment, long-term disability and short-term disability. The City has been working with our current consultant, McGriff, Seibels & Williams of Texas, Inc. since 2002. The benefits consultant provides a wide array of products and services to assist staff in managing the benefit programs offered by the City. Examples of the types of assistance available include actuarial calculations, rate setting, plan design, Request for Proposal development and evaluation, and State and Federal regulation compliance. The benefit consultant maintains key industry relationships to help ensure that the City is receiving the best benefit at the best value. In addition, the benefits consultant participates in a wide range of local, state and national industry (insurance, benefits, risk management) organizations so that they are able to bring valuable knowledge to assist the City in managing our benefit programs. Through Request for Sealed Proposals (RFSP) 44484, the City received nine proposals from the following companies: McGriff, Seibels & Williams of Texas, Inc. (incumbent) proposed an annual fee of $48,500 with a five year rate guarantee. Arthur J. Gallagher proposed an annual fee of $45,000 with a three year rate guarantee. After the initial three year term the rate would increase by an amount not to exceed 5 percent. Buck Consultants proposed an annual fee of $65,000 with no rate guarantee. Agenda Information Sheet September 21, 2010 Page 2 BACKGROUND(CONTINUED) Holmes Murphy proposed an annual fee of $50,000 with a one year rate guarantee. IPS Advisors, Inc. proposed an annual fee of $50,750 with a three year rate guarantee. Mercer proposed an annual fee of $200,000 with a three year rate guarantee. Smith & Associates proposed an annual fee of $45,000 with a three year rate guarantee. The fee would increase by up to 5% over the next two years. Valley Risk Consulting proposed a flat rate of $125 per hour plus travel expenses with no rate guarantee. Willis of Texas proposed an annual fee of $120,000 with no rate guarantee. The expiring contract with McGriff, Seibels and Williams of Texas, Inc. provided for an annual fee of $48,500. RECOMMENDATION Staff recommends awarding a contract to McGriff, Seibels & Williams of Texas, Inc. (McGriff) for Benefit Consultant Services. McGriff has been our consultant since 2002 and has been a valuable partner for our benefits program. They were instrumental in helping transition the City to a self-funded health plan in 2008. McGriff s relationships with our various insurance providers and third-party administrators have benefited the City many times in working through coverage or service issues. Their position in the benefits marketplace has helped the City realize additional savings when these products have been shopped or sent out for RFP. McGriff is an active participant in the long term planning for the City's benefit program. They attend the monthly meetings of the Employee Insurance Committee and have a good understanding of the philosophy of this organization. McGriff is working with the City on our planned employee health clinic and provides consulting services to the City of Garland who also has an employee health clinic. While Arthur J. Gallagher and Smith & Associates proposed a slightly lower annual fee (7% less) for these services, McGriff s proposed fee did not increase over the expiring contract amount and McGriff has not increased their fee since 2002. Additionally, cost of services was only 20% of the overall evaluation criteria (see Exhibit 1) and McGriff was ranked as the number one choice by the evaluators. Agenda Information Sheet September 21, 2010 Page 3 ESTIMATED SCHEDULE OF PROJECT The contract begins October 1, 2010, with a rate guaranteed until October 2015. The initial contract term is for three years with the option for up to two additional one-year renewals. PRIOR ACTION/REVIEW On September 20, 2005, the City Council awarded a contract for Benefit Consultant Services to McGriff, Seibels & Williams of Texas, Inc. effective October 1, 2005. FISCAL INFORMATION Funds for Benefits Consultant Services for FY 2010-11 have been budgeted in account 850500.7854. BID INFORMATION The RFP and Vendor List are available should Council wish to review them. EXHIBITS Exhibit 1-RFP 44484 Evaluation Grid Respectfully submitted: ~CS'dr~Y Scott Payne Risk Manager Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-RFSP 4484 00 IILnn d V LL. o 4- 76 > LU s x LU o m Ln Ln Ln Ln Ln = N M N Ol ~o Y N Ln Ln CF) Gl ~ M CF) I~ m 0 L OI m M O co a= " N c-I N I~ 0a (A Ln Ln O cr) N N O LfI r- M C r I Ln i O a > ~ Ln Ln 00 Ol c I Q N N CL w Ln Ln Ln 00 L ~o Ln ° 00 = c M c-I c-I C C 10 Ln Ln 3 M Co N O V L N L t 7 rl r I O O Ln L M c-I N c-I l O t F a ~ L 0 O I~ co co r14 c M c-I Ol C • o + ~p L C O Q O c o - C C O E m + O 7 • v r14 O a L1 N > Q O • N U L Q O O ~n O ~ L O O \ O Ln E 12 Q f0 d d O N U O a) L L ~n cn O L O Z v v U Q N N C C O c v v V) v, a C -a O N L > . L L O O . 0, > CL :3 CL aj ° < H fCL6 0 U Q N w Ln 0 v to O U Q V) w a C7 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE SEALED PROPOSALS AND AWARDING A THREE-YEAR CONTRACT FOR BENEFIT CONSULTANT SERVICES FOR THE CITY OF DENTON; PROVIDINGFOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE (RFSP 4484-BENEFIT CONSULTANT SERVICES AWARDED TO MCGRIFF, SEIBELS AND WILLIAMS OF TEXAS, INC. IN THE ANNUAL AMOUNT OF $48,500 FOR A THREE YEAR TOTAL OF $145,500). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of Insurance Consultant Services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFSP NUMBER CONTRACTOR AMOUNT 4484 McGriff, Seibels & Williams of Texas, Inc. $145,500 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3 . Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 1-.CIS-File 4484 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions regarding this report may be directed to DEPARTMENT: Finance/Risk Management Scott Payne at 349-7836 All ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive sealed proposals and awarding a three year contract for Property, Mobile Equipment, Boiler and Machinery, and Fleet Catastrophic Insurance Coverage for the City of Denton; providing for the expenditure of funds therefor and providing an effective date (RFP 4558 - Property, Mobile Equipment, Boiler and Machinery, Fleet Catastrophic Insurance Coverage awarded to Traveler's Insurance Company in the estimated annual amount of $164,860 for an estimated three year total of $495,580). BACKGROUND The City of Denton requested competitive proposals for Commercial Property, Mobile Equipment, Boiler and Machinery, and Fleet Catastrophic Insurance Coverage to protect assets totaling over $320,000,000 in buildings, machinery, equipment, vehicles and contents. The Commercial Property policy insures City buildings and facilities from standard exposures such as fire, windstorm, hail and tornado. In addition the policy provides insurance coverage for physical damage due to a catastrophic event (tornado, windstorm, etc.) to our parked and unoccupied large vehicles and equipment while they are stored on our property and worksites. Through Request for Proposal (RFP) 44558, the City received three (3) proposals from the following companies: Travelers Insurance Company (incumbent) proposed a rate of $0.0514 per $100 of value estimated total annual cost of $164,860 with a three (3) year rate guarantee. Affiliated FM proposed a rate of $0.0482 per $100 of value with an estimated total annual cost of $164,176 with a three (3) year rate guarantee. CNA proposed a rate of $0.0521 per $100 of value with an estimated total annual cost of $175,297. CNA would not provide a rate guarantee beyond the first year. Our expiring policy with Travelers provides for a rate of $0.0729 per $100 of value with an estimated annual premium of $227,095 for property insurance. All the RFP responses quoted a rate that was lower than the current rate. Agenda Information Sheet September 21, 2010 Page 2 RECOMMENDATION Staff recommends awarding a contract to Travelers Insurance Company for Property, Mobile Equipment, Boiler and Machinery, Fleet Catastrophic Insurance Coverage. The rate per $100 of value proposed by Travelers is 41.83% lower than our current rate and will save the City approximately $62,235 based on the 2009-2010 fiscal year premium amount. Additionally this recommendation is supported by our consultant, McGriff, Seibels & Williams (see Exhibit 2). While Affiliated FM proposed a lower rate per $100 of value and higher limits for Earth Movement and Business Interruption coverage, the deductible proposed for Flood Coverage in Flood Zone A is $400,000 higher than the deductible proposed by Travelers ($500,000 compared to $100,000). The City currently has nine (9) facilities located in Flood Zone A so the higher deductible creates the possibility for an increased risk for only $4,700 in premium savings. ESTIMATED SCHEDULE OF PROJECT The contract begins October 1, 2010, with a rate guaranteed until October 2013. The City has the option for up to two additional one-year renewals, based on the City's loss history and underwriting factors. PRIOR ACTION/REVIEW On September 26, 2006, the City Council awarded a contract for Property, Boiler and Machinery, and Catastrophic Vehicle and Mobile Equipment Insurance Coverage to Travelers Lloyd's Insurance Company effective October 1, 2006. FISCAL INFORMATION Funds for Property Insurance for fiscal year 2010-11 have been budgeted in account 860002.6703. BID INFORMATION The RFP and Vendor List is available should Council wish to review them. FXHIRITC Exhibit 1 - RFP 44558 Coverage Comparison Exhibit 2 - Consultant Recommendation Letter Exhibit 3 - Ordinance Agenda Information Sheet September 21, 2010 Page 3 Respectfully submitted: Scott Payne Risk Manager Respectfully submitted: Bryan Langley, 349-7100 Director of Finance 1-AIS-RFP 4558 Exhibit 1 RFP #4558 Coverage Comparison Expiring Travelers Affiliated FM C N A Buildings, Structures, and $166,310,731 $166,310,731 $166,310,731 Personal Property - Limit $22,756,351 $22,756,351 $22,756,351 Machinery & Equipment $85,399,163 $85,399,163 $85,399,163 Fleet $35,634,421 $35,634,421 $35,634,421 Mobile Equipment $10,488,186 $10,488,186 $10,488,186 Total TIV: $311,559,092 $320,588,852 $320,588,852 $320,588,852 Loss Limit: $250,000,000 $320,000,000 $320,588,852 $250,000,000 Sub-Limits: Earth Movement $12,500,000 $12,500,000 $25,000,000 $12,500,000 Flood Excl Zone A $10,000,000 $10,000,000 $10,000,000 $10,000,000 Flood Zone A $1,250,000 $1,250,000 $1,500,000 $1,500,000 Newly Acquired Locations 120 Days) $15,000,000 $15,000,000 120 Days $15,000,000 120 Days $10,000,000 120 Days Accounts Receivable $5,000,000 $5,000,000 $5,000,000 $5,000,000 Valuable Papers $5,000,000 $5,000,000 $5,000,000 $5,000,000 Ordinance or Law, Includes: Demolition &Increased Cost of Construction $5,000,000 $5,000,000 $5,000,000 $5,000,000 Transit $500,000 $500,000 $500,000 $500,000 Extra Expense $5,000,000 $5,000,000 $5,000,000 $5,000,000 EDP Equipment, Data & Media $5,000,000 $5,000,000 $5,000,000 $5,000,000 Business Interruption $5,000,000 None $5,000,000 None Contractors Equipment $10,000,000 $10,488,486 $10,488,186 $10,000,000 Newly Acquired Contractors Equipment $500,000 Not to Exceed $1,000,000 any One Item All Equipment covered as long as it is in Care, Custody or Control $500,000 Equipment Rental $500,000 See Above See Above $500,000 Unscheduled Equipment $500,000 See Above See Above $500,000 Errors & Omissions $1,000,000 $1,000,000 $1,000,000 $1,000,000 Fine Arts $1,000,000 $1,000,000 $1,000,000 $1,000,000 Fleet Catastrophe $7,500,000 $10,000,000 $35,634,421 $15,000,000 B&M Equipment Breakdown $50,000,000 $50,000,000 Policy Limit $50,000,000 Expediting Expense $1,000,000 $1,000,000 $250,000 $1,000,000 Water Damage $1,000,000 $1,000,000 Policy Limit $1,000,000 Ammonia Contamination $1,000,000 $1,000,000 Policy Limit $1,000,000 Hazardous Substances $1,000,000 $1,000,000 Policy Limit $1,000,000 Deductible Options: All Other Perils $50,000 $50,000 $50,000 $50,000 Equipment Breakdown $50,000 $50,000 $50,000 $50,000 Contractors Equipment $10,000 $10,000 $10,000 $10,000 Flood Deductible $100,000 $100,000 $100,000 Except $500,000 Zone A $250,000 Except $500,000 Zone A Wind/Hail Deductible $50,000 $50,000 $50,000 $50,000 Earth Movement Deductible $50,000 $50,000 $100,000 $250,000 Valuation RCV Except CE & Fleet RCV Except CE & Fleet RCV Except CE & Fleet RCV Except CE & Fleet 60 Da Notice of Cancellation Yes Yes Yes Yes 3 Year Rate Guarantee N/A Yes Yes No Rate $0.0729 $0.0514 $0.0482 $0.0521 13151 Premium me u mg Terrorism) $227,095 $164,860 $160,176 $175,296.55 Option: $100,000 AOP Deductible - Rate: '$0.0459 Premium: $153,581.63 --x-17 Exhibit 2 NICGRIFF. SEIBELS & WILLIAMS OF TEXAS. INC. 5080 Spectrum Dm Suite Q00E, Addison, TX 75001 Tel (469) 232-2100 Fax (469) 232-2101 August 31, 2010 Scott Payne Risk Manager City of Denton 601 East Hickory Street, Suite A Denton, TX 76205 Re: RFP 44558 Property, Mobile Equipment, Boiler & Machinery, Fleet Catastrophic Loss Insurance Coverage Scott, McGriff, Seibels & William of Texas, Inc. has reviewed all responses to RFP 4 4558 Property, Mobile Equipment, Boiler & Machinery, Fleet Catastrophic Loss Insurance Coverage. Three insurance carriers provided a response: 1) Travelers (incumbent), 2) Affiliated FM, and 3) CNA. Please see attached a complete Coverage Comparison of the respondents. Premium quotes are as follows: Affiliated FM - $160,176 Travelers - $164,860 CNA - $175,296 CNA provided the highest premium of the three as well as higher deductibles and therefore is not considered for further evaluation. Affiliated FM provided the lowest premium quote and also provided higher loss limits, notably for Fleet Catastrophic and Boiler &Machinery. However, Affiliated FM has a $500,000 deductible for Flood Zone A. The Travelers premium is $4,700 more than the Affiliated FM quote and maintains a $100,000 deductible for Flood Zone A. We have thoroughly analyzed the proposed coverages as they relate to the City's exposures. The City has 9 buildings/facilities located in Flood Zone A. The additional $400,000 in deductible the City would pay for a flood loss under the Affiliated FM proposal is a considerable risk with significant fiscal impact on the City; making the Travelers proposal the best and most advantageous option for the City. We recommend the City purchase Property, Mobile Equipment, Boiler&Machinery, and Fleet Catastrophic Insurance from Travelers Insurance for a premium of $164,860. Exhibit 2 The expiring premium for this insurance is $227,095. The Travelers 2010-2011 premium of $164,860 results in $62,000 in savings for the City. Thank you for the opportunity to work with the City of Denton. Please let us know if you have any questions regarding this evaluation. Thank you. Sincerely, Johnny Fontenot, CPCU, ARM, AIC Senior Vice President ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE SEALED PROPOSALS AND AWARDING A THREE YEAR CONTRACT FOR PROPERTY, MOBILE EQUIPMENT, BOILER AND MACHINERY, AND FLEET CATASTROPHIC INSURANCE COVERAGE FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE (RFP 4558 - PROPERTY, MOBILE EQUIPMENT, BOILER AND MACHINERY, FLEET CATASTROPHIC INSURANCE COVERAGE AWARDED TO TRAVELER'S INSURANCE COMPANY IN THE ESTIMATED ANNUAL AMOUNT OF $164,860 FOR AN ESTIMATED THREE YEAR TOTAL OF $495,580). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of property, mobile equipment, boiler and machinery, and fleet catastrophic insurance in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 4558 Traveler's Insurance Company Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY h BY: 4-ORD-RFP 4558 EXHIBIT A RFP 4558 Vendor Coverage Price Traveler's Insurance Company Property, Mobile $0.0514 per $100 of value Equipment, Boiler and Machinery, Fleet Catastrophic This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune YT- SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Harris Public Utility Billing System and associated software modules available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4542-Purchase of Annual Maintenance for Harris Public Utility Billing awarded to Harris Computer Systems, Inc. in the amount of $97,939.52). FILE INFORMATION The City of Denton uses the Harris Public Utility Billing System software for maintaining utility customer accounts, producing utility bills, and processing utility revenues. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. Harris Computer Systems, Inc. is the sole source vendor for maintenance for the Harris Public Utility Billing System and associated software modules. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDATION Award to Harris Computer Systems, Inc. in the amount of $97,939.52. PRINCIPAL PLACE OF BUSINESS Harris Computer Systems, Inc. Ottawa, Ontario, Canada ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for November 1, 2010 through October 31, 2011. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2010-11 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Support Calls Exhibit 4: Cost Matrix Respectfully submitted: 4"- 5 S ~ Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4542 Exhibit 1 Denton, TX Software PUBS, CARe & HHI Report Writer - PUBS eCARe Call Centre Test Server EIS mCARE Total Proprietary S/W Cognos 1 admin @ $299 10 Users @235 GUI (155 @ $73) GUI (100 @ $73) Nov 1/10 - Oct 31 /11 38,297.45 2,483.91 17,127.63 2,197.56 2,763.60 1031.72 63,901.87 12,773.65 76,675.52 Nov 1/10- Oct 31/11 299.00 2,350.00 Nov 1/10- Oct 31/11 11,315.00 7,300.00 Total 97,939.52 08/05/2010 THU 15:38 FAX 613 225 3377 HARRIS Exhibit 2 3 f" ? s t Northstar Utilities Solutions Suite 400, 1 Antares Dr Ottawa, ON K2E $C4 Dear Sir or Madam: Your firm has been selected as a vendor providing annual maintenance and continued vendor support of the Northstar Utilities Solutions associated software modules. You have indicated to us that you are the only existing vendor of this/these commodities. Due to statutory requirements, unless you are the "single or sole source" of this/these commodities we must bid their procurement competitively. Single source, in this case, means that you are the only company that can supply us with this commodity. We are required to confirm this status with you. Please respond as necessary to the following questions and return this sheet to us via U.S. Mail or fax. Call if you have any questions. 1. Are you the sole or single source vendor for the commodities named above? X Yes No 2. Is there any other vendor that offers this service? Yes X No if you are not the single source vendor of this service, please list the other vendors we need to contact for bids: If you answered questions above as a single source vendor, please sign below to certify that you are the single source of this material and retwrax to: Karen Smith, Senior Buyer 901 B Texas Street Denton, TX 76209 Or Fax to: (940) 349-7302 1 certify that we re the sole source of the above listed commodity or commodities. 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Q a) c U o O C a O a) t/) O O a a) E O Q O 9) ~ c a 9) O E O a O ~ C~ x a5 S a ~ w a U U a5 a U O E a L m C d' a) C a) U E f/) f/) C a) .C .S cC a (6 o Q O C (D a) Y C C C Y = a o t a) > ° Q .E O 5 ~ 0 o g ° 5 a O O u a o Q E - o ' D O ~ a O L ~ 'C O ~ o ) m E Q a O) _ - U _ - ( D C o o a o ~ -O 5 ~ Z S ~ m ) (D E z S Q (D ~ a5 o - Q _ N oo C In o - 'w a a ° C O a5 Y a5 M 2 o M 9 w ~ LL a - m (7 0 ~ ~ O a) E O C a Q E T _ m O CJ a C a5 ` Lo o o E a) O C) U) u, axi a5 E O m ° 9 w ~ E ° o .L . o (n M N O E O (6 H O E O u U U E m N > X 0 o E N O _ > m (n ° 'a) a5 a5 E U U ° LaS o6 O a5 O C E o C ~ a a m S a5 w ~ a5 'm O .1 07 O U a5 S a5 ~ E O a3 (7 a5 (7 y a5 S a) Z <O Q C a) m ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING SYSTEM AND ASSOCIATED SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4542-PURCHASE OF ANNUAL MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING AWARDED TO HARRIS COMPUTER SYSTEMS, INC. IN THE AMOUNT OF $97,939.52). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4542 Harris Computer Systems, Inc. $97,939.52 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 6-ORD-File 4542 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune YT_ SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld)) from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4545- Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $104,218.74). FILE INFORMATION In 1998, a Focus Committee was formed to review and select a new financial reporting system and human resources management system. This new software would replace an eighteen-year old mainframe system. Twelve representatives from Utilities, Treasury, Purchasing and Warehouse, Human Resources, Accounting and Budget, and other end-user departments participated in the evaluation process. The Committee met regularly establishing criteria for selection, identifying possible product solutions and evaluating each possible solution. After product demonstrations and initial selection of four possible solutions, site visits were made to similar municipal users. The Committee unanimously made the final selection of JD Edwards on September 24, 1999. The City of Denton uses the Oracle EnterpriseOne software package for Job Cost, Warehouse Inventory and Procurement, Financials, General Ledger Accounting, Human Resources, Employee Information, and Payroll. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. RECOMMENDATION Award to Oracle USA, Inc. in the amount of $104,218.74. PRINCIPAL PLACE OF BUSINESS Oracle USA, Inc. Chicago, IL Agenda Information Sheet September 21, 2010 Page 2 ESTIMATED SCHEDULE OF PROJECT Maintenance is being paid for November 1, 2010 through October 31, 2011. FISCAL INFORMATION Funding for this item is budgeted in the FY2010-11 Technology Services operating account number 830400.6504. VV HIRITC Exhibit 1: Quote Exhibit 2: Sole source Letter Exhibit 3: Cost Matrix Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4545 Exhibit 1 ORACLE' 2-Jul-10 Jim Barnes City of Denton 215 E McKinney St DENTON TX 76201 United States Dear Jim Barnes, The technical support services and benefits provided under service contract number P-JD-M01693-001--86 will expire, or have expired, on 31-Oct-10. Please find attached an ordering document for the renewal of this service contract. If applicable, the attached ordering document may also include incremental technical support services newly acquired. To ensure that there is no interruption to the technical support services and benefits provided under service contract number P-JD-M01693-001--86, please order the technical support services on this ordering document by issuing a form of payment acceptable to Oracle in accordance with the attached Order Processing Details section on or before 2-Oct-10. If further information is required, please contact me at the e-mail address or telephone number provided below. Regards, Jason Haydel Oracle Support Services E-mail: jason.haydel@oracle.com Tel.: (512)671-5652 Fax: Page 1 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 ORACLE' Ordering Document Service Contract P-JD-M01693-001--86 Renewal Contact: Jason Haydel Offer Expires: 31-Oct-10 Payment Terms: 30 NET from date of Telephone: (512)671-5652 invoice Fax: Billing Terms: Quarterly in Arrears E-mail: jason.haydel@oracle.com CUSTOMER: City of Denton QUOTE TO BILL TO Account Contact: Jim Barnes Account Contact Accounts Payable Account Name: City of Denton Account Name: City of Denton Address: 215 E McKinney St Address: 215 E McKinney St DENTON DENTON TX 76201 TX 76201 United States United States Telephone: 940-349-8530 Telephone: Fax: 940-349-8533 Fax: E-mail: jim.barnes@cityofdenton. E-mail: com Oracle may provide certain information and notices about technical support via e-mail. Accordingly, please verify and update the Quote To and Bill To information above to ensure that such communications and notices are received from Oracle. If changes are required, please e-mail or fax the updated information to Jason Haydel at jason.haydel@oracle.com or . Please also include service contract number P-JD-M01693-001--86 on such reply. Page 2 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Service Details Service Level: Software Update License & Support End Date: 31-Oct-11 Product Description CSI # Qty License License Start Date Final Price Metric Level/Type Jd Edwards World Computer 14488619 1 1-Nov-10 0.00 Assisted Design Jd Edwards World Computer 14488619 1 1-Nov-10 0.00 Operations JD Edwards World Case Foundation 14488619 1 1-Nov-10 0.00 Environment/Tool Kit Jd Edwards World Conversion 14488619 1 1-Nov-10 0.00 Programs Jd Edwards World Documentation 14488619 1 1-Nov-10 0.00 Jd Edwards World Dream Writer 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Requirements Planning JD Edwards EnterpriseOne Sales 14488619 1 1-Nov-10 0.00 Order Processing JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Procurement and Subcontract Management JD Edwards EnterpriseOne Content 14488619 1 1-Nov-10 0.00 Builder JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Accounts Receivable JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Technology Foundation Jd Edwards World Advanced 14488619 1 1-Nov-10 0.00 Forecasting Jd Edwards World Agreement 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Accounts Payable JD Edwards EnterpriseOne Quality 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne Sales 14488619 1 1-Nov-10 0.00 Order Entry JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Advanced Stock Valuation Jd Edwards World Advanced Pricing 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne Us 14488619 1 1-Nov-10 0.00 Payroll JD Edwards EnterpriseOne Contract 14488619 1 1-Nov-10 0.00 and Service Billing JD Edwards EnterpriseOne Project 14488619 1 1-Nov-10 0.00 Costing Page 3 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Service Level: Software Update License & Support End Date: 31-Oct-11 Product Description CSI # Qty License License Start Date Final Price Metric Level/Type JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Advanced Pricing Jd Edwards World Electronic Burst & 14488619 1 1-Nov-10 0.00 Bind Jd Edwards World Technical 14488619 1 1-Nov-10 0.00 Foundation Jd Edwards World Real Estate 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne Real 14488619 1 1-Nov-10 0.00 Estate Management JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Manufacturing - ETO Foundation JD Edwards World FASTR 14488619 1 1-Nov-10 0.00 Jd Edwards World Multi-Site 14488619 1 1-Nov-10 0.00 Consolidations JD Edwards EnterpriseOne Human 14488619 1 1-Nov-10 0.00 Resources Management JD Edwards World Enterprise 14488619 1 1-Nov-10 0.00 Facility Planning Jd Edwards World Electronic Mail 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne Fixed 14488619 1 1-Nov-10 0.00 Asset Accounting Jd Edwards World Advanced Stock 14488619 1 1-Nov-10 0.00 Valuation Jd Edwards World Bulk Stock 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne Service 14488619 1 1-Nov-10 0.00 Management Foundation JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Manufacturing - PDM JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Inventory Management Jd Edwards World General Ledger 14488619 1 1-Nov-10 0.00 Jd Edwards World Address Book 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne Capital 14488619 1 1-Nov-10 0.00 Asset Management Jd Edwards World Inventory 14488619 1 1-Nov-10 0.00 Management Jd Edwards World EDI 14488619 1 1-Nov-10 0.00 Jd Edwards World Security Officer 14488619 1 1-Nov-10 0.00 Jd Edwards World Technical Aids 14488619 1 1-Nov-10 0.00 Jd Edwards World World Writer 14488619 1 1-Nov-10 0.00 Jd Edwards World Human 14488619 1 1-Nov-10 0.00 Resources Management Page 4 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Service Level: Software Update License & Support End Date: 31-Oct-11 Product Description CSI # Qty License License Start Date Final Price Metric Level/Type JD Edwards World U.S. Payroll 14488619 1 1-Nov-10 0.00 Processing Jd Edwards World Time Accounting 14488619 1 1-Nov-10 0.00 Jd Edwards World Subcontract 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Agreement Management Jd Edwards World Quality 14488619 1 1-Nov-10 0.00 Management Jd Edwards World Requirements 14488619 1 1-Nov-10 0.00 Planning Jd Edwards World Warehouse 14488619 1 1-Nov-10 0.00 Management JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Foundation - Order Processing Jd Edwards World Accounts 14488619 1 1-Nov-10 0.00 Payable Jd Edwards World Multi-Currency - 14488619 1 1-Nov-10 0.00 Base Jd Edwards World Base 14488619 1 1-Nov-10 0.00 Configurator JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Foundation - Work Order JD Edwards EnterpriseOne Bulk 14488619 1 1-Nov-10 0.00 Stock Inventory JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Configurator JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Foundation - Address Book JD Edwards EnterpriseOne HCM 14488619 1 1-Nov-10 0.00 Foundation Jd Edwards World Sales Order 14488619 1 1-Nov-10 0.00 Management Jd Edwards World Accounts 14488619 1 1-Nov-10 0.00 Receivable Jd Edwards World Cash Basis 14488619 1 1-Nov-10 0.00 Accounting Jd Edwards World Fixed Assets 14488619 1 1-Nov-10 0.00 JD Edwards World Financial 14488619 1 1-Nov-10 0.00 Planning & Budgeting Jd Edwards World Financial 14488619 1 1-Nov-10 0.00 Reporting Jd Edwards World Product Data 14488619 1 1-Nov-10 0.00 Management Jd Edwards World Shop Floor 14488619 1 1-Nov-10 0.00 Management Page 5 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Service Level: Software Update License & Support End Date: 31-Oct-11 Product Description CSI # Qty License License Start Date Final Price Metric Level/Type Jd Edwards World Project Costing 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne 14488619 1 1-Nov-10 0.00 Manufacturing - Shop Floor Jd Edwards World Work Order 14488619 1 1-Nov-10 0.00 Management Jd Edwards World Capacity 14488619 1 1-Nov-10 0.00 Planning JD Edwards World Plant And 14488619 1 1-Nov-10 0.00 Equipment Maintenance Management JD Edwards EnterpriseOne General 14488619 1 1-Nov-10 0.00 Ledger Jd Edwards World Contract Billing 14488619 1 1-Nov-10 0.00 Jd Edwards World Project Change 14488619 1 1-Nov-10 0.00 Management JD Edwards World Inventory/ OP 14488619 1 1-Nov-10 0.00 Base Jd Edwards World Procurement 14488619 1 1-Nov-10 0.00 JD Edwards EnterpriseOne 14567601 100 FULL USE 1-Nov-10 104,218.74 Suite-Concurrent Full-Use User Subtotal: USD 104,218.74 Total Amount: USD 104,218.74 plus applicable tax Notes: 1. If any of the fields listed above are blank, the program licenses were acquired under a separate license model in which such field(s) does not apply. 2. If a change to the Service Details provided above is required, please contact Jason Haydel at (512)671-5652 or at jason.haydel@oracle.com and an updated ordering document will be provided to you in accordance with Oracle's technical support policies. Page 6 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 GENERAL TERMS "You" and "your" refers to the Customer provided above In the event that the Customer and the Quote To Account Name provided above are not the same, City of Denton acknowledges that Customer has authorized City of Denton to execute this ordering document on Customer's behalf and to bind Customer to the terms described herein. City of Denton agrees that the ordered services shall be used solely by the Customer and shall advise Customer of the terms of this ordering document as well as information and notices about technical support that Oracle provides to City of Denton during the term of service. The technical support services acquired under this ordering document are governed by the terms and conditions of the Acquired PSFT Agreement. However, any use of the programs, which includes by definition the updates and other materials provided or made available by Oracle under technical support, is subject to the rights granted for the programs set forth in the order in which the programs were acquired. Technical support is provided under Oracle's technical support policies in effect at the time the services are provided. The technical support policies are subject to change at Oracle's discretion; however, Oracle will not materially reduce the level of services provided for supported programs during the period for which fees for technical support have been paid. You should review the technical support policies prior to entering into this ordering document. The current version of the technical support policies, including Oracle's reinstatement policy, may be accessed at hftp://www.oracle.com/sur)r)ort/policies.htmi. Customers who allow technical support to lapse and later wish to reactivate it will be subject to Oracle's reinstatement policy in effect at the time of reinstatement. Applicable reinstatement fees may apply in addition to the annual technical support fees. In the event that Priority Service is acquired under this ordering document, you acknowledge you must maintain a current Software Update License & Support contract for all licenses in a license set for which Priority Service has been purchased. By accepting this ordering document, you also acknowledge that Software Update License & Support for program licenses listed under the Priority Service level may be renewed under separate contract(s). Upon renewal, Priority Service fees will be based on the Priority Service pricing policies in effect at the time of renewal and such fees will be adjusted to account for any acquisition of additional licenses in a license set. Contractual caps on annual technical support fees for Software Update License & Support do not apply to Priority Service, unless stated otherwise in your contract. Page 7 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Order Processing Details Your order is subject to Oracle's acceptance. An order consists of the following: (i) this ordering document, which incorporates by reference the Acquired PSFT Agreement, and (ii) a form of payment acceptable to Oracle. Oracle normally accepts orders after receipt of a purchase order or credit card issued in accordance with the Purchase Order and Credit Card Confirmation section below. If Oracle accepts your order, the service start date is the effective date of such order and also serves as the commencement date of the technical support services. Once ordered, technical support for the support period defined above is non-cancelable and the related fees are non-refundable. An invoice will only be issued upon receipt of a form of payment acceptable to Oracle. Regardless of the form of payment, Oracle's invoice includes applicable sales tax, GST, or VAT (collectively referred to as "tax" If City of Denton is a tax exempt organization, a copy of City of Denton's tax exemption certificate must be submitted with City of Denton's purchase order, credit card or other acceptable form of payment. PURCHASE ORDER AND CREDIT CARD CONFIRMATION Purchase Order If the technical support services on this ordering document will be ordered and paid under a purchase order, the purchase order must include the following information: - Service Contract P-JD-M01693-001--86 - Term of Service: 1-Nov-10 to 31-Oct-11 - Final Total: USD 104,218.74 (excluding applicable tax) - Local Tax, if applicable - Agreement: Acquired PSFT Agreement In issuing a purchase order, City of Denton agrees that the terms of this ordering document and the terms of Acquired PSFT Agreement supersede the terms in the purchase order or any other non-Oracle document, and no terms included in any such purchase order or other non-Oracle document shall apply to the technical support services ordered. Please e-mail or fax the purchase order to Oracle per the Remittance Details provided below. Credit Card Confirmation If the technical support services on this ordering document will be ordered and paid under a credit card, please complete the section below and return it to Oracle per the Remittance Details provided below. Oracle will charge the credit card quarterly in arrears. Please note that Oracle is unable to process credit card transactions of USD100,000 or greater. Service Contract P-JD-M01693-001--86 Term of Service: 1-Nov-10 to 31-Oct-11 Final Total: USD 104,218.74 (excluding applicable tax) Agreement: Acquired PSFT Agreement Page 8 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Credit Card Number Expiration Date Billing Address (associated with Credit Card) City, State, and Zip (associated with Credit Card) Authorized Signature Name The credit card must be valid for the entire Term of Service above. In issuing this credit card confirmation, City of Denton agrees that only the terms of this ordering document and the terms of Acquired PSFT Agreement shall apply to the technical support services ordered. No terms attached or submitted with the credit card confirmation shall apply. REMITTANCE DETAILS Purchase orders or credit card details for the technical support services ordered hereto should be sent to: Attn: Jason Haydel Oracle Support Services Fax: E-mail: jason.haydel@oracle.com Page 9 of 9 Service Contract Number: P-JD-M01693-001--86 RL_Specified_Agreement_v020110 Exhibit 2 9600 North Mopac Expressway STE 700 Austin, TX, 78759 August 6, 2010 City of Denton John Durnell 215 EAST MCKINNEY STREET Denton, TX 76201 Dear John, This letter is to confirm that Oracle has the unique expertise and capabilities to support Oracle program licenses. Oracle creates the proprietary program updates that may be provided as part of Oracle's technical support services. As the sole source of technical support services (including the proprietary program updates created by Oracle), Oracle offers the services to Oracle customers for purchase on an annual basis either directly from Oracle or, on limited occasion, indirectly from an Oracle authorized reseller of the services. For more detailed information about Oracle's technical support services, refer to Oracle's technical support policies located at ttp://www.oracle.corn/sport/olicies.tl. Please contact me should you have questions. Regards, Jason Haydel Support Sales Representative, Oracle Support Services Oracle USA, Inc. 9600 North Mopac Expressway STE 700 Austin, TX, 78759 512.671.5652 719.757.4309 ~ O O N N p O Cl) O O O N O Q O Cl) N 00 O O N O o - M o N poj O o) O O o N po o o o N CO Lc) O o o N CO o o M - o N oO O ~ o N CO O o o h X o N o O o N co N o o O U_ Z o N U) O N a ~ `o O Y C ll~ O O C ~ O o C O O O O ' N N O N U T C o 9 rn Q N w C .C oo E 6 ~6 a O O C _ o t 0 a O o a N N_ o p m y E O T Q m 'o Q C U O o O Q o w E N o o a ~ .o Q C N N Q a E p W `o In X O 6 ~ m C v o u) ca o C N 7 U a J oU 'U O C C N C - Q N C C O O , C U Q E C o > o a o p t cc Q Q o o w O o p o u) U C O O < C M Q N C LL a a o o E Q T ~ o ED) U 2 O o O o O o u) 5 a E 2 o C w ~ C 0 Y O o - U - O 9 O C C 0 o O f 0 o O U ~ 9 d 6j t0/1 O T C Y a o w N U O C LU m a Q Y ° m o m E w E O ° U O p ~ Ca d C - W o > ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE ORACLE ENTERPRISEONE (FORMERLY PEOPLESOFT ENTERPRISEONE (FORMERLY JD EDWARDS ONEWORLD)) FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4545-PURCHASE OF ANNUAL MAINTENANCE FOR ORACLE ENTERPRISEONE SOFTWARE PACKAGE AWARDED TO ORACLE USA, INC. IN THE AMOUNT OF $104,218.74). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4545 Oracle USA, Inc. $104,218.74 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 5-ORD-File 4545 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for Interactive Voice Response and Outage Management System and associated software modules for Denton Municipal Electric (DME) utility available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4546-Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Milsoft Utility Solutions in the amount of $61,363.00). FILE INFORMATION DME uses the Milsoft Utility Systems software and automated interactive voice response system (IVR) to efficiently respond to electric utility service outages. This IVR solution provides DME with answering and message routing ability, additionally providing caller address identification supporting the Outage Management System (OMS). The OMS solution provides DME with the ability to partially automate the response to power outages and dispatch service crews, inform customers of outage status, and providing estimated restoration times. Milsoft Utility Solutions is the sole source vendor for maintenance for the IVR and OMS systems and associated software modules. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDATION Award to Milsoft Utility Solutions in the amount of $61,363.00. PRINCIPAL PLACE OF BUSINESS Milsoft Utility Solutions Abilene, TX ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for November 1, 2010 through October 31, 2011. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2010-11 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4546 Exhibit 1 Lori Paulson From: Lori Paulson Sent: Thursday, July 29, 2010 8:30 AM To: 'john.durnel[@cityofdenton.com' Subiect: Milsoft Support information for Next Year John, Thank you so much for your inquiry regarding next year's support fees. I apologize for taking so long to get this information together for you. There will be no change in your support for next year unless you make additional purchases. Support amounts are as follows: Your IVR support is $41,096.39 at this time. It will cover the period December 16, 2010 - December 15, 2011 and will be invoiced this year on Nov. 1, 2010. 1 don't show that we have installed Crew Command yet but it will be an additional $1,080.00 per year and will be prorated beginning 60 days after installation to end the same date with the IVR. There is a monthly Call Center fee of $400.00 billed the first of each month along with Call Center calls. They are billed as incurred so that will vary. You also have an annual maintenance fee for Conversion Tool of $1,800.00 and Misc. Software support of $886.22. These are invoiced together on Dec. 1, 2010 and cover the period Jan. 1, 2011- Dec. 31, 2011. The OMS support is billed the first of each month and is $975.00 per month. Again, these are for the current products mentioned above and will change according to any new purchases or IVR upgrades. If l can be of further assistance please let me know. Milsoft truly appreciates your patronage and we look forward to continuing our service to you. Thanks you. Sincerely, Lori Paulson Bookkeeper Milsoft Utilitv Solutions. Inc. 800.344.5647 325.695.1642 325.690.0338 fax ]or!. Paulson 0 m ilsoft.com ~I.orporase U- :µe 4 X _uffalo C ip Road Suite 5150 Abilene, Texas 79606 800.344.5647 325,635,1642 phone 325.690.0338 fax August 4, 2010 Pensacola Division 7100 Plantation Road suite 17 Exhibit 2 Pensacola, Florida 32504 $00.344.5647 850.477.6477 phone 850.477.5781 fax MR. JOHN DURNELL Applications Program Supervisor, Technology Services City of Denton 215 East McKinney Street Denton, TX 76201-4299 RE: Sole Source Dear John: This letter will verify that Milsoft Utility Solutions, with headquarters in Abilene, Texas, is the only authorized distributor (sole source) of the DisSPatchl and Conversion Tool software and the Porche IVR and Telelink systems. Milsoft holds the patents and copyrights and is the only company authorized to provide the renewal service for maintenance and support for the City of Denton. If you should have any questions, please do not hesitate to contact our office. /da O N I~ O ~ O ~ O O O ~ O O O O M fp fp O ~ O O N I~ O O ~ O ~ O ~ O O ~ r ~ ~ O O I~ ~ fp N fp N O O 00 O O N ~ O _ ~ N V ~ (h I~ N N (6 U Q U (6 o E a o V N ~ o E N Q o o u) c a U o c o U u w U 3 > a m - O > o U U H O U w A V o C 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N 0 0 N A Q 'O C W 0 N N 0 N ~ N 0 N M N 0 N M N 0 N N 0 N N ~ A 0 0 0 N N 0 0 N N ~ 0 N ~ ~ 0 N ~ o 0 N N 0 0 N N f . F' bA ^ 4- CN O 0 Q O O O Q O Q 'O ~ > Y u) ~ in w r u o o 3 a U U o 2 o a d U G H O U F v o> ~'~1 X00 y r ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR INTERACTIVE VOICE RESPONSE AND OUTAGE MANAGEMENT SYSTEM AND ASSOCIATED SOFTWARE MODULES FOR DENTON MUNICIPAL ELECTRIC (DME) UTILITY AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4546-PURCHASE OF ANNUAL MAINTENANCE FOR MILSOFT UTILITY SYSTEMS AWARDED TO MILSOFT UTILITY SOLUTIONS IN THE AMOUNT OF $61,363.00). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4546 Milsoft Utility Solutions $61,363 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 5-ORD-File 4546 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 4548-Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, Inc. in the amount of $56,250.50). FILE INFORMATION CodeRED Emergency Notification System allows the Emergency Management Coordinator in the Fire Department and other authorized individuals to utilize a web-based program to place telephone calls at high speed to the citizens of Denton during emergency situations such as hazardous materials spills, missing children, utility outages, etc. The System can also be used to notify database groups such as off-duty personnel to report to work, Emergency Operations Center activations, Leadership Team notifications, etc. CodeRED Weather Warning Service is a prerecorded weather warning notification process that can automatically call residents when warnings are issued by the National Weather Service for tornadoes, flash flooding, severe thunderstorms, and winter storms. The CodeRED agreement automatically renews annually on October 7 of each year unless the City of Denton cancels. Annual renewal includes replacing the current minute bank back to 150,000 minutes for $37,500 and the Weather Warning Module in the amount of $18,750.50, for a total annual renewal of $56,250.50. Emergency Communications Network, Inc. is the sole source vendor for service of the CodeRED Emergency Notification and CodeRED Weather Warning Service. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDATION Award to Emergency Communications Networks, Inc. in the amount of $56,250.50. Agenda Information Sheet September 21, 2010 Page 2 PRINCIPAL PLACE OF BUSINESS Emergency Communications Network, Inc. Ormond Beach, FL ESTIMATED SCHEDULE OF PROJECT Annual service is being paid for October 1, 2010 through September 30, 2011. FISCAL INFORMATION Funding for this item is budgeted in the FY 2010-11 Technology Services operating budget account 830500.7804 VV HIRITC Exhibit 1: Quote Exhibit 2: Sole Source Letter Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4548 Exhibit 1 CODE weather BRIAN DAVIS ACCOUNT REPRESENTATIVE CC]rF weather LMIERGLNCY COMMUNICATIONS NLIWORK A I 1 Cost Proposal (PRICING GOOD FOR 90 DAYS FROM 811212010) Emergency- Communications Nets` ork's innovative, geograpliically targeted N eatlier -warning product Nvas built to alert citizens in the path of severe -weather. Developed on the same calling net work infrastructure as the CodeREDR' solution for community notification and tapping into the National Feather Service's Storm Based Warnings, CodeRED Weatlier WarningTM automatically- sends telephone messages to affected citizens moments after a severe thunderstorm, flash flood or tornado warning has been issued. A one (1) year add-on contract for CodeRED customers includes • CodeRED Weatlier Warning system set-up • Free one time use of the CodeRED system O A community-wide call -will be made to introduce the -weather -warning product and direct citizens to sign up to receive alerts • Unlimited severe N eatlier N arnings: 24 hours a dad-, 365 days a year • Detailed call statistics • Design and hosting of custom Nveb page for community enrollment $189750.50 = Annual Cost (based on 2008 U.S. Census Population of "Type Population" ) Thank you for the opportunity to present CodeRED Weatlier Warning. If you have and- questions, please feel free to contact me. BRIAN DAVIS ACCOUNT REPRESENTATIVE -ch.FL32124 Confidential Company Information Emergency Communications Network 866-939-0911 ecnetwork.com All rights reserved. 2 BRIAN DAVIS ACCOUNT REPRESENTATIVE EMERGENCY COMMUNICATIONS NETWORK milaa Cost Proposal (PRICING GOOD FOR 90 DAYS FROM 811212010) The «eb-based CodeRED" service, from Emergency Communications Net«ork Inc. (ECN), «as designed specifically to enable local government officials to record, send and track personalized voice, email and text messages to thousands of citizens in minutes. ECN's dedicated, triple redundant net«ork is capable of sending critical communications at maximum throughput (as determined by local telephone infrastructure). The proprietary mapping technology and patented delivery methods employed by ECN add to the value of this affordable, high-speed notification system that has been in operation since 1998 and is currently used every day by clients from coast to coast. A one (1) year license includes 24171365 uninterrupted CodeRED system access and the following • CodeRED system set-up and training • System time, designed to be more than sufficient for normal usage "Type Minutes" minutes, replenished annually; unlimited smtp text and email • Initial residential and business calling database supplied by ECN • Integration and geo-coding of customer supplied data (911 data, utility data, etc.) • ECN standard mapping and geo-coding • 24/7 technical support • Complimentary system time for testing and training • Design and hosting of custom «eb page for community enrollment $379500 = Annual Cost (based on 2008 U.S. Census Population of "Type Population" ) A further discount may be obtained b committing to an extended contract term. Geographic Information Systems (GIS) Options Included Standard mapping $ 250 per year to integrate client supplied centerline data to standard mapping $2,500 per year to upload and maintain custom map (up to 10 layers) Thank you for the opportunity to present CodeRED and submit this cost proposal. If you have any questions, please feel free to contact me. BRIAN DAVIS ACCOUNT REPRESENTATIVE Exhibit 2 EMERGENCY COMMUNICATIONS NETWORK 9 Sunshine Boulevard. OFmond Beach, Fl 32174 T E L 866 939 0911 r A k 386 676 1127 4V E 8 emergencycommunications.net Bobbie Arashiro August 12, 2010 Enterprise Architecture Manager City of Denton 601 E Hickory St Ste A Denton, TX 76205 Re: Emergency Communications Network, Inc. Code Service Dear Ms. Arashiro, The Code . Emergency Notification System is a service providing clients with the ability to deliver high-speed customized pre-recorded critical messages. The Code' e 3 system utilizes many features that individually and in totality make ECN and Code. L a unique sole provider. This letter is to list for you some of the unique features of Code , a service of the Emergency Communications Network (ECN) that cannot be duplicated by any other system including: ECN is the only emergency notification system provider authorized to utilize the RealCall° patented technology. ECN is the sole distributor of the Code service and RealCall is ECN's proprietary technology. RealCall enables Code to deliver accurate messages in their entirety without looping or repeating the message to answering machines and other voicemail devices. This revolutionary technological advantage has been proven to maximize the efficiency of the local telephone infrastructure when telephone circuits are in their highest demand. Other technologies will leave partial, truncated or repeated messages wasting valuable telephone circuit resources when they are most needed. (Unique process, Patented US Patent 6324262 BI) CodeRED utilizes a unique Universal ANIo, a toll free call back number that allows residents to call back and hear the last specific message that was delivered to their phone number. (Unique ability and technology) • Using Validatao telephone number validation system CodeRED is able to confirm every number in the customer's database to verify validity of the data and identify addresses without valid phone numbers. (Unique ability and technology) As you can see from the list of unique features above the City of Denton has multiple reasons to sole source our CodeRED service. Many of our clients are able to immediately purchase through the sole-source method using the totality of these and other benefits. Please feel free to contact me if you have any questions. Sincerely, James Skew General Counsel Emergency Communications Network, inc. CodeRED4 / Code RED Weather Warning'"' e Checkup Call"' / CodeED- ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION SYSTEM AND CODERED WEATHER WARNING SERVICE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4548- PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION AND CODERED WEATHER WARNING SERVICE AWARDED TO EMERGENCY COMMUNICATIONS NETWORK, INC. IN THE AMOUNT OF $56,250.50). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NT FNTRFR VFNF)C)R A li C)T TNT 4548 Emergency Communications Network, Inc. $56,250.50 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-ORD-File 4548 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune YT_ SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department dispatching and records management available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4549-Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded to VisionAir, Inc. in the amount of $198,545.26). FILE INFORMATION The City of Denton uses the VisionAir Public Safety Software system for managing all aspects of Public Safety dispatching as well as managing the Public Safety Records of Police and Fire Departments. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. VisionAir, Inc. is the sole-source vendor for maintenance for the VisionAir Public Safety Software Suite of modules. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, do not have to be competitively bid. RECOMMENDATION Award to VisionAir, Inc. in the amount of $198,545.26. PRINCIPAL PLACE OF BUSINESS VisionAir, Inc. Castle Hayne, NC ESTIMATED SCHEDULE OF PROJECT Annual Maintenance is being paid from October 1, 2010 through September 30, 2011. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2010-11 Technology Services operating budget account 830700.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Support Calls Exhibit 4: Cost Matrix Respectfully submitted: z' Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4549 Exhibit 1 't I 1 N A I Re 5601 Barbados Boulevard Castle Hayne, NC 28429 Bill To: Denton TX, City of 601 East Hickory, Suite E 601 East Hickory, Suite E Denton TX 76205 www.visionair.com Main: 800-882-2108 Fax: 910-602-6190 Quote QT 4000117 Date 8/3/2010 Pa e 1 Tax ID: EXEMPT Contact: Tiffany Wei Email: Tiffany.Wei@cityofdenton.com Fax: (940) 349-8979 Ext. 0000 Purchase Order No. Customer ID Maint. Beg. Date Maint. End Date Pa ment Due Date: Master No. ANNUAL SUPPORT DENPDFDTX01 101 2010 101 2011 10 1 2010 138 Quantity Item Number Description Unit Price Ext. Price 1 VMECAD002 CAD 247 Software Support $39,851.68 $39,851.68 1 VMERMS001 RMS 8x5 Software Support $17,152.54 $17,152.54 1 VMEJAL001 Jail 8x5 Software Support $5,804.76 $5,804.76 1 VMEMBL002 Mobile 247 Software Support $88,575.98 $88,575.98 1 VMEFRE001 Fire 8x5 Software Support $5,284.14 $5,284.14 1 VMEINF001 INFORM 8x5 Software Support $3,848.61 $3,848.61 1 GEOMTE002 GeoComm GeoLynx 9-1-1 Software Support GL825M $6,405.45 $6,405.45 Job#062050 1 GEOMTE010 GeoComm GeoLynx Mobile Software Support MI-100N" L" $25,060.26 $25,060.26 Job#062058 1 VOTOTH002 Fingerprint Interface not live $2,178.00 $2,178.00 1 VOTOTH002 Go To Assist $400.00 $400.00 1 VMECAD002 CAD 247 Software Support $1,477.98 $1,477.98 Job#081061 CAD/E911 1 VMEOTH002 Custom Solution Software Support $1,147.50 $1,147.50 Job#082093 Automated Citation Importer 1 VSETRN010 LMS User Subscription $765.00 $765.00 Job#092003 1 VMERMS001 RMS 8x5 Software Support $24.16 $24.16 Job#091066 Pro-rated 9/26/11 - 10/1 /11 RMS American Barcode Interface 1 VMECAD002 CAD 247 Software Support $186.48 $186.48 Job#091103 Pro-rated 12/9/10 - 10/1 /11 GeoRelay 1 GEOMTE002 GeoComm GeoLynx 9-1-1 Software Support Per Client $382.72 $382.72 Job#091103 Pro-rated 4/1/11 - 10/1/11 GeoComm Geolynx Tax Id 56-1747324 Subtotal $198,545.26 Support renewal quote for budgetary purposes on Misc $0.00 software purchases as of this quote date. The Tax $0.00 items with a "not live" statement will be prorated Total $198,545.26 Remit to: VisionAIR, Dept AT 952157, Atlanta, GA 31192-2157 Exhibit 2 V 1 i r c~ 5601 Barbados Blvd. Castle Mayne, NC 28429 Main: 800-882-2108 Fax: 910-602-6190 August 4, 2010 Ms. Tiffany Wei Denton Police Department 601 East Hickory, Suite E Denton, Texas 76205 Via: Electronic Mail Dear Ms. Wei: VisionAlR is the sole source provider of support for its software that is used by the City of Denton Police Department. Please let me know if you have any questions. We appreciate your business. Regards, Mitzi Ki aid, Esq. Gene ounsel VisionAlR, Inc. 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AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AND ASSOCIATED MODULES USED FOR POLICE AND FIRE DEPARTMENT DISPATCHING AND RECORDS MANAGEMENT AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4549-PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AWARDED TO VISIONAIR, INC. IN THE AMOUNT OF $198,545.26). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4549 VisionAir, Inc. $198,545.26 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 6-ORD-File 4549 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual service access and support for Enhanced Data rates for GSM Evolution (EDGE) and 3G (third- generation) wireless computer network for the Public Safety mobile computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; providing the expenditure of funds therefor; and providing an effective date (File 4550-Purchase of Annual Service Access and Support for Enhanced Data rates for GSM Evolution (EDGE), and 3G (Third-Generation) awarded to AT&T Mobility in the amount of $93,060.72). FILE INFORMATION The City of Denton uses the AT&T Mobility EDGE/3G Network to provide Public Safety Mobile Data Computer wireless access to the City computer network thereby affording direct access to the Public Safety Dispatching, Mapping, and Records System utilized by the Police and Fire Departments by providing real-time access to information for both departments. It is essential for the City of Denton to upkeep the current wireless connectivity with the established vendor to assure there is no break in service or support. AT&T Mobility is the sole-source vendor for EDGE/3G wireless connectivity in the Denton area. No other Denton area wireless access vendor offers signal coverage to the extent required by Public Safety. AT&T Mobility is the only wireless access vendor to offer Fixed Internet Protocol addressing which further enhances data security. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDATION Award to AT&T Mobility in the amount of $93,060.72. PRINCIPAL PLACE OF BUSINESS AT&T Mobility Hurst, TX Agenda Information Sheet September 21, 2010 Page 2 ESTIMATED SCHEDULE OF PROJECT Monthly access is being paid from October 1, 2010 through September 30, 2011. FISCAL INFORMATION Funding for this item is budgeted in the FY 2010-11 Technology Services operating budget account 830700.7944. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4550 Exhibit 1 at&t To: City of Denton Attn: Tiffany Wei From: Richard Carbajal Government Account Executive AT&T Mobility Fort Worth, TX 76102 817-304-7958 Monthly Recurring Charge: Account # 994860867 $60.00 per line less $8.66 credit - $15.60 discount = $37.99 per line $37.99 x 156 = $5,926.44 $9.99 per line less $2.60 discount = $739 per line $739 x 24 = $17736 Monthly Recurring Charge: Account # 870585087 (Frame) $1599.00 per month less 26% discount $1,183.26 = net cost for T 1 Frame Each IP = $3.00 per IP per month $3.00 x 156 IP addresses = $468.00 per month Grand Total of Services: $7,755.06/month with T1 Frame. AT&T Mobility is providing service to the City of Denton under the Cellular Voice and Data Access Services Contract, Contract No. DIR-SDD-597. This agreement is expected to be renewed for subsequent terms beginning October, 2010. The City of Denton is able to automatically renew their participation in this agreement unless prices increase more than 15% in one year. Thanks Richard Carbaj al Confidential - 1 - August 2010 Exhibit 2 at&t October 1, 2010 through September 30, 2011 AT&T Mobility is the sole source provider of wireless internet access compatible with the hardware utilized by the City of Denton. The agreement is expected to be renewed for subsequent terms beginning in October 2010. Richard Carbaj al AT&T Mobility Government Account Executive 817-304-7958 richard.carba'al t ,att.com Confidential - 1 - August 2009 a 0 N zo O O O O N O ~ N N O O ~ O O N O O O d) d) ~ O r O O N r O d) O O O N d) N O O O O N d) ~ N ~ O V O O N O O ~ ~ V O M O O N ~ N V O) M O O O O N O N N O O O O O O N O d) O O O O ~ O O N ~ N 16 N 6 U ~ 06 Q O (6 N N U (6 ~ d 0 - c 0 p N O U 0 N ~ N O ~ N U d OE J (6 ~ ~ U N U ~ ~ U 3 a U d ° a1 ° -o m 0 d 0 m m m U ° ~ m a U m - ~ C7 E u1 U N D (n N 2 O d Y O > N d D a O N c 0 U 0 E -o o Y Z ~ L O ( L U O -O O N Y ~ O D 0 O z U N E > o f mo U o -o ~ -p m .Q 'Z .Y c) C T T N O p U O U w U) N O _ (6 (6 (6 U ~ T ~ O O H N LL LL d N N 01 .0 t O c U N O N E w 0 6 N N U N D O 6 O E H Y w p N U m d' N N U O (7 Q E _O Q LL O w N O U O CO N U J U U O a d U A N N N Y 'O LL N C ~ -O (6 > > O U_ Y N O 0 O p O U ~ d 2 Z 2 0 06 m M L E Q LU H m u ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR ENHANCED DATA RATES FOR GSM EVOLUTION (EDGE) AND 3G (THIRD-GENERATION) WIRELESS COMPUTER NETWORK FOR THE PUBLIC SAFETY MOBILE COMPUTERS USED BY CITY OF DENTON POLICE, FIRE AND EMS PERSONNEL AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING THE EXPENDITURE OF FUNDS THERFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4550- PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR ENHANCED DATA RATES FOR GSM EVOLUTION (EDGE), AND 3G (THIRD-GENERATION) AWARDED TO AT&T MOBILITY IN THE AMOUNT OF $93,060.72). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4550 AT&T Mobility $93,060.72 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 5-ORD-File 4550 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates contained in Ordinance No. 2009-218 for electric service; incorporate Ordinance No. 2010-066 to amend energy cost adjustment (Schedule ECA); adding local government small rate (Schedule G2); amending local government rate (Schedule G1) to exclude customers with low demand; adding unmetered security camera rate (Schedule USC); amending non-standard street lighting rate (Schedule DSL) to include a facility charge; amending industrial development rider to raise minimum demand requirement and to change the name of the rider to economic growth rider (Schedule EGR); amending distributed generation from renewable sources rider (Schedule DGR) for clarity; amending independent wholesale generator rider (Schedule IWG) for clarity; amending renewable cost adjustment rider (Schedule RCA) for clarity; providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND There are no proposed Electric base rate changes. Two new rate schedules are being proposed. A new Local Government Small rate schedule (G2) applicable to the city, county and school district is proposed that will eliminate the requirement for a demand read and change. Monthly bills will be based on usage alone. One other new rate schedule (USC) is for unmetered security cameras to go on some security light poles. Some other minor changes are proposed that provide clarity to the existing rate schedules while remaining consistent with the original intent and the direction of DME. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB recommended approved (5-0) of the proposed FY 2011 Electric rate ordinance on July 26, 2010. FISCAL INFORMATION The rate revenue supports the FY 2011 Electric operating budgets and FY 2011-2015 CIPs. EXHIBIT 1. FY 2011 Electric rate ordinance Respectfully submitted, Howard Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 2009-218 FOR ELECTRIC SERVICE; INCORPORATE ORDINANCE NO. 2010-066 TO AMEND ENERGY COST ADJUSTMENT (SCHEDULE ECA); ADDING LOCAL GOVERNMENT SMALL RATE (SCHEDULE G2); AMENDING LOCAL GOVERNMENT RATE (SCHEDULE G1) TO EXCLUDE CUSTOMERS WITH LOW DEMAND; ADDING UNMETERED SECURITY CAMERA RATE (SCHEDULE USC); AMENDING NON-STANDARD STREET LIGHTING RATE (SCHEDULE DSL) TO INCLUDE A FACILITY CHARGE; AMENDING INDUSTRIAL DEVELOPMENT RIDER TO RAISE MINIMUM DEMAND REQUIREMENT AND TO CHANGE THE NAME OF THE RIDER TO ECONOMIC GROWTH RIDER (SCHEDULE EGR); AMENDING DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (SCHEDULE DGR) FOR CLARITY; AMENDING INDEPENDENT WHOLESALE GENERATOR RIDER (SCHEDULE IWG) FOR CLARITY; AMENDING RENEWABLE COST ADJUSTMENT RIDER (SCHEDULE RCA) FOR CLARITY; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: ELECTRIC RATE SCHEDULES PAGE RES Residential Service 3 RG Residential Renewable Energy Service 5 GSS General Service Small 7 GSM General Service Medium 9 GSL General Service Large 11 TGS General Service Time of Use 13 G2 Local Government Small 16 GI Local Government 18 WK Weekend Service 20 AF Athletic Field 22 LS Street Lighting 24 LT Traffic Lighting 25 UFL Unmetered School Zone/Crossing Flashers 26 ULT Unmetered Traffic Lighting 27 USC Unmetered Security Camera 28 LO Other Lighting 29 DD Security Lighting 31 DDL Decorative Downtown Lighting 33 DSL Non Standard Street Lighting 34 T1 Temporary Service 36 EGR Economic Growth Rider 38 GRP GreenSense Energy Efficiency Rebate Program 40 1 UPS Uninterruptible Power Supply ECA Energy Cost Adjustment RCA Renewable Cost Adjustment DGR Distributed Generation From Renewable Sources Rider IWG Independent Wholesale Generator Rider CGR Commercial Renewable Energy Service Rider SFR Special Facilities Rider DFR Dark Fiber Rate 41 42 44 46 48 51 53 54 SCHEDULE RES RESIDENTIAL SERVICE (Effective 10/01/10) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of November through April May through October (1) Facility Charge Single-Phase $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/1,,Wh Additional kWh 3.79¢/kWh All kWh 5.70¢/1,,Wh plus; (3) Energy Cost Adjustment Charge See Schedule ECA See Schedule ECA MINE UM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge 3 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 4 SCHEDULE RG RESIDENTIAL RENEWABLE ENERGY SERVICE (Effective 10/01/10) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE WINTER Billing Months of November through April plus; SUMMER Billing Months of May through October (1) Facility Charge $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill (2) Energy Charge per billing period First 600 kWh 5.70¢/1,,Wh All Additional kWh 3.79¢/kWh All kWh 5.70¢/1,,Wh plus; (3) Renewable Cost Adjustment Charge See Schedule RCA See Schedule RCA TFR N4 Customers wishing to receive Renewable Energy Service must sign a Residential Renewable Energy Agreement and commit to accept this service for a minimum term of 6 months. At the end of each 6 month period, a customer's Renewable Energy Service will be extended for another 6 month period unless that customer provides a written request to terminate that service to the City of Denton Customer Service Department 15 days prior to the end of the then-current 6-month participation period. 5 MINMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 6 SCHEDULE GSS GENERAL SERVICE SMALL (Effective 10/01/10) APPLICATION The General Service Small (GSS) rate is applicable to any commercial or industrial customer having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month is equal to or exceeds 21.0 kW, billing will be made under the Rate Schedule GSM and Customer must remain on the GSM rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase plus; $15.80/bill $21.10/bill (2) Energy Charge per billing period First 2,500 kWh Additional kWh 7.02¢/kWh 3.67¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block 7 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A VMF.NT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. SCHEDULE GSM GENERAL SERVICE MEDIUM (Effective 10/01/10) APPLICATION The General Service Medium (GSM) rate is applicable to any commercial or industrial customer having a maximum demand that meets or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $4.00/kW (all kW) plus; (3) Energy Charge per billing period First 6,000 kWh 4.4 /kWh Additional kWh 3.66¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMLT I BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 9 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of (1) the actual monthly kW demand as measured during the fifteen (15) minute period of maximum use each month; or (2) seventy percent (70%) of the maximum monthly actual demand for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GM1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GM2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GM3) shall receive a Energy Charge discount of 03¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A YMRNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 10 SCHEDULE GSL GENERAL SERVICE LARGE (Effective 10/01/10) APPLICATION The General Service Large (GSL) Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge $65.55/bill plus; (2) Demand Charge $9.33INA (Minimum of 250 kVA billed) plus; (3) Energy Charge per billing period First 200,000 kWh Additional kWh 2.14¢/kWh 1.21 0/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMLT I BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 11 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of (1) the actual monthly INA demand as measured during the fifteen (15) minute period of maximum use each month; or (2) 250 INA; or (3) seventy percent (70%) of the maximum monthly INA actual demand for any month during the previous billing months of May through October in the twelve (12) month period ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GL1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GL2) shall receive an Energy Charge discount of 0.1 0/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GL3) shall receive an Energy Charge discount of 03¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A YMRNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 12 SCHEDULE TGS GENERAL SERVICE THE OF USE (Effective 10/01/10) APPLICATION Applicable to any customer having a minimum demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge $76.45/bill plus; (2) On-Peak Demand Charge $11.873,VA plus; (3) Off-Peak Demand Charge $234/kVA plus; (4) Energy Charge per billing period 0.71¢/kWh plus; (5) Energy Cost Adjustment Charge See Schedule ECA MINfMLT I BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Off-Peak Demand Charge, plus; (3) The On-Peak Demand Charge 13 DEFINITION OF ON-PEAK HOURS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September excluding Independence Day and Labor Day. The City's on-peak hours may be changed from time to time. DEFINITION OF OFF-PEAK HOURS The City's system (off-peak) hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. DETERMINATION OF ON-PEAK DEMAND The demand used in calculating the On-Peak Demand Charge for the billing period shall be the greater of. (1) the INA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-peak hours as recorded by the City's demand meter, or (2) one hundred percent (100%) of the actual maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. The On Peak Demand Charge will be applied to each billing period. DETERMINATION OF OFF-PEAK DEMAND The demand used in calculating the Off-Peak Demand Charge for the billing period shall be the actual INA demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The Off-Peak Demand Charge will be applied to each billing period. DETERMINATION OF DEMAND BILLING FOR CUSTOMERS WITH NO PEAK DEMAND HISTORY DURING OFF-PEAK MONTHS If the Customer is new or does not have a history of on-peak use for June through September, and elects to accept service on the TGS rate, the Customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (TGl) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (TG2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (TG3) shall receive an Energy Charge discount of 03¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. 14 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 15 SCHEDULE G2 LOCAL GOVERNMENT SERVICE SMALL (Effective 10/01/10) APPLICATION Applicable to any local City, County or School District having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month equals or exceeds 21.0 kW, billing will be made under the Rate Schedule GI and Customer must remain on the GI rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase plus; (2) Energy Charge plus; (3) Energy Cost Adjustment Charge MINIMUM BILLING $15.80/bill $21.10/bill 6.45¢/kWh See Schedule ECA For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate 16 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A YMF.NT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 17 SCHEDULE GI LOCAL GOVERNMENT SERVICE (Effective 10/01/10) APPLICATION The Local Government Service (GI) rate is applicable to any local City, County, or School District having a maximum demand that equals or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $6.81/kW plus; (3) Energy Charge 3.15¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, plus; (2) Demand Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual kW demand supplied during the fifteen (15) minute period of maximum use during the current month as determined by City's demand meter; or (2) not less than 50% of the highest monthly actual demand determined during the billing months of May through October in 18 the twelve (12) months immediately preceding the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 19 SCHEDULE WK WEEKEND SERVICE (Effective 10/01/10) APPLICATION Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase plus; (2) Demand Charge plus; $20.86/bill $26.08/bill $6.723M (First 20 kW not billed) (3) Energy Charge per billing period First 2,500 kWh Next 3,500 kWh Additional kWh 7.02¢/kWh 3.67¢/kWh 2.70¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINMUM BILLING (1) Facility Charge plus; (2) Demand Charge 20 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of (1) the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter less 20 kW; or (2) zero (0). ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 21 SCHEDULE AF ATHLETIC FIELD (Effective 10/01/10) APPLICATION Applicable to all electric service metered at one point for use to light specified areas for athletic events. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $21.07/bill Three-Phase $31.60/bill plus; (2) Energy Charge per billing period Billing months of June through September: Peak (2:00 PM to 7:00 PM) 7.96¢/1,,Wh Off Peak (All Other Hours) 3.98¢/kWh Billing months of October through May: All hours 3.98¢/kWh plus; (3) Demand Charge Billing months of June through September: Peak (2:00 PM - 7:00 PM) $4.943,W Off Peak (All Other Hours) $1.17/kW Billing months of October through May: All hours $1.173,W plus; (4) Energy Cost Adjustment Charge See Schedule ECA 22 MINMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block x Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase or three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 23 SCHEDULE LS STREET LIGHTING (Effective 10/01/10) APPLICATION Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type LSA 100 W Sodium Vapor LSB 250 W Sodium Vapor LSC 400 W Sodium Vapor plus; (2) Energy Cost Adjustment Charge Rate Bulb Wattage Factor LSA LSB LSC 100 W Sodium Vapor 250 W Sodium Vapor 400 W Sodium Vapor TYPE OF SERVICE Facility Charge $5.15/bill $7.30/bill $9.19/bill (Current ECA per Schedule ECA) x (Bulb Wattage Factor where the following Bulb Wattage Factors apply); Luminaire Type 48 kWh 105 kWh 159 kWh The City will supply single-phase, sixty (60) cycle service at 120, 240, or 480 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 24 SCHEDULE LT TRAFFIC LIGHTING (Effective 10/01/10) APPLICATION Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHLY RATE (1) Energy Charge per billing period 5.62¢/1,,Wh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A VATPNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 25 SCHEDULE UFL UNMETERED SCHOOL ZONE/CROSSING FLASHERS (Effective 10/01/10) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered school zone/crossing flashers. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of school zone/crossing flashers will determine the average kWh usage. This average consumption will be billed for each school zone/crossing flasher once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh x kWh Rate Annual Usage = 48 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 26 SCHEDULE ULT UNMETERED TRAFFIC LIGHTING (Effective 10/01/10) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered traffic signals. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/1,,Wh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of lighted intersections will determine the average kWh usage. This average consumption will be billed for each lighted intersection once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh x kWh Rate Annual Usage = 904 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A VA/FFNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 27 SCHEDULE USC UNMETERED SECURITY CAMERA (Effective 10/01/10) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered security cameras. NET ANNUAL RATE (1) Facility Charge $15.80 plus; (2) Energy Charge 5.62¢/1,,Wh plus; (4) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on technical information of installed equipment. This calculated consumption will be billed for each camera once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = annual kWh per camera x kWh Rate Annual Usage = 300 kWh per camera per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 28 SCHEDULE LO OTHER LIGHTING (Effective 10/01/10) APPLICATION Applicable to Texas Department of Transportation unmetered and metered safety lighting systems and continuous lighting systems as those terms are defined in Texas Administrative Code, Title 43, Part 1, Chapter 25, Subchapter A, Rule §25.11. DEFIMTION The following definitions apply to this Schedule LO: Hours of Operation Per Billing Period = 333 hours Bulb Wattage is the rated wattage of the luminaire bulb NET MONTHLY RATE LOA (Umnetered Lighting) (1) Energy Charge per billing period plus; (2) Energy Cost Adjustment Charge ENERGY CHARGE LOA (Umnetered Li ham) 5.62 ¢/kWh (Current ECA per Schedule ECA) x (Bulb Wattage/1000) x (Hours of Operation Per Billing Period) Billing for the Energy Charge shall be based on estimated kWh consumption during the billing period. Energy Charge = (kWh Rate x Bulb Wattage/1000) x (Hours of Operation Per Billing Period) NET MONTHLY RATE LOB (Metered Li ham) (1) Energy Charge per billing period plus; (2) Energy Cost Adjustment Charge 5.62¢/kWh See Schedule ECA 29 ENERGY CHARGE LOB (Metered Lighting) Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A VA/FFNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 30 SCHEDULE DD SECURITY LIGHTING (Effective 10/01/10) APPLICATION Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type DSA 100 W Sodium Vapor DSB 250 W Sodium Vapor DSC 400 W Sodium Vapor DHA 250 W Metal Halide DHB 400 W Metal Halide plus; (2) Energy Cost Adjustment Charge Facility Charge $ 8.14/bill $10.76/bill $12.97/bill $12.65/bill $15.07/bill (Current ECA per Schedule ECA) x (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DSA DSB DSC DHA DHB TYPE OF SERVICE 100 W Sodium Vapor 250 W Sodium Vapor 400 W Sodium Vapor 250 W Metal Halide 400 W Metal Halide 48 kWh 105 kWh 159 kWh 105 kWh 159 kWh The City shall furnish, install, maintain and deliver electric service to automatically controlled, metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published riles and regulations. Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) wood pole with the necessary lighting hardware and overhead conductor for each installed light, at a distance not to exceed eighty (80') feet from existing lines, at no charge to the Customer. Additional contractual arrangements between the City and the customer, 31 subject to the Special Facilities Rider, may be required where the eighty (80') feet distance limit is exceeded or service of the type desired by the Customer is otherwise not available at the point of service. TERM OF CONTRACT A two (2) year contract shall be agreed to and signed by each Customer desiring Security Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the Customer's monthly municipal utilities bill. In the event that a Customer requests the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be canceled by either party upon thirty (30) days notice. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 32 SCHEDULE DDL DOWNTOWN DECORATIVE LIGHTING (Effective 10/01/10) APPLICATION Applicable to any Customer requesting service on the perimeter of the historic County Courthouse Square located in downtown Denton and served by the City's existing electric distribution system for outdoor area lighting at said location. NET MONTHLY RATE (1) Facility Charge $4.04/bill plus; (2) Energy Cost Adjustment (Current ECA per Schedule ECA) x (350 kWh per Customer) TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City's standards and subject to its published rules and regulations. The service is provided between dusk and midnight. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. P A VA/FFNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. FACILITY CHARGE The Facility Charge shall be assessed on each bill rendered. 33 SCHEDULE DSL NON-STANDARD STREET LIGHTING (Effective 10/01/10) APPLICATION Applicable to street lighting owned and maintained by the Customer. Availability of this service is contingent on the existence of an executed Special Facilities Rider between the legally responsible parry and the City under which the legally responsible party accepts all responsibilities, both legal and financial, related to operation and maintenance of the subject lights, including but not limited to payment of all applicable energy charges. NET MONTHLY RATE (1) Facility Charge $8.14/bill plus; (2) Energy Charge 5.62¢/1,,Wh Energy Charge = (kWh Rate) x (Bulb Wattage Factor) plus; (3) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DLSA 100 W Sodium Vapor 48 kWh DLSB 250 W Sodium Vapor 105 kWh DLSC 400 W Sodium Vapor 159 kWh DLHA 250 W Metal Halide 105 kWh DLHB 400 W Metal Halide 159 kWh Other - For any lamp types installed by owner that are not included in the list above, a Bulb Wattage Factor will be determined for each unique type. TYPE OF SERVICE The City shall deliver single-phase, sixty (60) cycle service at 120 or 240 volts to the site for non- standard streetlight fixtures supplied by the customer, and installed by the City in accordance with Municipal Code requirements. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. 34 ADDITIONAL SERVICE CHARGES If the City is required to maintain the privately owned lights to ensure public safety, the owner of the lights may be subject to additional service charges. The additional service charges shall be the actual cost of performing any work required to perform the necessary maintenance including but not limited to: Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Any material needed to repair and/or maintain facilities will be billed at City of Denton Warehouse cost plus 25%. Administrative Fee 10% of the total labor, transportation, and material costs. PAVMRNT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 35 SCHEDULE TI TEMPORARY SERVICE (Effective 10/01/10) APPLICATION Applicable when a Customer requests electric service on a short term or temporary basis where a customer has received a permit from the City Building Inspections Department. This rate is not applicable after the certificate of occupancy or building final inspection has been issued. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase plus; (2) plus; (3) MINfMLTM BILLING Energy Charge per billing period Energy Cost Adjustment Charge $15.80/bill $21.10/bill 7.11 0/kWh See Schedule ECA For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase service at sixty (60) cycles at a standard secondary voltage available at the site. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. 36 ADDITIONAL TEMPORARY SERVICE CHARGES Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Material that cannot be salvaged shall be billed at City of Denton Warehouse cost plus 25%, plus applicable sales tax. At the time a temporary service is removed or converted, any loss of the installed material due to negligence or willful action by the Customer will be billed separately to the Customer at replacement cost plus 25%, plus applicable sales tax. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 37 SCHEDULE EGR ECONOMIC GROWTH RIDER (Effective 10/01/10) PT TR pn CF The purpose of this rider is to facilitate local economic growth and expand the ad valorem tax base of the City of Denton. AVAILABILITY This rider is available to the Customers who: (1) Receive service from Rate Schedules GSL or TGS; and (2) Pay City of Denton ad valorem tax; and (3) Receive no electric service discounts other than those specifically defined in the GSL or TGS rate schedules. APPLICATION This rider is available to electric service supplied at any one location. It is for firm electric service applicable to new and existing Customers as described below, over a five (5) year period. This rider is available to the following classes of Customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 1,000 kVA, as estimated and mutually agreed upon by the DME General Manager and the customer. (2) Existing customers served under Rate Schedules GSL or TGS who increase their prior existing metered demand by 1,000kVA. This increase shall be verified by sub- metering (at the Customers expense) the additional load. If sub-metering is not possible, at the discretion of the General Manager, the increase may be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the General Manager and the Customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. 38 NET MONTHLY RATE The Customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period First Year Second Year Third Year Fourth Year Fifth Year Reduction to Billing Demand 50% 40% 30% 20% 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 39 SCHEDULE GRP GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (Effective 10/01/10) PROGRAM SUMMARY The objective of the GreenSense Energy Efficiency Rebate Program ("Program") is to reduce energy demand and consumption by promoting energy conservation, thereby reducing the utility bills of Denton Municipal Electric (DME) customers, reducing the peak load of the DME's electric system, reducing emissions in the state, and promoting energy conservation. The Program offers incentives, in the form of rebates on the electric service bills of DME retail customers and cash incentives to builders. Cash incentives may be paid to residential retail customers for the installation of photovoltaic applications. Program applicants will be able to qualify for multiple incentives simultaneously. A separate application may be necessary for each incentive. The Program will be in effect each fiscal year beginning on October 1, until the allotted funding is depleted or until cancellation of the program by DME. At the time the funds are depleted, no additional applications for participation will be accepted until the next fiscal year. Qualifying applicants must receive electric service from DME and must be a customer in good standing. The Program guidelines and payments are subject to change by DME without prior notice. DME may, at any time, discontinue the Program without prior notice. The current program guidelines may be found in the GreenSense Energy Efficiency Rebate Program Manual located at www.dmepower.com. 40 SCHEDULE UPS UNINTERRUPTIBLE POWER SUPPLY (Effective 10/01/10) APPLICATION Applicable to any Customer who, by written agreement, receives service for an uninterruptible power supply for a computer or other electrical equipment. Uninterruptible Power Supplies provided under this Schedule UPS are of the standby type. NET MONTHLY RATE (1) Facility Charge: 0-300 Watts Uninterruptible Power Supply $ 7.80/bill 301-700 Watts Uninterruptible Power Supply $14.90/bill 701-1,200 Watts Uninterruptible Power Supply $31.85/bill plus; (2) Installation Charge $25.75 For any Uninterruptible Power Supply other than the sizes specified above, the monthly Customer Charge will be based on the following formula: (1) Monthly Charge: 5% of Annual Maintenance Cost 12 months plus; 6% Annual Return of Investment 12 months plus; 8% Interest on a Five (5) Year Life TYPE OF SERVICE The City shall furnish, install, maintain an automatically controlled alternating current power backup unit conforming to the City's standards and subject to its published rules and regulations. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 41 SCHEDULE ECA ENERGY COST ADJUSTMENT (Effective 10/01/10) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA's energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: ECA Balancing Account = (Actual plus Projected ECA revenue) - (Projected Energy Cost) Where: Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) +(Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA = [(Projected Energy Cost) + (ECA Balancing Account)]/(Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Energy Cost Adjustment Charge = kWh x ECA rate 42 EXTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position. 43 SCHEDULE RCA RENEWABLE COST ADJUSTMENT (Effective 10/01/10) The Renewable Cost Adjustment (RCA) rate shall be set by the Public Utilities Board. The RCA rate shall be reviewed on a quarterly basis and adjusted as defined below to recover the cost of renewable energy delivered to customers. Renewable energy cost includes the Energy Cost Adjustment Charge (see Schedule ECA) plus the cost of Renewable Energy Credits (REC) purchased. RENEWABLE COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The RCA Balancing Account shall be calculated using the following formula: RCA Balancing Account = (Actual plus Projected RCA revenue) - (Projected Renewable Energy Cost) Where: Projected Renewable Energy Cost = (Actual plus Projected cumulative ECA cost) + (Actual plus Projected REC cost) During the last month of each fiscal year quarter (December, March, June, and September),the DME General Manager or his/her designee shall calculate the RCA Balancing Account balance. In the event that the RCA Balancing Account balance calculated during the last month of each fiscal quarter is greater than zero dollars ($0) by $100,000 or more during the next quarter, the General Manager or his/her designee shall recommend to the Public Utilities Board an RCA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The Public Utilities Board shall consider that recommendation and may adjust the RCA rate for the quarter immediately following. RENEWABLE COST ADJUSTMENT CALCULATION RCA = ECA + [(Projected Renewable Energy Cost)/(Projected kWh sales)] Where: Projected Renewable Energy Cost = Actual + Projected REC cost RENEWABLE COST ADJUSTMENT CHARGE The Renewable Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Renewable Cost Adjustment Charge = kWh x RCA rate 44 EXTRAORDINARY CIRCUMSTANCE RCA RATE ADJUSTMENT In the event that an Extraordinary Circumstance ECA Rate Adjustment is made (see Schedule ECA) the RCA shall be adjusted concurrently with the Extraordinary Circumstance ECA Rate Adjustment by substituting the new ECA rate in the Renewable Cost Adjustment Calculation formula above. 45 SCHEDULE DGR DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (Effective 10/01/10) APPLICATION This Rider is available to any retail customer receiving electric service under a DME electric rate schedule who owns and operates an on-site generating system powered by a renewable resource capable of producing power, and who interconnects with the DME electric system. Renewable energy technology is any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly or indirectly from the sun or wind. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources. This Rider applies to a Customer-owned generating system that primarily offsets part or all of the Customer's electric service provided by DME. If the Customer-owned generating system larger than 50kW or if the system's primary purpose is to sell energy to the grid and not offset the Customer's consumption, special arrangements and contract may be necessary. CONDITIONS OF SERVICE All charges, character of service, and terms and conditions of the electric rate schedule under which the Customer receives service shall apply except as expressly altered by this Rider. The Customer shall comply with the current DME technical requirements for distributed generation interconnection. The Customer shall obtain approval from DME before the Customer energizes the customer's on-site generating system or interconnects it with the DME electric system. The Customer shall submit to DME a completed interconnection application form and signed Standard Agreement for Interconnection and Parallel Operation of Distributed Generation Agreement. The minimum term of an Agreement under this Rider is one year, extended automatically unless terminated by either party with sixty days advance written notice The Customer is responsible for the costs of interconnecting with the DME electric system, including transformers, service lines, or other equipment determined necessary by DME for safe installation and operation of the Customer's equipment with the City's system. The Customer is responsible for any costs associated with required inspections and permits. METERING Metering under this Rider shall be performed by a single meter capable of registering the flow of electricity in two directions (delivered and received) to determine the Customer's net energy flow. 46 RATE Beginning in a billing period after a Customer receives approval to interconnect the Customer's on-site generating system from the City of Denton, all energy generated by the Customer's system and delivered to the DME electric system will be considered renewable energy. The Customer shall be billed for all energy delivered by DME to the Customer under the approved residential rates. For any generation delivered by the Customer's system to the DME system up to the amount of energy delivered by DME to the Customer, the City shall credit the Customer's account for the energy generated as follows: Generation Credit = [(kWh delivered from the Customer's approved system) x (Customer's base electric service rate)] + [(kWh delivered from the Customer's approved system) x (RCA rate)] For all energy delivered by the Customer's system to the DME system that exceeds the amount of energy delivered by DME to the Customer, the City shall credit the Customer's account for the energy generated as follows: Excess Generation Credit = (kWh delivered from the Customer's system) x RCA rate (see Schedule RCA). Any Billing Period Credit shall be applied to the utility charges due from the Customer to the City of Denton for the billing period. INDEMNIFICATION The Customer operating the renewable distributed generation system indemnifies DME and holds DME harmless for all damages and injuries to DME, the Customer, or others arising out of Customer's use, ownership or operation of Customer's distributed generation facilities in parallel with DME's system. Customer is solely responsible for providing adequate protection for operating in parallel with DME's system in such a manner that faults or other disturbances on the DME system do not cause damage to the Customer's distributed generation equipment. 47 SCHEDULE IWG INDEPENDENT WHOLESALE GENERATOR (Effective 10/l/10) APPLICATION The Independent Wholesale Generator (IWG) rate is applicable to non-renewable generating installations of ten (10) MW or less interconnected to and operating in parallel with DME's distribution system, for the sole purpose of delivering the net output (gross output minus auxiliary load and step up transformer loses) of said generating installation to the Electric Reliability Council of Texas (ERGOT) transmission grid for sale in the ERCOT wholesale power market. DME will interconnect the IWG pursuant to the terms of the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. Other services or special requirements for interconnection of a specific generating facility not included in the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, requested by the IWG Customer, or required by DME may be provided pursuant to negotiation and agreement by both the IWG Customer and DME. The provision of said additional services or requirements shall be recorded in the form of an addendum to the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. TERMS AND CONDITIONS OF SERVICE At a minimum, the IWG Customer shall comply with the current DME technical requirements for independent wholesale generation interconnection specified in the DME standard Agreement for Interconnection and Parallel Operation of Distributed Generation. The IWG Customer may not begin constriction of its facilities until an Agreement for Interconnection and Parallel Operation of Distributed Generation has been signed by both the IWG Customer and the City of Denton. The IWG Customer shall obtain approval from DME before the IWG Customer begins operation of its generating system or interconnects it with the DME electric system. The IWG Customer is responsible for any costs associated with required City of Denton and/or DME inspections and permits. PRE-INTERCONNECTION STUDIES DME may, at its sole discretion perform pre-interconnection studies DME or the City of Denton deems appropriate, which may include, but are not restricted to, a service study, coordination study, emissions impact study, and utility system impact study. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular IWG generation system to be interconnected, DME's distribution system at the specified proposed location(s), and environmental characteristics of the Denton County area. Such studies will also determine whether the electric interconnection can be made consistent with safe and reliable operation of DME's distribution system. The cost of such analysis will be the responsibility of the IWG Customer. A cost estimate will be provided and agreed to by the IWG Customer prior to DME or the City performing the studies. 48 SYSTEM MODIFICATIONS The IWG Customer will be required to install, operate, and maintain in good order and repair, and without cost to DME, all facilities required by DME for the safe operation of the IWG system in parallel with DME's electric system. The IWG Customer's IWG system shall be installed, operated, and maintained by the IWG Customer at all times in conformity with good electrical practice and shall comply with the National Electric Code, the National Electric Safety Code, any applicable local codes and any applicable DME service standards included in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation Any modifications or additions to DME's electrical system caused by the addition of the Customer's IWG system will be solely at the IWG Customer's expense. However, the IWG Customer will not acquire any ownership in these facilities. The modifications and additions may include, but are not restricted to, the upgrading of transformer insulation levels and lightening arrester ratings, the replacement of circuit breakers due to increased fault current levels, additional protective relaying and any additional metering. Further, DME may require that a communications channel(s) be installed at the IWG Customer's expense as part of the relay protection, remote control, remote metering, SCADA telemetry, and/or direct voice contact between DME and the IWG Customer. R A TF The IWG Customer shall be subject to special contract arrangements and the rates charges to the Customer may consist of a minimum monthly Facility Charge plus a monthly distribution charge plus a monthly distribution line loss charge. These charges shall be calculated as follows: Monthly Facility Charge: The IWG Customer shall pay DME a monthly facility charge sufficient to compensate DME for its investment in special facilities dedicated exclusively to providing the IWG Customer service and/or that are necessary to ensure that the quality of service provided to other customers is not adversely affected pursuant to the requirements of the SYSTEM MODIFICATION provisions set forth above. The minimum monthly facility charge shall be $65.55. Distribution Delivery Charge: The IWG Customer shall pay DME a monthly distribution delivery charge equal to $2.06 times the IWG Customer's delivery demand. The IWG Customer's delivery demand shall be the greatest of the IWG Customer's maximum 15 minute net capacity output as measured at the IWG Customer's IWG site, the minimum billing kW shall be as established in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, or 1,500 kW. 49 Distribution Line Loss Charge: The IWG Customer shall pay DME a monthly distribution line loss charge equal to the applicable monthly Energy Cost Adjustment (ECA) charge (see schedule ECA) times monthly energy losses. Monthly energy losses shall be calculated as the metered monthly kilowatt-hour output of the IWG Customer's IWG generating unit(s) as measured at the IWG Customer's IWG site times five (5.0) percent. Generator Auxiliary Load Standby Charge: The IWG Customer shall pay the DME General Service Large rate for any electric service used by the IWG Customer to serve generator auxiliary load as a result of demand and energy requirements placed upon DME resulting from planned or forced outage of the IWG Customer's IWG generation unit(s). Electric Service to Strictures and Other Facilities Other than Generator Auxiliary Load: All charges, character of service, and terms and conditions of the applicable City of Denton electric rate schedule(s) under which the IWG Customer receives DME electric service for strictures or other facilities not specifically supplying auxiliary service directly to its generating unit(s) shall apply except as expressly altered by this Rider. 50 SCHEDULE CGR COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (Effective 10/01/10) This Rider defines the manner by which commercial customers may purchase predetermined 1000 kWh blocks of energy or 100% of actual energy consumption from renewable resources by substituting the Renewable Cost Adjustment Charge (see Schedule RCA) in lieu of the Energy Cost Adjustment (see Schedule ECA) specified in their applicable rate Schedule. APPLICATION This Rider is applicable to any non-residential Customer receiving service under rate schedules GSS, GSM, GSL, G1, TGS, or WK at one point of delivery and measured through one meter. This Rider is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE A customer eligible for service under this Rider may elect to purchase renewable energy at the Renewable Cost Adjustment Charge, determined in accordance with Schedule RCA. Said customer may elect to purchase 1000 kWh blocks of energy at the RCA rate, with the remainder of the customer's energy use charged at the ECA rate or to purchase all energy used at the RCA rate. All other charges contained in the customer's applicable rate Schedule shall continue to apply, as specified in said Schedule. Said customer's energy charge shall be calculated as follows. Either: Total Energy Charge = [(Y x 1000 kWh) x RCA] + { [(Total Energy Used) - (Y x 1000 kWh)] x ECA} Where: Or: Customer has elected to purchase a portion of its energy consumption at the RCA and: Y= Number of 1000 kWh RCA blocks elected by said customer Total Energy Charge = Total Energy Used x RCA Where: Customer has elected to purchase its entire energy consumption at the RCA 51 TERMS OF SERVICE To exercise the energy supply choice made available by this Rider, an eligible customer must enter into a separate written agreement with Denton Municipal Electric that specifies either a specific number of 1000 kWh energy blocks to be purchased at the Renewable Cost Adjustment Charge or specifies that 100% of said customer's monthly energy consumption is to be purchased at the Renewable Cost Adjustment Charge. The minimum term for a Schedule CGR agreement shall be 6 months. This Rider replaces the Energy Cost Adjustment Charge for participating customers. 52 SCHEDULE SFR SPECIAL FACILITIES RIDER (Effective 10/01/10) (1) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices not normally and readily available at the location which the customer requests service, the total cost incurred by DME for all facilities installed, buried, relocated and/or removed shall be the responsibility of the Customer and subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to the DME providing service to the Customer. (2) Billing for services beyond the delivery of electricity, utilized by the Customer, may be subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to DME providing service to Customer. 53 SCHEDULE DFR DARK FIBER (Effective 10/01/10) APPLICATION Service is available to any customer to the extent there is any excess capacity respecting Denton Municipal Electric's fiber optic cable facilities, within the area served by Denton Municipal Electric's ("DME") distribution system, for the purpose of point-to-point dark fiber optic cable connectivity intended for the transport of high-speed data. MONTHLY RATE (1) Fiber Mileage Charge $400 per fiber pair/mile, per month; and (2) Building Presence Charge $180 per location, per month Total Fiber Rate $580 per fiber pair/mile, per month, per location RATE GUIDELINES (1) The minimum quantity of fiber to be leased shall be one (1) fiber pair. All fiber pairs furnished to the customer shall consist of two (2) fibers. (2) The minimum Fiber Mileage Charge is for one (1) fiber pair/mile. (3) After the first mile, Fiber Mileage Charge will be charged in increments of the nearest one-tenth (0.1) mile. (4) All costs associated with ingress to a customer's location from the DME right-of-way shall be billed directly to the customer, and are not included in the Fiber Mileage Charge and the Building Presence Charge and shall be paid to Denton Municipal Electric within fifteen (15) calendar days from the date of issuance of the bill. (5) The Fiber Mileage Charge calculation is based upon the actual fiber pair distance along the DME distribution system rights-of-way. The Fiber Mileage Charge is not based upon any other method of calculation. The Fiber Mileage Charge is not based upon any distance determination, such as the distance the crow flies, or from point-to- point. (6) The Fiber Mileage Charge distance shall be capped at two (2) times the direct point-to- point distance. DISCOUNTS Special discounts will be applied for fiber pairs to the same location, and for fiber pairs for long- term contracts in the amounts as shown in the table below. The discount applicable to a customer shall not be a cumulative total of all the discounts offered. The discount any customer is entitled to shall be the largest single discount applicable to that customer's service. 54 Discount Type Discount Discount Type Discount Term of Lease % Number of Fibers % 5-7 Years 30% 1-2 Fibers /Mileage Charge 0% 8-10 Years 45% 3-6 Fibers/ Mileage Charge 9.7% 7-12 Fibers/Mileage Charge 19% 12 or more Fibers/Mileage Charge 28.7% TYPE OF SERVICE The City shall furnish, install, maintain, and deliver only point-to-point dark fiber connectivity for the purpose of transporting high-speed data with a maximum loss of no more than 9.0 dB. P A YMRNT Bills are due when rendered and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF LEASE CONTRACT All dark fiber lease contracts shall be for a minimum term of five (5) years. 55 SECTION 2. That the Assistant City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedule GRP, as the installation of energy efficient is in the best interest of the City of Denton, Texas, as such will reduce energy demand and consumption, reduce the peak load of the DME's electric system, reduce emissions in the state, and promote energy conservation, which are public purposes of the City. SECTION 3. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 4. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 5. That this ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric effective with the first billing issued on and after October 1, 2010; and a copy of said rates shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the day of 12010. MARK BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 56 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of water rates contained in ordinance No. 2009-219 for water service rates and water rates; amending wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WCL); amending the fire hydrant meter deposit fee (Schedule WFH); providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND The proposed Water rate ordinance includes an across the board 9.0% rate increase for retail customers. Changes to the wholesale UTRWD raw water rate (WRW) and the wholesale UTRWD raw water pass-through rate (WCL) are based on existing contract provisions. The average Denton residential customer using 9,400 gallons per month would incur a $3.25 increase in the monthly water charge. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB recommended approved (5-0) of the proposed FY 2011 Water rate ordinance on July 26, 2010. FISCAL INFORMATION The rate revenue supports the FY 2011 Water operating budget and FY 2011-2015 CIP. EXHIBIT 1. FY 2011 Water rate ordinance Respectfully submitted, 7MMkHoward Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010- AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 2009-219 FOR WATER SERVICE RATES AND WATER RATES; AMENDING WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); AMENDING THE WHOLESALE RAW WATER PASS-THROUGH RATE TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE C14APMAN INTO LAKE LEWISVILLE (SCHEDULE WCL); AMENDING THE FIRE HYDRANT METER DEPOSIT FEE (SCHEDULE WFH); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES PAGE WR Residential Water Service 2 WC Commercial/Industrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 9 WW Wholesale Treated Water Service to Upper Trinity Regional Water District 10 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 12 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District 13 from Lake Chapman into Lake Lewisville Water Tap and Meter Fees 14 Fire Hydrant Installation 16 Water Laboratory Testing Fees 17 Special Facilities Rider 18 Special Conditions Rider 18 SCHEDULE WR RESIDENTIAL WATER SERVICE (Effective 10/01/10) APPLICATION Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units, with wastewater service within the corporate limits of the City of Denton, Texas. (WR) Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, Texas with or without wastewater service. (WRO) Applicable where the metered water is used for domestic purposes and is not returned to the wastewater system for collection and treatment. (WRN) Applicable where the metered water is used for landscape irrigation purposes and is not returned to the wastewater system for collection and treatment. (WRI) Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and treatment. (WRIO) Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHLY RATE (WR) - RESIDENTIAL WATER SERVICE, AND MONTHLY RATE (WRN) - METERED WATER NOT RETURNED TO WASTEWATER SYSTEM FOR COLLECTION AND TREATMENT (1) Facility Charge 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter (2) Volume Charge RATE BLOCK PER 30 DAYS WINTER Per Bill -$10.95 $14.30 $18.30 $20.90 Rate Per 1,000 Gallons Billing months of NOV. throuwh APRIL CT TN/IA/FFR Billing months of MAY throuwh OCT. 0-15,000 gals $3.00 $3.00 15,001-30,000 gals $3.00 $435 30,001-50,000 gals $3.00 $5.45 Over 50,000 gals $3.00 $6.55 2 MONTHLY RATES MONTHLY RATE (1) Facility Charge 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter - WATER SERVICE OUTSIDE CORPORATE LIMITS (2) Volume Charge RATE BLOCK PER 30 DAYS Per Bill $12.60 $16.45 $21.05 $24.05 Rate Per 1,000 Gallons Billing months NOV throuwh APRIL Billing months MAY throuwh OCT 0-15,000 gals $3.45 $3.45 15,001-30,000 gals $3.45 $5.00 30,001-50,000 gals $3.45 $6.30 Over 50,000 gals $3.45 $7.55 MONTHLY RATES (WRI) - METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4" Meter $10.95 1" Meter $14.30 1-1/2" Meter $18.30 2" Meter $20.90 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY throuwh OCT 0-15,000 gals $3.00 $435 15,001-30,000 gals $3.00 $5.45 30,000 - 50,000 gals $3.00 $6.55 Over 50,000 gals $3.00 $7.65 3 MONTHLY RATES (WRIO) - METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4" Meter $12.60 1" Meter $16.45 1-1/2" Meter $21.05 2" Meter $24.05 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUA4MER 0-15,000 gals 15,001-30,000 gals 30,000 - 50,000 gals Over 50,000 gals MINIMUM[ BILLING Facility Charge. Billing months Billing months NOV throuwh APRIL MAY throuwh OCT $3.45 $5.00 $3.45 $6.30 $3.45 $7.55 $3.45 $8.80 Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: Gallons in rate block x rate per 1,000 gal. in rate block 1,000 gallons 4 RETAIL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS - ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. Under Stage 4 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. 5 SCHEDULE WC COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (Effective 10/01/10) APPLICATION Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance, for all water provided at one point of delivery and measured through one meter. (WC) Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one point of delivery and measured through one meter, with or without wastewater service. (WCO) Applicable where the metered water is used for commercial purposes and is not returned to the wastewater system for collection and treatment. (WCN) Applicable where metered water is used for landscape irrigation purposes and is not returned to the wastewater system for collection and treatment. (WCI) Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and treatment. (WCIO) Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHLY RATE (WC) and (WCN) (1) Facility Charge 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter 3 " Meter 4" Meter 6" Meter 8" Meter 10" Meter Per Bill $20.05 $23.95 $28.40 $36.65 $76.70 $141.70 $177.00 $205.90 $247.55 (2) Volume Charge $335 per 1,000 gallons 6 MONTHLY RATE (WCO) - OUTSIDE CORPORATE LIMITS (1) Facility Charge Per Bill 3/4" Meter $23.05 1" Meter $27.55 1-1/2" Meter $32.65 2" Meter $42.15 Meter $88.20 4" Meter $162.95 6" Meter $203.55 8" Meter $236.80 10" Meter $284.70 (2) Volume Charge $3.85 per 1,000 gallons MONTHLY RATE (WCI) - IRRIGATION (1) Facility Charge 3/4" Meter 1" Meter 1-1/2" Meter 2" Meter 3 " Meter 4" Meter 6" Meter 8" Meter 10" Meter (2) Volume Charge MONTHLY RATE (WCIO) - IRRIGATION $23.95 $28.40 $36.65 $76.70 $141.70 $177.00 $205.90 $247.55 Rate Per 1,000 Gallons Billing months of NOV. throuwh APRIL Billing months of MAY throuwh OCT. $3.35 (1) Facility Charge Per Bill 3/4" Meter $23.05 1" Meter $27.55 1-1/2" Meter $32.65 2" Meter $42.15 Meter $88.20 4" Meter $162.95 6" Meter $203.55 8" Meter $236.80 10" Meter $284.70 7 $4.05 (2) Volume Charge MINIlVI M BILLING Facility Charge. PAYMENT Rate Per 1,000 Gallons WINTER Billing months of NOV. throuwh APRIL $3.85 SUMMER Billing months of MAY throuwh OCT. $4.65 Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption x Rate per 1,000 gallons 1,000 COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS - ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 8 SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 10/01/10) APPLICATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the "Fire Hydrant Meter Use Agreement." DEPOSIT $1,100 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. The deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $ 3.90 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the "Fire Hydrant Meter Use Agreement", failure by the Customer to return the meter to water utilities by the 3rd day of each month for reading, results in acceptance by the Customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $ 76.65 per bill PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS - ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 9 SCHEDULE WW WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/10) APPLICATION Applicable to all wholesale treated water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD). Not applicable for temporary, standby, or supplementary service. MONTHLY CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2/WW3) (1) Facility Charge (2) Water Volume Rate (WD2/WD3) (3) Subscribed Demand Rate $176.00 per bill $034 per 1,000 gallons $406,107.00 per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in frill, in accordance with the bill payment delinquency provisions provided for below. MINIMUM BILLING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for any one day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. 10 BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 11 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/10) APPLICATION Applicable to all raw water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD), per the Interim Sale of Wholesale Raw Water Contract. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $.4053 per 1,000 gallons PAYMENT Denton shall render bills by the tenth (loth) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 SCHEDULE WCL WHOLESALE RAW WATER PASS-THROUGH TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (Effective 10/01/10) APPLICATION Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.0237 per 1,000 gallons PAYMRNT Denton shall render bills monthly. Bills shall be due and payable within twenty (20) calendar days of the date a bill for service is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 13 WATER TAP AND METER FEES (Effective 10/01/10) APPLICATION This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Size of Tap and Meter Paved Street Unpaved Street 3/4 inch $1,600.00 $ 650.00 1 inch $1,700.00 $ 750.00 1 '/2 inch $2,200.00 $1,200.00 2 inch $2,500.00 $1,500.00 WATER METER FEES Size of Meter 3/4 inch $305.00 1 inch $375.00 1 '/2 inch $670.00 2 inch $680.00 WATER METER RELOCATIONS Size of Meter Relocation of 10 Feet or Less 3/4 inch $285.00 1 inch $285.00 1 '/2 inch $340.00 2 inch $390.00 WATERLINE TAPS Size of Tap Paved Street Unpaved Street 4 inch $2,900.00 $1,750.00 6 inch $3,100.00 $2,000.00 8 inch $4,100.00 $3,000.00 12 inch $5,100.00 $4,000.00 14 FEES FOR INSTALLATIONS NOT LISTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinlder systems. 15 FIRE HYDRANT INSTALLATION (Effective 10/01/10) APPLICATION This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDRANT INSTALLATION FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hydrant Installation Paved Street Unpaved Street Installation Fee $5,030.00 $3,085.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. 16 WATER LABORATORY TESTING FEES (Effective 10/01/10) APPLICATION Applicable to all customers and entities requesting testing and analysis services from the City of Denton Water/Wastewater Laboratory. R A TF Fee Description Fee Per Test Colilert (P/A) $20.00 Colilert (P/A) Quantitray $20.00 Total Coliform Analysis (MPN) $45.00 Heterotrophic Plate Counts (UPC) $25.00 Fecal Coliform (MF) $30.00 Records Search $25.00/hour The testing and analysis fees are established to recover the cost of testing water and wastewater samples. MINMUM BILLING $20.00 - Testing $25.00 - Records Search P A VA/FFNT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 17 SPECIAL FACILITIES RIDER (Effective 10/01/10) All service shall be offered from available facilities. If a Customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the Customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/10) If a special condition or circumstance exists not otherwise provided for by the water rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 18 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms of provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on and after October 1, 2010; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the day of 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 19 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration lklll- ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of wastewater rates contained in Ordinance No. 2009-220; providing for an amendment in the rates for dyno-dirt products (Schedule CWM); providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND There are no proposed changes to the Wastewater rates. A change to the dyno dirt rate schedule (CWM) changed the discount rate for city departments from 50% to 40%. There are no proposed changes to the Drainage fees. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB recommended approval (5-0) of the proposed FY 2011 Wastewater rate ordinance on July 26, 2010. FISCAL INFORMATION The rate revenue supports the FY 2011 Wastewater and Drainage operating budgets and FY 2011-2015 CIPs. EXHIBIT 1. FY 2011 Wastewater/Drainage rate ordinance Respectfully submitted, Howard Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010- AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 2009-220; PROVIDING FOR AN AMENDMENT IN THE RATES FOR DYNO-DIRT PRODUCTS (SCHEDULE CWM) PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WASTEWATER RATE SCHEDULES SR Residential Wastewater Service SMH Mobile Home Park Wastewater Service SC Commercial and Industrial Wastewater Service 3 6 9 SCD Commercial/Industrial Wastewater Service Which Measures With 12 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing SCS Commercial/Industrial Wastewater Service Which Measures With 14 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SCH Septage & Chemical Toilet Disposal at the Pecan Creek Water Reclamation 16 Plant Septage Transfer Station SEE Equipment Services Facilities and Restaurants & Food 17 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 20 SGE Sale of Treated Wastewater Effluent 22 SSC Wholesale Wastewater Treatment Service for a 24 Governmental Agency, Division or Subdivision CWM DYNO Dirt Products 26 GBL Grass, Brush, and Leaves 28 ST Wastewater Tap Fees 29 1 STE Treated Effluent Wastewater Tap Fees OSSF On-Site Sewage Facility Permit Fees 30 31 SD Storm Drainage Fees 32 Special Facilities Rider 34 Special Conditions Rider 34 SCHEDULE SR RESIDENTIAL WASTEWATER SERVICE (Effective 10/01/10) APPLICATION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton, Texas water service. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATES (SR) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $7.45/bill (2) Volume Charge $2.85/1,000 gallons effluent MONTHLY RATES (SRO) - OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $8.60/bill (2) Volume Charge $3.29/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of 6,500 gallons. MINfMLT I BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge. VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% x Rate per 1,000 gallons 1,000 3 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6,500 Gallons x 98% x Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. MONTHLY RATES Ol - WITHOUT CITY OF DENTON WATER SERVICE SR-N1 Inside Corporate Limits SR-NO Outside Corporate Limits (1) Facility Charge (2) Volume Charge $7.45/bill $2.85/1,000 gals $8.60/bill $3.29/1,000 gals The customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater. VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume x Rate per 1,000 gallons 1,000 Wastewater volumes will be capped at a maximum of 18,000 gallons/bill. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 4 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. SCHEDULE SMH MOBILE HOME PARK WASTEWATER SERVICE (Effective 10/01/10) APPLICATION Applicable for mobile home parks that are master water metered to provide residential wastewater service. Wastewater service is billed based on the Customer's winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (SMH) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $19.47/bill (2) Volume Charge $2.85/1,000 gallons effluent MONTHLY RATE (SMHO) - OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.62/bill (2) Volume Charge $3.29/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater Volume Charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. MINIlVI I BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge. 6 VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% x Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Established Billable Volume x Rate per 1,000 gallons x Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. MONTHLY RATE (SMNI/SMNO) - WITHOUT CITY OF DENTON WATER SERVICE SMNI Inside Corporate T ;mite (1) Facility Charge (2) Volume Charge $19.47/bill SMNO Outside Corporate T ;mite $21.62/bill $2.85/1,000 gals $3.29/1,000 gals The Customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater per mobile home. VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume x Rate per 1,000 gallons x Number of Mobile Homes 1,000 7 PAVMRNT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. SCHEDULE SC COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (Effective 10/01/10) REGULAR COMMERCIAL APPLICATION Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. MONTHLY RATE (S0 - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $19.47/bill (2) Volume Charge $3.70/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. Plus PRETREATMENT/PROGRAM CHARGES (As Applicable) (SCA) (A) Categorical Customer $400.00/bill (SCB) (B) Non-categorical Customer $ 50.00/bill SAMPLING AND ANALYSIS CHARGES (As applicable (A) Sampling charge (each) $42.00 (B) Analysis charge (per test) $21.00 MONTHLY RATE (SCO) - OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.62/bill (2) Volume Charge $4.26/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. MINIMUM BILLING Facility Charge. 9 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume x .85 x Rate per 1,000 gallons 1,000 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/1, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/1, whichever is greater. S is the unit cost factor for treating one unit of TSS per 1,000 gallons. MONTHLY RATE (SCNUSCNO) - WITHOUT CITY OF DENTON WATER SERVICE (1) Facility Charge (2) Volume Charge SCNI Inside Corporate Limits $19.47/bill SCNO Outside Corporate Limits $21.62/bill $3.70/1,000 gals $4.26/1,000 gals The minimum apartment Volume Charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. MJIMA lVI BILLING (1) Facility Charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility Charge plus other commercial user estimated monthly wastewater volume. 10 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume x Rate per 1,000 gallons 1,000 Plus PRETREATMENT/PROGRAM CHARGES (As applicable) (1) Categorical Customer $400/bill (2) Non-categorical Customer $50/bill SAMPLING AND ANALYSIS CHARGES (As applicable (1) Sampling charge (each) $42.00 (2) Analysis charge (per test) $21.00 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/1, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/1, whichever is greater. S is the unit cost factor for treating one unit of TSS per 1,000 gallons. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 11 SCHEDULESCD COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER FOR WASTEWATER BILLING (Effective 10/01/10) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD sub-metered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $25.83 1" Meter $28.24 1-1/2" Meter $35.56 2" Meter $41.46 Meter $90.12 4" Meter $169.43 6" Meter $211.48 8" Meter $24633 10" Meter $296.80 (2) Volume Charge $3.70/1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MINJA4UM BILLING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subjectto the Special Facilities Rider. 12 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/1 of Biochemical Oxygen Demand (BOD) $0.002678 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/1, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/1, whichever is greater. S is the unit cost factor for treating one unit of TSS per 1,000 gallons. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume x .98 x Rate per 1,000 gallons 1,000 13 SCHEDULE SCS COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER EXCLUDED FROM WASTEWATER BILLING (Effective 10/01/10) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer's processes, not returned to the wastewater system, and are therefore excluded from the customer's wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $25.83 1" Meter $28.24 1-1/2" Meter $35.56 2" Meter $41.46 Meter $90.12 4" Meter $169.43 6" Meter $211.48 8" Meter $24633 10" Meter $296.80 (2) Volume Charge - None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume submetered. MINJA4UM BILLING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 14 WASTEWATER SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/1 of Biochemical Oxygen Demand (BOD) $0.002678 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 250 mg/1, whichever is greater. S is the unit cost factor for treating one unit of TSS per 1,000 gallons. VOLUME CHARGE EXCLUSION The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, in other words, removed, from the master meter water volume prior to the wastewater billing volume calculation. 15 SCHEDULESCH SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (Effective 10/01/10) APPLICATION Applicable to all users of the Pecan Creek Water Reclamation Plant Septage Transfer Station. The user must sign the "Agreement for Disposal of Liquid Waste" and comply with the following requirements: 1. Section 26-191 of the City of Denton Code 2. Provide to the City: signed "Application for Permit", "Agreement for Disposal of Liquid Waste" documents, and provide copy of current TCEQ Registration Certificate, current Insurance Certificate for each vehicle, and current Manager of Operations Driver's License. 3. Comply with the "Liquid Waste Hauler - Vehicle Inspection Audit" requirements R A TF (1) Facility Charge $ 4.50/bill (2) Volume Charge $ 29.00/1,000 gallons (3) Permit Fee each vehicle $ 300/per fiscal year MINIMUM BILLING Facility Charge. PAYMENT Permit fee is due in full before first disposal at Pecan Creek Water Reclamation Plant Septage Transfer Station. Fee is prorated at $25 per month for current month and each of the remaining months in fiscal year. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. VOLUME CHARGE Billing for the septage volume contained in the septage hauling tank, shall be based on the frill tank volume only. 16 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 10/01/10) APPLICATION Applicable to facilities which perform washing, cleaning or servicing of automobiles, tricks, buses or similar equipment and are categorized by North American Industry Classification System (NAICS) numbers: (811111, 811112, 811113, 811118, 811122, 811121, 811192, 811198, 447110, 447190) and /or similar code classifications. Applicable to all restaurants and food service establishments that prepare and serve food directly to customers and are categorized by NAICS numbers: (722110, 722211, 722212, 722213, 722410, 722310, 722320) and/or similar code classifications. MONTHLY RATE (SEE) (1) Facility Charge $19.47/bill (2) Volume Charge $5.11/1,000 gallons effluent Billing based on eighty (85%) percent of monthly water consumption. Plus PRETREATMENT / PROGRAM CHARGES (As Applicable) (SEA) (A) Categorical $400/bill (SEB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING/ANALYSIS CHARGES (As Applicable) (1) Sampling charge (each) $42.00 (2) Analysis charge (per test) $21.00 "SEE" RATE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the sanitary sewer. The exemption for the SEE class shall be determined by the City of 17 Denton Environmental Health Services Food Inspection Division. (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/l of BOD and 550 TSS as determined by the monitoring performed in Section 2(b). MINMUM BILLING Facility Charge. WASTEWATER SURCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/l of Biochemical Oxygen Demand (BOD) $0.002678 mg/l of Total Suspended Solids (TSS) Cu = Vu ([Bu-500 B + [Su-600 S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 500 mg/1, whichever is greater. B is the unit cost factor for treating one unit BOD per 1,000 gallons. Su is the tested TSS level for user X or 600 mg/1, whichever is greater. S is the unit cost factor for treating one unit of TSS per 1,000 gallons. P A VA/FFNT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 18 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume x .85 x Rate per 1,000 gallons 1,000 19 SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (Effective 10/01/10) APPLICATION Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. MONTHLY RATE SMI Inside Corporate Limits SMO Outside Corporate Limits (1) Facility Charge (2) Volume Charge Plus $24032/bill $27637/bill $3.70/1,000 gals $4.26/1,000 gals (3) Pretreatment/Program Charge (As Applicable) (SMA) (A) Categorical $400/bill (SMB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling charge (each) $42.00 (2) Analysis charge (per test) $21.00 WASTEWATER SURCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/1 of Biochemical Oxygen Demand (BOD) $0.002678 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) 20 Where: Cu is th Vu Bu B Su S MINMUM BILLING e surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. Facility Charge, plus the appropriate Pretreatment/Program Charge, if applicable. P A VMF.NT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 21 SCHEDULESGE SALE OF TREATED WASTEWATER EFFLUENT (Effective 10/01/10) APPLICATION Applicable for sales of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODUCT AVAILABILITY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHLY RATES (1) Facility Charge Per Bill 3/4" Meter $ 20.20 1" Meter $ 22.20 1-1/2" Meter $ 25.75 2" Meter $ 31.65 3" Meter $ 66.25 4" Meter $122.50 6" Meter $153.00 8" Meter $178.00 10" Meter $214.00 (2) Volume Charge $135/1,000 gallons MINIMUM BILLING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. 22 VOLLTNM CHARGE Billing for the wastewater volume shall be based on the effluent volume calculated during the billing period. Formula: Effluent volume x Rate per 1,000 gallons 1,000 23 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION (Effective 10/01/10) APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a wastewater collection system and contracts with the City of Denton for wastewater treatment service. MONTHLY RATES (1) Facility Charge $198.43/bill (2) Pretreatment/Program Charge (As Applicable) (A) Categorical $400/bill (B) Non-categorical $50/bill (3) Volume Charge $2.20/1,000 gallons Billing shall be based on one hundred (100%) percent of actual gallons measured. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling Charge (each) $42.00 (2) Analysis Charge (per test) $21.00 MINIMUM[ BILLING Facility Charge. WHOLESALE SURCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.004886 mg/1 of Biochemical Oxygen Demand (BOD) $0.002678 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250 B + [Su-250 S]) 24 Where: Cu is th Vu Bu B Su S PAYMENT e surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 25 SCHEDULE CWM DYNO DIRT PRODUCTS (Effective 10/01/10) APPLICATION Applicable to any and all customers, whether residential, commercial, or wholesale, which elect to acquire the City of Denton's Dyno Dirt products for their use. The City of Denton reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. RATES Dyno Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyno Soil (Top Soil Blend) $30.00 /Cubic Yard (2) Dyno Dirt $25.00 /Cubic Yard (3) Dyno Lite $30.00/Cubic Yard (B) Wood Mulch (1) Dyno Landscape Mulch $27.50/Cubic Yard (2) Dyno Deco Colored Mulch $30.00/Cubic Yard (3) Dyno Double Grind $17.50/Cubic Yard Purchases for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discount, purchases greater than 100 cubic yards will receive a 40% discount. A contractor's rate will be given to companies or persons who provide a current and valid resale certificate for inspection. The contractor's rate includes a 30% discount on any purchase of from 1 to 99 cubic yards at any one time of any Dyno Product of the City of Denton. (C) City of Denton departments will receive a 40 % discount on all purchases of Dyno Dirt products. (D) Asphalt Millings $10.00/Cubic Yard PRODUCT AVAILABILITY The City of Denton produces Dyno Dirt products throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. 26 LOCATION All Dyno Dirt products may be purchased from the City of Denton at the following location: Location Address Compost Sales Bldg. Water Reclamation Plant 1100 Mayhill Road, Denton, Texas WHOLESALE PURCHASES All Dyno Dirt products purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is requested. 27 SCHEDULE GBL GRAS S/BRUSH/LEAVES (Effective 10/01/10) APPLICATION Applicable to all City of Denton residents who submit for deposit at the landfill grass clippings, brush, and/or leaves, who shall pay the following rates: GRAS S/BRUSH/LEAVES: Product Characteristics Charge 1. Uncontaminated bagged or un-bagged $20.00 /ton grass, brush, or leaves in less than twelve foot (12') lengths. 2. Uncontaminated bagged or un-bagged $30.00 /ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Contaminated grass, brush, or leaves of any length: $41.00/ton 4. Whole trees and stumps $50.00 /ton MINEVIUlVI CHARGE $17.50 per load. Professional landscapers, tree trimmers, and yard maintenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer's location. Grass, brush, and leaves shall not be assessed the City of Denton solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not landfilled. 28 SCHEDULEST WASTEWATER TAP FEES (Effective 10/01/10) APPLICATION This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WITH CLEANOUT Size of Tap Paved Street Unpaved Street 4 inch $2,000.00 $1,410.00 6 inch 2,110.00 1,570.00 8 inch 2,220.00 1,730.00 10 inch 2,380.00 1,865.00 MANHOLE BREAKOUT FEE 6" - 12" Line $165.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 29 SCHEDULE STE TREATED EFFLUENT WASTEWATER TAP FEES (Effective 10/01/10) APPLICATION This schedule applies to the installation, removal, or relocation of treated effluent wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: REUSE WASTEWATER LINE TAPS Size of Tap Paved Street Unpaved Street 4 inch $2,705.00 $1,625.00 6 inch 2,920.00 1,895.00 8 inch 3,895.00 2,815.00 12 inch 4,865.00 3,730.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 30 SCHEDULE OSSF ON-SITE SEWAGE FACILTY PERMIT FEES (Effective 10/01/10) APPLICATION This schedule applies to the new constriction of aerobic treatment systems, new constriction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Constriction of aerobic treatment systems $410 New Constriction of non-aerobic treatment systems $210 Repair or Alteration fees (All types of OSSF's) $50 31 SCHEDULE SD STORM DRAINAGE FEES (Effective 10/01/10) APPLICATION Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amount of impervious surface cover that results in water runoff into the City of Denton drainage system. MONTHLY FEE - RESIDENTIAL (SDR) The residential fee is applicable to all single-family through fourplex real properties located within the incorporated limits of the City of Denton, Texas, for which impervious surfaces can be individually identified. The residential fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: Fee Block Per Bill 0 - 600 Square Feet $ 0.50 601 - 1,000 Square Feet $ 1.00 1,001 - 2,000 Square Feet $ 3.35 2,001 - 3,000 Square Feet $ 5.45 3,001 - 4,000 Square Feet $ 7.60 4,001 - 5,000 Square Feet $ 9.75 5,001 - 6,000 Square Feet $12.00 Over 6,000 Square Feet $15.50 MONTHLY FEE - NON-RESIDENTIAL (SD The non-residential fee is applicable to all other real property owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The non-residential fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per bill EXEMPTIONS The following real property owned and located within the incorporated limits of the City of Denton, Texas shall be exempt from imposition of the residential fee or the non-residential fee: 1. Real property with proper constriction and maintenance of a wholly sufficient and privately-owned drainage system, not draining into the City of Denton drainage system, upon the real property's inspection and certification by the City; or 32 2. Real property held and maintained in its natural state, until such time that the real property is developed, and all of the public infrastructure constricted thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a stricture has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residential fees or the non-residential fees are applicable. 33 SPECIAL FACILITIES RIDER (Effective 10/01/10) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this rider. (2) The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/10) If a special condition or circumstance exists not otherwise provided for by the wastewater rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 34 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on and after October 1, 2010, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 35 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration lk"l- ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2009-221 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton Solid Waste Service; providing for the amendment to the residential refuse and recycling collection services rates and clarification thereof (Schedule SWR); amendment to and clarification of the multi-family refuse collection services rate and renaming it the multi-family household furniture collection service (Schedule SWMFS); amendment to the multi-family chemical collection/recycling rate (Schedule MFR); amendment to the commercial solid waste collection services rates (Schedule SWC); amendment to the commercial recycling services rates (Schedule SWCR); amendment to the constriction, deconstruction, and demolition materials services rates (Schedule SWC&D); amendment to the collection and transportation services permit and clarifications (Schedule SWP); amendment to the sanitary landfill services rates (Schedule SWL); providing for a repealer; providing for a severability clause; and providing an effective date. BACKGROUND The proposed rate changes support the service levels provided for the residential and commercial refuse and recycling services rates for FY 2011. Proposed Rate Increases: FY 2010 FY 2011 Residential Refuse Small Cart $15.50 $16.45 Medium Cart $1735 $18.65 Large Cart $18.75 $21.00 Residential Curbside Recycling $ 430 $ 5.05 Multi-family Recycling $ 1.75 $ 2.25 COD Landfill Gate Rate $39.75 / ton $41.25 / ton. State of Texas Landfill Surcharge $ 1.25 /ton $ 1.25 /ton Gross Landfill Gate Rate $41.00 / ton $42.50 / ton Commercial rates are proposed to increase approximately 9%. There are also several text revisions recommended which provide better clarification of the appropriate rate schedule. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB on July 26, 2010 recommended approval (5-0) the proposed FY 2011 Solid Waste rate ordinance. FISCAL INFORMATION The rate revenue supports the FY 2011 Solid Waste operating budgets and FY 2011-2015 CIPs. EXHIBIT 1. FY 2011 Solid Waste rate ordinance Respectfully submitted, Howard Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NO. 2009-221 AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; PROVIDING FOR THE AMENDMENT TO THE RESIDENTIAL REFUSE AND RECYCLING COLLECTION SERVICES RATES AND CLARIFICATION THEREOF (SCHEDULE SWR);AMENDMENT TO AND CLARIFICATION OF THE MULTI-FAMILY REFUSE COLLECTION SERVICES RATE AND RENAMING IT THE MULTI-FAMILY HOUSEHOLD FURNITURE COLLECTION SERVICE (SCHEDULE SWMFS); AMENDMENT TO THE MULTI-FAMILY CHEMICAL COLLECTION/RECYCLING RATE (SCHEDULE MFR); AMENDMENT TO THE COMMERCIAL SOLID WASTE COLLECTION SERVICES RATES (SCHEDULE SWC); AMENDMENT TO THE COMMERCIAL RECYCLING SERVICES RATES (SCHEDULE SWCR); AMENDMENT TO THE CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES RATES (SCHEDULE SWC&D); AMENDMENT TO THE COLLECTION AND TRANSPORTATION SERVICES PERMIT AND CLARIFICATIONS (SCHEDULE SWP); AMENDMENT TO THE SANITARY LANDFILL SERVICES RATES (SCHEDULE SWL); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the charges for Solid Waste collection services as authorized by Section 24-42(b) of Article II, Section 24-66 of Article III and Section 24-4 of Article I of Chapter 24; and by Section 32-90 of Article IV of Chapter 32 of the Code of Ordinances of the City of Denton, Texas, are hereby established as follows: SOLID WASTE RATE SCHEDULES PAGE SWR Residential Refuse and Recycling Collection Services 3 SWMFS Multi-Family Household Furniture Collection Services 6 MFR Multi-Family Chemical Collection / Recycling 8 SWC Commercial Solid Waste Collection Services 9 SWCR Commercial Recycling Services 16 SWC&D Constriction, Deconstruction, and Demolition Materials 19 Services 1 SWP Collection and Transportation Services Permit 21 SWL Sanitary Landfill Services 28 SCHEDULE SWR RESIDENTIAL REFUSE AND RECYCLING COLLECTION SERVICES (Effective 10/01/10) APPLICATION Applicable for residential family unit solid waste collection service. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any single unit or living space in which a person or single family resides. MONTHLY RATES Containerized Collection Service Refuse Cart Size 1 Cart Small $16.45 / bill Medium $18.65 / bill Large $21.00 / bill 1 pickup per week 2 Carts $38.00 / bill 3 Carts $57.00 / bill Recycling Cart $5.05 / bill $5.05 / bill $8.05 / bill All refuse must be placed within the refuse cart with the lid fully closed. All recyclables must be placed within the recycling cart with the lid fully closed. Residents may contact Solid Waste Customer Service to request that the Solid Waste collection personnel reload their refuse cart with additional bagged refuse materials adjacent to the refuse cart at a price of $6.00 per additional cart reload and empty. The cart reload and extra empty services will be provided if the customer contacts the Customer Service Department and makes the request a minimum of one day prior to their scheduled collection day. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the city shall recover those additional costs from the customer. MINIlV1 M BILLING / BASE RATE SERVICE $17.25 per monthly bill applicable for residential solid waste service for an unoccupied residential family unit which remains vacant for a period greater than two months. This minimum billing rate shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of six months per calendar year. The residential recycling and processing services rate will not be charged for an unoccupied residential family unit that applies for and is granted the Minimum Billing/Base Rate Service as described in Schedule SWR. This exception shall be effective so long as the Minimum Billing/Base 3 Rate Service rate is applicable to the unoccupied residential family unit. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the city shall recover those additional costs from the customer. BILLING Residential accounts will be billed either monthly or quarterly, depending upon the discretion of the General Manager, Solid Waste Services. OTHER CHARGES There is no additional charge for the collection of bagged grass clippings and leaves, or brush and tree limbs which are cut and stacked in less than four foot (4') lengths, if the combined grass/leaves/brush total volume is not over eight cubic yards per collection day. If over eight (8) cubic yards of combined bagged grass clippings, brush, or leaves are placed out for collection on a collection day, excess volume charges will be assessed at $7.00 per cubic yard (including any part of a cubic yard) collected for all cubic yards in excess of eight (8) cubic yards. The Solid Waste Department staff will automatically collect and bill for excess volumes of yard waste if the additional charges are $35.00 (5 cubic yards) or less. Residential customers will be charged a $25.00 re-delivery of cart fee to re-set each cart pulled for nonpayment. Residential customers may be provided metal containers and service at the published commercial rates. Temporary containers may be placed on residential property for up to 30 days, with no more than three such 30-day periods per year. Residential customers shall contact Customer Service, a minimum of one day in advance of their scheduled collection day, to request the collection of up to four large household items per year on their refuse collection day for no additional charge. There is a $5.00 charge per item collected for all items in excess of four (4) items during that year. Large household items are residential household type items that are consistent with residential household use, such as furniture and selected appliances. Large household items exclude those appliances manufactured to contain polychlorinated biphenyls (PCB's) or chlorofluorocarbons (CFC's), and non-household type items, including but not limited to fencing, remodeling, and constriction and demolition (C&D) waste. Appliances manufactured to contain PCB's or CFCs, for which the customer provides no certified removal documentation of the PCB's or CFCs, will be charged $50.00 for the collection and disposal of each appliance and/or the associated materials. There is no charge for the collection of appliances which were manufactured to contain either PCB's or CFCs, if the customer provides a certificate of documentation from an approved business qualified to remove these products indicating that the PCB's or CFC's have been properly removed for their disposal. If the Solid Waste Department is not provided a certificate of removal, the $50.00 charge per item will be assessed if the customer requests collection services through the Solid Waste Department. 4 Residential constriction and demolition (C&D) waste, including but not limited to lumber, brick, fencing, and drywall, will be collected at the scheduled rate of $70.00 for mobilization plus $10.00 per cubic yard or any part of a cubic yard collected above one cubic yard. Materials must not exceed eight (8') feet in length. Customers should contact Customer Service during normal business hours to request the collection of residential C&D waste. If the customer has over eight (8) cubic yards of C&D waste for collection, the customer is required to have a city refuse storage container of adequate size to contain the waste, and maintain a collection service frequency of at least once per month. Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LCD displays or plasma displays will be charged $20.00 per device for the collection, processing and disposal of these devices. Other residential services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special and administrative services provided. When initiating new service, a residential Solid Waste service deposit may be charged. 5 SCHEDULE SWMFS MULTI-FAMILY HOUSEHOLD FURNITURE COLLECTION SERVICES (Effective 10/01/10) APPLICATION Special Collection services will be provided to Multi-Family facilities upon request. These services are provided for the collection of residential appliances and household furniture. Collection services will use commercial containers for furniture items and manual collection for appliances. Containerized furniture collection shall occur during the customer's normal refuse collection route service. The customer shall contact Customer Service and request furniture item container collection service (provided on a demand response basis) a minimum of one day prior to their regular refuse collection day. Items placed in the container may not extend beyond seven (7') feet high from the bottom of the container. The customer shall contact Customer Service and request manual appliance collection at least one day prior to the regularly scheduled residential collection day. Items which will not be collected include: refrigerators, freezers, air conditioners, or any other item manufactured to contain CFC's or PCB's (polychlorinated biphenyls). MONTHLY RATES A. Household furniture collection service per container Container Size Monthly Rental Collection Service Fee 4 CY SL container $23.00 $50.00 / service 8 CY FL container $37.00 $68.00 / service B. Household furniture collection service per living unit $2.50 per living unit per month, (minimum of 12 month subscription service required) for call-in service with once a week collection on the regular collection day. Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LCD displays, or plasma displays will be charged $20.00 per device for the collection, processing and disposal of these devices. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the city shall recover those additional costs from the customer. SERVICE If the container is not serviced during the scheduled refuse collection route, and the customer desires a special collection service, services will be provided at the standard refuse service fees. 6 If the furniture container is contaminated with refuse, constriction materials, or contains other non- furniture materials, the standard refuse service fees will apply. BILLING These accounts will either be billed monthly or bi-weekly, depending upon the discretion of the General Manager, Solid Waste Services. SCHEDULE MFR MULTI-FAMILY CHEMICAL COLLECTION / RECYCLING (Effective 10/01/10) APPLICATION Applicable for multi-family residents living within the City of Denton's solid waste service area. These residents receive, participate in, and benefit from various City of Denton recycling and processing services. A multi-family unit includes each separate living unit of a four-plex, apartment, condominium, or other such multi-family living facility with four or more residences. Facilities that are constricted as boardinghouses, or contain living facilities with separate bedrooms for lease by each tenant, but that contain one common kitchen and/or open living area, will qualify as one living unit, and one multi-family recycling and processing charge will apply. MONTHLY RATE $2.25 / bill per living unit. MINIMUM BILLING $2.25 / bill per living unit. BILLING Multi-family accounts will either be billed monthly or quarterly, depending upon the discretion of the General Manager, Solid Waste Services. SCHEDULE SWC COMMERCIAL SOLID WASTE COLLECTION SERVICES (Effective 10/01/10) APPLICATION Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of Denton. New commercial business development and redevelopment will be provided solid waste commercial refuse and recycling services, as outlined in the Denton Development Code and the Site Plan Criteria Manual. MONTHLY RATE Commercial refuse collection services are provided through a volume-based rate system. Refuse will be collected in city approved or city provided containers only. All non-city owned containers shall have a container permit affixed to the outside of each container in a location that is clearly visible when viewed by Solid Waste Department employees, from the front of the collection site. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the city shall recover those additional costs from the customer. A. PERMANENT FRONT LOAD CONTAINER SERVICE (Long Term Scheduled Service) 1. 8 CUBIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 8 $126.00 2 16 $256.00 3 24 $3186.00 2. 6 CUBIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 6 $104.00 2 12 $211.00 3 18 $319.00 9 3. 4 CUBIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 4 $82.00 2 8 $165.00 3 12 $251.00 4. 3 CUBIC YARD CONTAINERS Front Load Pickups Cubic Yards Rate Per Per Week Per Week Bill 1 3 $67.00 2 6 $135.00 3 9 $206.00 Side Load Rate Per Bill $101.00 $205.00 $310.00 Side Load Rate Per Bill $83.00 $169.00 $256.00 The Solid Waste Department will establish rates to recover the full cost of service for collection services at frequencies greater than three times per week. 5. CONTAINER EXTRA SERVICE (For a container reload and extra empty) Container Size Collection Service Fee B 3 CY container $39.00 / service 4 CY container $44.00 / service 6 CY container $57.00 / service 8 CY container $72.00 / service These extra service fees apply if the trick, while on its scheduled route, remains on-site to provide the additional service and the driver waits while the customer reloads the container. On-site waiting time in excess of fifteen (15) minutes will be charged to the customer at the rate of $85.00 per hour. Waiting time will be billed in fifteen-minute increments. If the driver is called in from off-site to provide same day extra service, there is a $50.00 same day service charge, plus the applicable collection service fee. COMMERCIAL CART SERVICE Commercial cart service is not available city-wide. In those areas where commercial cart collection is available, small quantity waste generators, generating less than one cubic yard of refuse per week, may contract for once per week cart service. All waste must be contained in the cart, and the cart set out for collection no later than 7:00 AM on the scheduled collection day. Large household item collection services are not provided for commercial cart service customers. One (1) pickup per week service: Cart Capacity 1 Cart 2 Carts Large $21.50 / bill $41.00 / bill 10 A maximum of two carts are available. Service above this level will require the customer to subscribe to front load container service. C D E. Extra empties performed while on-site will be provided at the one-cart rates listed above. TEMPORARY FRONT LOAD CONTAINER SERVICE (Short Term Service) Container Size Monthly Rental Collection Service Fee 4 CY container $74.00 $80.00 / service 8 CY container $74.00 $109.00 / service Temporary service accounts incur container delivery charges to initially place the containers. Temporary containers may be placed on residential property for up to 30 days, with no more than three such 30-day periods per year. ROLL-OFF OPEN TOP CONTAINER SERVICE Container Size 15 CY container 20 CY container 30 CY container Monthly Rental $117.00 $129.00 $152.00 Collection and Transportation Service Fees will be $235.00 for scheduled hauls and $255.00 (exclusive of disposal costs) for demand response hauls. Landfill Fees will be charged separately based on the weight or volume of the hauled materials times the appropriate landfill rate (See Schedule SWL). Customers that request the driver wait while they reload the container, in order for the City to provide an additional empty(s), will be charged the collection service fee and on- site waiting time in 15 minute increments at the rate of $85.00 per hour. Constriction and demolition material (C&D) collections will be at the following rates provided with 30 cubic yard containers. a) Container Rental: $129.00 / month (30 CY container) b) Collection Service: $255.00 / haul (demand response) Open Top containers located within the city's right-of-way will incur a charge of $5.00 for each day or portion of a day that they are in the right-of-way. The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. ROLL-OFF COMPACTOR CONTAINER SERVICE Container Size Monthly Rental 11 20 CY compactor $363.00 30 CY compactor $413.00 35 CY compactor $492.00 42 CY compactor $600.00 F G. H. J Receiving container $152.00 Collection and Transportation Service Fees will be $235.00 for scheduled hauls and $255.00 (exclusive of disposal costs) for demand response hauls. Landfill Fees will be charged separately based on the weight or volume of the hauled materials times the appropriate landfill rate (See Schedule SWL). Self-contained compactors located within the city's right-of-way will incur a charge of $5.00 for each day or portion of a day that they are in the right-of-way. The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. 6 CUBIC YARD COMPACTOR SERVICE Pickups per week 1 2 3 4 Monthly Rental $132.00 $132.00 $132.00 $132.00 Collection Service Fee $162.00 / month $462.00 / month $769.00 / month $1,077.00 / month SHARED COMMERCIAL CONTAINERS Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Division staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. MINIlVI M COMMERCIAL CHARGE A minimum charge of $21.50 per monthly refuse bill will be charged to all non-cart commercial solid waste customers. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the city shall recover those additional costs. Shared accounts are subject to other applicable service fees. BILLING Commercial accounts will either be billed monthly or bi-weekly, depending upon the discretion of the General Manager, Solid Waste Services. 12 K. SPECIAL WASTE Denton's acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the waste requested for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the General Manager, Solid Waste, for the collection and disposal of special waste, will be established based on the type of special waste, and the requirements for collection and disposal of the waste. L. SERVICE REQUIREMENTS Equipment Use: The Equipment, whether one or more pieces, furnished by the City, shall at all times be considered the property of the City. Customer shall keep the Equipment free and clear of all levies, liens and encumbrances. Customer shall not modify the Equipment or use it for any purpose other than as set forth herein. The City shall repair, as necessary, the Equipment(s) furnished. The Customer, however, agrees to be solely responsible for any damages to or loss of Equipment resulting from any negligent acts or misuse by the Customer or Customer's agents or employees, or invitees. The City may temporarily replace the size and/or the type of Equipment contracted for with one or more pieces of Equipment(s) of equivalent capacity for the purposes of repairing the Equipment. Customer agrees that the Equipment is in the Customer's care, custody, and control at all times. Equipment Location: Customer shall provide an accessible location for the Equipment that is safe and provides adequate and legal clearance. This means that for a radius of at least five (5) feet around the Equipment there will be no objects or obstructions other than enclosures that meet City-required clearance standards. No container shall be set closer than two (2) feet to any stricture (exception: a bollard in an enclosure). Additionally, the path that the City's Service trick must take on Customer's premises, must provide a minimum clearance on each side of the City's trick of at least two (2) feet. Overhead clearance of twenty-five (25) feet is required for roll-off containers, and twenty (20) feet for front and side load containers. Failure to maintain or provide these minimum clearances will result in the City's refusal to pay any and all damage claims and/or to service the container. Customer will be solely responsible for providing access to the Equipment at all times, and agrees that Customer shall not be relieved of payment of any charges for Services contracted for, but not provided by the City, because of Customer's failure to maintain continuous prescribed access to the Equipment. Outside of normal wear and tear, the maintenance required to place the Container at another location will be charged to the Customer. Indemnification and Hold Harmless. Customer agrees that the City will not be liable to Customer. Customer shall defend, indemnify and hold the City harmless from any and all claims made by Customer's lessor or Customer's lessee at the Service location, and any and all claims made by any other person having an interest in the property situated at the Service location, for any loss, damage or deterioration of the pavement, surface or subsurface materials or facilities at the Service location by reason of use thereof by the City's tricks that are used to Service the Equipment. Customer agrees to release, indemnify, defend and 13 hold harmless the City of Denton, Texas from and against any and all claims for damages to enclosures or screening devices, from solid waste Equipment which do not have an access opening of at least twelve (12) feet inside diameter (ID) for front-load Equipment; and fifteen (15) feet (ID) for roll-off Equipment. Customer further agrees to release, indemnify, defend and hold harmless the City of Denton, Texas, from and against any and all claims of damages related to the furnishing of commercial solid waste service performed by the City. M. MISCELLANEOUS SERVICE CHARGES A delivery fee of $95.00 per container will be charged to all customers for roll-off containers. A delivery fee of $75.00 per container will be charged to all customers for front load or side load containers. A relocation fee of $95.00 will be charged for each roll-off container that is relocated at the customer's site, unless relocation occurs during a service. Front load and side load container relocations are charged $75.00 per service. A $50.00 fee will be charged for each request for same day service. The Solid Waste Department Customer service personnel must receive on-demand service requests prior to 11:00 A.M. on the day service is requested in order to provide same day collection service. An access fee will be charged for containers that present accessibility problems, and/or require additional services or time. Containers that are inaccessible at the time of collection will be charged an inaccessible fee of $95.00 for roll-off containers and $75.00 for all other containers. On-site waiting time will be charged in fifteen (15) minute increments at the rate of $85.00 per hour. A $200.00 fee will be charged for the Solid Waste Department's installation or removal of container locks. Loaded side-load containers shall not exceed a total weight of one ton. Loaded front-load containers shall not exceed a total weight of two tons. Any container evaluated by the City's collection manager to contain excess weight shall be emptied by the customer to the level determined by the collection manager prior to being serviced. Tickets and/or fines for overweight roll-off loads, and the city's administrative costs, are the responsibility of the customer, and shall be paid by the customer. Other commercial services may be provided at fees established by the Solid Waste Division, and approved by the General Manager, Solid Waste Services. The fees established will recoup the costs and administration of the special services provided. For containers, a commercial solid waste service deposit is required. Customers shall be assessed a deposit of $200.00, for up to four containers. Deposits for additional containers are $50 per container. Payments to the City that are not received within the due date will result in the customer's deposit being increased during the next billing cycle. The deposit increase will be based upon the customers billing history. To continue receiving service, the customer is required to remit the previous service balance owed and the increased deposit charges. The General Manager, Solid Waste Services, or designee, may waive the deposit based upon the review of the customer's credit history and other criteria. 14 N O NO PARKING ZONE FEES FOR CONTAINERS IN RIGHT-OF-WAY No Parking Zone fees provide for an identifiable and painted area in the street which is designated as a vehicular No Parking Zone, which provides for road clearance, allowing the city's tricks to always have accessibility to the customer's container. The No Parking Zone is designed to prevent the container from being blocked by another vehicle, and therefore eliminates additional service fees from being charged to the customer, and the need for the city's trick driver to return to the customer's address and empty the container once a vehicle blocking a container has moved. Customers may secure a dedicated No Parking Zone for front load and side load containers by completing an application with the City Traffic Engineer. The initial application and first calendar year fees are: 1. Single length No Parking Zone for each front load container is $175 for the initial calendar year. 2. Extra length No Parking Zone for each side load container is $350 for the initial calendar year. Renewal fees for each subsequent calendar year will be: 1. $2.80 per month for each single length front load No Parking Zone. This fee will be billed monthly on the customer's utility bill. 2. $5.50 per month for each extra length side load No Parking Zone. This fee will be billed monthly on the customer's utility bill. CONTAINER CLEANING SERVICES extend across two city fiscal years. Commercial container cleaning services are available for commercial customers using front load or side load containers. The service is a subscription service this is electable by the customer. Customers electing to utilize the scheduled services are required to sign up for the services for a minimum of one year. The customer's one year service period may Commercial containers will not be picked up and transported to the landfill for cleaning until they have been emptied by city crews during the customer's normal scheduled collection service. Only empty containers will be transported and cleaned. Shared commercial container customers that desire to have their containers cleaned shall determine the monthly amount to be billed to each customer, which when totaled shall equal the monthly rates for scheduled services or the on-demand service rate. Quarterly Cleaning Service Semi-annual Cleaning Service On-Demand Cleaning Service $30.00 / month $15.00 / month $150.00 / container cleaning 15 SCHEDULE SWCR COMMERCIAL RECYCLING SERVICES (Effective 10/01/10) APPLICATION Owners and managers of various multi-family living units, businesses, commercial and institutional businesses, and properties receiving commercial solid waste collection services are subject to receive a refuse audit to determine if they generate enough commercial recyclables to warrant receiving commercial recycling services. Commercial recycling services are available to specific commercial customers only. QUALIFICATION Commercial recycling is not available for all multi-family living units and commercial and institutional businesses operating within the City of Denton. The General Manager, Solid Waste Services or designee will evaluate interested and solicited commercial businesses and the projected volume of recyclable materials from these businesses to determine if commercial recycling services justify being provided. MONTHLY RATES Rates will recover the cost of service. Rates will vary by container size, frequency of collection service provided, and the commodity collected. Based on the recyclable volumes projected, and the City's recommendation, collection services will be provided using either a fixed or demand response collection schedule. Recycling Container Delivery: Front Load $75.00 / each Roll-Off $95.00 / each Commercial Front Load Collections: 8 CY - 1 x week $114.00 / bill 8 CY - 1 x every two weeks or less $94.00 / bill 8 CY - Extra empty (per container) $65.00 / bill 6 CY - 1 x week $95.00 / bill 6 CY - 1 x every two weeks $76.00 / bill 6 CY - 1 x month $66.00 / bill 6 CY - Extra empty (per container) $52.00 / bill 4 CY - 1 x week $73.00 / bill 4 CY - 1 x every two weeks or less $56.00 / bill 4 CY - Extra empty (per container) $40.00 / bill 16 Extra Empties - Customers that request the driver wait while they reload the container, in order for the city to provide an additional empty(s), will be charged the collection service fee and on- site waiting time in 15 minute increments at the rate of $85.00 per hour. Temporary Front Load Containers: Demand Response - 8 CY Comm ed Select Single Commodity Rental (per bill) $67.00 / bill $67.00 / bill Service (within 2 days) $77.00 / service $44.00 / service Small Business Cart Curbside Recycling $5.05 / cart Roll-Off Recycling: * Rental - 15 CY $105.00 / bill Rental - 20 CY $116.00 / bill Rental - 30 CY $137.00 / bill Service (per collection) $255.00 / service * Possible revenue sharing opportunity with commercial entity Special Events Recycling: Small Events - 10 collapsible, portable receptacles $57.00 / event Dumpster Package - 1 x 8 CY dumpster service, plus 10 collapsible, portable receptacles $114.00 / event Dumpster Package - Extra 8 CY empty $114.00 / service The General Manager, Solid Waste Services may establish rates for additional sizes and levels of service. MJINIA lVI BILLING The minimum billing required is the amount of service provided and applicable for each billing period. Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Department staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. BILLING Commercial accounts will either be billed monthly or bi-weekly, depending upon the discretion of the General Manager, Solid Waste Services. ACCEPTABLE RECYCLABLE MATERIALS Acceptable materials depend on local commodities markets and will be mutually agreed upon by the commercial recycling customer and the City. 17 NON-ACCEPTABLE MATERIALS Only materials mutually agreed upon by the commercial recycling customer and the City are acceptable in the provided recycling container. The owner/manager of the commercial entity is the parry responsible for notifying his/her personnel of proper recycling procedures. RIGHT OF LOAD REFUSAL The City reserves the right to refuse recycling loads containing any materials other than the contracted material. If a load is refused as recycling by the City, it will be handled as municipal solid waste (MSW) and incur both the contracted recycling charges as well as associated commercial solid waste disposal rates. OTHER CHARGES All other solid waste services performed will be charged at listed solid waste rates, or at fees established to recoup the costs and administration of the services provided. RECYCLABLE MATERIALS SALES Recyclable glass, plastic, metals, wood, and fiber materials may be sold at no less than forty-five percent of the current market index price. 18 SCHEDULE SWC&D CONSTRUCTION. DECONSTRUCTION. AND DEMOLITION MATERIALS SERVICES (Effective 10/01/10) APPLICATION Applicable for constriction, deconstruction, and demolition sites where the customer requests the City of Denton provide roll-off collection services for the recycling and reuse of the salvaged materials. ACCEPTABLE RECYCLABLE MATERIALS Acceptable materials depend on local commodities markets and will be mutually agreed upon by the commercial recycling customer and the City. RATES Rates are established for roll-off collection and transportation services of the listed materials and any other mutually agreed upon materials for which recyclable and reuse markets exist. Collection services for materials not provided for under this Schedule SWC&D may be provided by the City at fees established by the General Manager, Solid Waste Services. Such fees shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the services provided. a) Container rental per month (C&D materials): 20 CY - $116.00 / month 30 CY - $137.00 /month Contaminated material (refuse) containers will be charged standard refuse rental rates. b) Collection Service: $255.00 / service (Demand Response) C) Processing, Transfer, Handling, Marketing, Disposal Fees: i. Metal * (clean): ii. Cardboard * (clean): iii. Concrete / block / brick * (clean): $5.00 / CY iv. Wood * (clean): $23.00 /ton v. Contaminated loads (Trash): same as SWL gate rate Mixed C&D materials vi. C&D landfill charges for uncompacted mixed C&D materials loads delivered by permitted haulers. Mixed C&D materials fee $5.00 / CY vii. C&D charges for processing uncompacted mixed C&D materials loads C&D materials processing fee $5.00 / CY 19 * Contaminated loads will be charged a disposal rate of $42.50 / ton. Pricing for materials not provided for under this Schedule SWC&D may be provided by the City at fees established by the General Manager, Solid Waste Seivices. Fees shall be established that recover the operational costs, administrative costs, and any other direct or indirect costs incident to the services provided. Loads of mixed C&D materials shall not contain other non-C&D refuse materials and will be handled at these rates based upon a visual inspection and acceptance by city staff. MINE UM BILLING The minimum billing required is the amount of service provided and applicable for each billing period. BILLING Customer accounts will either be billed monthly or bi-weekly, depending upon the discretion of the General Manager, Solid Waste Services. 20 SCHEDULE SWP COLLECTION AND TRANSPORTATION SERVICES PERMIT (Effective 10/01/10) APPLICATION Any person, entity, or business engaged in the collection and transport of waste or recyclables, including but not limited to municipal solid waste, special wastes, hazardous wastes, liquid wastes, and those wastes or recyclables the city does not collect and transport, must possess a current permit issued from the city prior to providing collection and transportation services for materials collected and transported within the city limits of Denton. Permits for collection and transportation services are required for, but are not limited to, the following wastes and recyclables classifications: • Special Waste • Medical Waste • Hazardous Waste • Restaurant Oil and Grease Waste • Grease & Grit Trap Waste • Commercial and Industrial Recyclable Materials • Residential Recyclable Materials • Constriction and Demolition (C&D) waste, recyclables, reusables, and discarded C&D materials • Waste and recyclable collection service providers operating in newly annexed areas, or contract service providers for the city The person applying for a permit will make application through the city on forms provided for that purpose, and shall pay the required application fees at the time of permit application. Application, service, container, and right-of-way fees must be paid prior to the issuance of the permit. Fees calculated as a percentage of gross revenues will be paid to the city a minimum of quarterly. All permits are non-transferable and are granted as non-exclusive service permits. Granting permits will be at the discretion of the city to meet the needs of the community. The permit applicant must pay the required fees, and meet all permit requirements prior to the issuance of a permit. Applicants with a Texas Commission of Environmental Quality (TCEQ) poor compliance history may not be permitted. GRANTING OF PERMIT As a condition of granting a permit, the person or entity receiving such permit (permittee) agrees to execute and comply with all requirements of the service agreement, carry specific types and amounts of insurance, submit reports, and timely pay the necessary fees. Following the granting of a permit, permit stickers shall be issued by the city and placed on all vehicles operating within the city limits of Denton and on all containers placed within the city limits of Denton. Collection and transportation vehicles operating in Denton, and containers set in Denton, are required to display a 21 current and valid calendar year permit sticker at all times. Permits are issued annually and are effective from January 1st or the date of issuance, whichever is later, through December 31st of the same calendar year. The permit application process should be initiated and fees should be paid as early as possible during the last quarter of each calendar year for the upcoming calendar year, so that adequate time is available for review and processing of the application materials. Submittal of applications by December 1st will eliminate the possibility of permits being issued after January 1st City staff, after reviewing the permit application and agreement, and after conducting any necessary research, may issue the permit, issue the permit with conditions, or deny the issuance of the permit. The City will establish the number of permits to be issued in each materials category. EXCLUSIONS Individuals living within the city limits of Denton, and hauling personal materials, wastes, or recyclables from their primary living residence are exempt from this requirement. Any person who transports applicable materials three or fewer times per year, shall register with the city on the forms provided for that purpose. No annual service fees are required, but registration and permitting through the city is required. FEES Application, service, and container fees are payable at the time of application submittal. Right-of- way usage fees are due and payable prior to setting a container in the right-of- way. All fees are non-refundable. Service and container fees are non-transferable between vehicles and containers, and are unit specific. Service fees based on a percentage of gross revenues from the collection, disposal, treatment, processing and transportation services provided within Denton are due quarterly and require payment to the city within thirty (30) calendar days following the end of each calendar quarter. Permittee's are required to provide quarterly payments to the city and will incur additional charges on all quarterly payment amounts not received by the city during the month following the end of the quarter. All quarterly payments are to be received by the city during the months listed below: carter Payment Received by City January - March April 20th April - June July 20tH July - September October 20th October - December January 20tH If the full payment is not received by the due date (20th day of the month following the end of the reporting quarter) a penalty of 10% of the amount due will be charged, with an additional 1% charge due, for late payments beyond 30 days, for each 30 day period the balance due is not received by the City of Denton. The quarterly calculation of a percentage of revenue, or of materials sales, or of services provided 22 requires that the calculation be provided, with complete financial detail, to the city along with the service fee payment to the city. This written financial disclosure shall provide a detailed explanation of how all calculated service fees were determined, and shall be provided to the city either quarterly or monthly, at each required service fee payment period. Container fees apply to each container placed by the permitee within the city limits of Denton, and non-city owned containers serviced by the city, but do not apply to residential refuse carts. Containers are defined as any refuse containment equipment, which can be lifted and emptied using a special vehicle designed for that use, i.e. which are not emptied manually. Container fees are established at $4.00 for each cubic yard of container capacity, per container, per calendar year. Containers will not be placed in a street, alley, or city right-of-way (ROW). If an exception exists, and a container is placed in a street, alley, or city ROW, an additional ROW usage fee will be assessed of $4.00 per cubic yard of container capacity per month (not prorated) for as long as the container is located in the City's ROW. All containers require a container permit fee regardless if the container is or is not placed on the ground. Permittees choosing not to apply for and make payment for a new collection and transportation and services permit by December 1st for the upcoming calendar year beginning January 1st will be assessed a 1% fee (of the total collection and transportation payments from the current year) or may not be granted a permit by the City of Denton. If fees are not paid prior to December 31st, all unpermitted containers will be removed from their service provider locations beginning January 1st by the City of Denton. FEES FOR SERVICE CATEGORIES Service providers desiring to provide services in more than one service category are required to complete permit documentation and pay the applicable fees for each service category they desire to provide within Denton's city limits. A. Special Waste Collection and Transportation Permit 1. Application Fee: $1,000 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] 3. Container Fee of $4.00 per cubic yard, per container, annually. B. Medical Waste Collection and Transportation Permit 1. Application Fee: $1,000 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] 23 C. Hazardous Waste Collection and Transportation Permit 1. Application Fee: $1,000 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] D. Restaurant Oil and Grease Waste Collection and Transportation Permit Grease & Grit Trap Waste Collection and Transportation Permit 1. Application Fee: $500 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] E. Commercial and Industrial Recycling Materials Collection and Transportation Permit 1. Application Fee: $500 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue of the market value of recycled materials or of services provided within the city limits [the 5% shall be paid quarterly.] 3. Container Fee of $4.00 per cubic yard, per container, annually. 4. If applicable, a Right-of-Way Fee of $4.00 per cubic yard, per container, per month. F. Residential Recycling Materials Collection and Transportation Permit 1. Application Fee: $500 annually. 2. Service Fee: 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid no less than quarterly.] G. Constriction and Demolition (C&D) Collection and Transportation Permit a. Large C&D Operators: 1. Application Fee: $500 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] 3. Container Fee of $4.00 per cubic yard, per container, annually. 4. If applicable, a Right-of-Way Fee of $4.00 per cubic yard, per container, per 24 month. b. Small C&D Operators: Transporters with no more than three vehicles, including trailers, in which each vehicle does not have a Gross Vehicle Weight Rating (GVWR) of more than 14,000 pounds, and with less than five service locations, will be charged: 1. Application Fee: $200 annually. 2. Service Fee: $200 per vehicle annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] 3. Container Fee of $4.00 per cubic yard, per container, annually. 4. If applicable, a Right-of-Way Fee of $4.00 per cubic yard, per container, per month. H. Municipal Solid Waste (MSW) Collection and Transportation Permit Available only to companies that provide solid waste services in newly annexed areas for specific periods of time, or are contract service providers for the city. 1. Application Fee: $500 annually. 2. Service Fee: $1,000 per vehicle for vehicles manufactured after January 1, 2007 with 2007 Federal Emissions compliant diesel engines or CNG alternate fuel engines (for vehicles manufactured from January, 2003 through December, 2006 an additional per vehicle fee of $750 will be assessed; for vehicles manufactured before January, 2003 an additional per vehicle fee of $1,500 will be assessed) annually and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid no less than quarterly.] L Non-City Owned Refuse Container Permit For non-city owned refuse containers serviced by the city, the container owner shall pay a container permit fee of $4.00 per cubic yard, per container, annually, billed on the solid waste service bill. SMALL OPERATORS The following service categories of applicants may additionally qualify as Small Operators for the purposes of this rate schedule, and shall be charged the Small Operator rates provided below: • Special Waste • Medical Waste • Hazardous Waste • Restaurant Oil and Grease • Grease & Grit Trap Waste • Commercial and Industrial Recyclable Materials The above listed categories of applicants with less than five service locations within the City of Denton, and operating with a total fleet of less than three vehicles, including trailers, in which each vehicle does not have a Gross Vehicle Weight Rating (GVWR) of more than 14,000 pounds, will be subject to the following Small Operator rates: a. Application Fee: $200 annually. b. Service Fee: $400 per vehicle annually, and 5% of Gross Revenue from services provided within the city limits [the 5% shall be paid quarterly.] 25 c. If applicable, container fees of $4.00 per cubic yard, per container, annually. d. If applicable, a Right-of-Way fee of $4.00 per cubic yard, per container, per month for containers in the public R-O-W. VIOLATIONS P NO OPERATIONS' DECLARATION A business which has not been permitted by the city to operate within the city limits of Denton; or has been suspended by the city from operating within the city limits of Denton, Texas shall be charged a sum of up to $500.00 per day by the city, for each day of violation of this ordinance, if the provider violates the `No Operations' requirement prior to receipt of a City of Denton permit, or during any suspension of a permit period. Each day of illegal operations during a `No Operations' period is considered a separate violation and the service provider is subject to being charged a sum of up to $500.00 for each day of violation. Following the receipt of a `No Operations' declaration and prior to a service provider being reinstated to legally operate within the city limits of Denton, the service provider must meet with the city staff to update their application and agreement and make payment of all monies owed to the city. If a service provider operates a vehicle within Denton's city limits which has not been permitted, or uses a container which has not been permitted, or operates any piece of equipment with an expired permit, or performs some other permit violation, or does not make payment of the appropriate fees in a timely manner, the city will issue a "No Operations' declaration to the service provider, and assess all applicable permit violation fees. Once a service provider has been issued a 'No Operations' declaration from the city, all services to be provided within Denton's city limits are required to cease. Non-permitted containers may be collected by the city and possessed and stored by the city until collection, storage, and permitting fees associated with each container are paid to the City of Denton. Following a meeting with the city staff, and the payment of all monies owed the city, the status of the permit will be determined. REVOCATION OF SERVICES & NON-RENEWAL OF PERMITS If the city finds any requirement of the permit to have not been met, or violated, or observes service providers operating within Denton's city limits without current permits, the city may institute a `No Operations' declaration, and additionally revoke or not renew the service providers permit, thereby requiring the service provider to cease all operations within the city limits of Denton. RECLASSIFICATION OF RECYCLABLES Recyclables containing five-percent or more contamination, as determined by the City, will be considered refuse, and its collection may not be provided by service providers permitted under this ordinance. This material shall be reclassified as refuse and will be collected by the City of Denton. The General Manager, Solid Waste Services or his designee, will make the final determination on whether stored recyclables contain excessive contamination, which at the City's determination, may cause the reclassification of these materials to municipal solid waste (MSW), thereby negating the ability of a service provider to transport this material within Denton's city limits under their operating permit as per this ordinance. 26 TERM AND RENEWAL All collection and transportation permits shall be valid for each calendar year, and for not more than the calendar year for which they are issued. Permittees shall provide a written application and agreement for permit renewal a minimum of thirty days prior to the permit expiration to prevent a possible lapse in permitted services. Applications for renewal shall be processed in the same manner as an initial application. All upcoming calendar year fees are required to be paid by December 1st of the current year prior to reissuing the permit for the upcoming calendar year. 27 SCHEDULE SWL SANITARY LANDFILL SERVICES (Effective 10/l/10) A. B C MUNICIPAL SOLID WASTE (MSW) DISPOSAL RATES: Gate Rate - MSW $41.25 / ton plus state disposal surcharge $ 1.25 /ton Commercial Rate - MSW $26.75 / ton plus state disposal surcharge $ 1.25 / ton Wholesale Rate - MSW $21.75 /ton plus state disposal surcharge $ 1.25 / ton Customers disposing of greater than 3,000 monthly tons of solid waste at the landfill may receive different rate strictures for varied waste categories or guaranteed delivery volumes. Pricing for special waste streams will be established by the General Manager, Solid Waste Services at a rate to fully recover costs. Water treatment plant sludge and biotech landfill feedstock meeting department's quality acceptance criteria - $18.00 per ton. Volume based rates may be charged based on the gross body volume capacity of a hydraulically dumped commercial vehicle(s). MSW C&D Uncompacted $7.70 / cubic yard $5.00 / cubic yard Compacted $8.10 / cubic yard - Uncontaminated Constriction and Demolition (C&D) materials, meeting City of Denton screening criteria, will be accepted on a per ton or cubic yardage basis. Rates charged will be based on the quantity and quality of materials to be delivered. The current State of Texas landfill surcharge of (30 TAC 330.602) $1.25 per ton is a pass through charge collected on behalf of the state. Any additional assessment or fees established by a government entity will be added to the disposal rates and assessed on all waste delivered to the landfill. MINIlVI M LANDFILL CHARGE There shall be a $20.00 minimum charge per load for all materials delivered to the landfill. MIXED LOADS 28 Customers bringing mixed loads of municipal solid waste, yard waste, and bulky items to the landfill will be charged the applicable rate, or rates to cover the cost to handle wastes of various types, characteristics, and amounts. D E. F G. H. TIRES Charge / Whole Tire Charges for tires not shredded or quartered: 1. Street tires < 31" diameter $8.00 / each 2. Street tires > 31" diameter and < 42" diameter $10.00 / each 3. All off-road tires and street tires > 42" diameter $20.00 / each YARD WASTE 1. Whole trees and stumps $50.00 / ton 2. Clean bagged or un-bagged grass, leaves $20.00 / ton or brush in less than twelve (12') foot lengths 3. Clean bagged or un-bagged grass, leaves, $30.00 / ton or brush greater than twelve (12') lengths All contaminated yard waste in this category will be charged a MSW disposal rate. APPLIANCES AND CERTAIN ELECTRONICS For appliances, which were manufactured to contain PCB's or CFCs, and for which no certified removal documentation is provided, there will be a $50.00 charge per appliance. Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LCD displays or plasma displays will be charged $15.00 per device for the collection, processing and disposal of these devices. INERT MATERIALS Inert Materials (Clean) $10.00 / CY For large volume projects in excess of 100 cubic yards: $5.00 / CY Asphalt/Concrete: Inert materials include clean and uncontaminated loads of millings, concrete, asphalt, road-base, or similar materials, which may be recycled. The posted inert materials rate will be charged, or rates to cover the cost to handle various types, characteristics, and amounts of these and other acceptable inert materials. Periodically these materials may be sold to Denton's citizens. Brick/Block: Clean and uncontaminated brick and block will be accepted at the landfill at no charge. SAND, SELECT SOIL, AND ROCK 29 The Solid Waste Department may sell excess sand, select soil, and rock to the public. I J K. L. Gross Volume - City Loaded: 1.0 - 50.0 Cubic Yards (CY's) 51.0 - Greater CY's Customer Loaded Materials: 51.0 - Greater CY's Materials Deliverv Fees (City Limits): Rates per Cubic Yard (CY) Sand Select $5.00 $7.00 $3.00 $4.00 $2.00 $3.00 $100.00 / load Customers wishing to purchase large volumes of soil, greater than 50 CY's, and load their own vehicles, will be required to provide proof of insurance meeting the city's minimum liability insurance coverage. Large volume sales and the actual rates charged will require pre-approval by the General Manager, Solid Waste. The soils must be excess to the needs of the Solid Waste Department. Pricing for special soils will be established by the General Manager, Solid Waste at a rate to fully recover costs. If available, rocks will be sold on a weight basis, at $5.00 / hundred weight. USED CONTAINER SALES The Solid Waste Department will sell used metal containers and used surplus carts from time to time, as they become available for sale. Used surplus large carts will be sold for $15.00 each, with an adjustment for condition, and their projected useful life. Other size carts will be sold based on a pro-rata adjustment for the plastic content. SPECIAL WASTE AND OTHER WASTE STREAMS The acceptance by the landfill of and the disposal of special waste or other waste is conditional. Acceptance of special waste or other waste is subject to Federal and State laws and regulations. The City of Denton has the right to refuse to accept or dispose of special waste or other waste at its discretion. Charges for the disposal of special waste or other waste will be established based on the type, characteristics, and amounts of waste, as well as the requirements for disposal of the waste. Such charges shall be established by the General Manager, Solid Waste, or designee. UNSECURED LOADS In compliance with State regulations, solid waste loads that are not adequately secured to prevent the material from spilling will be charged an Unsecured Load Charge of $20.00 for each load. OTHER CHARGES Other landfill services that are not otherwise listed under this Schedule SWL, may be provided by the City at fees established by the General Manager, Solid Waste. Such fees 30 shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the non-listed landfill services. Hand Unloading when landfill closed $120.00 / hour Materials pull off charge $40.00 / pull M. BILLING Landfill accounts will either be billed monthly or bi-weeldy, upon the discretion of the General Manager, Solid Waste Services. 31 SECTION 2: The General Manager of Solid Waste of the City of Denton is hereby authorized to deny the use of the City of Denton landfill to any customer who provides false information regarding the origin of, or the composition of the solid waste delivered for disposal to the landfill; or for safety violations committed by a customer within the landfill; or for non-compliance with verbal and written instructions provided to the customer by Solid Waste Department personnel at the landfill; or for nonpayment of delinquent funds owed by the customer to the City of Denton, Texas; or for any violation of the law committed by the customer within the landfill; or for any non- compliance by the customer with the Texas Commission on Environmental Quality regulations or policies; or for any non-compliance by the customer with the City of Denton's Code of Ordinances or rules; or for any violation of the written landfill rules by the customer as posted by the Solid Waste Department at the entrances to the landfill, from time to time. SECTION 3: It is in the public interest that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26- 8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. SECTION 4: All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5: If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6: This ordinance shall become effective, charged, and applied to all solid waste services rendered by the City of Denton on and after October 1, 2010; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: 32 APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY n 4 1e By: 33 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration lklll- ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to City utilities customers contained in Ordinance No. 2009-222; adding a new customer application charge; amending Section 26-3 of the Code of Ordinances regarding residential service deposits; eliminating the credit report charge; providing for a repealer; providing for a severability clause; and providing for an effective date. BACKGROUND A new Commercial Customer Application Charge was added and the Credit Report Charge was eliminated. Wording was changed on the New Customer Application Fee to include tax ID information. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB recommended approval (5-0) of the proposed FY 2011 Miscellaneous Fees, Deposits, Billings and Procedures ordinance applicable to utility customers on July 26, 2010. FISCAL INFORMATION The miscellaneous fees provide revenue to offset a portion of the Customer Service operations within the FY 2011 Water utility operation budget and FY 2011 - 2015 CIP. EXHIBIT 1. FY 2011 Miscellaneous Fees, Deposits, Billings and Procedures for Administrative Services to City Utilities Customers ordinance Respectfully submitted, 7WMkHoward Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY UTILITIES CUSTOMERS CONTAINED IN ORDINANCE NO. 2009-222; ADDING A NEW CUSTOMER APPLICATION CHARGE; AMENDING SECTION 26-3 OF THE CODE OF ORDINANCES REGARDING RESIDENTIAL SERVICE DEPOSITS; ELIMINATING THE CREDIT REPORT CHARGE; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Denton customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Meter Connection Charge 3 Meter Reconnection Process Charge 3 Unauthorized Usage Penalty 4 New Customer Application Charge 4 B. METER CHARGES Meter Reading 5 Meter Testing 5 Meter Tampering and/or Damage Charge 5 Meter Inaccessibility Charge 6 C. MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge 7 Service Deposits 7 1 Waiver of Service Deposits Late Payment Charge Due on Delinquent Balances Interest Charge on Past Due Account Balance Interest Earned on Contract Retainage ACCOUNT CONNECTION AND RECONNECTION PROCESS CHARGES (Effective 10/01/10) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service on a first time basis where no permanent service previously existed and where a new account number is established or, when a customer requests service at an address which has existing or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE First Service Requested $22.00 First Service Requested, guaranteed $55.00 same day service First Service Requested, after $55.00 business hours METER RECONNECTION PROCESS CHARGE APPLICATION Applicable when a customer's account is processed for disconnection due to nonpayment. CT-4 A R CTF Meter Reconnection Processing Charge $ 30.00 (When service is disconnected at the meter socket) Meter Reconnection Charge $110.00 (When service is disconnected at the transformer) Reconnect Charge, guaranteed same day service (In addition to normal reconnect charges) $ 55.00 Reconnect Charge, after business hours (When service is disconnected at the meter socket) $ 55.00 Reconnect Charge, guaranteed same day service (When service is disconnected at the transformer) $145.00 Reconnect Charge, after business hours (When service is disconnected at the transformer) $145.00 When more than one trip, within twenty-four (24) hours, is required to restore a customer's service, a Return Trip Charge, in addition to the Reconnection Charge, shall be applied for each additional trip. Return Trip Charge during business hours $30.00 Return Trip Charge after business hours $55.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails to request connection of services within 24 hours of occupancy in a new service location. CHARGE Unauthorized Usage Penalty $30.00 NEW CUSTOMER APPLICATION FEE APPLICATION Applicable when a customer requests new service or is added to an existing account and provides Social Security or Tax ID information to verify identity and credit history. CHARGE New Residential Customer Application Charge - per person $ 3.00 New Commercial Customer Application Charge $ 16.00 4 METER CHARGES (Effective 10/01/10) METER READIN APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $25.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test $27.00/KWH Electric Meter $38.00/KW/KWH Electric Meter ACCURACYSTANDARDS A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $200.00 minimum per connection per system 5 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $38.00 6 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 10/01/10) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer's or taxpayer's check, or money order, or bank draft for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker's bank and returned to the City of Denton unpaid. CHARGE Per Check APPLICATION $27.00 SERVICE DEPOSITS Applicable when a residential customer requests utility service in the City of Denton service area and does not have twelve (12) months of good credit standing with the City of Denton or another utility system for the type of service requested, or does not have a co-signer with twelve (12) months of good credit standing with the City of Denton, or does not request and demonstrate a passing credit rating through a credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) months of good credit standing with the City of Denton, or a commercial letter of good credit from another utility system. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of Denton as security for payment. CHARGE Residential Customer $150.00 or an amount equal to 1/6 of the last 12 months of billing at the service location, whichever is greater. If utility service is disconnected for non-payment, then the customer will be required to pay a deposit sum equal to 1/6 of the last 12 months of billing at the service location. Commercial Customer $300.00 or an amount equal to 1/6 of the last 12 months of billing at the service location, whichever is greater. If utility service is disconnected for non-payment, then the customer will be required to pay a deposit sum equal to 1/6 of the last 12 months of billing at the service location. 7 Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer's account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer's account. WAIVER OF SERVICE DEPOSITS APPLICATION Applicable when an Applicant is a citizen of the City of Denton, Texas and who also is a "victim of family violence," applies for utility service in the City of Denton, Texas. To be a qualified as a "victim of family violence" an Applicant must secure and provide a certification letter, provided by one of the certifying entities to the Utilities Customer Service Department. If a proper, dated and completed certification letter is presented by or on behalf of the Applicant to the Utilities Customer Service Department, and its issuance is verified by the Utilities Customer Service Department, then the requirement of a utility deposit shall be waived for that Applicant. This provision is applicable solely to "victims of family violence" as defined by Texas Family Code, §71.004, as amended. No other relief from the City's utility rates, or deposits, or charges, or fees is hereby provided to "victims of family violence." LATE PAYMENT CHARGE DUE ON DELINOUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $10.001ate payment charge 8 INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month's billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month's billing statement. CHARGE 1% / month on all past due charges and account balances unpaid at the time of the current month's billing calculation. "Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City_ intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX. REV. CIV. STAY ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of interest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. 9 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. This ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 2010; and a copy of said fees and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r' By: 10 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utilities Administration lklll- ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2009-223; providing a repealer; providing for a severability clause; providing for an effective date. BACKGROUND There are no proposed changes to the Engineering fee ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The PUB recommended approval (5-0) of the proposed FY 2011 Engineering fee ordinance on July 26, 2010. FISCAL INFORMATION The engineering fees provide the revenue to support the FY 2011 Engineering group operations within the Water utility. EXHIBIT 1. FY 2011 Engineering fee ordinance Respectfully submitted, Howard Martin, ACM Utilities EXHIBIT 1 ORDINANCE NO. 2010 - AN ORDINANCE AMENDING THE SCHEDULE OF ENGINEERING FEES CONTAINED IN ORDINANCE NO. 2009-223; PROVIDING A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas incurs administrative expenses in providing inspection services for public improvements which are constricted by developers, and should be properly borne as fees by developers; and WHEREAS, when contractors or utilities perform work within City of Denton right-of- way, the City incurs right-of-way inspection and administrative expenses, which should be properly borne as fees by the contractor or utility requesting services; and WHEREAS, when commercial establishments require loading zones, or parking lots, or commercial establishments file variances or appeals to the Traffic Safety Commission regarding the proper traffic flow and safety, the City of Denton thereby incurs inspection and administrative expenses, which should be borne as fees to the commercial establishment seeking the City action; and WHEREAS, the City Council finds that such fees as are recited herein bear a reasonable relationship to the actual administrative costs and expenses incurred by the City of Denton to conduct such inspections, and that the following ordinance should be enacted; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. That a public works inspection fee is hereby established in an amount equal to 3.5% of the cost to constrict public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City's authorization to proceed with constriction of the public improvements. The cost to constrict the public improvements is the cost set forth in the public improvements agreement by and between the City and the developer. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the "Overtime Fee") shall be paid to the city based upon the following hourly rate: $105.00 per hour as of and after the effective date of this ordinance. A minimum Overtime Fee shall be deposited with the City based upon four hours, at least 24 hours before the overtime inspection is scheduled to start; except that the weekend overtime deposit may be received on or before 12:00 p.m. of the Friday immediately preceding the weekend overtime period. If there are more than four overtime inspection hours, developer will be billed for such additional hours, which shall be paid no later than fifteen (15) days after the date of the billing, and prior to incurring additional overtime inspections. Authorization to 1 proceed with constriction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. SECTION 3. A right-of-way inspection fee is hereby established in an amount equal to $75.00 per hour, with a minimum of one hour for each inspection conducted. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the "Overtime Fee") shall be paid to the city at a rate of $105.00 per hour. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking constriction or repairs with the City right-of-way no later than fifteen (15) days after the date of the invoice. Authorization to proceed with constriction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. Failure to pay the fee in full may result in the City terminating the contractor's or utility's right to work within the City right-of-way. SECTION 4. A parking lot permit inspection fee is to be paid to the City of Denton, and is hereby established in an amount equal the following: Parking lot permit fees 1 - 50 spaces $540.00 51 - 100 spaces $720.00 101 - 250 spaces $900.00 251 - 500 spaces $1,080.00 This parking lot permit inspection fee must be paid to the City by the developer or contractor of such facility prior to the City's authorization to proceed with constriction of the parking lot facilities. SECTION 5. A fee for appeals or for variances to the City of Denton Traffic Safety Commission is to be paid by the Applicant to the City of Denton, and is as follows: Fees for appeals or variances to Traffic Safety Commission Fee per appeal or variance $300.00 SECTION 6: A loading zone permit fee is to be paid by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year 2 That any renewal of a loading zone permit shall require the payment by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year SECTION 7: All ordinances or parts of ordinances in force when the provisions of this ordinance becomes effective which are inconsistent or in conflict with the terms or provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 8: If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 9: The Schedule of Rates herein adopted shall be effective, charged, and applied to all engineering services occurring on and after October 1, 2010; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Community Development Division ACM: Fred Greene SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving guidelines for operation of the City of Denton Home Improvement Program and eligibility criteria; authorizing expenditures in excess of $50,000 for projects meeting program guidelines and criteria; and providing for an effective date. BACKGROUND This ordinance approves guidelines and eligibility criteria for the 2010 Home Improvement Program (HIP). Passage of this ordinance authorizes project payments that exceed $50,000 when the project meets program eligibility criteria and guidelines. City Council awarded Community Development Block Grants (CDBG) and Home Investment Partnership Program (HOME) grant funds to HIP for the 2010-2011 program year as part of the City of Denton 2010 Action Plan for Housing and C'omnninity Development. Additional funding sources may include program income, a Denton County Housing Finance Corporation grant, Federal Home Loan Bank grant funds and owner-provided personal funds. Bids are let for all rehabilitation and reconstruction projects. Homeowners select their contractor from the bids that meet HIP guidelines. The only significant revision to the 2010 HIP guidelines is that the "Eligibility Income Limits" are being updated to comply with the Department of Housing and Urban Development's (HUD's) adjusted limits effective June 26, 2010. ESTIMATED SCHEDULE OF PROJECT The program guidelines will be in effect for owner-occupied rehabilitation and reconstruction projects completed from October 1, 2010 through September 30, 2011. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Community Development Advisory Committee recommended funding for the HIP and City Council approved the recommendation on May 4, 2010, as part of the City of Denton 2010-11 Action Plan for Housing and Community Development. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Housing staff salaries related to program delivery will be paid with CDBG and HOME funds. No general fund dollars are included to manage this program. EXHIBITS 1.) Proposed Ordinance 2.) 2010 Home Improvement Program Guidelines Respectfully submitted: ij~x& at-v~ Mark Cunningham, Director Planning & Development Prepared by: Barbara Ross Community Development Administrator sAlegahour documentslordinances11012010 draft hip ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING GUIDELINES FOR OPERATION OF THE CITY OF DENTON HOME IMPROVEMENT PROGRAM AND ELIGIBILITY CRITERIA; AUTHORIZING EXPENDITURES IN EXCESS OF $50,000 FOR PROJECTS MEETING PROGRAM GUIDELINES AND CRITERIA; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes the need to assist low and moderate income families in securing safe, sanitary and decent housing; and WHEREAS, the City of Denton participates in a Home Improvement Program administered by the City of Denton Community Development Division and funded through a federal grant from the Department of Housing and Urban Development; and WHEREAS. The City Council deems it to be in the public interest to approve the Program Eligibility Criteria for the 2010 Program year; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council approves the 2010 Home Improvement Program Guidelines and Home Improvement Program Eligibility Criteria which are attached hereto and made a part of this ordinance for all purposes as Exhibit "A" and authorizes the City of Denton Community Development Division to administer this program. SECTION 2. The City Council authorizes the expenditure of fiends in excess of S50,000 by the Community Development Division for projects meeting Program Guidelines and Criteria, subject to compliance with competitive bidding laws, where applicable. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2010. MARK A. BURROUGHS, MAYOR s-v, E00-Draft[ice0,dinsoce.d- ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY 1 BY: Page 2 of 2 DENTON 2010 Home Improvement Program Guidelines 1.001, 000,~ 1111~~ I 12t Available in Spanish 1 Disponible en Espanol 9) tp„h~ „O45;~G QPPPF7UN17Y Effective Date: 10/01/2010 tp„hL HO4S ! G QPPPF7UN17Y Applicant(s) Is Subject To Any Guideline Changes Prior to Contract Execution 2 TABLE OF CONTENTS INTRODUCTION .................................4 Hoene Improvement Program .................................5 Description of General Program Procedures .................................5 1. PURPOSE 5 II. DESIGNATED AUTHORITY .................................5 III. ELIGIBILITY REQUIREMENTS: 5 IV. APPLICATION PROCESSING .................................7 V. SELECTION OF RECIPIENTS FOR ASSISTANCE .................................8 VI. WAIVERS AND APPEALS PROVISION .................................8 VII. FINANCIAL ASSISTANCE .................................8 VIII. CONTRACT REQUIREMENTS .................................9 IX. PROJECT FEASIBILITY CRITERIA ...............................10 X. PROJECT COST LIMITS ...............................11 XI. ALLOWABLE EXPENSES ...............................11 XII. PROGRAM ACTIVITY OPTIONS ...............................11 A. Owner-Occupied Rehabilitation .............12 B. Optional Reconstruction .............12 XIIL CONTRACTOR SELECTION AND PROJECT MONITORING ...............................12 XIV. PAYMENTS TO CONTRACTOR ...............................13 XV. CONTRACTOR DEBARMENT ...............................14 APPENDICES Index ...............................15 APPENDIX 1 Qualifying Income Limits for Federally Assisted Programs ...............................16 APPENDIX 2 Targeted Neighborhoods Map ...............................17 APPENDIX 3 HOME Certification and Participation Agreement ...............................18 APPENDIX 4 Temporary Rehousing Questionnaire and Agreement ...............................20 APPENDIX 5 Space & Amenity Allowances For Reconstruction Activities ...............................21 APPENDIX 6 Lead Based Paint Hazard Control Relocation Policy and Procedure ...............................23 INTRODUCTION The City of Denton Home Improvement Program's objective is to assist low and moderate-income families in securing safe, sanitary and decent housing. This objective is accomplished through owner-occupied rehabilitation and optional reconstruction activities. Rehabilitation of an owner-occupied dwelling corrects code violations and makes needed repairs. If a dwelling is not feasible for rehabilitation, the applicant may be eligible for a replacement single-family dwelling. Optional reconstruction activity provides funds to demolish dilapidated dwellings and constrict new modest, energy efficient and safe single-family dwellings on owners' lots. The Home Improvement Program is administered by the City of Denton Community Development and is funded by federal grant dollars from the United States Department of Housing and Urban Development (HUD), participating owner funds, program income and other grant and private dollars, when available. The following pages contain a detailed description of the Home Improvement Program including program and project guidelines, application instructions and project bidding process. The purpose of the guidelines is to explain to potential applicants and the citizens of Denton, the Home Improvement Program and the levels of assistance available. For further information or clarification of the guidelines, please contact the: Community Development Division 601 E. Hickory Street, Suite B Denton, Texas 76205-4303 (940) 349-7726 Located at City Hall East - 2nd Floor 4 Home Improvement Program Description of General Program Procedures 1. PURPOSE A. The City of Denton Home Improvement Program provides technical and financial assistance for eligible low and moderate-income households to complete rehabilitation or reconstruction of their principal residence. B. Assistance shall be subject to the availability of program funds. Administrative procedures will be modified to meet any change in rules and regulations of HUD that may occur over time. II. DESIGNATED AUTHORITY A. Administrative authority for implementation of the program will rest with the City of Denton Community Development Division. Community Development staff approves contractual and budget changes, as needed for project completion. B. The Community Development Administrator will have the responsibility for final determination of the amount of assistance available to individual applicants, in accordance with the program guidelines, policies and procedures. C. The Community Development Administrator will be responsible for approval of applicant eligibility for the program and final approval of applicants to be assisted. III. ELIGIBILITY REQUIREMENTS: Eligibility requirements must be met for both the applicant's household and the property. Eligibility for assistance is completed in two phases as described in sections A. and B. below. A. Applicant(s) / Household Eligibility Requirements: Must be a United States citizen or a legal resident alien. Must own, currently occupy and have occupied the dwelling for at least the past two consecutive years. (The period of time an applicant has lived in a property under a lease for purchase or contract for deed form of purchase may be taken into consideration in calculating the two consecutive years.) Must hold a Fee Simple Title to the property. City staff will verifi- ownership through a general title search. a. If applicant is purchasing their home by a "contract for deed" (or a like contract), where applicant does not gain title to the property deed until all contractual obligations have been met, applicant is not eligible for assistance. The seller must provide the purchaser with a filed warranty deed on the property to satisfi- this eligibility requirement. b. If applicant(s) inherited the property, the legal documents establishing applicant(s) has fee simple title to the property must be on file in the Denton County Clerk's Office. Applicant must provide proof of financial responsibility for the property (i.e. tax payments, and/or utility payments, fee simple title, executed, filed affidavit of heirship, etc.), and, proof of residency, both, for not less than the most recent, two consecutive years. Must meet program's income limits. a. Gross annual total household income is at or below the follo-,ving, adjusted for family size. Current maximum income limit by household size is (income limits effective 6/26/2010): Rehabilitation 1 Reconstruction 80% of the AMI Household Size Maximum Income Limit 1 $38,300 2 $43,750 3 $49,200 4 $54,650 5 $59,050 6 $63,400 7 $67,800 8 $72,150 b. Must not have assets (total combined for all household members) in excess of $100,000. NOTE 1: The appraised value of the applicant's property is excluded in total assets calculation. NOTE 2: Household income is calculated based on HUD's Technical Gilide for Determining Income and Allowances for the HOME Program as described in the City's Home Improvement Program Policies and Procedures Manual. Must have acceptable credit under the City of Denton Community Development undeiv citing policy. Applicant(s) must exhibit the financial ability to pay creditors, including the following basic housing expenses: a. Home Mortgage Payment, including the loan with the City of Denton for Home Improvement assistance. b. Loan and revolving credit payment(s). Property Taxes (City, County, DISD) for all owned properties. Homeowner's Insurance Policy premiums Utilities: electricaUsvater/selvage/solid waste and gas Applicants denied assistance due to poor credit histoiv may be reconsidered for the program upon verifiable completion of six (6) consecutive months of successful debt management with Consumer Credit Counseling of North Central Texas or other debt management companies. Note: Debt management will be recertified prior to signing contracts. Must demonstrate that income exceeds projected housing expenses and would allow the applicant to maintain the dwelling. Homeowner may be required to provide owner contribution toward project cost (see Section VILA.). Pre-existing mortgage note balance cannot exceed 80 percent of the property's appraised value for rehabilitation and 70 percent of the property's appraised value for reconstruction. 10. See "household" guideline at section IILB.10.a. below. NOTE: The City of Denton reserves the right to request an independent market analysis. B Property Eligibility Requirements Must be zoned to allow for single-family construction and be situated in a Targeted Neighborhood within the city limits of Denton (Refer to Targeted Neighborhoods Map - Appendix 2). Must exhibit building code deficiencies that make the dwelling unsafe or unsanitaiv. Structure must be more than 20 years old. May not have existing property code violations (such as high weeds, trash, debris, junk vehicles, etc). Any liens placed on a property for correcting any past or present code violations must be paid in full by the time application processing occurs. Any items cited as a code violation on the property must be corrected or removed before assistance is provided. 6 Must be serviced by or be accessible to City-approved water supply, sanitaiv sesyer and electrical system. Must meet all of the City of Denton's Land Development Codes. Must comply with and meet all environmental regulations; i.e., historical, floodplain, noise, lead, etc. May not exceed Community Development Replacement Housing Space Allowances Policy for reconstruction. Projects that would exceed the set standards due to property deed restrictions or neighborhood minimum requirements are not eligible for assistance. Must be covered by an approved homeowner's insurance policy. NOTE: If an applicant's property is not currently insurable because of its present condition or the property is going to be reconstructed, the applicant must sign a HOMEOWNER AFFIDAVIT OF UNDERSTANDING AGREEMENT FOR HOMEOWNER'S INSURANCE to satisfy this eligibility requirement. Proof of homeowners insurance must be provided at completion of a rehab or reconstruction. 10. Households and/or properties previously assisted through this program may or may not be eligible for additional assistance as follows: a. A household that has received assistance to rehabilitate or reconstruct a home that they subsequently sold is not eligible for assistance on another home they purchase, regardless of the circumstances. b. A property that received rehabilitation assistance after March 1996 when the total dollar amount spent was above $30,000 is not eligible for additional assistance from this program. c. A property that received rehabilitation assistance before April 1996 may be eligible for additional assistance when all liens have been paid and released. d. A property that has received reconstruction assistance is not eligible for additional assistance from this program. IV. APPLICATION PROCESSING A. To be placed on the waiting list, applicants must meet the following criteria: Household's total gross annual income does not exceed current program income limits (See Appendix 1). Owner is living in and has owned the single-family dwelling for not less than twelve consecutive months. Property is located in a Targeted Neighborhood (see Appendix 2). Property meets all requirements in Section IILB. Applicant must complete a Waiting List Application Form and attach a copy of their property deed or proof of ownership. (Waiting List Application Forms are available at the Community Development Division, 601 E. Hickory Street, Suite B Denton, Texas, 76205, 940-349-7726.) B. Upon submission of a waiting list application to Community Development, applicants are placed on the waiting list in the order in which their application was received. C. When applicant reaches the top of the waiting list, s/he swill be notified in writing to complete the application process and must provide all items requested on the checklist. In addition to checklist items, further documentation may be required to process application. NOTE: Contact deadline dates swill be specified in the notice to apply letter from Community Development. Applicant must schedule an appointment to apply and must submit required application information prior to the stated deadline. These deadlines are strictly enforced. D. Application information regarding household income and composition must be complete, accurate and up-to- date. All information swill be verified by Community Development staff. 7 Any intentionally falsified information will cause the application to be rejected and the applicant will not be allowed to reapply. Failure to disclose information that may affect eligibility requirements shall also constitute fraud. Applicants shall be required to make full restitution to the City in the event Community Development services are provided to applicants who provided inaccurate or incomplete information in order to meet eligibility requirements. E. Applicant must provide a detailed personal budget that includes household's expenditures and net incomes to determine if household has enough discretionary income available to pay back a loan to the City. F. Applicant must attend a homeownership workshop, with emphasis being placed on maintenance, budgeting, cost effective decorating, and responsibilities of home ovriership. G. Community Development staff will notifi- eligible applicant(s) of the financial assistance category he/she is eligible for under the program guidelines. Applicant will be notified that final eligibility for assistance is determined upon completion of the feasibility study of the property. Ineligible applicants will be notified of the reason their application for assistance is being rejected. H. Any applicant who feels that s/he has been unjustly denied assistance under the Home Improvement Program should follow the appeal procedure outlined in Section VI. V. SELECTION OF RECIPIENTS FOR ASSISTANCE A. Assistance will be provided to households on a first come, first served basis. The date upon which the Eligibility Certification Part I was approved will be used to determine the order of assistance. In addition to the date certified, assistance is also dependant on the availability of funds* These two factors will determine the order of assistance and date funds will be made available. *The HIP Program project targets stated in the Action Plan must be met. If funds needed to complete a project are not available, the applicant will be assisted based on the date of application submission when funds become available. B. Community Development Staff will provide counseling and assistance as needed to facilitate the applicant's rehousing/housing, including the following: Information on the program and rehousing/housing options available. Assistance in soliciting bids for replacement housing. Assistance in contractual compliance between applicant and contractor. Assistance in inspection of construction of replacement dwelling, if applicable. VI. WAIVERS AND APPEALS PROVISION A. Request for Waiver: The City of Denton Home Improvement Program must follow specific guidelines in order to assure proper administration and management. In the event that an applicant feels that his/her circumstances require special consideration, s/he may request, in writing, a waiver from the usual requirements. All requests should specify the requirement(s) to be considered for waiver and state the applicant's reason(s) or special circumstances why s/he believes a waiver should be approved. The Community Development Administrator will review requests on a case-by-case basis. Applicant will be notified in writing of the final decision. VII. FINANCIAL ASSISTANCE A. Owner Contribution is a percentage of the total project cost that the applicant must provide at contract signing. These funds are held in an escrow account and will be expended before City funds are used when making contractor payments. The oN-,ner contribution increases on a sliding scale as household income increases. See Appendix I for percent of oN-,ner contribution by income ranges and family size. B. City of Denton Funds: The City of Denton will fund the remaining project costs using Federal HUD CDBG and HOME dollars, program income and private funds, when available. C. Term of the Note is determined by the activity to be completed and/or total project cost as follows: 8 Activity / Project Cost Term Rehabilitation/Below $10,000 60 months (5 years) Rehabilitation/Between $10,000 - $25,000 120 months (10 years) Rehabilitation/Above $25,000 - $45,000 180 months (15 years) Reconstruction or Rehabilitation/Above $45,000 240 months (20 years) D. Financial Assistance Levels: The City-funded dollars are payable through a two-part loan. See Appendix I for income ranges by household size, payable to deferred loan ratios and description of Payable and Deferred loans. E. Applying to the Home Improvement Program is voluntary. Funds for temporary relocation are not provided. VIII. CONTRACT REQUIREMENTS A. The City of Denton swill be in the first lien position. When a first lien position is not possible, the City may accept second lien position, subject to the review and approval of the Community Development Administrator. Liens are released once all the requirements and conditions of the deed and promissory note have been met. B. DEFAULT ON CONTRACT: If the applicant defaults on their contract, the lien will be called due in full, and referred to the City of Denton's Legal Department to begin acceleration of the note as allowed by law. The City will make every effort to work with the applicant to avoid foreclosure and will examine each situation on a case-by-case basis. Examples of loan default include, but are not limited to: 1.) Delinquent loan payments; 2.) Failure of grantee to reside in the assisted dwelling unit as the principal residence of applicant; 3.) Failure to maintain adequate homeowner insurance coverage; 4.) Failure to pay property taxes when due. C. SALE OF PROPERTY: In the event the grantee sells the property prior to maturity of the note, the sum of the unpaid balance of the loan and the unforgiven balance of the deferred loan amount will become due immediately. Under no circumstance swill assistance be provided to grantee on any future property purchased. D. DISCONTINUATION OF RESIDENCY: In the event the ovmer(s) no longer resides in the unit due to death or a permanent medical condition and the heirs/ossmer decide to sell the property, the City of Denton will accept as settlement of the note the lesser of: 1. Seventy (70) percent of the property's market value at the time of sale (the City reserves the right to conduct an independent appraisal), or, 2. Payment of the entire loan balance (both payable and forgivable) owed at the time of grantee's death or date grantee was no longer able to reside in his/her home due to medical reasons. If the heirs decide to reside in the property, the City- of Denton swill negotiate a modified and/or continuation of the note depending on beneficiary income and ownership circumstances. If the heirs decide to set up the property as a rental unit, they will pay the balance due as calculated in "D" above and may request a monthly payment arrangement. The heirs will be required to sign a Modification of Note and Lien. E. TEMPORARY DISCONTINUATION OF RESIDENCY: In the event the ossmer(s) temporarily discontinues residence due to a medical condition, but has a all intention to return to the primary- residence; owner must continue to make timely loan payments and comply with the following: L Beeping the property in good repair and condition; 2. Paying all taxes and assessments on the property when due; 3. Preserving the lien's priority as it is established in this deed of trust; 4. Maintaining in a form acceptable to Beneficiary, an insurance policy, a. If a house remains vacant for 60 days or longer, an insurance company could cancel the policy, or deny claims. It is the homeowner's responsibility, if the home is vacant for more than 60 days, to ensure that the house has required insurance coverage. Homeowner is responsible for contacting their insurance company to ensure coverage. Coverage must comply with the following: 9 - covers all improvements for their full insurable value - contains a replacement cost coverage clause for the reconstructed stricture - provides fire and extended coverage, including windstorm coverage - protects Beneficiary with a standard mortgage clause - provides flood insurance at any time property is in a flood hazard area F. After homeowner returns home, it swill be the homeowner's responsibility to ensure that the policy is a homeowner's insurance policy and complies with all contract requirements. LOSS OF HOUSEHOLD INCOME: If, after the project begins, a household experiences a permanent, substantial loss of household income, an applicant may request a re-evaluation of their total annual gross household income. This evaluation may result in a decrease in the payable portion of the note. The loss of income must be from an income-earning household member(s) whose income was used in determining the original loan assistance category. Please note: Loss of employment (voluntarily or involuntarily) is not considered a "permanent loss". For purpose of this program "permanent loss" is defined as: death retirement (must be 62 years of age or older) permanent disability Other substantial permanent loss of income, when approved by Community Development Administrator. All household members must complete all income information and forms as required in section IV, Application Processing- Application processing will be completed to determine if an adjustment and/or extension to the payable portion of the note is eligible. A determination will be made after evaluating the household size and income using the program guideline income limits and financial assistance categories that are being used at the time the request for reduced loan payment is made. When a loan adjustment and/or extension is granted, the applicant must sign aModification and Extension ofReal Estate Note and Lien reflecting the adjustment and/or extension of the note. IX. PROJECT FEASIBILITY CRITERIA A. A decision as to the type and amount of assistance an applicant is allowed is based on the feasibility of a property to be rehabilitated. An assessment swill be completed using the following factors: Determine if the rehabilitation cost swill be affected by: the zoning of a property, a property being located in a designated 100-year floodplain or floodvmy, a need to abate possible presence of lead- based paint, possible historical restoration requirements, or if a rehab will reduce noise levels if property is in a high noise area. NOTE: The Floodplain Management regulations may limit the total cost of all non-code repairs for any dwelling located in a designated 100-year floodplain to 50 percent of a property's pre-rehabilitation appraised value as set by the Denton Central Appraisal District (dwelling [not land] value only). Determine if the frameswork and foundation of a dwelling are stable, or can be made stable through rehabilitation. (May allow for structural engineer evaluation of structure when staff cannot determine.) Lead-based paint hazard reduction techniques will be used when lead-based paint exceeds HUD's acceptable limits for lead content in existing paint. The limits for lead content exceed HUD's limits when lead content exceeds 1 mg per cm' (one milligram per centimeter squared), or 5000 ppm (parts per million). The reduction techniques used by this program are described and found in the U. S. Department of Housing & Urban Development's publication, Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing, issued June 1995. NOTE: The homeowner may be required to make arrangements for household's relocation if it is required in the Homeowner Protection Plan for Lead Based Paint Hazard Control work. See Lead- Based Paint Hazard Control Policv & Procedure for more information. Is a room addition(s) needed to relieve serious overcrowding. 10 NOTE: Room additions and improvements to relieve serious overcrowding may be eligible and require the approval of the Community Development Administrator. B. A structural evaluation and project cost determination is completed. Projects that will exceed the Project Cost Limits (Section X) are not eligible for rehabilitation assistance. Applicant may be referred for optional reconstruction assistance. X. PROJECT COST LIMITS A. A rehabilitation project must meet all of the following tests to be considered feasible to rehabilitate. Projects not feasible for the rehabilitation activity may be eligible for reconstruction and must meet the cost criteria in items 2 and 3 of this section. Using the post project square feet (properties less than 1000 SF use 1000 SF to calculate), rehabilitation is limited to $55 per square foot of total living space up to a maximum bid limit of $70,000, plus 10% for potential change orders. Exceptions: An additional $10 per square foot may be available to comply with lead reduction. An additional $10 per square foot may be available to comply with historical requirements. When rehabilitation includes either lead-based paint and/or historical Nvork, a project bid is limited to a maximum of $80,000, plus 10% for potential change orders. Reconstruction: Reconstruction bid limit, which includes demolition and reconstruction of a home, will not exceed $99,500, plus 5% for potential change orders. Total project cost will not exceed the current Maximum Per Unit Home Subsidy Limits for Denton as set by HUD (See Appendix I). The after project appraised property value will not exceed 95% of the current Single Family Mortgage Limit for Denton as established by HUD (See Appendix I). B. PROGRAM MINIMUM LIMITS FOR Home Improvement projects: A dwelling needing less than $5000 of repairs is not eligible for Home Improvement Program assistance. XI. ALLOWABLE EXPENSES Federal CDBG and HOME grant funds will be used to pay for eligible project costs to complete substantial rehabilitation of existing ovrier-occupied properties and reconstruction of substandard ovrier-occupied properties. Some alloNvable fees are: o Cost of room addition(s), to relieve serious overcrowding when approved by the Community Development Administrator. o Demolition of substandard structures as needed to complete projects. o Costs necessary to build modest, energy efficient, safe and sanitaiy replacement of principal residences o Other eligible expenses the Community Development Division determines necessaiy to facilitate the completion of activities allowed by this program (Example: title search, filing fees, platting, engineering reports, permit and tap fees, etc.) o Eligible administrative costs. o Other fees and costs as allowed by the CDBG and HOME regulations. NOTE: Funds for temporaiy relocation during project construction are not provided. XII. PROGRAM ACTIVITY OPTIONS The Home Improvement Program provides three options. The process required for all activities will be: Process CD staff will complete a project feasibility study. This inspection will include a detailed evaluation of all deficiencies needing to be addressed to bring the dwelling up to minimum program standards. Activity option determined based on feasibility criteria (Section IX.). Project details completed and approved by applicant. 11 o CD staff completes a cost estimate of the -,work to be completed. o CD Administrator certifies the project as "eligible" or "not eligible." o If eligible for reconstruction, applicant must sign the Temporaiy Rehousing Questionnaire and Agreement (Appendix 4) or for rehabilitation of homes built before 1978, the Lead Based Paint Hazard Control Relocation Policy and Procedure (Appendix 6). o Bid packet is prepared, bid out as described in Contractor Selection and Monitoring (Section XIII), oN-,ner chooses contractor from eligible bids, contracts are signed and project begins. o The City's Building Inspections and CD staff inspects project's progress routinely to ensure compliance Nvith City codes and project specifications. Community- Development staff completes final inspection. o For reconstruction activity, owner must have utilities connected and provide proof of homeov'mer's insurance before property can be occupied. o Project is closed upon contractor receiving contingency payment; owner receives loan payment schedule; invoicing begins. In the event a procedure is not addressed in these guidelines the Program Manager Nvill determine the best course of action. A. Owner-Occupied Rehabilitation This activity will assist eligible applicants rehabilitate single-family principal residences by making needed repairs Nvith the first priority- being to correct code violations. This activity is eligible when a completed project Nvill yield a structurally sound, safe, sanitaiy and decent single-family dwelling that meets City's building codes (see Section IX). B. Optional Reconstruction The reconstruction activity is offered when existing dwellings are not feasible for rehabilitation. Optional reconstruction provides funds to demolish existing dilapidated dwellings and reconstruct modest, energy efficient, safe and sanitaiy replacement single-family dwellings. XIIL CONTRACTOR SELECTION AND PROJECT MONITORING All applicants are responsible for finding a contractor who Nvill develop a proposal to complete approved home improvement activity. Eligible applicants may request assistance from Community Development staff to help homeov mer Nvith the bidding process. The homeovrier may elect to seek a bid proposal from a qualified contractor of their choice. Bids by contractors submitted by the applicant must be reasonable (Nvithin 10 percent, high or low, of the Community Development cost estimate). Contractors selected by the applicants must meet eligibility and insurance requirements. Contact any reputable and experienced contractor and request a bid for the required Nvork. IF YOU HAVE ANY TROUBLE FINDING A CONTRACTOR, contact any of the folloNving places for assistance: • Your local Better Business Bureau • Any friends or neighbors who have had remodeling done to their properties. • Chamber of Commerce • Community Development Contractor's List When a contractor comes to meet Nvith you, you should: • Show him/her the mandatoiy Nvork items that have been identified by the Community Development per the Nvork write up, construction plans and project standards. • Advise him/her that the bid proposal must be returned to you for submission to the rehabilitation program by a due date. DO NOT SIGN ANY AGREEMENT WITH THE CONTRACTOR. 12 Owner must submit the contractor's bid proposal to the Community Development at 601 E. Hickoiv Street, Suite B Denton, TX 76205. The Community Development staff will review the proposal to verifi- that: 1. The contractor is licensed and has all City-required insurance coverage. 2. All required improvements have been included in the bid. 3. The proposed work is in conformance with the program's General Specifications. 4. All proposed costs are reasonable (as verified by CD staff prepared cost estimate). 5. The contractor chosen by owner has not been disqualified by any local, State or Federal government agency. Any contractor whose name appears on the most current HUD or City of Denton Debarred Contractor's List will not be eligible to participate in this program. References will be checked and claims of substandard workmanship will be cause to declare a contractor ineligible. The contractor must also submit all required proof of insurance forms and bonds (if applicable). Failure to submit these will result in rejection of the bid proposal. The bid proposals that are submitted by the applicant will be reviewed by the Community Development to determine if the total bid price is reasonable per cost estimate and under the maximum allowable amount. THE CITY OF DENTON AND THE APPLICANT RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS. If the Community Development Administrator approves the bid proposal submitted by the applicant, the Community Development staff shall proceed. A construction contract must be signed. Before the contractor can start'kvork, the applicant must issue a notice to proceed. After the owner's three day right of rescission has passed, contractor must apply for and obtain approved appropriate building permits as required by the City of Denton Building Inspections Division before any work may begin. When a project involves reconstruction of a substandard home, contractor must have an approved building permit in hand prior to applying for a permit to demolish the substandard structure. The contractor's work will be monitored by the applicant, Community Development staff and the City of Denton building code inspector. If the applicant considers any work done by the contractor to be unsatisfactory or incomplete, the applicant should advise the contractor of the discrepancy and ask that it be corrected. In the event a dispute exists between the applicant and the contractor with respect to the work, the City shall take appropriate action in accordance with the provisions of the construction contract to assure that the applicant is satisfied before making any payment to the contractor. In the event a dispute cannot be resolved, the Department Director shall consider all pertinent facts and shall decide an appropriate course of action to resolve the dispute. Acceptance of Work Final Inspection: In order for the contractor to closeout a project, a final inspection shall be made by the City of Denton building code inspector, the Community Development staff, and the applicant. If the final inspection results in no additional work or no specified corrections, the applicant shall sign final payment request stating that all work has been completed to their (applicant's) satisfaction. The building code inspector shall sign a final inspection form to confirm the same. At this time, the contractor is advised to submit to the Community Development copies of all warranties and releases of liens from subcontractors and suppliers prior to contingency payment. Warranty of Work As stated in the contract, the contractor shall guarantee the work performed for a period of at least one-year from the date of final acceptance. The contractor will return in thirty (30) days and ask the applicant if any additional repairs are necessary. Any deficiencies or necessary repairs to specified work will be completed at this time. XIV. PAYMENTS TO CONTRACTOR A. The contractor shall receive approved final payment, minus a 10 percent contingency, for completed contract within 15 working days after final inspection approval. The contingency is calculated on the final contract amount by adding the total project bid amount plus or minus change orders, minus, if applicable, the cost for demolition. Contingency is withheld for thirty (30) days from the date of final acceptance by Community Development staff. After thirty days, if no additional or warranty work remains, the contractor must request 13 Nvritten approval from owner and CD staff to release Nvithheld contingency funds. Contractor must endorse the Mechanic's Lien Note over to the City of Denton and sign a release of note and lien of the Mechanic's Lien Contract before contingency payment can be released. B. A contractor may request interim-project payments throughout the course of the project. Interim payments will be made available to the contractor upon applicant and CD staff approval of any contract -,work that has been completed. Contractor Nvill submit a CONTRACTOR REQUEST FOR PAYMENT AND PERIODIC STATEMENT form to the applicant when requesting payments. C. An "All Bills Paid" affidavit and release of lien from all subcontractors and suppliers must be submitted to the Community Development before final payment can be released to contractor. Any electrical, plumbing, mechanical, Nvindow and/or other required permits, Energy Star certification, when required, and termite inspection report must also be submitted to the Community- Development prior to releasing contingency payment to the contractor. XV. CONTRACTOR DEBARMENT A. A contractor Nvill be declared ineligible to participate in projects funded by the City of Denton Home Improvement Program for one or more of the follo-,ving causes: Failure to complete a project within the prescribed contract period. Failure to complete warranty repairs within a reasonable time period. 3. Failure to use licensed plumbing and electrical subcontractors. 4. Failure to obtain City-required insurance, i.e., general contractor's liability, automobile liability and builder's risk (if applicable). 5. Failure to complete Nvork in accordance with program specifications and/or accepted standards of Nvorkmanship. 6. Failure to pay all subcontractors working on the project appropriately and/or by not submitting affidavits of payment signed by all subcontractors. Failure to obtain proper permits for Nvork in progress. Failure to treat applicants with respect and courtesy. Other offenses not described here when the Community Development Director believes a contractor's action(s) does not serve the best interest of the program, the City or the applicant. B. Contractors will be notified of their proposed debarment and will be afforded the opportunity- to comment or appeal the action. All appeals must be made in writing to CD Administrator, Community Development Division, 601 E Hickory St., Ste. B, Denton, TX 76205-4303 by the 15th day from the date of the notification letter. 14 APPENDICES Appendix 1 Qualifying Income Limits and Ranges for the City of Denton's Federally Assisted Programs Appendix 2 Target Neighborhoods Map Appendix 3 Homeowner HOME Certification and Agreement to Participate in the Home Improvement Program Owner Occupied Assistance Appendix 4 Temporary Rehousing Questionnaire and Agreement Appendix 5 Space & Amenity Allowances For Reconstruction Activities Appendix 6 Lead Based Paint Hazard Control Relocation Policy and Procedure 15 APPENDIX 1 FY 2010/2011 City of Denton Community Development Department Qualifying Income Limits for Federally Assisted Programs Rehabilitation and Optional Reconstruction Eligible Income Ranges 2-Part Loan Ratio' *60% Payable / 40% Deferred *40% Payable / 60% Deferred *25% Payable / 75% Deferred *15% Payable / 85% Deferred Owner Contribution 1 %of Total Project Cost .75% of Total Project Cost .5% of Total Project Cost .25% of Total Project Cost Income Range Moderate Low Very-Low Extremely-Low Family Size 80% AMI - 65% AMI 65% AMI - 50% AMI 50% AMI - 30% AMI <_30% AMI 1 $38,300 - $31,151 $31,150 - $23,951 $23,950 - $14,351 $14,350 or Below 2 $43,750 - $35,601 $35,600 - $27,351 $27,350 - $16,401 $16,400 or Below 3 $49,200 - $40,001 $40,000 - $30,751 $30,750 - $18,451 $18,450 or Below 4 $54,650 - $44,401 $44,400 - $34,151 $34,150 - $20,501 $20,500 or Below 5 $59,050 - $48,001 $48,000 - $36,901 $36,900 - $22,151 $22,150 or Below 6 $63,400 -$51,551 $51,550 - $39,651 $39,650 - $23,801 $23,800 or Below 7 $67,800 - $55,101 $55,100 - $42,351 $42,350 - $25,451 $25,450 or Below 8 $72,150 - $58,651 $58,650 - $45,101 $45,100 - 27,101 $27,100 or Below *In this two-part loan: Part L• Payable Loan is based on a percentage of the total City-paid project cost (see Section VILD.). The payable portion of the loan is amortized over the term of the note (60 to 240 months - see Section VILC.), and carries a 2 percent interest rate. There is no penalty for paying the payable loan off early. Part IL• Deferred Loan is based on a percentage of the total City-paid project cost (see Section VILD.). This portion of the loan carries a zero percent interest rate. For ever- month applicant complies with deed and note requirements, a fraction of the deferred loan is forgiven (on a 5-year note, 1/60, on a 10-year note 1/120, on a 15-year note 1/180, and on a 20-year note 1/240). The deferred loan terms are from between 60 to 240 months (5 to 20 years) based on project cost and/or type of assistance activity (see Section VILC.). At the end of the contract term the deferred loan is forgiven, provided applicant has satisfied all the conditions listed in the Deed of Trust and Promissoiv Note. The deferred loan is secured by a lien on the property. *Persons ate 62 or older are eligible to receive a reduction of 5% on the payable loan portion. The 5% will be included in the deferred portion of the loan. Reportable Income: Gross income for all household members aged 18 and above must be included to determine household's eligibility to receive assistance; however, some household members' incomes may be excluded when determining the payback category that the eligible household will be approved for. They are: applicant's children, grandchildren or legal guardians of the applicant who are aged 18 up to 22 and/or children aged 22 up to 25 who are full or part-time students. Incomes for household members aged 25 and older will be included in determining the payback category for the household. Income Limit Source: U. S. Department of Housing and Urban Development. Effective: 6/26/2010 Home 221(D)(3) Maximum Per-Unit Subsidy Limits For Denton - Effective: 7/1/2009 0-BDR=S107,838 1-BDR=S123,618 2-BDR=S150,319 3-BDR=S194,463 4-BDR=S213,462 95 Percent of the 2007 Single Family Mortgage Limit for Denton ($184,028) = $174,827 Effective: 4/10/2010 16 APPENDIX 2 City of Denton, Texas Targeted Neighborhoods Map Ll3~P 288 ,luPITER APGL-W } tl P, L H HERC ULE S N a ~ u s a o~w~ Ern., u a - 9. y £ynEETtl P - F 4 T a ~ y 5 , & PNR€G s SSRNE G I F 7 ~ iF x w x FEN y McnPN o T i y rReE u'' ~ P - ~ " m 'P rL ~ ~ ®riu@ L wy 9PNr95 YR1PP i ss UYWR6 KINGS ROW t nebtFlei. m 9~, q.I,ryEy 6 _ U - MP LwUN4 x%tAerepp s KINGS Ow 3 Nel ~ Gp O VI slEkq &1 x0.vY ~ Q W . K Gk 6AEENGata La PaL s MPE. ®ISTR 4 REf EaYw ¢ Lu R ~ e Q m a 0. 01 1ND SOR ftIFTWdG ® x` P+ pk s x p NC G Vt §KP % I y yl P'tl CO FI§XYIiPP W a 0. 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Ni A ~ Ruck a MORSE °ks€ F wlw o F = NoR%9 € z 3 tr w ff., SMITH G R EN P GNEp TY d~ ~ <r w " Nosey e mENG.+ nNen w Ie gNess G fl ®v o w mrcrA€IUr eiaNr aaKWOOO wEP6 6W rc y oPnIN% x N GLLti WrumWwaao m w D PaP E'll SP€Nt FP N 135 a LAUREL g P m : IT. pCp 1` - zl , C re °n A ~,,,a~ a PsrzR ex vSr' y a a o n ~ ~p2e m O PARVIN 17 APPENDIX 3 City of Denton Community Development Home Improvement Program 9) PQtfAL H©USIW~ pPP©R,Tl1NITY Homeowner HOME Certification and Participation Agreement Community Development staff: Homeowner: Homeowner's Property Address: Mailing Address (if different from above): Phone: Mobile: Fax: Email: I certify that I. Homeowner named above, am the owner/occupant of the property located at the above-referenced Street Address and that it is my principal residence. As the Homeowner, I acknowledge I am responsible for completing and returning all required documentation to the Community Development staff within the time period stated on the application materials. Required documentation will include, but is not limited to, a completed Community Development Home Improvement Program Verification of Income Application, proof of income and proof of home ownership. If I fail to provide these documents in a timely manner, or if I fail to respond to any inquiries made by Community Development staff regarding my HOME Application for Assistance, I may be disqualified from participating in this program and receiving benefits. I understand the funding limitations of the HOME program and have been instructed regarding which services I may receive. I understand a thorough inspection of my home may result in one of the following recommendations: a. REHABILITATION- Repairs are made to the existing home in order to eliminate its construction deficiencies, in accordance with the Home Improvement Program Minimum Construction Standards as established by the City of Denton Home Improvement Program. The homeowner may be required to make arrangements for relocation while the rehabilitation takes place. b. RECONSTRUCTION - Due to excessive construction deficiencies which cannot be repaired or rehabilitated sufficiently to meet required minimum construction standards, the existing structure is demolished and replaced with a newly constructed home built on the same site. Reconstructed homes must comply with 2003 International Residential Code (IRC) standards. The homeowner will be required to make arrangements for relocation while the reconstruction takes place. C. NOT ELIGIBLE - Results when the required repairs are estimated to exceed the program's previously established budget or finding limitations, or when either the Community Development staff or Homeowner elect not to allow rehabilitation or reconstruction of the home. 4. I understand that by accepting finding for rehabilitation / reconstruction of my property, I will be required to sign a deed contract that will make me legally responsible for: a. regular upkeep and maintenance of the home following rehabilitation / reconstruction: keeping my home adequately insured as described in the Home Improvement Program Policies and Procedures booklet: C. keeping all my property taxes paid when due: d. paying the loan payments in a timely manner. 5. I have reviewed the Home Improvement Program Policies and Procedures with Community Development staff and have initialed all areas included in the detailed review. I have initialed each item on the attached checklist that was reviewed in detail with me. I was provided an opportunity to ask any questions about the program, it's limitations, eligibility criteria, etc., regarding such items as contracts, minimum building standards and specifications, financial limits, type of loans, finding sources contractor selection and payments, etc., prior to signing this Homeoirlier Certz frcation cm(JAgreement to Particij)ate in the Home Improvement Program. 6. I understand it is my responsibility to arrange access to the home for building contractors, inspectors, and workers performing construction or repair services to the home. Following completion of the construction, the home will continue to be accessible for completion of punch list items and warranty work. If reasonable and timely access is denied to a building 18 contractor or inspector who is attempting to make a good faith effort to make or inspect required repairs, I will become responsible for completing the repairs at my expense. 7. I understand that the security of the property, household goods, and personal items is my responsibility and that I may be required to move and/or store personal property at my expense. If personal property is damaged, displaced or lost during the construction or inspection of the property, I will immediately report the situation to the Community Development staff, but it will be my responsibility to pursue damages for any losses through my own insurance provider. I will complete photographic and written inventory prior to the beginning of rehabilitation / reconstruction. 8. During rehabilitation / reconstruction- I will not touch, disturb, move, or otheiNvise affect, the construction areas, tools, materials and/or equipment. I will make a reasonable effort to stay away from the construction zone. 9. I will provide all existing utilities for use by Building Contractor only as they relate to the rehabilitation / reconstruction of the home. I am responsible for continuous maintenance and payment of existing utilities. 10. I will review each Building Contractor's Request for Payment and I will make a reasonable effort to inspect each item Building Contractor submits for payment prior to approving the payment request. By signing the Building Contractor's Request for Payment, I am verifying that to the best of my knowledge and belief each of the listed rehabilitation / reconstruction items has been completed according to the required standards and specification. If I am not satisfied with a particular item of repair that has been presented for payment, I may delete the items(s) until such repair is satisfactorily completed. If the repair is completed according to standards and specifications but I refuse to approve the payment request, I understand that I may be responsible for payment to Building Contractor for any lost time. Community Development staff shall resolve anti such conflicts. 11. Before approving frruzl payment I will receive a Warranty from Building Contractor. If warranty work is required during the warranty period, I will be responsible for contacting Building Contractor by telephone. If no contact is made by telephone, I will send a certified letter (with a return receipt) to Building Contractor. If Building Contractor has not responded within 30 days, I will immediately report the situation to Community Development staff. I will provide Community Development staff with copies of my receipts and letters supporting my attempt to contact Building Contractor. If warranty issues or other complaints remain unresolved, I agree to adhere to the Home Improvement Program's Dispute Resolution Policy including an informal conference and possibly, binding arbitration. Homeowner's Certification UWe certify that Uwe have read and Uwe understand this "Homeowner Certification and Participation Agreement. UWe certify that, to the best of my/our knowledge, all required documents and materials Uwe have completed and submitted to Community Development staff for my/our Application for Assistance are true and correct. UWe certify that Contract Administrator has explained to me/us, and Uwe understand the benefit options available under the Home Improvement Program. 0 UWe choose to participate in the Home Improvement Program and to comply with all Program requirements. 0 UWe choose NOT to participate in the Home Improvement Program or to receive any seivices provided and/or fimded by the Program. Signature of Homeowner Date Signature of Homeowner Date 19 APPENDIX 4 TEMPORARY REHOUSING QUESTIONNAIRE AND AGREEMENT Your participation for optional reconstruction assistance is voluntary. Reconstruction funds are limited therefore; the Program does not cover costs necessary for household to relocate during reconstruction of the property. Please complete the following questionnaire. This information will help our staff in determining if you will be eligible for optional reconstruction assistance. 1. I understand that costs will begin to incur that may include but are not limited to filing, platting, re-platting, title search, property surveys and other costs deemed necessary. I understand I will be responsible for these costs, even though project may or may not be completed. Yes No 2. 1 understand that it is my responsibility to relocate my household, before the reconstruction and after the reconstruction is completed, and that I am responsible for all costs involved to do so. I also understand that I must vacate permanently the currently occupied substandard dwelling within 10 days notice by the City. Yes No 3. 1 understand that as a result of reconstruction, my appraised property value, set by the Denton Central Appraisal, may increase significantly from the amount at which it is currently valued. Yes No 4. 1 understand that an increase in my property value may cause my property taxes to increase by a significant amount. I am financially prepared to meet any increase. Yes No 5. 1 understand that I am obligated to carry homeowner's insurance for the duration of the lien (20 years) that the City of Denton will have on my property. I understand that I must request that my insurance company list the City of Denton as a "Certificate Holder" on my policy. Yes No 6. 1 understand that my homeowner insurance premium will most likely increase as a result of the reconstruction. I am aware that my insurance policy must cover the after-reconstruction appraised value of my property. I am financially prepared to meet this increase. Yes No 7. 1 understand that I must take possession and occupy the replacement dwelling when the reconstruction is completed and the City determines it to be ready for occupancy. I understand that I may be required to resign contracts. Yes No 8. 1 understand that The City of Denton is limited in the amount of funds it can spend to reconstruct a property. I have been briefed on these limits and understand that my eligibility for optional reconstruction assistance will be granted only if it is determined that the total of all costs involved to reconstruct my property will be at or below the allowable program limit. Yes No This APPLICATION was completed by on . By signing below, I am requesting that the City of Denton's Community Development to accept this as my application to be considered for optional reconstruction assistance. Applicant's Signature Date 20 APPENDIX 5 SPACE & AMENITY ALLOWANCES FOR RECONSTRUCTION ACTIVITIES The City of Denton may provide replacement single-family modest, safe, energy-efficient, decent dwellings. An EnergyStar® qualified home. Space and room limits for replacement housing are determined by household need. Replacement housing will provide up to the following: Provided Space 1 Kitchen 1 Dining Area or Kitchenette 1 Laundry Alcove 1 Food Pantry Closet and/or Cabinet 1 Coat Closet 1 Linen Closet 1 Living Area 2-3 Bedrooms*** W/Closets** 1 or 2 Bathrooms* 1 Attached (Non-Conditioned) Storage Area Maximum Square F 2 Bedrooms 1 bath 2 Bedrooms 2 baths 3 Bedrooms 1 bath 3 Bedrooms 2 baths 4 Bedrooms 2 baths Amenities eet Allowed (Within 2 percent high or low - 985 SF -1040SF -1100 SF -1180 SF -1225 SF (***must be approved) 1 Brick Mailbox 1 HVAC Unit (14-Seer AC) 1 Front Entry Door 1 50 gallon Water Heater 2-Car Driveway Space Programmable Thermostat 1 Energy Star Refrigerator 1 Ceiling fan per bedroom and 1 in Living Room 1 Front & 1 Rear Exterior Weatherproof Electrical Outlets 1 Rear or Side Entry Door 1 Front & 1 Rear Hose Bib 1 Attic Access Stairs Standard lighting including exterior safety lights front and back 14 burner Gas or Electric Range/single Oven (appliances if needed) Flooring: Owner chooses combination and placement of Carpet/Pad, Sheet Vinyl or Tile Vinyl Flooring - maximum of one carpet and one vinyl choice per house. Grass: Sod will be installed at a minimum of 5' wide around entire foundation/perimeter, 3' wide around sidewalks and driveway. Season-appropriate seed will be spread on remainder of un-sod yard. Bathroom: *A full bathroom may be made A.D.A. accessible to accommodate a physically handicapped household member. Household may also select a 1/2 or 3/4 bath in place of a second full bath, if desired. "Clothes closets will ideally, when possible, provide a minimum of 4'X 2' of space per bedroom. 21 ***Determining Maximum Number of Bedrooms from household makeup: A household may select up to a 3 bedroom 2 bathroom house based on need. A fourth bedroom may be requested in writing when a household believes there is a valid need for the additional space. The Community Development Administrator approves requests on a case-by-case basis. Under no circumstances will this program provide space exceeding that described above. 22 , t Appendix 6 C i t DENTON Lead-Based Paint Hazard Control Policy & Procedure 'I, mj~ 23 Lead-Based Paint Hazard Control T Policy & Procedure DEN 7 The purpose of this Policy & Procedure is to provide guidance during rehabilitation of properties when lead-based paint has been identified as a hazard in homes occupied by low and moderate income families with children less than 72 months (six years) of age. The policy/procedure establishes standards, project timelines, etc., for eligible households receiving lead hazard control work through the Home Improvement Program. This policy and procedure also provides a mechanism for obtaining agreement for and approval of temporary relocation provisions. Please read the information in this policy/procedure in its entirety. If you agree with the information established for this project as outlined below, please sign and date the last page of this document and return it to the Community Development Department. Should you have any questions or concerns regarding this policy, please feel free to call (940) 349-7726 and schedule an appointment with staff. General Policies The following are general policies: • Only properties that were built before 1978, occupied by families that are approved to participate in the Home Improvement Program and have children under 72 months of age are eligible for LHCG funds (when available). Lead hazards will be completed using Federal CDBG and HOME funds when LHCG funds are not available. • Pre-hazard blood lead testing for every child less than 72 months of age within 6 months prior to the start of rehabilitation/lead remediation work is required. Blood lead testing must be completed by a qualified medical agency. The child's Blood Lead test results do not need to be provided, but documentation from the qualified medical agency must be provided documenting the child(ren) has been tested. • Funds for temporary relocation during project lead hazard control work are not provided. Since the owner occupied rehabilitation programs are entirely voluntary, the Uniform Relocation Act does not apply. (Relocation requirements during lead hazard control work for elderly households may be waived by owners when no children live in or regularly visit the property). • All backup documentation in individual project files and available for review on request. The files need to be maintained for the term of the loan. Environmental Requirements: Must comply with and meet all lead based paint regulations. Lead-based paint hazard reduction techniques will be used when lead-based paint exceeds HUD's acceptable limits for lead content in existing paint. The limits for lead content exceed HUD's limits when lead content exceeds 1 mg per cm2 (one milligram per centimeter squared), or 5000 ppm (parts per million). The reduction techniques used by this program are described and found in the U. S. Department of Housing & Urban Development's publication, Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing, issued June 1999 Page 24 .APPENDLl 6 Inspection, Risk Assessment Testing, and Clearance Procedures: All lead hazard evaluations will be conducted by risk assessors. Risk assessments may be conducted either by staff or contracted through qualifying firms. Clearance tests for projects may be conducted by clearance sampling technicians. All lead hazard control methods will fall into the category of interim controls although some activity may in fact permanently remove lead hazards. Rehabilitation Specialists will use professional judgment and expertise in determining appropriate methods to address deficient conditions based on recommendations from the risk assessment. Homeowner Protection: The Home Improvement Program requires that an Homeowner Protection Plan, includes all household members, must be in effect before lead hazard control work can commence. Safety is given first priority in determining these plans. Homeowner protection is mandatory and designed to protect homeowner(s), members of the household, pets and personal belongings during lead hazard control work. The attached Homeowner Protection Plan is specific to your lead hazard control project and was developed based on the scope of work to be completed. This Plan assures safe housing is available to the homeowner. These plans are the final decision and responsibility of the Lead Abatement Project Designer. By signing and dating the Home Improvement Relocation Approval page, you will be agreeing to the Homeowner Protection Plan that is a part of this document: Project Start Date: Once the homeowner(s) has selected a contractor a Project Start Date must be established. This date is determined through a cooperative effort and agreed upon by the contractor, homeowner(s) and Community Development staff. The three factors that must be considered to set a Project Start Date are: First: The date the contractor can actually begin the project. Contractor is to include time needed to meet the Three-day Right of Rescission requirement as well as any time needed to prepare for the project such as, ordering materials needed that must be available on the date the LHC work actually begins (windows, doors, etc.). Second: The date the homeowner(s) has prepared for all requirements of the Temporary Relocation Plans (as written above). This date must take into account all arrangements needed to be made by owner (such as hotel reservations, packing, storage, if required, and any other arrangements that must be made prior to the work beginning). Third: The date City of Denton staff can have contracts ready for signing (including a date all parties required to sign contracts will be available to sign) All parties must give priority to reaching an acceptable Project Start Date. Once a Project Start Date has been established, all parties will be notified of: Project Completion Date: The amount of time needed to complete a project is decided on a project-by-project basis but usually fluctuates from between two days and two weeks. The contractor is required to provide a set project completion date (or, provide the number of consecutive working days the project will Page 25 .APPENDLl 6 take to complete). The Lead Abatement Project Designer must approve this timeline. The Project Completion Date will become part of the project contracts. Clearance Testing Requirement: Before homeowner(s) can return to the property, the property must pass: 1.) visual inspection; 2.) dust wipe; and 3.) soil clearance tests. If clearance is not achieved on first testing results, the relocation process must be prolonged to allow contractor time to achieve clearance levels (put the levels here). Reaching clearance is the responsibility of the contractor; therefore, any additional time required to meet clearance is the contractor's responsibility. If the Project Completion Date must be extended because of a failed clearance test, liquidated damages will be enforced for every day homeowner(s) cannot return to the property. The contractor will also be responsible for lab fees, if retesting is required, and the cost of these fees will be deducted from the contract amount. Homeowner(s) will not be permitted to enter the worksite once the project has started for the duration of the hazard reduction activities until such a time that clearance testing has passed all requirements. Moving and Storage: Funds for temporary relocation during project rehabilitation/reconstruction are not provided. In most cases, household goods will not have to be moved. In the event the Lead Abatement Project Designer determines that some or all furniture and household goods must be moved out of the property, the Home Improvement Program will notify homeowner(s). If furniture needs to be moved: The homeowner(s) will be notified by Home Improvement Program of the areas where work will be conducted. These areas will need to be readily available to the contractor to begin working. If furniture needs to be moved, closets emptied, shelves cleared etc., it is the responsibility of the homeowner(s) to relocate their possessions to assist the contractors timely and efficient work schedule. The homeowner(s) is responsible for packing and storing valuable possessions. Neither the contractor nor the City of Denton is responsible for missing or damaged property that has not been properly packed and stored by the homeowner(s). It is advisable that homeowner(s) make a checklist of all valuables stored. Steps for relocating a family: A draft of relocation plan will be made by the Home Improvement Program. Contractor will submit plan of work schedule stressing all exterior work to be completed. 2. Home Improvement Program informs homeowner(s) of abatement commencement, preferably 10 days before. Home Improvement Program starts paperwork and will advise and consult regarding extended period of relocation. 4. Home Improvement Program will inform or provide the family with: a. Information of time span required for the relocation. Page 26 .APPENDLN 6 b. Everything they should take that they will need for the maximum number of days they will be relocated. C. All pets should be relocated or boarded. 7. Homeowner(s) will be made responsible for insuring that all household members are relocated during lead hazard control work and the house be made available to begin project. Homeowner(s) will provide keys to the contractor. 8. Home Improvement Program will inform Homeowner(s) of final clearance. If house does not pass clearance, then Home Improvement Program will inform property homeowner(s). Page 27 .APPENDLl 6 Home Improvement Program Lead-Based Paint Hazard Control Homeowner Protection Plan Includes all household members / pets / household goods and belongings Homeowner(s) Name: Project Address: Homeowner Protection: Pet Protection (If Applicable): Personal Belongings/Household Goods Protection: Other Instructions required for this project: Signed: Lead Abatement Project Date Plan Developed Designer Name Printed: 1.) Contract Signing Date: 2.) Project Start Date: 3.) Project Completion Date: NOTE One: If for any reason any of the dates established above cannot be met after they have been agreed upon, the party responsible for providing that date must notifi- a Home Improvement Program staff immediately to provide an alternate date. This action may cause further delays. All Page 28 .APPENDLN 6 other parties v i11 be notified if the established date must be changed and must agree to a neN-,- date. .APPENDLl 6 Page 29 Home Improvement Program Project Relocation Plan Approval Date Policy/Procedure Received: Project Address: Homeowner Name(s): Homeowner Address: 0t State: Zi : Homeowner Phone: Contractor : City State: Zip: Contractor Address: Contractor Phone: By my/our signature(s) below, Uwe acknowledge and agree to the terms as written in the Lead- Based Paint Hazard Control Policy & Procedure and the Homeowner Protection Plan. I/We understand that it is my responsibility to approve specifications; review the bids and select a contractor (subject to Home Improvement Program approval), to sign the constriction contracts and change orders, and to approve the payouts. Homeowner Signature Homeowner Signature Date Date Homeowner Signature Date Community Development staff Signature City of Denton Community Development Department 601 E. Hickory, Suite B Denton, TX 76205 940-349-7726 Page 30 .APPENDLl 6 Project Relocation Plan Approval Page 2 Steps for relocating a family: A draft of relocation plan will be made by the Home Improvement Program. Contractor will submit plan of work schedule stressing all exterior work to be completed. 2. Home Improvement Program informs property homeowner(s) of abatement commencement, preferably 10 days before. Home Improvement Program starts paperwork and will advise and consult regarding extended period of relocation. 4. Home Improvement Program will inform or provide the family with: a. Information of time span required for the relocation. b. Everything they should take that they will need for the maximum number of days they will be relocated. C. All pets should be relocated or boarded. 7. Homeowner(s) will be made responsible for insuring that all household members, pets and belongings are protected during lead hazard control work by complying with the "Homeowner Protection and Project Relocation Plans" and agree to make the house available to contractor to begin project. Homeowner(s) will provide keys, as required, to the contractor. 8. Home Improvement Program will inform Homeowner(s) of final clearance. If house does not pass clearance, then Home Improvement Program will inform property homeowner(s). Page 31 .APPENDLl 6 City of Denton Community Development Home Improvement Program 601 E. Hickory, suite B, Denton, TX 76205 HOMEOWNER'S SERVICE AGREEMENT I~we, (Owner Name), hereinafter referred to as Owner, have applied for assistance from the Home Improvement Program to complete a rehab and will include lead hazard reduction and controls on my property. If this assistance is granted, I understand that the Home Improvement Program will be inspecting my property, acting as Home Improvement Program's technical agent and monitor of the lead hazard control project for the property, which is located at Property Address. Owner's Responsibilities I understand that even though Home Improvement Program provides a deferred loan*, it is my responsibility to approve specifications; review the bids and select a contractor (subject to Home Improvement Program approval), to sign the construction contracts and change orders, and to approve the payouts. I acknowledge that I have been advised that I should inspect the svorlc as frequently as possible, and discuss with the contractor, or Home Improvement Program personnel any difficulties or poor svorlcmanship observed. I understand that once materials are in place that cost of repair or replacement is substantial. (honer Protection and Temporcuy Relocation During Lead Hazard Reduction In most jobs that require lead hazard reduction, our agency requires appropriate actions to be taken to protect owner(s) and all members of the household from lead-based paint hazards. In those cases, owner(s) or no member of the household may not enter the work-site during the lead hazard reduction activities. Re-entry is permitted only after such activities are completed and the unit has passed a clearance examination. Owners of the unit do not have to be relocated i f rehab work will not disturb lead-based paint or create lead-contaminated dust; hazard reduction activities can be completed within one 8 hour daytime period and the work-site is contained to prevent safety, health or environmental hazards; exterior-only work is being performed where the windows, doors, ventilation intakes and other openings near the work-site are sealed during hazard reduction activities and cleaned afterward, allowing for a lead free entry to be maintained; hazard reduction activities will be completed within .5 calendar days and the work- area is sealed, the area within 10 feet of the containment area is cleaned each day, owner(s) or members of the household have safe access to sleeping areas, bathroom and kitchen facilities in the same housing unit or in another convenient location; and owner(s)or members of the household are not permitted into the work-sites until after clearance has been achieved. If occupied units are to undergo more extensive lead hazard reduction activities, the owner(s) ) or members of the household must be temporarily relocated. Most often, furniture and owner's or members of the household's belongings can be covered and sealed with protective plastic sheeting, although storage of major firniture and removal of all small furnishings during the hazardous materials reduction work may sometimes be necessary. The owner(s) is responsible for carefully packing all breakables; removing all clothing from closets, etc. During the hazard reduction work, only workers trained in lead hazard reduction may enter the work- site. This means that owner(s) and members of the household are notpermitted to return to the work- site during the day or at night. Ifyou have special needs to re-enter the site, please contact your rehab specialist. Only when the unit has been cleaned to the federally- mandated standards and passed a clearance examination is it safe and permissible to return to your home. The rehab specialist will notify you with an Authorization for Re-Occupancy. Sometimes the jobs are completed in stages, with the lead hazard reduction work occurring first and the other renovation work following. In these cases interim dust lead clearance must be obtained prior to re-occupancy by the owner(s) or members of the household and other non-lead related rehabilitation workers. Final lead dust clearance must be repeated following the rehabilitation work to verify that the residence is free of lead hazards. (Note: HUD has advised that relocation of elderly owners is not typically required, so long as complete disclosure of the nature of the work is provided and informed consent of the elderly owner(s) is obtained before commencement of the work.) Home Improvement Program's Role Page 32 .APPENDLl 6 A. I understand that Home Improvement Program provides -,work-in-progress inspections tome for their protection. However, these services are not a guarantee of any type, and do not make Home Improvement Program responsible for the quality of the work, or responsible for any contractor or worker's performance. C. I understand that the staff of Home Improvement Program cannot be personally available for all inspections of each segment of the work performed on the construction site and that both Home Improvement Program and its employees, members, officers, and directors will reasonably rely on the competence and skill of each individual contractor as is normal in the course of such business negotiations, transactions, and execution of the contract. Home Improvement Program's Emergency Authority I authorize the staff of Home Improvement Program to issue emergency orders and/or instructions in the event that the Residential Construction Specialist is available to observe the work in progress, and can anticipate that without authority to issue such instructions, work will be done which will substantially alter the intentions of the homeowner(s), injure the property or violate the specifications of the contact. Upon the issuance of such orders or instructions, Home Improvement Program's Residential Construction Specialist will contact the general contractor or subcontractor most directly responsible for the work in question and the homeowner(s) as quickly as possible, and all parties will examine and approve or re-negotiate the work in question before the job proceeds. General Provisions A. I further agree to hold harmless and indemnify Home Improvement Program and its employees, members, officers, and directors, in connection with acts performed by them which would reasonably be associated with consultation, technical advice, financial counseling, loan processing, property inspections, and other related activities. B. I authorize the staff of Home Improvement Program to obtain or provide specific reports, such as personal credit reports, property title and tax searches, building code inspection reports, property appraisals, repair specifications, cost estimates, contractors bids (and such other reports which said staff deems necessaiv to perform its functions). C. Whenever the pronouns 1," "my," "we" are used in this agreement they shall mean "we," "our," and "us" respectively, if more than one owner signs below. Homeowner's Signature Date Homeowner's Signature Date Page 33 .APPENDLl 6 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler 349-8044 ACM: Jon Fortune YT- SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the approval of a Professional Services Agreement for engineering firm by and between CP&Y, Inc. and the City of Denton, Texas; providing for the expenditure of funds therefor; and providing an effective date (File 4556-$110,000 for Professional Engineering and Services). (The Public Utilities Board approved this item by a vote of (5-0). FILE INFORMATION This Professional Services Agreement is for CP&Y to provide the Solid Waste Department with general engineering services and development, design, and constriction services for various Solid Waste projects during the 2010-2011 fiscal year. CP&Y will also provide assistance and support with registration, permitting and other Texas Commission on Environmental Quality (TCEQ) Agency interface, and provide assistance with bidding processes and constriction submittal documents. The Solid Waste Department has used CP&Y on numerous solid waste projects, and they are familiar with the departmental issues concerning the TCEQ Landfill permit registration, and Landfill constriction activities. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board approved this item on July 26, 2010. RECOMMENDATION Approve a Professional Services Agreement between the City of Denton and CP&Y, Inc. in an amount not to exceed $110,000. PRINCIPAL PLACE OF BUSINESS CP&Y, Inc. Dallas, TX Agenda Information Sheet September 21, 2010 Page 2 ESTIMATED SCHEDULE OF PROJECT This Agreement is for the 2010-2011 fiscal year which begins October 1, 2010. FISCAL INFORMATION This project will be funded from account 660067592.1360.21100. Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I-.CIS-File 4»6 ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING FIRM, BY AND BETWEEN CP&Y, INC. AND THE CITY OF DENTON, TEXAS, PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE ($110,000 FOR PROFESSIONAL ENGINEERING AND DESIGN SERVICES). WHEREAS, the City Council deems that it is in the public interest to engage the engineering firm of CP&Y, Inc. (CP&Y), Dallas, Texas to provide professional engineering consulting services for the City of Denton, Texas that are related to the Denton Solid Waste Division; and WHEREAS, the Public Utility Board of Denton considered this item at its July 26, 2010 meeting and recommended approval by a vote of 5-0; and WHEREAS, City staff has reported to the City Council that there is a substantial need for the above-referenced professional engineering services, and that limited City staff cannot adequately perform the specialized services and tasks with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act," generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The preamble to this ordinance is incorporated herewith by reference as a part of this ordinance. SECTION 2: The City Manager is hereby authorized by the City Council to execute a "Professional Services Agreement for Engineering Firm" (the "Agreement") with CP&Y, Inc., Dallas, Texas, for professional engineering and design services related to professional services necessary for the Solid Waste Division, for a fee of not-to-exceed $110,000; in substantially the form of the "Agreement" that is attached hereto as Exhibit "A" and incorporated herewith by reference. SECTION 3: The award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of CP&Y and the demonstrated ability of CP&Y to perform the services needed by the City for a fair and reasonable price. SECTION 4; The expenditure of fiends as provided in the attached Agreement is hereby authorized. I SECTION 5: This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 32010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: TW ~~jj 2 Exhibit A THE STATE OF TEXAS ) COUNTY OF DENTON ) PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING FIRM THIS AGREEMENT is made and entered into as of the day of August, 2010, by and between the City of Denton, Texas, a Texas municipal corporation, with its principal office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "Owner" and the firm of CP&Y, Inc., with its corporate office at 1820 Regal Row, Suite 200, Dallas, Texas 75235, hereinafter called "Design Professional," acting herein, by and through their duly authorized representatives and officers. In consideration of the covenants, promises and the agreements herein contained, the parties hereto do mutually agree as follows: SECTION 1 EMPLOYMENT OF ENGINEERING AND DESIGN PROFESSIONAL The Owner hereby contracts with the Design Professional, a licensed Texas engineering firm, and planning consultant, as an independent contractor. The Design Professional hereby agrees to perform the services as described herein and in the Design Professional's Proposal dated June 29, 2010, limited to those tasks described therein in Exhibit A - "Proposal for Professional Services - General Engineering Services;" the General Conditions made a part hereof, and other attachments to this Agreement that are referenced herein, in connection with the Projects. SECTION 2 TERM OF AGREEMENT Time is of the essence in this Agreement. Design Professional shall begin work immediately upon the issuance of a notice to proceed from the Owner and shall complete all work in a timely manner in accordance with the time allotted for each task as established by the General Manager, Solid Waste Department and the Design Professional. All tasks are to be completed within the schedules established by the General Manager, Solid Waste Department and the Design Professional, unless the time for completion has been extended by the General Manager, Solid Waste Department. SECTION 3 COMPENSATION The Owner shall compensate the Design Professional as follows: 3.1 BASIC SERVICES. Page 1 Exhibit A 3.1.1 For Basic Services the total compensation including reimbursable expenses shall be not to exceed $110,000 based on the hourly rates for services shown in Exhibit "A" and Section 3.2.1. Design Professional services shall be invoiced to the Owner monthly. 3.1.2 Progress payments shall be paid to the Design Professional monthly for the Basic Services invoiced and satisfactorily completed. 3.2 ADDITIONAL SERVICES. 3.2.1 Compensation for professional services is as follows per Exhibit "A" (through December 31, 2011): Principal $185-230 per hour Senior Associate Engineer $170-215 per hour Senior Engineer $135-180 per hour Project Engineer $95-160 per hour Engineer in Training $75-120 per hour Drafter/Technician $55-95 per hour Clerical/Administrative $35-65 per hour 3.2.2 Compensation for Additional Services of consultants, including any additional structural, mechanical and electrical engineering services shall be based on a multiple of 1.0 times the amounts billed to the Design Professional for such additional services. 3.3 REIMBURSABLE EXPENSES. Reimbursable Expenses shall be a multiple of 1.0 times the expenses incurred by the Design Professional, the Design Professional's employees and consultants in the interest of the Project as defined in the General Conditions. SECTION 4 ENTIRE AGREEMENT This Agreement includes this executed agreement and the following documents all of which are attached hereto and made a pant hereof by reference as if fully set forth herein: City of Denton General Conditions to Agreement for Architectural or Engineering Services. 2. Exhibit "X'- Proposal for Professional Services - General Engineering Services - Fiscal Year 2011 (Letter to Vance Kemler, General Manager, Solid Waste Department dated June 29, 2010) These documents make up the Agreement documents and what is called for by one shall be as binding as if called for by all. In the event of an inconsistency or conflict in any of the provisions of the Agreement documents, the inconsistency or conflict shall be resolved by giving precedence to Page 2 Exhibit A this Professional Services Agreement for Engineering Firm, then to the Agreement documents in the order in which they are listed above. This Agreement is signed by the parties hereto effective as of the date first above written. "OWNER" By: ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA/BURGESS, CITY ATTORNEY By: U CITY OF DENTON, TEXAS A Texas Municipal Corporation GEORGE C. CAMPBELL CITY MANAGER "DESIGN PROFESSIONAL" CP&Y, INC. A Texas Corporation By: WILLIAM R. HINDMAN, P.E. Its Vice President WITNESS: By:- u Page 3 Exhibit A CITY OF DENTON GENERAL CONDITIONS TO AGREEMENT FOR ARCHITECTURAL OR ENGINEERING SERVICES ARTICLE 1. ARCHITECT OR ENGINEER'S RESPONSIBILITIES 1.1 The Architect or Engineer's services consist of those services for the Project (as defined in tite agreement (the "Agreenient'~ and proposal (the "Proposal") to which these General Conditions are attached) performed by use Architect or Engineer (hereinafter called the "Design Professional") or Design Professional's employees and consultants as enumerated in Articles 2 and 3 of these General Conditions as modified by the Agreement and Proposal (the "Services"). 1.2 The Design Professional svi11 perforin all Services as an independent contractor to the prevailing professional standards consistent with the level of Bare and skill ordinarily exercised by members of the saute profession currently practicing in the same locality tinder similar conditions, including reasonable, informed judgments and prompt timely= actions (the "Degree of Care'), The Services shall he performed as expeditiously as is consistent with the Degree of Care necessary for the orderly progress of the Project. Upon request of the Owner, the Design Professional shall submit for the Owner's approval a schedule for the pcrfomance of the Services which may be adjusted as the Project proceeds, and shall include allowances for periods of time required for the Owner's review and for approval of submissions by authorities having jurisdiction over the Project. Time limits established by this schedule and approved by the Otcner shall not, except for reasonable cause, be exceeded by the Design Professional or Owner, and any adjustments to ibis schedule shall be mutually acceptable to both parties. ARTICLE 2 SCOPE OF BASIC SERVICES 2.1 BASIC SERVICES DEFINED The Design Professional's Basic Services consist of those described in Sections 2.2 through 2.6 of these General Conditions and include without limitation normal stinctural, civil, mechanical and electrical engineering services and any other engineering services necessary to produce a comptetc and accurate set of Constmctiort Documents, as described by and required in Section 2.4. The Basic Services Wray be modified by the Agreement. 2,2 SCHEMATIC DESIGN PHASE 2,2.1 Thte Design Professional, in consultation with the Owner, shall develop a written program for the Project to ascertain Owners needs and to establish the requirements for rte Project. 2.2.2 The Design Professional shall provide a preliminary evaluation of the Owners program, constriction schedule and construction budget requirements, each in terns of the other, subject to tine limitations set forth in Subsection 5,2. 1. 2.2.3 The Design Professional shall review with the OwTter alteniative approaches to design and construction ofthe Project. 2.2.4 Based out the mutually agreed-upon program, schedule and construction budget requirements, tlae Design Professional shall prepare, for approval by the Owner, Schematic Design Documents consisting of drawings and other documents illustrating die scale and relationship of Project components, The Schematic Design shall contemplate compliance with all applicable laws, statutes, ordinances, codes and regulations. 2.2.5 The Design Professional shall submit to the Owner a pre€imiuahy detailed estimate of Construction Cost based on current area, volume or other unit costs and ,A ich indicates the cost of each category of work involved in constructing the Project and establishes an elapsed tittle factor for the period of time from the commencement to the completion of construction. 2.3 DESIGN DEVELOPMENT PHASE 2.3.1 Based on the approved Schematic Design Documents and any adjustments authorized by the Owner ill the program, schedule or construction budget, the Design Professional shall prepare for approval by the Owner, Design Development Documents consisting of drawings and other documents to fix and describe the size and character of the Projecl as to architectural, structural, mechanical and electrical systems, materials and such other elements as may be appropriate, which shall comply with all applicable laws, statutes, ordinances, codes and regulations. Notwithstanding Owners approval of the documents, Design Professional represents that the Documents and specifications will be sufficient and adequate to fidfill the purposes of the Project. 2.3.2 The Design Professional shall advise the Owner of any adjustments to the preliminaryestiutate of Construction Cost in a further Detailed Statement as described in Section 12.5, 2,4 CONSTRUCTION DOCU,NIENTS PHASE 2.4.1 Based on the approved Design Development Documents and any further adjustments in the scope or quality of tlhe Project or in the construction budget authorized by the Owner, the Design Professional shall prepare, for approval by tlhe Ownter, Construction Documents consisting of Drawings and Specifications setting forth in detail requirements for the construction of the Project, which shall comply with all applicable laws, statutes, ordinances, codes and regulations. 2,4.2 The Design Professional shall assist the Owner in the preparation of the necessary bidding or procurement information, bidding or procurement fortis, the Conditions of the contract, and the fora ofAgreenaent between t€le Owner and contractor. 2.4.3 'fhe Design Professional shall advise the Owner of any adjustments to previous preliminary estimates of Construction Cost indicated by changes in requirements or general market conditions. 2.4.4 The Design Professional shall assist the Owner in connection with the Ownhers responsibility for filing documents required for the approval of governmental authorities having jurisdiction over the Project. 2.5 CONSTRUCTION CONTRACT PROCUREMENT 2.5.1 Tile Design Professional, following the Owners approval of t€te Construclion Documents and of the latest preliminary detailed estimate of Construction Cost, shall assist the Owner in procuring a construction contract for the Project through any procurement method that is legally applicable to the I'rojeet inchding ,vi4hout Page 4 Exhibit A limitation, the competitive sealed bidding process. Although the Owner will consider the advice ofthe Design Professional, the award of the construction contract is in the sole discretion ofthe Owner. 2.5.2 If the construction contract amount for the Project exceeds the total corstr ction cost of the Project as set forth it) the approved Detailed Statement of Probable Construction Costs of the Project submitted by the Design Professional, then the Design Professional, at its sole cost and expense, will revise [lie Constructions e Documents as rnay be required by the Ginter to reduce or niodify the quantity or quality of the work so that the total construction cost of the Project will not exceed a the total construction cost set forth in the approved Detailed Statement of Probable Construction Costs. 2.6 CONSTRUCTION PHASE -ADMINISTRATION OF THE CONSTRUC'F'FON CONTRACT 2.6.1 The Design Professional's responsibility to provide Basic Services for the Constriction Phase under this Agreement commences with the award of the Contract for Construction and terminates at the issuance to tine Owner oftlte final Certificate for Payment, unless extended tinder the temps of Subsection 5.3.2. 2,6,2 The Design Professional shall provide detailed administration of the Contract for Construction as set forth below. For design professionalss the administration shall also be in accordance with AIA document A201, General Conditions of the Contract for Construction, current as of tine date of the Agreement as may be amended by the City of Denton special conditions, unless otherwise provided in the Agreement. For engineers the administration shall also be in accordance with the Standard Specifications for Public Works. Construction by the North Central Texas Council of Governments, current as of the date of the Agreement, unless otherwise provided in the Agreement. 2.63 Construction Phase duties, responsibilities and limitations of authority of tile Design Professional shall not be restricted, modified or extended without written agreement ofthe Ownerand Design Professional. 2.6.4 The Design Professional shall be a representative of and shall advise and consult with the Ovvater (1) during construction, and (2) at lice Ovvnrers direction from time to time during the correction, or warranty period described in the Contract for Construction. The Design Professional steal[ have authority to act on behalf of the Owner only to the extent provided in the Agreement and these General Conditions, unless otherwise modified by written instrument. 2.6.5 The Design Professional shall observe the construction site at least one time a week, while construction is in progress, and as reasonably necessary while consinic(ion is not in progress, to become familiar with the progress and quality of the work completed and to determine if the work is being performed in a manner indicating that the work Mien completed will lie in accordance with (he Contract Documents. Design Professional shall provide Owner a written report subsegncrt to cacti on-site visit. On the basis of oil-site obsen:ations the Design Professional shall keep the Ovvncr unformed of the progress and quality of the work, and shall exercise the Degree of Care and diligence in discovering and promptly reporting to the Owner any observable defects or deficiencies in lite work ofContractor or any subcontractors. The Design Professional represents that he will fallow Degree of Care in perfonming all Services under the Agreement. The Design Professional shall promptly correct any defective designs or specifications furnished by the Design Professional at no cost to the Owner. The Owniers approval, acceptance, use of or payment for all or any part of the Design Professional's Services hereunder or of the Project itself shall in tto way alter the Design Professional's obligations or the Owner's rights hereunder. 2.6.6 The Design Professional shall not have control over or charge of and shall not be responsible for constmet'son means, inethods, techniques, sequences or procedures, or for safety precautions and programs in connection with the work. The Design Professional shall not be responsible for the Contractors schedules or failure to carry out the work in accordance with the Contract Documents except insofar as such fai[tire may result from Design Professional's negligent acts or omis- sions. The Design Professional shall not have control over or charge of acts or omissions of the Contractor, Subcontractors, or their agents or employees, or of any other persons performing potions of the work. 2.6.7 Tile Design Professional shall at all times have access to the work wherever it is in preparation or progress. 2.6.8 Except as may otherwise be provided in tine Contract Documents or when direct communications ]rave been specially authorized, the Owner and Contractor shall communicate through the Design Professional. Communications by and with the Design Professional's consultants shall be through the Design Professional. 2.6.9 Based on the Design Professional's observations at rue site of the work and evaluations of the Contractor's Applications for Payment, the Design Professional shall review and certify tine amounts due the Contractor. 2.6.111 Tlie Design Professional's certification forpaynmcnt shall constitute a representation to the Owner, based on tile Design Professional's observations at the site as provided in Subsection 2.6.5 and on the data comprising the Contractor's Application for Payment, that the work has progressed to the point indicated and that the quality of the Work is in accordance with the Contract Documents. The foregoing representations are subject to minor deviations from ilte Contract Documents cor- rectable prior to completion and to specific qualifications expressed by Cite Design Professional, Tile issuance of a Certificate for Payment shall further constitute a representation that the Contractor is entitled to payment in the amount certified. However, the issuance of a Certificate for Payment shalt not be a representation that the Design Professional has (1) reviewed construction means, methods, techniques, sequences orprocedures, or (2) ascertained how or for what purpose ate Contractor has used money previously paid on account of the Contract Sum. 2.6.11 The Design Professional shall have the responsibility and authority to reject work which does not conform to the Contract Documents. Whenever the Design Professional considers it necessary or advisable for implementation of the intent of the Contract Documents, the Design Professional will have authority to require additional inspection or testing of tine work in accordance with the provisions of the Contract Documents, whether or not such Work is fabricated, installed or completed. However, neither (his authority ofthe Design Professional nor a decision made in good faith either to exercise or not exercise such authority shall give rise to a duty or responsibility of the Design Professional to the Contractor, Subcontractors, material and equipment suppliers, their agents or employees or other persons perfonming portions of the work. 2.6.12 The Design Professional shall review and approve or take other appropriate action upon Contractor's submittals such as Shop Drawings, Product Data and Samples for the purpose of (1) detennining compliance with applicable laws, statutes, ordinances and codes; and (2) detemriuting whether or not the work, Aben completed, will be in compliance Mill the requirements of the Contract Documents. The Design Professional shall act with such reasonable promptness to cause no delay in lite work or in the construction of the Omier or of separate contractors, while allowing sufficient time in the Design Professional's professional judgment to pennit adequate review. Review of such submittals is not conducted for the purpose ofdetennining the accuracy and completeness ofother delails such as dimensions and quantities or for substantiating instructions for installation or pertorrnance of equipment or systems designed by (he Contractor, all of which remain the responsibility of the Contractor to the extent required by tine Contract Documents. The Design Professional's review shall not constitute approval of safely precautions or, unless otherwise specifically stated by the Design Professional, of construction nmeans, methods, techniques, sequences or procedures. The Design Professional's appmvat of a specific item shall not indicate approval of an assembly of which tine item is a component. 11'Iteut professional certification of perfonnuance characteristics Page 5 Exhibit A of materials, systems or equipment is required by the Contract Documents, the Design Professional shall be entitted to rely upon such cettifucafton to establish that the materials, systems or equipment will tweet the performance criteria required by the Contract Documents. 2.6.13 the Design Professional shall prepare Change Orders and Construction Change Directives, with supporting documentation and data if deemed necessary by tine Design Professional as provided in Subsections 3. 1.1 and 3.3.3, for the Owner's approval and execution in accordance with the Contract Documents, and ntay authorize minor changes in the work not involving an adjustment in the Contract Sum or an extension of the Contract Time which are not inconsistent with the intent oftlte Contract Documents. 2.6.14 On behalf of the Owner, the Design Professionat shall conduct inspections to determine cite dates of Substantial Completion and Final Completion, and if requested by the Owner shall issue Certificates of Substantial and Final Completion. Tlse Design Professional will receive and review written guarmtees and related documents required by the Contract for Constrmclion to be assembled by the Contractor and shall issue a final certificate for Payment upon compliance with the requirements of the Contract Documents. 2.6.15 The Design Professional shall interpret and provide recommendations on nkalters concerting performance of the Wiwi- and Contractor under the requirensenis of the Contract Documents on written request of either the Owner or Contractor. The Design Professional's response to such requests shall be made with reasonable promptness and within any time limits agreed upon. 2.6.16 Interpretations and decisions oftlte Design Professional shall be consistent with the intent of and reasonably inferable from the Contract Documents and shall be in wriftng or irn tlne fonts ofdnnvings. When snaking such interpretations and initial decisions, the Design Professional shall endeavor to secure faithful perforrttance by both Owner and Contractor, and shall not be liable for results or interpretations or decisions so rendered in good faith in accordance with all clue provisions of this Agreement and in the absence ofnegligence. 2.6.17 The Design Professional shalt render written decisions within a reasonable time out all claims, disputes or other matters in question between the Owner and Contractor relating to tine execution or progress of the work as provided in the Contract Documents. 2.6.18 Tlne Design Professional (1) shall render services under the Agreement in accordance with the Degree of Care; (2) will reimburse the Owner for all damages caused by the defective designs the Design Professional prepares; and (3) by acknowledging payment by the Owner of any fees due, shall not be released from any rights the Owner may have under the Agreement or diminish arty ofthe Design Professional's obligations thereunder. 2.6.19 The Design Professional shall provide the Owner with four sets of reproducible prints showing all significant changes to tine Construction Documents during the Construction Please. ARTICLE 3 ADDITIONAL SERVICES 3.1 GENERAL 3.1.1 `Ilse services described in this Article 3 are not included in Basic Services unless so identified its tine Agreement or Proposal, and they shall be paid for by the Owner as provided in the Agreement, in addition to the compensation for Basic Services. The services described under Sections 3.2 and 3.4 shall only be provided if authorized or confined in writing by the Owner. ]fservnces described under Contingent Additional Services in Section 33 are required due to circumstances beyond the Design Professional's control, the Design Professional shall notify the Owner in writing and shall not commence such additional services until it receives written approval from the Owner to proceed. If the Owner indicates in writing that all or pare of such Contingent Additional Services are not required, the Design Professional shall have no obligation to provide those services. Owner will be responsible for compensating the Design Professional for Contingent Additional Services only if they are not required due to rho negligence or fault of Design Professional. 3.2 PROJECT REPRESENTATION BEYOND BASIC SERVICES 3.2,1 If snore extensive representation at the site than is described in Subsection 2.6.5 is required, the Design Professional shall provide one or more Project Representatives to assist in carrying out such additional on-site responsibilities. 3.2.2 Project Representatives shall be selected, employed and directed by the Design Professional, and the Design Professional shall be compensated therefor as agreed by the Owner and Design Professional. 3.3 CONTINGENT ADDITIONAL SERVICES 3.3.1 Making material revisions in Drawings, Specifications or other documents when such revisions are: 1. inconsistent with approvals or instructions previously given by the Owner, including revisions made necessary by adjustments in the Owner's program or Project budget 2, required by the enactnnernt or revision ofcodes, ]aws or regulations subsequent to [lie preparation ofsucln docunseuts, or 3. due to changes required as a restslt of the Ow ncr s failure to render decision in a tiruelp ntanuner. 332 Providing services required because of significant changes in the Project including, but not limited to, size, quality, complexity, or the Owner's schedule, except for services required under Subsection 2.5.2, 3.3.3 Preparing Drawings, Specifications and other documentation and supporting data, and providing other services in connection with Change Orders and Construction Change Directives. 3.3.4 Providing consultation concerning replacement of work dansaged by fire or other cause during construction, and furnishing services required in connection with tine replacement ofsuch work. 3.3.5 Providing services nnade necessary by the default of ilic Contractor, by major defects or deficiencies in the work of the Contractor, or by failure of performance of either the Owner or Contractor tinder tire Contract for Construction. Page 6 Exhibit A 3.3.6 Providing services in evaluating as extensive number ofclaints submitted by file Contractor or others in connection with the work. 3.3.7 Providing services in connection with a public hearing, arbitration proceeding or legal proceeding except where the Design Professional is party thereto 3.3.8 Providing services in addition to those required by Article 2 for preparing doctanems for alternate, separate or sequential bids or providing services in connection with bidding or construction prior to the completion ofthe Construction Documents Phase. 3.3.9 Not-,01istanding anything contained in the Agreement, Proposal or these Gcnemi Conditions to the contrary, all services described in this Article 3 that are caused or necessitated in whole or in part due to the negligent act or omission of the Design Professional shall bee perforated by the Design Professional as a part of the Basic Services under the Agreement with no additional compensation above and beyond the compensation due tine Design Professional for the Basic Services. The intervening or concurrent negligence ofthe Owner shall not limit the Design Professional's obligations under this Subsection 3.3.9. 3.4 OPTIONAL ADDITIONAL. SERVICES 3.4.1 Providing financial feasibility or other special studies. 3.4.2 Providing planning surveys, site evaluations or comparative stndics ofprospective sites. 3,43 Providing special surveys, environmental studies and submissions required for approvals of governmental authorities or others having jurisdiction over the Project. 3,4.4 Providing sea=ices relative to future facilities, systems and equipment. 3.4.5 Providing services to investigate existing conditions or facilities or to make measured drawings thereof. 3.4.6 Providing services to verify the accuracy ofduawings or other infomnation furnished by the Owner. 3.4.7 Providing coordination of construction performed by separate contractors or by the Owner's ownn forces and coordination of services required in connection with construction performed and equipment supplied by the Owner. 3.4.8 Providing detailed quantity surveys or inventories ofmaterial, equipment and labor. 3.4,9 Providing analyses of operating and maintenance costs. 3.4.10 Making investigations, iuveuntories of ma€crials or equipment, orvaluatiois and detailed appraisals ofexisting facilities, 3.4,12 Providing assistance in the utilization of equipment or systems such as testing, adjusting and balancing, preparation of operation and maintenance manuals, training personnel for operation and maintenance and consultation during operation. 3.4.13 Providing interior design and similar services required for or in connection with the selection, procurement or installation of furnilure, furnishings and related equipment. 3.4.14 Providing services other than as provided in Section 2.6.4, after issuance to the Owner of the final Certificate for Payment and expiration of the Warranty period ofthe Contract for Construction. 3.4.15 Providing services ofconnsultants for other than arehiteemral, civil, structural, mechanical and electrical engineering portions ofthe Project provided as a part of Basic Services. 3.4.16 Providing any other services not otherwise included in this Agreement or not customarily furnished in accordance with generally accepted architectural practice. 3.4,17 Preparing a set of reproducible record drawings in addition to those required by Subsection 2.6.19, showing significant changes in the work made during con- struction based on nnarked-up prints, drawings and other data famished by the Contractor to the Design Professional. 3.4.18 Notwithstanding anything contained in (lie Agreement, Proposal or these General Conditions to the contrary, all services described in this Article 3 that are caused or necessitated in whole or in part due to the negligent act or omission ofthe Design Professional shall be perforated by the Design Professional as a part ofthe Basic Services under the Agreement with no additional compensation above and beyond the compensation due the Design Professional for the Basic Services. The intervening or concurrent negligence ofthe Owner shall not limit the Design Professional's obligations under this Subsection 3.4.18. ARTICLE 4 OWNER'S RESPONS113ILITiES 4.1 The O%vner shalt consult with the Design Professional regarding requirements for the Project, including (1) the Ownners objectives, (2) schedule and design constraints and criteria, including space requirements and relationships, tlexibitity, expendability, special equipment, systems and site requirements, as more speci- fically described in Subsection 2.2.1. 4.2 'fie Owner shall establish and update an overall budget for the Project, including the Construction Cost, the Owanees other costs and reasonable contingencies related to all of these costs. 43 If requested by the Design Professional, the Owner shall famish evidence that financial arrangements have been made to fulfill the Owner's obligations under this Agreement. 4,4 'flee ONvner shall designate a representative authorized to act on tine Ownners behalfwvith respect to the Project. The Omier or such authorized representative shall render decisions in a timely manner pertaining to documents submitted by the Design Professional in order to avoid unreasonable delay in the orderly and sequential progress ofthe Design Professional's services. Page 7 Exhibit A 4.5 Where applicable, lite Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the Project, and a written legal description of the site. The surveys and legal information shall include, as applicable, grades and lines of streets, alleys, pavements and adjoining property and structures; adjacent drainage; rights-of-way, restrictions, easements, encroachments, zoning, deed restrictions, boundaries and contours of the site; locations, dituensions and necessary data pertaining to existing buildings, other improvcruennts and trees; and information concerning available utility services and lines, both public and private, above and below grade, including inverts and depths. All the inforniatiot on the survey shat I be referenced to a project berichtmark. 4.6 Where applicable, the Otv~ner shall furnish the services ofgeotechnical engineers when such sen ices are requested by lite Design Professional. Such services nnay include but are not limited to lest borings, test pits, detenninations ofsotl bearing values, percolation tests, evaluations ofhazardous ninterials, ground corrosion and m- sistivity tests, including necessary operations for anticipating sub-soil conditions, with reports and appropriate professional recommendations. 4.6.1 The Owner shall furnish the services of other consultants when such services are reasonably required by the scope of the Project and are requested by the Design Professional and are riot retained by the Design Professional as part of its Basic Services or Additional Services. 4.7 When not a part of the Additional Services, the Owner shall furnish structural, mechanical, chemical, air and water pollution tests, tests of hazardous materials, and other laboratory and environmental tests, inspections and reports required by taw or lite Contract Documents. 4.8 The Owner shall fimmish all legal, accounting and insurance counseling services as may be necessary at any tinnc for the Project, including audifnng services the Ownter may require to verify the Contractor's Applications for Payment or to ascertain how or for what purposes the Contractor has used the nioney paid by or on behalfofthe Ovvner. 4,9 The services, hnfornmation, surveys and reports required by Owner under Sections 4.5 through 4.8 shall be finished at the Owvnces expense, and the Design Professional shall be entitled to rely upon the accuracy and completeness thereof in the absence of any negligence on the part of the Design Professional. 4.10 The 0w71er shall give prompt written notice to the Design professional if the Owne€ becomes aware of any fault or defect in the Projector nonconformance with the Contract Documents. 4.11 Design Professional shall propose language for certificates or certifications to be requested of the Design Professional or Design Professional's consultants and shall submit such to the Owner for review and approval at teatt fourteen (14) days prior to execution. The Owner agrees not to request eerl'sfications that would require knowledge or services beyond the scope of the Agreement. ARTICLE 5 CONSTRUCTION COST 5.1 CONSTRUCTION COST DEFINED 5.1.1 The Construction Cost shall be the total cost orestimated cost to the Owncr ofall elements ofthe Project designed or specified by the Design Professional. 5.1.2 1-he Construction Cast shall include Cite cost at current market rates of labor and materials furnished by the O%v~ner and equipment designed, specified, selected or specially provided for by lite Design Professional, plus a reasonable allowance for the Contractors overhead and profit. In addition, a reasonable allowance for con- tingencies shall be included for market conditions at the time ofbidding and for changes in the work during construction. 5. 1.3 Construction Cost does not include the compensation of the Design Professional and Design Professional's consultants, the costs of the land, rights-of-way, financing or other costs which are the responsibility of the Owner as provided in Article 4. 5.2 RESPONSIBILITY FOR CONSTRUCTION COST 5.2.1 Evaluations of the Owner's Project budget, preliminary estimates of Construction Cost and detailed estimates of Construction Cost prepared by the Design Professional represent the Design Professional's best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Design Professional nor the Owner has control over the cost of labor, materials or equipment, over the Contractors methods of detennining bid prices, or over competitive bidding or market conditions. Accordingly, the Design Professional cannot mud does not warrant or represent that bids or cost proposals will riot vary from the Owners Project budget or from any estimate of Construction Cost or evatuation prepared or agreed to by the Design Professional. 5.2.2 1\'o fixed limit of Construction Cost shall be established as a condition of the Agreement by the furnishing, proposal or establishment of a Project budget, unless such fixed limit has been agreed upon in writing and signed by the parties thereto. Ifsuch a fixed limit has been established, the Design Professional shall be pennitted to include contingencies for design, bidding and price escalation, to determine what materials, equipment, component systens and types or construction are to be included in the Contract Documents, to ntake reasonable adjustments in the scope of the Project and to include in the Contract Documents alternate bids to adjust the Construction Cost to the fixed linnit. Fixed limits, if rosy, shall be increased in the amount of an increase in the Contract Sum occurring after execution of the Contract for Construction. 5.2.3 If the Procurement Phase has not commenced within 90 days after the Design Professional submits the Construction Documents to the Ovvner, any Project budget or fixed limit of Construction Cost shall be adjusted to reflect changes in the general level of prices in the construction industry between the date of submission ofthe Construction Documents to the Owner and the date on which proposals are sought. ARTICLE 6 011'NERSHiP AND USE ON DOCUMENTS 6.1 The Drawings, Specifications and other documents prepared by the Design Professional for this Project are instruments of tine Design Professional's service and shall become the property of the Owner upon temunation or completion of the Agreement. The Design Professional is entitled to retain copies of all such documents. Such documents arc intended only be applicable to this Project, and Owner's use of such documents in other projects shall be al Owrter s sole risk and expense. In the event the Owner uses any of tine infornation or materials developed pursuant to the Agreement in another project or for other purposes than are specified is the Agreement, the Design Professional is released from any and all liability relating to their use in that project 6.2 Submission or distribution of documents to nneet official regulatory requirements or for similar purposes in connection Lvith the Project is not lobe consintcd as publication in derogation of rite Design Professional's reserved rights. Page 8 Exhibit A ARTICLE 7 TERMINATION, SUSPENSION OR ABANDONMENT 7.1 The Design Professional nnay tenuiuate file Agreement upon not less than thirty days written notice should the Owner fail substantially to perform in accordance with the tenors of the Agreement through no fault of the Design Professional. Owner may tcnminate the Agreement or any phase thereof with or without cause upon thirty (30) days prior written notice to tine Design Professional. All work and labor being performed under tine Agreement shall cease immediately upon Design Professional's receipt of such notice. Before the end of the thirty (30) day period, Design Professional shall invoice the Owner for all work it satisfactorily performed prior to the receipt of such notice. No amount shall be due for lost or anticipated profits. All plains, field surveys, and other data related to the Project shall become property of the Owner upon termination of the Agreement and shall be promptly delivered to the Owner in a reasonably organized form. Should Owner subsequently contract with a new Design Professional for continuation ofservices on the Project, Design Professional shall cooperate in providing inforniation. 7.2 If the Project is suspended by the Owner for more than 30 consecutive days, the Design Professional shall he compensated for services satisfactorily performed prior to notice ofsuch suspension. When the Project is resumed, lite Design Professional's compensation shall be equitably adjusted to provide for expenses incurred in the inters-option and resumption of the Design Professional's services. 7.3 The Agreement may be terminated by the Owner upon not less than seven days written notice to [lie Design Professional in tine event that the Project is permanently abandoned. If the Project is abandoned by the Owner for more than 90 consecutive days, tine Design Professional or the Owner may lenninate the Agreement by giving xvritlen notice. 7.4 Failure ofthe Owner to make payments to the Design Professional for work satisfactorily completed in accordance with the Agreement shall be considered substantial non- perforntance and cause for termination. 7.5 If the Owner fails to make payment to Design Professional within thirty (30) days of receipt of a statement for services properly and satisfactorily performed, the Design Professional may, upon seven days written notice to the Owner, suspend performance ofservices under tine Agreenicnt. 7.6 In flue event of termination not lite fault of the Design Professional, the Design Professional slial l be compensated for services properly and satisfactorily performed prior to temninatlon. ARTICLE 8 PAYMENTS TO THE DESIGN PROFESSIONAL 8.1 DIRECT PERSONNEL EXPENSE 8.1.1 Direct Personnel Expense is defined as the direct salaries of the Design Professional's personnel engaged rut the Project and the portion of the cost of their mandatoryand customary contributions and benefits related (hereto, such as emplo}nient taxes and other statutory employee benefits, insurance, sick leave, holidays, vacations, pensions and similar contributions and benefits. 8.2 REIMBURSABLE EXPENSES 8.2,1 Reimbursable Expenses are in addition to compensation for Basic and Additional Services and include expenses incurred by the Design Professional and Design Professional's employees and consultants in the interest of the Project, as identified in the following Clauses. 8.2,13 Expense of transportation in connection with the Project; expenses in connection with authorized out-of-town travel; long-distance communications; and fees paid for securing approval ofauthorities having jurisdiction over the Project. 8.2.1.2 Expense of reproductions (except the reproduction of (he sets of documens referenced in Subsection 2.6.19), postage and handling of Drawings, Specifications and other documents. 8.11.3 If authorized in advance by tine Owner, expense ofovertine work requiring higher than regular rates. 8.2.1.4 Expense of renderings, nnodels and mock-ups requested by the Owner. 8.2.1.5 Expense ofconiputer--aided design and timfling equipment time when used in cormection with the Project. 8.2.1.6 Otlier expenses tilat are approved in advance in writing by the Owner. 8.3 PAYMENTS ON ACCOUNT OF BASIC SERVICES 8.3.1 Payments for Basic Services shall be made fuomthty and, where applicable, shall be in proportion to sewiices performed within each phase of service, on tine basis set forth in Section 3 of the Agreement and the schedule of-work. 8.3.2 If and to the extent that the time initially established in ]he Agreement is exceeded or extended through no ftuh of the Design Professional, compensation for any services rendered during line additional period of time shall be computed in the manner set forth in Section 3 of Lite Agreement. 8.3.3 When compensation is based on a percentage of Construction Cost and any portions of the Project are deleted or otherwise not constructed, compensation for those portions of the Project shall he payable to the extent services are perforined on those portions, in accordance with the schedule set forth in Section 3 of the Agreement based on (1) the lowest bona fide bid or (2) if no such bid or proposal is received, the most recent preliminary estimate of Construction Cost or detailed es(innate of Construction Cost for such portions of (he Project. 8.4 PAVMENTS ON ACCOUNT OF ADDITIONAL SERVICES 8.4.1 Payments on account of tine Design Professional's Additional Services and for Reimbursable Expenses shall be node monthly within 30 days afler the presentation to the Owner of the Design Professional's statement ofservices rendered or expenses incurred. 8.5 PAYMENTS WITHHELD No deduclions shall be made from the Design Professional's eonnpensation on account ofpenalty, liquidated damages or other sunns withheld from payments to contractors, or on account ofthe cost of changes in the work other than those for which the Design Professional is responsible. Page 9 Exhibit A 8.6 DESIGN PROFESSIONAL'S ACCOUNTING RECORDS Design Professional shall make available to Owner or omiees authorized representative records of Reimbursable Expenses and expenses pertaining to Additional Services and services performed on the basis of a multiple of Direct Personnel Expense for inspection and copying during regular business hours for three years after the date of the final Certificate of Payment, or until any litigation related to the Project is final, whichever date is later. ARTICLE 9 INDEMNITY 9.1 The Design Professional shall indemnify and save and field harmless the Owner and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the Owner, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from tine negligent acts or omissions ofthe Design Professional or its officers, shareholders, agents, or employees in the performance of the Agreement. 9.2 nothing herein shall be construed to create a liability to any person who is not a party to the Agreement, and nothing herein shall waive any of Ate parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to the Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE 10 INSURANCE: During tine perfarnance of the Services under the Agreement, Design Professional shall maintain the following insurance with an insurance company licensed or authorized to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: 10.1 Comprehensive General Liability insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $2,000,000 in the aggregate, and with property damage limits of not less than 5100,000 for each occurrence and not less than $250,000 in the aggregate. 10.2 Automobile Liability Tnsuranee Nv'tth bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident, and with property damage limits of not less than $100,000 for each accident. 10.3 Worker's Compensation Insurance inn accordance wills statutory requirements, and Employers' Liability insurance with limits of not less than $100,000 for each accident including occupational disease. 10.4 Professional Liability Insurance with limits ofnot less than 51,000,000 annual aggregate. 10.5 The Design Professional shall furnish insurance certificates or insurance policies to the Owner evidencing insurance in compliance with this Article 10 at the tittle of the execution of the Agreement. The General Liability and Automobile Liability insurance policies shall name the Owner as an additional insured, the Workers' Compensation policy shall contain a waiver of subrogation in favor of the Ovtwr, and each policy shall contain a provision that Stich insurance shall not be canceled or modified without thirty (30) days' prior written notice to Owner and Design Professional. In such event, the Design Professional shall, prior to the effective date of the change or cancellation, fnntish Owner with substitute certificates of insurance meeting the requirenents of this Article 10. ARTICLE I I MISCELLANEOUS PROVISIONS 11.1 The Agreement shall begoverned by tine laws of the State of Texas. Ventre of any suit or cause of action under the Agreement shall lie exclusively in Denton County, Texas. 11.2 The Owner and Design Professional, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representatives of such other party with respect to all covenants of this Agreement. The Design Professional shall not assign its interests in the Agreement without the written consent ofthe Omier. 11.3 The teen Agreement as issed herein includes the executed Agreement, the Proposal, these General Conditions and other attachments referenced in Section 3 of the Agreement which together represent the entire and integrated agreement between the Owner and Design Professional and supersedes all prior negotiations, representations or agreements, either written or oral. The Agreement may be amended only by written instrument signed by both Owner and Design Professional. When interpreting the Agreement the executed Agreement, Proposal, these General Conditions and the other attachments referenced in Section 3 of the Agreement shall to the extent that is reasonably possible be read so as to harmonize the provisions. However, should the provisions ofthese documents be in conflict so that they can not be reasonably hannonized, such documents shall be given priority in the following order. 1. The executed Agreerment 2. Attachments referenced in Section 3 ofthe Agreernnent other than the Proposal 3. These General Provisions 4. The Proposal 11.4 Nothing contained in the Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Owner or Design Professional. 11.5 Upon receipt of prior written approval ofOw ner, the Design Professional shall have the right to include representations of the design ofthe Project, including photographs of the exterior and interior, annong the Design Profess'ional's promotional and professional materials. The Design Professional's materials shall not include the Owners confidential or proprietary information if the Otiater has previously advised the Design Professional in writing of the specific infomnation considered by the Owner to be confi- dential or proprietary. The Owner shall provide professional credit for the Desigrn Professional on the construction sign and in the promotional materials for (lie Project. 11.6 Approval by the Owner shall not constitute, nor be deemed a release of the responsibility and liability of the Design Professional, its employees, associates, agents, subcontractors, and subconsultants for (lie accuracy and competency of their designs or other work; nor shall such approval be deemed to be an assumption of such responsibility by the Owner for any defect in the design or other work prepared by the Design Professional, its employees, subcontractors, agents, and consultants. 11.7 Ail notices, communications, and reports required or permitted under the Agreement shall be personally= delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below signature block out the Agreement, certified mail, return receipt requested, unless otherwise specified herein. All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days after mailing. Page 10 Exhibit A 11.8 if any provision of [tie Agreement is found or deemed by a court of compctent jurisdiction to be invalid or ulienforceable, it shall be considered severable front the remainder of the Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform the Agreement to replace such stricken provision with. a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. I1.9 The Design Professional shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended during 9se term of this Agreement. 11.10 In performing the Services required hereunder, the Design Professional shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 11.11 The captions of the Agreement are for informational. purposes only, and shall not in any way affect the substantive ternrs or conditions of the Agreement. Page 11 Exhibit A Poilllers for (1 [tailor Quolily of Lifo June 29, 2090 Mr. Vance Kemler General Manager, Solid Waste Services City of Denton 1527 S. Mayhill Road Denton, Texas 76208 Re: Proposal for Professional Services General Engineering Services Fiscal Year 2011 Dear Mr. Kemler, CP&Y, Inc. Is pleased to submit this scope and fee proposal to provide professional services to assist the City, as directed, with development, design and construction related services for various solid waste projects during the fiscal year of 2011. Scope of Services a Assist the City, as directed, with the investigation, evaluation of alternatives and development of various solid waste projects, and general engineering services In support of the Solid Waste Department. a Assist with the preparation of, and support of, Permit Applications, Permit Modification, Permit Amendments, and Notifications to required Regulatory Agencies, as directed by the City. 0 Prepare Plan Documents, to Include a site plan, structural, architectural, mechanical, electrical and plumbing design and details, as required, to facilitate securing bids for construction of selected solid waste related projects. • Prepare Technical Specifications associated with the design elements of the selected facilities. a Utilize City Standard Bid Documents and other Standard Specifications to govern the remainder of the construction of the selected facilities. Prepare complete sets of procurement documents for use by the City for selected projects. 0 Assist the City with soliciting and obtaining bids from Contractors for construction of the facilities. This would include answering questions related to the project, Issuing bid addendums as needed for clarification, and attending a pre-bid conference and bid opening. 0 Review the construction bids received and make recommendations for construction contract awards. 0 Review Contractor Submittals for conformance with the plans and specifications. a Make periodic visits to the site during construction to observe the construction activities for conformance with the plans and specifications. 1820 Regal flow, Suite 200 Dallas, Tons 75235 214.638.0500 + 214.638.3723 fax Page 12 www.cl►yi.CO))1 _ w EXHIBIT 1- •w g C Poo P-1 Exhibit A Pointers for f1 liollor ituohly of No Fee Estimate CP&Y, Inc. proposes to be compensated for performing the above Scope of Services on an hourly basis with the total fee amount not to exceed ONE HUNDRED TEN THOUSAND and no1100 DOLLARS ($110,000.00) without additional written authorization from the City. The following Hourly Rates of personnel will be the basis for compensation through December 31, 2011 and will be re-evaluated at that time. Any changes In Hourly Rates at that time will be approved by the City prior to taking effect. Hourly Billing Rates CP&Y, Inc. 2011 1. CP&Y, Inc. Will submit monthly invoices for services rendered, and the City will make prompt payments in response to the Invoices. 2. CP&Y, Inc. will be reimbursed for services based upon the following hourly rates, plus reimbursement for other direct non-labor and subcontract costs at actual cost. Category Billing Rate Per Hour Clerical/Administrative $35.00-65.00 Drafter]Technielan $55,00-95.00 Engineer in Training $75.00-120.00 Project Engineer $95.00-160.00 Senior Engineer $135,00-130.00 Senior Associate Engineer $170.00-215,00 Principal $185,00-230.00 We appreciate the opportunity to continue to assist the City of Denton with solid waste projects. If this proposal is satisfactory to the City, please prepare the necessary City Contract Documents for our review and signatures, Sincerely, CP&Y, Inc. e. zc-~~ William R. Hindman, P.E, Vice President 1820 flo0al flow, Suito 200 hallos, Texas 75231i 214,638,0000 , 21 1.638.3723 fax ~ Y www.e11yi.corl) _ Page 13 _ x,_ MINUTES PUBLIC UTILITIES BOARD July 26, 2010 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on Monday, July 26, 2010 at 9:26 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton. Present: Chair Dick Smith, Vice Chair Bill Cheek, Randy Robinson, John Baines and Barbara Russell. Ex Officio Members: George Campbell City Manager, Howard Martin, ACM Utilities Absent: Bill Grubbs and Phil Gallivan, all excused OPEN MEETING: CONSENT AGENDA: The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. 2) Consider recommending approval of a Professional Services Agreement between Chiang, Patel, and Yerby, Inc. (CP&Y) and the City of Denton Solid Waste Department for CP&Y to provide annual professional engineering consulting services in the amount not to exceed of $110,000. Board Member Robinson moved to approve item 2 with a second from Board Member Russell. The motion was approved by a 5-0 vote. The meeting was adjourned by consensus at 10:00 a.m. AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler 349-8044 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with Solutient Geosciences, Inc. for Hydrogeological Consulting and Analytical Services pertaining to the City of Denton Landfill as set forth in the contract, and providing an effective date (File 4571-Professional Services Agreement for Hydrogeological Consulting and Analytical Services pertaining to the City of Denton Landfill awarded to Solutient GeoSciences, Inc., in an amount not to exceed $100,869.40). (The Public Utilities Board approved this item by a vote of (5-0). FILE INFORMATION The City of Denton Landfill is required to perform a variety of groundwater sampling events and submit ground water monitoring results of the Landfill's groundwater monitoring wells and two leachate sumps on a semi-annual basis to the Texas Commission on Environmental Quality (TCEQ). Mr. Jeske, of Solutient GeoSciences, is familiar with Denton's hydrogeological site conditions, and possesses staff capable of monitoring and accurately interpreting Denton's groundwater data, having supervised Denton's Landfill groundwater monitoring program since 1999. Denton's groundwater monitoring service requirements include well sampling, data review, statistical analyses, consultation, regulatory reporting, and general geological and hydrogeological services performed at the Landfill site. The 2010-2011 fiscal year budgeted amount provides for routine permit monitoring and ground water assessment and reporting. Any additional services required will be performed on a time and materials basis. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board approved this item on August 23, 2010. RECOMMENDATION Approve a Professional Services Agreement between the City of Denton and Solutient GeoSciences, Inc. in an amount not to exceed $100,869.40. Agenda Information Sheet September 21, 2010 Page 2 PRINCIPAL PLACE OF BUSINESS Solutient GeoSciences, Inc. Tyler, TX ESTIMATED SCHEDULE OF PROJECT This Agreement is for hydrogeological testing for the 2010-2011 fiscal year which begins October 1, 2010. FISCAL INFORMATION This project will be funded from Solid Waste budget account number 660300.7855. Respectfully submitted: Bryan Langley, 349-7100 Director of Finance I AIS-File 4571 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH SOLUTIENT GEOSCIENCES, INC. FOR HYDROGEOLOGICAL CONSULTING AND ANALYTICAL SERVICES PERTAINING TO THE CITY OF DENTON LANDFILL AS SET FORTH IN THE CONTRACT, AND PROVIDING AN EFFECTIVE DATE (FILE 4571-PROFESSIONAL SERVICES AGREEMENT FOR HYDROGEOLOGICAL CONSULTING AND ANALYTICAL SERVICES PERTAINING TO THE CITY OF DENTON LANDFILL AWARDED TO SOLUTIENT GEOSCIENCES, INC., IN AN AMOUNT NOT TO EXCEED $100,869.40). WHEREAS, The professional services provider (the "Provider) mentioned in this ordinance is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, The fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional associations applicable to the Provider's profession and such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to enter into a professional service contract with Solutient GeoSciences, Inc., to provide professional hydrogeological and analytical consulting services for the City of Denton landfill, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager is authorized to expend funds as required by the attached contract. SECTION 3. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-ORD-File 4571 PROFESSIONAL SERVICES AGREEMENT FOR PERFORMING HYDORGEOLOGICAL CONSULTING ANALYTICAL SERVICES PERTAINING TO THE CITY OFDENTON LANDFILL STATE OF TEXAS COUNTY OF DENTON THIS AGREEMENT is made and entered into as of the day of , 2010, by and between the City of Denton, Texas, a Texas municipal corporation, with its principal office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "OWNER" and Solutient GeoSciences, Inc., with its corporate office at 3800 Paluxy Drive, Suite 260, Tyler, Texas 75703, hereinafter called "CONSULTANT," acting herein, by and through their duly authorized representatives. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE I EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with the CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described project: Performing those professional services described in CONSULTANT'S "Proposal-2011 Landfill Hydrogeological Consulting and Analytical Services" letter issued on August 9, 2010 to OWNER'S representative, David Dugger, Landfill Manager, which is attached hereto as Exhibit "A" and which is incorporated by reference herein, to include without limitation: Hydrogeological Consulting Services; Analytical Services; and Sanitas for Ground Water Maintenance Agreement; Annual Detection Ground Watering report. ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following Basic Services in a professional manner: Reference is herby made to Exhibit "A" attached hereto and incorporated herewith by reference, being the same reference as that contained in Article I hereinabove. ARTICLE III ADDITIONAL SERVICES Any Additional services to be performed by the CONSULTANT, if authorized by the OWNER, which are not included in the above-described Basic Services set forth in Article II above, shall be later agreed-upon by OWNER and CONSULTANT, who shall determine, in writing, on a time and materials basis, the scope of such Additional Services, the amount of compensation for such additional services, and other essential terms pertaining to the provision of such Additional Services by CONSULTANT. ARTICLE IV PERIOD OF SERVICE This Agreement shall become effective upon execution of this Agreement by the OWNER and the CONSULTANT and upon issue of a notice to proceed by the OWNER, and shall remain in force for the period which may reasonably be required for the completion of the Project, including Additional Services, if any, and any required extensions approved by the OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement. The CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule established by the OWNER, acting through its General Manager of Solid Waste or his designee. ARTICLE V COMPENSATION A. COMPENSATION TERMS: "Direct Non-Labor Expense" is deigned as that expense (other than "per diem" expense), based upon cost plus (15%), for any for any out-of-pocket expense reasonably incurred by the CONSULTANT related to its performance of this Agreement, for long distance telephone charges, telecopy charges, messenger services, printing and reproduction expenses, out-of-pocket expenses for purchased computer time, prudently incurred travel expenses related to the work on the Project, and similar incidental expenses incurred in connection with the Project. B. BILLING AND PAYMENT: For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay CONSULTANT, based upon the satisfactory completion of the Basic Services tasks set forth in the Scope of Services as shown in Article II above as follows: CONSULTANT shall perform its work on this project on an hourly fee basis, plus reimbursement for all reasonably incurred out-of-pocket expenses, billed monthly, or for longer periods of time. CONSULTANT shall bill from time sheets, in minimum 1/ hour increments of time, at the rates and subject to the terms set forth in CONSULTANT's "Probable Cost Estimate" dated August 9, 2010, which is contained as 5 and 6 of Exhibit "A" hereto, which is incorporated by reference herein. OWNER shall pay to Page 2 CONSULTANT for its professional services performed, and for its out-of-pocket expenses incurred in the Project, a total amount not to exceed $100,869.40. Partial payments to the CONSULTANT will be made monthly based on the percent of actual completion of the Basic Services, rendered to and approved by the OWNER through its Director of Solid Waste or his designee; however, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. The OWNER may withhold the final five percent (5%) of the contract amount until completion of the Project by the CONSULTANT. Nothing contained in this Article shall require the OWNER to pay for any work which is unsatisfactory, as reasonably determined by the Director of Solid Waste or his designee, or which is not submitted in compliance with the terms of this Agreement. The OWNER shall not be required to make any payments to the CONSULTANT when the CONSULTANT is in default under this Agreement. It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense, or reimbursement above the maximum not to exceed fee as stated, without first having obtained written authorization from the OWNER. The CONSULTANT shall not proceed to perform the services listed in Article III "Additional Services," without obtaining prior written authorization from the OWNER. C. ADDITIONAL SERVICES: For additional services authorized in writing by the OWNER in Article III, the CONSULTANT shall be paid based on the Schedule of Charges. Payments for additional services shall be due and payable upon submission by the CONSULTANT, and shall be in accordance with Exhibit "A" attached hereto. Statements shall not be submitted more frequently than monthly. D. PAYMENT: If the OWNER fails to make undisputed payments due the CONSULTANT for services and expenses within thirty (30) days after receipt of the CONSULTANT's undisputed statement thereof, prompt payment act interest as set forth in Chapter 2251 of the Texas Government Code shall be paid on the amounts due the CONSULTANT. In addition, the CONSULTANT may, if it has not received payment by the thirty-first (31 St) day after receipt of payment, after giving ten (10) days' written notice to the OWNER, suspend services under this Agreement until the CONSULTANT has been paid in full all amounts due for services, expenses, and charges, provided, however, nothing herein shall require the OWNER to pay prompt payment act interest if the OWNER has a bona fide dispute with the CONSULTANT concerning the payiment or if the OWNER reasonably determines that the work is unsatisfactory, in accordance with this Article V, "Compensation." Page 3 ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the work of the CONSULTANT or any subcontractors or subconsultants. ARTICLE VII OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the CONSULTANT (and CONSULTANT's subcontractors or subconsultants) pursuant to this Agreement are instruments of service, and shall become the property of the OWNER upon the terinination of this Agreement. The CONSULTANT is entitled to retain copies of all such documents. The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this Project, and OWNER's use of these documents in other projects shall be at OWNER's sole risk and expense. In the event the OWNER uses any of the information or materials developed pursuant to this Agreement in another project or for other purposes than specified herein, CONSULTANT is released from any and all liability relating to their use in that project. ARTICLE VIII INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. CONSULTANT shall not have or claim any right arising from employee status. ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the OWNER, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. Page 4 ARTICLE X INSURANCE During the performance of the services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. B. Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident, and with property damage limits of not less than $100,000 for each accident. C. Worker's Compensation Insurance in accordance with statutory requirements, and Employers' Liability Insurance with limits of not less than $100,000 for each accident. D. Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. E. The CONSULTANT shall furnish insurance certificates or insurance policies at the OWNER'S request to evidence such coverages. The insurance policies shall name the OWNER as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without thirty (30) days' prior written notice to OWNER and CONSULTANT. In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Agreement by submitting the dispute to mediation. No mediation arising out of or relating to this Agreement may proceed without the agreement of both parties to submit the dispute to mediation. The location for the mediation shall be the City of Denton, Denton County, Texas unless a different location is agreed to by the parties. ARTICLE XII TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Agreement, either party may terminate by giving thirty (30) days' advance written notice to the other party. Page 5 B. This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the non-performance, and not less than thirty (30) calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C. If the Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services and shall render a final bill for services to the OWNER within thirty (30) days after the date of termination. The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination, in accordance with Article V "Compensation." Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information. The CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its use. ARTICLE XIII RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the OWNER shall not constitute, nor be deemed a release of the responsibility and liability of the CONSULTANT, its employees, associates, agents, subcontractors, and subconsultants for the accuracy and competency of their designs or other work; nor shall such approval be deemed to be an assumption of such responsibility by the OWNER for any defect in the design or other work prepared by the CONSULTANT, its employees, subcontractors, agents, and consultants. CONSULTANT retains design responsibility and liability at all times during this Agreement and after completion of this Agreement. ARTICLE XIV NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To CONSULTANT: Solutient GeoSciences, Inc. Les Jeske, P.G. 3800 Paluxy Drive, Suite 260 Tyler, Texas 75703 To OWNER: City of Denton George C. Campbell, City Manager 215 East McKinney Denton, Texas 76201 Page 6 Phone: (903) 581-4340 Fax: (940) 349-8596 Fax: (903) 581-4399 and David Dugger, Landfill Manager City of Denton, Texas 5166 Foster Road Denton, Texas 76208 Phone: (940) 349-8001 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE XV ENTIRE AGREEMENT This Agreement, consisting of eleven (11) pages and the one (1) Exhibit hereto, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE XVI SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, the CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. Page 7 ARTICLE XIX PERSONNEL A. The CONSULTANT represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the OWNER. CONSULTANT shall inform the OWNER of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by the CONSULTANT or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. In those instances deemed necessary by the OWNER, the CONSULTANT, its employees and/or its Sub-consultants shall be required to submit to background checks. ARTICLE XX ASSIGNABILITY The CONSULTANT shall not assign any of its scope of work under in this Agreement, and shall not transfer any of its scope of work under this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the OWNER. Should the CONSULTANT assign any part of the monies due under this Agreement, CONSULTANT is required to provide written notice of the same to OWNER. Any assignment of monies due under this Agreement shall not change any of the terms or conditions of this Agreement to include but not limited to the terms and conditions for payment under this Agreement. ARTICLE XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE XXII MISCELLANEOUS A. The following exhibits are attached to and made a part of this Agreement: Exhibit A- Solutient GeoSciences Proposal dated August 9, 2010. Page 8 B. CONSULTANT agrees that OWNER shall, until the expiration of five (5) years after the final payment or after final completion of all work required under this Agreement, whichever is longer, have access to and the right to examine any directly pertinent books, documents, papers, correspondence, to include e-mails, and records of the CONSULTANT involving transactions relating to this Agreement. CONSULTANT is required to maintain and make available all electronic records associated with this Agreement for purposes of examination. CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. OWNER shall give CONSULTANT reasonable advance notice of intended audits. This paragraph shall work in conjunction with the Audit provision set forth in Article XXIII. C. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. D. For the purpose of this Agreement, the key persons who will perform most of the work hereunder shall be Leslie A Jeske ("Jeske"). This Agreement has been entered into with the understanding that Jeske shall serve as the CONSULTANT'S Project Manager. However, nothing herein shall limit CONSULTANT from using other qualified and competent members of its firm to perform the services required herein. CONSULTANT understands that OWNER is to be informed of the removal or loss of any of the key persons working under this Agreement. CONSULTANT also agrees to provide the OWNER with notice of the name(s) of who it intends to replace the key person. OWNER shall have a right to reject any replacement key person(s) and CONSULTANT agrees to name a replacement key person(s) acceptable to the OWNER. E. CONSULTANT shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, and efficient manner and in accordance with the provisions hereof. In accomplishing the projects, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the OWNER. F. The OWNER shall assist the CONSULTANT by placing at the CONSULTANT's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the CONSULTANT to enter in or upon public and private property as required for the CONSULTANT to perform services under this Agreement. G. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. Page 9 ARTICLE XXIII RIGHT TO AUDIT The OWNER shall have the right to audit and make copies of the books, records and computations pertaining to this agreement. The CONSULTANT shall retain such books, records, documents and other evidence pertaining to this Agreement during the contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within 10 business days of written request. Further, the CONSULTANT shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this agreement, and to allow the OWNER similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost of the audit will be borne by the OWNER unless the audit reveals an overpayment of 1% or greater. If an overpayment of I% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the CONSULTANT which must be payable within five business days of receipt of an invoice. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in the OWNER'S sole discretion, grounds for termination thereof. Each of the terms "books", "records", "documents" and "other evidence", as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. Page 10 IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and CONSULTANT has executed this Agreement through its duly authorized undersigned officer on this the day of , 2010. CITY OF DENTON, TEXAS GEORGE C. CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: CONSULTANT S LUTIENT GECIENCES, INC. WITNESS: BY: ff Page 11 Exhibit A Solutient GeoSciences, Inc. 3800 Paluxy Drive, Suite 260 Tyler, Texas 75703 (903) 581-4340 tel (903) 581-4399 fax August 9, 2010 David Dugger Landfill Manager City of Denton 1527 S. Mayhill Road Denton, Tx. 76208 Re: Proposal 2011 Landfill Hydrogeological Consulting and Analytical Services City of Denton Landfill (MSW Permit No. 1590A) Denton (Denton County), Texas Dear Mr. Dogger: In accordance with your recent request, Solutient GeoSciences, Inc. ("Solutient") is pleased to submit the following proposal for providing hydrogeological consulting and analytical services at the City of Denton ("City") landfill for a one-year period commencing October 1, 2010. Solutient will serve as the City's professional services consultant relative to all landfill groundwater monitoring, data review, reporting, and general geological and hydrogeological services, where needed. Scope of Services As we understand it, the work will consist of conducting quarterly and semi-annual groundwater monitoring events and reporting in accordance with the existing Texas Commission on Environmental Quality ("TCEQ") approved Groundwater Sampling and Analysis Plan ("GWSAP") at the above-referenced facility. The following discussion provides a detailed explanation of the services provided. Hydrogeological Consulting - includes 1) generation and on-going maintenance of existing groundwater analytical data base, 2) management and direct supervision of groundwater monitoring events, 3) review of analytical data, 4) preparation of annual groundwater monitoring reports including groundwater contour maps and semi-annual statistical evaluations, 4) evaluation and submittal of site-appropriate statistical analysis method(s), and 5) correspondence with TCEQ regarding groundwater issues. The City will be continually informed of Mr. David Dugger, City of Denton August 9, 2010 Page 2 all monitoring results and provided on-going recommendations and opinions regarding necessary action, if needed. • Analytical Services - includes sampling and analysis of groundwater samples collected at landfill facility in accordance with the TCEQ-approved GWSAP. A total of twenty-three (23) monitoring wells, which comprise the facility (MSW Permit No. 1590A) groundwater monitoring system consisting of twenty (20) existing and three (3) new wells (as per the 600-foot minimum spacing requirement), will be gauged, purged, and sampled using dedicated, low-flow pumps and a Well Wizard' micropurge system. The existing wells and new wells will be sampled semi-annually for the updated Table 5-1 constituents. Additionally, two (2) quarterly background events will beperformed for the three (3) new wells for which groundwater samples will be analyzed for the updated Table 5-1 constituents, Also, two (2) leachate samples will be collected and analyzed for necessary pre-treatment constituents, as required by the waste water treatment plant and the landfill re-circulation requirements. All analyses will be performed using EPA-approved methods by Ana-Lab Corporation. Also included in the work is a provision for tip to two (2) verification re- sampling/assessment monitoring events at up to three (3) monitoring wells. Assessment samples would be analyzed for 40 CFR Part 258, Appendix II constituents. • Sanitas"'m for Ground Water Maintenance Agreement - provides for annual upgrades and software support of SanitasTm, a statistical analysis software package used to perform statistical evaluation of groundwater quality data. • Annual Detection Groundwater Monitoring Report - includes preparation of annual detection groundwater monitoring report. • Contingency Funding - includes a provision for contingency fluids for the possibility of additional wells to be included for assessment monitoring in the event any facility well enters assessment monitoring as per recent regulatory requirements and implementation procedures. All services provided will be coordinated and performed under the direct supervision of Mr. Leslie A. Jeske, P.G., Hydrogeologist. Mr. Jeske has served as the primary groundwater consultant at the facility since 1999. Low-flow purging and sampling activities will be conducted using instruments and equipment owned and maintained by the City. In the event the instrtiunents are found in need. of repair, the City will be promptly notified to insure minimal delays in completing the scheduled monitoring events. The City will be responsible for all costs associated with repairs and on-going maintenance. Mr. David Dugger, City of Denton August 9, 2010 Page 3 Cost Estimate Based upon the above scope of services and our understanding of the project, we have prepared the attached Probable Cost Estimate which shows the estimated quantities of work and un t fees. It is estimated that the total amount of this contract for October 1, 2010 - September 30, 2011 should not exceed $ 100,869.40. In the event additional services are required beyond those detailed in this contract, such will be performed on a time and materials basis. You will be notified if unforeseen conditions are encountered or there is a necessity to change the scope of work. Additional work will not be performed without first obtaining your approval of the additional costs. An invoice will be submitted on a monthly basis for the percent of work completed for each event. It will be based upon the actual work performed and the unit prices shown in the attached Probable Cost Estimate. If you have any questions after reviewing this proposal, please do not hesitate to contact me at (903) 581-4340. As always, we look forward to working with the City in this endeavor, Very truly yours, Solutient GeoSciences, Inc. Leslie A. Jeske, P.G. Hydrogeologist Attach: Probable Cost Estimate cc: Mike Copeland, City of Denton PROBABLE COST ESTIMATE August 9, 2010 2011 Landfill Hydrogeological Consulting and Analytical Services City of Denton Landfill (MSW Permit No. 1590A) Denton (Denton County), Texas Item Quantity Unit Unit Rate Cost Sanitas for Groundwater Software Annual Maintenance Agreement (cost +15%) 1 LS $ 385.00 $ 385.00 Subtotal: $ 385.00 ."WinXOQ/!P+'1eKlyB9WmCt<'k~';PNho3t~esanipllreg,&rf~ses~S7ne~tt~Mohrro/{ng~~en 2C sr~- Statistical Evaluation and Reporting (Verification/Assessment Monitoring) 6 wells $ 190.00 $ 1,140.00 Groundwater Chemistry Review, Data Base Update, Analytical Data Evaluation Checklist, Groundwater Contour Map, and Report Preparation: Aydrogeologst 12 hour $ 140,00 $ 1,680.00 Enviromnental Technician 34 hour $ 95.00 $ 3,230.00 Subsistence 2 day $ 125.00 $ 250.00 Sampling Vehicle 3 day $ 65.00 $ 195,00 Mileage 325 mile $ 0.75 $ 243.75 Analytical Services: Updated Table 5-1 GWSAP Constituents (3 wells & 3 QC samples) 6 each $ 335.00 $ 2,010.00 Verification/Assessment Appendix II Constituents (3 wells & 2 QC samples) 5 each $ 1,347.00 $ 6,735.00 Subtotal: $ 15,483.75 iYla>Cat"20X.115em1,! Jlttlal De ~C lf/ll~BdekgTOK/jf~7MOftIlDYltf$:P{Ctll _ryn N y 1 m. i sp mss' Nr _ r 4th v ~ , rat' eF~ n~ Statistical Evaluation and Reporting 23 wells $ 190.00 $ 4,370.00 Groundwater Chemistry Review, Data Base Update, Analytical Data Evaluation Checklist, Groundwater Contour Map, and Report Preparation: Ilydrogeologst 18 hour $ 140.00 $ 2,520.00 Environmental Technician 60 hour $ 95.00 $ 5,700.00 Subsistence 4 day $ 125.00 $ 500.00 Sampling Vehicle 5 day $ 60.00 $ 300,00 Mileage 325 mile $ 0.75 $ 243.75 Analytical Services: Updated Table 5-1 GWSAP Constituents (23 wells, 9 QC samples, & 2 leachate samples) 34 each $ 335,00 $ 11,390.00 Assessment Appendix ff Constituents (MWAU & I QC sample) 2 each $ 1,347.00 $ 2,694.00 Waste Water Pre-Treatment Constituents (2 leachate samples) 2 each $ 384.10 $ 768.20 Subtotal: $ 28,485.95 Statistical Evaluation and Reporting (Verification/Assessment Monitoring) 6 wells $ 190.00 $ 1,140.00 Groundwater Chemistry Review, Data Base Update, Analytical Data Evaluation Checklist, Groundwater Contour Map, and Report Preparation: Tlydrogeologst 12 hour $ 140.00 $ 1,680,00 Enviromnental Technician 34 hour $ 95.00 $ 3,230.00 Subsistence 2 day $ 125.00 $ 250.00 Sampling Vehicle 3 day $ 65.00 $ 195.00 Mileage 325 mile $ 0.75 $ 243,75 Analytical Services: Updated Table 5-1 GWSAP Constituents 3 wells & 3 QC sumples) 6 each $ 2,010.00 Verification/Assessment Appendix II Constituents (3 wells & 2 QC samples) 5 each $ 6,735.00 $ 15,483.75 Statistical Evaluation and Reporting 23 wells $ 190.00 $ 4,370.00 Groundwater Chemistry Review, Data Base Update, Analytical Data Evaluation Checklist, Groundwater Contour Map, and Report Preparation: Hydro eologst 18 hour $ 140,00 $ 2,520.00 Environmental Technician 60 hour $ 95.00 $ 5,700.00 Subsistence 4 day $ 125.00 $ 500.00 Sampling Vehicle 5 clay $ 65.00 $ 325.00 Mileage 325 mile $ 0.75 $ 243.75 Analytical Services: Updated Table 54 GWSAP Constituents (23 wells, 9 QC samples, & 2 leachate samples) 34 each $ 335.00 $ 11,390.00 Assessment Appendix II Constituents (MW-4U & I QC sample) 2 each $ 1,347.00 $ 2,694.00 Waste Water Pre-Treatment Constituents (2 leachate samples) 2 each $ 384.10 $ 768.20 Subtotal: $ 28,510.95 2b 1Xi~ , fdtlt(ti£ueCrn114.1ii .tltnta11'Ptcaz~t "~"~s`akAs 2311y IVIONYMI t"§Fd,_ OQ1b0~17 4)bb4,r911 Hydrogeologst 18 hour $ 140.00 $ 2,520.00 11 1 Subtotal: $ 2,520.00 Page 1 oft PROBABLE COST ESTIMATE August 9, 2010 2011 Landfill Hydrogeological Consulting and Analytical Services City of Denton Landfill (.VfSW Permit No. 1590A) Denton (Denton County), Texas Notes: 1. Scope of work allows for 2 assessment monitoring events with a total of three (3) wells each. Additional work will be performed upon authorization by the City of Denton utilizing the following fee schedule. Hydrogeologist - $140.00 per hour Geologist - $125.00 per hour Environmental Technician - $95.00 per hour CADD Operator - $60.00 per hour Field Vehicle - $65.00 per day Mileage - $0.75 per mile Outside Services (i.e., map reproduction, color photocopies, etc.) - cost +15% Additional Expenses (i.e., meals, lodging, etc.) - cast +I5% Page 2 of2 DRAFT MINUTES PUBLIC UTILITIES BOARD August 23, 2010 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on Monday, August 23, 2010 at 9:00 a.m. in the Solid Waste Training Room, Solid Waste Administration Building, 1527 South Mayhill Road, Denton, Texas. Present: Chair Dick Smith, Vice Chair Bill Cheek, Randy Robinson, Bill Grubbs and Phil Gallivan. Ex Officio Members: George Campbell City Manager, Howard Martin, ACM Utilities Absent: John Baines and Barbara Russell, all excused At 9:00 a.m., Chair Smith announced there was a quorum and convened into the open meeting. OPEN MEETING: ITEMS FOR INDIVIDUAL CONSIDERATION: 1) Consider a recommendation of an approval of a Professional Services Agreement with Solutient GeoSciences, Inc., of Tyler, Texas, for hydrogeological and analytical services regarding the City's landfill in an amount not to exceed $100,869.40. Item 1 was pulled from the consent items and placed on the items for individual consideration. Board Member Grubbs asked about the options category where it indicates that we may recommend these services from another firm. Vance Kemler, General Manager, Solid Waste, replied that we have history with Solution GeoSciences they are experts in the groundwater area. That is why we are recommending this particular consultant. Grubbs further asked about how much was spent in 2010. Howard Martin, ACM Utilities, answered that in 2010 the budgeted amount was $98,319.40. Some year's solid waste will use additional services depending upon the circumstances. Board Member Gallivan moved to approve item I with a second from Board Member Robinson. The motion was approved by a 5-0 vote. The meeting was adjourned by consensus at 9:55 a.m. This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Airport ACM: HoNvard Martin, 349-8232 SUBJECT Consider adoption an ordinance authorizing the City Manager, or his designee, to execute on behalf of the City of Denton a Consent To Lien Upon Leasehold as requested by Global Maritime Supply Management, LLC, a tenant at Denton Municipal Airport to receive financing from Comerica Bank for a facility expansion and providing an effective date. The Airport Advisor- Board recommended 7-0. BACKGROUND Global Maritime Supply, LLC is an aircraft parts manufacturing company located on Denton Airport at 1750 Westcourt Drive. This tenant, formerly knoN-,n as Avionics International Supply (AIS), has been operating on property leased from the City at Denton Airport since 1995. The Company is seeking a loan from Comerica Bank to fund a facility expansion associated with an expanded market. Global Maritime Supply, LLC has requested the City to approve a Consent To Deed Of Trust Lien Upon Leasehold (copy attached to proposed ordinance) in order for their lender to secure a right to assume their lease if a default occurs. The proposed Consent To Lien Upon Leasehold has been reviewed by the City of Denton Legal Department and approved as to form. The Airport Advisor- Board has recommended by unanimous vote for the City- Council to authorize the Consent. FISCAL IMPACT The Consent To Lien Upon Leasehold will not affect revenue from the ground lease on which Global Maritime Supply LLC operates their business at the Denton Airport. In the event of a default for any reason on the lease between Global Maritime Supply LLC and the City of Denton, Comerica Bank, the lender, would be notified and they would have a right to assume the lease. RECOMMENDATION Airport Staff recommends approval of the Consent To Lien Upon Leasehold requested by Global Maritime Supply LLC. EXHIBITS 1. Ordinance to approve the Consent To Lien Upon Leasehold 2. Consent To Lien Upon Leasehold 3. Excerpt from minutes of the Airport Advisor- Board meeting on September 15, 2010. Respectfully submitted: Quentin Hix Airport Manager \\codadldepartments\legal\our documents\ordinances\10\airport global maritime and comerica consent.doc EXHIBIT 1 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A CONSENT TO LIEN BETWEEN THE CITY OF DENTON, GLOBAL MARITIME MANAGEMENT, L.L.C. AND COMERICA BANK; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on December 19,1995 the City of Denton, Texas (hereinafter the "City") entered into that certain Airport Lease Agreement with Avionics International Supply, Inc (hereinafter "AIS") at the Denton Municipal Airport (hereinafter the "Airport"); and WHEREAS, the interest of AIS in the aforementioned Airport Lease Agreement was subsequently assigned to Global Maritime Supply Management, L.L.C. (hereinafter the "Leasee") by City Ordinance 2010-150; and WHEREAS, Leasee has requested the City to enter into a Consent To Deed Of Trust Lien Upon Leasehold (hereinafter the "Consent") with Comerica Bank, a Texas financial institution (hereinafter `Bank"); and WHEREAS, at the meeting of September 15, 2010 the Airport Advisory Board recommended that the City approve the Consent; and WHEREAS, the City Council deems it in the public interest to enter into a Consent with Global Maritime Supply Management, L.L.C., which will facilitate the financing of improvements by Leasee through Comerica Bank; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute a Consent To Deed Of Trust Lien. Upon Leasehold between the City of Denton, Global Maritime Supply, L.L.C. and Comerica Bank that will facilitate the financing of improvements by Leasee through Comerica Bank, said Consent being attached hereto as Exhibit A and made a part of this Ordinance for all purposes. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ; 2010. MARK BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT 2 CONSENT TO DEED OF TRUST LIEN UPON LEASEHOLD DENTON MUNICIPAL AIRPORT AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND GLOBAL MARITIME SUPPLY MANAGEMENT, L.L.C. This CONSENT TO DEED OF TRUST LIEN UPON LEASEHOLD (this "Agreement") is made and entered into by and among the CITY OF DENTON, a Texas municipal corporation ("Lessor"), GLOBAL MARITIME SUPPLY MANAGEMENT, L.L.C., a Texas limited liability company ("Lessee"), and COMERICA BANK, a Texas financial institution ("Bank"). Recitals A. On or about December 19, 1995, Lessor and Avionics International Supply, Inc. ("AIS") entered into a certain Airport Lease Agreement (the "Lease"), covering certain property at the Denton Municipal Airport ("Airport") and being approximately 24,650 square feet of improved land more particularly described in Exhibit A attached hereto and incorporated herein by reference for all purposes, and having a street address of 1750 Westeourt Drive, in Denton, Texas (the "Leased Premises"). The interest of AIS in the Lease and the leasehold improvements has been subsequently assigned to Lessee. B. In order for Lessee to obtain a loan to finance certain operations at the Leased Premises, Lessee and Bank desire Lessor to consent to the execution by Lessee of a Leasehold Deed of Trust, Security Agreement and Assignment of Rents (the "Deed of Trust") in favor of Bank, which will create a lien on the Leased Premises and secure the loan. Agreements NOW, THEREFORE, Lessor, Lessee and Bank hereby agree as follows: 1. The statements set forth in the recitals above are true and correct and form the basis upon which Lessor, Lessee and Bank have entered into this Agreement. The Lease is a public document on file in Lessor's City Secretary's Office and is incorporated herein by reference for all purposes. 2. Lessor hereby consents to the execution and delivery by Lessee to Bank of the Deed of Trust, and the grant to Bank of a lien on all of the right, title and interest of Lessee in and to the Leased Premises and the leasehold improvements upon, and subject to, the terms set forth in the Lease. Notwithstanding anything to the contrary in the Deed of Trust, Lessee and Bank, acknowledge, understand and agree that Lessee and Bank do not have any right to convey any interests in the Leased Premises greater than those granted specifically by the Lease. Lessee and Bank further acknowledge, understand and agree that Lessor retains the mineral interest. In the event of any conflict between the Deed of Trust and the Lease, the Lease shall control in all respects as to Lessor and as to Lessee's and Bank's obligations to Lessor established by the Lease and/or this Agreement. In the event of any conflict between the Deed of Trust and this Agreement, this Agreement shall control. Except for the provisions set forth in Sections 3, 4 and 6 of this Agreement, in the event of any conflict between this Agreement and the Lease, the Lease shall control. 3. In the event that Lessor is required by the Lease to provide any kind of written notice to Lessee with regard to the Leased Premises, including notice of breach or default by Lessee, Lessor shall also provide a copy of such written notice to Bank. Lessor agrees that (i) Bank may perform any of the obligations or requirements imposed on Lessee by the Lease in order to avoid a breach or default under the Lease by Lessee, and (ii) Lessor will accept Bank's performance the same as if Lessee had performed such obligations or requirements. 4. Lessor agrees and covenants that it will not exercise any rights it may have under the Lease to cancel or terminate the Lease or to force surrender of all or part of the Leased Premises unless it first has provided Bank with written notice of its intent to exercise any such right. Bank shall have thirty (30) calendar days from the date it receives such notice to cure any monetary default under the Lease, and thirty (30) calendar days from the date it receives such notice to cure any other default under the Lease to Lessor's reasonable satisfaction in order to avoid such cancellation, termination or surrender, provided however, that if Bank, in good faith and after diligent and continuous efforts to remedy any non-monetary default under the Lease, cannot cure such default within thirty (30) calendar days, it shall notify Lessor in writing and Lessor and Bank shall negotiate in good faith a reasonable amount of additional time to cure such default. 5. Lessor hereby certifies to Bank, as of the date hereof, that: (a) Lessee has accepted and is in possession of the Leased Premises; (b) neither Lessor nor Lessee is in default in the performance of the Lease; (c) no rent under the Lease has been paid more than thirty (30) days in advance of its due date; (d) Lessee, as of this date, has no claim or offset against the rent; (e) except as otherwise provided herein, the Lease has not been modified and is valid and enforceable; (f) Lessor is the present owner and holder of the Leased Premises; (g) all amounts required to be paid under the Lease as of the date hereof have been paid and all terms required under the Lease as of the date hereof have been performed; and (h) Lessor agrees to comply in a timely manner with all terms of the Lease required to be performed by Lessor. 6. Notwithstanding the provisions of the Lease to the contrary, in the event Lessee shall be entitled to any insurance or condemnation proceeds with regard to the Leased Premises, the Deed of Trust provisions giving Bank the option to either apply such proceeds to the sums secured by the Deed of Trust or to permit Lessee to use such proceeds to repair the Leased Premises, shall be controlling. 7. Lessee agrees that it will not request or consent to any future modifications, amendments or assignments of the Lease without first receiving Bank's written consent thereto and providing a copy of such written consent to Lessor. Lessee understands and agrees that any such consent granted by Lessor without Bank's advance written consent shall be void and specifically releases, holds harmless and agrees to indemnify Lessor for any damages that may arise as a result of any such consent. 8. Lessor agrees that all of Lessee's machinery, equipment, inventory, fixtures or other property ("Lessee's Property") which may be located on the Leased Premises shall remain the personal property of the Lessee and shall not become a fixture or part of the realty notwithstanding anything that may be implied by law from the mode of attachment, installation or otherwise. Lessor further agrees that any lien or security interest Lessor may claim against any of Lessee's Property is subordinated to any lien or security interest now or subsequently held by Bank in any of such property. In the event that Bank undertakes to enforce its rights to any collateral granted by the Deed of Trust on account of a default by Lessee under the Deed of Trust, Lessor will cooperate with Bank in its efforts 2 to assemble and/or remove any of Lessee's Property on the Leased Premises. Bank hereby agrees to repair any damages at or to the Airport, including the Leased Premises, caused by or incident to such removal. 9. In addition to the insurance requirements set forth in the Deed of Trust and as a condition precedent to the effectiveness of this Agreement, Lessee agrees and covenants that it will endorse all insurance policies required by the Lease to name both Lessor and Bank as additional insureds. 10. Subject to Sections 4 and 7 of this Agreement, Lessor may take all action available to it under the Lease, at law or in equity in order to protect its interests, including, but not limited to, cancellation of Lessee's interest as provided by the Lease and in accordance with this Agreement. 11. Bank agrees that it will notify Lessor in writing when Bank has released its rights under the Deed of Trust. This Agreement will automatically terminate on the earlier of (i) the date as of which Bank releases such rights as evidenced by the filing in the real property records of a release of lien, or (ii) the date upon which the Lease expires or is terminated. 12. Except for a foreclosure sale of the Deed of Trust whereby Bank or an affiliated entity acquires Lessee's interest in the Lease, Bank may not sell or otherwise transfer in any way any of Bank's or Lessee's rights or interest in the Leased Premises unless Lessor consents to such sale or transfer in the form of a written agreement approved in advance by Lessor's City Council, which approval will not be unreasonably withheld. 13. Notices to Bank required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (i) hand delivered to Bank, its agents, employees, servants or representatives, or (ii) deposited in the United States Mail, certified, return receipt requested, addressed as follows: COMERICA BANK Mail Code 6566 P.O. Box 650282 Dallas, Texas 75265-0282 Attention: Bradley Cole 14. The parties hereto understand and agree that upon expiration or termination of the Lease, all structures, improvements and fixtures on the Leased Premises, and any items permanently attached to any such structure, fixture or improvement, will become the sole property of Lessor upon the terms set forth in the Lease, free and clear of all liens, including the Deed of Trust, except for improvements of a non-permanent nature, all trade fixtures, machinery, furnishings and other items may specifically be removed from the Leased Premises in accordance with the Lease. In the event that the Lease expires or is terminated, Lessee and Bank covenant and agree that nothing herein shall obligate Lessor to assume in any way Lessee's indebtedness to Bank. 15. This Agreement may not be withdrawn, amended or modified except by a written agreement executed by the parties hereto and approved by Lessor's City Council. Lessee and Bank covenant and agree that they will assign any rights and/or obligations under the Deed of Trust, without the prior written consent of Lessor. 3 16. This Agreement shall be construed in accordance with the laws of the State of Texas. Venue for any action arising under the provisions of this Agreement shall lie in state or federal courts located in Denton, Denton County, Texas. 17. This written instrument, including any documents attached hereto and/or incorporated herein by reference, contains the entire understanding and agreement between Lessor, Lessee and Bank as to the matters contained herein. Any prior or contemporaneous oral or written agreement concerning such matters is hereby declared null and void to the extent in conflict with this Agreement. 18. This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute but one and same Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the day of September, 2010. [Signature Pages Follow] 4 Signature Page to Consent to Deed of Trust Lien Upon Leasehold Denton Municipal Airport Airport Lease Agreement between the City of Denton and Global Maritime Supply Management, L.L.C. LESSOR: CITY OF DENTON, TEXAS By: Printed Name: City Manager ATTEST: Printed Name: Title: APPROVED AS TO LEGAL FORM: r i nted Name: 5 ~ ~vv'\ Title: i a STATE OF TEXAS § COUNTY OF DENTON § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Denton and that he executed the same as the act of the City of Denton for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of September, 2010. Notary Public in and for the State of Texas S Signature Page to Consent to Deed of Trust Lien. Upon Leasehold Denton Municipal Airport Airport Lease Agreement between the City of Denton and Global Maritime Supply Management, L.L.C. LESSEE: GLOBAL MARITIME SUPPLY MANAGEMENT, L.L.C., a Texas limited liability company By: Printed Nana Title: fi STATE OF TEXAS § COUNTY OF( § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared 1/L- Qers~ia.~-„ , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of Global Maritime Supply Management, L.L.C., a Texas limited liability company, and that he executed the same as the act of Global Maritime Supply Management, L.L.C., a Texas limited liability company, for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of September, 2010. t DAVlD TU Notary Public in and for the State of Texas t4dary Public, State of T"o my commission Wm June 21, 2014 Signature Page to Consent to Deed of Trust Lien Upon Leasehold . Denton Municipal Airport Airport Lease Agreement between the City of Denton and Global Maritime Supply Management, L.L.C. BANK: COMERICA By: Printed N Title: STATE OF TEXAS § COUNTY OF Pa- " § BEFORE ME, the dersi ed autho}}~'ty a Notary Public in and for the State of Texas, on this day personally appeared grQd tt, L • CQ , known to me to be the person whose name is subscribed to the foregoing instrum t, and acknowledged to me that the same was the act of Comerica Bank, a Texas financial institution, and that he executed the same as the act of Comerica Bank, a Texas financial institution, for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFF tlxis -L3 I'day of September, 2010. Notary Public in and-Tor the State of Texas A I am M2 EX nIT A DESCRIPTION OF PROPERTY Leasehold Estate created by that certain Lease Agreement by and between City of Denton, as Lessor and Avionics International Supply, Inc., as lessee, dated December 19, 1995, filed December 29, 1995, recorded in/under County Clerk's File No. 95-R0080485 of the Real Property Records of Denton County, Texas; with the interest of Avionics International Supply, Inc. having been assigned to Andy Johnson pursuant to that certain Assignment of Lease and Conveyance of Ownership of Leasehold Improvements dated June 3, 2010, and recorded in/under County Clerk's File No. of the Real Property Records of Denton County, Texas; with the interest of Andy Johnson having been assigned to Global Maritime Supply Management, L.L.C., a Texas limited liability company, pursuant to that certain Assignment of Lease and Conveyance of Ownership of Leasehold Improvements dated June 3, 2010, and recorded in/under County Clerk's File No. of the Real Property Records of Denton County, Texas; and encumbering the following described tract of land: ALL that certain tract or parcel of land situated in the W. NEIL SURVEY, ABSTRACT NUMBER 970, Denton County, Texas and being part of a tract shown by deed to City of Denton, recorded in Volume 305, Page 216, Deed Records, and being more particularly described as follows: COMMENCING at an iron rod in the centerline of Underwood Road being 563.48 feet South of the south right-of- way of FM 1515; THENCE South 89 54 29 West a distance of 30.00 feet to a point for corner and a point of beginning; THENCE South 00 22 23 West a distance of 145.00 feet to a point for corner; THENCE South 89 54 20 West a distance of 170.00 feet to a point for comer; THENCE North 00 22 23 East a distance of 145.00 feet to a point for corner; THENCE North 89 54 20 East a distance of 170.00 feet to the point of beginning for a lot containing 24,650.0 square feet and being 0.565 acres of land, more or less. EXHIBIT 3 DRAFT MINUTES AIRPORT ADVISORY BOARD SEPTEMBER 15, 2010 Approved by Airport Advisory Board on Chairman Mr. Brown Secretary, Mrs. Mullins After determining that a quorum was present, the Airport Advisory Board of the City of Denton, Texas convened in a Regular Meeting on September 15, 2010 at 5:30 p.m. in the Airport Terminal Building, Meeting Room at 5000 Airport Road, Denton, Texas, at which the following items were considered: BOARD MEMBERS PRESENT: Chairman, Mr. Brown, Vice Chairman Mr. Brewer, Dr. Smith, Mr. Pugh, Mr. Fykes, Mr. Clark and Mr. Schofield,. BOARD MEMBERS ABSENT: STAFF MEMBERS PRESENT: Quentin Hix, Airport Manager, Julie Mullins, Administrative Assistant, Andrea Sumner, Operations Coordinator, Mark Nelson, Transportation Director, Scott Aukerman, Field Service Worker, Jon Fortune, ACM, Bryan Langley, Chief Financial Officer and Director of Strategic Services. PUBLIC PRESENT: Mark Taylor, US Aviation Group, Jeff Soules, US Aviation Group, Rick Woolfolk, Michael Parafinik, US Aviation Group. ITEMS FOR INDIVIDUAL CONSIDERATION V. Receive a report hold a discussion and make a recommendation to City Council regarding a request from Global Maritime Supply Management, LLC, to receive an Estoppel for financing a facility expansion. Mr. Hix commented on a Consent To Lien Upon Leasehold as requested by Global Maritime Supply Management, LLC to secure financing from Comerica Bank for a facility expansion. There are no other changes to the leasehold. Mr. Schofield made a motion to recommend the Consent To Lien to the City Council for approval. Dr. Smith seconded motion. Motion carried 7-0 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Economic Development CM: George C. Campbell SUBJECT Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date ($210,200). BACKGROUND The City Council and the Denton Chamber of Commerce first entered into an economic development partnership agreement in 1986. The attached contract represents the 2010-11 annual agreement and funding for the Denton Chamber of Commerce Economic Development program. The 2010-11 agreement reflects a $25,000 decrease from last year's funding. The City's participation consists of General Fund and Utility Fund dollars and provides for the administration and operation budget of the Chamber of Commerce, which includes: • Salaries and benefits for two employees • Prospect generation activities • Economic Development Partnership Board support • Small Business Development Center support • Marketing activities, i.e. trade shows, publishing/printing, website(s) administration, marketing materials In order to maintain the Downtown Redevelopment Grant Program in 2010-11, the Economic Development Partnership Board recommended reallocating $35,046 remaining in the Chamber's Reserve Marketing Fund, along with any balance of 2009-10 Chamber Economic Development public funded dollars (estimated at $11,000), to the grant program. In addition to City funds, the Chamber of Commerce solicits private sector funding to enhance marketing and allies development efforts. PRIOR ACTION/REVIEW The Economic Development Partnership Board reviewed the budget and work plan for the 2010- 11 fiscal year and recommended approval of the $210,200 budget at their July 6, 2010 meeting. FISCAL INFORMATION The proposed contract provides for a total budget and City contribution of $210,200. However, with the reallocation of $35,000 in Reserve Marketing Funds and the $11,000 salary savings in the Chamber 2009-10 budget, the net 2010-11 City contribution to the Chamber Economic Development operation will total $164,200. -1- EXHIBITS Ordinance Denton Chamber of Commerce Economic Development Agreement Respectfully submitted: Linda Ratliff, Director Economic Development Department -2- 11C0DADIDepartments\Lega1\0ur DocumentslOrdinances1101Chamber 10-1 Ldoc ORDINANCE NO. AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS, AND THE DENTON CHAMBER OF COMMERCE REGARDING AN ECONOMIC DEVELOPMENT PARTNERSHIP; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton deems it is in the public interest and serves a municipal and public purpose to enter into an agreement with the Denton Chamber of Commerce for the purpose of providing for a program to promote economic development through the joint effort of the parties hereto; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. City Council finds that the Agreement between the City of Denton and the Denton Chamber of Commerce serves a valid municipal and public purpose and is in the public interest. SECTION 2. The Agreement between the City of Denton and the Denton Chamber of Commerce attached hereto and made a part hereof by reference (the "Agreement") is hereby approved. The Mayor, or in his absence, the Mayor Pro Tern, is hereby authorized to execute the Agreement on behalf of the City of Denton. The City Manager is hereby authorized to carry out the City's rights and duties under the Agreement including authorization for the expenditure of funds provided for in the Agreement. SECTION 3. This Ordinance shall become effective October 1, 2010 upon its passage and approval. PASSED AND APPROVED this the day of , 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE This Agreement is made between the City of Denton, Texas, ("City") and the Denton Chamber of Commerce ("Chamber") for the purpose of providing for a program to promote economic development through the joint effort of the parties hereto, who in consideration of their mutual promises, agree as follows: 1. Chamber Office of Economic Development ("Office"). During the term of this Agreement, the Chamber shall maintain an Office of Economic Development managed by the Vice President of Economic Development, who shall perform the duties of the office. 2. Duties of the Office. The Chamber of Commerce shall: a. Develop and maintain positive relationships with key economic development allies, including but not limited to, private sector investors, the Governor's Office of Economic Development, Greater Dallas Chamber of Commerce, and national, regional and local real estate brokers and land developers. b. Maintain memberships and involvement in economic development organizations, such as the International Economic Development Council and Texas Economic Development Council. c. Develop and produce marketing materials to promote Denton, including but not limited to, placement of advertising in trade publications, and the development and maintenance of websites (DentonEDP.com, DentonSites.com and DentonMD.org). d. Recruit prospective businesses through attendance at target market trade shows and events. e. Serve as point of contact for businesses interested in locating in Denton. f. Work closely with the City of Denton Office of Economic Development in the development of programs and policies. g. Prepare and obtain approval of the annual work plan and budget from the Economic Development Partnership Board and provide the Board with monthly activity reports. 3. Support Services and Funding. The Chamber shall provide the office space, equipment and support staff necessary to the operations of the Office of Economic Development. For the fiscal year2010-2011, the Chamber shall solicit and contribute private sector funds in the amount of $80,000, and the City shall provide funding in the amount of $210,200: $53,400 from the General Fund and $156,800 from the Utilities Fund. The balance of any unused City funds shall be returned to the City at the end of the fiscal year. Any funds provided by the City pursuant to this Agreement shall be retained in an account separate and segregated from the Chamber's general operating fund and shall only be used for the purpose provided for in this Agreement. The Chamber and the Office shall keep current and accurate records of all funds received and expended, which shall be subject to inspection and audit by the City at all reasonable times. All such financial records shall be subject to the Texas Public Information Act, Tex. Gov't Code Ch. 552. 4. Status of Office. The Office of Economic Development shall be under the direct supervision and control of the Chamber and all personnel of the Office shall be considered employees or agents of the Chamber. The Chamber shall be responsible for the processing of all benefits or payment of liabilities of such employees or agents, including the withholding or payment of personal income or social security taxes, as provided by applicable law, and the payment of worker's compensation premiums. The Chamber shall maintain policies of insurance in the minimum amounts required by law to protect against liability arising from the operation of any vehicles used by employees of the Office and the Chamber agrees to defend against, and indemnify and hold the City, its elected officials, officers, agents, employees and representatives harmless from any claim arising from any negligent act of such employees. Page 2 5. Term of Agreement. This Agreement shall be effective for a term of one (1) year, from October 1, 2010 through September 30, 2011. Either party may terminate this Agreement by giving written notice to the other thirty (30) days advance notice, in which case any unexpended funds provided by the City shall be returned to the City. EXECUTED this the day of 2010 CITY OF DENTON MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 3 DENTON CHAMBER OF COMMERCE AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be addressed DEPARTMENT: Purchasing to Mark Nelson 349-7702 All YT_ ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton approving Change Order Eight and Amendment to a Professional Services Agreement between the City of Denton, Texas and Innovative Transportation Solutions, Inc. dated March 5, 2002; extending said agreement, and authorizing and ratifying the expenditure of funds for work to be performed; authorizing the City Manager or his designee to execute the change order on behalf of the City and expend funds authorized for the change order; and providing an effective date. The Mobility Committee recommends consideration of the amendment by a vote of (3-0). BACKGROUND The original Professional Services Agreement approved by Council on March 5, 2002 (Exhibit 2) provides for the identification, development and implementation of major transportation and infrastructure projects including critical timelines for each identified project. This contract has supported our regional transportation efforts as summarized below: • Advocated and represented City of Denton Transportation needs associated with regional toll road issues surrounding SH 121 and SH 161 through the North Central Texas Council of Governments (NCTCOG). Innovative Transportation Solutions, Inc. (ITS) has provided substantial efforts in assisting with crafting regional toll policies that will greatly enhance transportation infrastructure in our community once 121 Regional Toll Revenue Funding Initiative funds becomes available. • Assisted City staff with the development and submission of transportation projects for the North Central Texas Council of Governments (NCTCOG) Regional Toll Revenue Initiative. • ITS has supported City of Denton planning efforts related to the western extension of Loop 288, coordination of planning activities for FM 2499 and securing Texas Department Of Transportation (TXDOT) commitment to enhance 1-3 5E to US 380 as part of the 1-3 5E project. • ITS continues to coordinate efforts with the County Bond Program (TRIP 08) that has a substantial amount of funds dedicated to transportation. Agenda Information Sheet September 21, 2010 Page 2 BACKGROUND (CONTINUED) • Coordination of key stakeholders in Denton County and the North Texas region on the planning, funding and eventual constriction of I-35 E in Denton and Dallas Counties. ITS provides a unique service to the City of Denton and the continued use of ITS services is integral to the development of future transportation infrastructure for the City of Denton. It is expected this contract will most certainly result in an overall savings of tax dollars above and beyond the expenditure for these services. Additionally, ITS services will greatly assist in ongoing legislative efforts to provide a funding solution to the I-35 E project between I-635 in Dallas and US 380 in Denton. PRIOR ACTION/REVIEW The Mobility Committee recommended consideration of this extension at the September 14, 2010 meeting (Exhibit 3). RECOMMENDATION Award Change Order Eight to the Innovative Transportation Solutions, Inc. in the amount of $126,000. PRINCIPAL PLACE OF BUSINESS Innovative Transportation Solutions, Inc. Farmers Branch, TX ESTIMATED SCHEDULE OF PROJECT This change order authorizes services to be performed through September 30, 2011. FISCAL INFORMATION Change Order Eight will provide payment in the amount of $10,500 monthly for an annual contract amount of $126,000. Change Order Eight brings the contract total to an amount not to exceed $1,045,000. Funds have been budgeted for this contract in the FY 2010-2011 Transportation Operations account 350000.7854. VV HIRITC Exhibit 1: Change Order Seven - Ordinance 2009-246 Exhibit 2: Ordinance No. 2002-062 (Professional Services Agreement) Exhibit 3: Mobility Committee Draft Minutes, September 14, 2010 Agenda Information Sheet September 21, 2010 Page 3 Respectfully submitted: Bryan Langley, 349-7100 Director of Finance 1-AIS-File 4155 Change Order 8 Exhibit I sAaur documents%ordinaneest09Gnnovative transportation solultions change order Moo ORDINANCE NO.~17 AN ORDINANCE OF THE CITY OF DENTON APPROVING CHANGE ORDER SEVEN AND AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND INNOVATIVE TRANSPORTATION SOLUTIONS, INC. DATED MARCH 5, 2002; EXTENDING SAID AGREEMENT, AND AUTHORIZING AND RATIFYING THE EXPENDITURE OF FUNDS FOR WORK TO BE PERFORMED; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CHANGE ORDER ON BEHALF OF THE CITY AND EXPEND FUNDS AUTHORIZED BY THE CHANGE ORDER; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on March 5, 2002 the City entered into a Professional Services Agreement with Innovative Transportation Solutions, Inc. (the "Consultant") to provide transportation consultation services (the "Contract"); and WHEREAS, on March 2, 2004 the City Council approved Change Order One; and WHEREAS, on October 5, 2004 the City Council approved Change Order Two; and WHEREAS, on October 18, 2005 the City Council approved Change Order Three; and WHEREAS, on September 26, 2006 the City Council approved Change Order Four; and WHEREAS, on November 6, 2007 the City Council approved Change Order Five; and WHEREAS, on September 23, 2008 the City Council approved Change Order Six; and WHEREAS, Change Order Seven to the Contract attached hereto and made a part hereof by reference as Exhibit "A" (the "Change Order") is necessary to add additional tasks, to extend the Contract from October 1, 2009 through September 30, 2010, and to authorize and ratify the expenditure of funds; and WHEREAS, the City Council finds that the Change Order and Amendment serves valid public and municipal purposes and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The Change Order and Amendment in substantially the form of the attached Change Order and Amendment is approved extending the Contract from October 1, 2009 through September 30, 2010. The City Manager, or his designee, is hereby authorized to execute Change Order Seven on behalf of the City and to make the expenditure of funds provided for by Change Order Seven in the amount of $10,500 per month for a total of $126,000. sAour documents\ordinances\09\innovative transportation solultions change order Tdoc SECTION 3. The City Manager, or his designee, is authorized to exercise all rights and duties of the City of Denton under this Contract. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. 4MRK A. URROU , MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT A CHANGE ORDER SEVEN AND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR TRANSPORTAION CONSULTANT SERVICES STATE OF TEXAS COUNTY OF DENTON THIS CHANGE ORDER SEVEN AND AMENDMENT to that certain contract made and entered into on the 5th day of March, 2002, hereinafter called "Contract" by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principle office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "Owner" and Innovative Transportation Solutions, Inc. with its corporate office located at 2701 Valley View Lane, Farmers Branch, Texas, hereinafter called "Consultant." WHEREAS, the parties wish to extend the Contract through the September 30, 2010 and make certain other changes more fully set forth herein; NOW, THEREFORE, WITNESSETH, that in the consideration of the covenants agreement herein contained, the parties hereto do mutually agree as follows: SECTION 1. Article II "Scope of Services" and Exhibit A attached to the Contract are hereby amended by adding the Exhibit A attached to this Contract (Change Order Seven). SECTION 2. Article IV. "Period of Services" is hereby amended to extend the period of service from October 1, 2009 through September 30, 2010. SECTION 3. Article V "Compensation" is hereby amended to provide that the consultant will be paid an additional amount of $10,500 per month or a total of $126,000 for the twelve month period from October 1, 2009 through September 30, 2010. SECTION 4. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of the Contract shall remain in full force and effect. IN WITNESS HEREOF, the City of Denton, Texas has caused this Contract to be executed by its duly authorized City Manager, or designee and Consultant has a uted this C rat through its duly authorized undersigned officer on this the day of o0 , 2009. CITY OF DENTON, TEXAS GEORG C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED A O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ATTACHMENT A WORK DIRECTIVE CHANGE NUMBER SEVEN TO THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE TRANSPORTATION SOLUTIONS, INC. This Work Directive Change (WDC) is made this ~ti day of A§Wa, 2009, between the City of Denton ("City") and Innovative Transportation Solutions, Inc. ("Consultant") to the above referenced Agreement (the "Contract") in the following respects: WORK DIRECTIVE CHANGE DESCRIPTION: Owner and Consultant acknowledge the following additions, deletions, or revision in the Scope of Work to be performed: • Facilitating the coordination between the City of Denton and the Texas Department of Transportation (TxDOT) on the reconstruction of IH-35 E from southern city limits to north of the City just north of the proposed Outer Loop; • Assist in the coordination between the City of Denton, TxDOT and the North Central Texas Council of Governments on the alignment and development of the Interstate 35 Corridor which is a part of the Innovative Connectivity Program formerly known as the Trans Texas Corridor; • Facilitating the coordination between the City of Denton and TxDOT on the development of the Outer Loop; • Facilitating the potential use of monies received from the SH 121 Regional Toll Revenue Initiative; • Facilitating the potential use of monies generated from the development of other regional toll facilities such as SH 161, SH 170, SH 360 and the Southwest Parkway through the Regional Toll Equity agreement established by the North Central Texas Council of Governments. • Facilitating coordination between the City of Denton and Denton County concerning the County Bond Program that has a majority of the funds dedicated to transportation; • Providing any needed staff assistance for the City's Mobility Committee including attending monthly meetings; • Providing any needed staff assistance for the City's CIP and Bond Oversight committee; • Preparing grant and other funding applications; • Representing the City of Denton with appropriate federal, state, regional and local agencies and meetings; • Other transportation planning, funding, and coordinating work as required by the City. Page 1 The continued use of ITS services is integral to the development of future transportation for the City of Denton, and will almost certainly result in an overall savings of tax dollars above and beyond the expenditure for these services. Total compensation for these services through September 30, 2010 is $10,500 per month for a total not to exceed $126,000. City hereby directs the Consultant to proceed as follows: The parties to the Contract formalize this WDC as Change Order Seven that changes the Scope of Work. It extends the term of the Contract through September 30, 2010. In all other respects, the Contract remains the same. CITY OF DENTON, T BY: - ~GtORGf, C. CAMPBELL ~ ~ D~ City Manager Date: ATTEST: JENNIFER WALTER CITY SECRETARY BY: - I A At A-,) APPROVED AS FORM: ANITA BURGESS, CITY ATTORNEY BY: INNOVATIVE TRANSP A TIONS, INC. BY: JOHN WOLSER - Title: ~x Date: a~f~t Page 2 Exhibit 2 ORDINANCE NO. AN ORDINANCI AUTHORIZING THE CITY NI-ANAGER `l'O FXECU`I-1 A PROFS L:SSIONAT.. SERVICES AGREEMENT (PSA) WI". 11 INNOVATIVETRANSPORTAT.ION SOIAITIONS, INC. FOR TI' ANSPOR.TATION SERVICISS AS SHT FORTH IN THE CONTRAMAND PROVIDING AN 1--, FECTIVE DATE,, (PSA 2791).. I'RCATESSIONAI.. SERVI(:I:S AGR EMENT FOR TRANSPORTATION SERVIC ES TO INNOVATIVE TRANSPORTATION SOLUTIONS, INC., FOR A 'f O'I'Al.. AMOUNT QI? S70,000)- THE COUNCIL OF 7101 CITY OF DENTON 1-11 PIEBY ORDAINS- W H REAS, The pro Assional scr vices provider (the"Provider) mcn inned it) this ordinance is bviug selected as the € wsl h€ghly CllltrhRod on the balls or its demonstrated competence and quali 6cations to pertorill the proposed professional sei-Vices; and WH F,R1 AS, The lees under the proposed contract are Mir and rt:aamud)le and are consistent with and not higher than the recommended practices and Cees pliblished by the proUssional associations applicable to [lie; Provider's I)rohn ion and such fees do not exceed the max€nlum provide(] by law, NOW. Ti-II-RITOIZI, SECTION II . That le City M:a€)ager is hereby authori zed to eater- into a prolessio€lal service Contrail Witt) ltlilov,ttivo ` I-ansl)ortatiOil Solutions, Inc.., to provide pt-ol'essional, architcctu.ral and related services loi- the Cross Tin-ibm Park, a copy ol'which is attached hereto and incorporated by reC rmwe herein. SEC"T'1ON 2. lie Chy M inager is who' and to expend funds as tvquhvd by the ttttr€clled contract. SIs(. I iON 3. The ilndhMs in to prey lible of this ord€n.ance are i"Gol-I)OI'11ted I'Crcil) l)y re Ference. SI:C="1'!ON 4. 1'klis circlinaElCf: S11.111 I)CCol-ne Cl,fcCti,,,u €€lZnlecliatoly tip(.m il, passage i€r1El approval. PASSED AND APPROVED this the day ol_^,6!2~; / 2002. I UF.INE' BROOK, MAYOR. A` "TT ST: lE?NNIT I?1Z 1VAT 'TI RS, C"1TY SECRETARY BY: )TX VL t{` ti APPR(?V1 D AS -1-0 LEIGALFORM: IIERBER"T' L PI~QUT,Y, C 1.-IN ATTORNE1,Y BY: P:SA ?7,'9 -'I'RA NSPOR`-I'A'14ON SEiliVI('I'S FOR PROI I.SSIONA[, of IZVICLS ORDINAN('I' PROFESSIONAL SERVICES AGREEMENT FOR FOR ENGINEERING SERVICES STATE OF TEXAS § COUNTY OF DENTON § THIS AGREEMENT is rnade and entered into as of the 51" day of March, 2002 by and between the City of Denton, Texas, a Texas municipal corporation, with its principal office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "OWNER" and Innovative Transportation Solutions, Inc., with its corporate office located at 2701 Valley View Lane, Farmers Branch, Texas, hereinafter called "CONSULTANT," acting herein, by and through their duly authorized representatives. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE 1 EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with the CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described project; The Project shall include, without limitation, services for the identification, development and impiernentation of major transportation and infrastructure projects including a critical time line for each project identified and the steps necessary to bring each project to completion. ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following services in a professional manner: The CONSULTANT shall perform all those services as necessary and as described in the Scope of Services, which is attached hereto and made a part hereof as Exhibit "A" as if written word for word herein. The CONSULTANT shall perform all those services set forth in CONSULTANT's Price Proposal for Engineering services associated with transportation infrastructure consultation per Exhibit "A" which is attached hereto and made a part hereof as if written word for word herein. If there is any conflict between the terms of this Agreement and the exhibits attached to this Agreement, the terms and conditions of this Agreement will control over the terms and conditions of the attached exhibits or task orders. ARTICLE 111 ADDITIONAL SERVICES Additional services to be performed by the CONSULTANT, if authorized by the OWNER, which are not included in the above-described Basic Services, are described as follows: During the course of the Project, as requested by OWNER, the CONSULTANT will be available to accompany OWNER's personnel when meeting with the Texas Natural Resource Conservation Commission, U.S. Environmental Protection Agency, or other regulatory agencies. The CONSULTANT will assist OWNER's personnel on an as- needed basis in preparing compliance schedules, progress reports, and providing general technical support for the OWNER's compliance efforts. Assisting OWNER or contractor in the defense or prosecution of litigation in connection with or in addition to those services contemplated by this Agreement. CONSULTANT, if any, shall furnish such services, on a fee basis negotiated by the respective parties outside of and in addition to this Agreement. Preparing applications and supporting documents for government grants, loans, or planning advances and providing data for detailed applications. Appearing before regulatory agencies or courts as an expert witness in any litigation with third parties or condemnation proceedings arising frorn the development or construction of the Project, including the preparation of engineering data and reports for assistance to the OWNER. ARTICLE 1V PERIOD OF SERVICE This Agreement shall become effective upon execution of this Agreement by the OWNER and the CONSULTANT and upon issue of a notice to proceed by tile, OWNER, and shall remain in force for the period of performance through September, 2002, or as required for the completion of the Project, including Additional Services, if any, and any required extensions approved by the OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. ARTICLE V COMPENSATION COMPENSATION TERMS: "Subcontract Expense" is defined as expenses incurred by the CONSULTANT in employment of others in outside firms for services in the nature of testing, estimating, structural studies, designing, electrical analysis, etc. "Direct Non-Labor Expense" is defined as that expense for any assignment incurred by the CONSULTANT for supplies, transportation and equipment, travel, communications, subsistence, and lodging away from home, and similar incidental expenses in connection with that assignment. BILLING AND PAYMENT: For and in consideration for professional services rendered monthly by CONSULTANT based on the scope of services shown in Exhibit "A", which is attached hereto and made a part of this Agreement as if written word for word herein, OWNER agrees to pay CONSULTANT'S reasonable and customary annual fee of ONE HUNDRED AND TWENTY THOUSAND AND 00/100 DOLLARS ($120,000) (the "Annual Fee") per year. The Annual fee will he pro-rated for the seven months remaining in the OWNER'S current fiscal year. The OWNER agrees to pay CONSULTANT TEN THOUSAND AND 00100 DOLLARS ($10,000.00) (the "Monthly Payment") per month towards the OWNER'S annual fee obligation. CONSULTANT shall submit to the OWNER through its City Manager or his designee, a detailed monthly itemized statement for all professional services rendered for the previous month. The OWNER agrees to remit Monthly Payment in accordance with the procedures outlined in Article V of the executed Professional Services Agreement. Nothing contained in this Article shall require the OWNER to pay for any work which is unsatisfactory, as reasonably determined by the City Manager or his designee, or which is not submitted in compliance with the terms of this Agreement. The OWNER shall not be required to make any payments to the CONSULTANT when the CONSULTANT is in default under this Agreement. It is specifically understood and agreed that the CONSULTANT shall not be, authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense, or reimbursement above the maximum not to exceed fee as stated, without first having obtained written authorization from the OWNER. The CONSULTANT shall not proceed to perform the services listed in Article III "Additional Services," without obtaining prior written authorization from the OWNER. ADDITIONAL SERVICES: For additional services authorized in writing by the OWNER in Article III, the CONSULTANT shall be paid based on the Schedule of Charges at an hourly rate negotiated and agreed upon by both parties before execution of the additional services. Payments for additional services shall be dr.le and payable upon submission by the CONSULTANT, and shall be in accordance with subsection B hereof. Statements shall not be submitted more frequently than monthly. PAYMENT: If the OWNER fails to make payrnents due the CONSULTANT for services and expenses within sixty (60) days after receipt of the CONSULTANT's undisputed statement thereof, the amounts due the CONSULTANT will be increased by the rate of one percent (1%) per month from the said sixtieth (W) day, and, in addition, the CONSULTANT may, after giving seven (7) days' written notice to the OWNER, suspend services under this Agreement until the CONSULTANT has been paid in full all amounts due for services, expenses, and charges, provided, however, nothing herein shall require the OWNER to pay the late charge of one percent (1 )/o) set forth herein if the OWNER reasonably determines that the work is unsatisfactory, in accordance with this Article V, "Compensation." ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the work of the CONSULTANT or any subcontractors or subconsultants. ARTICLE VII OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the CONSULTANT (and CONSULTANT's subcontractors or subconsultants) pursuant to this Agreement are instruments of service, and shall become the property of the OWNER upon the termination of this Agreement. The CONSULTANT is entitled to retain copies of all such documents. The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this Project, and OWNER's use of these documents in other projects shall be at OWNER's sole risk and expense. In the event the OWNER uses any of the information or materials developed pursuant to this Agreement in another project or for other purposes than specified herein, CONSULTANT is released frol-n any and all liability relating to their use in that project. ARTICLE Vlll INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. CONSULTANT shall not have or china any right arising from employee status. ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officers, agents, and employees from and against any and all liability, clairns, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the OWNER, and including, without limitation, darnages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governr-rental immunity, which defenses are hereby expressly reserved. ARTICLE X INSURANCE During the performance of the services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: Commercial General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. Worker's Compensation Insurance in accordance with statutory requirements, and Employers' Liability Insurance with limits of not less than $100,000 for each accident. Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. The CONSULTANT shall furnish insurance certificates or insurance policies at the OWNER's request to evidence such coverages. The insurance policies shall name the OWNER as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without thirty (30) days' prior written notice to OWNER and CONSULTANT, In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE XI TERMINATION OF AGREEMENT Notwithstanding any other provision of this Agreement, either party may terminate by giving thirty (30) days' advance written notice to the other party. This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the non-performance, and not less than thirty (30) calendar days fa cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination- If the Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services and shall render a final bill for services to the OWNER within thirty (30) days after the date of termination. The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination, in accordance with Article V "Compensation." Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information. The CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its use. ARTICLE X111 RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the OWNER shall not constitute, nor be deemed a release of the responsibility and liability of the CONSULTANT, its employees, associates, agents, subcontractors, and subconsultants for the accuracy and competency of their designs or other work; nor shall such approval be deemed to be an assumption Of such responsibility by the OWNER for any defect in the design or other work prepared by the CONSULTANT, its employees, subcontractors, agents, and consultants. ARTICLE XIV NOTICES All notices, communications, and reports required or permitted under this Agreement: shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To CONSULTANT: John R_ Polster Innovative Transportation Solutions, Inc 2701 Valley View Lane Farmers Branch, Texas 75234 To OWNER, City of Denton Tom Shaw, Purchasing Agent 901-B Texas Street Denton, Texas 76209 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' rnailing. ARTICLE XV ENTIRE AGREEMENT This Agreement, consisting of 9 pages and Exhibit A, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE XVI SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, the CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XIX PERSONNEL The CONSULTANT represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the OWNER. CONSULTANT shall inform the OWNER of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. All services required hereunder will be performed by the CONSULTANT or under its supervision- All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. ARTICLE XX ASSIGNABILITY The CONSULTANT shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the OWNER. ARTICLE XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shill be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed, and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE XXII MISCELLANEOUS The following exhibits are attached to and made a part of this Agreement: CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after the final payment under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers, and records the that OWNER involving transactions relating to this Agreement. CONSULTANT agrees shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section- OWNER shall give CONSULTANT reasonable advance notice of intended audits. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas- This Agreement shall be construed in accordance with the laws of the State of Texas. For the purpose of this Agreement; the key persons who will perform most of the work hereunder shall be John R Polster and Tracy L. Henry. However, nothing herein shall limit CONSULTANT from using other qualified and cornpetent members of its firm to perform the services required herein. CONSULTANT shall commence, carry on, and corriplete any and all projects with all applicable dispatch, in a sound, economical, and efficient manner and in accordance with the provisions hereof. In accomplishing the projects, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the OWNER. The OWNER shall assist the CONSULTANT by placing at the CONSULTANT's disposal all available information pertinent to the Protect, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the CONSULTANT to enter in or upon public and private property as required for the CONSULTANT to perform services under this Agreement- The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duty authorized City Manager, or designee and CONSULTANT has executed this Agreement through its duly authorized undersigned officer on this the 5 day of _March. 2002. CITY OF DENTON, TEXAS CON - T- W ITN SS: BY. APPROVE EXHIBIT A 1. SCOPE OF SERVICES. Innovative Transportation Solutions, Inc., hereinafter called "CONSULTANT," will specifically conduct the following services for The OWNER, hereinafter called "OWNER".- TASK 1: Meet with City staff and Council to establish Priority Projects. CONSULTANT will conduct initial investigation and analysis of all projects. CONSULTANT proposes to work closely with City staff and each individual Council member to: actively identify needed transportation improvements, analyze the viability and necessity of each project, determine the critical path for developing each project, as well as manage and monitor the progress of transportation projects identified by the OWNER, Furthermore, CONSULTANT will attend meetings with and on behalf d' Council members, staff, and other City officials in addition to "grass roots" citizens in order to facilitate transportation solutions. TASK 2: Conduct In-depth Research to ldentifv Each Proiect's Current Status. CONSULTANT will conduct all research necessary with respect to local, regional, and state advanced planning programs, such as 1-horoughfare Plans, Transportation Improvement Program, Unified Transportation Program, Conformity, Mobility 2025 Update and all succeeding programs. CONSULTANT will analyze projects in order to promote the completion of the development, funding and construction of all identified projects ill an expedited manner. CONSULTANT will investigate and review plans proposed by TxDOT, NTTA, North Central Texas Council of Governments (NCTCOG), counties, and local cities to ensure compatibility with existing and future thoroughfare plans of the OWNER. TASK 3: Provide the OWNER a_Written and Verbal Status Summary of Each Project CONSULTANT will provide written and verbal updates cn all phases of projects. Monthly meetings will be held with staff members and other agencies. Semi-annual meetings/workshops will be held with Council members to keep all parties informed of the status of on-going projects and to identify Council rnernbers' concerns and suggestions. TASK 4: Identify Critical Paths for Each Project Based Upon its Advanced Pianning Status and Initiate the Critical Path for Each Proiect. CONSULTANT will develop a critical time line for each project and identify the steps necessary to bring each project to completion. Time lines will be based upon the background investigation performed for each project:. Project strategies will include actions to be conducted in the advanced planning stages of the project in order to ensure the completion of alignment and feasibility studies, environmental clearance, and preliminary design. Additional strategies for expediting projects include actions necessary for completion of right-of-way documents, initiation of right-of-way acquisition aid utility clearance, as well as development of plans, specifications and estimates (PS&E). Projects will be monitored to ensure that right-of-way acquisition, utility relocation, and PS&E are completed in time to meet the projected construction start date and schedule. CONSULTANT will serve as the project manager for the OWNER's select projects to ensure that established goals and deadlines are met. To accomplish this, CONSULTANT will assemble project-specific teams to complete all aspects of critical path in a timely and cost effective manner. Critical path items include, but are not limited to the following: Work with TxDOT on On-System Projects a. Conduct Program Assessments (PA's) b. Receive Control-Section-Job (CSJ) numbers C. Programming Authority d. Advanced Planning Authorization Ensure the Development of Advanced Planning a. Assist in selection of outsource firm(s) b. Pursue Environmental clearance c_ Participate in development of Controlled Schematic d. Track project through all review and approval processes e. Outline methods to preserve corridors and right of way f. Assist with Public Involvement Develop Funding Alternatives a. Partnerships b- Bond Programs c. MPO/TIP programs d. TxDOT/UTP programs e. Federal Funding L Innovative Financing g. State lnfrastruch.tre Bank Implement Design a. Participating in review of final designs b. Coordinating project timing and scheduling c_ Ensuring adherence to work schedules Management a. Assist in selection of out-source firms for all phases of project. b. Oversight of contractual obligations of all out-sourced firms c. Review and approval of invoices from out--source firms d. Ensure adherence to project schedule TASK 5: _CONSULTANT will Research and Investigate Funding Opportunities. With a shortage of federal and state dollars for transportation projects, it will be critical for CONSULTANT to continually seek "creative financing" opportunities in order to meet the Iransportation needs of the OWNER. CONSULTANT will research and investigate the possibility of obtaining funding for each Project under the Transportation Equity Act for the 21" Century (TEA 21). CONSULTANT will also focus on the continued development of partnerships with TxDOT Dallas District. Local bond programs will be sought to identify financing opportunities. Privatelpublic partnerships will be pursued. Funding opportunities using the State Infrastructure Bank (SIB), TxDOT's Unified Transportation Program, and the Transportation lrnprovenient Program will be researched and implen'iented when appropriate. In addition, applications for random "calls for projects" as identified by the North Central Texas Council of Governments will be submitted. TASK 6: CONSULTANT will Negotiate reen7enfs with TxDOT. When appropriate, CONSULTANT will negotiate Local Advanced Funding Agreements (LPAFAs) with TxDOT for each project. The LPAFA outlines the responsible parties for advanced planning, right-of-way acquisition, design, and funding of specific projects. TASK 7: CONSULTANT will Act as a Liaison between OWNEI? and other Local State and Federal Transportation Bodies_ CONSULTANT will act as liaison between The OWNER and other local, state and national transportation groups- As liaison, CONSULTANT will act as the transportation advocate for The OWNER by working positively and efficiently with other transportation groups toward completion of projects critical to The OWNER. CONSULTANT will interact, on behalf of The OWNER, with the Federal Highway Administration, the Texas Transportation Commission and Texas Department of Transportation and the North Texas Tollway Authority (NTTA). In addition, CONSULTANT wilt act as liaison between The OWNER and other groups such as the Regional Transportation Council of the North Central Texas Council of Governments. Precinct 1 Task Force, Precinct 3 Task Force, Dallas Regional Mobility Coalition, the Dallas Area Rapid Transit, The T, Denton County Transportation Authority, North Texas Commission, and the Partners in Mobility. TASK S. CONSULTANT will Provide other Transportation Consulting Services as Directed by the OWNER- As a part of this Enhancement Proposal, CONSULTANT will actively pursue all transportation related issues as identified by the OWNER. CONSULTANT will continue dialogue with the OWNER to ascertain the relative priority of each project to other projects and attend council meetings, as directed, to provide updates on all transportation activities. TASK 9: CONSULTANT Will Implement Cost Reduction Strategies. CONSULTANT has an unparalleled history of identifying cost reductions for its clients- For the OWNER, the following is a list of possible cost reduction strategies: Leveraging funding - Transportation Infrastructure funding is almost always a partnership process. CONSULTANT will strive to maximize the OWNER's transportation dolleirs by "Ieveraging- those funds with eligible funding sources. In many cases, CONSULTANT will be able to leverage funds to capture "non- city" sources that will increase funding to the project by 300% to .500%. 2. Certification - Certification refers to the process a municipality follows to receive authorization by TxDOT to retain services on behalf of the State. Certification allows the OWNER to be reimbursed by the federal government up to 900 ? of expenditures for authorized services. CONSULTANT has unique knowledge of the certification process and will assist the OWNER in acquiring this certification, if directed. 1 Ira-Douse versus Outsourcing - CONSULTANT will provide preliminary design services for select projects in order to identify the basic parameters of the project needs. Upon further project development, it is CONSULTANT' philosophy that final design engineering can be conducted in a manner that is more economically feasible if it is done by an engineering firm specializing in final designs. IL COMPENSATION TERMS In consideration for professional services rendered monthly by CONSULTANT, OWNER agrees to pay CONSULTANT'S reasonable and customary annual fee of ONE HUNDRED AND TWENTY THOUSAND AND 00/100 DOLLARS ($120,000) (the "Annual Fee") per year, pro-rated for the seven months remaining in the OWNER'S current fiscal year. The OWNER agrees to pay CONSULTANT TEN THOUSAND AND 00100 DOLLARS ($10,000.04) (the "Monthly Payment") per month towards the OWNER'S annual fee obligation. CONSULTANT shall submit to the OWNER a monthly itemized statement for all professional services rendered- The OWNER agrees to remit Monthly Payment in accordance with the procedures outlined in Article V of the executed Professional Services Agreement- V. EXPENSES The CONSULTANT shall not seek any reirnburscrnent from the OWNER for any reasonable and customary expenses incurred in connection with the services related to engagement- 4 V. STANDARD RATE SCHEDULE The services related to this project will be based upon the following Standard Billing Rates. Standard Billing Rates are subject to change each calendar year- Professional Principal Engineer Principal Senior Engineer Engineering Associate I Engineering Associate it Technical Associate Staff Support _ Standard Billing Rate $150 _ $125 $100 $90 $35 ti Exhibit 3 1 DRAFT MINUTES 2 City Council Mobility Committee 3 Tuesday, September 14, 2010 5 After determining that a quorum of the Mobility Committee of the Denton City Council was 6 present, the Chair of the Committee on the Mobility thereafter convened into a meeting on 7 Tuesday, September 14, 2010 at 1:07 p.m. in the City Council work session room, 215 E. 9 McKinney Street, Denton, Texas. 10 Present: Chair Pete Kamp Council Member Dalton Gregory 11 Mayor Mark Burroughs, (1:14) 12 13 Also Present: Mark Nelson, Transportation Director; Jim Coulter, Director Water Utilities; 14 Emerson Vorel, Director Parks and Recreation; Bryan Langley, Director of Finance; Fred 15 Greene, Assistant City Manager; Jon Fortune, Assistant City Manager; George Campbell, City 16 Manager; Anita Burgess, City Attorney; John Cabrales, Public Information & Intergovernmental 17 Relations Officer; John Polster, ITS; Lindsey Baker, Assistant to the City Manager; Kim is Mankin, Administrative Assistant III; (3) DCTA Members 19 20 OPEN MEETING 21 22 5) Receive a report, hold a discussion and take appropriate action concerning a proposed an 23 ordinance of the City of Denton, Texas approving Change Order Eight, an amendment to a 24 professional service agreement between the City of Denton, Texas and Innovative 25 Transportation Solutions, Inc. dated March 5, 2002, extending said agreement, and 26 authorizing and ratifying the expenditure of funds for work to be performed; authorizing the 27 City Manager or his designee to execute the change order on behalf of the City and expend 28 funds authorized for the change order; and providing an effective date. 29 30 Chair Pete Kamp stated that working with John Polster and his entire company; the experience 31 and dedication is absolutely vital to the City especially going forward with the funding of I-35. 32 Kamp looks forward to continuing our work with Mr. Polster. Mark Burroughs, Mayor, the City 33 and staff has come up with the budget to allow the input of a regional transportation leader which 34 the City has become. ITS has a long history of effective information. It was a concern that the 35 City of Denton as well as Denton County had a contract with ITS. Mr. Polster has done an 36 excellent job of handling both. Kamp further stated that the contract works out well for the City 37 and the County. We have many common goals and working together with Mr. Polster and with 39 his company has worked well. Gregory wanted to clarify that staff is talking about extending 39 ITS's contract. Kamp stated that was correct. 40 41 Dalton Gregory moved to approve the contract. Mark Burroughs seconded the motion. 42 Approved 3-0 vote. 43 44 The meeting was adjourned by consensus at 1:56 p.m. s:tlegaRour documentslordinauces1lO1 nnovative transportation solutions change order 8.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON APPROVING CHANGE ORDER EIGHT AND AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND WNTOVATIVE TRANSPORTATION SOLUTIONS, INC. DATED MARCH 5, 2002; EXTENDING SAID AGREEMENT, AND AUTHORIZING AND RATIFYING THE EXPENDITURE OF FUNDS FOR WORK TO BE PERFORMED; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE CHANGE ORDER ON BEHALF OF THE CITY AND EXPEND FUNDS AUTHORIZED BY THE CHANGE ORDER; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on March 5, 2002 the City entered into a Professional Services Agreement with Innovative Transportation Solutions, Inc. (the "Consultant") to provide transportation consultation services (the "Contract"); and WHEREAS, on March 2, 2004 the City Council approved Change Order One; and WHEREAS, on October 5, 2004 the City Council approved Change Order Two; and WHEREAS, on October 18, 2005 the City Council approved Change Order Three; and WHEREAS, on September 26, 2006 the City Council. approved Change Order Four; and WHEREAS, on November 6, 2007 the City Council approved Change Order Five; and WHEREAS, on September 23, 200$ the City Council approved Change Order Six; and WHEREAS, on September 20, 2009 the City Council approved Change Order Seven; and WHEREAS, Change Order Eight to the Contract attached hereto and trade a part hereof by reference as Exhibit "A" (the "Change Order") is necessary to add outline tasks, to extend the Contract from October 1, 2010 through September 30, 2011, and to authorize and ratify the expenditure of funds; and WHEREAS, the City Council finds that the Change Order and Amendment serves valid public and municipal purposes and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DE,NI'ON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The Change Order and Amendment in substantially the form of the attached Change Order and Amendment is approved extending the Contract from October 1, 2010 through September 30, 2011. The City Manager, or his designee, is hereby authorized to execute Change Order Eight on behalf of the City and to snake the expenditure of funds provided for by Change Order Eight in the amount of $10,500 per month for a total of $126,000. SECTION 3. The City Manager, or his designee, is authorized to exercise all rights and duties of the City of Denton under this Contract. SECTION 4. This ordinanee shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY f S BY; EXHIBIT A CHANGE ORDER EIGHT AND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR TRANSPORTAION CONSULTANT SERVICES STATE OF TEXAS § COUNTY OF DENTON § THIS CHANGE ORDER EIGHT AND AMENDMENT to that certain contract made and entered into on the 5"' day of March, 2002, hereinafter called "Contract" by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principle office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "Owner" and Innovative Transportation Solutions, Inc. with its corporate office located at 2701 Valley View Lane, Farmers Branch, Texas, hereinafter called "Consultant." WHEREAS, the parties wish to extend the Contract through the September 30, 2011 and make certain other changes more fully set forth herein; NOW, THEREFORE, WITNESSETH, that in the consideration of the covenants agreement herein contained, the parties hereto do mutually agree as follows: SECTION 1. Article II "Scope of Services" and Exhibit A attached to the Contract are hereby amended by adding the Exhibit A attached to this Contract (Change Order Eight). SECTION 2. Article IV. "Period of Services" is hereby amended to extend the period of service from October 1, 2010 through September 30, 2011. SECTION 3. Article V "Compensation" is hereby amended to provide that the consultant will be paid an additional amount of $10,500 per month or a total of $126,000 for the twelve month period from October 1, 2010 through September 30, 2011. SECTION 4. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of the Contract shall remain in full force and effect. M WITNESS HEREOF, the City of Denton, Texas has caused this Contract to be executed by its duly authorized City Manager, or designee and Consultant has executed this Contract through its duly authorized undersigned officer on this the day of .2010. CITY OF DENTON, TEXAS GEORGE C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: r ATTACHMENT A WORK DIRECTIVE CHANGE NUMBER EIGHT TO THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE TRANSPORTATION SOLUTIONS, INC. This Work Directive Change (WDC) is made this day of 2010, between the City of Denton ("City") and Innovative Transportation Solutions, Inc. ("Consultant") to the above referenced Agreement (the "Contract") in the following respects: WORK DIRECTIVE CHANGE DESCRIPTION: Owner and Consultant acknowledge the following additions, deletions., or revision in the Scope of Work to be performed: • Facilitate coordination between the City of Denton, the North Central Texas Council of Governments (NCTCOG) and the Texas Department of Transportation, (TxDOT) on the reconstruction of IH-35 E from southern city limits to the northern city limits; • Assist in the coordination between the City of Denton, TxDOT and NCTCOG on the alignment and development of the Interstate 35 Corridor which is a part of the My35 planning initiative formerly known as the Trans Texas Corridor; • Facilitate the coordination between the City of Denton and TxDOT on the development of the proposed Outer Loop; • Assist in coordinating key City of Denton transportation projects with stakeholders to include, but not be limited to, Denton County, Denton County Transportation Authority, NCTCOG and TxDOT; • Assist in facilitating the use and implementation of monies received from the SH 121 Regional Toll Revenue Initiative; • Assist in the programming and use of monies generated from the development of other regional toll facilities such as SH 161, SH 170, SH 360 and the Southwest Parkway through the Regional Toll Equity agreement established by the NCTCOG; • Facilitate coordination between the City of Denton and Denton County concerning the County Bond Program that has a majority of the funds dedicated to transportation; • Assist the City of Denton in monitoring funding sources and opportunities to advance key City of Denton transportation projects; • Provide any needed staff assistance for the City's Mobility Committee including attending monthly meetings, preparing reports, and providing presentations; • Provide any needed staff assistance for the City's CIP and Bond Oversight committee; • Assist in the preparation and development of grant and other funding applications; • Represent the City of Denton with appropriate federal, state, regional and local agencies and meetings; • Other transportation planning, funding, and coordinating work as required by the City. Page 1 The continued use of ITS services is integral to the development of future transportation for the City of Denton, and has resulted in an overall savings of tax dollars above and beyond the expenditure for these services. Total compensation for these services through September 30, 2011 is $10,500 per month for a total not to exceed $126,000. City hereby directs the Consultant to proceed as follows: The parties to the Contract formalize this WDC as Change Order Eight that changes the Scope of Work. It extends the term of the Contract through September 30, 2011. In all other respects, the Contract remains the same. CITY OF DENTON, TEXAS BY: GEORGE C. CAMPBELL City Manager Date: ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS FORM: ANITA BURGESS, CITY ATTORNEY BY: INNOVATIVE J BY: `)TATION S UTIONS, INC. JO R. P STE Titl . Date: Page 2 CITY OF DENTON CITY COUNCIL MINUTES July 19, 2010 After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Special Called Work Session on Monday, July 19, 2010 at 11:36 a.m. in the Council Work Session Room. PRESENT: Mayor Burroughs, Council Member Engelbrecht, Council Member Gregory, Council Member King, and Council Member Watts. ABSENT: None. 1. The Council received a report, held a discussion, and gave staff direction regarding alternatives for transportation and economic development opportunities, which were currently being discussed in the 81st Interim Legislature and by various regional and statewide transportation stakeholders. Lindsey Baker, Assistant to the City Manager, briefed the Council on Transportation Reinvestment Zones. She stated that this was a preliminary discussion to the upcoming discussion on August 3 on Tax Increment Finance Zones. She stated that she would also highlight the funding alternatives that the State Legislature might extend in the 82nd legislative session to municipalities, counties and other political subdivisions of the state. Baker stated that the Transportation Reinvestment Zone (TRZ) was created in 2007 by the Legislature primarily to promote a transportation project in an unproductive or underdeveloped area. The statute authorized municipalities and counties to dedicate a portion of property tax revenue to finance highway projects. The language did not currently define the radius of a proposed zone. In order to be eligible for a TRZ, a municipality must enter into a pass-through agreement with TxDOT, which essentially meant that it had to be a state roadway or highway. A city could not use a TRZ to finance a street project or non-TxDOT roadway project. By entering into a pass thru agreement, a city-financed highway project would lead, in theory, to economic development in the area adjacent to the highway and increased property values allowing the city to capture the incremental tax increase from the property to help fund that project. Also, TxDOT would reimburse the municipality based on a "per vehicle fee" or a "per vehicle mile fee" that was determined by the number of vehicles using a highway. Campbell stated that the intent of the pass thru tolling agreement was that the reimbursement from the state would be used to off-set the city's debt service cost. It would be dependent upon usage and volume of traffic and would not pay back 100 percent of costs. Campbell stated when the TRZ was created, a city determined the baseline of the tax value that was there at the time. Any value increase that occurred because of new constriction or growth in value was assumed to have occurred because of the project that was being constricted by the TRZ and all of the incremental increase in the tax value was accrued to the benefit of the TRZ. You still maintained what you had at the baseline level prior to the creation of the TRZ. Baker stated that the Texas Transportation Commission determined the boundaries of the TRZ and the conditions of the creation of the TRZ. City of Denton City Council Minutes July 19, 2010 Page 2 Baker stated that the difference between a TRZ Transportation Reinvestment Zone and TIRZ Tax Increment Reinvestment Zone was that a TIRZ was synonymous with a TIF. With a TRZ, only the property tax increment could be used. Whereas in a TIF, both the sales tax and property tax increment could be used. Baker stated that there was a difference between the TIRZ and the TIF, even though both provided for tax increment financing for economic development and for roadway constriction in under-developed areas. The major difference was that the TIF allowed the creating entity to capture both the local property tax increment and the local sales tax growth increment; and they could dedicate a portion-all or none-of that incremental tax growth to the designated project. Current TRZ legislation was such that you had to put forth 100% of the property tax increment growth. Another difference was that collection of the sales tax increment in a TRZ was not permitted at this time; only the property tax. One other difference was that within a TIF, the creating entity could use the dollars to fund infrastructure improvements including sidewalks, streets, and beautification projects. Baker stated that back in February the house and senate transportation committees held a hearing to consider the interim charge of policy implications of Transportation Reinvestment Zones funded by state sales and use taxes as an alternative to public financing of transportation projects. The committee discussed a bill that had been proposed but did not pass in 2009 during the 81st legislature and that was SB 505. SB 505 proposed creating a Transportation Finance Zone or TFZ. This would actually authorize the Texas Transportation Commission to designate an area adjacent to a state highway project as a TFZ and could have authorized the use of proceeds from state sales and use taxes but not property taxes to fund the project. It was not stated if it was the incremental growth or 100%. They had discussed expanding the scope of the eligible projects to include all transit related projects, including highways, streets, and rail. They also discussed possibly extending the use of sales and use tax to a TRZ, in addition to the property tax. The financing tool would possibly be collection of local sales and use tax, in addition to the local property tax increment to fund the designated project. The new modified TRZ would still not be as broad as a TIF in terms of eligible projects such as the infrastructure improvements, lighting, etc. that could be done in a TIF. Baker stated that if the legislature proceeded with the TRZ legislation as discussed, there were many unanswered questions which might pose risks to a municipality's tax base. Only cities and counties were authorized to create the TRZ and the TIF but there was concern that other political subdivisions of the state might lobby the legislature to gain that authority. Baker stated that staff had the following concerns: 1. If another governing body were allowed to form a TRZ within city limits and collect the local sales and local property tax increment, this would essentially act as a revenue cap limiting the city's ability to collect those taxes above the base tax rate that was established to measure that incremental growth. 2. It might be possible that another governing body could be given authority to create a TRZ that overlapped an existing municipal TIF. 3. It was not clear, that if a TRZ were created by another governing body that overlapped an existing municipal TIF, if funds that had not been dedicated to the project costs of the designated TIF could go to the governing body of the overlapping TRZ, reducing the tax base of the TIF governing body. City of Denton City Council Minutes July 19, 2010 Page 3 4. The TRZ legislation might be modified to include a 2 mile radius on either side of the center line of the highway project. If another governing body was given authority to create a TRZ, they would be able to capture the sales and property tax base within that 2-mile radius. General consensus of the Council was that staff support all transportation funding options provided they did not eliminate or reduce municipal authority or revenue sources. 2. The Council received a report, held a discussion and gave staff direction regarding street maintenance issues. Jim Coulter, Director of Water Utilities, briefed the council regarding street maintenance issues, current maintenance activities, and staff recommendations on the changes needed to adequately operate and maintain the street system. He stated that in 2003 a consultant performed an automated pavement evaluation. This evaluation gave staff an assessment of the Overall Condition Index of the City's street network. Based on the analysis of the road condition, the consultant performed model nuns to determine the level of expenditure necessary to prevent the deterioration of the City's roadway system. A second automated pavement assessment project was started in 2009. The consultant was finalizing the analyses to determine the maintenance activities necessary to prevent the deterioration of the road system. He stated that there were 1,382 lane miles valued at $383 million currently in Denton. The City had added an average of 25-30 lane miles per year over the past six years. He stated that initial constriction to reconstruction was 20 years for asphalt and 35 years for concrete. If we did not maintain our streets, it would cost (using a 20 year average life-cycle) $383 million over 20 years, which would be $19.15 million per year. This was assuming that 1/20 of the streets were repaired each year. The results of the 2008 citizen survey rating city services showed that of the citizens responding, 35% ranked street maintenance as excellent/good and 65% ranked it fair/poor. Coulter briefed the council on preventative maintenance activities - crack seal, micro-seal, hot- mix asphalt overlay, and street reconstruction. He stated that pavement distresses included cracking, base failure, horizontal cracking, and transverse. He stated that pavement distress was caused by: wheel load - 1 trick equals 9,300 passenger vehicles; environment - weather hot, dry, wet, freezing; poor drainage; material deficiencies; external causes (utilities - cuts); expansive soils. Coulter stated that the current street budget was $4.5 million. It consisted of $2.5 million for labor and equipment and $1.9 for materials. There were three crews - patching, constriction, and crack seal/pothole. Coulter stated that by looking at the 20-year life cycle costs and assuming a cost of $300,000 per lane mile, it indicated we needed to be spending 20.7 million dollars per year for annual maintenance. Our current standards for roadway constriction should yield a 35 to 40-year life cycle. He stated that by increasing the life cycle of our roadways to 35-40 years, the annual maintenance expenditures could be reduced to $13 to $15 million per year. City of Denton City Council Minutes July 19, 2010 Page 4 Coulter stated that staff had surveyed other areas of the country that were having funding problems, and what a number of places were starting to do. They were looking at the roadways and the roadway usage and in some cases they could not afford to continue to overlay and put pavement on them, so they were grinding them up and turning them back into gravel. This was starting to be the trend in how other entities were dealing with budget shortfalls. Coulter stated that the bottom line was that there was currently $4.5 million in funding right now, but that needed to be increased up to $18 million per year to get to a level where the overall rate of our roadways did not continue to decline. Coulter stated that once they received the final study of the automated pavement project, staff would review it and bring funding recommendations back to the Council in the fall. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 1:05 p.m. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071. Received a briefing from the City's attorneys regarding legal issues related to parking and speed matters on City streets running through or adjacent to the University of North Texas and Texas Woman's University. Discuss, deliberate and provide attorneys with direction. A public discussion of these matters would clearly conflict with the duty of the City's attorneys to the governmental body under Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Consultation with the City's attorneys regarding legal issues associated with board and commission members and conflicts of interest and the release of confidential information where public discussion associated with these legal matters would clearly conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. With no further business, the meeting was adjourned at 2:10 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JANE RICHARDSON ASSISTANT CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES July 20, 2010 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, July 20, 2010 at 3:34 p.m. in the Council Work Session Room at City Hall. Click here to view Agenda with Backup Materials PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Heggins, Council Member King, and Council Member Watts. ABSENT: None The Council convened in Closed Meeting to consider the following: 1. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071. Consulted with City's attorneys regarding: (1) legal issues associated with the regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority and statutory preemption of municipal regulatory authority; (2) Federal preemption (and limitations on that preemption) of certain municipal regulations relating to the compression and transmission of natural gas, and the location of gas pipelines; (3) analysis of risks and enforceability of such regulations, including impacts and strategies associated with local permit protections; (4) legal limitations associated with the setting of fees; and (5) other legal issues associated with Regular Session Item 4.13. 2. Consultation with the City's attorneys regarding legal issues associated with board and commission members and conflicts of interest and the release of confidential information where public discussion associated with these legal matters would clearly conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074 1. Deliberated and discussed the appointment, evaluation, reassignment, duties, procedures, discipline or removal and/or hear a complaint or charge involving officers of the City Council (Civil Service Commission, Health and Building Standards Commission, Denton Housing Authority, Historic Landmark Commission, Planning and Zoning Commission, Zoning Board of Adjustment). Following the completion of the Closed Session, the Council convened in a Work Session at 5:12 p.m. to consider the following: 1. Requests for clarification of agenda items listed on the agenda for July 20, 2010. City of Denton City Council Minutes July 20, 2010 Page 2 Mayor Burroughs requested clarification on Consent Items V and W, which were utility metering items. He stated there was one reference to the 2009 CIP and asked if those funds were from the original 2005 CIP and had been reallocated for these purchases. Jon Fortune, Assistant City Manager, stated that unlike the GO debt, utility debt was not handled by a bond election. There was an annual CIP adopted for utility system improvements and these projects were defined in the 2009 budget. Council Member Gregory requested clarification for Consent Item P. He asked what type of video equipment was being purchased. Jim Coulter, General Manager of Water/Wastewater, stated that these cameras were used at intersections and monitored approaching cars and signaled light changes when a car was coming at night. They helped trigger a response at the signal itself. Burroughs asked if Consent Item L, the Interlocal Contract with the City of Mesquite, was extended to local suppliers and if they qualified for the 5% local vendor discount - either vendors from Mesquite or Denton. Karen Smith, Senior Buyer, stated that a Denton business would not qualify for a local preference in a Mesquite contract. Only the city that was awarding the contract could consider local preference. 2. Receive a report, hold a discussion and give staff direction regarding nominations to the City's Boards and Commissions. City Manager Campbell stated that an updated list containing nominations had been provided to Council. The Council made additional nominations to the Boards and Commissions which would be considered during the regular meeting. 3. Receive a report, hold a discussion, and give staff direction concerning the development of the FY 2010-11 Proposed Budget and Financial Forecast. Bryan Langley, Director of Finance, stated that at the June 15 meeting there was a $5.4 million budget gap between revenues and expenditures in the General Fund. Prior to June 15, estimated revenues were $87.7 million and estimated expenditures were $93.1 million, with the budget deficit about $8.9 million. Staff had made a number of decisions and estimates in an effort to resolve some of these issues. He stated that on the revenue side they were looking at proposing a 2.5 cent property tax rate increase, which would generate about $1.5 million. He stated that this figure would change based on the certified property values once they received them. Also included was a delay in the increase of the Over 65 Exemption from $30,000 to $35,000 which would add about $150,000 in revenue to the General Fund. He stated that at the last bond issuance, they had changed how they were issuing bonds; instead of issuing utility system revenue bonds they had changed them to Certificates of Obligation backed by the utility system revenues. They were able to transfer savings of $180,000 associated City of Denton City Council Minutes July 20, 2010 Page 3 with the CO bond issuance from utility funds to the General Fund. These revenue adjustments resulted in a $1.82 million increase in revenues. Langley reviewed the savings on the expenditure side. They had discussed the transfer of the Keep Denton Beautiful Program from the General Fund to the Solid Waste Fund. This would result in a savings of $263,956 to the General Fund and a cost to the Solid Waste Fund of $359,000. They had discussed the delay of the Public Safety Training Facility, but did not have a cost on that yet. Discussion also included eliminating the Gas Well Transfer which was a savings of about $500,000. They had looked at all travel and training budgets citywide and generated a savings of $300,919. Efficiency team initiatives had saved approximately $546,000. This resulted in the $5.4 million deficit. Langley reviewed additional reductions/savings discussed since June 15. He stated that miscellaneous expenditure adjustments had resulted in a savings of $1,387. Other potential reductions/savings included the reduction of overtime by approximately one-third in the General Fund (10% in Police) which would generate $431,580 in savings; eliminating the pay increases for the next fiscal year which would result in a savings of $588,475 (Police and Fire STEP increases would still be funded); continued management of staff vacancies which was about $1.6 million in savings; elimination of Council contingency funds for savings of $17,500; use of EDP Marketing Funds for Downtown Incentive Grant for a savings of $47,000; reduction of the General Fund contribution to the Chamber of Commerce for a savings of $25,000; reduction in the transfer to Technology Services for $295,341. Additional reductions in General Fund Departments in the amount of $605,220 resulted in an overall savings of $3.6 million. Council Member Gregory stated that he would like to see a report on furlough days and what type of impact they would have on the budget. Langley stated that additional revenue enhancements/increases that staff had looked at included: miscellaneous revenue adjustments of $263,428; creation of an Airport Enterprise Fund and charge franchise fees, return on investment, and indirect costs of $262,000; potential fee increases (net of additional FTEs related to gas well oversight) for $500,000; possible sales tax revenue increase - actual amount had not been determined; transfer the Urban Forester from the General Fund to the Tree Mitigation Fund for additional revenue of $78,513; capitalize parks labor in the amount of $108,653. Council Member King stated that a delay of the Over 65 Exemption along with a 2.5 cent property tax increase would be a hard hit for some citizens. Council Members Gregory and Heggins stated that they would like to see what could be funded out of the Council's list of things. Langley reviewed other funding needs that were outside the General Fund and the funding recommendations by staff. Staff recommended funding consultant costs for the Bicycle Master Plan for $70,000 and the Downtown Implementation Plan (Traffic Study, Downtown Mobility Plan & Signage) for $800,000 using existing bonds. They recommended funding an update of the Comprehensive Plan & Mobility Plan for $150,000, the constriction of the new Animal Shelter Facility for $1,000,000, and Traffic Signalization & Signage for $855,000 using Non- Airport Gas Well Funds. Staff recommended funding the increase in Street Maintenance City of Denton City Council Minutes July 20, 2010 Page 4 Funding for $500,000 using existing bond fund interest income. They had also recommended funding the Regional Toll Revenue (RTR) matching funds for $9,000,000 with the issuance of new bonds. Langley stated that there had been some discussion about implementing an Anti- Idling Ordinance for approximately $154,235, but staff had not identified a funding source for that. He stated that there had also been some discussions about the New Convention Center & Hotel Facility and a cost had not been determined yet, but they needed to keep it under consideration. City Manager Campbell stated that these were suggested ways to pay for topics that had been under discussion for some time and staff would like some type of direction from Council on these funding sources. Council Member Watts stated that with the exception of the street funding needs, he had a problem funding anything else until the final budget came in especially when employees were going without a raise and property taxes were increasing. Some of these items were needs and some were wants. Langley stated they had projected the Non-Airport Gas Well Fund Balance at the end of FY 2009-10 at $2.7 million. If these projects were funded, there would be roughly around $70,000 remaining. 4. Receive a report, hold a discussion, and give staff direction concerning proposed amendments to: 1. Subchapter 3 of the Denton Development Code (DDC) regarding authority given to the Zoning Board of Adjustment; 2. Subchapter 16 of the DDC regarding gas well development platting; 3. Subchapter 22 of the DDC regarding gas well drilling and production; 4. Subchapter 23 - Definitions - of the DDC; and 5. the schedule of fees contained in Ordinances 2005-237, and 2009-098 (2006 City Fire Code) pertaining to gas well drilling and production within the City limits and the Extra Territorial Jurisdiction (DCA10-0003). Mark Cunningham, Director of Planning and Development, stated that the Planning and Zoning Commission had conducted a public hearing on the proposed amendments and recommended approval, noting four areas of concern for consideration by Council: (1) a desire to remove consideration of variances by the Zoning Board of Adjustment; (2) a desire to limit the minimum separation distance that might be approved by waiver or variance, to no less than 500'; (3) a desire to limit adjustment to noise levels of daytime hours only; and (4) directed staff to re- review the proposal to reduce the duration of (i) gas well plats in the ETJ from 2 years to 1 year from the date of approval; and (ii) gas well permits from 1 year to 6 months in the City limits. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers of City Hall. City of Denton City Council Minutes July 20, 2010 Page 5 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U.S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamations/presentations for this meeting. 3. CONSENT AGENDA Council Member Gregory motioned, Council Member Heggins seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Approved the appointment below. A. Consider and confirm the re-appointment by the City Manager of Darhyl Ramsey to the Civil Service Commission. Resolution No. R2010-021 B. Consider approval of a resolution of the City of Denton, Texas approving a revised city policy regulating Medical Examinations for the City of Denton employees; and declaring an effective date. Resolution No. R2010-022 C. Consider approval of a resolution of the City of Denton, Texas approving a revised city policy regulating Payroll Deductions for the City of Denton employees; and declaring an effective date. Resolution No. R2010-023 D. Consider approval of a resolution of the City of Denton, Texas approving a revised city policy regulating Overtime for the City of Denton employees; and declaring an effective date. Resolution No. R2010-024 E. Consider approval of a resolution of the City of Denton, Texas approving a revised city policy regulating Meal and Break Times for the City of Denton employees; and declaring an effective date. Resolution No. R2010-025 F. Consider approval of a resolution of the City of Denton, Texas approving a revised city policy regulating Solicitation by and to City of Denton employees; and declaring an effective date. City of Denton City Council Minutes July 20, 2010 Page 6 Ordinance No. 2010-165 G. Consider adoption of an ordinance of the City of Denton authorizing and ratifying an agreement between the City of Denton, Texas and the Kiwanis for the purpose of hosting the Fourth of July Fireworks Show; providing for the expenditure of funds; and providing for an effective date. ($1,400) Ordinance No. 2010-166 H. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Friends of the Denton Public Libraries Organization for supplemental funding for the adult literacy program; providing for the expenditure of funds; and providing for an effective date. ($550) Ordinance No. 2010-167 L Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Fred Moore Day Nursery School; providing for the expenditure of funds; and providing for an effective date. ($750) Ordinance No. 2010-168 J. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Retired and Senior Volunteer Program to assist with funding of postage; providing for the expenditure of funds; and providing for an effective date. ($200) Ordinance No. 2010-169 K. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Court Appointed Special Advocates to assist with funding of utilities, phone cost, local travel for child visits and/or office supplies; providing for the expenditure of funds; and providing for an effective date. ($600) Ordinance No. 2010-170 L. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Mesquite, Texas under section 271.102 of the Local Government Code, to authorize participation in various City of Mesquite contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 4509 - Interlocal Agreement with City of Mesquite). Ordinance No. 2010-171 M. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the constriction of the South Peak Flow Pump Station at the Pecan Creek Water Reclamation Plant; providing for the expenditure of funds therefor; and providing an effective date (Bid 4501 - Pecan Creek Water Reclamation Plant Peak Flow Pump Station awarded to the lowest responsible bidder meeting specification, Crescent Constrictors, Inc. in the amount of $803,000). The Public Utilities Board recommends approval (4-0). City of Denton City Council Minutes July 20, 2010 Page 7 Ordinance No. 2010-172 N. Consider adoption of an ordinance rejecting any and all sealed proposals for a radio/telephone recorder system (including installation) for the City of Denton's Public Safety Departments (RFSP 4495); and providing an effective date. Ordinance No. 2010-173 0. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of additional radio communications equipment for the McKenna Park and Denton County Emergency Operations Communication sites which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4516 - Purchase of Communications Equipment for 2 Channel Expansion awarded to Motorola, Inc. in the amount of $169,642). The Public Utilities Board recommends approval (7-0). Ordinance No. 2010-174 P. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of traffic signal controllers and video equipment for the City of Denton Traffic Department, which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4527 - Purchase of Traffic Controllers and Video Equipment awarded to Paradigm Traffic Systems, Inc. in the estimated amount of $350,000). Ordinance No. 2010-175 Q. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of Retaining Wall Materials for constriction of a Screening Wall at Phase 3, Cell A at the City of Denton Landfill which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4532 - Purchase of Retaining Wall Materials for City of Denton Landfill awarded to Stone Strong, LLC in the amount of $87,175.00). The Public Utilities Board recommends approval (5-0). Ordinance No. 2010-176 R. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee, to enter into an Interlocal Agreement with Denton County for the County to provide property tax billing and collection services for the City of Denton; providing a savings clause and providing an effective date. Ordinance No. 2010-177 S. Consider adoption of an ordinance approving an assignment of a leasehold interest in an airport lease agreement at Denton Municipal Airport from Robby Ritchey to Alan Ritchey, Inc. located at 4849 Spartan, Denton, Texas at the Denton Municipal Airport and providing an effective date. The Airport Advisory Board recommends approval (7-0). City of Denton City Council Minutes July 20, 2010 Page 8 Resolution No. R2010-026 T. Consider approval of a resolution of the City Council of the City of Denton, Texas appointing a primary and an alternate member as an official voting representative to the Regional Transportation Council (RTC) of the North Central Texas Council of Governments; and providing an effective date. Ordinance No. 2010-178 U. Consider adoption of an ordinance of the City of Denton, Texas authorizing the approval of a first amendment to professional services agreement between Chaing, Patel, and Yerby, Inc. (CP&Y) and the City of Denton, Texas, expanding the scope of services previously defined in the professional services agreement, which amendment allows CP&Y to provide engineering consulting services related to the landfill expansion to include, 1) hydrologic and hydraulic evaluations, 2) the preliminary sizing and location of a 4.5 million gallon flow equalization basin, and 3) analysis of the floodplain/floodway impacts of extending a landfill retaining wall and berm along the creek side of the flow equalization basin downstream to the headworks of the Wastewater Treatment Plant for an additional amount not-to-exceed $41,050; providing for the expenditure of funds therefor; and providing an effective date ($41,050 further professional engineering services, totaling $104,050 when aggregated with the previous professional services agreement). The Public Utility Board recommends approval (7-0). Ordinance No. 2010-179 V. Consider adoption of an ordinance accepting sealed proposals and awarding agreements for the purchase of services relating to a Utility Meter Data Management Solution related to an automatic meter reading infrastructure system for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date. (RFSP 44448 - request for sealed proposals for Utility Meter Data Management Solution in an amount not to exceed $395,030.). The Public Utilities Board recommends approval (5-0). Ordinance No. 2010-180 W. Consider adoption of an ordinance accepting sealed proposals and awarding an agreement for the purchase of an Advanced Metering Infrastructure System for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date. (RFSP 44485 - Advanced Metering Infrastructure System awarded to Trilliant Networks, Inc. in a five-year amount of not-to-exceed $1,391,307.04). The Public Utilities Board recommends approval (5-0). Approved the minutes listed below. X. Consider approval of the minutes of June 8 and June 15, 2010. 4. PUBLIC HEARINGS A. Continue a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation on tracts 256, 257, 258, City of Denton City Council Minutes July 20, 2010 Page 9 260 and 261 of the E. Puchalski survey, with an overlay district on those same tracts, plus tract 263, containing additional restrictions as noted; the area for the zoning change encompasses approximately 4.678 acres of land located at the northeast corner of North Bonnie Brae Street and West Oak Street, in the City of Denton, Denton County, Texas. The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the seven lots from Neighborhood Residential 3 (NR-4) to Neighborhood Residential Mixed Use (NRMU) subject to overlay conditions, as provided in Exhibit 8 (5-1). Mark Cunningham, Director of Planning and Development, stated that this public hearing was opened at the June 15 meeting and continued until the July 20 meeting in order to allow the applicant to meet with the neighbors and staff to reach some agreements on the restrictions to be placed on the development of the property. Some meetings had taken place and the applicant had offered some amendments to the proposal. The applicant had agreed to withdraw the property identified as 2286 W. Oak from the proposed rezoning. Cunningham stated that the overlay restrictions had been changed since the June 15 meeting. Restriction 42 - Professional Services and Office use should be permitted on the entire property. Retail Sales and Services should be limited to 7,500 square feet and should be a permitted use within 140' of West Oak. Prior to obtaining a building permit for the above uses, a site plan should be approved by the Planning and Zoning Commission. The site plan should address the architecture of the strictures, buffering of adjacent single family property, and Houston Street access. Restriction 43 - Uses not identified as prohibited or permitted should require approval of a Specific Use Permit. Restriction 44- Building Height should be limited to 40' and/or two stories. Restriction 45 - A 6 foot high solid screen fence (good side out) constricted with steel post and a decorative cap should be constricted in the required buffer yard in lieu of the required buffer shrubs. All required buffer trees should be planted in accordance with the requirements of the Denton Development Code. Restriction 46 - Access should be from Bonnie Brae and/or Oak Street. No access should be from Houston Street. Houston Place should not be extended and will not become a thru street to Bonnie Brae. Restriction 47 - Masonry columns approximately 26 feet on center and wrought iron style fencing should be constricted adjacent to the west end of Houston Street Right-of-Way. Restriction 48 - All new buildings should be architecturally compatible with each other including, but not limited to similar designs, materials, colors, and detailing. Cunningham stated that two additional responses to public notification had been received, both in favor of the requested rezoning. This changed the percentage of property in opposition from above 20% to below 20%, no longer necessitating a supermajority vote if the Planning and Zoning Commission recommendation was considered. The Planning and Zoning Commission recommended approval of the rezoning of six of the seven properties to NRMU, with the exception of 2286 W. Oak, with overlay restrictions. The Mayor re-opened the public hearing. The following individuals spoke during the public hearing: City of Denton City Council Minutes July 20, 2010 Page 10 Larry Reichhart, SpringBrook Planning Group, 2405 Mustang Drive, Grapevine, spoke on behalf of the applicant. Rahna Raney, 2316 Houston Place, Denton - opposition Andy Cooper, 2319 Houston Place, Denton - opposition Thomas Collins, 2322 Houston Place, Denton - support David Kaplan, 308 Marietta Street, Denton - opposition Eugene Hargrove, 2025 Houston Place, Denton - opposition JoAnn Nunnelly, 2215 Houston Place, Denton - opposition Willie Hudspeth, 623 Newton, Denton - support Peter Hulstrand, 159 Cardinal Circle, Shady Shores - support Comment Cards were received from the following: Lynda Nolen, 2280 W. Oak Street, Denton - support Mike Nolen, 2280 W. Oak Street, Denton - support Gary Chang, 1600 W Hickory Street, Denton - support Dora Sloan, 2202 Houston Place, Denton - opposition Mrs. Tom Harpool, 2222 Houston Place, Denton - opposition Leona Langford, Houston Place, Denton - opposition Dr. Cecil Atkins, Denton - opposition Andrea Schreiber, 308 Marietta, Denton - opposition Karen Devinney, 1820 W. Oak, Denton - opposition Elizabeth Gunter, 225 Jagoe Street, Denton - opposition Pete Gunter, 225 Jagoe Street, Denton - opposition Caroline Polliard, 1800 W. Oak, Denton - opposition Helen Ikerd, 1722 W. Oak Street, Denton - opposition The Mayor closed the public hearing. Engelbrecht motioned, Gregory seconded to deny. Kamp motioned to continue this item to the second regular meeting in September, Watts seconded. Cunningham requested clarification on what the Council's expectation was when it came back in September. Council stated they wanted to see a consensus on how to keep Houston Place from coming through to Bonnie Brae. They requested clarification on the commercial property on the corner. They also requested history on a small area plan. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "nay", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried 6-1. B. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas concerning proposed amendments to: 1. Subchapter 3 of the Denton Development Code (DDC) regarding authority given to the Zoning Board of Adjustment; City of Denton City Council Minutes July 20, 2010 Page 11 2. Subchapter 16 of the DDC regarding gas well development platting; 3. Subchapter 22 of the DDC regarding gas well drilling and production; 4. Subchapter 23 - Definitions - of the DDC; 5. the schedule of fees contained in Ordinances 2005-237, and 2009-098 (2006 City Fire Code) pertaining to gas well drilling and production within the City limits and the Extra Territorial Jurisdiction; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (DCA10-0003) The Planning and Zoning Commission recommendation is pending the July 14, 2010 meeting. Mark Cunningham, Director of Planning and Development, stated that staff had done an analysis of gas well drilling and production ordinance from seven area cities. The information in the fee comparison demonstrated that Denton's fees were extremely low in contrast with the other cities. Cunningham stated that staff had determined that due to the magnitude and complexity of the topic, it would be best to approach the task in two phases. Phase I would be to bring "quick fixes" to address immediate concerns and Phase 11 would be to do a comprehensive rewrite of Subchapter 22 and all associated gas well ordinances. He stated that the first step of "quick fixes" would be to address gas well fees, noise mitigation, separation distance (setback), ZBA authority, and screening requirement, fracturing and flaring restrictions, permanent tank and equipment height limitation, definitions, gas well plat, gas well site plan, and gas well permits. The current fees were approved on September 6, 2005. The current fees were inadequate to cover the cost to provide these services. Staff was proposing fees that would recover the cost of service to perform inspections and reviews of plans, permits, and inspections relative to the gas well drilling and development within the City and within the City's ETJ. They were also proposing that a portion of those fees be used towards the funding of personnel to oversee the gas well drilling and development within the City and the City's ETJ. A fee comparison of cities within the metroplex showed that Denton's fees were extremely low in comparison with other cities. Current fees resulted in lost revenue for the City. He reviewed the current and proposed fees. Cunningham reviewed the financial impact. It was projected that $2,670,200 in annual revenue would be generated from gas well development plats/site plan reviews, and gas well SUP reviews, in conjunction with the proposed annual inspection and administration fees. The total cost-of-service associated with these activities was estimated to be $2,668,414; resulting in an annual net revenue of $1,786. Cunningham stated that in order to eliminate conflicting language within the Development Code, it was necessary to amend existing terms, and to add several terms and their associated definitions. The definition for Protected Use would include: Any residence, church, public park, public library, hospital, or school. The definition for Residence would include: A home, abode, or place where an individual was actually living at a specific point in time. A stricture or part of a stricture containing dwelling units or rooming units, including single-family or two- family houses, multi-family dwellings, boarding or rooming houses, elderly living facilities, apartments or dormitories. City of Denton City Council Minutes July 20, 2010 Page 12 Cunningham reviewed the separation requirements (setback). Staff recommended increasing the minimum setback requirements to 1,000 feet between gas wells and any protected use (residence, church, public park, public library, hospital, or school), active potable freshwater wells, or a previously platted residential subdivision where one or more lots had one or more strictures, from 500 feet to 1,000 feet. Except where more stringent separation distances were specified, the minimum separation distance from all other uses or features would be 500 feet. Staff recommended that provisions be made available to reduce the above minimum separation distances via the granting of a variance by the Zoning Board of Adjustment, or if all the property owners of the affected uses within the reduced separation area agreed to the reduction via a notarized waiver and the waiver was attached to the permit application. Staff also recommended that the separation requirement should not be reduced to less than 500 feet. Cunningham stated that staff recommended that a gas well permit was valid for 6 months and should automatically expire, unless gas well drilling activities had commenced prior to expiration. If gas drilling activities had commenced under a valid permit, the permit must be renewed annually. If gas drilling activities had not commenced prior to the expiration of the permit, the permit could not be extended, however the operator could reapply for a new drilling permit, subject to all requirements of the DDC, as amended. Staff recommended that all well heads, storage tanks, separation facilities or other mechanical equipment located within 1,000 feet of any protected use, or any lot within a previously platted residential subdivision where one or more lots have one or more strictures, or within 500 feet of all other uses or features, should be screened with an eight foot high opaque decorative masonry wall, if the use, lot or feature preexisted the commencement of gas well drilling activity. Cunningham stated that staff recommended amending the Code regarding fracturing, flaring and tanks to read: Except in the case of an emergency, gas well flaring should only be conducted during day-time hours. Gas well fracturing could only be conducted during day-time hours. An operator was allowed to constrict, use, and operate such storage equipment and separation equipment as shown on the approved Gas Well Development Site Plat or Gas Well Development Site Plan, except that permanent storage equipment and separation equipment could not exceed 8 feet in height. Staff recommended changing noise level standards to: Prior to the issuance of a Gas Well Permit, the operator should establish and submit to the City, a continuous 72 hour pre- drilling Ambient Noise Level measured 300 feet from the boundaries of the gas well drilling or production site. The 72 hour time span should include at least 1 24-hour reading during either a Saturday or Sunday. Noise Management Standards would be amended to: Drilling or production, re-drilled or any equipment operated at any gas well drilling or production site might not exceed 75 dB, measured 300 feet from the boundaries of the gas well drilling or production site. If the pre-drilling ambient noise level that was submitted to the City was higher than 75dB, the noise generated from the gas well drilling or production site might not exceed the established ambient noise level by more than 5dB during daytime hours and 3dB during nighttime hours. Adjustments to the noise standards as set forth above might be permitted intermittently, during daytime hours only, except in the case of an emergency: permitted increases were - IOdB for 5 minutes, 15 dB for 1 minute, and 20dB for less than 1 minute. Cunningham stated that staff recommended if gas well drilling or production had not commenced, a Gas Well Development Plat should expire one year from the date of approval. City of Denton City Council Minutes July 20, 2010 Page 13 The Gas Well Development Plat could not be extended. If the plat expired, then so should any permits associated with the plat. Upon expiration of a Gas Well Development Plat where gas drilling activities had not commenced, the applicant could reapply for a new Gas Well Development Plat, subject to all requirements of the DDC, as amended. If gas well drilling or production had commenced, the gas well drilling and production site should be subject to inspections by the City to ensure compliance with the Gas Well Development Plat. Staff proposed that prior to the commencement of any gas well drilling or production, or the issuance of any gas well permits within the corporate limits of the City, the applicant should submit a Gas Well Development Site Plan for review and approval, in accordance with this Subchapter, and all other applicable local, state and federal standards, as amended. The Site Plan should automatically expire 1 year from the date of approval, unless a Gas Well Drilling Permit had been issued, and gas well drilling or production commenced. A Site Plan where drilling or production had not commenced prior to the first anniversary of the date of approval, could not be extended; however, the applicant could resubmit a new Site Plan for review and approval in accordance with all applicable requirements of the DDC, as amended. If the Site Plan expired, then so too should all permits associated with that Site Plan. If gas well drilling or production had commenced via a valid Gas Well Permit, the gas well drilling and production site should be subject to inspections by the City to ensure compliance with the Site Plan and all applicable standards of the DDC, as well as an Annual Inspection and Administration Fee. He stated that there were also some housekeeping amendments. Cunningham stated that the Planning and Zoning Commission recommended approval of the proposed amendments and fees (5-2) subject to modifications to: 1) Limit variance request for setbacks to a minimum of 500 feet; 2) Allow variance requests to be reviewed and approved by the City Council and not the ZBA; 3) Limit adjustments to noise levels to daytime hours only; and 4) Review the proposal to reduce the duration of gas well plats from 2 years to 1 year, and gas well permits within the City from 1 year to 6 months. Staff recommends approval of all amendments as presented; however, staff does not support the condition related to the variance approval by City Council. Staff felt that fell under the authority of the ZBA. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Steven Soriano, 9532 East Riggs Road, Sun Lakes, AZ - opposition Larry Reichhart, 1608 E. Windsor, Denton - opposition Alan Ross, 10820 Glendale Drive, Denton - opposition Harvey Layman, 10524 Gardner Trail, Denton - support Margarete Neale, 731 Hillcrest, Denton - support Dorothy Fersch, 9609 Lindenwood Trail, Denton - support John Fersch, 9609 Lindenwood Trail, Denton - support Michelle Jones, 301 El Paseo, Denton - opposition Guy McElroy, 10808 Balentine St., Denton - opposition David Kaplan, 308 Marietta, Denton - support Andrea Schreiber, 308 Marietta, Denton - support Eugene Hargrove, 2025 Houston Place, Denton - support Jake Hendricks, 1014 Hillcrest, Denton -support City of Denton City Council Minutes July 20, 2010 Page 14 Ed Soph, 1620 Victoria Drive, Denton - opposition Martin Garza, 1717 Main, 42800, Dallas - opposition Eric DeLaughter, 8216 Primrose, Lantana - opposition Gilbert Horton, Devon Energy, 777 Main Street, Suite 2200, Ft. Worth - opposition Eva Cadwallader, 3920 Fawn Drive, Denton - opposition Becky Escott, 14001 N. Dallas Parkway, Dallas - opposition Katie Lichtsteiner, 14001 N. Dallas Parkway, Dallas - opposition Sharon Cook, 14001 N. Dallas Parkway, Dallas - opposition Brice Walker, 9805 Grandview, Denton - support Kathleen Wazny, 9117 Perimeter Street, Denton - support Sharon Wilson, 1121 N. Locust, Denton - support Cathy McMullen, 805 Ector, Denton - support Robert Miklos, 1717 Main St. 42800, Dallas - opposition Brian Boylan, 6109 Pine Hills Lane, Denton - support Mark Carhill, Encana Oil & Gas and Devon Energy - opposition Jerry Earwood, 302 Mimosa, Denton - support Phillip Sweet, 9713 Grandview Drive, Denton - opposition Elma Walker, 9805 Grandview, Denton - support Jack Faegre, 10016 Hanford Drive, Denton - support Hatice Salih, 300 Northridge, Denton - support Comment Cards were received from the following: Cathy Graham, 9508 Edmondson Drive, Denton - opposition Sidney King Graham, 9508 Edmondson Drive, Denton - opposition Norm Beatty, 9512 Edmondson Drive, Denton - opposition Pam Beatty, 9512 Edmondson Drive, Denton - opposition Richard Burch, 4478 Country Club Road, Denton - opposition Janelle Burch, 4478 Country Club Road, Denton - opposition Carol Ann Soph, 1620 Victoria, Denton - opposition Randy Parker, 1209 C.R. 1304, Bridgeport - opposition Don Cole, 4109 Hampton Road, Denton - opposition Roy Gay, 9921 Crestview Drive, Denton - opposition Angela Gay, 9921 Crestview Drive, Denton - opposition Doris Dwyer Oldre, 9120 Grandview Drive, Denton - opposition John Harris, Dallas - opposition Gary Otwell, 8905 Landmark Lane, Denton - opposition Al Neale, 10309 Countryside Drive, Denton - opposition Amy Griffin, 400 W. Oak, Suite 400, Denton - opposition Nancy Views, Hillcrest, Denton - support Laura Anderson, P.O. Box 1480, Bridgeport - opposition Wendy Wharton, P. O. Box 1480, Bridgeport - opposition Nelda Hackett, P. O. Box 998, Argyle - opposition Creeda Faegre, 10016 Hanford Drive, Denton - support Wes & Wynelle Earp, Houston Place, Denton - support Oscar Gonzalez, Thomas Street, Denton - support Kim Wells, 305 Marietta, Denton - support JoAnn Nunnelly, Denton - support City of Denton City Council Minutes July 20, 2010 Page 15 Dora Sloan, Denton - support Rebecca Harpool - support Leona Langford - support Adam Neale, 731 Hillcrest, Denton - support Ellen Ryfle, Denton - support Pam DeLaMore, Houston Place, Denton - support Rayna Raney, 2316 Houston Place, Denton - support Brice Fiedler, 10012 Edmondson Drive, Denton - support Margaret Fiedler, 100 12 Edmondson Drive, Denton - support Ray Rupert, 9212 Perimeter Street, Denton - support Mary Rupert, 9212 Perimeter Street, Denton - support Kathryn Sapp, 9409 Perimeter Street, Denton - support Sara Bagheri, 121 W. Hickory Street, Denton - support The Mayor closed the public hearing. Council Member Gregory motioned, Council Member Engelbrecht seconded to adopt the ordinance with the overlay restrictions recommended by staff. Mayor Burroughs made a friendly amendment asking that the minimum separation distance be 250 feet. Mayor Burroughs asked if Council Members Gregory and Engelbrecht were agreeable to the friendly amendment. Both stated they were. Council Member Watts expressed concern that oil and gas well operators/representatives were not included in the discussions. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding the following matters, as they relate to the Fry Street Overlay District, Section 35.7.5 of the Denton Development Code (DDC): 1. To update DDC references in the text of the overlay district (DCA10- 0004); and 2. To create a subarea of approximately 4.275 acres for a proposed mixed use development located on the block bound by Oak, Hickory, Fry, and Welch Streets, with an associated set of regulations specific to the proposed mixed use development (Z 10-0009). Mayor Pro Temp Kamp stated that she had asked for a legal opinion because as a director for Access First Capital Bank, there was a possibility that there would be some ATM machines for the bank in the development. She stated that the legal department had determined that she had no conflict of interest. City of Denton City Council Minutes July 20, 2010 Page 16 Chuck Russell, Planning Manager, stated that this request to amend the Fry Street Overlay District (12.42 acres) was to: 1) create a subarea of approximately 4.275 acres with associated standards for a proposed mixed use development; and 2) update Code references in the text of the Overlay District. Russell stated that the applicant had requested modification of the Fry Street Overlay District in order to accommodate the proposed development. The requested modifications would allow the subject property to remain a contributing portion of the Overlay District, maintain the continuity of the District and afford opportunities for revitalization of the area. Staff felt that the best option was to allow the proposed project to proceed with some deviations from the existing Overlay District regulations and allow the applicant flexibility to create a high quality project while still offering the neighboring properties the protection afforded by the Overlay District. The Fry Street Overlay District allowed for a maximum building height of three stories, with no overall building height to exceed 45 feet. The amendment proposed by the applicant was that no habitable strictures could exceed four stories with a maximum height of 55 feet, and that no parking strictures could exceed 60 feet in height. The proposed development included 194 residential units, comprised of (20) 1-bedroom units, (43) 2-bedroom units, (10) 3-bedroom units, and (121) 4-bedroom units. Based on the proposed composition of units, almost twice as much property (8.3 acres) would be required to accommodate the number and composition of units proposed. The proposed 194 units contained a total of 620 bedrooms on 4.274 acres. Density within the zoning district was calculated based on number of bedrooms, and as such, the proposed density was 72.5 units per acre. Since the zoning district allowed a maximum of 150 units per acre, the proposed density was significantly less than that allowed in the base zoning district. The project was also incorporating LEED design measures and lessening sprawl, therefore staff was in support of a density-based restriction for the subarea rather than the open space density calculations required currently. The applicant had requested reduced parking based on other similar projects and the proposed development would incorporate bike-share programs and include lockers within the parking stricture for bike storage for residents. Staff found the request for the reduced on-site parking acceptable. The Fry Street Overlay District prohibited ground and monument signs; however, the applicant proposed to locate two monument signs at the main entrances to the development. Staff found that the proposed monument signs were of a size appropriate for the area that would contribute to the pedestrian-scaled and pedestrian-oriented design of the project. The applicant proposed changes that would allow signs to be mounted perpendicular to the walls of buildings and they would not encroach into the public right-of-way. Due to the unpermitted clearing of trees by the prior owner and tree mitigation funds that were owed, along with the proposed site plan, the applicant was not able to meet the minimum preservation requirements on the site. Staff was recommending that the canopy be replaced through the planting of trees in public spaces within one mile of the subject property. The applicant would pay $63,812.50 which would be placed in a mitigation fund specific to this proj ect. City of Denton City Council Minutes July 20, 2010 Page 17 The Fry Street Overlay District did not incorporate architectural standards or requirements specific to the area. The residential units on Welch Street would require a sloped roof pitch. Each principal building facade or massing would incorporate at least two of the features identified on the image board provided in the backup. In addition, the parking garage would contain a facade that integrated the parking structure with the rest of the development. Russell stated that the Code corrections included removal of references to the 1969 Code, and change to the Denton Development Code; removal of reference to the Code of Ordinances related to Solid Waste, and include reference to the DDC, where regulations were now incorporated; removal of reference to the Code of Ordinances related to Sign Regulations, and include reference to the DDC, where regulations were now incorporated. The Planning and Zoning Commission recommended approval (6-1) of the requested amendments. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Josh Basfinder, 1011 Camino del Mar 4268, Del Mar, spoke on behalf of the applicant Michael Crank 1601 Stagecoach, Pantego - support Rob Rayner, 1200 Woodrow 4100, Denton - opposition Mary Anderson, 924 W. Oak, Denton - opposition Alex Payne, 923 Ridgecrest Circle, Denton - support Charles Stafford, 1903 Williamsburg, Denton - support Lee Capps, 915 W. Oak Street, Denton - opposition John Ryan, 2128 Emerson Lane, Denton - opposition Bob Clifton, 624 Newton, Denton - opposition Gene Hartman, 116 Fry Street, Denton - support Comment Cards were received from the following: Michelle Jones, 301 El Paseo, Denton - support Brock McKnight, 211 E. Oak Street, Apt. 9, Denton - support The Mayor closed the public hearing. Mayor Pro Tem Kamp motioned, Council Member Heggins seconded to approve the ordinance with the amendments as presented by staff. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. In accordance with HUD 24 CFR Section 570.611 (d) (1)(i); receive a statement of disclosure of Community Development Coordinator Luisa Rodriguez-Garcia's conflict City of Denton City Council Minutes July 20, 2010 Page 18 of interest in the Community Development Block Grant Program through her spouse's position as Executive Director of the Denton City County Day School, a non-profit organization that receives CDBG funding. Barbara Ross, Community Development Administrator, read the following public disclosure statement: "The U.S. Department of Housing and Urban Development (HUD) has notified the City of Denton, Community Development Division that the City will receive a 2010-2011 allocation of Community Development Block Grant (CDBG) funds, a portion of which has been recommended to be allocated to the Denton City County Day School (DCCDS) for facility improvements. DCCDS provides day care services on a sliding scale fee for low and moderate- income families. The current executive director, Eduardo Garcia, is the spouse of a Community Development Division staff member, Luisa Rodriguez-Garcia. HUD has determined this to be a conflict of interest. The City of Denton is in the process of asking HUD for an exception to the conflict. One of the threshold requirements for an exception is that the conflict be publicly disclosed in accordance with 24 CFR Section 570.611 (d)(1)(i). In order to meet this public disclosure requirement, as Community Development Administrator, I, Barbara Ross, am hereby making this public disclosure as a part of the City's request for an exception from these conflict of interest provisions. I request that the City Secretary record this statement in the minutes of this meeting." Ross stated that the Legal Department had reviewed this and determined that the interest was not in violation of any State or local law and had prepared a legal opinion which was an additional threshold requirement. Ross stated that they would be submitting a request to HUD next week to request an exception on this conflict of interest. She stated that no action was required by the Council. B. Consider appointments to the following boards and commissions: 1. Airport Advisory Board 2. Animal Shelter Advisory Committee 3. Community Development Advisory Committee 4. Health & Building Standards Commission 5. Historic Landmark Commission 6. Human Services Advisory Committee 7. Library Board 8. Parks, Recreation and Beautification Board 9. Planning and Zoning Commission 10. Public Art Committee 11. Public Utilities Board 12. Traffic Safety Commission 13. Zoning Board of Adjustment Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to approve the nominations as discussed during the Work Session. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. City of Denton City Council Minutes July 20, 2010 Page 19 C. Consider nominations/appointments to the Economic Development Partnership Board. Mayor Pro Tem Kamp stated that the nominating committee recommended the following re-appointments: City Council representative - Mark Burroughs; Chamber of Commerce representative - Marty Rivers; UNT representative - interim president Lane Rawlins. Mayor Pro Tem Kamp motioned, Council Member King seconded to approve the nominations. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a). Bob Clifton regarding our City Charter Initiative, Referendum and Recall. Bob Clifton, 624 Newton, spoke regarding the petition for Fry Street. b). Kathryn Newton regarding cyclist and pedestrian safety and rights. Kathryn Newton, 2124 Savannah Trail, spoke regarding her husband being hit by a car while riding his bicycle. She requested that the City look at installing a four-way stop sign and a crosswalk at Hollyhill and Woodbrook and also look into installing a bike lane on Pennsylvania. c). Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth was not present. d). Lanisha Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present. e). Jordan Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present. f). Hagar Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present. E. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions City of Denton City Council Minutes July 20, 2010 Page 20 of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Mayor Burroughs requested that staff look into the appropriateness of additional stop signs and/or crosswalks on Hollyhill at Woodbrook. Council Member Gregory asked for an update on the bike lane on Pennsylvania and if staff had received other similar requests. F. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. G. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 2:41 a.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JANE RICHARDSON ASSISTANT CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 2, 2010 After determining that a quorum was present, the City Council convened in a Closed Session on Monday, August 2, 2010 at 11:30 a.m. in the Council Work Session Room, 215 E. McKinney Street, Denton, Texas. PRESENT: Council Member Watts, Council Member Heggins, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, and Mayor Burroughs. ABSENT: None 1. Closed Meeting: A. Consultation with Attorneys -Under Texas Government Code Section 551.071. 1. Consult with City's attorneys regarding: (1) legal issues associated with the regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority and statutory preemption of municipal regulatory authority; (2) Federal preemption (and limitations on that preemption) of certain municipal regulations relating to the compression and transmission of natural gas, and the location of gas pipelines; (3) analysis of risks and enforceability of such regulations, including impacts and strategies associated with local permit protections; (4) legal limitations associated with the setting of fees for administration, inspection, enforcement, and other governmental or proprietary services related to gas well drilling and production, both within the City and its extraterritorial jurisdiction and; (5) legal issues relating to item No. 1 on the Work Session and item No. 1 on the Open Session. B. Deliberations regarding Certain Public Power Utilities: Competitive Matters -Under Texas Government Code Section 551.086. 1. Receive a report and presentation from Denton Municipal Electric staff regarding future strategic competitive and financial planning issues regarding the operations of Denton Municipal Electric and its involvement in the City's capital improvements plan; discuss, deliberate and provide staff with direction regarding such matters. 2. Receive a report and presentation from Denton Municipal Electric staff regarding future additional compliance and regulatory issues with the THE (Texas Regional Entity) and NERC (North American Electric Reliability Corporation) to begin in 2011, and the methods and practices necessary for meeting those requirements, together with strategic competitive and financial planning issues regarding the operations of Denton Municipal Electric; discuss, deliberate and provide staff with direction regarding such matters. City of Denton City Council Minutes August 2, 2010 Page 2 Mayor Pro Tem Kamp motioned, Council Member Watts seconded that Items B 1 and B2 were appropriate for discussion under the Public Power Exception of the Open Meeting Act. On roll call vote, Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. Following the completion of the Closed Meeting, the Council convened in a Work Session at which the following items were considered: 1. Receive a report, hold a discussion and give staff direction regarding Ordinance 2010-181 and any other matter relating to gas well drilling and production in the ETJ and within the City limits of the City of Denton. City Attorney Burgess indicated that this item would be for discussion and direction with regard to the ordinance passed at the last council meeting. There was an accompanying action item later in the agenda with regard to fees assessed with the last ordinance. Staff listened to comments made in open session at the last meeting and in light of those comments, wanted to discuss with Council if there was anything in that ordinance it would like to consider. Staff was moving forward into Phase II but that did not curtail looking at items from the current ordinance. Mayor Burroughs stated when trying to get something done in a prompt time frame, he knew there might be occasions when an adjustment would have to be done. As Council deals with some of these issues, they were trying to address them as globally as possible. As the issues came forward and they identified issues, there might be a need to adjust what had been previously done. Council Member Gregory stated that Council had discussed as the process went to Phase 11 that they would continue to seek input as they had done for Phase I from representatives who understood the technicalities involved in the industry. He understood that citizens in the neighborhoods were also stakeholders and Council needed to hear from them also. He wanted Phase II to be a higher quality than Phase I. Mayor Burroughs asked staff to work in the general direction to have outreach to both industry and local citizens for input on the issues for Phase I and Phase 11. Council Member Watts stated that some common thoughts he heard at the last council meetings were regarding the language on grandfathering and how it could be tightened regarding multi- well sites. He questioned how the new ordinance would apply to that and if it might help stop the proliferation of wells over a large parcel of land. He felt that issue needed to be addressed before starting Phase II as it would help both the industry and neighborhoods. Council Member Gregory asked why staff recommended the adjustment to the fees and to temporarily set aside inspection fees for wells in the ETJ. City Attorney Burgess stated that quite a few comments had been received from the industry regarding the assessment of these fees. Their recommendation to council was to have the interim ordinance not assess fees at this time which would allow additional time to ensure that the fee City of Denton City Council Minutes August 2, 2010 Page 3 assessment was consistent with the powers the city had with the ETJ. This was a cutting edge area and it was in the best interest of the city to be careful on how it proceeded. The City needed to be fair and equitable in this matter. Council Member Gregory stated that the City still had regulatory jurisdiction over some actions and behaviors of gas well drilling in the ETJ. City Attorney Burgess stated that was correct and was the law. It was the extent of the authority they needed to look at and assess the fees accordingly. Council Member Gregory stated that the City wanted to be sure it was not overcharging the industry for a service but wanted to be certain the fee covered the cost. Mayor Burroughs requested staff return this item to council as soon as possible after the evaluation of the ETJ cost of service 2. Receive a report, hold a discussion and give staff direction regarding approval of Clear Creek Natural Heritage Center Long Range Plan. Catherine Barnett-White, Utility Project Coordinator, presented an update on the Center. The current lecture series included "Bat World" with over 300 participants. The Master Naturalists were still very involved with continuing projects and volunteer opportunities. She reviewed the information regarding the hunting area at the Center and the long range plan for the Center. Council Member Heggins asked how the hunting program at the Center was advertised. White stated that it wasn't formally advertized; that the hunters knew of it through word of mouth. Council Member King left the meeting. Council Member Gregory stated that signs were also posted in the area informing people that a permit was needed to hunt in the area and how to get the permit. He asked about the long range plan in terms of funding for the Center that was in the last CIP. He questioned how much funding was there and what was it for. White stated that there was approximately $600,000 approved in the CIP. $100,000 had been used for the Center building and the rest was held to be used as matching funds for Texas Parks and Wildlife applications. Council Member Gregory asked for a rough estimate on how the money might be spent. White stated that if they partnered with Texas Parks and Wildlife, they would be limited on what the money could be used for. They were currently revisiting that philosophy. There might be other opportunities to move money around for use in different projects. She felt that by 2015 the first phase of the advanced center should be open. City of Denton City Council Minutes August 2, 2010 Page 4 Mayor Pro Tem Kamp stated that the Committee on the Environment had talked about projects to do jointly with the DISD at the facility and felt that it might be a good topic of discussion at a future joint meeting with the DISD. Following the completion of the Work Session, the City Council convened in Open Session to consider the following: Ordinance No. 2010-183 1. Consider adoption of an ordinance setting Planning and Development fees relating to gas well drilling and production in the City of Denton and its ETJ; repealing Section 4 of Ordinance 2010-181; and setting an effective date. City Attorney Burgess stated that this item was discussed in the Work Session. The proposed ordinance would not assess fees during the course of the interim ordinance and would have an effective date the same as the effective date of the other ordinance. Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to adopt the ordinance as written. On roll call vote, Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. With no further business, the meeting was adjourned at 2:35 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 3, 2010 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 3, 2010 at 3:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Watts, Council Member Heggins, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, and Mayor Burroughs. ABSENT: Council Member King Mayor Burroughs indicated that Item 43 would be considered first. 3. Receive a report, hold a discussion and give staff direction regarding the Denton County Transportation Authority's A-train service levels. Guy McElroy, DCTA Representative, stated that they would be making a presentation on the status of DCTA as it related to Denton transportation. Dee Leggett would be providing the DCTA update presentation. Dee Leggett, Vice President-Planning and Communication for DCTA, stated that her presentation would touch on A-train service levels, capital needs and priorities, sustainable long- term financial plan and implementation of the long-term financial plan. Bus ridership continued to grow in Denton. DCTA had received several grants including an award for Denton corridor enhancements. Two FTA State of Good Repair grants had been submitted for bus operation and maintenance and fleet replacement. Three TIGER grant submissions were planned. A-train Service levels - Leggett presented the July proposal which had service Monday through Friday 5:30 a.m. - 9:30 p.m. and 3:30 p.m. - 8:30 p.m. Special event service would be as the budget allowed with cities helping to prioritize special event service. A test market would be done for night and weekend service. Mid-day commuter bus service would be available. Expanded evening and weekday service would be revisited in 2012 with arrival of the Stadler cars. Council Member King joined the meeting. A-train Operating Characteristics - the A-train used a single track with passing sidings. Freight service would run during late night hours for 4-6 hours with maintenance done on the tracks on Sunday. Service Level Costs - in addition to vehicle operating costs (car miles and train hours), the price included management, ROW and station maintenance, security, insurance, capital spares, fuel and utilities. Options for service with operation and maintenance costs and financial impact were presented. Saturday hours, if provided, would be 11:00 a.m. - 11:00 p.m. Options for service levels with costs included Option 41 with no changes to peak service with the addition of Saturday service; Option 42 with reduced peak service ending at 8:30 p.m. with Saturday service; Option 43 with reduced peak service, late Friday service until 10:30 and Saturday service; and Option 44 with reduced peak service, and Saturday regional bus service with no Saturday train service. Unfunded capital and operating priorities included positive train control; bus operation and maintenance facility; DCTA fleet; UNT fleet; Lewisville/Highland Village trail; and extension to Beltline. Operating priorities included additional peak A-train service, increased fixed route frequency, and additional A-train off-peak service. City of Denton City Council Minutes August 3, 2010 Page 2 Impacts to Financial Sustainability - Leggett reviewed impacts since May 2009 to June 2010 which affected financial sustainability plus information concerning the implementation of the financials. Next steps - The comment period on the proposed service would end August 23rd which would be followed with a discussion of service options/priorities with program development. Public comments would be delivered to the Board in September with discussion/decision in October. The testing of the schedule would begin in early 2011. Mayor Burroughs stated that of the $750,000 grant, a portion went into an enhancement mitigation fund for impacted citizens. He questioned if those citizens could help guide what was mitigated. Leggett replied yes that community input was part of the process. There were, however, only certain activities that could be used with the money. Mayor Burroughs suggested an Option 45 which would have full peak hours, late night Friday and Saturday hours. A way to finance Option 45 would be to have the service as a pilot to be funded the first year with a three week delay in the opening of the operations. A delay for three weeks would save the operational costs less fixed costs of about $525,000. This option would buy a year's pilot of late night and Saturday service to see if numbers justified the outcome. It would be a test to see if the service would generate the fare and economic development dollars. Leggett replied that there was a caution with that option to make sure the pilot would be sustainable over the long term. DCTA would not want that option to be successful and then not be able to fund it over the long term. Mayor Burroughs suggested letting the impacted individuals make that decision. Council Member Gregory asked if there was a possibility of going to US senators or representatives to look for discretionary funding to help cover the cost or other available grants. Leggett stated that they been approached about any discretionary funding and had submitted a grant application for positive train control funding. The problem was this was a $10 billion national issue with not only transit organizations but others also included. Positive train control was a safety measure that had to be installed by 2015 for all Class 1 freight and passenger rail systems. This was a communication system that would take over the train system in case of a potential collision. Council Member Gregory asked about the difference in the actual cost for the DART right-of- way from what was anticipated. Jim Witt, DCTA, stated the final cost was about $21 million with an initial estimate of $9 million. Council Member Gregory asked when the Denton hike/bike trail would connect to the Highland Village trail. City of Denton City Council Minutes August 3, 2010 Page 3 Leggett indicated that she was not sure as it was tied into the expansion of I-35. Council Member Watts asked if the operation and maintenance costs shown were just costs for Denton. Leggett stated that they were for the entire corridor. Council Member Watts questioned when DCTA was made aware of the positive train control requirement. Leggett replied it was the summer of 2009 but it wasn't until January 2010 that they got to see what it would look like. Watts stated that with Option 41 there would be no train service from 9:30 p.m. until 6:30 a.m. in the morning. Leggett replied correct. Council Member Gregory asked for an explanation of mid-day service. Leggett stated that it would mimic the A-train service at all five stations and make the same trip in reverse. Witt stated that $10 million was needed for bus replacements. Approximately 10% of the fleet was down on a daily basis. It was a critical issue to get bus replacement funds. 4. Receive a report, hold a discussion, and give staff direction concerning the proposed Downtown Implementation Plan. This item will also include discussion on the proposed Form Based Code, proposed Wayfinding System, proposed amendment to the Mobility Plan, and proposed future engineering studies. (SI10-0001, DTIP) Mark Cunningham, Director of Planning and Development, reviewed the area encompassing the DTIP. He indicated that public involvement included 9 Downtown Task Force meetings; 60 stakeholder interviews; 2 public meetings; online resources such as surveys, agendas, and drafts; Developer's Committee meetings; a Planning and Zoning Commission work session and public hearing. Elements of the Plan included a parking strategy; parks, recreation and open space; complete streets; architecture standards; implementation strategies; and supporting components such as a solid waste plan and Quakertown Park. Recommendations for funding mechanisms included a Tax Increment Finance District, a Public Improvement District and grants. Rick Leisner, consultant with Jacobs, reviewed the components of the plan which included current events in Denton and downtown; goals and public participation; elements and recommendations; and implementation. A significant amount of growth was expected for the North Texas area. He noted that DCTA would play a significant role and must be planned for in the future. Denton public transportation was important as was transit-oriented development. The type of development that sustained value was reviewed. The city needed to focus on development City of Denton City Council Minutes August 3, 2010 Page 4 standards to sustain suburban development. Project goals for the Downtown core included (1) the Downtown should be a vital part of Denton's economy, (2) Downtown should be a source of civic pride, (3) Downtown should have residents, offices, shops, and entertainment, (4) developments and infrastructure should reinforce the sense of Downtown as having a single neighborhood; (5) Downtown should contain a variety of things to do, (6) Downtown should be pedestrian friendly and an enjoyable place to walk, (7) Downtown should have linked parks and open spaces, and (8) new developments should increase the overall quality of Downtown. Public participation included stakeholder interviews, Downtown Task Force meetings, two public meetings, DTIP webpage, Planning Department outreach and DRC newspaper articles. Recommendations for the parking strategy were reviewed and included increased on-street parking, establishment of a shared parking program, enlarged public parking lots, creation of a wayfinding signage network for parking, establishment of a cash-in-lieu parking program and early action parking projects. Supporting items for parking would include a wayfinding signage program, special events parking, and an education program. The Park, Recreation and Open Space strategy was discussed with priority recommendations of increased on-street parking and the creation of music and fine art spaces. A Quakertown Park concept plan was developed and had been revised in response to the vision for Downtown. Zones to be developed in the park areas included urban open space, neighborhood components and regional areas. A suggestion had been received regarding closing the Civic Center pool and finding a suitable location for a new pool with the purpose of building an amphitheater in the area. Complete Streets Strategy components included safe efficient streets for vehicular movement; safe, pleasant and wide pedestrian walkways for citizens, shoppers and tourists; safe routes for bicycles on the street; and abundant parking along streets. Priority recommendations included adopting DTIP street standards for Downtown; modifying the city Mobility Plan to include Downtown street standards; implementing Hickory Street "Grand Street" project; implementing "Mews Street" program for parking, safety and waste removal; and implementing early action street and mobility items. Bicycle Mobility Strategy centered on a seamless connectivity concept. There should be a dedicated bike lane/complete street concept where Sycamore Street would become a "complete street" with bike lanes and sidewalks. Shared travel lane would create a marked shared lane environment through the core along Elm and Locust and city-owned park land should be considered for future trail links to the TWU campus. Architectural Design Guidelines would look at the top, middle and base components. Defining quality, place and architectural design elements would be involved. A LEED rating goal would be established for all new development in the Downtown area. Solid Waste Strategy was recommended for two phases. Phase One would screen 100% of the containers in the Square District. Containers would be grouped together with a new pickup schedule. A pilot program would evaluate locations and service. Phase Two would establish a broad downtown recycling program and create a downtown recycling center. Part of the Solid Waste Strategy was the sharing of dumpsters. City of Denton City Council Minutes August 3, 2010 Page 5 Form Based Code for Land Use would help establish future land use in the document. The Implementation Strategy would be a coordinated schedule to detail implementation projects and programs targeted to a specific area, defining comprehensive linkage with other elements. Council Member Heggins stated that if the proposal for changing the Civic Center pool was approved, a new pool should be located adjacent to public transportation. Dennis Wilson, Jacobs consultant, stated that any replacement needed to be defined by the patrons of the current pool. Mayor Burroughs asked about long term parking for DCTA in the Hickory corridor. Wilson stated that they hoped to have those issues solved by creating all the parking in the Downtown. There would be a need to establish needs and rules for parking. Mayor Pro Tem Kamp asked about shared costs for private users of solid waste services. Leisner stated that everyone on the Square would share dumpsters. They would work with the city departments to develop a new pickup schedule. Mayor Pro Tem Kamp stated that the issue of shared dumpsters had been brought up before with not good results. Leisner stated that this proposal offered the opportunity to share costs and businesses were excited about increase parking on the streets. Council Member King stated that with no parking garage suggested, how much parking would be on the streets. Leisner stated that there would be a significant increase in parking in the Downtown area. Mayor Burroughs suggested some sort of parking passes for free parking during a certain amount of time. Council Member Gregory questioned the solid waste strategy as indicated in the backup materials. Ron Menguita, Planning, stated that information was additional information to the draft Council had received earlier. The strategy for solid waste removal was based on property owners designing their site to accommodate a waste facility that was constricted to Code and 100% screened. A shared facility would be sited on private property or designed within City right-of- way and would be constricted to Code and 100% screened. Council Member Gregory asked about Quakertown Park. Menguita stated that the Planning and Zoning Commission had removed all language related to Quakertown Park because of a recommendation for removal of the pool. The Commission City of Denton City Council Minutes August 3, 2010 Page 6 wanted more information on the possible relocation of the pool before Quakertown Park was included in the document. Mayor Pro Tem Kamp questioned how to get LEED certification for a neighborhood. Leisner stated that a plan would be submitted to a LEED council for an award focusing on LEED and sustainability. The city would set constriction standards for new development in the Downtown area. Council Member Watts questioned if there was a goal for the number of residential units in Downtown. Leisner stated that there was no specific amount of residential units designated but there should be enough to accommodate a range of uses in the Downtown area. Wilson stated that the number of units should be sure to support the businesses and use of the parks but have flexibility for a variety of uses. It was thought to let the market take advantage of that type of development and do the appropriate number of developments. Council Member Watts questioned if the schedule adjustments suggested by DCTA would require an adjustment to the DTIP for a potential decrease in services of the plan. Leisner stated that it would not change the plan. Council Member Watts stated that there was a need to increase parking but if the area was to be pedestrian friendly, an urban area was not associated with increased parking. He questioned how that would work. Leisner stated that he had heard over and over with discussions with residents that it was not easy to find parking in the Downtown and that it was a challenge to find places to park. There was a need for a series of wayfinding signs to where larger parking lots were located. Those lots would need to be well lit and well connected to the Square and the transit station. Council Member Gregory suggested modifying the Quakertown section to include a statement about the swimming pool not being moved until all options had been explored. Council Member Watts suggested that delivery tricks blocking streets be addressed in the plan. Council Member Engelbrecht left the meeting. Cunningham stated that the next steps included finalizing a Form Based Code, preparing a Downtown Wayfinding System, amending the Mobility Plan and performing engineering studies to support the DTIP. Early action items would involve marking for angle parking on Hickory, between Locust and Bell and marking for angle parking on Industrial between Hickory and Mulberry. Public parking would also be looked at in terms of development, signage, lighting and landscaping. 1. Requests for clarification of agenda items listed on the agenda for August 3, 2010. City of Denton City Council Minutes August 3, 2010 Page 7 There were no requests for clarification of agenda items 2. Receive a report, hold a discussion and give staff direction regarding the creation of a Tax Increment Refinancing Zone District for Downtown. Linda Ratliff, Director of Economic Development, stated that the first step in creating a TIF was a notice to other taxing entities that the City would like to create a TIF. This notice did not bind Council to that but it must start the time frame. The original boundary of the Downtown TIP was determined to be too large and the proposed boundaries more follow the DTIP. Council Member Watts asked if the same process with analysis was done for this proposal as was done before. Ratliff replied correct. Council Member Watts asked if the City was talking to the County earlier in the process that what was done before. Ratliff stated that they had received a mixed message from them. Another city had applied for a TIF but was told at that time that the County would do no more TIFs. The County contribution would be approximately $11 million. Following the completion of the Work Session, the Council convened into a Closed Session to discuss the following: 1. Closed Meeting: Council considered the following in Closed Meeting: A. Consultation with Attorneys -Under Texas Government Code, Section 551.071. 1. Consultation, discussion, deliberation, and receipt of information from the City's attorneys regarding potential litigation with Denton County Electric Cooperative, Inc. d/b/a CoServ Electric and CoServ Gas, Ltd. relating to disputes concerning franchise issues, where public discussion of these legal matters would clearly conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. The Council convened in a Regular Meeting at 6:30 p.m. in the Council Chambers. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. City of Denton City Council Minutes August 3, 2010 Page 8 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamations/presentations for this meeting. 3. CONSENT AGENDA Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Ordinance No. 2010-184 A. Consider adoption of an ordinance of the City of Denton approving an easement to Dallas MTA, L.P. d/b/a Verizon Wireless across City of Denton property, being a tract of land situated in the Mary Austin Survey, Abstract No. 4, in the City of Denton, Denton County, Texas, and being a portion of the remainder of Lot 1, Block 2 of The Municipal Utility Addition, an addition to the City of Denton, Texas, as recorded in Cabinet G, Page 346, Plat Records of the Real Property Records of Denton County, Texas; and declaring an effective date. The Public Utility Board recommends approval (4-0). Ordinance No. 2010-185 B. Consider adoption of an ordinance abandoning and vacating a public utility easement from Fry Street Partners, Ltd. to the City of Denton recorded by Volume 451, Page 71 of the Deed Records of Denton County Texas, in the E. Pulchalski Survey, Abstract No. 996; and declaring an effective date. The Public Utilities Board recommends approval (5-0). Resolution No. R2010-027 C. Consider approval of a resolution of the City Council of the City of Denton, Texas, authorizing issuance of a Notice of Intent that the City of Denton intends to establish a Tax Increment Financing Reinvestment Zone, pursuant to the Tax Increment Financing Act, Texas Tax Code Ann., Chapter 311, for the City of Denton, Texas; providing an effective date. The Economic Development Partnership Board will consider this item at its August 3 meeting. Approved the Noise Exception Request listed below. D. Consider a request for an exception to the Noise Ordinance for the purpose of performing live music during three House Concerts hosted by Cassandra Fuhrmann. The House Concerts will be located at 616 Woodland Street, beginning at 5:00 p.m. and concluding at 8:00 p.m., on the following Sundays: August 22, September 26 and October 24, 2010. This request is for an increase in decibels from 65 to 69 and for amplified sound on Sundays. Staff recommends approving the noise exception request. Ordinance No. 2010-186 City of Denton City Council Minutes August 3, 2010 Page 9 E. Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for concrete crushing services for the City of Denton Landfill; providing for the expenditure of funds therefor; and providing an effective date (Bid 4519-Annual Contract for Concrete Crushing Services awarded to the lowest responsible bidder meeting specification, Big City Crushed Concrete, in the annual estimated amount of $210,000). The Public Utilities Board recommends approval (6-0). Ordinance No. 2010-187 F. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a first amendment to a Professional and Personal Services Agreement with KEMA, Inc., a corporation for examining for the THE and NERC regulatory compliance of the Denton Municipal Electric System; authorizing the expenditure of funds therefor in the further amount not-to-exceed an additional $86,360; and providing an effective date (File 4412-aggregating not-to-exceed $255,940). Ordinance No. 2010-188 G. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of Cem-Line from TXI, which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4538-Purchase of Cem-Line for Street Department in the unit price amount of $135/dry ton for an annual estimated amount of $300,000). Ordinance No. 2010-189 H. Consider adoption of an ordinance of the City of Denton, Texas, granting, pursuant to Section 17-20 of the Code of Ordinances of the City of Denton, Texas, an exception to the limitations imposed by that Section with respect to sound levels and hours of operations for an outdoor music festival; and providing an effective date. The North Texas State Fair Association is requesting a three-year exception (years 2010-2012) for the North Texas State Fair and Rodeo, which begins on the third Friday of August and ends on the fourth Sunday of August. The exception requested is for Monday through Thursday until 12:00 midnight, Friday and Saturday until 1:00 a.m., and until 11:00 p.m. on Sunday. Staff recommends approving the three-year noise exception request. Resolution No. R2010-028 L Consider approval of a resolution by the City Council of the City of Denton, Texas, recognizing the mission of the Clear Creek Natural Heritage Center to inspire environmental partnership and stewardship, as well as to provide an understanding of the natural heritage of North Central Texas; recognizing that the Center will be developed using sustainable building practices and will serve as a learning center for environmental citizenship and sustainability; endorsing the "Clear Creek Long-Range Plan" prepared by staff, implementing the said Long-Range Plan for the period beginning FY 2010-2011 and Ending FY 2014-2015 inclusive; expressing the City's intention to participate and contribute to said Long-Range Plan; finding that the Clear Creek Facilities and the "Clear Creek Long-Range Plan" benefit the public and safeguard the public welfare; providing for an effective date. City of Denton City Council Minutes August 3, 2010 Page 10 Resolution No. R2010-029 J. Consider approval of a resolution voting for a member to the Board of Managers of the Denco Area 9-1-1 District; and declaring an effective date. Resolution No. R2010-030 K. Consider approval of a resolution of the City of Denton, Texas in support for the High Speed Intercity Passenger Rail (HSIPR) Program project nomination through the Texas Department of Transportation, Rail Division authorizing the Texas Department of Transportation to submit an application to receive funding to perform preliminary engineering (PE) and National Environmental Protection Act (NEPA) activities for an Amtrak passenger station stop at Krim, Texas for the benefit of the citizens of Denton and Denton County and, if the grant is approved, to facilitate interlocal agreements with the City of Krim and Denton County and take other actions necessary to implement the grant, and provide an effective date. 4. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointments to the following boards and commissions: 1. Human Services Advisory Committee 2. Library Board 3. Public Art Committee 4. Zoning Board of Adjustment Mayor Burroughs nominated Justin Rouhier for the Public Art Committee. Mayor Pro Tem Kamp motioned, Council Member King seconded to approve the nomination. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. B. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an City of Denton City Council Minutes August 3, 2010 Page 11 imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council Member Gregory asked for a work session regarding the order of agendas and length of meetings. Council Member Watts requested a staff report on the certificate of occupancy process that now required a floor plan as an added step, noting the goal for that being included and the length of the process. Council Member Watts asked for the status of an invoice for North x 35. Council Member Heggins requested Council training from the Fire Department on the NFPA 1710 policy. Council Member Engelbrecht requested new CPR training. C. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. D. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action taken on Closed Meeting items. With no further business, the meeting was adjourned at 6:52 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 5, 2010 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Thursday, August 5, 2010 at 8:30 a.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Heggins, Council Member Gregory, Council Member Engelbrecht, Mayor Burroughs, Council Member Watts, and Mayor Pro Tem Kamp. ABSENT: Council Member King 1. Receive a report, hold a discussion and give staff direction on the 2010-11 City Manager's Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City Manager Campbell indicated that the proposed budget represented his recommendation to Council for the upcoming budget. The preparation of the budget involved many employees over the last nine months. Council Member King joined the meeting. Bryan Langley, Director of Finance, presented a summary of the proposed budget. The work session would provide council with detailed information concerning the proposed budget and allow for discussion. Overview and Purpose - (1) discuss key assumptions for the General Fund; (2) discuss budget reductions recommended in the General Fund; (3) present General Fund supplemental packages recommended for approval by the City Manager; (4) review the proposed 2010-11 General Fund five-year financial forecast; (5) discuss the 5 year CIP plan and future GO/CO bond issuances; (6) provide key budget information for other funds, (7) discuss budget recommendations for utility funds and (8) next steps in the process. Key General Fund Assumptions - Fund Balance - The Audit/Finance Committee previously established a target reserve level as a percentage of budged expenditures with a 12-15% range established. The goal was 15% but a range was provided to allow for flexibility with economic cycles. Bond rating agencies had recently indicated that a reserve level below 15% was low compared to similarly rated entities. As a result staff was recommending that no budget be adopted that contemplated a fund balance level below 15-20% of budgeted expenditures. A long term plan should also indicate fund balance levels above this threshold, but emphasis would be on the current year. It was expected that the figure would remain above the target level over the short term. Key General Fund Assumptions - Sales Tax Revenues - the monthly changes in sales tax during 2009-10 was reviewed. The estimate for 2009-10 was $19.443 million which was $2.0 million below budget. 2008-09 collections were 4.5% below FY 2007-08. To provide a clearer picture of the cost and benefits of sales tax rebate agreements, incentives were now included in the expenditure budget. Langley reviewed the base sales tax revenue and economic development incentives. City of Denton City Council Minutes August 5, 2010 Page 2 Key General Fund Assumptions - Appraised Values and Tax Rate - The 2010 certified appraised values totaled $6.230 billion which was a 6% decline from what had been previously forecasted. The decline was 1.55% compared to the 2009 value. In 2009, the Council endorsed a plan to increase the over 65 property tax exemption in $5,000 increments. Due to the current economic challenges, the proposed budget did not include the increase from $30,000 to $35,000. This action would provide approximately $168,700 in additional revenue. Direction by Council was required on this item today so that staff would set the tax rate and follow state required notice and hearing requirements. Council Member Gregory asked what the additional $5000 exemption would be to an average homeowner given the current tax rate. Langley stated it would be about $35 per year. City Manager Campbell stated that staff needed the information from Council for the Appraisal District as soon as possible as the Appraisal District had included the increased in their initial tax statements and would need to remove it for the final version. Langley continued with a review of the appraised value history from 1998 to 2010. The city tax rate was comprised of two components - operations and maintenance which was deposited into the General Fund and GO debt service which was deposited into the GO debt service fund. The 2010-11 total tax rate per $100 was proposed to be $.6890 which was a 2.248 cent tax rate increase from the prior year. This was a reduction from a prior estimate of a 2.5 cent increase. Excluding new property, the proposed tax revenue was lower than the prior year. He reviewed the Texas Property Tax Code regulations in terms of effective tax rate and rollback tax rate. If the proposed tax rate exceeded the effective tax rate, Council would have to vote to consider a tax increase on August 17th and have a public hearing on the tax rate on September 7th and September 14th. Since the proposed tax rate did not exceed the effective tax rate, a separate vote and hearing was not required by Council. If Council recommended a tax rate greater than the effective tax rate, the public hearings and notices would be necessary. Key General Fund Assumptions - Other Revenues/Cost Issues - Franchise fees were estimated at $12.84 million in 2010-11 compared to $12.58 million in 2009-10. Fines and other miscellaneous fees were expected to be approximately $13 million below the 2009-10 budget. Transfers from other funds were expected to be approximately $850,000 more than the prior year. This included Return-On-Investment fees for the Airport Fund and savings related to the recent CO bond sale for utility projects. Various transfers incorporated to support positions in the General Fund included a transfer from the Tree Mitigation fund to support the Urban Forester position. This would require a change in the tree mitigation ordinance and future transfers might be limited due to available resources. A transfer from Capital Project funds to support work performed by the Parks and Recreation Department was proposed with future transfers limited due to available resources. A transfer from the Risk Retention Fund would support an additional Senior Attorney position with litigation savings expected to offset future year costs. The non- resident library fee was proposed to increase to a flat rate of $50 from the current tiered stricture which would result in an additional $9,416 of revenue. Reductions, Supplemental Packages and Five-Year Forecast - Expenditure Reductions - The General Fund had decreased by approximately $1.2 million but the actual decrease was more City of Denton City Council Minutes August 5, 2010 Page 3 than $3 million due to how economic development incentives were reflected. No layoffs were expected but the equivalent of 22 vacant positions would not be filled. No major programs would be eliminated with reductions intended to promote efficiency while maintaining current level of service. Council Member Gregory questioned that if a vacancy occurred other than one of the 22 positions which would remain open, might the new vacancy be not filled and one of the 22 positions be filled instead. City Manager Campbell stated correct, that the vacancies would be rated on a priority basis throughout the year so that those that were the most required at the moment could be filled. The more critical vacancies would be filled. Council Member Gregory stated that some services might have to be curtailed due to this strategy or someone might have to work harder. City Manager Campbell stated that some positions that were not filled might be ones added by Council through the last several years but it was better to keep those positions vacant than have layoffs or fixing a set number or category of vacancies. Langley reviewed the General Fund expenditure reductions for Parks, Planning, Library, Building Inspections, Police, Fire, Municipal Court, Streets, Street Lighting, Traffic, Transportation, CMO/City Council, Facilities Management, Finance, Human Resources, Internal Audit, Economic Development, and Legal. Additional reductions included overtime reductions, technology services transfer, training and travel budget, E-Team initiatives implemented, transfer to gas well fund eliminated, transfer of KDB program to Solid Waste, and pay increase eliminated. These reductions were not in the figures presented previously. For all reductions, the total reductions for the General Fund was approximately $5.2 million compared to prior forecasts. Council Member Watts asked for a breakdown on how of the reductions were from vacant positions and how much office supplies, etc. Keep Denton Beautiful program - the proposed budget recommended the transfer of the KDB program to Solid Waste. The three full-time employees would be transferred to Solid Waste from the General Fund. This represented a new expense to Solid Waste due to franchise fee and indirect cost payments to the General Fund. There were a variety of reasons for the recommended transfer some of which included the mission of KDB and Solid Waste were similar, Solid Waste was the most logical fit for the program and the cost savings to the General Fund. The Public Utilities Board did not recommend approval of the Solid Waste budget due to the inclusion of the franchise fee on rate revenue related to the KDB program. Reductions, Supplemental Packages and Five-Year Forecast - Recommended Supplemental Packages - $4.4 million and 21 FTEs were received in supplemental packages. Recommended packages included (1) right-of-way mowing by Parks for the annexation areas, (2) use of temporary employees in lieu of overtime in the Library, (3) funding for the Comprehensive Plan and Mobility Plan updates in Planning, (4) additional street maintenance for annexed areas, bridge and guardrail repair in annexed areas and enhanced street maintenance for Streets, (5) City of Denton City Council Minutes August 5, 2010 Page 4 fiber optic grant match and new traffic signals for annexed areas for Traffic, (6) funding for the opening of the new transit center and quiet zone study for Transportation, (7) five new police officers, (8) personal protective equipment for the Fire Department, (9) funding for a new Collections Specialist position for Municipal Court, (10) a new Senior Attorney position for Legal, and (11) a gas well inspection program for Code Enforcement. The proposed budget included $1.5 million and 11 FTEs in approved supplementary packages for the General Fund. Mayor Burroughs asked about the risk retention fund in terms of a new attorney position. Langley stated that revenue from risk retention would go to the General Fund to pay for the position. City Manager Campbell stated that the risk retention fund was used to pay for an outside attorney for those types of cases. This proposal could be a cost savings due the difference in the cost of an outside attorney versus an in-house position. Council Member Watts asked if this transfer would occur each budget cycle. Langley stated yes and ideally there would be reductions in other costs to offset the transfer. Compensation - the proposed budget did not include any merit increases for employees. It did include normal Step increases for Police/Fire Civil Service employees. The Meet and Confer agreement allowed the same compensation terms as civilian employees, if approved by Council. The five year forecast included an average of 2% in base pay increases each year beginning in FY 2011-12. Council Member Gregory asked for a definition of a Step increase. Langley stated that it was based on tenure with different levels of positions and years in those positions in the police and fire departments. Council Member Watts asked if that provision was with Meet and Confer or Civil Service. Jon Fortune, Assistant City Manager, stated that the rank stricture was part of the pay stricture for a number of years. Civil Service required that each rank receive the same pay. The Step increases were needed to maintain the equity for Civil Service. Mayor Burroughs asked if other employees received Step increases. Fortune replied that Step was a traditional stricture of police and fire departments across the county. There was no similar stricture for non-civil service employees Langley continued with General Fund revenue component comparisons for ad valorem taxes, sales taxes, franchise fees, transfers, service fees fines and fees and others. He also demonstrated General Fund expenditure components that included personal services, materials and supplies; maintenance and repair; insurance, operations, transfers and fixed assets. City of Denton City Council Minutes August 5, 2010 Page 5 Mayor Burroughs stated another bond committee would not be formed nor general obligation bonds sold until the end of FY 2013. At that time, a new oversight committee would be formed in 2013. Langley stated correct but staff would use next year to take another look at how the values were. Council Member Gregory asked if the future bond sales would be staged and coordinated with the retiring of other debt. Langley stated that one assumption was to keep the tax rate the same on the debt side. As older debt was retired, the city would be adding on new debt and keeping the amount the same. He continued with a Summary of Assumptions for the appraised value growth, sales tax growth, compensation, tax rate and future bond sales 2011-2015. The proposed 2010-11 General Fund long term plan assumed a 2% decline in ad valorem taxes in 2012, a 3% growth in 2013; and 4% each year after. It also included a one cent tax increase in 2014-15. The five year plan indicated that there would not be a balanced budget for the total five years. The managed positions left vacant in the budget were left out for all five years. Mayor Burroughs asked about this year's projected draw down compared to the projection last year. Langley stated it was projected at $13 million but in February it was updated to $4.6 million due to economic changes. The projection had started with $8.5 million but was reduced over the past several months. Council Member Watts asked about the airport transfer. Langley stated that it was included in the figures. The new expense items in the out years had nothing specifically planned for but were included as a financial planning tool. Council Member Gregory asked about the funding for the resource officers. Langley stated that the school resource officers were not addressed in the budget. Fred Greene, Assistant City Manager, stated that he had spoken to the DISD and they were allowing to take one officer from the schools and put him on the street. Council Member Gregory felt that the cost sharing with the DISD for programs should be around 50% of the costs. Council Member Watts felt that there was a need to have a work session on this item and should be done with enough time for the DISD to alter their budget if needed. Mayor Burroughs felt it would be a good topic for a joint meeting with DISD. Greene stated that the DISD budget cycle started in February so it would have to be done early in the process. City of Denton City Council Minutes August 5, 2010 Page 6 Council Member Watts noted that, excluding 2014-15, the deficit was almost reflective of the new expenses predicted. He had a concern that there was still a growing deficit with another cent increase in out years. He suggested continuing to converge those lines as the fund balance was being used up very quickly. GO Debt Service Fund - Langley reviewed the updated long term forecast and assumptions and planned future bond sales and potential issues. The GO debt service fund did not have a proposal for a tax rate increase. Staff was recommending issuing $6.2 million in remaining GOs from the 2005 bond program, as well as $4 million in COs related to vehicle purchases and a facility maintenance program. Future issuances would depend on appraised value growth. The Public Safety Training Facility was scheduled to be sold in 2010-11 but that was no longer feasible. The project would be delayed until funding could be obtained. The future size and timing of a GO bond election would be dependent on economic factors Mayor Pro Tem Kamp asked about grant funding which was received for the Public Safety Training Facility which would be lost if the project did not proceed. Langley stated that there was a possibility of losing about $1.5 million. Staff was meeting next week to talk about those funds and possibly get them extended out to other years. Other Key Funds - Health insurance - employee premiums were going to increase by an average of 8% with the rate stricture aligned with the cost to the plan. The exact cost to the employee would be based on the type of coverage selected; the change would range from -$28 to $312 per month. Additional employee rate increases were likely in future years. Increases in co-pay amounts for urgent care, ER visits and a change in the prescription formulary was proposed. Other Key Funds - Non-Airport Gas Well Funds - it was expected to end 2009-10 with $2.1 million in unrestricted fund balance in the non-airport gas well fund. For 2010-11 $1.9 million in expenditures were proposed for a grant match for a fiber optic traffic control system Council Member Watts suggested more discussion was needed on the $1.6 million proposed to come out of the non-airport gas well fund for special projects to be determined later such as the Comprehensive Plan, Mobility Plan and new animal shelter facility. Langley stated that there would be work sessions on these separate issues to use the special project money. City Manager Campbell stated that the intent was to target a possible source of funding for these special projects but nothing would be done until Council had given the authority to do so. Council Member Gregory stated that as staff brought these items back for council consideration to be sure to include all of the costs for the DTIP. Other Key Funds - Parks Gas Well Funds - $350,000 in expenditures from the Parks gas well funds were proposed for: (1) an ultraviolet sanitation system at Water Works Park, a Lake Forest Dam study and North Lakes Dam study, (2) playground equipment at North Lakes softball complex, (3) property purchase at Mack Park, (4) reconstruction of softball fields at North Lakes City of Denton City Council Minutes August 5, 2010 Page 7 Park, (5) installation of the McKamy-Evers bridge, and (6) replacement of the Evers Park baseball scoreboard. Council Member Engelbrecht asked about renovating the softball fields at North Lakes Park. Emerson Vorel, Director of Parks and Recreation, stated that two were done last year, two this year and two were planned for next year. Council Member Engelbrecht asked about the balance in the Park Gas Well fund. Langley stated that the ending balance would be $240,000. Council Member Engelbrecht assumed that more revenue would be realized next year. Langley replied correct. Council Member Watts asked about an estimate of revenue into that fund. Langley stated that $365,800 of revenue was estimated for next year. Other Key Funds - Airport Gas Well Fund - Staff was recommending the creation of a new Airport Enterprise fund for 2010-11. The airport operations were previously included in the General Fund. Operations would be combined with the Airport Gas Well fund in a new enterprise fund. The proposed budget included one additional full-time employee. Return on Investment and franchise fee would be paid to the General fund. The 2010-11 budget included $2.5 million in funds for capital improvements to support the Airport Business Plan. Other Key Funds - the 2010-11 proposed budget had assumed an increase in funding for recipients of the Tourist and Convention fund but due to lower hotel tax receipts, there would be an approximate 18% reduction in funding. Parks Land Dedication and Parks Development Trust funds were newly budgeted for 2010-11. These were funds received from developers and could only be used within 1/2 to 1 mile from the development. Utility Budget Recommendations - Customer Service - Service enhancements recommended included (1) absorbing the credit card convenience fees in June 2011, (2) audio camera system, (3) ProfitStars Remit Plus Software, and (4) CIS maintenance. Recommended reductions included a reduction of hours of operation during the week and close on Saturday. Due to the expanded automated payment system, walk-up customer activity was not sufficient to justify extended hours. Utility Funds - The Public Utilities Board recommended approval of each funds except for the Solid Waste fund which was not recommended due to the concern over the inclusion of the additional franchise fee revenue. Due to the timing of the General fund budget, the following adjustment would need to be made: (1) the 2% merit increase would be eliminated and (2) internal fund adjustments would need to be incorporated as result of the 2% salary adjustment. Each utility fund was experiencing revenue declines due to slower growth compared to prior projections. Expenditure reductions had occurred in each utility fund to partially offset revenue declines. City of Denton City Council Minutes August 5, 2010 Page 8 The Electric Fund had base rate revenues lower than previous projections. There was no base rate increase for electric utility customers and no increases in full-time employees. Major CIP projects included systems operations center, distribution substations, feeder extensions and improvements and new residential and commercial service. The Water Fund revenue had been significantly reduced from the prior year forecast. A 9% rate increase was proposed for 2010-11 which represented a $3.23 monthly increase to the average residential customer. Major CIP projects included Lake Lewisville Water treatment Plant Rehab, utility line relocations, and Service Center renovations. Langley reviewed the water fund long term financial plan. Council Member Watts stated that the debt coverage due to new projects would cause the rate increase in four years to be over 20%. Langley replied that was correct. Staff had looked at comparisons to other cities and Denton was still competitive with them. The Wastewater Fund revenue had been significantly reduced from the prior year forecast. No rate increase was proposed and no new full-time employees. The major CIP projects included utility line relocations, interceptor upgrades and Service Center renovations. The Wastewater long term financial plan was reviewed in terms of beginning fund balance, revenues, and operating expenditures. Council Member King asked what rate increase would be needed to cover the shortfall. Howard Martin, Assistant City Manager, said it would be about a 5% increase. Solid Waste Fund - The economic slowdown had reduced revenue projections compared to prior year forecasts. The Keep Denton Beautiful expenses were added to the 2010-11 budget which included a franchise fee and indirect cost of service transfers to the General Fund. Five full-time employees were expected to be added; three employees from KDB and two new employees for Constriction and Demolition processing. Major CIP projects included landfill expansion and capital costs and mechanical processing equipment. The Solid Waste monthly fee increases and Solid Waste long term financial plan was reviewed. Mayor Burroughs questioned the landfill fees. Vance Kemler, Director of Solid Waste, stated that those fees were not included on individual bills but was a fee for individuals or companies to bring waste to the landfill. Council Member Watts stated that in the Solid Waste finance plan, the debt coverage ratio was 1.55 this year and projected to go down in future years. Langley stated that solid waste was not a utility so the debt is a general obligation debt. Staff was trying to maintain the same approach for Solid Waste as other funds. There was a significant sale this year which drove up debt costs. City of Denton City Council Minutes August 5, 2010 Page 9 Council Member Watts questioned how much of the solid waste rate increase was due to the proposed KDB transfer. Langley stated that the rate increase was 30 cents per month. The franchise fee was $18,000 which was one cent of the 30 cents. The rest was actual costs of the program. Council Member Watts asked if it was $30 for all customers. Langley stated that refuse would be charged $.15 and recycling would be charged $.15. Council Member Watts stated that moving KDB showed as a cost savings from the General Fund with revenue coming back but in essence it was shifting the burden from the General Fund to the Solid Waste customers. Langley continued with summary information for full-time employees, budget summary and the next steps in the budget process. Mayor Pro Tem Kamp asked about increasing the tax rate to the effective tax rate. Langley stated that would be one tenth of a penny or $ 40-50,000 for the General Fund and debt service. Mayor Burroughs stated that it would be a very small difference to go the effective tax rate but would be produce enough for the Urban Forester position, for example. Mayor Burroughs stated that once the Appraisal District set the value of the roll and certified it, there were still some properties under protest and asked if those were excluded. Langley stated that those were included in the figures. Staff took the lowest possible value to put in the roll. If the tax rate went to the effective rate, $47,000 in revenue would be realized with $32,000 for the General Fund. Mayor Burroughs asked if the continuing projected sales tax revenue loss was still at 5%. Langley replied correct. Mayor Burroughs stated that new sales tax figures would be in next week and that would be important information. Right now, the loss was at 2.6%. If the current trend continued and the year end loss was only at 2.6%, he questioned how much of additional revenue would be realized. Langley stated that if the loss was 3% instead of 5%, $45,000 would be gained. However, if the number continued to decline, there would be a need to be careful. City Manager Campbell stated it was generally better to be conservative in the estimate rather than overestimate. City of Denton City Council Minutes August 5, 2010 Page 10 Mayor Burroughs stated if Council had certain items they wanted to change and make expenditures in the budget, could the items be contingent upon the year end amount of sales tax revenue to be above a certain amount. That would provide additional revenue this year to set aside for a particular purpose for next year if the sales tax figures came in higher than expected. Langley stated that those could be one-time discretionary expenditures. City Manager Campbell stated that such items could be included in the budget with direction to hold them until after October 1st to make a final decision. Just because money for items were approved in the budget did not mean they had to be spent. Council Member Watts cautioned to be careful because of a need to reduce the General Fund by robbing Peter to pay Paul in terms of the tree mitigation fund and the Urban Forester position. It was hard to reverse a trend when situations got better. He questioned the funding for the new attorney. City Attorney Burgess stated that outside attorney costs this year were approximately $1.2 million. The proposal was to reduce the number of outside litigation work and paying $175 - $300 per hour in outside costs. The inside costs would be much less and as those dollars over time and as cases came in, there would be more realization of those costs. Mayor Burroughs asked if a litigator was being considered. City Attorney Burgess stated that she would either hire a litigator or reorganize some assets in the office to do the work. She stated that most of the annexation work was done in-house; maybe $7000 was for annexation issues. A lot of the cost was for TMPA. Mayor Burroughs indicated that he was having a problem with the tree mitigation fund proposal. Council Member Watts stated that some KDB events were similar to Solid Waste events so he could see Solid Waste being involved in the transfer. Suggesting the transfer when there was less pressure, might not cause as much attention. In terms of the franchise fee, if the solid waste fees were being increased just cover the solid waste fees, there would not be a discussion. It was coming into play because of the associated increase cost with the transfer of the program. However, he did not have enough of a problem with the franchise fee to block the transfer. Council Member Heggins agreed with transferring KDB to Solid Waste. Council Member Gregory stated that he had asked himself these questions regarding KDB: (1) was Solid Waste the appropriate place for the program - yes: (2) should the program be kept - yes; (3) should the funding be from Solid Waste revenues - yes and (4) should there be a franchise fees - no. His suggestion was to calculate the proposal so the franchise fee was not assessed for Solid Waste. Langley stated that would be $18,000. City of Denton City Council Minutes August 5, 2010 Page 11 City Manager Campbell stated a philosophical concern with the addition of those two functions. Each fund in the city should pay for services received and should be paid for services performed. KDB was extension of what Solid Waste was trying to do in the community. Mayor Burroughs suggested going back 3 years to see what the forecasted drawdowns were and compare to what was proposed this year to see how accurate the forecasts were. Council Member Watts felt the amount set aside for outside audits was rather large. Langley stated that the amount of the audit would depend on the type of audits being done. A typical audit was $20-25,000. Staff had already identified some areas to target for audits. Council Member Watts asked if the Internal Auditor position was part of the managed vacancies. Langley replied correct with $50,000 set aside for the position. He asked council if there was a consensus regarding the over 65 tax exemption. Council Member Gregory stated he was in favor of it for this year but to look at it closely for next year. City Manager Campbell stated that he would advise the Appraisal District to proceed as originally planned but staff would look at it for next year. Council Member King indicated that the exemption amount was a fluid figure as the exemption did not stay with the house. The exemption could change with a change in ownership. Council Member Engelbrecht indicated that he had heard comments from seniors in good positions who indicated they did not need the exemption and others who were not in a good position and needed the exemption. Mayor Burroughs stated that when Council was looking at the large preliminary gap, he knew that the added exemption could not be done. However, recently the figures had changed and there was the possibility now that it might be able to be done. Mayor Pro Tem Kamp stated that she had the same concerns as last year regarding the exemption. There was still the uncertainty on where to make up the funds. Langley stated that if the exemption were put back in the budget, the deficit could be drawn down from the fund balance or if the sales tax figures went higher, it could help. City Manager Campbell stated that staff would present information at the next meeting in terms of a summary on the status of the draw down, the Urban Forester position, the over 65 exemption and the effective tax rate. Council Member Watts indicated that he was more in favor of the over 65 exemption given the new information with new budget figures. The exemption had been behind over the years. He would also be in favor of including the Urban Forester in the General Fund. City of Denton City Council Minutes August 5, 2010 Page 12 Mayor Burroughs stated that certain codes such as tree preservation and health and safety had a proactive element that was necessary. Other things were more aesthetic in nature, that didn't involve health and safety. Aesthetic ones were reactive on a complaint driven basis rather than proactive. That might help with the proposed positions for gas well inspections. Mark Cunningham, Director of Planning and Development, stated that gas well inspections were much more technical than code enforcement inspections. A gas well inspector had to know more than code regulations and also had a different set of certifications needed. Some inspections could only be done with certain certifications and once certified, the employee must be a Civil Service employee. Council Member King felt more data was needed on code enforcement, whether reactive or proactive. The source of the citations might give room to not hire 4 new people but transfer into those tasks. Cunningham stated that the goal of the council was to have a proactive element to code enforcement. The recent annexations acquired 7000 acres to code enforce and staff was now getting into the three year process to get non-annexed properties into the city. Cunningham stated that the Urban Forester did issue citations that were paid as window fines in many circumstances. City Manager Campbell stated that the fund balance could be reduced by the amount needed to keep the Urban Forester in the General Fund or cut something out of the budget. Mayor Burroughs stated that he had a problem with using money in the tree mitigation fund for the Urban Forester as that was not what it was intended to do. Council Member Watts expressed a concern with hiring employees with grants as the City ended up with costs when the grant ended. Council Member Heggins stated that she was in favor of the Collection Specialist for Municipal Court as many people automatically did not pay their fines. Council Member King supported the continuation of the over 65 tax exemption. For those over 65, that might be a substantial difference. It might also be an incentive for building new homes here for retirement. Council Member Heggins agreed with Council Member King on keeping the over 65 tax exemption. Council had promised to do that and should do so. Mayor Burroughs asked what could be done to replace that money for the over 65 exemption. How would that expense be offset it as it was not budgeted for. City Manager Campbell stated that it had not been included in the budget to increase that exemption. City of Denton City Council Minutes August 5, 2010 Page 13 Following the completion of the Work Session, the City Council was to convene in a Closed Meeting to consider the specific item listed below. 1. Closed Meeting A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric ("DME") for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. The Council did not meet in Closed Session to discuss the above matter. With no further business, the meeting was adjourned at 1:12 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 A~T ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Microsoft Corporation Client Access Licenses (CALs) software licensing as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR) under 4DM-SDD-1014; providing for the expenditure of funds therefor; and providing an effective date (File 4566-Purchase of Microsoft CALs software licensing to Dell-ASAP Software in the amount of $140,107.20). FILE INFORMATION In order to conform to licensing requirements by Microsoft Corporation, a Client Access License (CAL) is required to access Microsoft server and database technologies. Software applications used by all departments connect to these technologies thereby requiring CAL licensing. Purchasing these CALs within the current Enterprise Agreement is a one-time expenditure and will provide a cost savings to future upgrade licensing. RECOMMENDATION Award to Dell-ASAP Software in the amount of $140,107.20. PRINCIPAL PLACE OF BUSINESS Dell-ASAP Software Buffalo Grove, IL ESTIMATED SCHEDULE OF PROJECT Microsoft Corporation Client Access License software licensing will be implemented September 22, 2010 thru September 30, 2010. Agenda Information Sheet September 21, 2010 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the FY2009-10 Technology Services job cost account number 840026744.1355.30100 in the amount of $116,895.20 and account number 840026746. 13155.310100 in the amount of $23,212.00. The job cost accounts will automatically carry over into the FY 2010-11. Respectfully submitted: Bryan Langley, 349-7100 Director of Finance Attachment 1: Quote Attachment 2: Licensing Signature Form I-.CIS-File 4566 O O N N r- O r- O O O 6?K)K)K)K)6~fl O N N_ EA EA EA EA EA EA O O N LO x w U s.. o ~ 1.0 D ~ y U o 1.0 0 0 co 0 V U Q 4~ S'" Q O '.d q o a O ~ 4-4 0 O 0 Q~ U ~ Z o 'Im o a w Q U W Q a V 0 W V5 Q~ W w a~ 0) co w Exhibit 2 Mrcrnoft' I Volume Licensing Enterprise Signature Form State and Local Master Agreement number or 01 E61288 Enrollment number` SGN- Proposal ID Microsoft to complete if applicable *Note: Enter the applicable active numbers associated with the below documents. Microsoft requires the associated active number be indicated here, or listed below as new. This signature form and all contract documents identified in the table below are entered into between the Customer and the Microsoft Affiliate signing, as of the effective date identified below. Contract Document <Choose One> Document Number or Code <Choose One> Document Number or Code <Choose One> Document Number or Code <Choose One> Document Number or Code Enterprise Enrollment Amendment B18 Document Description Document Number or Code Document Description Document Number or Code Document Description Document Number or Code Document Description Document Number or Code By signing below, Customer and the Microsoft Affiliate agree that both parties (1) have received, read and understand the above contract documents„ including any websites or documents incorporated by reference and any amendments and (2) agree to be bound by the terms of all such documents. Customer Microsoft Affiliate Name of Entity * City of Denton Microsoft Licensing, GP Signature * Signature Printed Name Printed Title * Printed Name Signature Date * Printed Title Signature Date (date Microsoft Affiliate countersigns) Tax ID Effective Date (may be different than Microsoft's signature date) *indicates required field Program Sign Form Gov(US)SLG(ENG)(Oct2009) Page 1 of 2 Optional 2nd Customer signature or Outsourcer Signature (if applicable) Name of Entity * Signature * Printed Name Printed Title * Signature Date Name of Entity * Signature * Printed Name Printed Title * Signature Date If Customer requires physical media, additional contacts, or is reporting multiple previous Enrollments, include the appropriate form(s) with this signature form. If no media form is included, no physical media will be sent. After this signature form is signed by the Customer, send it and the Contract Documents to Customer's channel partner or Microsoft account manager who must submit them to the following address. When the signature form is fully executed by Microsoft, Customer will receive a confirmation copy. Microsoft Licensing, GP Dept. 551, Volume Licensing 6100 Neil Road, Suite 210 Reno, Nevada 89511-1137 USA Prepared By: Name of Preparer Email of Preparer Program Sign Form Gov(US)SLG(ENG)(Oct2009) Page 2 of 2 Exhibit 2 Mrcrnoft, I Volume Licensing Enterprise Enrollment Amendment ID 618 000-shancock-s-771 a A. The Enrollment shall be amended by adding the section entitled "Supplemental Enterprise Product selection" to supplement for new Enterprise Products being added to the existing Enrollment after the Enrollment effective date. Select the supplemental Enterprise Products to be added to Customer's Enrollment. B. A new section entitled "Supplemental New Enterprise Product" is to be added to the Enrollment as follows: Notwithstanding anything to the contrary in the Enterprise Agreement, andonly as it relates to this Enrollment, the Enrolled Affiliate may order new Enterprise Products not previously ordered provided the Enrolled Affiliate complies with all other sections of the Enterprise Agreement as it relates to the Enterprise Product. This amendment must be attached to a signature form to be valid. EAEnrAmend(M)(ENG)(Oct2008) Supplemental Enterprise Product B B18 Page 1 of 1 ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF MICROSOFT CORPORATION CLIENT ACCESS LICENSES (GALS) SOFTWARE LICENSING AS APPROVED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION DEPARTMENT OF INFORMATION RESOURCES (DIR) UNDER 4DIR-SDD- 1014; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4566-PURCHASE OF MICROSOFT CALS SOFTWARE LICENSING TO DELL-ASAP SOFTWARE IN THE AMOUNT OF $140,107.20). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NT TM-FR VFNDOR AMOUNT 4566 Dell-ASAP-Software $140,107.20 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-ORD-File 466 DATE: September 21, 2010 DEPARTMENT: City Attorney's Office CITY ATTORNEY: Anita Burgess SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas ratifying the action of the City Manager's award of a contract dated August 26, 2010, by and between the City of Denton and Brandt Engineering, for the purpose of installing lighting retrofit replacement, acquiring two (2) chilled water pumps 15 HP, two (2) condenser water pumps 7.5 HP, variable frequency drives VFDs for the chilled water pumps, and two (2) cooling towers in the total sum of $512,541, said contract having been executed pursuant to Ordinance 2010-097 relating to the City's expenditures of formula funds allocated to the City of Denton through the federal government's Department of Energy's Energy Efficiency and Conservation Block Grant Program and authorizing administration of expenditures and fiscal and administrative matters related to said Grant Program. BACKGROUND By Ordinance 2009-063, the City of Denton applied for funding through the Department of Energy's Energy Efficiency and Conservation Block Grant program, a component of the American Recovery and Reinvestment Act, and was awarded $1,117,000 in formula funding to administer programs that met the goals of the Department of Energy for this grant program. By Ordinance 2010-097, the Denton City Council authorized the City Manager, or appropriate designee(s), to administer all expenditures of the formula fiends allocated to the City of Denton through the Energy Efficiency and Conservation Block grant in accordance with the Energy Efficiency and Conservation Strategy and to handle all fiscal and administrative matters related to the administration of these grant funds. The Department Of Energy has stated that these grant funds should be allocated promptly and, pursuant to the authority set forth in Ordinance 2010-097, the City Manager signed a contract dated August 26, 2010 with Brandt Engineering for the installation of retrofit lighting replacements in multiple city buildings and the acquisition of two (2) chilled water pumps 15 HP, two (2) condenser water pumps 7.5 HP, variable frequency drives (VFDs) for the chilled water pumps, and two (2) cooling towers, utilizing an Interlocal Cooperative Purchasing Program Agreement with the Harris County. Department of Education (HCDE), Harris County, Texas. Such purchase is a proper competitive acquisition under Section 271.102 of the Local Government Code. The total sum of the Brandt Engineering contract was $512,541.00, which funds are a portion of the Department of Energy Efficiency and Conservation Block Grant allocations to the City of Denton. While Ordinance 2010-097 is ample authority for the acquisition, this action item before the city council ratifies the manager's action to insure complete compliance with grant requirements and federal, state and local law. RECOMMENDATION The City Attorney recommends approval. EXHIBITS 1. Ordinance 2010-097 of April 6, 2010 2. Contract Agreement of August 26, 2010 by and between the City of Denton, Texas and Brandt Engineering s:lour dorumentslord1nat1ces1101eecbg ordinance.doc Exhibit I ORDINANCE NO. 20 x 0-09 7 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER; OR HIS DESIGNEE, TO ADMINISTER THE FORMULA FUNDING ALLOCATED TO DENTON UNDER THE ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT, AS PART OF THE AMERICAN RECOVERY AND REINVESTMENT ACT, FOR THOSE PROJECTS IDENTIFIED FOR FUNDING UNDER THE CITY OF DENTON'S ENERGY EFFICIENCY AND CONSERVATION STRATEGY, AS FILED WITH THE UNITED STATES DEPARTMENT OF ENERGY, IN THE TOTAL AMOUNT OF $1,117,000; PROVIDING FOR THE EXPENDITURE OF FUNDS AND AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance 2009-063, the City of Denton applied for funding through the Department of Energy's Energy Efficiency and Conservation Bloch Grant program, a component of the American Recovery and Reinvestment Act; and WHEREAS, the City of Denton was awarded $1,117,000 in formula funding through the Energy Efficiency and Conservation Block Grant to administer programs that met the goals of the Department of Energy for this grant program; and WHEREAS, the Department of Energy provided $65,100 of these formula funds to the City of Denton for the purpose of developing an Energy Efficiency and Conservation Strategy, part of which involved prioritizing municipal projects to determine those that best met Department of Energy and municipal goals for expenditures of the remaining funds; and WHEREAS, the City of Denton's Committee on the Environment evaluated and provided direction on the prioritization strategy during a series of public meetings, ultimately culminating in a recommendation for six (6) municipal projects to be funded under the Energy Efficiency and Conservation Block Grant program; and WHEREAS, the City of Denton submitted the required information concerning the recommended projects to the Department of Energy for evaluation, and received approval for the recommended projects from the Department of Energy on March 19, 2010; and WHEREAS, it is deemed to be in the best interests of the City of Denton to administer these funds as approved by the Department of Energy; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council authorizes the City Manager, or appropriate designee(s), to administer all expenditures of the formula funds allocated to the City of Denton through the Energy Efficiency and Conservation Block grant in accordance with the Energy Efficiency and Conservation Strategy, as approved and / or amended by the Department of Energy. SECTION 2. The City Council authorizes the City Manager, or appropriate designee(s), to handle all fiscal and administrative matters related to the administration of these grant funds, and all other matters connected therewith, SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this 9 [ - day of '2010. MARK A, YOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ~ CONTRACT AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § THIS AGREEMENT, made and entered into this 26th day of Asst A.D., 2010, by and between City of Denton of the County of Denton and State of Texas, acting through George C. Cam bell thereunto duly authorized so to do, hereinafter termed. "OWNER," and Brandt 1728 Briercroft Carrollton TX 75006 of the City of Carrollton , County of Dallas and State of Texas hereinafter termed "CONTRACTOR." WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by OWNER, and under the conditions expressed in the bonds attached hereto, CONTRACTOR hereby agrees with OWNER to commence and complete performance of the work specified below: As per attached Exhibit "B" Scope of Work dated June 2 2010 -in the amount of $512,541.00 and all extra work in connection therewith., under the terms as stated in the General Conditions of the agreement; and at his (or their) own proper cost and expense to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete the work specified above, in accordance with the .conditions and prices stated in the.Proposal and the Performance and Payment.B.oads, attached hereto, and in accordance with all the General Conditions of the Agreement, the Special Conditions, the Notice to Bidders (Advertisement for Bids), and Instructions to Bidders, as referenced herein and on file in the office of the Purchasing Agent, and in accordance with all local, state and federal laws; and plans, which includes all maps, plats, blueprints, and other drawings and printed or written explanatory matter thereof, and the Specifications therefore, as prepared by: Brandt all of which are referenced herein and made a part hereof and collectively evidence and constitute the entire contract. CA-1 Independent Status It is mutually understood and agreed by and between City and Contractor that Contractor is an independent contractor and shall not be deemed to be or considered an employee of the City of Denton, Texas, for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, worker`s compensation, or any other City employee benefit. City shall not have supervision and control of Contractor or any employee of Contractor, and it is expressly understood that Contractor shall perform the services hereunder according to the attached specifications at the general direction of the City Manager of the City of Denton, Texas, or his designee under this agreement. Indemnification Contractor covenants and agrees to and does hereby indemnify, hold harmless and defend, at its own expense, Owner, its officers, servants and employees, from and against any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of the Work and services to be performed hereunder by Contractor, its officers, agents, employees, subcontractors, licensees or invitees, whether or not caused, in whole or in part, by the alleged negligence of the officers, servants, employees, of the Owner. Contractor likewise covenants and agrees to, and does hereby, indemnify and hold harmless Owner during the performance of any of the terms and conditions of this Contract, whether arising out of in whole or in part, any and all alleged acts or omissions of officers, servants, or employees of Owner. The provisions of this paragraph are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Choice of Law and Venue This agreement shall be governed by the law of the State of Texas and venue for its construction and enforcement shall lie in the courts of Denton County, Texas. The CONTRACTOR hereby agrees to commence work on or after the date established for the start of work as set forth in written notice to commence work and complete all work within the time stated in the Proposal, subject to such extensions of time as are provided by the General and Special Conditions. The OWNER agrees to pay the CONTRACTOR in current funds the price or prices shown in the Proposal, which forms a part of this contract, such payments to be subject to the General and Special Conditions of the Contract. CA - Right to Audit The OWNER shall have the right to audit and make copies of the books, records and computations pertaining to this agreement. The CONTRACTOR shall retain such books, records, documents and other evidence pertaining to this agreement during the contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within 10 business days of written request. Further, the CONTRACTOR shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this agreement, and to allow the OWNER similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost of the audit will be borne by the OWNER unless the audit reveals an overpayment of I% or greater. If an overpayment of I% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the CONTRACTOR which must be payable within five business days of receipt of an invoice. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in the OWNER'S sole discretion, grounds for termination thereof. Each of the terms "books=, "records", "documents" and "other evidence", as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. CA-3 IN WITNESS WHEREOF, the parties of these presents have executed this agreement in the year and day first above written. ATTEST: City of Denton OWNE E~ , BY: (SEAL) ATTEST: Brandt CONTRACTOR 1728 Briercroft Carrollton, TX 75006 MAILING ADDRESS APPROVED AS TO FORM: ANITA BURGESS, CITY TTORNEY 972-395-6000 PHONE NUMBER 972-395-6532 F NUMBER BY. 61 -c2t ,E John Hanes / Constr. operations Mpr. PRINTED NAME (SEAL) CA-4 ell, Exhibit "B" Scope of Work June 2, 2010 City Of Denton Attn: Mr. David Saltsman Re: Lighting Replacement/Mechanical Equipment Purchase Per your request Brandt Engineering is pleased to provide our proposal for mechanical and elec- trical support on the above referenced project. Our scope of work is based upon our site visit with you. Our specific scope of work is as follows: Lighting Retrofit Replacement: Cost 5436,980.00 Please see the attached lighting scope broken down into specific light fixtures -to be replaced in each building. Mechanical Equipment Purchase: Purchase and deliver the mechanical equipment listed in Exhibit "C attached. Installation of equipment is to be performed under a separate contract. We include: • Provide (1) year parts and labor warranty on workmanship and materials • Payment and Performance Bond is included. Cost $7,541.00 We exclude: Repairs to existing equipment or controls Warranty on existing equipment Any additional code upgrade items not mentioned above Fire alarm interlocks hazardous material abatement Sales tax We propose to provide all labor, tools material, equipment, supervision to perform the above stated scope of work for the lump sum total of: $512,541.00 AUSTIN 1340 Airport Commerce Dr.. Suite 575 DALLAS 11245 Indian Trail PORT lrV0P,Tr SAh ANTOtd[O r WACO Austin, TX 78741 Dallas, 7X75229 2502 Gravel Drive Fort Worth TX 7611 B 6023 Corridor Pkwy., Suite 100 1100 Jewell Drive 1. 00 972.241.9411 , 817 826 0033 Schertz, TX 78154 ' Waco, TX 76712 TACLA CLA 275 629C ~ TACLA 0004668C . . TACLA <<^07G7E 210.599.6 120 TACLA 000745C 254.772,1693 TECL 201o J TECL 20109 TECL 20109 TECL 201 TACLA 000430C 09 TECL 20109 i-_ M Brandt Engineering is a mechanical, electrical and plumbing solutions provider. We provide engineering design and analysis, new construction, upgrades, retrofits, and maintenance service to a variety of clients, from our offices in Dallas, Fort Worth, Waco, Austin and San Antonio, Texas. (For additional in- formation see www.brandten .com.) We have installed entire HVAC systems and completed chiller re- placement projects at numerous similar facilities. We appreciate your consideration of our firm and look forward to working with you. Please do not hesitate to contact me directly should you have any questions or concerns. Thank you, Craig Whaley LEED AP Director of ECO Services Brandt PHONE 972.395,6185 CELL 214.587.9573 brandteng.com AUSTIE\! 1340 Airport Commerce Qr., Suite 575 DALLAS 11245 Indian Trail FORT 'NORTH 2502 Gravel D i SAM A 1~70~:;C 1NACC Austin, TX 76741 Deltas, TX 75229 r ve Fort WoAtl TX 76118 6023 Co; ridor Pkwy„ Suite 100 1100 Jewell Drivc 512.491.9100 972.249.9411 , 817 626 0033 Schertz, TX 76154 Waco, TX 76712 TACLA 276290 TACLA OCD468C . . TACLA 2C707E 210.599.6120 TACLA 0007450 254.772.16693 TECL 20109 TECL 20i 09 TECL 20109 TACLA 0004300 TECL 20109 TELL 201 C9 Exhibit "C" Mechanical Equipment Cost Breakout The following mechanical equipment will be purchased and delivered. (2) New chilled water pumps 15HP each (2) New condenser water pumps 7,5 HP each (2) New VFD's for the chilled water pumps (2) New cooling towers Cost $68..020.00 AUSTIN 1340 Airport Commerce Dr., Suite 575 DALLAS 1'1245 Indian Trail FORT VVOPTH SAN ANT ONIO r lLACC Austin, TX 78741 Dallas, TX 75229 2502 Gravel Drive Fort Worth TX 76118 6023 Corridor Pkwy., suite 100 1100 Jewell Drive 512.491.9100 972.241.9411 , 517 626 0033 Schertz, TX 78154 Waco. 76712 TACLA 27629C TACLA 000468C . . TACLA 20707E 210.599.6120 93 2 .1 TEGL 20109 TECL 20109 TELL 201 O9 TACLA OOG745C CLA 000430C TALA TELL 20109 TECL 20109 ' . 1\codad\departments\1ega1\ourdocuments\ordinances\10\brandratificationord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS RATIFYING THE ACTION OF THE CITY MANAGER'S AWARD OF A CONTRACT DATED AUGUST 26, 2010, BY AND BETWEEN THE CITY OF DENTON AND BRANDT ENGINEERING, FOR THE PURPOSE OF INSTALLING LIGHTING RETROFIT REPLACEMENT, ACQUIRING TWO (2) CHILLED WATER PUMPS 15 HP, TWO (2) CONDENSER WATER PUMPS 7.5 HP, VARIABLE FREQUENCY DRIVES VFDS FOR THE CHILLED WATER PUMPS, AND TWO (2) COOLING TOWERS IN THE TOTAL SUM OF $512,541, SAID CONTRACT HAVING BEEN EXECUTED PURSUANT TO ORDINANCE 2010-097 RELATING TO THE CITY'S EXPENDITURES OF FORMULA FUNDS ALLOCATED TO THE CITY OF DENTON THROUGH THE FEDERAL GOVERNMENT'S DEPARTMENT OF ENERGY'S ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM AND AUTHORIZING ADMINISTRATION OF EXPENDITURES AND FISCAL AND ADMINISTRATIVE MATTERS RELATED TO SAID GRANT PROGRAM. WHEREAS, the City Council of the City of Denton hereby finds that the agreement between the City and Brandt Engineering dated August 26, 2010, in the total sum of $512,541, said contracts having been executed pursuant to Ordinance 2010-97, attached hereto and made a part hereof by reference (the "Agreement") serves a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the Body of this Ordinance as if fully set forth herein. SECTION 2. The Agreement is hereby approved and ratified and the City Manager's, or his designee's, execution of the Agreement is hereby ratified. All expenditures authorized by the Agreement are also ratified and approved. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2010. MARK A. BURROUGHS, MAYOR l\codad\departments\legal\our documents\ordinances\10lbrandratificationord.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 2~e~ This page left blank intentionally . salegahour documentslmiscellaneous1101ais atmos settlement agr.doc AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Legal Department CM/DCM/ACM: John Knight, Deputy City Attorney SUBJECT: Consider approval of a resolution of the City Council of the City of Denton, Texas, ("City") approving a change in the tariffs of Atmos Energy Corporation, Mid-Tex Division ("Atmos"), as a result of a settlement between Atmos and the Atmos Texas Municipalities ("ATM"); finding the rates set by the attached tariffs to be just and reasonable; finding that the additional cost for replacing steel service lines is appropriate and is approved subject to a prudence review, finding that the continuation of the rate review mechanism ("RRM"), as amended, for two years is reasonable, requiring delivery of the Resolution to the company and legal counsel; determining that the meeting at which this Resolution was approved complied with the open meetings act; making other findings and provisions related to the subject; and declaring an effective date. DISCUSSION: For the last three years ATM Cities have worked to resolve rate cases brought by Atmos Energy Corp. ("Atmos") under a regime known as the Rate Review Mechanism ("RRM"). This mechanism operated under a February 2008 settlement agreement where a number of items that can be very contentious under traditional rate making, like the rate of return on equity and the capital structure of the utility, were stipulated. The RRM was both forward looking and backward looking. The forward looking component was based upon the books and records for the most recent historic calendar year. Those books and records were used to set rates for the next year. The backward looking component consisted of making up ("truing up") any shortfall in achieving the stipulated rate of return of 9.6% for the recent calendar year. There were very significant disputes about how to calculate the achieved return. ATM has always been concerned that truing up the return took away some of the incentive for the utility to operate prudently and efficiently. The RRM for this year was filed in mid-April. At about the same time the Railroad Commission was starting a rulemaking aimed at requiring Atmos to replace steel service lines. Those are the lines which go from the main in the street to the meter at the house or business. This issue was on the Commission's front-burner because of three recent explosions involving steel service lines. At one point in time the Commission appeared to be considering replacing all service lines on a very rapid schedule which would have resulted in very substantial rate increases. It would also have necessitated the expenditure of substantial resources by cities to assist in the monitoring and routing of these lines when many cities were experiencing downsizing and other belt-tightening measures. Finally, the RRM was instituted as a three year experiment. Thus, also at issue during the three months of negotiations with Atmos was whether the RRM experiment should continue. sAcgallour docLtmentslmiscellaneous1101ais atmos settlement agndoc Six -One Percent (61%) Reduction in Rate Request: Atmos requested, in connection with this year's RRM, an increase in rates of approximately $70 million with about half it coming from the retroactive piece-the rate of return true-up. The settlement calls for an increase of $27 million. For a typical residential bill the increase is $1.25 per month. This amount is 61% less than what was requested by Atmos. Our rate experts, who arc located just outside Kansas City, were very thorough in their analysis of the Company's books and records. Steel Pie Replacement-100,000 in Next Two Years: Over the past few years there have been a number of explosions involving steel service lines. The worst of these lines need to be replaced rapidly. Some of the lines have been in the ground since the `50s. Atmos did a risk assessment which attempted to target the lines most likely to have problems. The most at-risk lines are those which are located at or near lines with a recent leak history. Several member cities of ATM, like San Angelo, Corsicana, Copperas Cove and Denton, have thousands of at-risk lines. Other ATM cities like Mexia, Bryan, Greenville, Gatesville, Hillsboro and Commerce will have hundreds of lines replaced in the next two years. The steel pipe replacement program will result in an increase in the residential customer charge of 15 cents per month this year and somewhere in the neighborhood of 40 cents per month next year. Even with these increases in the customer charge, the customer charge for Atmos customers in the Mid-Tex region are among the lowest in Texas. RRM is Chan ed but will Continue For Two Years: As part of the settlement negotiations the RRM was continued for two years but it was substantially altered. Remember that the retroactive rate of return true-up component of RRM has been very controversial. Continuation of RRM for two years was conditioned on eliminating the true-up. So, next year and the year after there will be no true-up feature in the RRM filing. Hopefully, this will mean the annual amounts requested will be much less and the filing should be easier to analyze. Future General Rate Case: As part of the settlement, Atmos is to file a general rate case before each city and the Railroad Commission on or before June 1, 2013. The last rate case was filed in 2007. Periodically it is important to have a general rate case in order to review all costs and expenses at the same time and to review the manner and method that costs are allocated and rates are designed for each rate class. Effective Date Of Settlement: The settlement is effective on October 1, 2010. The total increase for the typical residential customer is $1.40 per month and for the typical commercial customer the increase is $3.82 per month which includes both the settlement of the RRM filing for this year and the steel pipe replacement issue. OPTIONS: 1. Approve the Settlement Agreement. 2. Deny the Settlement Agreement. If a city should choose not to approve the settlement, it is likely that the decision will be appealed to the Railroad Commission by Atmos. An appeal of this sort could cost over $1 million, including the rate case expenses of Atmos and for the city. An appeal of this sort will be difficult to pursue if most of the cities located in the Mid-Tex Division have adopted the settlement. Page 2 sAlegallour documentsWiscellaneous1101ais atmos settlement agr,doc RECOMMENDATION: Counsel for ATM Cities recommends that the settlement be adopted. On balance, the settlement is a fair one. The settlement of this year's RRM proceeding is generally consistent with the adjustments made to Atmos' filing by ATM's experts at Utilitech. Further, Counsel can recommend the extension of the RRM for two years with the elimination of the rate of return true-up. Finally, Counsel recommends the adoption of the settlement on the replacement of steel service lines most at-risk of explosion. It is very important that the safety of the lines most in need of replacement be assured. On balance, when the settlement is looked at as a whole, it is worth adopting for all the foregoing reasons Respectfully submitted, A ohn Knight Page 3 salegahour documentslresolutionsll Olatmos reso 2010 rim settlement.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF , TEXAS, ("CITY") APPROVING A CHANGE IN THE TARIFFS OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION ("ATMOS"), AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES ("ATM"); FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE ADDITIONAL COST FOR REPLACING STEEL SERVICE LINES IS APPROPRIATE AND IS APPROVED SUBJECT TO A PRUDENCE REVIEW, FINDING THAT THE CONTINUATION OF THE RATE REVIEW MECHANISM ("RRM"), AS AMENDED, FOR TWO YEARS IS REASONABLE, REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS APPROVED COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under §103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation - Mid-Tex Division ("Atmos") rates, operations, and services as a gas utility within the municipality; and WHEREAS, the City has participated in prior cases regarding Atmos as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"); and WHEREAS, on or about April 15, 2010 Atmos filed for an increase in rates, pursuant to the Rate Review Mechanism ("RRM"), of approximately $70 million; and WHEREAS, almost one-half of the increase for RRM this year is the result of the rate of return true-up component of RRM; and WHEREAS, the rate of return true-up component of RRM has been controversial and difficult to apply; and WHEREAS, over the past few years there have been explosions of Atmos' steel service lines in the Mid-Tex Division which have caused serious property damage and loss of life; and WHEREAS, the most at-risk steel service lines need to be replaced over the next two years; and WHEREAS, after months of negotiations and after months of reviewing Atmos' books and records by ATM's experts , a settlement was agreed to by Counsel for ATM, acting on behalf of ATM's Executive Committee, with Atmos, which provides for: (1) the replacement of the most at-risk steel service lines, to be paid for with a small increase in the customer charge for residential and commercial customers; (2) a reduction of 61% of Atmos' requested increase in rates for 2010; (3) the continuation of RRM for two more years but without the rate of return true-up and (4) the filing of a general rate case by Atmos on or before June 1, 2013; and salegahour documentslresolutionsU1)\atmos reso 2010 rrm settlement.doc WHEREAS, the Executive Committee of ATM and its lawyers recommend that Council approve the attached settlement as set forth in Attachment A along with the attached tariffs which are set forth as Attachment B; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set out in the preamble to this resolution are hereby in all things approved and adopted. SECTION 2. The settlement agreement, Attachment A, on balance is in the public interest and is approved. SECTION I The rates contained in the attached tariffs, Attachment B, are just and reasonable and are hereby approved subject to a prudence review of the steel pipe replacement expenditures in the next general rate proceeding. SECTION 4. A copy of this Resolution shall be sent to Mr. David Park, Vice President for Rates and Regulation, Mid-Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel for ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701. SECTION 5. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 6. This Resolution shall become effective immediately from and after its passage. PASSED AND APPROVED this the day of 2010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY av~ ~T Page 2 ATTACHMENT A SETTLEMENT AGREEMENT SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORP. MID-TEX DIVISION AND ATMOS TEXAS MUNICIPALITIES WHEREAS, this settlement agreement is entered into by Atmos Energy Corp's Mid- Tex Division and Atmos Texas Municipalities ("ATM") whose members include the Cities of Austin, Balch Springs, Bandera, Bartlett, Belton, Blooming Grove, Bryan, Cameron, Cedar Park, Clifton, Commerce, Copperas Cove, Corsicana, Denton, Electra, Fredericksburg, Gatesville, Georgetown, Goldthwaite, Granbury, Greenville, Groesbeck, Hamilton, Heath, Henrietta, Hickory Creek, Hico, Hillsboro, Hutto, Kerens, Lampasas, Leander, Lometa, Longview, Mart, Mexia, Olney, Pflugerville, Point, Ranger, Rice, Riesel, Rockdale, Rockport, Rogers, Round Rock, San Angelo, Sanger, Somerville, Star Harbor, Trinidad, Trophy Club, and Whitney; and WHEREAS, on March 15, 2010, Atmos filed with the ATM Cities an application, hereafter referred to as the 2010 RRM filing, to adjust rates pursuant to Rider RRM - Rate Review Mechanism; and WHEREAS, ATM has hired experts and lawyers to analyze the rates proposed by Atmos Energy Corp.'s, Mid-Tex Division ("Atm&' or "Company") in its 2010 RRM filing; and WHEREAS, the Settlement Agreement resolves all issues between Atmos and ATM ("the Signatories") regarding the 2010 RRM filing, which is currently pending before the ATM Cities, in a manner that the Signatories believe is consistent with the public interest, and the Signatories represent diverse interests; and WHEREAS, the Signatories believe that the resolution of the issues raised in the 2010 RRM filing can best be accomplished by each ATM City approving this Settlement Agreement and the rates, terms and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A; NOW, THEREFORE, in consideration of the mutual agreements and covenants established herein, the Signatories, through their undersigned representatives, agree to the following Settlement Terms as a means of fully resolving all issues between the ATM Cities and Atmos involving the 2010 RRM filing: Settlement Terms 1. Upon the execution of this Settlement Agreement, Atmos and the counsel for the ATM cities will recommend that an ordinance or resolution be adopted to approve this Settlement Agreement and implement the rates, terms and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A. (Attachment A to the Ordinance ratifying this Agreement). Said tariffs should allow Atmos an additional, prospective $27 million in annual revenue by implementation of rates shown in the proof of revenues attached as Exhibit B. (Attachment B to the Ordinance ratifying this Agreement). The uniform implementation of gas rates, terms and conditions established by this Settlement Agreement shall be effective for bills rendered on or after October 1, 2010. 2. In an effort to streamline the regulatory review process, Atmos and ATM have agreed to renew the Rate Review Mechanism ("Rider RRM") for a period commencing with the Company's April 1, 2011 filing under this mechanism for the calendar year 2010, effective August 15, 2011, and concluding upon the implementation of new, final rates established pursuant to the general rate case that Atmos will file on or before June 1, 2013. Rider RRM provides for an annual rate adjustment to reflect changes in billing determinants, operating and maintenance expense, depreciation expense, other taxes expense, and revenues as well as changes in capital investment and associated changes in gross revenue related taxes. The revised RRM tariff is included in Exhibit A. 3. Notwithstanding the RRM rate adjustments that will occur pursuant to paragraph 2 of this Settlement Agreement, Atmos and ATM agree that on or before June 1, 2013, Atmos shall file a general, system-wide rate case for the Mid-Tex Division. During the pendency of the general rate case, Atmos and ATM agree that rate adjustments associated with the RRM filing for calendar year 2011 shall be implemented on August 15; 2012, and shall remain in effect until the earlier of either the issuance of a final order by the Railroad Commission of Texas in the general rate case to be filed on or before June 1, 2013, or the entry of an agreed upon order resolving all issues involved in the general rate case. The adjustments made or requested in the 5~h year RRM shall not be considered precedent during the general rate case. 4. Atmos and ATM further agree that for the period commencing March 1, 2010 through September 30, 2012, Atmos will expand its existing steel service line replacement program to complete the replacement of 100,000 steel service lines within its Mid-Tex Division during this period. Atmos and ATM agree that a risk-based approach should be adopted to allow replacement of the highest priority steel service lines within this time period. Atmos agrees to provide the ATM cities with quarterly reports providing the number and location of the lines replaced during the quarter. Atrnos agrees to coordinate with ATM member cities to minimize disruption to cities' rights of way without compromising the safety of residents of the cities. 5. Atmos and ATM agree that costs incurred to replace steel service lines prior to October 1, 20 10 shall be included in the RRM rate adjustment calculation for the 2010 calendar year, and shall not be subject to or included in the rate cap limitations set forth in subsection IV (a)-(b) of the Rider RRM tariff. 6. Atmos and ATM agree that the projected incremental direct costs incurred to replace steel service lines on or after October 1, 2010 shall be separately identified and shall not be subject to or included in the rate cap limitations set forth in subsection IV (a)- (b) of the Rider RRM tariff. Atmos and ATM further agree that such projected direct incremental costs incurred to replace steel service lines after October 1, 2010, shall be separately calculated and recovered as a discrete component of customer charges in the Company's annual RRM filings as set forth below: a. Atmos and ATM agree that Atmos shall be entitled to separately adjust rates for the Rate Effective Period as defined in the Rider RRM tariff to allow recovery of the projected annual revenue requirement associated with direct incremental costs to be incurred in connection with a steel service line replacement program, that are not otherwise included within the RRM cost of service, including a return on equity of 9.0% within the overall weighted cost of capital applied to net 2 investment (net plant additions, less accumulated depreciation and accumulated deferred income taxes), depreciation expense and applicable taxes; b. Atmos and ATM further agree that the capital structure used to calculate the steel service line replacement rate adjustment will be the actual Evaluation Period (as defined in the Rider RRM tariff) ratio of long-term debt and equity, with an equity percentage not to exceed 50%; c. Rate recovery associated with a steel service line replacement program shall occur through an adjustment to the Residential and Commercial customer charges. Current year recovery factors as of October 1, 2010 shall be $0.15 for residential customers and $0.41 for commercial customers. The rates will be adjusted annually, however, Atmos and ATM agree that in no case will the per customer monthly cost recovery factors attributable to a steel service line replacement program exceed $0.44 for residential customers or $1.22 for commercial customers, either prior to or during the pendency of the general rate case Atmos will file on or before June 1, 2013. d. Atmos and ATM further agree that any per customer amount attributable to cost recovery for a steel service line replacement program shall be subject to review by the regulatory authority in a subsequent Evaluation Period as defined in the Rider RRM tariff' and all incremental costs associated with a steel service line replacement program shall be subject to a prudence/reasonableness review in the general rate case to be filed by Atmos on or before June 1, 2013. 7. With respect to the Company's annual RRM filings, Atmos agrees to pay all reasonable and necessary expenses of each entity having original jurisdiction that are incurred to review the Company's annual RRM filings. Atmos further agrees that in calculating the proposed rate for any Rate Effective Period, the Company shall not include: (1) any external legal, expert, or consultant costs to prepare and/or provide supportive information related to its filing; or (2) reimbursements to original jurisdiction entities. 8. Notwithstanding paragraph 7 of this Settlement Agreement, Atmos and ATM agree that in the event of an appeal of an original jurisdiction entity's decision regarding a proposed RRM adjustment, recovery of rate case expenses shall be determined according to Chapters 103 and 104, Tex. UTIL. Corm ANN. Further, in the event of such appeal(s), Atmos shall recover any reimbursement made to the original jurisdiction entity through a surcharge to all customer rates that are subject to the Commission's jurisdiction in that proceeding or proceedings that might be joined therewith, regardless of whether such reimbursements are made during the initial review period or appeal period. 9. The ATM Cities agree that they will not challenge the legal basis of the rates, terms, and conditions reflected in Exhibit A, or any annual RRM adjustment that is implemented pursuant to Rider RRM. 10. Atmos and the ATM Cities further agree that the express terms of the Rider RRM are supplemental to the filing, notice, regulatory review, or appellate procedural process of the ratemaking provisions of Chapter 104 of the Texas Utilities Code. If the statute requires a mandatory action on behalf of the municipal regulatory authority or Atmos, the parties will follow the provisions of such statute. If the statute allows discretion on behalf of the municipal regulatory authority, the ATM Cities agree that they shall exercise such discretion in such a way as to implement the provisions of the RRM tariff If Atmos appeals an action or inaction of an ATM City regarding an RRM fling to the Railroad Commission, the ATM Cities agree that they will not oppose the implementation of interim rates or advocate the imposition of a bona by Atmos consistent with the RRM tariff. Atmos agrees that it will matte no filings on behalf of its Mid-Tex division under the provisions of Tpx. UTIL. CODE ANN. § 104.301 while the Rider RRM is in place. In the event that a regulatory authority fails to act or enters an adverse decision regarding the proposed annual RRM adjustment, the Railroad Commission of Texas shall, pursuant to the provisions of the Texas Utilities Code, have exclusive appellate jurisdiction to review the action or inaction of the regulatory authority exercising exclusive original jurisdiction over the RRM request. In addition, the Signatories agree that this Settlement Agreement shall not be construed as a waiver of the ATM Cities' right to initiate a show cause proceeding or the Company's right to file a Statement of Intent under the provisions of the Texas Utilities Code. 11. Atmos and ATM further agree that the ordinance or resolution adopting this Settlement Agreement shall include a provision authorizing Atmos to establish regulatory asset account(s) for costs related to working gas in storage. Atmos and ATM further agree that the language authorizing these regulatory asset account(s) shall be the same as that set forth in the 46' Ordering Paragraph (Page 10 of 11) of the Final Order Nurtc Pro Tune issued by Railroad Commission of Texas in GUD No. 9869 on February 23, 2010. This language states as follows: IT IS FURTHER ORDERED that Atmos shall be allowed to establish a regulatory asset for the ad valorem taxes related to working gas in storage. In addition, Atmos shall be allowed to establish a regulatory asset for (1) the costs associated with Accumulated Deferred Income Tax for UNICAP Section 263A, (2) the WACOG to FIFO change, and (3) an amount equal to the rate of return approved in this RRM Proceeding for the Accumulated Deferred Income Tax items related to working gas in storage. Atmos shall record these amounts in Other Regulatory Assets (Account 182.3). These deferred items shall be considered, along with the investment in working gas, for consideration and possible inclusion in rates for Atmos Pipeline-Texas in that entity's next filed rate case. If the Commission determines that such deferred items are not properly included in the rates of Atmos Pipeline - Texas, the items shall be further deferred until the next Atmos Mid-Tex rate case filed after the final decision in the Atmos Pipeline-Texas rate case for inclusion with the working gas investment in the Atmos Mid-Tex rates. 12. Atmos and ATM agree that each ATM city should approve this Settlement Agreement and adopt an ordinance or resolution to implement for the ATM Cities the rates, terms, and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A, as well as the regulatory asset authorization language discussed in paragraph 12 of this Settlement Agreement. 4 13. The Signatories agree that the terms of the Settlement Agreement are interdependent and indivisible, and that if any ATM city enters an order that is inconsistent with this Settlement Agreement, then any Signatory may withdraw without being deemed to have waived any procedural right or to have taken any substantive position on any fact or issue by virtue of that Signatory's entry into the Settlement Agreement or its subsequent withdrawal. If any ATM city rejects this Settlement Agreement, then this Settlement Agreement shall be void ab initio and counsel for the ATM Cities shall thereafter only take such actions as are in accordance with the Texas Disciplinary Rules of Professional Conduct. 14. The Signatories agree that all negotiations, discussions and conferences related to the Settlement Agreement are privileged, inadmissible, and not relevant to prove any issues associated with Atmos' 2010 RRM filing. 15. The Signatories agree that neither this Settlement Agreement nor any oral or written statements made during the course of settlement negotiations may be used for any purpose other than as necessary to support the entry by the ATM Cities of an ordinance or resolution implementing this Settlement Agreement. 16. The Signatories agree that this Settlement Agreement is binding on each Signatory only for the purpose of settling the issues set forth herein and for no other purposes, and, except to the extent the Settlement Agreement governs a Signatory's rights and obligations for future periods, this Settlement Agreement shall not be binding or precedential upon a Signatory outside this proceeding. 17. The Signatories agree that this Settlement Agreement may be executed in multiple counterparts and may be filed with facsimile signatures. 5 1~ Agreed to this2 day of August 2010, ATTORNEY FOR ATMOS TEXAS MUNICIPALITIES, WHOSE MEMBERS INCLUDE THE CITIES OF AUSTIN, BALCH SPRINGS, BANDERA, BARTLETT, BELTON, BLOOMING GROVE, BRYAN, CAMERON, CEDAR PARK, CLIFTON, COMMERCE, COPPERAS COVE, CORSICANA, DENTON, ELECTRA, FREDERICKSBURG, GATESVILLE, GEORGETOWN, GOLDTHWAITE, GRANBURY, GREENVILLE, GROESBECK, HAMILTON, HEATH, HENRIETTA, HICKORY CREEK, RICO, HILLSBORO, HUTTO, KERENS, LAMPASAS, LEANDER, LOMETA, LONGVIEW, MART, MEXIA, OLNEY, PFLUGERVILLE, POINT, RANGER, RICE, RIESEL, ROCKDALE, ROCKPORT, ROGERS, ROUND ROCK, SAN ANGELO, SANGER, SOMERVILLE, STAR HARBOR, TRINIDAD, TROPHY CLUB, AND WHITNEY A Boyle * Subject to approval by ATM City Councils 7 Agreed to this a day of August, 2010. ATMOS ENERGY CORP., MID-TEX DIVISION B ` y Jo A. Paris Pmsiden#, Mid-Tex Division ATTACHMENT B TARIFFS ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: I R - RESIDENTIAL SALES APPLICABLE TO: l All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 10101/2010 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed blow: Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX, Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff far Gas Service. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: C - COMMERCIAL SALES APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: Bibs Rendered on or after 10101/2010 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Customer Charge per Bill Commodity Charge - All Mcf $13.91 per month $ 1.0798 per Mcf Gas Cost Recovery: plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service, ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: 1 I - INDUSTRIAL SALES APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 1010112010 Application Applicable to Industrial Customers with a maximum dally usage (MDU) of less than 3,500 MMStu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customers monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Gas Cost Recovery. Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable riders Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey," I, ATMOS ENERGY CORPORATION MID-1"EX DIVISION RATE SCHEDULE: ' I - INDUSTRIAL SALES APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 1010112010 Replacement Index in the event the "midpoint" or "common" price for the Katy point listed in Pfatts Gas Daily in the table entitled "daily Price Survey' is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas Industry and most closely approximating the applicable index. Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: I T -TRANSPORTATION APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 90101/2010 Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customers facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customers bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part (b) of Rider GCR. Rate Review Mechanism: Pius or Minus an amount for rates as calculated in accordance with Rider RRM. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable riders Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE; I T - TRANSPORTATION APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 1010112010 Monthly Imbalance Fees Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii} 150% of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Dally in the table entitled "Daily Price Survey' during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities for the month. Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platfs Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER: I WNA - WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: I All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 10101/2010 Provisions for Adjustment The base rate per Mcf (1,000,ooo Btu) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount Is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Mcf by the following formula: WNAFi - Ri (HSFi x (NDD-ADD) ) (BLi + (HSFi x ADD) ) Where i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAF1 - Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Mcf Ri - base rate of temperature sensitive sales for the ith schedule or classification approved by the entity exercising original jurisdiction. HSFi = heat sensitive factor for the ith schedule or classification calculated as the slope of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. NDD - billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD - billing cycle actual heating degree days, Bli = base load sales for the ith schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNAi = WNAF; x qq ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER: WNA - WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: Bills Rendered on or after 10101/2010 Where q;j is the relevant sales quantity for the jth customer in ith rate schedule Filings with Entities Exercisin Oti inal Jurisdiction As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer bills, with customer information deleted, for each rate schedule or classification to which the WNA was applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA application, such data will be provided by the Company as part of the annual RRM filing. If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be filed with the entities exercising original jurisdiction shall be filed on March 1 of each year. Base se/Heat Use Factors Residential Commercial ar Statio Base use Heat use Base use Heat use n Abilene Mcf 1 06 Mcf/HDD Mcf Mcf/HDD Austin . 1.17 .0131 .0138 9.03 19 39 .0588 Dallas 1.49 .0191 . 20.37 .0674 0872 Waco 1.13 .0137 1'1.81 . 0610 Wichita Faflc 1.19 .0136 11.21 . .0549 Sample WNA_F~ Calculation: .3352 per Mcf 2.5246 x (.0131 x (30-17) ) = Where (1.06 + (.0131 x 17) ) i - Residential Single Block Rate Schedule Ri - 2.25246 per MCF HSFI - .0131 (Residential - Abilene Area) Bli NOD - 30 HOD (Simple ten-year average of Actual HOD for Abilene Area W- 9115108 -10114106) ADD - 17 HDD (Actual HOD for Abilene Area - 9115/06 -1 0114106) 1.06 Mcf (Residential -Abilene Area) ATMOS ENERGY CORPORATION MID TEX DIVISION RIDER: RRM - RATE REVIEW MECHANISM APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: Bills Rendered on or after 1010112010 _7 I. Purpose: This mechanism is designed to provide annual earnings transparency. All rate calculations under this tariff shelf be made on a system wide basis. If, through the implementation of the provisions of this mechanism, it is determined that rates should be decreased or increased, then rates will be adjusted accordingly in the manner set forth herein. The rate adjustments implemented under this mechanism will reflect annual changes In the Company's cost of service and rate base. This Rider RRM will be effective for the period commencing with the Company's RRM filing on April 1, 2011, and concluding with the implementation of new, final rates established pursuant to the general rate case that Atmos will file on or before June 1, 2013. II. Definitions a) The Annual Evaluation Date shall be the date the Company will make its annual filing under this mechanism. The Annual Evaluation Date shall be no later than April 1, of each year. This filing shall be effective in electronic form where practicable. b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid- Tex operating area and shared services operations. Audited Financial Data shall not require the schedules and information provided under this tariff to undergo a separate financial audit by an outside auditing firm similar to the Company's annual financial audit. c) The Evaluation Period Is defined as the twelve month period ending December 31, of each calendar year. d) The Rate Effective Period is defined as the later of the twelve month period for which rates determined under this mechanism will be in effect or subsequent rates are implemented. e) Per Connection Basis is defined as the existing average number of Mid-Tex active meters to customers during the Evaluation Period, f) Final Order is defined as the most recent order establishing the Company's latest effective rates for the area in which the mechanism is implemented, and shall include municipal rate ordinances and resolutions. Ill. Rate Review Mechanism The Company shall file with each regulatory authority having original jurisdiction over the Company's rates the schedules specified below for the Evaluation period, with tithe filing to be made by the Annual Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the Company's Audited Financial Data, as adjusted, and provided in the same format as Atmos' RRM filing with municipalities on March 15, 2010, will exclude a true-up computation, but will include the following: a) Evaluation Period ending balances for actual gross plant in service, accumulated depreciation, accumulated deferred income taxes, inventory, working capital, and other rate base components will be used for the calculation of rates for the Rate Effective Period. The ratemaking treatments, principles, findings and adjustments included in the Final Order will apply. Regulatory adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash working capital will be calculated using the lead/lag days approved in the Final Order. Accumulated deferred income taxes (ADIT) will be calculated using the methodology used in the Final Order. The RRM Schedules & Information section of this tariff identifies those ADIT components to be included in the calculation of rate base for both the Evaluation Period and Rate Effective Period calculations. ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER: { RRM - RATE REVIEW MECHANISM APPLICABLE TO: I All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: ~ Bills Rendered on or after 1010112010 b) Depreciation rates booked in the period will be those approved in the Final Order, or the rate most recently approved. All calculation methodologies will be those approved in the Final Order except where noted or included in this tariff, or in the most recent order addressing the methodology. In addition, the Company shall exclude from operating and maintenance expense the discretionary costs to be disallowed from Rider RRM dings listed in the RRM Schedules and Information section of this tariff. c) Return on Equity (ROE) shall be maintained at 9.7%, d) Cost, of debt will reflect actual cost for the Evaluation Period. Evaluation Period ending balances for cost of debt and capital structure will be used for the calculation of rates for the Rate Effective Period. Capital structure will be the actual Evaluation Period ratio of long-term debt and equity, with percentage equity not to exceed 50%, based on the calculation methodology outcomes used above, e) All applicable accounting adjustments along with all supporting work papers. Such adjustments may include: 1) Pro-forma adjustments to update and annualize costs and revenue billing determinants for the Rate Effective Period. 2) Pro-forma or other adjustments required to properly account for atypical, unusual, or nonrecurring events recorded during the Evaluation Period. f) Shared Services allocation factors shall be recalculated each year based on the latest component factors used during the Evaluation Period, but the methodology used will be that approved in the Final Order. g) Any changes to corporate structure or allocation of common costs will include narrative explanations with the fling. IV. Calculation of Rate Adjustment a) The Company shall provide additional schedules indicating the following revenue deficiency/sufficiency calculations using the methodology accepted in the f=inal Order with the exception of any allowance for a true-up component in the April 1, 2011 or the April 1, 2012 RRM filings. Evaluation Period ending balances will be used for the calculation of rates for the Rate Effective Period. These schedules shall identify the rate adjustments necessary for the setting of prospective rates for the Rate Effective Period. The result shall be reflected in the proposed new rates to be established for the Rate Effective Period. In calculating the required rate adjustments, such adjustments will be made pro-ratably to the customer charge and usage charge based upon actual revenue generated, as adjusted under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided, however, that neither the Residential nor the Commercial customer charges may increase more than 20% per year. b) The Company may also adjust rates for the Rate Effective Period to include recovery of any known and measurable changes to operating and maintenance costs including, but not limited to, payroll and compensation expense, benefit expense, pension expense, insurance costs, materials and supplies, bad debt costs, medical expense, transportation and building and lease costs for the Rate Effective Period. Provided, however, that adjustments may only be made for costs that are reasonable and necessary. Additionally, utility plant and rate base for the Rate ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER: I RRM - RATE REVIEW MECHANISM APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 10/0112010 Effective Period will be established by using the Evaluation Period ending balances, including associated changes in depreciation and amortization expense and taxes. In calculating the Company's known and measurable changes for prospective RRM adjustment purposes, the following limitations will apply, on a Per Connection Basis. Operating and Maintenance expenses per connection for the Rate Effective Period cannot increase more than 5% per year without specific identification and justification. Any proposed adjustment above 5% per year, is subject to the provisions of the Evaluation Procedures of this tariff, Such procedures provide that the regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work collaboratively to seek agreement on the proposed adjustments to the Company's schedules and proposed rates. Justification for such expenditures over the cap shall include an event or combination of events beyond the control of the Company. The beginning adjusted Operation and Maintenance expense per connection for the 2007 RRM Evaluation Period will be limited to not exceed $151 million divided by the connections for the period. The increase in adjusted Operation and Maintenance expenses per connection for the 2008 Rate Effective Period and the subsequent Rate Effective periods cannot exceed 5% per year, without specific identification and justification Net plant investment per connection for the Rate Effective Period cannot increase more than 5% per year without specific identification and justification. Any proposed adjustment above 5% per year, is subject to the provisions of the Evaluation procedures of this tariff. Such procedures provide that the regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work collaboratively to seek agreement on the proposed adjustments to the Company's schedules and proposed rates. However, in performing a cap test to verify compliance, the Company shall exclude any changes in net plant investment associated with federal, state, or local mandates related to safety, compliance, or road moves, including steel service line replacement program costs incurred prior to October 1, 2010. The initial 2008 rate will be set using net plant limited to not exceed [$1,243,807,208 divided by average active meters for the 12 months ended June 30 2007] times 1,025 times the average active meters for calendar year 2007. Subsequent tiling calculations of net plant investment will be made using the same method used in the Company's September 20, 2007 Statement of Intent except that Evaluation Period ending balances will be used for net plant in the calculation of rates for the Rate Effective Period. The rate increase limitations set forth in this tariff shall not preclude the Company from recovering any excluded net plant costs during a subsequent Evaluation Period in which the 5% limitation for net plant investment is not reached or in a subsequent Statement of Intent case. To the extent that the Company seeks to recover any excluded net plant costs during a subsequent Evaluation Period in which the 5% limitation for net plant investment is not reached or in a subsequent Statement of Intent case, the Company shall identify these costs as a specific line item in the schedule accompanying the RRM rate adjustment filing. The regulatory authority may disallow any net plant investment that is not shown to be prudently incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions of this tariff shall constitute a finding that such net plant investment was prudently incurred. Such finding of prudence shall not be subject to further review in a subsequent Evaluation Period or Statement of Intent filing. ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER. I RRM RATE REVIEW MECHANISM APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 10107!2010 C) Notwithstanding the limitations in subparts IV (a) through (b) of this tariff, the Company shall be entitled to separately adjust rates for the Rate Effective Period to include recovery for direct incremental costs associated with a steel service line replacement program incurred on and after October 1, 2010, a return on equity of 9.0% for such incremental costs as capitalized, depreciation, and applicable taxes. Capital structure will be the actual Evaluation Period ratio of long-term debt and equity, with percentage equity not to exceed 50%, based on the calculation methodology outcomes used above. Rate recovery associated with a steel service line replacement program shall be recovered through the Residential and Commercial customer charges and shall not be subject to or included in the rate increase limitations set forth in IV (a) through (b) of this tariff. Current year recovery factors are presumed to be $0.15 for residential customers and $0.41 for commercial customers. The rates will be adjusted annually, however, in no case will the per customer monthly cost recovery factors attributable to a steel service line replacement program exceed $0.44 for residential customers or $1.22 for commercial customers, prior to or during the pendency of the Company's next Statement of Intent case. Moreover, the per customer amount attributable to cost recovery for a steel service line replacement program shall be subject to review by the regulatory authority in a subsequent Evaluation Period and all costs associated with a steel service line replacement program will be subject to a prudence/reasonableness review in the Company's next Statement of Intent rate case. d) The Company shall provide a schedule demonstrating the "proof of revenues" relied upon to calculate the proposed rate for the Rate Effective Period. The proposed rates shall conform as closely as is practicable to the revenue allocation principles approved in the Final Order. V Attestation A sworn statement shall be filed by the Company's Chief Officer in Charge of Mid-Tex Operations affirming that the filed schedules are in compliance with the provisions of this mechanism and are true and correct to the best of his/her knowledge, information and belief. No testimony shall be filed, but a brief narrative explanation shall be provided of any changes to corporate structure or allocation of common costs. VI. Evaluation Procedures The regulatory authority having original jurisdiction over the Company's rates shall have no less than ninety (90) days to review the Company's filed schedules and work papers, The Company will be prepared to provide all supplemental information as may be requested to ensure adequate review by the relevant regulatory authority. The Company shall not unilaterally impose any limits upon the provision of supplemental information and such information shall be provided within ten (10) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the schedules into compliance with the above provisions. During and following the ninety (90) day review period and a thirty (30) day response period, the Company and the regulatory authority will work collaboratively and seek agreement on, the proposed adjustments to the Company's schedule and proposed rates. If agreement has been reached by the Company and the regulatory authority, the regulatory authority shall authorize an increase or decrease to the Company's rates so as to achieve the revenue levels indicated for the Rate Effective Period. If, at the end of the thirty (30) day response period, the Company and the regulatory authority have not reached agreement on the proposed adjustments, the Company shall have the right to appeal the regulatory authority's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeal, the Company shall have the right to implement the proposed RRM rate adjustment, including the adjustment attributable to steel service line replacement program costs, subject to refund. ATMOS ENERGY CORPORATION MID-TEX DIVISION RIDER: I RRM RATE REVIEW MECHANISM APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: I Bills Rendered on or after 1010112010 Rates established pursuant to the Rate Review Mechanism, if approved as provided herein, shall be effective on August 15 of each year. Vll. _Reconsideration and Appeal Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under Sections 102.001(b) and 103,021, et seq., of the Texas Utilities Code (Vernon 2007), VIII. Notice Notice of the annual Rate Review Mechanism filing shall be provided pursuant to Section 104,103, Tsx. UTIL. CooE ANN. no later than forty-five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following information: a) a description of the proposed revision of rates and schedules; b) the effect the proposed revision of rates is expected to have on the rates applicable to each customer class and on an average bill for each affected customer; c) the service area or areas in which the proposed rate adjustment would apply; d) the date the proposed rate adjustment was filed with the regulatory authority; and e) the Company's address, telephone number and website where information concerning the proposed rate adjustment may be obtained. IX. REM Schedules and information a. Accumulated Deferred Income Tax "ADIT" Items To Be Re nized in Rate Base The following list identifies those ADIT components to be included in the calculation of rate base for both the Evaluation Period and Rate Effective Period calculations: Mid Tex: Gas Plant in Service Insurance Accruals Benefit Accruals Deferred Expense Projects Allowance for Doubtful Accounts Customer Advances UNICAP Section 263A Costs (which shall be removed from Atmos Mid-Tex when these costs are transferred to Atmos Pipeline Texas) Regulatory Asset - Mid Tex Regulatory Liability - Mid-Tex Other Plant SSU - Customer Support: Gas Plant in Service ATMOs ENERGY CORPORATION MID-TEX DIVISION RIDER: RRM - RATE REVIEW MECHANISM APPLICABLE TO: All Cities except the City of Dallas and all unincorporated areas EFFECTIVE DATE: Bills Rendered on or after 10/011201o SSU - General Office: Gas Plant in Service Insurance Accruals Benefits Accruals Deferred Expense Projects Prepaid Expenses Regulatory Liability - Atmos 109 FAS 115 Adjustment Treasury Lock Adjustment Revenue Agent Report Carryforward Adjustments 1990-1985 Tax Net Operating Loss Credit Carryforwards State Bonus Depreciation R & D Credit Valuation Allowance Other Plant b. Discretionary Cos„ to Be,Disailowed from Rider RRM filir~crs The following types of employee reimbursed expenses and directly incurred costs are to be removed from all expense and rate base amounts included within Rider RRM finings for the Evaluation Period and for the Rate Effective Period. Amounts incurred for travel, meals or entertainment of employee spouses. Amounts for air travel that exceed published commercial coach air fares. Amounts incurred for hotel rooms exceeding $250 per night inclusive of taxes and fees assessed on such rooms. Amounts for alcoholic beverages. Amounts paid for admission to entertainment, sports, art or cultural events, and all event sponsorship costs. Amounts for social club dues or fees. ATTACHMENT C PROOF OF REVENUES AND AVERAGE BILL COMPARISONS ATMOS ENERGY CORP., MID-TEX DIVISION AVERAGE BILL COMPARISON- OCTOBER 1, 2010 TEST YEAR ENDING DECEMBER 31, 2009 lane 9 RaytsjzAg 2 Customercharge 3 Consumption charge 4 RiderGCR Part A 6 Rider GCR Part s 6 7 Subtotal 8 Mdar FF & Rltler TAx 9 Total 10 11 Customer chargs 12 CoriSumplion Charge - 13 Rider GCRPan A 14 Rltler OCR Part B 13 16 SublMad 17 Revenue-related Tax Raimbueenimm 18 Total 19 20 21 Ra~3A:.Lw 22 Caslomercharge _ 23 Consumption clutge 24 Rider GCR Part A 2$ Rider GCR Part B 26 27 - 28 Subtotal 29 Reverw-related Tax Relmburaement 30 Total 31 32 Cusiamercherge 33 Consumption charge 34 Rider OCRPart A 36 Rider GCR Part 8 36 37 subtotal 38 Revenue-related Tax Relmbursement 39 Toted 40 41 Rate 1 Q SAV MMBTU 42 Cuetomaroharge 43 Consur pion charge 44 Correump5ondrarge 45 Comumplion charge 46 Rider OCR Part A 47 Rider GOP Part 8 48 49 Subtotal 50 Revenua-related Tax Reirabursemant 51 Toni 52 53 Customer charge 54 Consump6oncharga 55 Consumption charge 58 Consumption charge 57 Rider GGRPart A 58 Rider OCR Part g 59 Subtotal 60 Revenue-relaed Tax Relmpursement .61 TOW 62 83 R ata Z~ 8467 MfiRBTU :64 Custmer charge as Consumption charge 86 Consumption charge 67 Consumptionchage .68 RiderGCR Part 8 69 70 suuotal 71 Revenuwok tad Tax Reimbursemamt 72 Teal :73 74 Cuslormrcharge .75 Consumption glargs .76 Consumption charge 77 Consumpdoncharge 78 Rider GCR Part a 79 Subtotal 90 Revenug•relaM Tax Reurtbursem®M 8t Total OCTOMR 1, 20t0 CURRENT PROPOMM CHANGE S 7,00 4.5 MOF X $22707 10.31 4.5 MCF X $4.6303 = 25.03 4.5 MCP X $0.6611 = 3.00 $ 41.34 541.34 X 0.07477 = 3.08 844,43 4,5 MCP X $25246 a $7.15 11 46 4,5 MCF X 94$303 . 21 03 4.5 MCF X $09611 . 310D $42.84 X 0.07477 = $42.84 3.19 $45.63 $1.40 3.15% CURRENT PROPOSED CHANGE 813.50 34.2 MCF X $0.9877 - 33.82 34.2 MCF X $4.6303 - 158.57 34.2 MCF X $0.5542 15.98 $224.87 8224.87 X 0.07477 - 16.81 $241.69 34.2 MCF X $9.0796 - $13.91 07 $6 341 MCP X $4,6303 = . 156 57 342 MCF X SR5542 - . 18,96 $228.43 X 0.07477 - 5228.43 17.08 -V4551 $3.02 1.50% CURRENT PROPOSED CHANGE $425,00 1.500 MMBTU X $0.2563 387.45 1.$57 MMBTU X $0.1884 = 368.60 0 MM67U X $00404 0.00 3,457 MMBTU X $4.6303 16,006.67 3,457 MMBTU X $0.3062 10558,42 $18246.23 $18,248,23 X 0.07477 x - - _ 11364.20 - $19,610.43 1,5 MMBTU X $0.2750 m 5460.00 41251 1,857 MMBTU X $0,2015 39431 0 MMBTU X $0.0433 = 000 3,467 MMBTU X $4.6303 = 1600367 3.467 MMBTU X $0.3062 a #.058.42 $18,321.81 X 0.07477 318,321.91 6 879,891.77 $81.34 0.41% CURRENT PROPOSED CHANGE $A 1,500 MMBTU X 50.2383 S W.45 387 1,957 MMBTU X - $0.10M a 366,E 0 MMISTu X $0.0404 = 0100 3,457 MMBTU X $0,3062 = 1,WA2 $2239.56 $2,239.513 X 0,07477 = 167.44 $2,407.00 #,500 MMBTU X 90 2750 = $450.0.0 825.00 1,957 MMBTU X . $0 2015 = 412,51 $25.06 0 MMBTU X . $0 0433 = 394.31 525.82 3,457 MMBTU X . 90,3002 0.00 1.058.42 $2,315.24 X 0.07477 = $2,315.24 173.10 „ $2.488,34 $81,34 3.38% ATMOS ENERGY CORP,, MID-TEX DIVISION SUMMARY OF CURRENT AND PROPOSED RATE STRUCTURE TEST YEAR ENDING DECEMBER 31, 2009 (2010 RRM SETTLEMENT INCL ST SVCS RECOVERY) Line Proposed (Beginning No. aescri tion Current Oct 1 Billing Units (a) (b) (d) 1 Rate R 2 Customer Charge per month $7.00 $7.15 17 287 740 3 , , 4 Consumption Charge per MCF $2.2647 $2.5246 5 2008 RRM True-up per MCF $0.0000 $0.0000 6 2009 RRM True-up per MCF 0.0060 0.0000 7 Total Consumption Charge per MCF $2.2707 $2.5246 78 500 000 8 Rate C , , 9 Customer Charge per month $13.50 $13.91 1 445 436 10 , , 11 Consumption Charge per MCF $0,9825 $1.0796: 12 2008 RRM True-up per MCF $0.0000 $0.0000 13 2009 RRM True-up per MCF 0.0052 .0000 14 Total Consumption Charge per MCF $0.9877 $1.0796 49 500 000 15 Rate I & T , , 16 Customer Charge per month $425.00 $460.00 10 985 17 , -18 Consumption Charge per MMBTU: 19 First 1,600 MMBTU $0.2496 $0.2750 20 Next 3,500 MMBTU $0.1820 $0.2015 21 Over 5,000 MMBTU $0.0390 $0.0433 22 2008 RRM True-up per MMBTU: 23 First 1,500 MM BTU $0.0087 $0.0000 24 Next 3,500 MMBTU $0.0064 $0.0000 25 Over 51000 MMBTU $0.0014 $0.0000 26 20D9 RRM True-up per MMBTU: 27 First 1,500 MMBTU $0.0000 $0.0000 28 Next 3,500 MMBTU $0.0000 $0.0000 29 Over 5,DOO MMBTU $0.0000 0.0000 30 Total Consumption Charge per MMBTU 31 32 First 1,500 MMBTU Next 3 500 MMBTU $0.2583 $0 1884 $02750 10,597,655 33 , Over 5,000 MMBTU . $O.D404 $02015 $0.0433 10,791,216 16,585,623 ATMOS ENERGY CORP., MID-TEX DIVISION CUSTOMER IMPACT OF PROPOSED RATES COMPARED TO CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2009 (2010 RRM SETTLEMENT PROPOSAL Line Prospective No. Description Rate Increase (a) (b) 1 Rate R 2 Consumption Charge per MCF 3 Change from Current Rate $0,253$ 4 Billing Units for Specified Period 78,500,000 5 Total Change in Base Revenue $19,934,212 6 Associated Revenue Taxes $1,490,401 7 Total Rate Impact $21,424,613 8 Number of Bills for Specified Period 17,287,740 9 Average Impact per Bill $1.24 10 Rate C 11 Consumption Charge per MCF 12 Change from Current Rate $0.0919 13 Billing Units for Specified period 49,500 000 14 Total Change In Base Revenue $4,547,060 15 Associated Revenue Taxes MUM 16 Total Rate Impact $4,887,026 17 Number of Bills for Specified Period 1,445,436 18 Average Impact per Sill $3.38 19 Rates I&T - Customer Charge 20 Customer Charge 21 Change from Current Rate $25.00 22 Billing Units for Specified Period 10,985 23 Total Change In Base Revenue $274,625 24 Associated Revenue Taxes 12Q_533 25 Total Rate impact $295,157.61 26 Rates I&T- 1st block 27 Consumption Charge per MCF 28 Change from Current Rate $0.0167 29 Billing Units for Specified Period 10,597,655 30 Total Change in Base Revenue $177,031 31 Associated Revenue Taxes 13236 32 Total Rate Impact $190,266 33 Rates I&T - 2nd block 34 Consumption charge per MCF 35 Change from Current Rate $0.0131 36 Billing Units for Specified Period 10,791,216 37 Total Change in Base Revenue $141,297 38 Associated Revenue Taxes 110,564 39 Total Rate Impact $151,862 40 Rates I&T - 3rd block 41 Consumption Charge per MCF 42 Change from Current Rate $0.0029 43 Billing Units for Specified period 16,585,623 44 Total Change in Base Revenue $47,655 45 Associated Revenue Taxes n5 63 46 Total Rate Impact _ $51,218 47 Rates I&T - Total 48 Total Rate Impact $688,504 49 Number of Bills for Specified Period 10,98,5 50 Average Impact per SIII $62.68 51 52 Total Change in Base Revenue $26,121,880 53 Total Rate Impact (Inc_ Rev. Taxes) $27,000,142 ATmOS ENERGY CORP., MID-TEX DIVISION CUSTOMER IMPACT of PROPOSED RATES COMPARED TO CURRENT RATES (STEEL SERVICE REPLACEMENT PROGRAM) Line No. Descri on Prospective (a) Rate Increase 1 Rate R (b) 2 Monthly Customer Charge 3 Change from Current Rate $015 4 Billing Units for Specified Period 17 287 740 6 Total Change In Base Revenue , , $2,593 161 6 Assoclated Revenue Taxes , $193 88P 7 Total Rate Impact , $2 787 041 8 Number of Bills for Specified Period , , 17 287 740 9 Average impact per Bill , , $0 16 10 Rate c . 11 Monthly Customer Charge 12 Change from current Rate $0 41 13 Billing Units for Specified Period . 1 446 436 14 Total Change in Base Revenue , , $592 629 15 Associated Revenue Taxes , 14L308 16 Total Rate impact $636 937 17 Number of Bills for Specified Period , 1,445 436 18 Average Impact per Bill , $0 44 19 . 20 Total Change in Base Revenue $3 185 790 21 Total Rate Impact (inc. Rev. Taxes) , , $3 423 979 22 , , 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT - Metro PCS (MO-0002) Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a Specific Use Permit to allow changes to an existing elevation and site plan for a telecommunications tower located within a Neighborhood Residential 4 (NR-4) zoning and use district on approximately 7.908 acres. The property is located at the southwest corner of Audra Lane and Lattimore Street and is more commonly known as Lot 1, Block 1 of the Faith Tabernacle Assembly of God Addition; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (510-0002). The Planning and Zoning Commission recommends approval of this request (5-0). BACKGROUND In 2007, the City Council approved a Specific Use Permit (SUP) to allow a telecommunication tower at the subject site. The approved SUP site plan restricted the height of the tower to 85 feet, controlled the tower's location and appearance, and regulated the number and location of parking spaces associated with the telecommunication use. The subject tower qualifies as an Alternative Mounting Stricture (AMS) in the Denton Development Code since the telecommunications equipment in the tower is camouflaged by a stricture that resembles a church bell tower with a cross at the top. The applicant desires to alter the appearance of the tower stricture and the location of associated parking and telecommunication equipment to accommodate six (6) additional Metro PC S antennae. The applicant desires the total height of the tower to remain at 85 feet; however, the cross located at the top of the tower will be lowered by 10 feet and mounted to the facade of the steeple. The steeple stricture will then be increased by a corresponding 10 feet from 75 feet back to 85 feet (Exhibit 4) which will result in no net increase in overall height. The bell tower appearance will also remain unchanged. Additional equipment is being added at ground level and two parking spaces are being relocated from the west side of the church building to the northeast side of the building. The City does not have an amendment procedure for Council approved SUPS. Therefore, a new SUP must be approved by Council to replace the existing ordinance, site plan and elevations. 1 PRIOR ACTION/REVIEW 1. S 10-0002 August 25, 2010 P&Z Hearing 2. S06-0011 Existing Specific Use Permit for Telecommunications Tower 3. ADP09-0013 Alternative Development Plan for Faith Tabernacle Assembly of God 4. FP09-0020 Final Plat Faith Tabernacle Assembly of God 5. PP09-0016 Preliminary Plat Faith Tabernacle Assembly of God OPTIONS 1. Approve as submitted. 2. Approve with conditions 3. Deny 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends APPROVAL of this request, as conditioned (5-0). The Development Review Committee recommends APPROVAL of this Specific Use Permit request, as conditioned. EXHIBITS 1. Site Location/Aerial Map 2. Zoning Map 3. Future Land Use Map 4. Site Plan, Tower Elevation and Equipment Storage 5. Site Photos 6. Letter from the Applicant 7. Responses from Property Owners within 200 feet 8. August 25, 2010 P&Z Meeting Minutes 9. Ordinance Prepared by: Respectfully submitted: D~uC Erica Marohnic, AICP Senior Planner Mark Cunningham, AICP, CPM Planning and Development Division Director 2 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: August 25, 2010 TYPE: Specific Use Permit CC Date: September 21, 2010 PROJECT SIO-0002 Project Number: 510-0002 Request: Specific Use Permit (SUP) to allow for changes to an elevation and site plan for an existing telecommunications tower located within a Neighborhood Residential 4 (NR-4) zoning and use district on approximately 7.908 acres. Applicant: Metro PCS 6501 Windcrest Parkway, Suite 150 Plano, Texas 75024 Property Owner: Location: Size: Zoning Designation: Future Land Use: Case Planner: P&Z Recommendation: DRC Recommendation: Summary of Analysis: Faith Tabernacle Assembly of God PO Box 1521 Denton, Texas 76202 Southwest corner of the intersection of Audra Lane and Lattimore Street (1101 Audra Lane). 7.908 acres Neighborhood Residential 4 (NR-4) Existing Land Use Erica Marohnic, AICP The Planning and Zoning Commission recommends APPROVAL of this request, as conditioned (5-0). The Development Review Committee recommends APPROVAL of this specific use permit request, as conditioned. In 2007, the City Council approved an SUP to allow a telecommunication tower at the subject site via Ord. No. 2007-267. The approved SUP site plan restricted the height of the tower to 85 feet, controlled the tower's location and appearance, and regulated the number and location of parking spaces associated with the telecommunication use. The subject tower qualifies as an Alternative Mounting Stricture (AMS) in the Denton Development Code since the telecommunications equipment in the tower is camouflaged by a stricture that resembles a church bell tower with a cross at the top. DRC Findings/Recommendation Page 1 of 18 9 14 '010 6:45:29 AM Case#: SIO-0002 The applicant desires to alter the appearance of the tower structure and the location of associated parking and telecommunication equipment to accommodate six (6) additional Metro PCS antennae. The applicant desires the total height of the tower to remain at 85 feet; however, the cross located at the top of the tower will be lowered by 10 feet and mounted to the facade of the steeple. The steeple stricture will then be increased by a corresponding 10 feet from 75 feet back to 85 feet (Exhibit 4) which will result in no net increase in overall height. The bell tower appearance will also remain unchanged. Additional equipment is being added at ground level and two parking spaces are being relocated from the west side of the church building to the northeast side. The City does not have an amendment procedure for Council approved SUPS. Therefore, a new SUP must be approved by Council to replace the existing ordinance, site plan and elevations. Subchapter 12 of the Denton Development Code (DDC) requires a 3 to 1 distance to height ratio for telecommunication towers from a single family residential use. For the subject tower, the requirement limits the maximum height at this location to 85 feet. A radius of 260 feet from the tower is shown on Exhibit 4 to clearly identify the 3 to 1 distance to height ratio by a dashed circle. Additional equipment is anticipated at ground level, outside the tower which will occupy approximately 218 square feet or two parking spaces. The removal of two parking spaces to accommodate the additional equipment will be balanced by the addition of two new parking spaces to the existing row northwest of the existing church (See Exhibit 4). The subject site contains the Faith Tabernacle Assembly of God church campus. The property was recently approved for an Alternative Development Plan (ADP09-0013), Preliminary Plat (PP09-0016) and Final Plat (FP09-0020). The existing church is currently under constriction for a 13,072 square foot expansion (Exhibit 5). Twenty-five public notices were sent to residents within 200 feet of the area (Exhibit 7). The applicant has not held a neighborhood meeting for the proposed changes to the existing tower. As of this writing, staff has received one response to the Notice of Public Hearing from property owners; one opposed to the request. Findings of Fact 1. The request is for a Specific Use Permit (YUP) for proposed changes to an existing 85 foot telecommunications tower on approximately 7.908 acres. The tower is located in a Neighborhood Residential 4 (NR-4) zoning district. 2. An SUP for an alternative mounting structure for a telecommunications tower was approved for the subject site in 2007 (,506-0011; Ord No. 2007-267). Since then an ADP (ADP09-0013), preliminarv (PP09-0016) and final (FP09-0020) plats were approved for the site in early 2010. 3. The subject property is developed and platted 4. The sisNect site is frith n the Existing Land (Ae future land isse categoly ichich includes existing residential rises and neir infill compatibility. Nell' develops??ent should respond to existing development with compatible land uses patterns and design standards. The DRC Findings/Recommendation Page 2 of 18 9 14 '010 6:45:29 AM Case#: 510-0002 plan recommends that existing neighborhoods irithin the city be vigorously protected and preserved Housing that is compatible with the existing density, neighborhood service and commercial land uses is alloired 5. The NR-4 zoning district is frith n the Neighborhood Residential group of zoning districts whose intent is to preserve and protect existing neighborhoods to ensure that any new development is compatible with the existing land uses, patterns and design standards. This district has seven zoning districts irithin its land use categoiy. These include Neighborhood Residential I (NR-1), Neighborhood Residential 2 (NR-2), Neighborhood Residential 3 (NR-3), Neighborhood Residential 4 (NR-4), Neighborhood Residential 6 (NR-6), Neighborhood Residential Mixed Use 12 (NRM(J--12) and Neighborhood Residential Mixed Use (NRM(J. 6. Adjacent zoning districts include Neighborhood Residential 4 (NR-4), to the west, south, and east; Neighborhood Residential 6 (NR-6) is to the north of the subject site. 7. The surrounding area is developed to the west, south and east. Propertv to the north is undeveloped There is a retirement comununity to the irest, single faiu lv hoive and school to the south and single family homes to the east. 8. The subject site is not located within any special overlay districts or areas of concern. 9. There are no planned public improvements for potable water, sanitary sewer, drainage or transportation facilities serving the subject site in relation to this request. 10. Audra Lane is classified as a Secondarv Major Arterial per the City's Mobility Plan which requires 110 feet of right-of--w av. 11. Lattimore Drive is classified as a Residential Avenue Collector per the City's Mobility Plan irhich requires 65 feet of right-firav. 12. While irater and seller is available along Audra Lane and Lattimore Drive, neither is required for the changes anticipated for the telecommunications tower. Development Review Committee The Planning and Zoning Commission recommends APPROVAL of this request, as conditioned (5-0). Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that with the recommended conditions the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. The Development Review Committee recommends APPROVAL of this specific use permit request, as conditioned: 1. This Specific Use Permit shall only be for the proposed 85 foot tall alternative mounting stricture for a telecommunications tower as shown and described in Exhibit 4: Site Plan, Tower Elevation and Equipment Storage. DRC Findings/Recommendation Page 3 of 18 9 14 '010 6:45:29 AM Case#: 510-0002 2. The proposed expansion for ground level e removal to two parking spaces shall result in the spaces to the northwest of the church facility as Plan, Tower Elevation and Equipment Storage. GENERAL NOTES quipment storage of 218 sq. ft. and constriction of two additional parking shown and described in Exhibit 4: Site NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application revieir process, irhich are on file frith the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Section 35.6.4, Approval Criteria: A Specific Use Permit (SUP) may be granted if the City Council finds that the proposed use conforms, or can be made to conform through the imposition of conditions, with the following approval criteria. An SUP shall be issued only if all of the following conditions have been met: 1. That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; The continued operation of the telecommunications toirer should not diminish or impair property values in the immediate vicinity as the toirer has been present since 2007 irithin a church campus that is under expansion. Other non-residential uses are present in the area. 2. That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; The subject toirer has been designed as an Alternative Mounting Structure ichich resembles a steeple so as not to interfere frith surrounding uses. Improvements for the subject property will be in cooperation with the ongoing expansion of the Faith Tabernacle Assembly of God campus. 3. That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; All required infrastructure dedications, extensions and construction irere required at platting for the church campuus. 4. The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; DRC Findings/Recommendation Page 4 of 18 9 14 '010 6:45:29 AM Case#: S10-0002 All proposed driveways and parking spaces will be required to meet the requirements of the City of Denton at the time of construction or site plan review. 5. That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, hones, dust, noise and vibration; Adequate nuisance prevention measures will be taken at the time of construction. No odors, dust, noise or vibration will occur after initial construction. 6. That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and Proposed lighting will not adversely affect neighboring properties and will meet the requirements of the DD'. 7. That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. All landscaping and screening requirements per the DDC trill be met unless ivodlfled by an Alternative Development Plan (ADP). Surrounding Zoning Designations and Current Land Use Activity: Northwest: Neighborhood Residential 4 and 6 (NR-4, NR-6); undeveloped propeity North: Neighborhood Residential 6 (NR-6); undeveloped property Northeast: Neighborhood Residential 2. 4 and 6 (NR-2, NR-4& NR-6); undeveloped propeity and single-family homes West: Subject Property: East: Neighborhood Residential 4 and 6 Neighborhood Residential 4 (NR-4); Neighborhood Residential 4 (NR-4); (NR-4, NR-6);- Fairoaks Church, parsonage and Audra Estates, East Oaks Retirement Apartments telecommunications tower Addition Southwest: South: Southeast: Neighborhood Residential 4 (NR-4); Neighborhood Residential 4 (NR-4); Neighborhood Residential 4 (NR-4); Ann Windle School for Young Ann Windle School for Young Audra Estates, East Oaks Children (Denton Independent Children (Denton Independent Addition School District), Audra Estates School District), Audra Estates Nource: ( ity (?f Denton Geographicallgformatior Jysterrr and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: Comprehensive Plan: The subject site is located in the "Existing Land Use" future land use designation. These areas are typically established residential areas, which new development should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service and commercial land uses is allowed. The proposed changes to the tower are consistent with the Denton Plan. DRC Findings/Recommendation Page 5 of 18 9 14 '010 6:45:29 AM Case#: 510-0002 Exhibits: Exhibit 1 Site Location/Aerial Map Exhibit 2 Zoning Map Exhibit 3 Future Land Use Map Exhibit 4 Site Plan, Tower Elevation and Equipment Storage Exhibit 5 Site Photos Exhibit 6 Letter from the Applicant Exhibit 7 Responses from Property Owners within 200 feet Exhibit 8 August 25, 2010 P&Z Meeting Minutes Exhibit 9 Ordinance DRC Findings/Recommendation Page 6 of 18 9 14 '010 6:45:29 AM Case#: 510-0002 Exhibit 1 Site Location/Aerial Map Subject Site f°. k r _ EE n DRC Findings/Recommendation Page 7 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 Exhibit 2 N 1 I T' L E _ Zoning Map NR-2 NR-4 R- DRC Findings/Recommendation Page 8 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 Exhibit 3 Future Land Use Map T rrrr~- T i lid Neighborhood Cent Subject Site IT I I- t. A~AJ I --T stinc Lanc _ T T4 I ~p IT --DRC Findings/Recommendation Page 9 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 v m OSl 311f15 h"^^`"'Jtld 153ilOONIM l099 U x~P ¢ c V' a w 0 i W mQ] - o d ~m m QJJGLU v~p - L~ II II v. II 'I v II ~ c E a W 0 w L Y 3 0 F C. m 's r~ W w J~, g O U g w J ° a. ww O 99 9 .,-oL - OIOZ 'ZL bry b.sp'- O65Mj4\s4J\065Mj4 - LLoZo[\SJdo,-\:ry :off i al ij 0 O W W ~ r W ~ w ~ N N w?? O F~ U N ' o v m v 09l 311fL5 A"^^`"'Jtld 153TlOONIM 1099 U g ffi n C3, U') =mm ailatu m - L~ o 2 2 r o y J p W m rmLL I y O r - a n w v3av 3~3i ,o-,a~ 99 9 .,-oL - OIOZ 'ZL bry b.sp- O65MJ4\s4J\065MJ4 - LLoZo[\SJdo,-\:N :off I al!J Exhibit 5 Site Photos r DRC Findings/Recommendation Page 11 of 18 9 14 '010 6:45:29 AM Case#: S10-0002 ~ L $ k~rlw a,y t - 1; I k P 19 DRC Findings/Recommendation Page 12 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 Exhibit 6 Letter from the Applicant Proposed Narrative July 2, 2010 PlannlirG Dcpartr ent City of Do M an 221 N. Elm Strut Denton, TX 76201 Ch °_3 r, evelopment Review Committee-. f,'l t•ro PIS is proposingto extend the zxlstlr g bell tovver bcafed on the property of O u Faith Tahcrnarlr Asserihl~~ of (juJ property at 1101 Audra Lare_ There Is or existing speok use pcrmitto allow The hell trtr~nrrr°i:j be 85 fee,L Thatspocific use perrnl, is rand r the ordinance Nor 067-257. fho cori ;inn =Wd be from the existing height of 75 Not iu 83 feet in order w ac.cornmodwc acditi n :l ~rt,rasOrMetro PCS. Thu existirr,, cars; that ,Its on top of the Bell tuner will be removed -__r. -rLrnounted flush against the %-v,sii of thc axtcnsi~n. Nic-xo 7CS is alza propv ir-E 1.o expand the existing fenced ground compound by 12 feet by 18 feet to allowfu[ ucfrJitiorlal u0lityoquipmi?n'. for the anterras, The proposed use conforms or can he nr icy ro conform through the imposition o conditions: A. The proposed tovrer extensi❑r ~nr1 compound expansion corfc,rrns v.lth all standards within the z,cning.: irtrict (NR- Q and is in Wo wane nth the DONNA Plan and -ederal, state, nr Incal law. & A sp: clflc use permit should be issued because the folhwing conditions have been met: 1. The extension A the tower and expansion of the gro:.rnd um-i-p and will be compatible vviihi and not injurious to the use and eNcyi-n m ❑f uthrer prvperty nor QnfQantN diminish or impair property val ies %%,ithiri tf,e fin mediate Vcir Q. 2, The establishment of the specifk us pernmit will not impcdethe ncrrrrial and nrdcrly devil pment and improvement of surrounding vacant property. The eking church has cludo"d around the teleserrmunir ations faciht4. 3. Thnt adequate utilities, access roads, dimnage aid other necessary supprrung Yacalies have bc_m proWed for the cxistirg teleccjmr-ur.iLPtions facility uric will also be proydcd for the exparzion_ 4 The edesl'g, lr cajor anr.• arrargemei? of a;l WJet, gn nark parking yaws provides fcrr the safe and cmwer:ient irovement of vAinVar and pedestrian traffic for the Qxls`ir~ ch rrch rind its patrons. DRC Findings/Recommendation Page 13 of 18 2'la.^_ W) 8 :Z NAM Case#: S10-0002 5. The existir knell to,.ver and if., extension will not create ot.',-m ivF odor, fL MUS, J i-t, r)uise c,r vlbrAUcn. Gire4ti❑r :1 IIF,hting of the tovu-r gill be rovidr_ri s❑ as to not disturb or ad:~erscht af`ec: nci~hbCrrir.; pr~rpertlr~; dnd . 7. There ill be an 4. #oc~. rrrasorr}, v,,rill _unstr'..i tc,~ to match the exis-Urg 8 foot r aser,.r,} ~v.j 1 to ersurc, hatmor~ arid r+, rrp tif-ilit'y'~^dlth ed arent prcpcIVr. C. Adequate cap .-city of thy- infrastrua it,re cacti and uvlll by prc,,ide4. o and through the subject pr❑perLy D. The existing s17Pcific U,E' permit and th❑ ne'm spc. the tsr' perltf itfor the ex-enced bell town r arch pooorid cr-,mpoand ,_.rr, coup,)dhio. wit.-i and will not have i:,ri -ci'lerse irrrpact 05 tfIQ -urrGur,d'in~ ~re.a, 1, The tC6-V4r eALrnaor evill not aFncf tl`c scale, bulk, and cD%---rage becauwe the overall hoc k°~t wv I ren,,airr at lcl5 feel 2. There,+ill rot be any ger~raticr of trcf°ic or el ectm on surroundink-, str('ers. 3. The extr=r,,mi of the ~-xi<_tirg k,cT r❑wer arc expanslon of the 7round too!er ~vlll have brir:k tc match th- existing church. a. 71 ere x]l nct eany01❑.rttc air qu.alit+, ircludingthe generation of dust, cdc•r, or other envirorimertal pa€I utarts trcim the teiccor nnunications #acilit4% The ex.pandv-d IjO tcmver nr gro_ind r[rmpo-nd ,vik rot Fcnerate any noise. the liph',in of the cross or-, the i:ell tcv;cer tivih be diri~ct li~htirp as kra mA affect surruurtling n, Lghbors. 6. The development of adjacErt praperties MH not he aiir,cted as the existing with l ahc rna nle 1;;cmbly of (cud is developed around the telec omr,lanications T.,clli:y. 7. No other factors found to be relcvar:t. DRC Findings/Recommendation Page 14 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 Exhibit 7 Responses from Property Owners within 200 feet NOTICE F PUBLIC HEARING 810-0002 The Planning and Zaninrg Commission of the City of oenton will hold a public hearing on Augus: 25, 2894 and ommidr3r making recommerld3.tloll to City COU161, regarding a sp°c~fic rise emit io allow dnnges to the existing elevation and WD Plan for an existing telecommunicationL, tower local&l within a Noighborhaad ResiderltiW 4 (NR4) Zoning and use district on u>PFFraxlmately 7.908 acres. The property is IlDrajed bn the southwest garner of the intersection of Akidra Lane and Lattimore Streat and is mofe cornmanly knovrrr as Lot 1. Roc& 1 of the Falih Tabernar-le Assembly of Gad AdAltlbt, The public ;gearing twill start all 6:80 p.m. in the City CouruA 0fts:nbers of CI#y Digit IDcated at 215 E. Mc1{Inrl-,y Street, Danton, Texas. aer'606* yci, myr] pa p9ily Within bV0 huh d (POO) reef of Me 8ubjgot prop&yty, €trc Planvir?g rarrrf ZC Viaag Corrar?34ssi0n yr Xkr fake da heZir )POW you k)M .')bnrrl U?7 s request and lavik-s you fo a-Vond the Priblfc hearraW. Please, in ardev for your apanion to lea €aken into aooouH. return this Form %,;th your commarta prior to this dale of :he pLlb:ic hearing. (1 h!& ~h no [fly 19ru ibifs yw fron? affending and 1po f e(palfraq fn the pabJd heanr j r.) You may fax It to Me nuinber located attha bottom or mail it to the address belrw or drop It off Ir-porson: plal-kning and Development Department Attn: EriG.RMarohnia, Projeot Mail agor 221 N. Mmn ST Demon, Tmas 76201 These farms are rrsod to caiculati! the percentage of landowners that support orld Oppose the ragiiest. The Coar.misaivn Zs Infnrmed of the percent of responaea in 3utapor•t and in olx sit011 , Flease e1rcle one: ~ [o fw1or of request Neutral to regLAW Apposed to regveat Ramoitis for Opposition; ',w'c al.rea-iv hav❑ are hail blclg. .n t?ii6 131.ock; Wi Flo not need anotM-~r 01,. PLeaoe don't ao it. In my onion this bidg7 is a aYe ooze. igr~~turn: Printed Name" hl!i ~:,1r E'+ I r4xIV R Ma Ding AddFe3s: ~d o a -A-W. T ar aR City, Slate ;~Ip, 7ct;ti,t g T(-M :17or,a NU 79t)21-. Physical Address of Prq)artp within 2:0 . Feet:• yr - CIT'YOFDENTONr TEXAS ,ITY1iP,LIAVEST • DENTON, ERAS 7L201 • °4U„49.$547 • QQMD.54f1-7707 A3),.r,& 6A)1fL-& DRC Findings/Recommendation Page 16 of 18 2'14 ^_010 8 : 45 :29 AM Case#: S10-0002 Exhibit 8 August 25, 2010 P&Z Meeting Minutes PLANNING AND ZONING COMMISSION MINUTE (Summary) August 25, 2010 After determining that a quorum is present, the Planning and Zoning Commission convened in a Work Session on Wednesday, August 25, 2010 in the Council Chamber at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Chairman Walter Eagleton, Commissioners: Brian Bentley, Thom Reece, Jean Schaake, and John Ryan. ABSENT: Commissioner Jay Thomas, Commissioner Patrice Lyke. STAFF: Fred Greene, Mark Cunningham, Jerry Drake, Chuck Russell, Nikole Chew-Jones, Ron Menguita, Erica Marohnic, P. S. Arora, and Nana Appiah. WORK SESSION: Opened by Chairmen Eagleton at 6:19 p.m. 1. Clarification of agenda items listed in the Regular Session agenda for this meeting, and discussion of issues not briefed in the written backup materials. Chairman Eagleton asked for questions or discussion. Commissioner Bentley asked about receiving more information pertaining to Teasley Lane, the turn lanes, and what was to be allowed on Robinson Rd. He requested that when we get to this case tonight, if the project manager would give the prior history of that site and what was approved. Chuck Russell responded that it would not be a problem for the project manager to provide this information during the regular meeting tonight. Chuck Russell stated that Consent Agenda Item 3C (Rosa's Cafe Final Plat) will not be considered tonight. It will be pulled. 2. Receive an update and hold a discussion regarding the items forwarded to City Council by the Planning and Zoning Commission and their outcomes. Chuck Russell presented this item. He gave a brief summary from the City Council Decision Update Table. Chuck Russell discussed any variations from the original P&Z recommendations that were changed the City Council. Chairman Eagleton stated that Item 42 of the regular meeting be stricken. The minutes will not be voted on tonight. Chuck Russell responded that the minutes are not quite ready. They will have to be reviewed by staff prior to distribution. Chuck Russell stated that he will start handing those out two at a time for the commissioner's review. Chairman Eagleton adjourned the work session at 6:26 p.m. 1 Planning and Zoning Commission Minutes August 25, 2010 Page 2 of 6 REGULAR MEETING: Chairman Eagleton convened the regular meeting at 6:40 p.m. 1. PLEDGE OF ALLEGIANCE: The Commissioners and members of the audience recited the Pledge of Allegiance to the U.S. and Texas Flags. 2. APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES: A. June 9, 2010, June 23, 2010 July 14, 2010, July 28, 2010, and August 11, 2010. The approval of minutes will be addressed at the next meeting. 3. CONSENT AGENDA A: Staff recommends approval of the following items because they meet the requirements of the Denton Development Code. Approval of the Consent Agenda includes staff recommendations for approval and authorizes staff to proceed. The Planning and Zoning Commission has reviewed the applications and has had an opportunity to raise questions regarding the items prior to consideration: A. Preliminary Plat of Lots 1, 2, 3 & 4, Block A of the Windsor Oaks Addition. The subject property is approximately 432 acres in size and is generally located 1,020 feet northeast of the intersection of Mingo Road and Loop 288, on the north side of Mingo Road. The property is located within an Employment Center Industrial (EC-1) zoning district. (PP10-0008, Windsor Oaks Addition, Erica Marohnic) B. Preliminary plat of Lot 1 and Lot 2 (Sign Location), Block 1 of the South Loop 288 Addition. The approximately 3.78 acre site is located north of Spencer Road and east of Loop 288. The property is located within the Regional Center Commercial Neighborhood (RCC-N) zoning district. (PP10-0007, Rosa's Cafe, Ron Menguita) C. Final plat of Lot 1 and Lot 2 (Sign Location), Block 1 of the South Loop 288 Addition. The approximately 3.78 acre site is located north of Spencer Road and east of Loop 288. The property is located within the Regional Center Commercial Neighborhood (RCC-N) zoning district. (FP10-0010, Rosa's Cafe, Ron Menguita) D. Final Plat of Lot 1, Block 1 of the QT 912 Addition. The approximately 2.32 acre property is located at the southwest corner of West University Drive (U.S. 380) and I-35E. The property is located within an Industrial Center Employment (IC-E) zoning district. (FP10-0012, QT 4912 Addition, Erica Marohnic) E. Final Plat of Lots IAR & 1BR, Block 1 being a replat of Lots IA & 1B of the Granite Point Addition. The approximately 47.065 acre property is located at the southwest corner of I-35W and Metro Street. The property is located within an Industrial Center General (IC-G) zoning district. (FR10-0009, Granite Point Phase 1, Ron Menguita) 2 Planning and Zoning Commission Minutes August 25, 2010 Page 3 of 6 Item C under the Consent Agenda was not considered tonight. Mover: Commissioner John Ryan motioned to approve Items A, B, D, and E. Seconder: Commissioner Thom Reece On roll call vote: Commissioner John Ryan "aye", Commissioner Brian Bentley "aye", Commissioner Thom Reece "aye", Commissioner Jean Schaake "aye", Chairman Walter Eagleton "aye", and Commissioner Patrice Lyke "aye". Passed: 510 4. PUBLIC HEARINGS: Hold a public hearing and consider making a recommendation to the Denton City Council on the following items: A. Hold a public hearing and consider making a recommendation to City Council regarding a Specific Use Permit to allow changes to the existing elevation and site plan for an existing telecommunications tower located within a Neighborhood Residential 4 (NR-4) zoning and use district on approximately 7.908 acres. The property is located on the southwest corner of the intersection of Audra Lane and Lattimore Street. (S 10- 0002, Metro PC S Audra Lane, Erica Marohnic) Erica Marohnic presented this item. The location of this request is at Faith Tabernacle Assembly of God Church. In 2007, the City Council approved a Specific Use Permit (SUP) to allow a telecommunication tower at this site. The SUP restricted the height of the tower to eight-five (85) feet. The tower is known as an Alternative Mounting Stricture since the tower is actually camouflaged by a stricture that resembles a church bell tower. The applicant, Metro PCS, is requesting to alter the appearance of the tower stricture and the location of associated parking and telecommunication equipment to accommodate six (6) additional antennae's. The height will remain the same, but the cross will be mounted to the facade of the steeple. This reduced the tower by ten (10) feet. The steeple will be increased by ten (10) feet that will allow for the additional antennae's. The relocation of the two (2) parking spaces will be located on the northeast side. Notifications were sent out. Twenty-five (25) 200 feet (Legal Notices) and one hundred eighteen (118) 500 feet (Courtesy Notices) Received one (1) response in opposition. The Development Review Committee recommends approval of this Specific Use Permit with conditions. The applicant, Belinda Dixon was present and she spoke in favor of the request. The public hearing was opened at 6:49 p.m. and closed at 6:50 p.m. Mover: Commissioner Jean Schaake motioned to approve with conditions listed. Planning and Zoning Commission Minutes August 25, 2010 Page 4 of 6 Here are the conditions. 1. This Specific Use Permit shall only be for the proposed 85 foot tall alternative mounting structure for a telecommunications tower as shown and described in Exhibit 4: Site Plan, Tower Elevation and Equipment Storage. 2. The proposed expansion for ground level equipment storage of 218 sq. ft. and removal to two parking spaces shall result in the construction of two additional parking spaces to the northwest of the church facility as shown and described in Exhibit 4: Site Plan, Tower Elevation and Equipment Storage. Seconder: Commissioner John Ryan On roll call vote: Commissioner John Ryan "aye", Commissioner Brian Bentley "aye", Commissioner Thom Reece "aye", Commissioner Jean Schaake "aye", Chairman Walter Eagleton "aye", and Commissioner Patrice Lyke "aye". Passed: 510 B. Hold a public hearing and consider making a recommendation to the City Council regarding a Concept Plan amendment and a Detail Plan amendment (Ordinance No. 2009-302) within the Wheeler Ridge Planned Development District (PD-176). The Concept Plan contains approximately 9.08 acres and the Detail Plan contains approximately 4.05 acres located within the boundaries of the Concept Plan. The subject site is located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road. (PDA10-0003, Wheeler Ridge PD Amendment, Nana Appiah) Nana Appiah presented this item and he gave a brief history of the original Planned Development District (PD-176, Wheeler Ridge). There have been several previous amendments to the Detail and Concept Plan. The applicant is requesting an amendment to Ordinance 2009-302, specifically to amend condition of approval number four (4) to allow the development of a gasoline station (7- Eleven), which would require access onto the western-most access onto Robinson Road without providing the traffic counts of ten thousand (10,000). Condition number four(4) of Ordinance 2009-302 states the western-most access from Robinson Road shall be prohibited until the City Engineer verifies that the total traffic count exceeds ten thousand (10,000) trips per day for the entire 9.08 acre site. Staff has reviewed this request and determined that it is not consistent. Notifications were sent out. Fifty-four (54) 200 feet (Legal Notices) and Ninety-eight (98) 500 feet (Courtesy Notices) Received three (3) responses in opposition. The Development Review Committee recommends denial of this request. The applicant, James Massey, representing 7-Eleven was present and spoke in favor of the request. The public hearing was opened at 7:25 p.m. 4 Planning and Zoning Commission Minutes August 25, 2010 Page 5 of 6 Various citizens spoke. The public hearing was closed at 7:48 p.m. Mover: Commissioner John Ryan motioned to approve this request with changes. Here are the modifications requested by the commission. The commission would like to recommend to the council to approve this driveway request without the 10,000 vehicle traffic count requirement and replace this requirement with the requirement of a signal light at the intersection of Teasley and Robinson Road. Seconder: Commissioner Jean Schaake On roll call vote: Commissioner John Ryan "aye", Commissioner Brian Bentley "aye", Commissioner Thom Reece "aye", Commissioner Jean Schaake "aye", Chairman Walter Eagleton "aye", and Commissioner Patrice Lyke "aye". Passed: 510 C. Hold a public hearing and consider making a recommendation to City Council regarding a Detailed Plan to allow a 35,953 square foot gasoline station on property located within the Wheeler Ridge Planned Development District (PD-176). The gasoline station is comprised of a 3,087 retail building, a fuel station with four dispensers, and two underground storage tanks. The subject site is located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road. (Z10-0006, Wheeler Ridge 7-11 Convenience Store, Nana Appiah) Nana Appiah presented this item and he discussed the history of Planned Development District (PD-176, Wheeler Ridge) and the various amendments and conditions of approval. The applicant, 7-Eleven Convenience Store, is requesting to amend the Detail Plan to allow a convenience store with four (4) fuel dispensers and two underground storage tanks. The Detail Plan shows the square footage, parking requirements, the elevation of the retail building, and the two proposed access points onto the site. Due to the conditions of approval of Ordinance 2009-302 condition number four that states, the western-most access from Robinson Road shall be prohibited until the City Engineer verifies that the total traffic count exceeds ten thousand (10,000) trips per day for the entire 9.08 acre site, the applicant will not be allowed the requested access point onto Robinson. The original Ordinance 1999-367 does allow for commercial development of this commercial tract. Notifications were sent out. Fifty-four (54) 200 feet (Legal Notices) and Ninety-eight (98) 500 feet (Courtesy Notices) Received four (4) responses in opposition. The Development Review Committee recommends approval of this request with conditions. 5 Planning and Zoning Commission Minutes August 25, 2010 Page 6 of 6 DRC Conditions: 1. All original conditions of approval and subsequent modifications associated with PD- 176 shall remain valid, unless specified herein. 2. Uses within this development shall be limited to those permitted within the Commercial (C) zoning district approved within PD 176. 3. The proposed access onto Robinson Road shall be allowed contingent upon the approval of amendments to Ordinance 2009-303 to allow access onto the western-most access without providing the required traffic count of ten thousand (10,000) trips per day for the proposed uses within the 9.08 Concept Plan to the City Engineer. 4. The applicant shall submit a new site plan showing elimination of the proposed access, as currently shown on the Detail Plan, onto Robinson Road to the Development Review Committee for review and approval if the request to amend Ordinance 2009- 303 is denied by the City Council. The applicant, James Massey, representing 7-Eleven Convenience Stores was present and spoke in favor. The public hearing was opened at 8:10 p.m. The public hearing was closed at 8:11 p.m. Mover: Commissioner Thom Reece motioned to approve based on the Concept Plan(PDAIO- 0003) approval by the City Council, show the right in and right out island on the third entrance off Robinson Street and the driveway will not come before the 10,000 trips, or a signal light, and allow for corrections on the square footage of the building. Seconder: Commissioner Jean Schaake On roll call vote: Commissioner John Ryan "aye", Commissioner Brian Bentley "aye", Commissioner Thom Reece "aye", Commissioner Jean Schaake "aye", Chairman Walter Eagleton "aye", and Commissioner Patrice Lyke "aye". Passed: 510 5. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. 6. ADJOURNMENT: Chairmen Eagleton adjourned the meeting at 8:15 p.m. 6 Exhibit 9 Ordinance salegallour documentslordinances1101s I "002.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, GRANTING A SPECIFIC USE PERMIT FOR CHANGES TO AN ALTERNATIVE MOUNTING STRUCTURE TELECOMMUNICATIONS TOWER ON APPROXIMATELY 7.908 ACRES OF LAND WITHIN A NEIGHBORHOOD RESIDENTIAL 4 (NR-4) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION, GENERALLY LOCATED AT THE SOUTHWEST CORNER OF LATTIMIORE STREET AND AUDRA LANE WITHIN THE JONATHAN BROCK SURVEY, WITHIN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (S 10-0002) WHEREAS, Metro PCS, has applied for a Specific Use Permit to allow changes to an alternative mounting structure telecommunications tower on approximately 7.908 acres of land within a Neighborhood Residential 4 (NR-4) zoning classification and use designation legally described in Exhibit "A", attached hereto and incorporated herein by reference (hereinafter, the "Property"); and WHEREAS, on August 25, 2010, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval of the requested Specific Use Permit; and WHEREAS, the City Council finds that the request is consistent with the Denton Plan and the Development Code, specifically finding that the requirements of §§35.12.8 and 35.6.4 are satisfied by the proposal when conditioned by the Site Plan, attached as Exhibit "B"; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference as true. SECTION 2. A Specific Use Permit to allow an alternative mounting structure telecommunications tower on the Property is hereby approved, subject to the following conditions: 1. This Specific Use Permit shall only be for the proposed 85 foot tall alternative mounting structure for a telecommunications tower as shown and described in Exhibit 4: Site Plan, Tower Elevation and Equipment Storage. 2. The proposed expansion for ground level equipment storage of 218 sq. ft. and removal of two parking spaces shall result in the construction of two additional parking spaces to the northwest of the church facility as shown and described in Exhibit 4: Site Plan, Tower Elevation and Equipment Storage. SECTION 3. The Specific Use Permit Sit Plan attached hereto and incorporated herein as Exhibit "B", is hereby approved, as an additional condition of the permit. sAegallour documentslordinances1101s10-0002.doc SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provision of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding 52,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 2010• MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY salegahour documentslordinances1101s10-0002.doc EXHIBIT A LEGAL DESCRIPTION BEING a 7.908 acre tract, and being all that certa'ir lot, tract or parcel of land situated in the Jonathan Brock Survey, City of Denton, Denton County, Texas, and being all of a called 7.64 acre tract described in a deed from Ali Hasson Al-Khafaji to Terry C1. Johnson, L. G. Sanders, A. 0. Burchett, Ben Lynch and Donald Elkins, Trustees of Faith Tabernacle Assembly of God Church cs recorded in Volume 639, page 714, Denton County Deed Records, and all of a called 0.4666 acre tract deser'L,ed it a Quitclaim Deed-Bid #2218 from City of Denton to f=aith Tabernacle Asser-,c Y, of God Church, and being more particularly described as foflows: BEE tNG from ca 1 /2 inch iron rod found at the southwest corner of said 7.64 acre tric-t, for a corner; THENCE N 00'00'00" E along the westernmost west line of said 7.64 acre tract, continuing along the west line of sari 0.4666 acre tract a total distance of 499.30 feet to a 1/2 inch iron rod found at the northwest carrier of said 0.4666 acre tract, on the south line of Lattimore Street, for a corner THENCE S 90'00'00" E along the nort-s line of said 0.4666 acre tract and the south line of said Lattimore Street ra distance of 145.20 feet to a 1/2 inch iron rod found at the northeast corner of said 0.4+=`:iE acre tract, on the easternmost west line of said 7.64 acre tract, for a corner; THENCE N 00'00'00" E along the easternmost west line of said 7.64 acre tract a distance of 103.00 feet to a 1/2 inch irons rod found at art eriy most northwest corner of said 7.64 acre tract, o the south line of said Lattimore Street, for a corner; THENCE S 90'00'00" E along the northernmost north line of said 7.64 acre tract and the south line of said Lattimore Street a distance of 645.20 feet to a point at the northeast corner of said 7.64 acre tract, and at the intersection of the south lime of said Lattimore Street and the west lime of Audro Lane, for a corner; THENCE S 23°35'23" W along the east line of said 7.64 acre tract and the west lime of said Audro Lane a distance of 555.74 feet to a 1/2 inch iron rod found at the southeast carrier of said 7.64 acre tract, for a corner; -7NCE N 90'007'00" 'W along the south line of said 7.64 acre tract a distance of 568.CC feet to the POINT O BFUNNING and containing 7,9018 acres of land, also being known as 1101 A : Lane, Denton, Texas 76202_ Exhibit B Fee I- KAMI PCS\IC V - oFw590\c0a\oFw5ao 'm a$° avn~~ ti~as 7m, S bN m y o~ Z ~S 1 0 1 z, J~ i o~ W N n ~ o y ~ o K S ~ K w M N O N 1 00 I [G O ~ m I m i ~ f m ~ - 3 35 \ -Y w9A'il!'r Wx ~z XG IS C- NYC R ME 9 Q 1 ~lN~-am'"'3 F <~Q ;s4 n m o o2jww ~popAo ti 1 o-nZn y~nn~ dor~ _ ~vm K'1 ' r..: „ym~y . , f4 „yM ~e h'y o yo 1: s i ~ 1 e..rr+w' } I' F 1 i' a ~ I~ O 1 ~I ~I it JI ~ X44 i I xoRIN - N I - _ _ s....~ ...,..~e ~ .m. ..ec man rnri en M[ inFOdxibX CCMNXFA x rt rs FCABiCAEN NMON ME xmnEr Ffl NLCk [F ME GiR[X. T PCS O " IIMUV ~ c n c'wn s " M TNNK=' µ z Z ~ 5501 WIROCRESE PARKWAY, SLUE 150 TX 75024 PMO N N W. m p $ g ( 5 m . N N 8 ~ wag-.~_- ~A`s= any 1 sgH ooh og'mc WGI utooa s~ Q a A A b O n m 0 A m a n C 7 i4 ,C. is x3 a B ~ ~ ~ N ga 0 D " PCS A ao~m » ~ o am ro m m w Cm zm ° -ttj~~~anm $$Kn a Z ~ &50t wiao PLANO IX a noz 75xr,4 SURE 150 w+o H N m m $ g ~ V+ , avvv~ N F b R 5 This page left blank intentionally . AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Utility Administration ACM: Howard Martin, 349-8232 *1--- SUBJECT Consider approval of a resolution of the City of Denton, Texas, authorizing the Mayor to execute and deliver correspondence and other documentation to Oncor Electric Delivery Company LLC ("Oncor") and the Public Utility Commission of the State of Texas regarding the proposed electric transmission line contemplated to be constricted by Oncor together with the transmission line's potential location within, over, across or in the vicinity of the City of Denton, Texas; and providing an effective date. BACKGROUND Oncor has proposed a 345 kV transmission line from Krim West to Anna. The proposed transmission line is needed for Oncor Electric Delivery Company LLC (Oncor) to ensure continued safe and reliable electric service to the state in light of increased integration of electric energy generated by wind production facilities. The proposed transmission line is scheduled to be completed in 2013. Based on the Texas Legislature's direction in 2005 the (Public Utility Commission of Texas) PUCT has designated certain areas, or zones, of Texas for development of wind power, known as Competitive Renewable Energy Zones (CREZ). The PUCT has approved a plan for building transmission lines to deliver the electric energy produced by wind generating facilities in the CREZ to the electric market. This proposed project is one such project associated with CREZ. On September 8th 2010, Oncor filed an application to amend a certificate of convenience and necessity for a proposed CREZ 345 kV Transmission Line in Collin, Cook, Denton and Grayson Counties, Texas (Krim West - Anna CCN) with the Public Utility Commission of Texas (PUCT). The PUCT identified this application as Docket No. 38597. Information concerning this filing may be obtained by contacting Travis Besier, Oncor Regulatory Project Manager at 214-486-7343 or may be downloaded from the PUCT's website a www.puc.state.tx.us. While the review and approval process by the PUCT may take up to six months, public comment on the proposed transmission line routing should be sent to the PUCT Central Records referencing the Docket No. 38597. The deadline for formal intervention requests must be received by October 8, 2010. The prehearing and technical conference will be held in this Docket on October 12, 2010. Provided in Exhibit 1 is a resolution for Council's consideration regarding the City of Denton formal position on the Oncor transmission line project and any proposed transmission line crossing of the Greenbelt and/or United States Army Corps of Engineers (USAGE) property. If approved by the Council, the City's position regarding the Oncor project would be included as an attachment to a letter from the Mayor of the City of Denton (see Exhibit 2) as written public comment to the PUCT. EXHIBITS 1. Resolution 2. Letter Respectfully submitted: `Wt~ 7YU 4~~ Howard Martin ACM/Utilities EXHIBIT 1 RESOLUTION NO. 2010- A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE AND DELIVER CORRESPONDENCE AND OTHER DOCUMENTATION TO ONCOR ELECTRIC DELIVERY COMPANY LLC ("ONCOR") AND THE PUBLIC UTILITY COMMISSION OF THE STATE OF TEXAS REGARDING THE PROPOSED ELECTRIC TRANSMISSION LINE CONTEMPLATED TO BE CONSTRUCTED BY ONCOR TOGETHER WITH THE TRANSMISSION LINE'S POTENTIAL LOCATION WITHIN, OVER, ACROSS OR IN THE VICINITY OF THE CITY OF DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Oncor Electric Delivery Company ("ONCOR") has proposed constriction of a 345 kV electric transmission line from Krim, Texas to Anna, Texas to ensure the safe and reliable electric service to the State of Texas in light of the increased integration of electric energy that is generated by wind production facilities; which proposed transmission lines affect the City of Denton, Texas; and the proposed transmission lines are scheduled to be completed by the year 2013; and WHEREAS, based upon the Texas Legislature's direction expressed in 2005 the Public Utility Commission of Texas ("PUCT") has designated certain areas or zones of Texas for the development of wind power, which are known as Competitive Renewable Energy Zones ("CREZ"); the PUCT has approved a plan for building transmission lines to deliver the electric energy produced by wind generating facilities in the CREZ to the electric market. The project before the City of Denton involves the selection of routes that involves the constriction of the transmission line from Krim to Anna, which is a project that is associated with CREZ; and WHEREAS, there are several routes being currently evaluated by ONCOR that would cross the Greenbelt between Lake Ray Roberts and Lake Lewisville and other U. S. Army Corps of Engineers (USAGE") property; and WHEREAS, ONCOR has filed its PUCT Case, No. 38597 and provided notice of intent to amend its Certificate of Convenience and Necessity for the new 345 kV transmission line to be located in Collin, Cook, Denton and Grayson Counties, Texas, as set forth above the PUDCT will be accepting public comments and intervention requests for the "preferred route" identified in the application submission; and WHEREAS, the Greenbelt Corridor was developed in the late 1980's as an alternative to traditional recreation facilities that were required at Lewisville Lake due to the elevation in flood pool following the constriction of Ray Roberts Lake; the Cities of Dallas and Denton, together with the USACE worked closely to design and constrict the Greenbelt Corridor; the final product is a 1500 acre, nine-million dollar hiking, biking, canoeing and equestrian trail system that parallels the meandering Elm Fork of the Trinity River for fourteen (14) miles, which connects Lake Lewisville to Lake Ray Roberts; and WHEREAS, the Greenbelt Corridor has provided a unique and much needed recreation alternative that protected open space and retained the natural riparian system, which would assure the rural character of the river corridor, and to provide a visual buffer between newly acquired lands along the river, as well as future development; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton opposes any route of the Oncor 345kV CREZ Transmission Line from Krim West to Anna that crosses the Greenbelt Corridor between Lake Ray Roberts and Lake Lewisville. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: EXHIBIT 2 215 E. McKINNEY DENTON, TX 76201 • (940) 349-8230 • FAX (940) 349-8120 UTILITY ADMINISTRATION September 21, 2010 Public Utility Commission of Texas Central Records Attn: Filing Cleric 1701 N. Congress Ave. P.O. Box 13326 Austin, Texas 78711-3326 RE: Docket No. 38597 Application of Oncor Electric Delivery Company LLC. to amend a Certificate of Convenience and Necessity for a proposed CREZ 345 kV Transmission Line in Collin, Cooke, Denton, and Grayson Counties, Texas (Krim West - Anna CCN) The City of Denton is supportive of the proposed Oncor Electric Delivery Company's CREZ 345kV Transmission Line project. We understand that projects like this bring valuable wind power into the Denton, Dallas, and Fort Worth electric load centers. As a municipal electric provider, we understand that these CREZ projects facilitate reliable and cost-effective electric power delivery. The City of Denton staff has attended the public hearing conducted by Oncor and have met with Oncor staff independently to communicate our position regarding the transmission line routing from Krim West to Anna. The primary concerns with this portion of the project are the routing options that would impact the City of Denton, City of Dallas, and the US Army Corp of Engineer's Greenbelt Corridor between Lake Lewisville and Lake Ray Roberts. The City of Denton has invested substantial resources in the development of the Greenbelt Corridor. The Greenbelt Corridor provides a unique and invaluable recreation alternative that not only protects open space, but also retains the natural riparian system. Because of the recreational and ecological importance of the Greenbelt Corridor, the City of Denton opposes any route of the Oncor 345kV Transmission Line from Krim West to Anna that crosses the Greenbelt Corridor between Lake Ray Roberts and Lake Lewisville. On September 21st , 2010, the City Council approved Resolution No. , regarding the proposed Oncor Electric transmission line routing. Please accept this resolution as the City of Denton's public input in the PUCT review and approval process. Your time and attention to this matter is greatly appreciated. Sincerely, Mark Burroughs, Mayor City of Denton Attachments 1. Resolution 4 AGENDA INFORMATION SHEET AGENDA DATE: September 21, 2010 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT Z09-0013 (Bonnie Brae Medical Park) Consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation on tracts 256, 257, 258, 260 and 261 of the E. Puchalski survey, with an overlay district on those same tracts, plus tract 263, containing additional restrictions as noted; the area for the zoning change encompasses approximately 4.678 acres of land located at the northeast corner of North Bonnie Brae Street and West Oak Street, in the City of Denton, Denton County, Texas. The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the seven lots from Neighborhood Residential 3 (NR-4) to Neighborhood Residential Mixed Use (NRMU) subject to overlay conditions, as provided in Exhibit 13 (5-1). A SUPERMAJORITY VOTE OF THE CITY COUNCIL MAY BE REQUIRED FOR APPROVAL, DEPENDING ON THE AREA TO BE INCLUDED IN THE REZONING REQUEST, OR IF THE APPLICANT PROTESTS THE MOTION. BACKGROUND The subject property is comprised of seven (7) separate tracts of land generally located at the northeast corner of North Bonnie Brae Street and West Oak Street. On July 19, 2010, the applicant requested that the tract located at 2286 West Oak Street be removed from their request. The property surrounds an existing single-family parcel fronting Bonnie Brae Street that is not included in this rezoning request. Six (6) of the properties are currently developed with residential uses, and one (1) property (at the corner of Bonnie Brae and West Hickory) operated as a Special Exception retail sales and service, although this stricture is currently unoccupied. The applicant is requesting a zoning change to Neighborhood Residential Mixed Use (NRMU), subject to overlay restrictions. The applicant has stated that the purpose of this rezoning request is to develop the site with medical-related and commercial uses not currently allowed. The applicant held a neighborhood meeting on July 14, 2009 at North Lakes Recreation Center, which was attended by approximately 17 members of the public, as well as staff and the applicant. The residents voiced many concerns related to the impact of the proposed rezoning on the adjacent neighborhood. The concerns included: (1) proximity to a historical district; (2) increased traffic and the impact on traffic if ingress and egress is allowed from Oak Street; (3) lighting impacts; and (4) regulations for architecture and signs that will be compatible with the adjacent historic district. Representatives of the West Oak Neighborhood have submitted an official list of their concerns and opposition to the requested rezoning (Exhibit 16). Subsequent to the first neighborhood meeting, the applicant has acquired additional property that has been incorporated into this request. The applicant has also met with the West Oak Neighborhood Steering Committee. The applicant has scheduled a meeting with the neighborhood for September 15, 2010, and staff will report on that meeting when the public hearing continues. Another neighborhood meeting was held on July 15, 2010, and there were approximately 13 neighbors in attendance (plus 2 staff and 3 applicant representatives). The main proposal presented by the applicant was regarding the allowed uses of the property. Specifically, allowing office use by right on the entire property, and office or commercial uses (also by right) at the corner of West Oak and Bonnie Brae Streets, provided that the use at the corner of the streets not exceed 7,500 gross square feet; all other uses (or larger uses at the corner) would require an SUP. The applicant also solicited input on whether 2286 West Oak should be removed from the request. Several of the attendees were of the opinion that the proposed uses (medical and commercial at the subject corner) were acceptable, provided they were laid out well and adequate landscaping and buffering (a masonry fence versus a stone fence was mentioned, but no consensus reached) were provided. Additionally, there was discussion that having exclusively medical uses would not really provide a service to the neighborhood, and they would prefer to have retail or small caf6/donut shop, etc, type uses included to provide a neighborhood destination for area residents to walk for these service. A public hearing for this case was opened on June 15, 2010, continued until July 20, 2010. The July 20, 2010 public hearing was closed and the item was continued to September 21, 2010 in order to allow the applicant to meet with the neighbors and staff to reach some agreements on the restrictions to be placed on the development of the subject property. The Planning Division sent notices of the public hearing (Exhibit 6) to all residents within 500 feet of the subject property; as of this writing, three (3) responses have been received in opposition of the request, eight (8) property owners have submitted responses in favor of the request, and one (1) has been submitted from property owners that are neutral to the request. The current responses indicate opposition of 11.1% of the owners of the land area within two hundred feet (200') of the property that is the subject of the rezoning request. Therefore, a supermajority vote of the City Council is no longer required if the Planning and Zoning Commission recommendation of approval is accepted. On April 14, 2010, the Planning and Zoning Commission heard the request, and continued the public hearing to April 28, 2010 to allow the applicant to address concerns voiced at the public hearing. The applicant proposed additional overlay restrictions (Exhibit 9) based on the concerns of the neighbors raised at the public hearing, and submitted in writing. Staff has included a number of the revised restrictions in their recommendation. The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the seven (7) lots from Neighborhood Residential 3 (NR-4) to Neighborhood Residential Mixed Use (NRMU) subject to overlay conditions, as provided in Exhibit 13 (5-1). OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. 2 RECOMMENDATION The Development Review Committee recommends denial of this rezoning request, as proposed by the applicant; however, the Committee recommends approval of the rezoning of six (6) of the properties to NRMU (as depicted in Exhibit 12) with a restrictive overlay to prohibit multi- family uses, veterinarian clinics and bakeries, and to prohibit attached single-family dwellings, dwellings above businesses, hotels, semi-public halls, clubs and lodges, and business and trade schools, to limit building heights to 40 feet, as provided in Exhibit 12. Staff also recommends that the existing NR-3 zoning on the lot directly adjacent to the West Oak Area Historic District be maintained as currently zoned. The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the properties to NRMU (as depicted in Exhibit 13) with a restrictive overlay to prohibit multi- family uses, veterinarian clinics and bakeries, attached single-family dwellings, dwellings above businesses, hotels, semi-public halls, clubs and lodges, and business and trade schools, to limit building heights to 40 feet, as outlined in Exhibit 13. EXHIBITS 1. Staff Analysis 2. Location Map 3. Aerial Photograph of Site 4. Future Land Use Map 5. Existing Zoning Map 6. Notification Information 7. Zoning Analysis 8. Original Letter From Applicant 9. Proposed Zoning Map and Overlay Restrictions, as Requested by Applicant Prior to July 19, 2010 10. Proposed Site Plans and Overlay Restrictions, as Requested by Applicant on July 19, 2010 11. Proposed Overlay Restrictions, as Requested by Applicant on August 24, 2010 12. Proposed Zoning Map and Overlay Restrictions, as Suggested by Staff 13. Proposed Zoning Map and Overlay Restrictions, as Recommended by the Planning and Zoning Commission 14. Site Photographs 15. Bonnie-Brae-Ector Street Small Area Plan Action Summary 16. Letter from West Oak Neighborhood Representatives 17. Responses to Public Notification 18. Excerpt from the Minutes from the Planning and Zoning Commission Meeting of April 14, 2010 19. Excerpt from the Minutes from the Planning and Zoning Commission Meeting of April 28, 2010 20. Ordinance Prepared by: Chuck Russell, AICP Interim Planning Manager Respectfully submitted: Mark Cunningham, AICP Director, Planning and Development EXHIBIT 1 PLANNING & DEVELOPMENT STAFFANALYSIS CASE NO.: Z09-0013 DATE TO BE CONSIDERED: September 21, 2010 LOCATION: The subject property is generally located at the northeast corner of North Bonnie Brae Street and West Oak Street. APPLICANT: Spring Brook Planning Group 2405 Mustang Drive Grapevine, TX 76051 OWNER: Berdy Tj andramulia 1900 Sam Bass Denton, TX 76205 REQUEST: Rezone approximately 4.678 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential Mixed Use (NRMU) zoning district. RECOMMENDATION: The Development Review Committee recommends denial of this rezoning request, as proposed by the applicant; however, the Committee recommends approval of the rezoning of six (6) of the properties to NRMU (as depicted in Exhibit 12) with a restrictive overlay to prohibit multi-family uses, veterinarian clinics and bakeries, as offered by the applicant, and to prohibit attached single- family dwellings, dwellings above businesses, hotels, semi-public halls, clubs and lodges, and business and trade schools, to limit building heights to 40 feet, as proposed by the applicant. Staff also recommends that the existing NR-3 zoning on the lot directly adjacent to the West Oak Area Historic District be maintained as currently zoned. The Planning and Zoning Commission recommended approval of the rezoning of six (6) of the properties to NRMU (as depicted in Exhibit 13) with a restrictive overlay to prohibit multi-family uses, veterinarian clinics and bakeries, attached single-family dwellings, dwellings above businesses, hotels, semi-public halls, clubs and lodges, and business and trade schools, to limit building heights to 40 feet, as outlined in Exhibit 13. COMPREHENSIVE Existing Land Use PLAN DESIGNATION: 5 SITE AND SURROUNDINGS: North: NR-3; Single family residential, church and public park South: DC-G, DR-2; Multi-family and single-family residential, undeveloped property East: NR-3; Multi-family and single-family residential, West Oak Area Historic District West: DC-G; Medical and commercial uses, Denton Municipal Electric Substation BACKGROUND The subject property is currently developed with a 580 square foot INFORMATION: commercial building which was most recently used for retail sales, at the corner of West Oak Street and Bonnie Brae Street (2310 W. Oak Street), one (1) undeveloped lot, and five (5) single family residences. The three (3) properties located on West Oak Street are listed in the Denton Historic Resources Inventory. According to the Inventory, which was prepared in 1995, the properties, which are located at 2286, 2300, and 2310 West Oak Street, were all identified as Low Priority properties. The Inventory identifies two (2) of the strictures located at 2286 West Oak and 2300 West Oak as being constricted as residences in 1930 and 1945, respectively, and the property located at 2310 West Oak as being constricted as a Service Station in 1940. The Denton Historic Resources Inventory was prepared for informational purposes, and no ordinances or regulations are in effect which specifically govern any of the properties listed in the Inventory. The Preservation Priorities assigned in the Historic Resources Inventory were based on the Texas Historical Commission and the National Park Service guidelines. Low Priority ratings are indicative that the resource is a more recent common local building form or architectural style and has no known historical associations, and has been severely altered by remodeling or deterioration. The subject property is directly adjacent to the West Oak Area Historic District, which was officially created by adoption of an ordinance in 2008. The West Oak Area Historic District includes a sub-area of the West Oak Neighborhood. ANALYSIS: Comprehensive Plan The property is located in an area with a Future Land Use designation Analysis: of "Existing Land Use/Infill Compatibility". The intent of this Future Land Use designation is described in the Denton Plan: "Within established residential areas, new development should respond to existing development Nvith compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods Nvithin the city be vigorously protected and preserved. Housing that is compatible Nvith the existing density, neighborhood service, and commercial land uses is allowed." 6 The proposed zoning district, Neighborhood Residential Mixed Use (NRMU), and the existing zoning district, Neighborhood Residential 3 (NR-3) are both within the family of the Neighborhood Residential Land Use category. The Neighborhood Residential Land Use category was created to preserve and protect existing neighborhoods and to ensure that any new development is comprised of uses that are compatible with existing land use, patterns and design standards to ensure protection of the existing neighborhood, staff is recommending that the property located at 2286 West Oak be maintained under the current NR-3 zoning designation; as doing so will provide a defined area of commercial zoning parallel to Bonnie Brae Street, while protecting the integrity of the existing residential neighborhood to the east and the West Oak Area Historic District by minimizing further encroachment of non-residential zoning districts into the area that does not accommodate or support single-family residential uses. The Denton Plan states a forum should be developed to address neighborhood quality of life issues, and a staff liaison will provide information and support to neighborhood groups. In 2009, the City created the City of Denton Neighborhood Planning Program (CDNPP). The CDNPP purpose is to partner with Denton's residents in order to revitalize and/or preserve area neighborhoods. During the Spring of 2009, the CDNPP attended a walking tour of the West Oak neighborhood. The walking tour revealed a significant historical inventory, a diversity of housing styles as well as types. The tour also revealed a lack of physical improvements such as sidewalks, and a destabilization trend from homeownership to rental. Due to these factors, the West Oak neighborhood was included in the Planning and Development Department's 2009-2011 Strategic Plan for consideration of a Neighborhood Quality of Life Plan. Even though the proposed request meets the intent of the Denton Plan, the continual encroachment of commercial uses into this neighborhood may intensify this destabilization trend. At the July 20, 2010 City Council meeting, it was requested that staff provide an update on the Bonnie-Brae-Ector Street Small Area Plan. This update has been provided in Exhibit 15 that is included in this report. On August 24, 2010, the applicant sent the revised proposed overlay restrictions in Exhibit 11. The applicant stated that instead of identifying uses (prohibited, permitted and permitted by SUP) separately, they are now referenced in table form. He is also proposing Parks and Open Space and Churches be permitted by right instead of by SUP as conveyed in the current draft ordinance. 7 Finally, the applicant is proposing to restrict retail uses on the property by stating that they are "permitted within 140 feet of W. Oak and limited to no more than 7,500 square feet of gross floor area per use. These uses are permitted greater than 140 feet from W. Oak with approval of an SUP". The attached ordinance (see Exhibit 20) reflects the Planning and Zoning Commission's recommendation for approval with conditions and does not reflect any of the applicant's proposed modifications listed above. This draft ordinance is unchanged from what was presented to the Council on June 15 and July 20, 2010. Development The current zoning designation, Neighborhood Residential 3 (NR-3), Code/Zoning Analysis is primarily a single-family residential zoning district. The requested zoning district, Neighborhood Residential Mixed Use (NRMU), is primarily a commercial zoning district which permits commercial uses at a scale intended to serve a neighborhood area. The applicant is proposing a restrictive overlay to exclude multi-family uses, as well as the two Industrial Uses permitted by right in the NRMU zoning district; bakeries and veterinarian clinics. Within a half-mile radius of the subject property, there are two (2) main Future Land Use Categories; Existing Land Use/Infill Compatibility to the north and east of the subject site, and Downtown University Core to the west and south of the subject site. Within the Existing Land Use/Infill Compatibility Future Land Use area, there are approximately 38.834 acres of undeveloped property zoned NRMU (Exhibit 7) within a half-mile radius; however, this property is almost entirely within the Rayzor Ranch Overlay District, which governs the uses and the design guidelines. The property that is currently zoned NRMU that is not within the Rayzor Ranch Overlay District, was rezoned from NR-3 to NRMU in 2009 (Ordinance 2009- 102). Bonnie Brae Street and West Oak Street are both classified as Secondary Major Arterial roadways. The surrounding area along Bonnie Brae is developed with commercial and medical uses, similar to those proposed for the subject site, in addition to single family uses on the east side of Bonnie Brae Street, north of the subject site. To the west of the subject site is a mixture of small-scale medical offices, long term care facility and hospital-related uses. Oak Street is also developed with medical and commercial uses to the west of the subject site, and single-family, multi-family, and institutional uses (University of North Texas campus) to the east of the subject site. 8 Rezoning a portion of the property to NRMU, as proposed by staff, will likely result in development that is compatible with the surrounding uses, while offering a distinct boundary between existing and proposed commercial uses and the existing residential area and the West Oak Area Historic District directly to the east. If the subject property is rezoned and developed with commercial or medical uses, provisions in the Denton Development Code will assist in creating a transition buffer between the existing single-family residential uses and any new commercial development. Within the proposed zoning district, NRMU, a building setback of at least twenty (20) feet is required in yards that abut single-family uses or zoning districts. If a building is taller than twenty (20) feet, an additional one (1) foot of building setback is required for each additional foot of building height. The rezoning boundaries, as proposed by the applicant, are approximately 370 feet at its widest point, as measured in a west-east direction. If the lot at 2286 West Oak is removed from the property configuration (as recommended by staff), the widest point of the property will then be approximately 275 feet, as measured in a west-east direction. Decreasing the size of the property involved in the rezoning will assist in ensuring that any buildings constricted on the site are in a scale compatible with the surrounding residential uses, and will limit the opportunities for vertical constriction. In addition to the increased building setbacks, a Type C buffer will be required to offer a landscape transition between the residential uses and any new commercial uses. A Type C buffer consists of a fifteen (15) foot wide planted strip along the boundary between the two (2) uses, with a combination of plantings to include six (6) evergreen and deciduous trees and twenty-five (25) shrubs for every one hundred (100) linear feet of the buffer area. The property located at 2286 West Oak provides a well-landscaped area that will offer a further transitional buffer area between the area proposed for rezoning and the existing residential neighborhood to the east. The general regulations of the existing zoning district, Neighborhood Residential 3 (NR-3), and the requested zoning district, Neighborhood Residential Mixed Use (NRMU) are presented in Table 1. The differences between the existing zoning district, NR-3, and the requested zoning district, NRMU, are summarized in Table 2. Uses that do not appear in the Table 2 are regulated in the same manner for both zoning districts. 9 Table 1. Comparison of General Regulations of the NR-3 and NRMU zoning districts: General Regulations Minimum lot area (square feet) 10,000 2,500 Minimum lot width 60 feet 20 feet Minimum lot depth 80 feet 50 feet Minimum front yard setback 15(f2) t None Minimum side yard 6 feet 6 feet Minimum side yard adjacent to a street 10 feet None Minimum rear yard 10 feet None General Regulations Maximum density, dwelling units per acre 3.5 30 Minimum side yard for non-attached 6 feet 12 feet buildings Maximum lot coverage 50% 80% Minimum landscaped area 55% 20% Maximum building height 40 feet 65 feet 10 feet 20 feet plus 1 foot plus 1 foot for each for each Minimum yard when abutting a single- foot of foot of family use or district building building height height above 20 above 20 feet feet 10 Table 2. Comparison of permitted uses between NR-3 and NRMU Zoning Districts. Residential Categories Single Family Dwellings P N Accessory Dwelling Units SUP N Attached Single Family Dwellings SUP L(40) Dwellings Above Businesses N P Live/Work Units N P Group Homes N SUP Multi-Family Dwellings N SUP L(4) Commercial Land Use Categories MCI t0= 111119HALHIM! Hotels N P Bed and Breakfast N P Retail Sales and Service N L(17) Restaurant or Private Club N L(11) Drive-through Facility N SUP Professional Services and Offices N L(17) Quick Vehicle Servicing N SUP Laundry Facilities N P Outdoor Recreation P SUP Administrative or Research Facilities N L(14) Broadcasting of Production Studio N L(14) Industrial Land Use Categories Bakeries N L(21) Veterinary Clinics N P Institutional Land Use Categories 1111119HOM M911"kAdt Community Service N P Semi-public, Halls, Clubs, and Lodges SUP P Business / Trade School N L(14) 11 Adult or Child Day Care SUP P Kindergarten, Elementary School SUP P Middle School N P High School N SUP Elderly Housing N P Medical Centers N P Table Legend: P - Permitted N - Not permitted SUP - Specific Use Permit L(1) = Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4. One additional parking space shall be provided that conforms to the off street parking provisions of this Chapter. 5. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size is equal to or greater than ten acres in size. An SUP is not required for such an accessory residential structure where the lot size is equal to or greater than ten acres. L(4) = Multi-family is permitted only: 1. With a Specific Use Permit: or 2. As part of a Mixed-Use Development or 3. As part of a Master Plan Development Existing; or 4. If the development received zoning approval allowing multi-family use within one year prior to the effective date of Ordinance No. _2005-224: or 5. If allowed by a City Council approved neighborhood (small area) plan. L(11) = Limited to sit down only, and no drive up seivice permitted. Limited to no more than 100 seats and no more than 4,000 square feet of restaurant area. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area. L(17) = Uses are limited to no more than 25,000 square feet of gross floor area per use, except grocery stores may be larger with approval of an SUP. L(21) = Bakery and bottling areas not to exceed 2,500 square feet. Sales on premises of products produced required in this zone. L (40) =Limited to a maximum 12 units per acre. 12 DEPARTMENT AND The Development Review Committee (DRC) has reviewed this AGENCY REVIEW: application, and the applicant has supplied all requested information related to the rezoning request. The DRC Engineering Department has provided the applicant with comments related to site design standards and criteria that must be addressed at the time of platting. FINDINGS: Section 353.4.B of the DDC establishes the general criteria for zoning amendment approval. The criteria are as follow: The proposed rezoning conforms to the Future Land Use element of the Denton Plan. It is staff's determination that the proposed Neighborhood Residential Mixed Use (NRMU) zoning district is consistent with the Future Land Use designation of Existing Land Use as defined in the Denton Plan. Given the surrounding uses and the location of the site at the corner of two (2) Secondary Major Arterial roadways, the proposed rezoning to NRMU would be appropriate for the majority of this site, with the exception of the property located at 2286 West Oak Street. The property located at 2286 West Oak Street is distinctly a significant part of the West Oak residential neighborhood, and it is staffs opinion that including this lot in the rezoning would result in encroachment into an existing, cohesive residential neighborhood. The proposed rezoning facilitates the adequate provision of transportation, water, sewer, schools, parks and other public requirements and public convenience. The provision of adequate public facilities for this proposal was reviewed by the Development Review Committee (DRC) during the review period. DRC Engineering has determined that adequate public facilities exist to serve this development, and has provided the applicant with requirements that must be met at the time of platting of the property. Public improvements that will be required include perimeter street improvements, including the extension of Houston Street to Bonnie Brae Street or the granting of a variance to allow Houston Street to end in a cul-de-sac, as well as drainage improvements, possibly including a detention facility. 13 EXHIBIT 2 LOCATION MAP RIPTURE SUBJECT PROPERTY IGKORY 14 EXHIBIT 3 AERIAL PHOTOGRAPH OF SITE I~ _ ~ ~ rt. ► HLUSTGN 1 I , n w, ` F m " OA K M man Ono= 15 EXHIBIT 4 FUTURE LAND USE MAP 1 NEIGHBORHOOD CENTER SCRIPTURE EXISTING LAND USE/ DOWNTOWN UNIVERSITY CORE o INFILL COMPATIBILITY z m m a HOUSTON Q x g0P OAK OAK ICKORY H n w 16 EXHIBIT 5 EXISTING ZONING MAP RCC-D NR-3 RCC-D SCRIPTURE 03 O Z Z n c DC-G DR-2 OAK DC-G DC-G J R-3 DR-2 HICKORY U) HOUSTON O v DC-G w a 17 EXHIBIT 6 NOTIFICATION INFORMATION Legend Z09-0013 p TE N.0 a 6,ss 200 100 0 200 Feet Dpp.-d 1)VN I ON Public Notification Date: April 4, 2010 200' Legal Notices* sent via Certified Mail: 29 Number of responses to 200' Legal Notice: ■ In Opposition: 3 ■ In Favor: 8 ■ Neutral: 1 * - A copy of the notification list is available at City Hall West, 221 N. Elm Street, Denton, TX 18 EXHIBIT 7 ZONING ANALYSIS Legend Q SITE _ Parcels Quarter Mile Streets Half Mile Z09-0013 800 400 0 ¢N, v 800 Feet W V '"i S I)l-'NTC)N 19 EXHIBIT 8 ORIGINAL LETTER FROM APPLICANT C IS r nn r plc December 4, 2009 Mr. Mark Cunningham, AICP Director of Planning and Development City of Denton 221 N Elm Denton, TX 76201 Re: Rezoning application for 4.678 acres generally located at the northeast corner of Bonnie Brae and W. Oak, commonly referred to as 206, 218, 300 & 310 Bonnie Brae and 2286, 2300 & 2310 W Oak. Dear Mr. Cunningham, Mr. Berdy Tjandramulia is proposing to redevelop the majority of the properties (Exhibit 1 - Maps) for medical offices and the hard corner as commercial. The properties are currently zoned Neighborhood Residential 3 (NR-3) and we would be seeking a rezoning to Neighborhood Residential Mixed Use (NRMU) to allow the office use and to accommodate the anticipated lot coverage (Exhibit 2 - Concept Plan). The properties are not platted. The corner lot contains a vacant commercial building and the other lots are currently residential. PROJECT NARRITIVE: The subject property is currently zoned NR-3 and we are seeking NRMU zoning to accommodate the intended use (medical office and commercial). The current NR-3 zoning does allow office or commercial uses. Exhibit 2 is a land use comparison between the existing and proposed zoning districts. Site History: The properties are not platted. Surrounding land uses and zoning: North: Single-family (NR-3) & Historic Overlay District South: Single-family (DR-2), undeveloped (DC-G) & Multi-family (DR-2) East: Hospital, Assisted Living Facility & Convenient Store (DC-G) West: Single-family (NR-3) Existing Site Conditions: • Single-family & commercial structures • Water service is available via an existing 12" line along Oak and an existing 6" line along Houston St. • Sanitary sewer service is available via an existing 8" line along Oak. • The property is relatively flat with some scattered trees (Pecans) • Access to the properties is currently from Oak & Bonnie Brae (both Secondary Major Arterials) • Six residential structures and one commercial structure currently exist on the property. 2405 Mustang Drive / Grapevine, Texas 76051 1469-955-8580 1817-329-4453 (Fax) 20 Proposed Site Conditions: • No major topography alterations are proposed. • Primary access will be from Oak & Bonnie Brae • Medical offices are proposed on the majority of the site with one commercial structure located on the "hard" corner (with associated site improvements). • The residential structures will continue to be rented until development on those properties is proposed. • No Overlay Restrictions are proposed, HOWEVER, to be consistent with Z09-0008 we would be amenable to the following restrictions: o No Industrial Uses ■ Eliminates Bakeries, Veterinary Clinics and Gas Wells Any residential use would require approval of an SUP ■ Includes Attached Single Family Dwellings, Dwellings Above Businesses, Live Work Units, Group Homes and Multi-family Dwellings. Multi-family Density would be limited to 12 units per acre. ■ NRMU allows up to 30 units per acre, the proposed 12 units per acre is consistent with NRMU-12 • Denton Development Code Analysis: o It is anticipated that the proposed development will meet or exceed the requirements of the DDC. • Denton Plan Analysis: o This development meets or exceeds many of the stated goals and policies found in the Denton Plan including: Growth Management Policies (Page 21): Zoning should be used as originally intended, to address extreme incompatibilities between land uses. Zoning should be used to identify performance standards that allow land uses in defined districts based on their ability to mitigate potential negative impacts on neighboring properties. A reexamination of the use of zoning as a planning tool should be conducted to reflect community values successfully. Page 23: Based upon the additional residential development and the existing land use mix, the city will need to accommodate approximately 3,000 acres of industrial development, 3200 acres of commercial development, and 2,700 acres of institutional development. The plan encourages infill development, restoration and redevelopment within the existing center city and surrounding the universities. Page 37: Existing Residential / Infill Compatibility Within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. Page 2 of 4 21 Page 41: The role of commercial activity in the city is to provide convenient and available retail, service, and office opportunities to residents of the Denton market area. Commercial activity provides return on investment for business and property owners, employment opportunities for local residents, and an economic base for local taxing entities. Commercial activity generally supports community residential activity, but certain aspects of the retail, service, and office uses such as big-box retail, and service and office headquarters may be more regionally oriented and act as basic elements of the economy. Page 42: Primary Commercial Land-Use Principles: Maintaining Balance It is the desire of the residents of Denton to maintain and enhance the balance between residential and commercial land uses and assessed values in Denton. The redevelopment of this property will increase the assessed value Limiting Strip Development One of the overall goals of the land use plan is to limit the amount of strip commercial development along Denton's arterial streets, collectors, and highways. The expansion and redevelopment of Presbyterian Hospital along with the redevelopment of the medical offices along Oak, the rezoning and future development of the south east corner of Oak and Bonnie Brae (Z09-0008) and the rezoning and future redevelopment of this property will create a medical node /activity center. Demanding Quality The quality of development, particularly commercial development along the city's corridors, is a significant factor in the quality of neighborhoods, the urban environment, and the sustainability of structures. Adequate public facilities shall be a criterion by which zoning is granted Although the DDC ensures a minimum level of quality, this development will be competing against new medical offices that have recently been constructed along Oak and Scripture and thus will in all likelihood exceed the standards within the DDC and enhance the image of the area. We believe that medical office use is compatible with the adjacent land uses and appropriate based on the close proximity of the site with Presbyterian Hospital and adjacency to two Secondary Major Arterials. General Criteria for approval 035.3.4.6 DDC) analysis: 1. A complete application and fee shall be submitted. Response: A complete application & fee was submitted. 2. Applications may be approved when the following standards are met: a. The proposed rezoning conforms to the Future Land Use element of The Denton Plan. Response: The proposed NRMU zoning is consistent with the existing land use designation (Existing Neighborhoods 1 Infill Compatibility). Page 3 of 4 22 b. TIiI FIQIi,I-Ir Hu ;Irk `I° Use Permit meets the criteria r; T'-1I-:II Ilu -iiiii I1i,tr' [I and conforr'-13 t ti I- i_ uI E 113se and intent of The Denton Plan. Response: NfA forzoning amendment. c. T'Ir' t li-itJii Ni-I Ir `Viii; II ;IHI- tll I -rr FHII[IIt dtr' tl'- aijt'g I ~JIi1 U` tI~Il III ft~ rl, i1rl r i I II II ['-A 1111i<` i~ 11il,Ll T'i~} ri fir It ~II;J i,JL ILw: cri r Ill:rti r Response: Adequate provisions for public utilities and conveniences exist (see analysis above and PA009-M1 engineering coniments). T erewill be a benefit to the local school district (payment of school tax's but no students to educate) and no impact on parks because this in not a residential development. See Exhibit 3 for l al Description of the property See Exhibit 4 '1 1 il' i I zatian In con, II 11! i"II i Iiat the liInI 1 1 r,iI :i I Iiii I meets thx' 1 ill e "Iton Plan mill is % CC'[ l i„I illy 11 till' WI ii III v J imiillrlljl Nr Ald111!:lill ~i',r' I fi ill IIV :jll.: ittl`_.i J;r_ ti 1 >i ICI, i. i.i'[jI it 1111, D1:11 Itlr' n li',r'. 11 1[ 1] will. Fri' t!t r" rl Hii I t-il lrll_', D rill I,,[, rig I11[ I I Clr_ Its-rl a _1 m'lil al Ir i - . - 71, 11 -iii tilI 1r I 111 11;,1 itllin 1 1 tha II I lily, rind It you have any questions please do not lim if _it r tea LIB It . I;Il®. q' I I, I_I-11'', pru--i E r1, F1I_tlrlnlf a 1'roup cc: e r- t,, TI,-_.- I iral i1li ,~,tt_lrilrtr~ rlt- ~~libt E> li It's IIF' Ji IIF-11,"J Zurl -iir, CIrrrip_nson F Il , t J ~rilie~tr Eprl-n itil-rl C -I1Lit4: L'- tt-I- if ,''utllr1i-trtil_n ",i -1 4 of 4 23 EXHIBIT 9 PROPOSED ZONING MAP AND OVERLAY RESTRICTIONS, AS REQUESTED BY PRIOR TO JULY 19, 2010 RCC-D NR-3 RCC-D SCRIPTURE 53 O Z NR-3 - Q DC-G A m_ HOUSTON p NRIVILI SUBJECT PROPERTY OAK DR-2 DC-G OAK DC-G DR-2 HICKORY V DC-G Lu Q 24 Z09-0013 Proposed Overlay Restrictions: 1. The following Uses shall be prohibited: a. Agricultural b. Livestock c. Attached SF (townhomes) d. Dwellings above Business e. Multi-Family f. Hotels g. Semi Public Halls, Clubs & Lodges h. Business and Trade Schools i. Bakeries j. Veterinary Clinics 2. Building height shall be limited to 40', a typical commercial building of two stories or less. 3. No new structures shall be constructed on 2286 West Oak. Existing structures, like the swimming pool, gazebo and guest house can be removed, repaired or replaced to serve the same function. 4. Commercial and retail structures (not including professional service and office buildings) shall be limited to 7,500 square feet. An SUP is required for additional square footage. 5. An 8' foot high solid screen fence (good side out) constructed with steel post and a decorative cap shall be constructed in the required buffer yard in lieu of the required buffer shrubs. All required buffer trees shall be planted in accordance with the requirements of the Denton Development Code. Within the overall development internal buffering between uses shall not be required. 6. Non-single family access shall be from Bonnie Brae and/or Oak Street. No non- single family access shall be from Houston Street. Houston Place will not be a thru street to Bonnie Brae. 7. The following architectural standards shall be incorporated into any new building: a. Architectural elements such as awnings, extended overhangs, columns or shutters shall be incorporated into the design of buildings. b. All windows shall be double insulated windows with thermal break and no mirrored glass. c. Flat roofs shall not be permitted. The minimum roof pitch shall be 4:12 and the maximum roof pitch shall be 10:12. d. New buildings shall incorporate alternating roof plate heights. e. Shingles (if used) shall be a minimum 30 year architectural style composition shingle. Z09-0013 Overlay Restrictions April 27, 2010 25 EXHIBIT 10 PROPOSED SITE PLANS AND OVERLAY RESTRICTIONS, AS REQUESTED BY APPLICANT ON JULY 19, 2010 4 11 o ;z NOVSTOtd FL. o M I m II wER~aY hxrE Platy 209-0013 Ong roTt. - - TJANDRAMULTA DEVELOPMENT Bonnie Brae / W. Oak St. SITE PLAN SUBMITTED BY APPLICANT 2286 WEST OAK 26 ~n e y b Z w a z z w s - m a m ~ I OVERLAY SITE PLAN Z09- ~D13 rir( Brook TTANDRAMVLIA DEVELOPMENT b ~ Bonnie Brae / W. Oak 5#. I j' J SITE PLAN SUBMITTED BY APPLICANT. 2286 WEST OAK 27 f `l 9, , t July 19, 2010 Ms. Jane Gurney City of Denton 221 N Elm Street Denton, TX 76201 Re: Z09-0013 Overlay Restrictions Dear Ids. Gurney: Below are the revised overlay restrictions we will be presenting to City Council: PROPOSED OVERLAY RESTRICTIONS: 1. The following Uses shall be prohibited: a. Agricultural c. Attached SF (townhomes) e. Dwellings above Business g. Hotels i. Bakeries k. Live Work Units b. Livestock d. Dwellings above Business f. Multi-Family h. Business and Trade Schools j. Veterinary Clinics 2. Professional Services and Office use shall be permitted on the entire property. Retail Sales and Services (limited to 7,500 square feet) shall be a permitted use within 140' of W. Oak, a. Prior to obtaining a building permit for the above uses, a site plan shall be approved by the Planning and Zoning Commission. The site plan shall address: i. The architecture of the structures (as addressed below), ii. Buffering of adjacent single family property iii. Houston Street Access 3. Uses not identified above as prohibited or permitted shall require approval of a Specific Use Permit. 4. Building height shall be limited to 40' and/or two stories. 5. A 6' foot high solid screen fence (good side out) constructed with steel post and a decorative cap shall be constructed in the required buffer yard in lieu of the required buffer shrubs. All required buffer trees shall be planted in accordance with the requirements of the Denton Development Code. 28 Z09-00013 Overlay Restrictions Page 2 of 2 6. Access shall be from Bonnie Brae and/or Oak Street. No access shall be from Houston Street. Houston Place shall not be extended and will not become a thru street to Bonnie Brae. 7. Masonry columns approximately 26 feet on center and wrought iron style fencing shall be constructed adjacent to the west end of Houston Street Right of Way. 8. The following architectural standards shall be incorporated into any new building a. Architectural elements such as awnings, extended overhangs, columns or shutters shall be incorporated into the design of buildings. b. All windows shall be Double Insulated windows with thermal break and no mirrored glass. c. Flat roofs shall not be permitted. The minimum roof pitch shall be 4:12 and the maximum roof pitch shall be 10:12. d. New buildings shall incorporate alternating roof plate heights. e. Shingles (if used) shall be a minimum 30 year architectural style composition shingle. f. All new buildings shall be architecturally compatible with each other including, but not limited to similar designs, materials, colors and detailing. If you have any questions regarding these responses please do not hesitate to contact me. Sincerely, Spring Brook Plannin Group a • awre C. Reichha , ASLA, AICP EXHIBIT II PROPOSED OVERLAY RESTRICTIONS, AS REQUESTED BY APPLICANT ON AUGUST 24, 2010 August 24, 2010 Ms. Jane Gurney City of Denton 221 N Elm Street Denton, TX 76201 Re: Z09-0013 Overlay Restrictions Dear Ms. Gurney: Below are the revised overlay restrictions we will be presenting to City Council: PROPOSED OVERLAY RESTRICTIONS: 1. Refer to the Permitted Use Table (Exhibit 1) for a detailed list of permitted uses allowed. 2. Prior to obtaining a building permit a site plan shall be approved by the Planning and Zoning Commission. The site plan shall address: a. The architecture of the structures (as addressed below), b. Buffering of adjacent single family property c. Houston Street Access 2. Building height shall be limited to 40' and/or two stories. 3. A 6' foot high solid screen fence (good side out) constructed with steel post and a decorative cap shall be constructed in the required buffer yard in lieu of the required buffer shrubs. All required buffer trees shall be planted in accordance with the requirements of the Denton Development Code. 4. Access shall be from Bonnie Brae and/or Oak Street. No access shall be from Houston Street. Houston Place shall not be extended and will not became a thru street to Bonnie Brae. 5. Masonry columns approximately 26 feet on center and wrought iron style fencing shall be constructed adjacent to the west end of Houston Street Right of Way. 6. The following architectural standards shall be incorporated into any new building 1. Architectural elements such as awnings, extended overhangs, columns or shutters shall be incorporated into the design of buildings. 2. All windows shall be Double Insulated windows with thermal break and no mirrored glass. 1 Flat roofs shall' not be permitted. The minimum roof pitch shall be 4:12 and the maximum roof pitch shall be 10:12. 4. New buildings shall incorpo ate alternatirg roof plate heights. 30 Z09-00013 Overlay Restrictions Page 2 of 2 5. Shingles (if used) shall be a minimum 30 year architectural style composition shingle. 6. All new buildings shall be architecturally compatible with each other including, but not limited to similar designs, materials, colors and detailing. If you have any questions regarding these responses please do not hesitate to contact me. Sincerely, Spring Brook Plannin Group 70 awre C. Reichha , ASLA, AICP Exhibit 1 - Z09-0013 Permitted Use Table 31 Z09-0013 PERMITTED USE TABLE EXHIBIT I Residential Land Use Categories Agriculture N Livestock N Single Family Dwellings N Accessary Dwelling Units N Attached Single Family Dwellings N Dwellings Above Businesses N Live/Work Units N Duplexes N Community Homes For the Disabled SUP Group Homes SUP Multi-Family Dwellings N Manufactured Housing Developments N P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 Home Occupation SUP Sale of Products Grown on Site N Hotels N Motels N Bed and Breakfast SUP Retail Sales and Service L(41) L(41)= Permitted within 240 feet of W. Oak and limited to no more than 7,500 square feet of gross floor area per use, uses are permitted greater than 140 feet from W. Oak with approval of an SUP. Movie Theaters N Restaurant or Private Club SUP & L(11) L(11)= Limited to sit down only, and no drive up service permitted. Limited to no more than 100 seats and no more than 4,000 square feet of restaurant area. Drive-through Facility SUP Professional Services and Offices L(17) L(17)= Uses are limited to no more than 25,000 square feet of gross floor area per use, except grocery stores may be larger with approval of an SUP. Quick Vehicle Servicing SUP Vehicle Repair N Auto and RV Sales N Laundry Facilities SUP Equestrian Facilities N Outdoor Recreation SUP Indoor Recreation N Major Event Entertainment N Commercial Parking Lots N Administrative or Research SUP & Facilities L(14) L(14)= Uses are limited to no more tha n 10,000 square feet of gross floor area . Broadcasting of Production Studio SUP & L(14) Sexually Oriented Business N Temporary Uses SUP & L(38) 32 Industrial Land Use Categories ' Printing / Publishing N '=I Bakeries N Manufacture of Non-odoriferous Foods N Feed Lots N Food Processing N Light Manufacturing N Heavy Manufacturing N Wholesale Sales N Wholesale Nurseries N Distribution Center N Wholesale Storage and Distribution N Self-service Storage N Construction Materials Sales N junk Yards and Auto Wrecking N Kennels N Veterinary Clinics N Sanitary Landfills, Commercial Incinerators Transfer Stations N Gas Wells SUP L(27) Basic Utilities SUP & L(25) Community Service SUP Parks and Open Space P Churches P Semi-public, Halls, Clubs, and Lodges SUP Business / Trade School N Adult or Child Day Care SUP Kindergarten, Elementary School SUP Middle School SUP High School SUP Colleges N Hospital N Elderly Housing SUP Medical Centers SUP Cemeteries N Mortuaries N 33 35.5.2.3 General Regulations. General regulations of the ResidentiA Neighborhood land use zone are contained to the table below-: The following limits apply- to subdivision of 2 acres or less: General Regulations Minimum lot area (square feet) NRMU 2,500 Minimum lot width 20 feet Minimum lot depth 50 feet Minimum front yard setback None Minimum side yard 6 feet Minimum side yard adjacent to a street None Minimum rear yard None The following limits apply to subdivision of more than 2 acres in lieu of miniintun lot size and dimension requirements: General Regulations Maximum density, dwelling units 30 per acre Minimum side yard for non- 12 feet attached buildings The follmving limits apply to all buildings: General Regulations NRMU Maximum lot coverage 80% Minimum landscaped area 20% Maximum building height 65 feet 20 feet plus 1 footfor Minimum yard when abutting a each single- foot of family use or district building height above 20 feet 35.5.2.4 Mixed Use Residential Protection Overlay: NNIere necessary- to address the concerns of owners of existing adjacent residential uses that a proposed non-residential or multi- family mixed use allowed by this subdnapter is incompatible, the applicant mac consent to the imposition of irrcreased setback, landscaping, screening or buffer regtrements along the borders of such existing residential uses, or to the nhapositiorr of additional use or pertormance-based restrictions upon the proposed use. Such additional modifications or restrictions shall, upon approval, anierid the undedving zoning classification and use designation to idd these supplemental regtrements. The ?nixed Use Residential Protection Overlal- may be established through the Zoning Amendment procedure, tidier as a separate zonung case, or in conjunction with m emenchuent of the miderlcirng named use zoning cassihcatioo. 34 EXHIBIT 12 PROPOSED ZONING MAP AND OVERLAY RESTRICTIONS, AS SUGGESTED BY STAFF RCC-D NR-3 RCC_D SCRIPTURE U3 O Z NR-3 M ~ N a DC-G m HOUSTON 2 O NP.MU SUBJECT PROPEI,TY OAK DR-2 DC-G DR-2 OAK DC-G ❑C-G DR-2 HICKORY DR-2 „ \ .:r DC-G 2 w Y" 'a 35 Overlay Restrictions Recommended by Staff: The following Uses shall be prohibited: b. c. Attached SF (townhomes) d. Dwellings above Business e. Multi-Family f. Hotels g. Semi Public Halls, Clubs & Lodges h. Business and Trade Schools Bakeries Veterinary Clinics 36 EXHIBIT 13 PROPOSED ZONING MAP AND OVERLAY RESTRICTIONS, AS RECOMMENDED BY THE PLANNING AND ZONING COMMISSION RCC-D NR-3 RC'C-D SCRIPTURE O Z m NR-3 ~ a DC-G m HOUSTON NRIOU z SUBJECT PROPERTY 0 K DR-2 DC-G DR-2 OAK DC-G DC-G DR-2 HICKORY DR-2 DC-G ui 37 Overlay Restrictions Recommended by Planning and Zoning Commission: 1. The following Uses shall be prohibited: a. Agricultural b. Livestock c. Attached SF (townhomes) d. Dwellings above Business e. Multi-Family f. Hotels g. Semi Public Halls, Clubs & Lodges h. Business and Trade Schools i. Bakeries j. Veterinary Clinics k. Live/Work Units 2. Building height shall be limited to 40', a typical commercial building of two stories or less. 4. Commercial and retail structures (not including professional service and office buildings) shall be limited to 7,500 square feet. An SUP is required for additional square footage. 5. An 8' foot high solid screen fence (good side out) constructed with steel post and a decorative cap shall be constructed in the required buffer yard in lieu of the required buffer shrubs. All required buffer trees shall be planted in accordance with the requirements of the Denton Development Code. Within the overall development internal buffering between uses shall not be required. thr, aa* te Pa ~ nnma Q 7. The following architectural standards shall be incorporated into any new building: a. Architectural elements such as awnings, extended overhangs, columns or shutters shall be incorporated into the design of buildings. b. All windows shall be double insulated windows with thermal break and no mirrored glass. c. Flat roofs shall not be permitted. The minimum roof pitch shall be 4:12 and the maximum roof pitch shall be 10:12. d. New buildings shall incorporate alternating roof plate heights. e. Shingles (if used) shall be a minimum 30 year architectural style composition shingle. 38 EXHIBIT 14 SITE PHOTOGRAPHS Exi n'L < 011111 kA I'll nuiikiin_ ins, c~~in~-,i of i;oimietsrae mreei ,Meet F ~ 'ki ; _ a t tL k . _ ra r ' " iWY J~t e Existing residential stricture located at 2300 West Oak Street y 39 Exi is resiaenuai siriciure iocaiea lit , ~N est var. Existing residential strictures located on Bonnie Brae Street (including property not included in this rezoning request). 40 The V Intage Ass.1 ~tc,I I i-,, in,r I11Ciht" t,~ the v~ c-4 ,4 the -~uhl~2ct -~it~2 i,~n i;kc l')i"w street i a i { f~ t ~ Gas station/Retail store and Denton Muncipal Electric Substation on the southwest corner of the intersection of Bonnie Brae Street and West Oak Street. 41 'not G:M~u. rnys7 Ytil ,tiJ?yr ~ S,. Multifamily development and undeveloped property to the south of the subject site; the undeveloped property was recently rezoned to Downtown Commercial General (DC-G). 42 EXHIBIT 15 Bonnie-Brae-Ector Street Small Area Plan Action Summary The City of Denton Neighborhood Planning Program (CDNPP) has initiated the process of examining the challenges and uniqueness of the City's older neighborhoods. The first area to be examined is bounded by Emery Street to the North, West Oak Street to the South, Bonnie Brae Street to the West, and Jagoe and Ector Streets to the East containing approximately 269.05 acres. This distinct area is a mixture of single-family homes, multi-family residential, duplexes, McKenna Park, institutions, the West Oak Historic District, and views of some of most premier natural landscapes in the City. The Bonnie Brae-Ector Street Small Area Plan will consist of three (3) sections: Assessment of Existing Conditions, the Community Role, and Neighborhood Initiatives. The Assessment of Existing Conditions is performed by City staff from the following departments and divisions: Planning, Parks and Recreation, DRC Engineering, Police, Fire, and Community Development. The assessments are scheduled for completion in November 2010. This Small Area Plan is community directed and driven; as a result, the Community Role is substantial. Built into the process are four (4) area-wide neighborhood workshops; and specific neighborhood meetings will be held if deemed necessary by the seven (7) member steering committee. The Neighborhood Initiatives will be generated from priorities set in the area-wide neighborhood workshops and the assessment findings. In addition, the Bonnie Brae-Ector Street Small Area Plan will have a Neighborhood Management component. This component involves area residents developing resource capacities with profits, non-profits, faith-based, educational, and government entities to form partnerships for project implementation. As to date, the following activities have occurred: 1. June 14, 2010 -City staff Small Area Plan Kick-Off meeting; 2. June 28, 2010 - City staff Scope of Work meeting 3. July 17, 2010 - Community Impression Neighborhood Workshop 4. August 9, 2010 - First Steering Committee Meeting Upcoming activities: 1. Neighborhood Assessment Walking Tours 2. Second Steering Committee Meeting 3. Capacity Inventory Workshop 4. Small Area Plan Staff Meeting (if necessary) Due to the extensive level of community involvement, the CDNPP is estimating that the Bonnie Brae-Ector Street Small Area Plan be presented to the City Council August 2011. 43 Attachments: Bonnie Brae-Ector Street Small Area Plan Map Bonnie Brae-Ector Street Small Area Plan Timeline 44 Legend Bonnie Brae/Ector h Bonnie Brae`EMrArea Parcels Small Area Planr 3 Streets 45 Bonnie Brae-Ector Street Small Area Plan 2010-2011 Timeline SAP staff members: 1 J u ne Katia Boykin :-t t , off meeting Johnna Matthews SAP staff members eeting. Earl Escabar Rai, Mengulta Janniibah Coleman Deborah Vle:l'ra.. Robert 7lckner Shane Kizer l isa.RodrigUez October ,.,ter i 1 -,,ri. I - Cii, iA i_ tyAuc February PI n o June Neiahborheoc Fresentat.en of SAP Plan Ra-,ans July JAugust September Neinl d;oiI occ Wei~otiap kl 111g Committee meat ng ,L_i-_ i t r9 First Stee i ri 7 Commi--3e Meeting fiAF , ~I i - I_vn_ --r_: Capacity Invemory :'dorl,shop 42 N-ghbarhocd- irs November December January t, 111 a - Findings Presentation VM:shp 03 Photo Hsse !-:t DraP#E mg amarNs Qse, ~lop-n~tiatf"cs -apaaity Mapping Steerur~j Committee mee.mg „t_.,r - 1 ~ t -s `a1- r 3 March (April May h C-opment Plan D ,ul jment Is i I zlopment i ;-sa Steering Cam. Ming. t I -naL Steering Cam.Mtng. July (August September 'I i, Res > ms Pre-rd ~ i vtro....-~.~> n Present to i i ~.iblic Hearing 46 EXHIBIT 16 Letter from West Oak Neighborhood Representatives West Oak Area Neighborhood and Historic District www.westoakarea.org The West Oak Area Neighborhood and Historic District opposes the proposed zoning change from NR-3 to NRMU for properties located in our neighborhood. NRMU zoning would not serve the neighborhood's consistent long-term goal of maintaining and increasing single-family residential viability. This proposed zoning change involves three properties on West Oak Street. All three of them are listed in the 1995 Denton Historic Inventory: two of them are residential homes, and one of these homes abuts the West Oak Area Historic District overlay within the neighborhood. The proposed zoning change, if granted, would also effect the residential properties on Houston Place that are in our neighborhood, making residential property lines tangent with commercially zoned property. We are an old and established small residential neighborhood whose location makes us significantly vulnerable to zoning and development incursions, particularly on our southern (close to UNT) and western (close to medical facilities) edges. During the citywide rezoning in 2002 the Denton City Council agreed that our neighborhood should be actively preserved and that uniform zoning would be one way to help protect the residential quality of the neighborhood. Instead of zoning West Oak Street between Bonnie Brae and Jagoe on the north side and between Bonnie Brae and Ave G on the south side Downtown University Core, as the Planning Department advised, Denton City Council, after lengthy discussions with the West Oak Area Neighborhood Association, mandated that this area be uniformly zoned NR-3. Mr. Tjandramulia's zoning proposal is an example of the type of "zoning creep" that is the demise of centrally located residential neighborhoods. He has no site plan and is not a developer with a specific plan for the property. If allowed it would be the only property in the entire neighborhood zoned anything other than NR-3 and would be an invitation to the next real estate property packager to purchase several residential homes, apply for a zoning change using the last change as an argument and support for the current proposal, and "flip" the property. Rezoning properties lot by lot, or groups of lots does not serve the goal of maintaining or preserving a neighborhood; rather it serves the interests of real estate speculators often to the detriment of neighborhoods, particularly when the neighborhood is in an already physically vulnerable area. The West Oak Area Neighborhood Association has had an active neighborhood organization since at least the 1970's and has worked diligently to maintain the boundaries that were defined during the citywide re-zoning in 2002. In 2009 a good portion of the neighborhood had an additional historic district overlay, the West Oak Area Historic District and we are currently working with Denton's Planning Department to create a second overlay, a Small Area Plan, that 47 will include all properties in the neighborhood. The goal of these overlay districts is to provide as much structural support as possible to protect our residential neighborhood from non- residential incursions. We respectfully request that the City of Denton support the residential viability of the West Oak Area Neighborhood and vote to maintain NR-3 zoning. 48 EXHIBIT 17 RESPONSES TO PUBLIC NOTIFICATION NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: _ _ In favor of request Neutral to request Opposed to request Reasons for Opposition: 1• Alb /48-/!`/617/00 u/Ti`- + 46111,419 CDAl ffaC!/FL 01,-1 l~lG( m.U'(© ~~,C j,9({/AQ/J 7J rH~S _ _ 3 /U!J A,10 C'DU 9 °t` C~dP~O Al~ C2e~ssU~ /k, ov5;2N S _ v B SKcY u_U~Sfv 725 ovNe9L Signatur Printed Name: ~'r""4,PP Mailing Address: / AA_1,e,~LA4- City, State Zip: y8o~ C 765 Telephone Number: ~~fC9 SW(r rg3- Physical Address of Property within 200 feet: 4/// ,9N,45 6%- CITY OF DENTON, TEXAS CITY HALL WEST - DENTON, TEXAS 76201 • 940.349.8541 (F) 940.349.7707 200'P& 2 Notice 04-14-10 11:50 IN W, 49 jj NOTICE OF PUBLIC HEARING Z09-0013 V The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request -Opposed to request Reasons for Opposition: Yy"' Signature: Printed Name: ~r C o~ Mailing Address: City, State Zip: 0_ u ' Telephone Number: 1) 5-5 f~t~ ~S Physical Address of Property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST DENTON, TEXAS 0 4 -9Pr31I • Its) 940.349.7707 260'P8Z Notice 04-14-10 10:06 IN 50 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:34 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it-off- in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request (-~O~ppsed to request Reasons for Opposition: e ~ LA J, Signature: Printed Name: C-V Mailing Address: °7 to 4aV~ F City, State Zip: L r~ l }C / ! Telephone Number:' Physical Address of Property within 200 feet: V\ CITY OF DENTON, TEXAS CITY HALL WEST • DENTON, TEXAS 76201 940.349.8541 (F) 940.349.7707 200' P&Z Notice 61 51 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit med ng. The public hearing will st cated at 215 E. McKinney Street, Denton 00) feet of the subject property, the Pla feel about this request and invites you t to be taken into account, return this form (This in no way prohibits you from attend ti to the number located at the bottom or Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one. In favor of request Neutral to request Opposed to request Reasons for Opposition: 1"rrrS r <signature: Printed Name: Mailing Address: _7 City, State Zip: c d Telephone Number: j j Physical Address of Property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST DENTON, TEXAS 76201 • 940.349.8541 (F) 940.349.7707 200' P&Z Notice 52 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will held a public hearing on Wednesday, April 14, 2010, and consider making a recommendal'on to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn. Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of requesf Neutral to request Opposed to request Reasons for PIPPIP.61JA » T rt Ay E 8 EEi.1 "-F-HE~ LEI3*L CGS t der AM- 2.32.2 PoU15-mr J PrAe-E FdA nitE LAs7- PRo Pr2-r°3 5nL L-! -ra M P_ K ERR`t' A. R11c.E PA--S A /4 ~It~sr- Signature: /1l.y.vv.~.Jy~ U~1lo9y+` C_6_ Printed Name; ~H A4& A-T'i. n iJ e'_n LI Mailing Address: 9 L10 W E A= 4LA(A.MA A VE City, State Zip: AN~I bAftO.'n Y,. 130CIS"- 4-6.3 7 Telephone Number: ~t L0 / 2-S 1 0-2-4.O Physical Address of Property within 200 feet: 4-2429 HOUS-11-nNI PLACE.__ CITY OF DENTON, TEXAS CITY HALL WEST • DENTON, TEXAS 76201 • 940.349.8541 • (F) 940.349.7707 7~a•i r', ~ ri~a~::c 07-02-10 15:20 IN 53 NOTICE OF PUBLIC HEARIN& Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public heregardin on Wednesday, April 14, 2010, and consider making a recommendation t o the Cit) 131(NR 3) og ng d stnctn ooa approximately 4.678 acres of property from a Nei9 heast loca Neighborhood Residential Mixed Use (NRMU) zoning district. Thep operty i stated the purpose~of th is corner of West Oak Street and North Bonnie Brae Street. The appl' ant has hange of the under thefcudrrenthzo In ng on the back the zoning iden rezoning request i tomed cal and commec all uses not permittedroperty of this page to per 15 The public et, Denlton Texas. Bep.m. in the cause you City Council own property with'nstwo h~undrel d locate (200)dfeet2of the McKinney Street, subject property, the Planning and Zoning Commission would like to hear how you feet about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into hea account, return this form with your comments prior to the dateof the.) pYou mayring. This in way it to the number prohibits you from attending and participating in the public located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request Opposed to reques , Mailing Address: 0 City, State Zip: 67 7 Telephone Number: 3 4 ~f Physical Address of Property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST DENTON, TEXAS 76201 940.349.8541 (F) 940.349.7707 200' P&Z Notice 54 Reasons fox Opposition: te r4 Ulu J" L~ 1 r4.,Gt~ NA2-26-2007 10:33P FROM: 70:3497707 P.1111 INNOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday. April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.670 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request to to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. In the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feat of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, In order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request Opposed to request Reasons for Opposition: CCTV OF DENTON, TEXAS CITY HALL WEST • DENTON, TEXAS 16201 • 940.349.6541 • (F) 940.348.7707 200' P8Z Notice 55 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning commission of the city of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feet about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person.: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. T~] mission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request Opposed to request for Oppositi Signat re: Printed Name: I 1 Mailing Address: City, State Zip: I Telephone Number: 13 Physical Address of property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST DENTON, TEXAS 76201 940.349.8541 (F) 940.349.7707 200' P&Z NOUC@ 56 r RECEIVED 04/09/2010 15!02 9727885234 DOLIRLaREE ACCrG Rpr 09 10 06:49p Planning nept Citp OP Den 9403497707 p.z NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4,678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit mcclieal and commercial uses not permitted underthe current zoning. The public heating will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commisslon would like to hear how you feel about this request and invites you to attend the public hearing, Please, in order for your opinion to be taken Into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission- is informed of the percent of responses in support and in opposition. Please circle one: In favor of reque, t : Neutral to request Opposed to request Reasons for Opposition: Signature: Printed Name: / li=d- 'J L' ST/ZANa Mailing Address: i ~'a Gd.' b n l C r rc ie ~a 6 r -.L T -)c -7 G 2.4 ~ City, State Zip: L r Telephone Number. G 2 l u W S. Physical Address of Property within 200 feet: -32'b 94n'""f 1~"i~ t t1 L n, _ar.j c1 rYOF DENTON, TEXAS CITY HALL WEST" - DENTON, TEXAS 76201 • 940.349.8541 • (F) 940.349.7707 20c P&Z Nolce 57 0411212010 08.01 (FAX) P.0011001 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose.of this rezoning request is to change the zoning designation of the property identified In the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Bait located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail itto the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request Opposed to request Reasons for Opposition: may' w-E ~ -Q a =g_ 1 o G - r lzti~e C, 1k Signature: Printed Name: ZIXIA Mailing Address: l~~ll~ntL~Ctl l ~2 ~GLt'~S City, State Zip: 1 ~7r.a„"ro+iy x ~(p ~l~ ` Telephone Number: cj yr, - `3 A l - 7 V b~ Physical Address of Property within 200 feet: Ql CITY OF DENTON, TEXAS CITY HALL. WEST • DENTON, TEXAS 76201 940.349.8541 (F) 9413.349.7707 200'P&Z NoWe 58 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. In favor of request Reasons for Opposition: Lease circle one: N utral to request opposed to request Signature: ( - , / Printed Name: 0.'m Mailing Address: o a , City, State Zip: Telephone Number. Physical Address of Property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST • DENTON, TEXAS 76201 • 940.349.8541 (F) 940.3497707 200' P&Z Notkc? 59 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please ircle e: In favor of request Neutral to request Opposed to request Reasons for Opposition: Signature: Printed Name: Mailing Address: G u City, State Zip: J, V'\ Telephone Number: Physical Address of Property within 200 feet: C7 CITY OF DENTON, TEXAS UTY HALL WEST • DENTON, TEXAS 76201 940.349.8541 (E_) 940.349.7707 200' P&Z Notice 60 NOTICE OF PUBLIC HEARING Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would tike to hear how you feet about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76201 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In (aver of request Neutral to request Opposed to request Reaso Oppositi Signature: Printed N JF t k~ g rbGC-_J/Z. Mailing Address: R7CJO v City,State Zip: 41k~ dkklk~ 71C 7 ~ Telephone Number: Z/y 6'iY. S~2_1 Physical Address of Property within 200 feet: a'E~1 -ScAerbk'~-'- SqV 3Lt{ ~w'V~ie; CITY OF DENTON, TEXAS CITY HALL. WEST - DENTON, TEXAS 76201 - 940349.8541 - (F) 940.349.7707 200' P&2 Notice 61 940-369-8760 LIB ADMIN PAGE 01 NOTICE OF PUBLIC HEARIN zas-oots G Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, it 14, 2010, and consider making a recommendation to the City Council regarding roximately 4.678 acres of property from a Neighborhood Residential 3 {NR-3) zoning district, to a s at the northeas lhborhood Residential Mitred Use (NRMU) zoning district. The roe the rezoning of er of West Oak Street and North Bonnie Brae Street. The applfcrOP asisflocated purpose of this t ning request is to Change the zoning designation of the property identified in the trap on the back is page to permit medical and commercial uses not permitted under the current zoning. public hearing will start at 6:30 p.m, in the City Council Chambers of City Hall located at 215 E. nney Street, Denton, Texas, Because you own W Property, the Planning and Zoning Commission would Ift to heahhowy you fee feet about the rs1 and invites you to attend the public hearing. Please, in order for your opinion to be taken into this ant, return this form with your comments prior to the date of the public hearing, (this in no way bits you from attending and participating in the public hearing.) You may fax it to the number ~d at the bottom or mail it to the address below or drop it off in-person- I Planning Division 221 N. Elm Street Denton, Texas 76201 Attn. Jane Gurney, Project Manager Thee forms are used to calculate the percentage of Iandownors that support and oppose the req est. The Commission is informed Of the percent of responses in support and in opposition. Please circle one: In favor of request Neutral to request Reasons for Opposition: Opposed to request. r' c o ~ t~4 ~ vSe On Mould be and- af' ht`sy'or^~ ca/ ~bS 16,6 Yfe A7!Y~ /Y~+ acT ON „ec s/Jh _rva/ups eXc 5a; VC '4";T j'+ of Signa re: UA24M Printe Name: Su 54 n. -SJ L z Maiiin Address: 2- 2=70 WCst (59k aSf City, S 'ate Zip: Deht'0 9 1C 76 Z_O I Telephone Number: q q o^ is Y04-5 Physic hl Address of Property within 200 feet: `Zz'7a West- 04k ~-Tr p 1 CITY 290' P&; D,ENTON, TEXAS CITY HALL WEST • DENTON, TEXAS 76201 • 940,349.6541 • (F) 840,349.7707 62 Apr 06 10 10:31a Microsoft P.1 April 6, 2010 To: Planning & Zoning Commission City of Denton From. Russell Rowe -Bonnie Green Apartments Re: Z09-0013 To Whom It May Concern, l vote to approve a rezoning of the subject property to a NRtVIU zoning district. The Bonnie Brae Medical Park provides the highest and best use for the property and a wonderful upgrade for the neighborhood. Respectfully, Rowe Owner 101-1215. Bonnie Brae 63 yr rVOLLI., MCAMLINIV Z09-0013 The Planning and Zoning Commission of the City of Denton will hold a public hearing en Wednesday, April 14, 2010, and consider making a recommendation to the City Council regarding the rezoning of approximately 4.678 acres of property from a Neighborhood Residential 3 (NR-3) zoning district, to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is located at the northeast corner of West Oak Street and North Bonnie Brae Street. The applicant has stated the purpose of this rezoning request is to change the-zoning designation of the property identified in the map on the back of this page to permit medical and commercial uses not permitted under the current zoning. The public hearing will start at 6:30 p.m. in the City Council Chambers of City Hall located at 215 P. McKinney Street, Denton, Texas. Because you own property within two hundred (200) feet of the subject property, the Planning and Zoning Commission would like to hear how you feel about this request and Invites you to attend the public hearing. Please, in order for your opinion to be taken into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning Division 221 N. Elm Street Denton, Texas 76209 Attn: Jane Gurney, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: In favor of r uest. Neutral to request Signature: Printed Name: Mailing Address: City, State Zip: Telephone Number: _ ("5` 9-W YJ~,19 16 , 42 Physical Address of Property within 200 feet: 2 CITYOFDFNTON, TEXAS CITYFtALLWEST •,DENTON.TEXAS 16201.- 94D.349.8541 (F)940.3493707 200'P&I Notice 64 EXHIBIT 18 EXCERPT OF MINUTES FROM THE PLANNING AND ZONING COMMISSION MEETING OF APRIL 14, 2010 Public Hearing Item 4.B. Rezoning of approximately 4.678 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is generally located at the northeast corner of Bonnie Brae Street and West Oak Street. (Z09-0013, Bonnie Brae Medical Park, Jane Gurney) Jane Gurney, Project Manager, presented this request for a zoning change. The property is comprised of seven separate tracts of land generally located the northeast corner of north Bonnie Brae Street and West Oak Street. The property surrounds an existing single family parcel that is not included in this rezoning request. Six of the properties are currently developed with residential uses, and one property (at the corner of Bonnie Brae and West Hickory) operated as a special exception retail sales and service, although this structure is currently unoccupied. The applicant is requesting a zoning change to NRMU, subject to a restrictive overlay, including no multi-family uses being permitted, and not industrial uses permitted by right (veterinarian hospitals or bakeries). The purpose of this request is to develop the site with medical-related and commercial uses not allowed under the current zoning. Twenty-nine legal notices were sent out. Staff received 6 responses in favor, 7 in opposition, and 2 neutral responses. This will require super majority by City Council regardless of P&Z vote. The Development Review Committee recommends denial of this rezoning request, as proposed by the applicant, however, the committee recommends approval of the rezoning of the six properties to NRMU with a restrictive overlay to prohibit multi-family uses, veterinarian clinics and bakeries, as shoN-,n in Exhibit 5B, and maintain the existing NR-3 zoning on the lot directly adjacent to the West Oak Area Historic District. The applicant's representative Larry Reichhart, Spring Brook Planning Group spoke in favor of the request. He stated that this is for a medical office and professional offices. They would like to leave the building at 2286 West Oak and just remodel. This request was generated by Presbyterian Hospital and Denton MD driving more medical offices in the area. Larry stated that this is more of a transitional zoning and not isolated. Several citizens spoke in opposition to this request for rezoning. Closed the public hearing at 8:17 p.m. Motion: Commissioner Brian Bentley motioned to reopen the public hearing and continue this item at the next meeting. Seconded: Commissioner Patrice Lyke On roll call vote, Chairman Walter Eagleton "aye", Commissioner Brian Bentley "aye", Commissioner Jay Thomas "aye", Commissioner Patrice Lyke "aye", Commissioner Thom Reece "aye", and Commissioner John Ryan "aye". Motion carried unanimously. Passed: 6-0 65 EXHIBIT 19 EXCERPT OF MINUTES FROM THE PLANNING AND ZONING COMMISSION MEETING OF APRIL 28, 2010 Public Hearings C. Rezoning of approximately 4.678 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential Mixed Use (NRMU) zoning district. The property is generally located at the northeast corner of Bonnie Brae Street and West Oak Street. (Z09-0013, Bonnie Brae Medical Park, Jane Gurney) Jane Gurney, Project Manager, stated that this case was tabled from a previous Planning and Zoning Commission meeting. The request is for a rezoning of approximately 4.678 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a NRMU zoning district with consideration being given to a restrictive overlay. Staff recommends approval of a portion of the request in that 6 of the lots, closest to Bonnie Brae, be re-zoned to NRMU with a few overlay restrictions and that 2216 West Oak be maintained at the current zoning of NR-3. The applicant has revised the requested overlay restrictions to include that certain uses be prohibited. These were provided to the Commission in the Work Session. There were 29 legal notices sent to properties within 200 feet of the subject site. There were 6 responses in favor, 7 responses in opposition and 2 responses in neutral. More than 20% of the responses were in opposition, so if this request goes forward to City Council a supermajority vote will be required. The applicant's representative Larry Reichhart, Springbrook Planning Group, was present to speak. There were several citizens who were present who filled out speaker cards in opposition and some spoke to the Commission. The major concern addressed by the citizen's is the lack of a site plan and uncertainty of what could potentially be developed as well as the commercial use of a residential lot that borders a historic district. The applicant's representative offered rebuttal to the comment of citizen's and staff. Mover: Commissioner Jay Thomas motioned approval of the re-zoning of the 6 lots recommended by staff with overlay restrictions. Seconder: Commissioner Jean Schaake On roll call vote: Commissioner Jay Thomas "aye", Commissioner Jean Schaake "aye", Chairman Walter Eagleton "aye", Commissioner Thom Reece "aye", and Commissioner Brian Bentley "aye", Commissioner Patrice Lyke "nay". Passed: 5-1 66 EXHIBIT 20 ORDINANCE ORDINANCE NO, AID 01,W NAI' CF OF I HE C} ry OI-• DENTO S, TEXAS, 1'I 0VTT)TNG FOR A Z0-11,TN ~ C"11;1~trL f'I~C)1~i 1 \'FIG1IB !R.llO()1) R~SIDFN L 1. :5 ~NR-;) ZONNG, DISTRICT C 1--A'%SJIr1('-?,IR)N AND USE DES (jN:-\TI(-)N '1-C) is N1'1G1113(~)RH0()L) REtiIDEN"_I,,1I. II T.IIt. I_tNiLb91!)/,r)`11NiTbI 1"IIGTCI..I SIFIC. ON AN'U'C.sf:])ItiI[-11~`.1IioNO ; 6Q,%NL)761 OF 1111 r. l'L'C:'I I,L3.;SM SURVEY", \411I1 ,%N C7VLRLA' L)IS'TRIC I ~..1~ 1 11fOS1 S_ 1L'TR. ,C: I' , >'I.LIS TR. C'E 2 , C€ NTAINIhtiCJ r~l)1JII If~~\.ll. RES'll'IC TIONS AS NOTED, 1I1F' AREA rOR ZONING C1'JM GL LNL:G~iF'r'l~SI; :Yl'PW)Nl 1:'t I'F,LY 4,678 ACRES LAND LOCH ITD A'1" I I IF, NOR TI 11'AST (-GR (1 R OF NOR'l I I 1 O NI1- BRAE STREET :~NI) WEST` (LAIC S I RI;.LT, IN THE C.I'I'4' (V DENTON, I)ENTON C'OZTN'I 1', TEX,Vti' PRO% II)INGFOR- A PENAL IN IN TI II- 1 1,-A NI''.'1f;IGI >NIC)L T (tI' $?.t fli i.fiCY 1 07. iCtL. I"lu v T11F1Z1 -()F, SluVL1 -WIL1iY AND AN L1 '1T1;C'.T '_J~ DATT L 'f ll:I 1 S, yprillgbroo Planning Ciroup has applied for a ch on e in zortitt I' W ap m nnatc'..; ..t3 acr ~,f Iafld, JepicrLd in LXhi1}it "V', and I,.t-a1f) dcscrihm in EXI:ibit -'B" , b~-nth ol`«I~i h uGattE3ched }icrcttl and NlcurPorarcd herein by reference `rr, crcinErhtor,.the"Property' ror. . a Itici h'nancot}d T:tisidential 3 tN1ti 3 ~t ninv district clmsi:reatiott _-vxl usc, desimnatiin to a \cighborlinod I.esidcr~t al Mixc l use 1'N'R It; r+,nin~ distrit~t classitication and t,tic. clesipation with onside; atic)rr bcinu given to overlay restrictions; and W1IF AS, can April 28, 2010, t -e I'lmnmc~ and Z(min_ Cornnti5tiinn recommcT7ded apprr)~rl} of 110 change in cm-n", sllbj t to the Gi,nd1"lfttn~: outllr7t'd13r :SeC-titans and _3 held F; and WHEREALS, tl.~ C_'ity Council finds thattherhange is cor siGtent with The Denton Flan and the Development co(Ie; NOW, T1li'.. TFOW T CC CINCI 1- Ole T 4 E CITY OF DENTON I E F FtEI Y O 1IN ti: SFGTTON 1. The findings and Tecitatiov.s ~`rmtair od in the preamble of this ordinano are incor or MtJ herein by rc'ccrence as true. I ( I "Is r ~i I'}zc z }runu district classification and use desiemmtion for the ProNny is perch s pan cd fz,_r ~7 tit 1,Lph?culio; R siden(ial ? to Nei~,hhnrl-,,oc)d Rcsiderltitil h~Iixcd Lrse (Iti1:III:Y, 0"7 tr irts ?`Ciq 17758 ;?[ID and ??l, and s1~aII remain as ?slcigl,b_}rhood Ri sidential 3 {1V1 can 1ta~t (i ith a] baits on the Prol~.ct~[-v_ cm taining the following addb~~nal,strit-tiorls: \'otwith,taiidi , the ;attache-1 read Iron, ri_ Iescriptiptr. i.lrt properly ring rezuried inclue(-s aft pr€fltc~~(ti= ti! ttTe ~:ertrcrlrnc o: all. aCliiic:ent ;~,~t°', ri~ltts-f ~4~a}~, 1. Aar•iwutturc.I i~ z toclc, Attuc.ljct Single-Irarriily Dti ellirt s. multi-I, ilyDwellings, T.1% e'\Voik nits IlolcI3. Scry7i-liul?itt 1 falls, C iubs, and Lodges,, 13usiness'"1ra e tich+)olti, I3r:kclies,, alld Veleririan, Clinics, ;is cletmcd by the Vcnton DL7 %clopment C"~-,de, afc pr;+ih'ited uses on the Property. 2- uildi L~ l.eid,hts~ shall be I'mited to fnI€.~' 1_40) t'ca 3. C.omtrcrclaf ::rnd Rctail Structure:., with the cxception ofprofessiom-.1 sG,r-vices and 67 s:id gn3nur ctu ~rntn ts'ozd nu . 1 i li11.3 bonnie brae incdi a!',do p f;r ekrt;ildrn s,sl,,~ll'elimited to7,50tsquare feet, ASikcalicUrePeriitshallbe rtgt.irc l i.n cr~lcr for additional square footage, not to e'Eccc<? 2~10Ct) s:gtutre Ceet, as limited the Detifotj Dc~ oleo,,)Hiatt C:-trite, flti e1`itl f. 8) tl of lti }t S0i'd sciccn fence ( u o d side ou*1 constz uctett s, itit if lists and a dcconilli c cap shall he ~wiL,4tr_tctctl in the required huftcr yard, in licit of the requirc-d bul'j'e s iruhs. !dl reduircf bt.5cr faces sha11 lac planted in accordancc kvit?the ritlttirem nts tat the Penton L)cveL)1Lnncnt Cud.-. l1 ithinthevs oral] dcvclopnicnt, internal hufttring between uscti siLall no L i e req tire. 1. ` C_'C'i ION 3, 1,110 f' llotitiin arcliitectttrai standards shall be in~E,rp i::xcd into ~n~. new build-WE tr}nstru~tecl on the 11iopc v' 1. Vchit tuna' elements suc.lr as awnings, exte.rrded overhangs, columns , shutters sh r11. b~ irtcnrl?t+rtiied iRt] thu desi[m (;fbttilclin 4. 2. .~V1 w')N)wv i s'r1 11 be double insulates wid(I:ATq wi thermal break anal no rnhTored L~'.itss. 1'"tit roofs sh•tl] nol he permitted. The rniriraiutn reef pitch shall be 4.12 and the n-a ,inlum roof pitch s)1;'111. be 10-1 4. Nc~, bw1d7.ti1s shall incorpo;,itc ,flternatin roof plate lteivhts. S. ti)ain .ies, it ustd.. shall be a rninirnurn of dP year architectural st.vic comros;vnn shut~lc. SIT f'10,'\ 4, The CitVs ofcial land use snap is amende(i io show the chan~u in the ]rand use designation. SEC`l'IC)N 5. Tf arty proviO(-w oFthis ordinance or the appIfcation iherck!f to €2ry licrson or cire'uznsrdnce is hr,~d _m alid by any crntrt, such in altdi_ shall rrot affect the vs]idity of other prov; ions o app'icatirars, and to this ~`nd thc provisions of thiti ordinance ate se,,'erable. SECT ON 6, :An4 penor ~ iel Cling any pr+rNgL,;ion r-1`this ordir~:;nte shall, upon conv action, be fined a sure ttcat ex eediri4 ~",Ci()0110. l ac.h a a,, that a prow isinn of. th s ordinance is violated shall constitute a separate . alistinCt tilferise. SECTION 7. This ordinance s}7, t11 l,ccnrite of t ucti 'e four ce.r (14) c1a;, s frnrr t17 clan of its 1, ,s tic; and the. City Secretary is herc.lrti directed to i ausL~ 11e caption of this nrdin,a~ce to be puhli4herl t,,vicc in the Denton Rcci,rtl-C'hwicle, a daily ntew-,paPerpublislied ut the C,i of Denton, Texas, ti~ ithin tcn (10) day of the date cif its jaa5sa~e. PASSED AT ND APP"R10\1 i) this the das of , 2010. ARK A. BURRO [ (aI fS,'lAV ().R, 68 9;ti3tAKlE dSrCY~€rb~nD7*A6[!s"nariGeSkY4t,~4_ilii]. h;oa lr hra. ~•31 ~:~Ld.-F~ ATTEST: ENNIFLi, WALTER S, CITY 5EC'RF.T.,1RY BY: APPROVED AS TO T:Ki ti1, FORNR: AN Ry. PAGE 3 69 V' x t#w~rrt_.,tn`„~rd ina ¢rs'.1~ z0?~$ 3 bonnie bTae mad"-doe EXHIBIT A i PAGE 4 70 ~_kvvr dr<eaimenC 1 ~ r~ mats er' 1 r i ~3-9~t l3 Fxe~~yie r dicaJ.dac l4NrH1 BEING all that certain lot, tract, or parcel of land situated in the Eugane Puchatski Survey Abstract Number 996 in the C tyof Den tan, Denton County Texas, being all thatcertain,tract cyfla rid conveyed by deed from B i l l y Royce Kends, et ai to BerdyTjandramuIia recorded undesdoCument N.Amber 2008- 46396. Real Property Records, Denton County, Texas and neing all that certain tract of is rd conveyed by deed from Denton Buildings, L P_ to BerdyTjandramulia recorded under Document Number 2008- 46734, Real Property Records, Denton County, Texas and being all that certain tract of land conveyed by deed from Peter Mark HUlstrand and Randera Huistrand to Berdy Tjandramulia recorded under Document Number 2008-33655, Real Property Records. Denton Gourty, Texas and being all that certain tract of land conveyed b'y deed from Janice E. Lewis and Roger E. Lewis to Berdy Tpridramulia recorded under Dacurnent Number 2908-56461, Real Property Records, Denton Count', Texas and being all that certain tract of land conveyed by deed from VVM Specialty Mortgage LLC to Berdy Tfandramulia recorded under Document Number 2007-100115, REal P,!-operty Records, Denton County, Texas and being all that certain tract of 'and conveyed by deed frorr Margaret Barnes, et al to Berdy Tjandramulia recorded in Volume 4288, Page 2186, Real Property Records, Denton Court j, Texas and be ng all that ce--tain tract of land conveyed by deed from Ralph N. Kimmey and Nancy M. Kimmey+ to Berdy Tjandramu'lia recorded under Document Number 2009-1279y5, Rea! Property Records, Denton County,. Texas and being more particularly descrbed as folows' BEGINNING at an iron red found for corner in the north line of West Oak Street, a public roadway, said paint being the southwest comer of that certain tract of land conveyed by geed from Michas! H. Nolen to Lynda Lee Parker Nolen recorded in Volume 1844, Page 626, Real Properly Records, Denton County, Texas; THENCE N 89° 06'26n W, 299.44 feet with said north line of said West Oak Street to a point forcomer in the east line of North Bonnie Brae a public roadway; THENCE N 019 35' 32' W, 148.38 feet with said east line of said North Fannie Brae to a point for corner, said point being the southwest corner of that certain tract of land conveyed by deed from Pamela Arrl Strickland et al to Fdicln8rd T. Muir and John D. Springer recorded in Volume 1821, Page 471, Real Property Records, Denton County, Texas; THENCE EAS f-, 100 p0 feet with the south line of sad Muir and Springer tract to a point for corner, said point being the southeast corner of said Muir and Springer tract; HENCE N 00' 16' 10" W, X9.86 feet with the east lime of said Muir and Springer tract to a point for corner, said point being the northeast comer of said Muir and Springer tract; THENCE West, 14410 feet with the north line of said Muir and Springer tract to an 'X° in concrete found for corner in said east line of said North Bonnie Brae THENCE N 11* 05` 31" W. 208.10 feet with said east line of said North Bonnie Brae to an iron red found for corner said paint being the southwest coo nerof that certain tract of land conveyed by deed from Raynor Investments, Ltd. To David J. Ostrom and Melody L_ Buys recorded if) Volume 4205, Page 882, Real Property Records, Denton County, Texas; THENCE N 86° 59' 58" E, 124-27 feet w#h the south lines of said Ostrom and Buys tract to a fence comer for corner, said point being the sd]0he8st corner of said Ostrom and Buys tract, THENCE N 01° 43'W , 142.59 feet with the east line of said Ostrom and Buys fracl and with the PAGE 71 ;latvsdas~arr~ecr lnr arar~~es"9 Snn13twMme IrF,x.-Aicald,zc east line Of that certair tract of land conveyed by deed from Maggie Sue Collier axis to Willie A. Hudspeth and wife, pcretha Hudspeth recorded in Volume 928, Page 662, Deed Records, Denton Ccunty Texas to a fence comer for comer, said point being the southwest comer of that certain tract of land conveyed by deed from J. Michael Drown and wife Kimberly drown to Jeffrey Talbot and Terri L- Talbot recorded under Document Number 2004-Wl11, Real Property Records, ntan County, Texas THENCE S 891114'08" F, 178.29 feet with the south line of said Talbot tract and ,with the south line of that certain, tract of land conveyed by deed frcim Ludell Ford Austin et at to J. Michael Drown recorded under C'cr(s File Number 94-R0028663, Real Property Records, Denton County, Texas, to an Ivan rod found for corner, said point being the northwest corner of Lot 1, Block' of Houston Place Addition. an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet D, Page 107, Plat Records, Denton Co~nt~y, Texas THENCE S 0004 ' 58' F, 145 68 feet with t;ne west line of said Houston Place Addition to an iron rod found for corner in Houston Place, an unimproved roadway having a right of-way cf 5{J,0 feet, THENCE S 69° 06' W E, 114,39 feet with said Houston Place tc a iron rod found for corner; THENCE S W 54'55'W1 24.02 feet to jr iron rod found for corner in the scuth line of said Houston Place and in the north :ire of that certain tract of lard conveyed by deed from Thomas Paul Kehler to Andrea R Cooper recorded it Volume 1235, Page 9311 peed Records, Denton County. Texas, THENCE N 89' 01' 20-1N, 10,93 feet wittl said south line of said Houston place and with said rorth line of said Cooper trac': to an iror rod found for corner, said point being the northwest corner of said Cooper tract, THEtJCE S 00* 464T E. 1411,94 feet with the west line of said Cooper tract to an iron rod found for corner, said point being the southwest corner of said Cooper tract; THENCE S 8 ° 86' 34„ E„ 6.67 feet with the south line of said Cooper tract to an iron rod found for corer, said paint being the northwest corner of sold Nolen tract, THENCE S 00' 67' 08" VV, 372 16 feet with to mmW lime of said Nolen tract to the PLACE OF BEGINNING and cortairing 4.678 acres of hand. PAGE 6 72