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HomeMy WebLinkAboutMay 3, 2011 Agenda AGENDA CITY OF DENTON CITY COUNCIL May 3, 2011 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, May 3, 2011 at 4:00 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 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clarification of agenda items listed on the agenda for May 3, 2011. 3. Receive a report, hold a discussion, and give staff direction regarding proposed amendments to Sections 35.13.7.C, 35.20.2.A.3.c, 35.20.3.13, 35.20.3.13.1, 35.203.C and 35.23.2 of the Denton Development Code regarding estates lots and sidewalks and/or bicycle facilities. (1)(A10-0008) 4. Receive a report, hold a discussion, and give staff direction concerning the creation of a new Division 3 to Chapter 26, Article III of the Denton Code of Ordinances, regulating the use and interconnection of Wind Energy Conservation Systems (WECS) and concerning proposed amendments to Subchapter 35.5 of the Denton Development Code regarding use restrictions for both Free-standing Monopole Support Stricture and Building-mounted WECS. The Public Utilities Board recommends approval of Chapter 26 elements of the draft WECS ordinance (4-0). The Planning and Zoning Commission recommends approval of the proposed amendments to Subchapter 35.5 of the Denton Development Code (7-0). (1)CA10-0010) 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 1. Closed Meeting: A. Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations - Under Texas Government Code Section 551.087. City of Denton City Council Agenda May 3, 2011 Page 2 1. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding granting economic development incentives to Peerless Manufacturing Company with respect to development of a manufacturing facility. This discussion shall include commercial and financial information the City Council has received from Peerless Manufacturing Company which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives. 2. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding the terms and conditions of an existing economic development incentive for Jostens, Inc. This discussion shall include commercial and financial information the City Council has received from Jostens, Inc. B. Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Receive a report and hold a discussion regarding legal issues on matters involving Cause No. 2011-50255-367 in the 367th Judicial District Court and provide direction to the city's attorneys regarding same. 2. Consult with City's attorneys regarding pending or potential litigation concerning or relating to code enforcement actions at 2043 Scripture Street, Denton, Texas, and legal matters and actions related thereto. 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 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 City of Denton City Council Agenda May 3, 2011 Page 3 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 1. National Day of Prayer Proclamation 2. Motorcycle Safety and Awareness Month 3. Drinking Water Week in Denton 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1). Dan Adams regarding Ordinance 2010-292. 2). Zorobabel Gomez, Jr. regarding Ordinance 2010-292. 3). Mike Sutton regarding Ordinance 2010-292. 4. 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. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A - K). 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 - K 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 accepting competitive bids and awarding a public works contract for the constriction of a Landscape Equipment Storage Building and Area at the Denton Municipal Airport; providing for the expenditure of funds therefor; and providing an effective date (Bid 4588-awarded to the lowest responsible bidder meeting specification, Caliber Constriction, Inc., in the amount of $327,140). The Airport Advisory Board recommends approval (4-0). B. Consider adoption of an ordinance of the City of Denton, Texas, approving an amendment to a contract dated December 15, 2010 between the City of Denton and Michael Christopher Brown and David Wayne Gray DBA Gray Events Management, LLC for administration of events and programs at the Goldfield Tennis Center; and providing an effective date (RFP 4262-awarded to Gray Events Management, LLC in the amount of $142,000). City of Denton City Council Agenda May 3, 2011 Page 4 C. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Suda Bhagwat from the Downtown Incentive Grant Program not to exceed $7,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (5-0.) D. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Becky and Vince King from the Downtown Incentive Grant Program not to exceed $15,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (5-0). E. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Samuel Solomon from the Downtown Incentive Grant Program not to exceed $7,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (5-0). F. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Vibe Investments, LLC, from the Downtown Incentive Grant Program not to exceed $6,500; and providing for an effective date. No recommendation by the Economic Development Partnership Board. G. Consider a request for an exception to the Noise Ordinance for the level of decibels and the hours of operation for the purpose of a fundraiser with live music on Saturday, May 21, 2011. The fundraiser will benefit the start-up of an independent publication. The exception is requested for extension of the hours of operation for amplified sound from 10:00 p.m. to midnight and for the level of decibels to be increased from 70 decibels to 80 decibels. Due to residential property located east of the event location, staff recommends allowing amplified sound until midnight with sound levels not to exceed 70 decibels. H. Consider a request for an exception to the Noise Ordinance for the level of decibels for the purpose of live music during an art show on Friday, May 13, 2011, from 3:00 p.m. to 10:00 p.m. at 2324 Bolivar Street. The event will provide an opportunity for local artists to show their art work and network with other artists. The exception is requested for an increase in the level of decibels from 70 decibels to 74 decibels. Staff recommends denial of the request. The applicant's location is in the middle of a residential neighborhood. Council has also consistently allowed only 70 decibels for the North Texas State Fair and Rodeo, which is located several blocks west of the applicant's location. L Consider a request for an exception to the noise ordinance for amplified sound on each Sunday in the month of July for the purpose of the Apollo Nights events. The events are scheduled for the following Sundays: July 3, July 10, July 17, and July 24, 2011, from 5:00 p.m. until 10:00 p.m. On July 31, 2011, the event would be from 5:00 p.m. to 11:00 p.m. The request also includes Monday, July 4, 2011, a holiday, from 5:00 p.m. until 10:00 p.m. The events will be held in Fred Moore City of Denton City Council Agenda May 3, 2011 Page 5 Park. There is no request for an increase in the level of decibels. Staff recommends approval of the request for amplified sound on each Sunday in the month of July, as well as the 4th of July holiday. J. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the execution of a Right of Entry and Possession between the City of Denton, Texas and the Denton County Transportation Authority (DCTA) granting DCTA access to the Downtown Denton Transit Center (DDTC) and certain lands surrounding the DDTC located in the Hiram Sisco Survey, Abstract Number 1184, to conduct public transportation operations; and providing an effective date. K. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a first one-year extension to the professional services agreement with Sawko & Burroughs, LLP, for professional services related to collection of delinquent taxes on behalf of the City of Denton; and establishing an effective date. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider nominations/appointments to the City's Economic Development Partnership Board. B. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the constriction of the Lake Lewisville Water Treatment Plant Upgrade Project; providing for the expenditure of funds therefor; and providing an effective date (Bid 4665-awarded to the lowest responsible bidder meeting specification, BAR Constrictors, Inc. in the amount of $32,142,000). The Public Utilities Board recommends approval (6-0). C. Consider adoption of an ordinance authorizing the Mayor to execute a Tax Abatement Agreement with PMFG, Inc., a Delaware Corporation; setting forth all the required terms of the Tax Abatement Agreement in accordance with the terms of Chapter 312 of the Texas Tax Code; setting forth the various conditions precedent to PMFG, Inc. receiving the Tax Abatement; providing for a severability clause; and providing an effective date. The Economic Development Partnership Board recommends approval (6-0). 6. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating a certain area within the city limits of Denton as Peerless Manufacturing Reinvestment Zone X for commercial/industrial tax abatement; establishing the boundaries of such zone; making findings required in accordance with Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto; providing a severability clause; providing for repeal; and providing an effective date. B. Hold a public hearing inviting citizens to comment on the City of Denton's 2011 Action Plan for Housing and Community Development. City of Denton City Council Agenda May 3, 2011 Page 6 7. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1). Nell Yeldell regarding water and soil contamination. 2). Bob Clifton regarding initiative/referendum. 3). Hatice Salih regarding the realities and repercussions of Ordinance No. 2010-292. 4). Eric Mach regarding Ordinance 2010-292 and corruption. 5). Cathy McMullen regarding gas well drilling ordinances. 6). Cameron Cox regarding appreciation to Council and staff for support of Children's Advocacy Center for Denton County. 7). Robert Donnelly regarding the Mayhill Road expansion project. 8). Carolyn Phillips regarding lack of customer service and the petition. 8. CONCLUDING ITEMS A. 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 imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. C. 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 , 2011 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: May 3, 2011 DEPARTMENT: Planning Department ACM: Fred Greene SUBJECT - DCAI0-0008 Sidewalk Exception Receive a report, hold a discussion, and give staff direction concerning proposed amendments to Sections 35.13.7.C, 35.20.2.A.3.c, 35.203.B, 35.20.3.B.1, 35.203.C and 35.23.2 of the Denton Development Code regarding estates lots and sidewalks and/or bicycle facilities. (DCA10-0008) Issue: Sidewalks are required pursuant to Section 35.203.B of the Denton Development Code (DDC). Prior to January 6, 2009, developers and home builders had the option to apply for a variance from the requirement of installing sidewalks through the Planning and Zoning Commission. However, a Code amendment was necessary to bring the DDC into conformity with statutory changes. The Code amendment appropriately replaced what was categorized as an exaction variance with a rough proportionality appeal procedure that's consistent with Texas Local Government Code 212.904. The rough proportionality assessment procedure is contained in Subchapter 35.3 of the DDC. Notwithstanding the requirements of Section 35.203.B of the DDC, there are instances when the absence of sidewalks will not negatively impact a given community. One example is in the case of a low density rural residential development that features large estate style lots. The DDC currently define estate style lots as lots of one (1) acre or greater. The absence of sidewalks in this subdivision type is consistent with the typical rural setting of the surrounding area. Furthermore, this form of residential development generates very little pedestrian traffic to justify the constriction and maintenance cost associated with sidewalks. Given the aforementioned, staff is proposing a Code amendment to Section 35.20.2.A.3.c and 35.20.3.B. The proposed amendments will provide an exception from the installation of sidewalks associated with estate lot subdivision, subject to conditions. Via a work session on April 5, 2011, staff presented the proposed Code amendment. City Council directed staff to reconsider not allowing a variance from the minimum 1 acre lot area requirement; and review the '/2 mile distance requirement associated with a public elementary and secondary schools. As such, staff has made several amendments which are presented in the revised recommendation below. City Council also directed staff to review the potential of adding additional street pavement to the Rural/Suburban street cross section to allow pedestrians and bicyclists to utilize the street along-side vehicles. Staff will be presenting the outcome during the work session. RECOMMENDATION Staff recommends that Subchapter 35.203.B.4 of the DDC be amended to read as follows: B. All developments shall, within a dedicated right-of-way or easement, provide sidewalks and/or bicwle facilities designed and located in accordance with the Truisportation Criteria Manual aid street classification along both sides of all streets within the development, between the ends of courtyard streets/cul de sacs aid sidewalks within adjacent right of ways or open space, along one (1) side of all perimeter streets aid as shown on the Pedestriui Component of the Mobility Plan; except as follows: 1. A development, which is excepted from making perimeter street improvements in accordance with subsection 1) MAc of this section shall not be required to install a sidewalk or bicycle facility along that perimeter street. 2. where unplatted property is required to be platted ill order to obtain a building permit to make any improvements to ui existing building or to construct any additional building to be located ou the property, a sidewalk or bicycle facility shall not be required along an existing perimeter street if: a. The perimeter street is not required to be improved iil accordance with this Code; b. The building improvements would not result iii an increase in the floor area of the existing building or buildings by more than ten (10) percent; c. The building improvements are to be located on the same tract or tracts of lurid, as described by recorded deed iii the real property records of the county, on which the existing building or aiv existing improvements to serve the existing building are located; aid d. The building improvements will not require the construction of additional parking spaces to meet the requirements of the zoning ordinance. 3. Sidewalks or bicwle facilities shall not be required for a replat of property zoned for single- family residential use if the preceding plat covering the same property did not require sideNvelks or bicycle facilities aid a zoning change to a district other thus single funily residential use is not uiticipated. 4. Except for Planned Developments or Master Planned Communities, sidewalks or bicycle facilities are not required along streets fronted by an estate-lot residential subdivision provided that: a. All lots are platted and have a minimum lot area of one (1) acre; and b. None of the lots may have access from a street that serves more than 200 total vehicle trips per day. Staff recommends that Subchapter 35.20.2.A.3.c of the DDC be amended to read as follows: Rural/ Suburban Street. A rural/suburbui street is a street which ~eit-es no more thin 20 single farnily residential lots Adopted geometry stuidards for rural/suburban streets are listed iii the Truisporr,ition Criteria:Nfanual. Page - 2 Staff recommends that Subchapter 35.23.2 of the DDC is amended to add the following definition: Estate Lot: lot that is at least one (1) acre ill size with the purpose of being developed with a slugle- family detached dwelling as the primary use. While reviewing Section 35.20 of the DDC, staff identified subsection references that do not exist. Staff recommends that Subchapter 35.20.3.B.1 and 35.203.C of the DDC be amended to read as follows: 1. 3 developmernr that is exempted from making perimeter street improvements in accordance with subsection 35.20.2.L.4 of this section shall not be required to install a sidewalk or bicycle facility along th, it perimeter street. C. N\'here the developer who would othetW1ise be required to improve an existing unimproved perimeter street to City_ specifications elects to pay to the City the cost of the required improvements as provided for iii subsection 35.20.2.L.3.B of this section, the developer may likewise elect to pay to the City the cost of any required side~\, ilk or bicycle facility improvements for that street. If the money paid for the sidewalk or bicycle f icility improvements is not used for that purpose within fire (5) years of payment, the ftunds shall be returned to the person making the improvements. Staff recommends that Subchapter 35.13.7.C of the DDC be amended to read as follows: All development, with the exception of estate style single-family subdivisions shall be required to plant street trees ill accordance with the following standards and in accordance to the Site Design Criteri,i M,nu.il. Estate style single-family subdi~-isions ice those subdi~-isions 1 11 1, , utilize b,icr, ditches ts ~Ir,tiil ge tiong streets, on public or prig kite streets. 7 b~~ t )rector of Pl,inniiig kind Deg elopment mar ipprove alternative plans due to special site condition>, hich may, for reasons such as safety, site conditions, or existing trees on the lot, affect the ability to meet these regulations. PRIOR ACTION/REVIEW 1. January 19, 2011 Planning and Zoning Commission Work Session 2. February 23, 2011 Planning and Zoning Commission Public Hearing 3. April 5, 2011 City Council Work Session OPTIONS 1. Direct staff to proceed with the amendments as presented 2. Direct staff to proceed with the amendments with changes 3. Direct staff to take another direction RECOMMENDATION The Planning and Zoning Commission recommends approval of this request (7-0). Staff recommends approval of this proposed Code amendment. EXHIBITS 1. February 23, 2011 Planning and Zoning Commission Minutes Page-3 Prepared by: PQC4~1 Ron Menguita, AICP Development Review Liaison Respectfully submitted: Mark Cunningham, AICP, CPM Planning and Development Department Director Page - 4 EXHIBIT 1 PLANNING AND ZONING MINUTES February 23, 2011 After determining that a quorum was present, the Planning and Zoning Commission convened in a Work Session on Wednesday, January 5, 2011 in the Council Chamber at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Chairman Walter Eagleton, Commissioners: Jay Thomas, Brian Bentley, Thom Reece, Jean Schaake, John Ryan and Patrice Lyke. ABSENT: None. STAFF: Fred Greene, Mark Cunningham, Jerry Drake, Chuck Russell, Jennifer Coles, Cindy Jackson, Ron Menguita, P.S. Arora, and Johnna Matthews. Chairman Eagleton convened the Work Session at 5:10 p.m. 2. Receive a report, hold a discussion, and give staff direction concerning proposed amendments to Sections 35.13.7.C, 35.20.2.A.3.c, 35.203.B, 35.203.13.1, 35.20.3.C and 35.23.2 of the Denton Development Code regardin, estates lots and sidewalks and/or bicycle facilities. (DCA10-0008, Sidewalk Exception, Ron Menguita) Refer to Public Hearin( item 5C for backup. Menguita provided revised language for the proposed code amendment. This is the second time that this Commission has seen the language and it has been revised with the comments from the last work session. The purpose of this code amendment is to provide an opportunity to develop estate lots without the requirement to install sidewalks. Bentley questioned out corner lots would be handled if the side yard is on a very busy street that would typically have a sidewalk. Menguita stated a sidewalk would still be required along the adjacent street if that street is an arterial street, however, no sidewalk would be required in front of the property if that road meets the criteria. Drake pointed out that all of the criteria for this proposed language must be met in order to waive the sidewalk requirement. Lyke questioned the distance from elementary or secondary school that states the requirement is a half mile distance or more as a criteria to wave the sidewalk requirement, while the Denton Independent School District requires two miles. Menguita stated that the distance came from a section in the code that requires a pedestrian traffic impact analysis (TIA) for development proposed within one half miles of an elementary or secondary school. Cunningham stated that estate lots are more likely to be in rural areas where there will be minimal pedestrian traffic. Lyke stated that in 10 or 20 years that would likely change and the area would be more dense than when it was originally developed. Lyke also questioned if the more than 200 vehicle trip count would be taken prior to development, in which case the count would be underestimated. Menguita stated that the TIA Page - 5 would be performed on the area during constriction and that is based on what the fullest build out potential could be. Menguita summarized the changes as being language clean up, reference corrections, deletion of contradicting requirements and adding the definition of an estate lot. Menguita also stated that the Engineering group is working on revising the Transportation Criteria Manual. Staff and the Commission additionally discussed the language for the definition of an estate lot. Eagleton suggested that the word "sole" be changed to "primary". The corrected definition will read: A lot that is at least one (1) acre in size with the purpose of being developed with a single-family detached dwelling as the primary use. 5. PUBLIC HEARINGS: B. Hold a public hearing and consider making a recommendation to City Council concerning proposed amendments to Sections 35.13.7.C, 35.20.2.A3.c, 35.203.13, 35.203.13.1, 35.20.3.C and 35.23.2 of the Denton Development Code regarding estates lots and sidewalks and/or bicycle facilities. (DC 10-0008, Sidewalk Exception, Ron Menguita) Menguita presented this item as discussed in the Work Session with the modification of the language of the definition of Estate Lot and the addition of the original deletion of the words "are those subdivisions" under the recommendation for changes to language in Subchapter 35.13.7.C. Chairman Eagleton opened the public hearing. No one was present to speak in favor or opposition. Thomas motioned approval of this request with the two corrections mentioned since the Work Session with a second by Ryan. 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" Commissioner Jean Schaake "aye". Motion approved (7-0). Page - 6 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Environmental Services and Sustainability/Planning ACM: Howard Martin, Utilities 349-8232 ~V_ SUBJECT - DCA10-0010 Wind Energy Conversion Systems Receive a report, hold a discussion, and give staff direction concerning the creation of a new Division 3 to Chapter 26, Article III of the Denton Code of Ordinances, regulating the use and interconnection of Wind Energy Conservation Systems (WECS) and concerning proposed amendments to Subchapter 35.5 of the Denton Development Code regarding use restrictions for both Free-standing Monopole Support Stricture and Building-mounted WECS. The Board recommended approval of Chapter 26 elements of the draft WECS ordinance (4-0). The Planning and Zoning Commission recommends approval of the proposed amendments to Subchapter 35.5 of the Denton Development Code (7-0). (DCA10-0010) BACKGROUND On September 13, 2010, staff provided a presentation to the Committee on the Environment (COE) concerning Wind Energy Conversion Systems (WECS). Following the presentation, staff was directed to draft a WECS ordinance and bring this information back to the Committee for further discussion and direction. Over the next several months, Environmental Services, Planning, Denton Municipal Electric, and Legal staff worked together to draft this WECS ordinance (Exhibit 1). The draft WECS ordinance was presented to the COE on March 7, 2011. During this meeting, the COE directed staff to bring the WECS item to the Public Utility Board for consideration. On March 14, 2011, the draft WECS ordinance was presented to the Public Utility Board. The Public Utility Board recommended approval (4-0) of the proposed general regulations in Section 26-116. During their consideration, the Public Utility Board suggested that the NR-1 and IC-G land use categories be changed from "a permitted use with limitations" to "allowed with an approved Specific Use Permit (SUP)." The Public Utility Board also suggested that the PUB minutes state that the Board had extensive discussion about this issue, and realizes that there is a divergence of opinion about the aesthetics of WECS and the appropriateness of these devices in various land use categories as a "permitted use" versus "by SUP". On April 6, 2011 staff presented the draft WECS ordinance to the Planning and Zoning Commission during a work session. The Planning and Zoning Commission directed staff to move forward with the proposed amendments to Subchapter 35.5 with a request to change the maximum WECS height for the NR-1, NR-2, NR-3, NR-4, NR-6, DR-1 and RCR-1 zoning districts from 50 feet to 55 feet. All other remaining zoning districts will limit WECS to be 10 feet above the maximum building height. 1 On April 20, 2011 staff presented the draft WECS ordinance to the Planning and Zoning Commission during a public hearing. The Planning and Zoning Commission recommended approval (7-0) of the proposed amendments to Subchapter 35.5 of the Denton Development Code as presented. As a brief summary, the proposed WECS ordinance defines terms specific to WECS and then outlines general regulations in Section 26-116 of the City of Denton Code of Ordinances. Key components of the general regulations include, but not limited to: • Requirements to fully comply with DME's interconnect provisions, or demonstrate the system is not interconnected. Applicants are also required to provide proof of interconnect agreement with another service provider if the applicant is not a customer of DME; • Requirements to obtain a WECS permit from the Building Official, along with paying appropriate fees, prior to installation of the WECS; • Height requirements based on zoning categories (see Tables in Section 4 of draft ordinance); • Location and setback requirements regarding easements, property lines, overhead utility lines, trees, other strictures or impediments, etc.; • Height and setback requirements for building mounted WECS; • Sound pressure level requirements; • Lighting restrictions; • Aesthetics, including color, signage, blade glint / flicker, and design; • Safety issues including tower design, braking, grounding / shielding, electronic interference, climbing apparatus, engineering certification, and compliance with City Building Codes and Safety Standards; • Environmentally Sensitive Areas regulations for WECS; • Maintenance requirements; and • Removal requirements / abandonment provisions. The draft WECS ordinance also provides proposed amendments to Subchapter 35.5 of the Denton Development Code regarding use restrictions for both Free-standing Monopole Support Stricture and Building-mounted WECS. The use restrictions are presented in Section 4 and 5 of the draft ordinance (see Exhibit 1). 2 Free-standing Monopole Support Stricture WEC S Staff is proposing to permit Free-standing Monopole Support,Structure WECS with limitation of L(41) for lots found in the RD-5, RC, and NR-1 zoning districts. All remaining zoning districts will require an approved SUP. Limitation L(41) requires lots where the proposed WECS will be located to have a minimum lot area of two (2) acres. In addition, the maximum number of permitted WECS by right is one. If multiple WECS are proposed, an approved SUP is required. Building-mounted WECS Staff is proposing to permit Building-mounted WECS with limitation L(42) for lots found in the RD-5, RC, NR-1, and IC-G zoning districts. All remaining zoning districts will require an approved SUP. Limitation L(42) limits building-mounted WECS to no higher than ten (10) feet above where the WECS is mounted on the building. The height shall be measured from the base of the WECS where it is mounted on the building to the highest point of the arc of the blades' elevation. If the WECS does not use blades, then height is measured from the base of the WECS where is mounted on the building to the highest point of the WECS. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 2, 2007 Committee on the Environment (Presented to meet request of Committee Member Thomson) June 12, 2007 Committee on the Environment (ACM update, presented in response to requests for additional information during April 2, 2007 meeting) Sept. 13, 2010 Committee on the Environment (Item for individual consideration) March 7, 2011 Committee on the Environment (Item for individual consideration) March 12, 2011 Public Utility Board (Item for individual consideration) April 6, 2011 Planning and Zoning Commission Work Session April 20, 2011 Planning and Zoning Commission Public Hearing OPTIONS 1. Direct staff to bring the WECS ordinance to the City Council for public hearing as submitted 2. Direct staff to bring the WECS ordinance to the City Council for public hearing with modifications 3. Recommend Denial 4. Postpone consideration 5. Table item RECOMMENDATIONS The Public Utility Board recommended approval of the Chapter 26 elements of the draft WECS ordinance (4-0). The Planning and Zoning Commission recommends approval of the proposed amendments to Subchapter 35.5 of the Denton Development Code (7-0). Staff recommends Option 1. EXHIBITS 1. Draft Ordinance 2. Staff Presentation 3. Public Utility Board Minutes 4. Planning and Zoning Commission Work Session Minutes Respectfully prepared and submitted by, s Kenneth Banks Director, Environmental Services and Sustainability, and Ron Menguita Development Review Committee Liaison 4 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc ORDINANCE NO. 2011- AN ORDINANCE OF THE CITY OF DENTON, TEXAS, CREATING A NEW DIVISION 3 TO CHAPTER 26, ARTICLE III OF THE DENTON CODE OF ORDINANCES, REGULATING THE USE AND INTERCONNECTION OF WIND ENERGY CONVERSION SYSTEMS; AMENDING SUBCHAPTER 35.5 OF THE DENTON DEVELOPMENT CODE TO SPECIFY ZONING RESTRICTIONS APPLICABLE TO WIND ENERGY CONVERSION SYSTEMS AS A USE; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, wind energy is an abundant, renewable, and nonpolluting energy resource and its conversion to electricity may assist with reducing dependence on nonrenewable energy resources and decrease air and water pollution resulting from conventional energy sources; and WHEREAS, wind energy conversion systems may assist with reducing peak power demands and help diversify citizens' energy supply; and WHEREAS, while the City encourages renewable and nonpolluting energy sources, wind energy conversion systems used to produce electricity must meet the City's goal of protecting and promoting public health, safety, and welfare of the community; and WHEREAS, the City recognizes that it is in the public interest to permit wind energy conversion systems consistent with the regulations hereinafter adopted by this Ordinance; and WHEREAS, based upon a survey and review of experiences in other communities, the City finds that the unregulated installation of wind energy systems within the City carries the potential for threatening the health safety and comfort of the citizens, and can have negative impacts due to noise and visual aesthetics. Due notice was given to the public of a public hearing for the purpose of determining whether the City Council of the City of Denton, Texas should enact an Ordinance controlling Wind Energy Conversion Systems in the City of Denton, Texas; and WHEREAS, the Public Utilities Board of the City of Denton, Texas has recommended approval of the standards contained in Section 3 of this ordinance; and WHEREAS, after a public hearing held in accordance with State law, the Planning and Zoning Commission of the City of Denton, Texas has recommended approval of the provisions contained within Sections 4 and 5 of this ordinance; and WHEREAS, the City Council of the City of Denton, Texas has considered the matter and deems it appropriate and in the best interest of the public and the City to regulate the installation and operation of Wind Energy Conversion Systems by passage of this Ordinance; NOW THEREFORE, Page - 1 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The facts and recitations contained and cited in the preamble hereof are hereby found and determined to be true and correct and are incorporated herein by reference. SECTION 2. The City Council finds that is it in the best interests of public health, safety and welfare to define standards governing the installation and operation of wind energy conversion systems. SECTION 3. Article III, Division 3 of Chapter 26 of the Denton Code entitled "Wind Energy Conversion System" is herby added, commencing with section 26-115, to read as follows: DIVISION 3. WIND ENERGY CONVERSION SYSTEMS 26-115 Definitions. For the purposes of this division, the following terms, phrases, words, abbreviations, and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in their present tense include the future tense, words in plural include the singular, and words in the singular include the plural. The word "shall" is always mandatory and not merely directory. Words not defined shall be given their common and ordinary meaning. ANSI means the American National Standards Institute. Blade arc sphere is the three-dimensional sphere in the air created by the 360 degree rotation of the blades combined with the 360 degree rotation of the WECS nacelle. Building-mounted WECS is any WECS that is mounted directly to a building's roof, chimney, vent stack, cooling tower, dome, spire, or other similar stricture, rather than a free-standing monopole support stricture. Decibel means the unit of measure used to express the magnitude of sound pressure and sound intensity. Free-standing WECS is any WECS that is self-supporting via a monopole support system or is and not mounted to a building or stricture in any way. FAA means the Federal Aviation Administration. Height, for the purposes of this section, is measured from the average natural ground level to the highest point of the arc of the blades' elevation for free standing WECS. If a free-standing WECS does not use blades, then height is measured from the average natural ground level to the highest point of the WECS. For building-mounted WECS, the height shall be measured from the base of the WECS where it is mounted on the building to the highest point of the arc of the blades' elevation. If the building-mounted WECS does not use blades, then height is measured Page - 2 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc from the base of the WECS where is mounted on the building to the highest point of the WECS. See "Limitations", Subchapter 35.5 of Denton Development Code, for additional information regarding height of building mounted WECS. Nacelle is a streamlined enclosure that connects the blades and WECS hub to the WECS support device and houses specific mechanical parts including, but not limited to braking mechanisms, shafts, gearboxes and generators. ,Sound Pressure means the average rate at which sound energy is transmitted through a unit area in a specific direction, as measured at a receiver. ,Sound Pressure Level means the sound pressure as measured on a logarithmic scale and reported in decibels. Tower Height shall mean the height above grade of the fixed portion of the tower, excluding the wind turbine and blades. Turbine shall mean the parts of a Wind Energy System including, but not limited to, the blades, generator and tail. Wind Energy Conversion Sv.wm or WECS shall mean a system that converts wind energy into electricity through the use of a wind turbine, a nacelle, associated control or conversion electronics, and (depending on design) a tower. A WECS is intended for on-site production of electricity. 26-116 General Regulations The following general regulations apply to all WECS located within the city limits. Pre-existing WECS installations lawfully in existence at the time of the enactment of this Ordinance shall not be required to meet the requirements established herein, other than those contained in Subsections (z) and (aa) below. To be considered lawful, the owner of the WECS must provide documentation proofing that the subject WECS was in existence at the time of the enactment of this Ordinance. If no documentation is available, the burden of proof shall be on the owner of the WECS. (a) Zoning restrictions imposed upon WECS installations are as specified in the Denton Development Code.' (b) Compliance with Denton Municipal Electric (DME) Interconnection Provisions. The installation of any WECS that is within the service area of Denton Municipal Electric (DME) shall comply with the DME "Agreement for Interconnection and Parallel Operation of Distributed Generation" and shall abide by the conditions of the "Agreement for Interconnection and Parallel Operation of Distributed Generation". No WECS shall be installed prior to ' CROSS REFERENCE - Zoning restrictions, generally, see Subchapter 35.5 of Denton Development Code. Page - 3 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc submitting an Application for Interconnection and Parallel Operation of Distributed Generation with DME and having a fully executed Agreement for Interconnection and Parallel Operation of Distributed Generation with DME. (c) WW Permit Required. No WECS shall be installed without first obtaining a WECS permit from the Building Official, or his/her designee. The permit's application shall be submitted with the required numbers and types of plans as deemed necessary by the Building Official to adequately review the proposal. An application for building permit must be accompanied by: (1) The appropriate permit fees as established by the City; (2) A site plan of the proposed WECS at a scale no smaller than F = 30'. The site plan shall include: (i) A survey and legal description of the parcel where the proposed WECS will be located; (ii) A plan view layout of the proposed WECS clearly showing: • The location of the System; • All components of the System; • Distances to property lines; • Required setbacks; • Adjacent land uses and zoning designations; • Existing strictures on the site; • Required screening of the base of the tower stricture; • Natural features such as watercourses, trees, and Environmentally Sensitive Areas (ESAs); • Existing overhead and underground utility lines including any pad -mounted equipment and appurtenances; and • Easements; (3) Elevation drawings showing: • The design and height of the proposed WECS; • Detailed drawings of all System components; and • A profile view of the setback distances and distances to property lines; (4) A line drawing of the electrical components of the System in sufficient detail to allow for a determination that the manner of installation conforms to the Electrical Code; (5) Standard installation drawings of the WECS, including the tower, base, and footings. An engineering analysis of the tower showing compliance with the Building Code and certified by a licensed professional engineer registered in the State of Texas shall also be submitted; and (6) Evidence of notice to utility company as required by Subsection (t) below. Page - 4 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc An issued permit shall expire if the WECS is not installed and functioning within six (6) months, including completion of the required inspection, from the date the permit is issued; or, if the WECS is out-of-service or otherwise unused for a continuous 12-month period. (d) Construction Standards. A WECS must be installed according to the manufacturer's recommendations and under the seal of a professional engineer registered in the State of Texas, and may not exceed the manufacturer's recommendations for maximum tower height. Additionally, all components of a WECS shall comply with applicable state and local building codes. (e) Location and,Setback. (1) Free-standing monopole support stricture: a. Free standing WECS shall be located behind the front elevation of the primary stricture on the lot. b. No part of the WECS, including blades, may extend into any required yard setback or utility easement. C. The horizontal separation from all property lines shall not be less than the height of the WECS, plus 10 additional feet. d. Free standing WECS shall have a setback distance equal to 1.25 times the height of the WECS from any overhead utility lines. e. Free-standing WECS blade arc spheres shall have a minimum thirty (30) foot clearance from any stricture or any other impediment. f. Free standing WECS shall have a minimum thirty (30) foot setback distance from any tree. (2) Building-mounted: a. Building-mounted WECS shall be located behind the front elevation of the primary stricture on the lot. b. No part of the WECS, including blades, may extend into any required yard setback or utility easement. C. The horizontal separation from all property lines shall not be less than the height of the WECS, plus 10 additional feet. Building-mounted WECS shall have a setback distance equal to 1.25 times the height of the WECS from any overhead utility lines. Page - 5 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc d. Building-mounted WECS blade arc spheres shall have a minimum five (5) foot clearance from any stricture or any other impediment. (f) Principal,Structure Required on Lot. A WECS shall be erected on a lot only after a principal stricture has been constricted on the lot. The WECS shall serve the strictures (principal or accessory) on the lot. (g) Sound Pressure Levels. Sound Pressure Levels shall not exceed fifty decibels (50dBA) measured from the property line closest to the WECS. If the existing ambient noise is suspected of exceeding 50dBA, that applicant shall establish and submit to the City, a continuous seventy- two (72) hour Ambient Noise Level measured from the property line closest to the proposed location of the WECS. The seventy-two (72) hour time span shall include at least one (1) twenty-four (24) hour reading during either a Saturday or Sunday. If the Ambient Noise Level established and submitted to the City is higher than fifty decibels (50dBA), the noise generated from the WECS may not exceed the established Ambient Noise Level by more than five decibels (5dBA). (h) Lights. Lighting not required by the FAA is prohibited. When lighting is required by the FAA, such lighting shall not exceed the minimum requirements of said administration. A tower stricture may be artificially lighted ONLY with steady-burning red obstruction lights (FAA type L-810) or flashing red obstruction lights (FAA type L-864) flashing no faster than 20 flashes per minute. Flashing red obstruction lights (FAA type L-864) flashing faster than 20 flashes per minute, medium intensity flashing white obstruction lights (FAA type L-865 or L-866), high intensity flashing white lights (FAA type L-856 or L-857) or dual flashing red obstruction lights and medium intensity flashing white obstruction lights (FAA types L-864/L-865) may be used ONLY when the FAA specifies that the specific lighting pattern is the ONLY lighting pattern acceptable to promote aviation safety and when the FAA refuses the applicant's request for authorization to use the lighting required by the City herein. Upward lighting, flood lights or other lighting not strictly required by the FAA is prohibited. If lighting is required by the FAA, the applicant shall submit written evidence of this requirement as a part of the application. (i) Signs. No advertising or other signs shall be allowed on a WECS, other than operational warnings and instructions affixed by the manufacturer. 0) Prohibited in Easements. No portion of a WECS shall be placed in any public easement. (k) ,Screening. WECS are exempted from the screening requirements outlined in Section 35.13.9.13 of the Denton Development Code. (1) Electronic Interference. All WECS shall be filtered, shielded or otherwise designed and constricted so as not to cause electrical, radio frequency, television, and other communication signal interference. Should interference occur or be detected in the future, the WECS shall cease operation until said interference has be addressed and corrected by the WECS owner and operator. Page - 6 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc (m) Color. All WECS shall be white, grey, or silver color. The finish shall be a dull or matte finish so as to reduce the possibility of any glares or reflections and to minimize the visual obtrusiveness of the WECS. (n) Tower Design. A WECS tower shall be constricted in a monopole design of tubular steel and shall be self-supporting without the use of guy wires or other similar features. (o) Braking. All WECS shall be equipped with a manual and/or an automatic braking device capable of stopping the WECS operation in high winds. (p) Grounding and Shielding. All WECS shall be grounded and shielded to protect against natural lightning strikes and stray voltage, including the blades, in accordance with the Electrical Code. (q) Load Requirements. All WECS shall be designed to withstand loads including, but not limited to ice and wind, as detailed in the Building Code. (r) Location in Environmentally Sensitive Areas. If located within an Environmentally Sensitive Area ESA categories defined by Denton Development Code 35.17.4, WECS may only be allowed in Developed or Undeveloped floodplain, and must be located outside of any designated stream buffer or water related habitats. All WECS proposed to be installed within floodplains shall have approval of the City of Denton Floodplain Administrator or his/her designee and, where applicable, the U.S. Army Corps of Engineers. Applicants requesting such approval shall undertake all measures required by the Floodplain Administrator or his/her designee to protect the WECS from damage from potential flooding, and compensate for any loss of valley storage resulting from the installation of the WECS. Following installation, the applicant shall re- vegetate the site in accordance with the specifications of the Watershed Protection Manager, or designee. (s) Flicker and Blade Glint. WECS shall be sited to prevent the impact of blade glint and minimize the impact of shadow flicker any inhabited strictures (except for the owner's) or City roadways. WECS found to be in violation of this condition shall be shut down until the flicker or glint problem is remedied. (t) Notice to Utilitv Companv on Grid-Interconnected Svstems. No WECS, proposed for interconnection to the power grid or electric utility infrastructure, may be installed until an agreement authorizing such interconnection has been finalized and approved by the electric utility providing service to the owner. Completely off-grid systems shall be exempt from this requirement only upon demonstrating, to the satisfaction of the electric utility serving the owner, that the system is truly off-grid and cannot inadvertently be tied into the electric utility grid. (u) City Building Codes ' Safety Standards. To ensure the structural integrity of a WECS, the owner of such System must ensure that it is maintained in compliance with all provisions of the City of Denton's building code and zoning regulations. If, upon inspection, the City concludes that a WECS fails to comply with such codes and regulations, or otherwise constitutes a danger to persons or property, then upon written notice to the owner of the WECS, the owner shall have Page - 7 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc thirty (30) calendar days to bring the WECS into compliance with applicable standards. Failure to bring the WECS into compliance shall constitute grounds for the removal of the WECS at the owner's expense. This notice requirement shall not preclude immediate action by the Building Official as allowed by law, if required in the interest of public safety. (v) Certification by Engineer. The application shall include a standard drawing and engineer analysis of the WECS tower or building attachment, and certification by a professional mechanical, structural, or civil engineer. (w) Climbing Apparatus. No free-standing WECS shall include a ladder or any other tower climbing apparatus within 12 feet of the ground, unless such device is secured from access by a locked device approved by the Building Official. (x) Other Regulations. All WECS shall be adequately designed structurally, electrically, and in all other respects to accommodate the safety and general well being of the public. All WECS shall be required to meet all applicable regulations specified in the Building Code, Electrical Code, and any other applicable regulatory documents. All tower heights, plus the additional height associated with blades, must be in compliance with Federal Aviation Administration requirements. (y) Maintenance. All WECS shall be maintained at all times according to the manufacturer's specifications and all other applicable regulations including, but not limited to the Building Code and the Electrical Code. The appearance of a WECS shall also be maintained, including, but not limited to, painting, fencing/screening, and maintenance of structural integrity. (z) Removal of Unsafe Wind Energy Conversion Sv.wm. WECS that have, due to damage, lack of maintenance or repair, or other circumstances, become unstable, lean significantly out-of- plumb, or pose a danger of collapse shall be removed or brought into repair within 30 days following notice given by the Building Official. If the Wind Energy System is not made safe or removed within 30 days of notification from the City, the City may remove the WECS and place a lien upon the property for the costs of the removal. However, at any time the Building Official may order immediate action to prevent or remove an imminent threat to public safety or property. (aa) Abandonment. (1) At such time as an owner abandons, discontinues, or is required to discontinue, the operation of a WECS, such owner must notify the Building Official of the City of Denton by certified U. S. mail of the proposed date of abandonment or discontinuation of operations. Such notice shall be given no less than 30 days prior to abandonment or discontinuation of operations. Owner shall also provide written notification to all interconnected electric service providers, in accordance with the terms of the governing interconnection agreement. (2) In the event that an owner fails to give such notice, the WECS shall be considered abandoned if the WECS is not used to generate electricity for a continuous period of Page - 8 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc twelve (12) months, unless the owner of said WECS provides proof of operation, on at least a quarterly basis, for the period that the WECS is being considered abandoned. (3) Upon abandonment or discontinuation of use, the person who constricted the WECS or the person who operated the WECS or the property owner shall physically remove the WECS within 90 days from the date of abandonment or discontinuation of use. "Physically remove" shall include, but not be limited to: (i) Removal of the tower, turbine and all other components of the WECS; and (ii) Transportation of the tower, turbine and all other components of the WECS to an appropriate disposal site. (4) The owner of the WECS shall restore the site to its pre-constriction condition. (5) If a party as stated in Subsection (3) herein fails to remove a WECS in accordance with this Section, the City shall have the authority to enter the subject property and physically remove the WECS as a nuisance, consistent with statutory authority and the procedures established in Article XI, Chapter 17 of the Denton Code. Costs for the removal of the WECS shall be charged to the landowner of record in the event the City must remove the WECS, and the City may place a lien on the property for such costs of removal. SECTION 4. The use tables set forth in subchapter 35.5 of the Denton Development Code shall be amended to reflect the additional use restrictions reflected in the table below (existing use restrictions remain as written). The Code publisher may modify the manner in which these use allowances and prohibitions are presented and published, to maintain clarity and consistency with other Code provisions. Institutional Land Use Categories RD-5 RC WECS (Free-standing Monopole Support L(41) L(41) Structure) WECS (Building-mounted) L(42) L(42) P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations RD-5 RC Maximum building height 65 feet 65 feet Maximum WECS height 75 feet 75 feet Categories NRA NR-2 NR-3 NR-4 NR-6 NRMU- NRMU Institutional Land Use WECS (Free-standing Monopole Support L(41) SUP SUP SUP SUP SUP SUP Structure) Page - 9 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc WECS (Building-mounted) L(42) SUP SUP SUP SUP SUP SUP P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 NR-1 NR-2 NR-3 NR-4 NR-6 NRMU- NRMU General Regulations 12 Maximum building height 40 feet 40 feet 40 feet 40 feet 40 feet 40 feet 65 feet Maximum WECS height 55 feet 55 feet 55 feet 55 feet 55 feet 55 feet 75 feet D- DR-2 Institutional Land Use Categories WECS (Free-standing Monopole Support SUP SUP SUP SUP Structure) WECS (Building-mounted) SUP SUP SUP SUP P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations DR-1 DR-2 DC-N DC-G Maximum building height 40 feet 45 feet 100 feet/ 100 feet/ L(33) L(33) Maximum WECS height 55 feet 55 feet 110 feet/ 110 feet/ L(33) L(33) Categories Institutional Land Use WECS (Free-standing Monopole Support SUP SUP Structure) WECS (Building-mounted) SUP SUP P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations CM-G CM-E Maximum building height 65 feet 65 feet Maximum WECS height 75 feet 75 feet Categories Institutional Land Use WECS (Free-standing Monopole Support SUP SUP SUP SUP Structure) WECS (Building-mounted) SUP SUP SUP SUP Page - 10 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations RCR-1 RCR-2 RCC-N RCC-D Maximum building height 40 feet 50 feet 65 feet 100 feet Maximum WECS height 55 feet 60 feet 75 feet 110 feet Categories Institutional Land Use WECS (Free-standing Monopole Support 7SU 7SU Structure) WECS (Building-mounted) P= P ermitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations EC-C EC-1 Maximum building height 100 feet 65 feet Maximum WECS height 110 feet 75 feet Categories Institutional Land Use WECS (Free-standing Monopole Support SUP SUP Structure) WECS (Building-mounted) SUP L (42) P= Permitted, N=not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 General Regulations IC-E IC-G Maximum building height 100 feet 140 feet Maximum WECS height 110 feet 150 feet SECTION 5. Section 35.5.8 shall be amended to add the following limitations. L(41) = Lots where the proposed N%ECS will be located shall have a minimum lot area of two (2) acres. A maximum of one (1) N%ECS is permitted by right. Multiple N%ECS are permitted only with approval of a StTp. L(42) = Building-mounted N%ECS may not extend higher than ten (10) feet above where the N%ECS is mounted on the building. The height shall be measured from the base of the N%ECS where it is mounted on the building to the highest point of the arc of the blades' elevation. If the N%ECS does not use blades, then height is measured from the base of the N%ECS where is mounted on the building to the highest point of the N%ECS Page - 11 c:\documents and settings\106761\local settings\temporary internet files\content.outlook\4b8m8veo\exhibit 1 wecs ordinance council work session.doc SECTION 6. 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 7. 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 12011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page - 12 W i I_-la~m~~o~ mu,tltaT~~M,ICBto~~e>~ryuuu~rs , I N M 4 .2 n O vT 141 In. r i beA ~r 4 ~ ~1 l t t i t 5 it I~ ~P ~ ' 4'l ~l L1 II l' ~ i I l',. 1 }l 11~, { 1 r q r C4Z; vl `.N P-{ U O ct p cn N l O N ct N c+-a bA N w G -4 O a' CAA c+ ct ' N C: 4-J O QW) ¢ D 'N O Ct 40 N pap N N ~ bA N Lid O I~ c~ a~ 73 bA ~ ~ 4- ;Z ;Z o N ~ ~ ~ „i k i ct o v1 O ct O ct 0 U U O N U O W ct l ,A AIM, 0: i~eM ~ Itt.~ ~µj ttJ l ~ k ~ ~ 'Zj v1 • O O N ct O U U v1 ct ' U by N O O O , ► to e A O . U ct o a~ . r, W ct ;4 ct 4-4 V ct W • ~ C~ ct o ct Ct I~ rl1 ct v N ct a~ C~ ' O I I c O +-a rf +-J O 0 4- N _0 -0 0 Ln r.,4 O -0 O O 4 N O v O Ln O E E N E a) E ~Ln O - E m - O O a N o U Q ~ ;moo u > O ° O OR* ° a~ m i ;moo U _0 O +-a CL O a M U +a O 0 0 U O v 0) a) c~ W E E > _0 O 0 E v O > i u. E C!1 O ~ O v d ct ct O O W c W c ~ O ct ct r4-4l1 ~ r~11 ~ E p ct EXHIBIT 3 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 March 14, 2011 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, March 14, 2011 at 9:03 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton. 9 10 Present: Chair Dick Smith, Phil Gallivan, Barbara Russell John Baines, Randy Robinson 11 (arrived at 9:06 departed at 10:20) 12 13 Ex Officio Member: 14 George Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 Absent: Bill Grubbs (excused), Vice Chair Bill Cheek (unexcused) 18 19 OPEN MEETING: 20 21 ITEMS FOR INDIVIDUAL CONSIDERATION: 22 23 4) Receive a report, hold a discussion, and give staff direction concerning the creation of a new 24 Division 3 to Chapter 26, Article III of the Denton Code of Ordinances, regulating the use 25 and interconnection of Wind Energy Conservation Systems. 26 27 Howard Martin stated that Kenneth Banks, Director of Environmental Services and 28 Sustainability, has been working on this item primarily through the Committee on the 29 Environment. They are the ones that were primarily interested in this item. Banks made a 30 PowerPoint presentation. Banks stated that he was here to talk about the wind energy conversion 31 systems. Staff has been working on code language for this item. What this is about is adding 32 code language to chapter 26 of the Denton Code of Ordinances to allow for the installation and 33 operation of the WECS devices. The Committee on the Environment first heard of this back in 34 2007. At the time the issue was talked about and didn't go much further. Recently the planning 35 department has begun to experience request of installation these types of devices. Staff has 36 conducted some studies throughout the metroplex and has determined quite a few cities that are 37 adopting these ordinances. Basically the code is fairly complicated; Banks has tried to bring out 38 the major elements of the code. Martin asked Banks to explain chapter 26. Banks stated there 39 are two main regulatory tools in the City the Denton Development Code and the Code of 40 Ordinances. The Denton Development Code predominately dealing with new development 41 occurring in the City. The Code of Ordinances is the regulatory tool that deals mainly with 42 operational type issues. Chapter 26 deals predominately with utilities. Member Gallivan 43 asked if this applies to commercial as well as residential. Banks responded that it does. 44 These types of devices have several things to about: aesthetics, safety, noise, blade glint, and 45 interconnect agreement with DME. The key components: Zoning limitations as specified in the 46 Denton Development Code. Note that RD-5, RC, NR1 land use categories allow both building 47 mounted and free standing WECS under limitations L(41) and L(42), while IC-G allows building Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 2 of 8 1 mounted WECS under limitation L(42). All other land use categories require a Specific Use 2 Permit (SUP) for either free standing or building mounted WECS. Applicants must comply with 3 DME's interconnect provisions, or demonstrate the system is not interconnected. Applicants are 4 required to provide proof of interconnect agreement with another service provider if the 5 applicant is not a customer of DME. Applicants must obtain a WECS permit from the Building 6 Official, along with paying appropriate fees, prior to installation of the WECS; Height 7 requirements based on zoning categories (maximum height, plus 10 ft.). 8 9 Member Russell stated that she knows there are references of other cities that have such 10 ordinances. Did you establish these fees are they typical of what is charged in other areas? 11 How did you arrive at the fees? Banks stated that they arrived at the fees simply by going to 12 the building official and asking what types of permits would be needed in order to have one of 13 these devices installed. He had a series of permits both on the residential and commercial side 14 that needs to be obtained. The fees were simply derived from gathering those existing permits 15 and amassing the fees associated with those permits. Staff did not do any cross comparison with 16 any other city. Banks stated that he can look in to that. Member Russell stated that she 17 would be interested in knowing that. 18 19 Banks went on to say that the other key components are: location and setback requirements 20 regarding easements, property lines, overhead utility lines, trees, other strictures or impediments, 21 etc.; height and setback requirements for building mounted WECS; sound pressure level 22 requirements; Lighting restrictions / FAA compliance; aesthetics, including color, signage, blade 23 glint / flicker, and design; Safety issues including tower design, braking, grounding / shielding, 24 electronic interference, climbing apparatus, engineering certification, and compliance with City 25 Building Codes and Safety Standards; Environmentally Sensitive Areas regulations for WECS; 26 Maintenance requirements; and Removal requirements / abandonment provisions. 27 28 Chair Smith asked for clarification; the NR1 is the only residential zoning that the WECS 29 would be permitted in. Banks stated that it is the only one of the neighborhood residential 30 category. RD5 is a rural residential category. NR1 is one stricture located on a 2 acre minimum 31 property size. 32 33 Other cities that have ordinances and/or otherwise allow WECS: Colleyville, Frisco, Garland, 34 Grand Prairie, Little Elm, McKinney, Oak Point, North Richland Hills, and Waxahachie. Many 35 of these cities only allow WECS through Specific Use Permit (SUP), although there are some 36 that allow the devices "by right" in certain zoning districts. Staffs preliminary research also 37 indicates that several Metroplex cities are working on ordinances to address WECS, or plan to do 18 so in the near future. 39 40 Staff is seeking direction on the following options: 41 Option 1: Recommend approval of the proposed WECS regulations, and subsequent addition to 42 Section 26 of the Denton Code of Ordinances. 43 Option 2: Recommend modifications of staffs proposed WECS regulations and subsequent 44 addition to Section 26 of the Denton Code of Ordinances to incorporate the proposed WECS 45 regulations as modified. Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 3 of 8 1 Option 3: Recommend maintaining Section 26 of the Denton Code of Ordinances in its current 2 form, without modification 4 Upon approval the next stop for this item is going to be at the Planning & Zoning Commission to 5 hear the planning and zoning side. Upon approval at that meeting then it will go on to City 6 Council for a final decision. 7 8 Banks stated that staff recommends option 1. 9 10 Martin stated that the Committee on the Environment has reviewed the proposed ordinance and 11 has recommended for it to move forward to City Council for review. Staff wanted to bring this 12 to this Board and then to Planning & Zoning and then feel like it is ready for City Council. 13 14 Chair Smith asked who is on the Committee on the Environment. Martin answered Pete 15 Kamp, Chris Watts, and Dalton Gregory. 16 17 Member Baines asked in your development of this ordinance does your version mirror the 18 ones from the other cities. Banks stated it does not. Member Baines went on to ask if it is 19 significantly different. Banks stated that there are elements that are different. What staff tried 20 to do is get all of the codes together look at them and picked them for what we thought was the 21 best elements out of each one. We have attempted to extract all of the information where we felt 22 with reviewing the combination of all the codes we felt best addressed each specific issue. 23 24 Member Gallivan stated that he has no background on whether or not this is a good 25 ordinance or not. He would take comfort in knowing that in Banks research of the other 26 cities that our ordinance might be more conservatively written than the other cities or some 27 benchmark to go by. Banks asked for clarification on what Gallivan meant by conservative. 28 Gallivan stated maybe height restrictions less. Banks stated that he can say that from a safety 29 standpoint and from a standpoint of comprehensiveness of issues ours is as thorough as any 30 ordinance that Banks has reviewed. In fact, it is more thorough than the ordinances that were 31 reviewed because Banks was able to take all of the elements and combine into this ordinance. 32 Regarding conservative, Banks stated it depends on if you want to promote this type of device or 33 not. The Committee on the Environment was interested in promoting these. If you are looking 34 at by right situation there are not as many codes out there that allow for by right in certain zoning 35 categories than there are that just simply require a SUP throughout. There are a lot of them out 36 there that just simply say you will get a SUP and that is the only way one can be installed. If you 37 looked at all the others you would find that this is more comprehensive. 38 39 George Campbell, City Manager, asked if the others have interconnection provisions with power 40 providers. Banks stated that he didn't see that addressed as much. Not sure if that represents the 41 other cities being fairly new in the process or maybe the issue of them not having their own 42 utility and their assumption that will be handled with the utility. That is an important point 43 because we do have areas that are not serviced by Denton Municipal Electric and we actually 44 have a component of the code that says you will work out an interconnect agreement with the 45 utility provider that you do have and provide evidence of that to us or a permit will not be 46 granted. The other situation is a lot of cities anticipated that these were going to be used on an Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 4 of 8 1 off grid application. They very well may be you don't have to interconnect, they can be used to 2 charge a battery, or utilized to provide power to a small building. 4 Member Russell stated that we already have some noise and light restriction in our codes 5 now. Are these the same as or comparable? Banks stated that the noise restriction is 6 comparable to the most stringent noise restriction that the City has, 50 decibels day time in a 7 multifamily setting. The lighting restrictions are unique to WECS basically the approach that 8 staff took was if it didn't need a light for safety purposes from an FAA standpoint then it should 9 not have lights. 10 11 Member Russell then stated that staff has done due diligence and believe that we have the 12 very best. Let's suppose that after a few years we see some glaring faults in this because 13 this technology continues to progress. Would an applicant have to get a variance to any of 14 these to be able to install a WECS or how would that be dealt with. Banks stated that his 15 suggestion would be if that truly presents itself staff would go back and modify the code. 16 17 Member Baines stated that he doesn't really deal with this and has no frame of reference 18 but his thought would be if it is urgent that we pass then we need to do something. Baines 19 went on to say maybe there needs to be a discussion group of people from other vantage 20 points to scrutinize the recommendation to make sure there is effective dialog and issues 21 have been addressed by all of those impacted. Banks stated that we can certainly do that. 22 Banks knows that planning has gotten some pressure here recently to actually get this code on 23 the books because they have applicants that are interested. Ron Menguita, Planning Supervisor, 24 is here to help answer questions as well. 25 26 Member Baines asked once people put these devices in are the grandfathered in or do they 27 have to go back and be modified for the standard. Banks assumed they would be a non- 28 conforming use at that point it was put in before the code was adopted. Menguita clarified if 29 Baines was talking about existing or ones that are going to be coming in before the code comes 30 to fruition. Member Baines stated he was speaking about both. His initial thought is that 31 more discussion is needed. Menguita stated that the existing will be non-conforming; they were 32 permitted before this code was approved. Staff will have public hearings with the Planning & 33 Zoning and City Council, newspaper notices will be sent out. That may bring in people that may 34 speak in favor or against and can be discussed. Baines further asked while this is being 35 dialogued if people put in these WECS will they be required to go back and modify them 36 based upon the final version that is approved. Menguita stated that is something that can be 37 discussed is retroactive but unfortunately as it is proposed they would not be required to go back 38 and retro. Member Baines stated but they would be considered non-conforming. Banks 39 answered they would be considered to be legal non-conforming. 40 41 Martin stated they would be required to have an interconnect agreement. Banks agreed they 42 would. Member Russell stated that she would think that would be in any case. Banks stated 43 that DME would require an interconnect agreement or any utility. Martin further stated or to 44 show that you are not connected to the system. 45 Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 5 of 8 1 Chair Smith asked if there are any current for future regulatory mandate or benefit to 2 having this ordinance or having these within the City limits. Banks answered there is not a 3 regulatory mandate that he is aware of. These are being looked at from folks mainly to simply 4 generate power and offset their power use. Chair Smith asked is someone can expect to 5 generate, assuming the wind is blowing, all their electricity for their house. Banks stated he 6 didn't think so. This is a category 2 wind generation area. There are scales that are related to 7 wind speed and the consistency of that wind speed. Category 0 is the lowest it goes up to 8 category 7; 2 isn't that great we are pretty marginal. In fact in the summer it tends to slip in the 9 category 1 range because the wind is calmer. Banks stated that he doesn't believe you will be 10 able to get a substantial amount of generation. It is very site specific. Running the numbers it 11 will take a substantial amount of time for payback even in a good location in this area. 12 13 Chair Smith asked on option 3 the way the code is currently, if a person wants one of these 14 devices so they have to get a SUP or what procedure would they have to go though. 15 Menguita stated that currently we do not have any regulations for this type of devices. Right 16 now staff considers them as accessory strictures to the primary stricture and they would just 17 have to comply with the height limitations. The limitations that have been presented today 18 would help staff effectively limit the impact to the neighborhood area. 19 20 Chair Smith asked if we move one step up and require a SUP for these devices. What 21 criteria would be different in the SUP than what the ordinance that is being brought 22 forward today? Would it be easier or harder to install one of these? Menguita answered it 23 would be the same because what staff would be reviewing would be similar impacts or 24 conditions regarding the noise or aesthetics. The SUP goes not only through the Planning & 25 Zoning Commission as well as City Council for their consideration and they can impose certain 26 conditions to the applicant that may arise. Chair Smith stated that from the applicant 27 standpoint he believes the SUP would be much more onerous and difficult than just simply 28 complying with an ordinance, even if the criteria is the same. Banks agreed. Menguita stated 29 that there are certain zoning districts that permit by right. There are 3 of the zoning districts that 30 we have the other remaining zoning districts will require a SUP in addition to comply with the 31 new ordinance. 32 33 Chair Smith stated that with all due respect and realizes staff has worked very hard on this 34 ordinance; he doesn't believe that we need these within the City, from nothing else but an 35 aesthetics standpoint and because they aren't very efficient. Chair Smith understands 36 there probably are a few that want to put one in, he would prefer to use a SUP. Martin 37 stated that what he understands from the Board, for the 4 zoning categories that we have 38 identified that you can establish a WECS by right you would make everything a SUP versus 39 having those 4 categories by right. Member Russell asked by right meaning I want one and 40 so I'm going to have one is that what by right means? Martin stated that all you have to do is 41 comply with the ordinance you don't have to go though the SUP process. Member Russell then 42 stated that there are very few places in Denton that could use these, you can have solar 43 panels but very few people have them because they are so expensive it takes too long to 44 recoup the money and if someone is purchasing the house they don't want to pay for them 45 because they aren't efficient. By this one you have to have two acres, not many places in 46 Denton. There aren't a very big window for these unless we start developing some grand Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 6 of 8 1 estates in the outlying and with which case if someone had a grand home on a couple of 2 acres it would have to be an art object before they would want it. Chair Smith stated that 3 he could put one up since he has 2.8 acres but bets the neighbors wouldn't like it. Chair 4 Smith then stated that if an applicant has to go through an SUP process instead of just 5 complying with an ordinance he believes they would think long and hard about how bad it 6 is wanted. 7 8 Martin stated that the only other category the ICG would allow them to be built by right. Banks 9 stated with the limitation of it not extending more than 10' above the building line. Martin stated 10 that the ICG would be more of a commercial category with the WECS mounted on the roof not 11 to exceed 10' would also be by right but that is only one. You can only have one, most of the 12 building mount applications they wouldn't want just they would want several which would be by 13 SUP. You can have one by right. Banks stated that staff thought long and hard about this issue 14 and the intention was to only allow by right in those areas that are zones rural, and the roof 15 mounted industrial category. Keep in mind you have the additional restrictions on the by right 16 on the height. It can't be more than 10' of the maximum allowed in that zoning district as a 17 mono pole and can't extend more than 10' above the roof line on a building mount. Staff 18 struggles with that, it is a touch decision. Do you do everything by SUP do you allow some by 19 right and if some by right is the choice what do you do to minimize the impact of those in the by 20 right situation. 21 22 Member Russell stated that in the agreement if someone produces more power that is 23 needed, DME wouldn't buy it back. Phil Williams, General Manager Electric, answered they 24 would use up to the amount they needed to use, and the rest would be bought at a voided fuel 25 cost. Martin stated it would be at RCA, the fuel component of that charge. 26 27 Member Gallivan asked if you write a SUP regulation is that what you do instead of by 28 ordinance, the more conservative in order to protect your neighbors in a residential setting. 29 Most all neighborhoods don't have 2 acre lots. The larger estate homes, Gallivan can 30 understand where they would be more impacted and the investment they have made. 31 Martin stated that the distinction by utilizing the SUP a benefit you have public input. You have 32 to go through a public hearing process for a SUP. Member Gallivan asked if there was a 200 33 feet rule. Campbell stated it is essentially a zoning case. Martin stated that you would be 34 notified and you would have an opportunity if your neighbor was going to put one up if you went 35 through the SUP. If you could meet the criteria just by ordinance and you are in one of the 36 categories that allow by right you wouldn't necessarily have to do that. Menguita stated that in 37 the SUP process notices are sent out to people within 200 feet and courtesy notices to people 38 within 500 feet. If for any reason there was opposition by 20% of the people, a majority would 39 be required for City Council. 40 41 Member Gallivan asked if there was a fear in the discussions of administrative burden it 42 was by SUP. Banks stated that he doesn't anticipate very many. The idea was if you are out in 43 the country and you have a large lot or you have a business setting were a roof mount might 44 make since, so we want to put that barrier in place. When this was discussed with the Committee 45 on the Environment at the time the committees desire was to reduce that barrier a little bit for 46 certain uses. Banks went on to say what is the right balance, do we want to say by right in large Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 7 of 8 1 lots and rural setting or on building mounts in one industrial category or do we want to say SUP 2 regardless. Member Gallivan stated that in his mind 2 acres isn't rural, more like ranches 3 and estates. He has no problem with them if they are outside or around our ETJ. Martin 4 stated to think in terms of Ranch Estates. Chair Smith asked if it was rural zoning. Martin 5 stated no. Chair Smith then asked what constitutes the rural zoning designation. Menguita 6 stated that RD5 is what we refer to as rural and the minimum lot acre for that development would 7 be 5 acres. Menguita believes that NR2 is 2 acres. Just for back ground information we have 8 been getting calls from various property owners one particular owner owns a 70 acre ranch, and 9 another owns 7 acres out by the airport. Chair Smith clarified, if you want to take care of 10 those people by right then you would do the RD zoning and everything else would be SUP. 11 Menguita stated that if they were RD5 they would have their zoning in place and they met the 12 criteria then yes they would be permitted to go forward and apply for a building permit, through 13 building inspections. All the other zoning districts would require a SUP before going forward. 14 Chair Smith stated that is what he is in favor of. Member Gallivan stated that he 15 understands by right in a rural area with acreage. 16 17 Martin stated that the only change would be to take NR1 off the table for by right. Chair Smith 18 further noted and the industrial as well. Banks stated that if NR1 and ICG was through the 19 SUP process then effectively all that would be left would be the two rural categories. Banks 20 went on to say that rural categories have a minimum threshold. RD5 has a minimum threshold 21 of 5 acres, Menguita added if it is subdivided. He further added the City recently annexed a 22 number of properties that are not zoned RD5 but receive an RD5 classification for review. 23 Typically what happens is when someone is annexed the immediately receive an RD5 zoning 24 district and typically rezone to whatever zoning district they choose. Campbell asked what is the 25 second rural classification besides RD5, Banks responded RC (rural commercial). Menguita 26 stated that we don't have many at that zone. Campbell asked if we have some is that one that is 27 allowed by right. Banks stated under the current draft that is correct. Chair Smith asked what 28 the minimum size acreage in that category. Menguita was unsure of the acreage. Chair 29 Smith asked if it was more than 5 acres, Menguita responded less than 5 acres; RD5 is the 30 strictest zoning district. Menguita came back with the answer that RC is two acres. 31 32 Banks stated at this point what we are looking at is removing NR1, through SUP process and 33 also ICG. Member Gallivan stated ICG is commercial do we need to be concerned about 34 aesthetics in the commercial zoned area. Chair Smith stated he believes it is an aesthetics 35 issue whether in residential or commercial. Member Gallivan stated that a residential 36 community can see a commercial zoned area; it might be offensive to that community. 37 Banks stated that keep in mind in those categories the only type allowed is a building mount. 38 Martin stated that the building mount is the only one allowed by right, Banks agreed. Martin 39 further added that you can go through the SUP process and have a free standing or if it exceeded 40 the 10' height you would still have to go through the SUP process. Banks stated you would have 41 to go though the Zoning Board of Adjustment for a variance. 42 43 Member Russell added that beauty to one person is a thorn to someone else. Member 44 Russell then asked if Chair Smith's biggest concern is that there would be public comment. 45 Chair Smith answered that is his concern is aesthetics and if someone has to go through a 46 SUP process, in Smith's mind knowing how things work a person is less likely to get a SUP Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 8 of 8 1 than just adhering to ordinances. You have to go through Planning & Zoning and have 2 public hearings and the Planning & Zoning members can put their conditions on it, same 3 with the Council. 4 5 Member Baines stated that he can go with what is on the table with a caveat. Member 6 Russell seconded. Member Baines went on to say there is a divergence of opinion and we 7 would like to let the Council know that while in general we agree with the desire to have a 8 uniform and acceptable level of aesthetics that is subject to controversy. Member Russell 9 stated that she would like it to be noted that there was great discussion and merit to all 10 discussions. 11 12 The motion is the two categories that we are talking about RD5 and RC would remain the 13 only two zoning categories that you can have WECS by right, every other zoning by SUP 14 only. Also, noting the amount of discussion. Motion was made by Member Gallivan with a 15 second by Member Russell. Vote 4-0 approved, Randy Robinson had already left. 16 17 Adjournment was at 11:44 a.m. I MINUTES 2 PLANNING AND ZONING 3 April 6, 2011 4 5 After determining that a quorum was present, the Planning and Zoning Commission convened a 6 Work Session on Wednesday, April 6, 2011 at 5:30 p.m. in the Council Work Session Room at 7 City Hall, 215 E. McKinney Street, Denton, Texas at which time the following items were 8 considered: 9 10 PRESENT: Chairman Walter Eagleton, Commissioners: Jay Thomas, Thom Reece, Brian 11 Bentley, Patrice Lyke, Jean Shaake and John Ryan. 12 13 ABSENT: None. 14 15 STAFF: Mark Cunningham, Jerry Drake, Kenny Banks, Chuck Russell, Jennifer Coles, 16 Cindy Jackson, Ron Menguita, Fred Greene and Johnna Matthews 17 18 Agenda Backup 19 20 WO SESSION 21 Chairman Eagleton opened the work session at 5:32 p.m. 22 1. Clarification of a,enda items listed in the Re(ular Session a(enda for this meeting and discussion of issues not briefed in the written backup materials. 23 24 No clarifications requested. 25 2. Receive a report, hold a discussion, and give staff direction concerning the modifications to Subchapter 35.5 of the Denton Development Code re(gulating the use and interconnection of Wind Ener ,y Conversion Systems (WECS). (DCA10-0010, Wind Energy Conversion Systems, Dr. Ken Baulks and Ron Menguital 26 27 Banks provided a brief history of this Development Code Amendment. Banks stated there was a 28 discussion with the Committee on the Environment (COE) in 2007 relating to the use of Wind 29 Energy Conversion Systems. At that time the discussion was primarily about the old design of 30 the wind turbine. New designs for the wind turbine have recently become available. Banks 31 continued that more municipalities were adopting ordinances such as presented here to this 32 Commission. 33 34 Banks stated that there have been some requests through the Planning Department to permit 35 these types of devices. The drafted Code amendment as presented to this Commission has been 36 vetted through the COE and the Public Utilities Board (PUB). The Code amendment will impact 37 Chapter 26 of the Code of Ordinances, Utility Standards, and Subchapter 5, Land Use Categories 38 of the Denton Development Code. The largest discussion point at this time is whether these 39 devices should be allowed by right with restrictions or by specific use permit for certain zoning I designations. The PUB recommended removing the Neighborhood Residential 1 (NR-1) and 2 Industrial Commercial General (IC-G) as permitted by right with limitations. The devices must 3 comply with Denton Municipal Electric's (DME) interconnect provisions, or demonstrate the 4 system is not interconnected. The applicant is required to provide proof of interconnect 5 agreement with another service provider if the applicant is not a customer of DME, they must 6 obtain a Wind Energy Conservation System (WECS) permit from the Building Official, along 7 with paying appropriate fees, prior to installation of the WECS and meet height requirements 8 based on zoning categories (maximum height, plus 10 ft for all zoning categories except those 9 with 40 foot maximum height. For these, requirement is max height plus 15 ft.) 10 11 Banks highlighted other key components of this proposed Code amendment as: location and 12 setback requirements regarding easements, property lines, overhead utility lines, trees, other 13 strictures or impediments, etc; height and setback requirements for building mounted WECS; 14 sound pressure level requirements; lighting restrictions / FAA compliance; aesthetics, including 15 color, signage, blade glint / flicker, and design; safety issues including tower design, braking, 16 grounding / shielding, electronic interference, climbing apparatus, engineering certification, and 17 compliance with City Building Codes and Safety Standards; Environmentally Sensitive Areas 18 regulations for WECS; maintenance requirements; and removal requirements / abandonment 19 provisions. 20 21 Ryan questioned if the use of these devices on a building that is already legally, non-conforming 22 in height has been addressed. Banks stated that the application would have to take that with the 23 height restrictions to the Zoning Board of Adjustment (ZBA) to obtain a variance. Menguita 24 stated that the ZBA would consider any special conditions. For the draft of this document staff 25 did not make any provisions for existing legally, non-conforming uses. Drake stated that 26 Subchapter 11 of the DDC has a number of very specific provisions for legally, non-conforming 27 uses that can differ from the general principals of law. If there is a legally, non-conforming use 28 any modification of that use may signal a loss of the legality of the non-conforming use. It 29 would be risky to make any modification to any existing legally, non-conforming use. By 30 making modifications the applicant may be required to make all modifications to the stricture 31 and use to operate legally in the existing zoning district. 32 33 Eagleton questioned the NR-1 restrictions. Banks stated that originally staff proposed that both 34 building mounted and pole mounted WECS would be allowed with restrictions L41 and L42. 35 Discussions with the PUB related mostly to the aesthetics and proximity to neighbors of these 36 WECS systems in an NR-1 district. Banks also added that the PUB had no problems with these 37 devices in any rural zoning designation. 38 39 Bentley questioned how staff would know if a WECS had been abandoned or now. Banks stated 40 that if it is connected to the City, the City will be able to tell if it is active or not. If it is not 41 connected to the City the burden of proof will go to the owner of the device to prove that it is 42 still generating power, whether connected to another utility or used to charge batteries. Bentley 43 also questioned what procedures were in place for the removal of abandoned devices. Banks 44 stated that the language provides for the City to remove the device and place a lien on the 45 property. I The Commission discussed various aspects such as cost and use of the WECS system in more 2 suburban settings. Banks stated that even though roof top mounted systems are becoming more 3 available and the cost is lowering, the expense is still there and he does not see an overwhelming 4 request to have these throughout the City being forthcoming. 5 6 Menguita stated he invited a local installer, Randy Sorrells, of these systems to the meeting if the 7 Commission would like to get more information regarding these systems. Sorrells answered 8 questions of the Commission regarding materials, logistics and cost. 9 10 Menguita asked for direction from the Commission on recommended changes to the language 11 before bringing it back at a public hearing to make the recommendation to Council. Commission 12 discussion led to the recommendation that the restrictive height of 10 feet above the stricture on 13 the property with a not to exceed height of 55 feet should be reviewed for all zoning categories 14 that allow a building height of 45 feet or greater. 15 16 Chairman Eagleton closed the Work Session at 6:24 p.m. 17 18 REGULAR MEETING 19 After completing the Work Session, the Planning and Zoning Commission convened a Regular 20 Meeting of the Planning and Zoning Commission of the City of Denton, Texas which was held 21 on Wednesday, April 6, 2011 and began at 6:30 p.m. in the City Council Chambers at City Hall, 22 215 E. McKinney at which time the following items were considered: 23 24 Chairman Eagleton opened the Regular Session at 6:30 p.m. 25 PLEDGE OF C : 1. 26 27 A. U. S. Flau Li= 28 29 B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas one state under God, one and indivisible." 30 31 2. CONSIDER APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES FOR: 32 A. March 23, 2011 33 34 Commissioner Thomas moved approval of the minutes with a second by Lyke. On roll call vote: 35 Chairman Walter Eagleton "aye", Commissioner Brian Bentley "aye", Commissioner Jay 36 Thomas "aye", Commissioner Jean Schaake "aye", Commissioner John Ryan "aye", 37 Commissioner Thom Reece "aye", and Commissioner Patrice Lyke "aye". Motion passes (7-0). 1 3. CONSENT AGENDA: Staff reeomme s royal of the followi ~ items because they meet the reguirements of the Denton Development Code. Approval of the Consent Agenda includes stal'l' recommendations for approvals and authorizes stal'l' 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: 2 A. Amending Final Plat of Lots 1R, Block 2 and Lot 2R, Block 3 of the Golden Triangle Industrial Park Addition. Lot 1R, Block 2 contains approximately 23.551 acres and is located south of Morse Street, east of Loop 288, west of Kimberly Drive and north of Karina Lane. Lot 2R, Block 3 contains approximately 18.102 acres and is located 540 feet south of Morse Street, east of Kimberly Drive and west of Mayhill Road. The property is located within an Employment Center-Commercial (EC-C) zoning district. (AFP10-0004, Denton County Admin Facility Phase 2, Ron Menguita) 4 5 B. Preliminary Plat of the Ryan Companies Addition, Lots 2 and 3, Block A and Lots 1, 2, 3, and 4, Block B. The approximately 98.659 acre property is located on the south side of Airport Road (EM. 1515), approximately 1,292 feet east of the intersection of Airport Road and Corbin Road. The property is located within an Industrial Center General (IC-G) zoning district. (PP11-0003, Ryan Companies Addition, Cindy Jackson) 6 7 Commissioner Thomas moved approval of the Consent Agenda with a second by Reece. On roll 8 call vote: Chairman Walter Eagleton "aye", Commissioner Brian Bentley "aye", Commissioner 9 Jay Thomas "aye", Commissioner Jean Schaake "aye", Commissioner John Ryan "aye", 10 Commissioner Thom Reece "aye", and Commissioner Patrice Lyke "aye". Motion passes (7-0). 11 4. PUBLIC HEARINGS: 12 13 A. Hold a public hearing, and consider approval of the Final Plat of Lot 1, Black A of the Mt. Pilgrim CME Church Addition, being a residential replat of Lot 1, Black 1 of the Alex Robertson Addition and unplatted tracts of land. The approximately 1.299 acre property generally located at the northeast corner of Robertson Street and Cook Street and is located within a Neighborhood Residential 4 (NR-4) zoning district (FR11-0001 Mount Pilgrim C.M.E. Church, Ran Menguita) 14 15 Menguita presented this request for a consideration of a residential replat with two additional 16 tracts. Menguita showed the property location, site photos and a copy of the proposed plat was 17 provided in the backup material for this item. The request is to facilitate a proposed parking lot 18 for Mount Pilgrim C.M.E Church. Notices were sent to property owners within 500 feet of the 19 subject site, with certified notices being sent to those within 200 feet of the subject site. No 20 notices were received in favor, opposition or neutral to the request. The Development Review 21 Committee recommends approval of this request. I Speaking in favor of the request: 2 3 Fred Hill 108 Bentwood Court 4 5 6 Commissioner Thomas moved approval of this request with a second by Reece. On roll call 7 vote: Chairman Walter Eagleton "aye", Commissioner Brian Bentley "aye", Commissioner Jay 8 Thomas "aye", Commissioner Jean Schaake "aye", Commissioner John Ryan "aye", 9 Commissioner Thom Reece "aye", and Commissioner Patrice Lyke "aye". Motion passes (7-0). 10 5. FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to induiries 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 11 12 13 Chairman Eagleton closed the Regular Session at 6:38 p.m. 14 15 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Quentin Hix at 349-7744 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the constriction of a Landscape Equipment Storage Building and Area at the Denton Municipal Airport; providing for the expenditure of funds therefor; and providing an effective date (Bid 4588-awarded to the lowest responsible bidder meeting specification, Caliber Constriction, Inc., in the amount of $327,140). (Airport Advisory Board recommends approval 4-0). BID INFORMATION The Denton Municipal Airport is experiencing dynamic growth and development in the southeast area and as a result, the expansion of the runways and taxiways has caused space issues. Therefore, there is a need to relocate the storage facility that houses the equipment used to maintain the Airport property. The current area was a temporary site consisting of a portable building and a secured fence. Due to the small size of the building, expensive equipment has to be stored outside in the elements, and there is no available space to perform maintenance on the equipment. The proposed building and secured lot will provide necessary storage, maintenance, and cleaning space for the equipment as well as an area that will ensure proper storage of chemicals and fuels. RECOMMENDATION Award to the lowest responsible bidder meeting specification, Caliber Constriction, Inc., in the amount of $327,140. PRINCIPAL PLACE OF BUSINESS Caliber Constriction, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed by September 2011. Agenda Information Sheet May 3, 2011 Page 2 PRIOR ACTION/REVIEW The Airport Advisory Board recommended approval of this facility at its April 13, 2001 meeting. A Work Session item on this facility and area was presented to City Council at their April 19, 2011 meeting. FISCAL INFORMATION Funding for this item is budgeted in operating account number 200024450.1365.40100. Requisition 4102370 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Bid Tabulation Exhibit 2: April 19th Work Session Item Exhibit 3: Draft Airport Advisory Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance I-.CIS-Bid 4588 w bQ H O OO w O ~ O O A ~ o, o W W W W A ~ ~ o o W W W W o w Q H U U Off.' rn H O O O O O O Z L7 ~ ~ o o W W W W A ~ ~ N o v~ v~ v~ v~ cz W') W U cz 7t O x U ~ o o O O ~ 0 0 A O oo, W W W W A o Q o 0o W W W W cz W') ~O FA F O U 7t Ef3 U N Cf? ~ U ~j p Ef3 ~ o U r„i F+I U H O O F+I O x O O L O 00 pp V1 V1 V1 V1 O ,t", .O O O Vl Vl Vl Vl w Q~ Z o o ~o W W W W A U O o 0o W W W W I!t O r'" ~ o w ~ O O Fil ~ O O C~ A o~ o ~ N ~ ~ ~ ~ A ~ ~ N o~ W W W W > A V > U O H H N W U ~ ~ N M U ~ ~ N M ~ W y e a W y e a EXHIBIT 2 AGENDA INFORMATION SHEET AGENDA DATE: April 19, 2011 DEPARTMENT: Airport ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and provide staff direction on the constriction of a Landscape Equipment Storage Area building at the Denton Municipal Airport. BACKGROUND The expansion of runways and taxiways at Denton Airport has caused a need to move temporary storage buildings and fenced, outside storage areas into a consolidated location. The current storage area has three small, temporary storage buildings for parts, small service equipment and chemicals used to maintain the Airport property. Due to the small size of the buildings, expensive equipment has to be stored outside, unsecured in the elements, and there is no available space to perform cleaning and routine daily maintenance on the equipment. The proposed building and secured lot will provide necessary storage, maintenance and cleaning space for the equipment as well as an area that will ensure proper storage of chemicals and fuels. The proposed Landscape Equipment Storage Area (LESA) includes approximately one-half acre of fenced storage yard with a 1,975 square foot building that consists of two maintenance bays, a small tool and work area and approximately 150 square feet of office space. There is an additional 1,000 square feet of area under roof that is open on three sides. This facility will be located in the southeast corner of the Airport adjacent to an enclosed gas well pad site. The initial cost for this facility was estimated to be $70,000 based upon a metal shell building with one bay door and a small office framed in one corner. This estimated amount was included in the FY 2009-2010 Airport Gas Well Fund Budget prior to the actual design review with an architect. As the facility was designed, it was determined that for the building to be serviceable for the long term, it should include two bays, an enclosed small tool and equipment work area and a modest office with restroom facilities. The electrical and plumbing requirement is, also, more extensive than was initially estimated for a shell building. Design improvements resulted in an increased cost of constriction over the initial estimate for a shell building only. The additional costs for this facility will be accommodated through gas well CIP funds. A proposed ordinance to accept the constriction bid of Caliber Constriction, Inc., a local Historically Underutilized Business (HUB) contractor will be presented to the City Council on May 3, 2011. The low bid amount from Caliber Constriction, Inc is $327,140. The ten (10) bids received were "stair-stepped" from the low bid of $327,140 to a high bid of $514,000. EXHIBIT 2 Agenda Information Sheet April 19, 2011 Page 2 PRIOR ACTION The Airport Advisory Board recommended approval of this facility at its April 13 meeting. RECOMMENDATION Airport Staff recommends constriction of this building based upon the need for an equipment storage and routine service facility to accommodate Airport public space maintenance and to serve Airport tenants. The spread of bids from ten (10) different contractors indicates the low bid is a highly competitive market price for the proposed stricture and the cost would likely increase if the specification is re-bid, even if the building design is simplified. City staff is familiar with Caliber Constriction, Inc. and has used them on other projects. This contractor has a proven record of performing quality constriction, on time and within their approved budget. PRINCIPAL PLACE OF BUSINESS Caliber Constriction, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed by September 2011. EXHIBITS 1. Bid Tabulation 2. Site Plan 3. PowerPoint Presentation Respectfully submitted: Quentin Hix Airport Manager w bQ H O OO w o ~ ° O A ~ o, o W W W W A ~ ~ o o W W W W 7t U U o w Q H U U Off.' rn H O O O o O O Z L7 ~ ~ o o W W W W A ~ ~ N o v~ v~ v~ v~ cz W') W U cz 7t O x U ~ 0 0 0 O ~ 0 0 A O o°, W W W W A o Q o °o W W W W c~C N l\ M sir.' • 0 r3 N ° ~O FA F~j i~~ U ~y 7t Ef3 U N E!) r U ~j o E!) ~ o U N o ~ `n ~ O o0 V1 V1 V1 V1 O ,t", . o ~ O ° Vl Vl Vl Vl O ~ U c> ~ o o ° W W W W W o w I!t O r'" ~ o w ~ O O Fil ~ O O C~ A o~ o ~ N ~ ~ ~ ~ A ~ ~ N o~ W W W W > A > 7 U O H H N W U ~ ~ N M U ~ ~ N M ~ W y e a W y e a EXHIBIT 2 I~ li . ~ I I 1 I ~ ,J I ~ V III / - = III ti %7NT of - - I g \II E-1 I i j I F I N I I' I ! J I ~ IIIIN I ' ~ I I II II 11~ ' I .v~ oo i o ~ II II 0 ol ~ ; II I ~~r ' III I ~ ~ III ❑ li I I o ~ Ilk, N! I ~ ~ ob ~ II L nl n u In a hv--~ TT t-711B, 11 00 0000000❑❑❑ m 0 Y e 00 S2 CITY OF DEMON°r D= m a LANDSCAPE EQUIPMENT STORAGE AREA L - z AT THE D 5 leee -I a DENTON AIRPORT _ Z ~ DENrON iES(AS 3 EXHIBIT 2 u~ z z z F x \ E / O N P_ rr - _cr _ - . - - - gdO 15 \CIPk ti (D I~ - - - - ` Z F- n z ¢wr L a7Z a0L) O j Q L]_1 O m~C z \ n i~ LLyll u#m~ U 'r [ate LL z o u Z I V/ l sk w > w Q J~i~ I S O ~W W p°QO Q c i rQ ^ a 0-10 I [ 'n U Q O Z w o 1( o °Q Q10Q I f 6~1 _ U~Q fi nu~~ ~ ~ o - x 'Z Q ~ n - I I -Ob> l , o Q an ca, u} ~F1✓ ~ 1 I I z0Q I ' II I 311003 X210111110 81114V91 ' N N I I I " M 4 I I L Z t V t DNIN3dO 31V0.91 (INV 321000 p \m OV3HUBAO 30 3N[I UBIN30 Z-1 V/ 1 I- 0 o U Q iL ~ f' 511X; pvl$ m f~. W - u N jt, Y c ~ L l i • J f { IV y r ` ~ T y~,L*FYy,Y I l d { A 4 1 ~ m qp y s f 9 dfl~ ~ ~ dl4 , a I , ~V ri N 4 3i p m e x w I I r aa9 u Rku, ~tl~} f Vti lif t ' r : hn. ~ ISI Ryr ms I' W - + I y, r p } u ,f i[ A, WNW " _ _ ~ I ~ L Iii li a~ f ~ F ~ I ~ ~ s, ~7 ~ 'F ~ r J 1~.r1~ sa ~r~y ~ . Z ! f'a f- ~ . , ; ~ ~ ~ G '-I l~ ,~,.r ' ~S 515 y~. yy ~ ~ ~ L.__ ~j LL. C ~ i t~ , w I ~ ' ~ r. ~,o; ~i f(yJfi~~4 1141, _ ~ r:; 7rL r W,~. I ~~~[[1l~'~ i ~~'1V1~~u1~titt~ ~ l',1.gtiti'ry'! ~ ~ ,~y~ li f ~ ~ , ~ ~ . ii, ii i r j 'a ~ _ ~ 4~ t ~ ,1 ~m~ ail ~ ` ~4 i ~ 1 ~i, h u, t`~~I~, i Ili I' I i 4 1 ! i ` f s, N m W } L t u III rr` - i V 1 ~r rr~ irr ~ ~ C rv W GF 'era rs~~~ I~ ~J I i N deb r3 M ra i~d F. 4 J ~1 I ~n N X r.., l _ fv<ummr. ~ LLJ _ ~ .L rr~ i i _ I I i 1 i I ~ f II I k f ~ I 11 I I I~ I i vu I I i I I I I i l II I ~I I- I t'. W I s r e a i. r I i s I ~e. I I a AN I "MAI I' 11 I ' ~a pR I ~~Y t A. f~ I ~ k~ 1 ii eP,; t e~ I i I w W, i v k r. 1i w I i N i I I u i , @F ~d I , I 4J U v v v ~ ~ ~ O u r~ ~ ~ U U O 4~ N b~ 4~ cn u ~ , ~ o • • 4-mi 4J 4-j ~ 4J ro U v 4 ft u ~ I~ 0 o U o 0 0 o u o ~ o 0 N O N O O M r4 w O O O N N i ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF A LANDSCAPE EQUIPMENT STORAGE BUILDING AND AREA AT THE DENTON MUNICIPAL AIRPORT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4588-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION, CALIBER CONSTRUCTION, INC., IN THE AMOUNT OF $327,140). WHEREAS, the City has solicited, received and tabulated competitive bids for the constriction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the constriction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the constriction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 4588 Caliber Constriction Inc. $327,140 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for constriction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the constriction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-ORD-Bid 488 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Emerson Vorel at 349-7460. A~T ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, approving an amendment to a contract dated December 15, 2010 between the City of Denton and Michael Christopher Brown and David Wayne Gray DBA Gray Events Management, LLC for administration of events and programs at the Goldfield Tennis Center; and providing an effective date (RFP 4262-awarded to Gray Events Management, LLC in the amount of $142,000). FILE INFORMATION Under this agreement, the contractor provides administration of tennis camps, classes, leagues, mixers, tournaments, private lessons, special events and other tennis programs. The annual High School Tennis tournament was held on March 4, 2011 and 25 area high schools participated with over 450 students entered. Enrollment in the United States Tennis Association Jr. Tennis program has increased by 40% this spring over last spring. The current contract amount was approved by the City Manager not to exceed $100,000. Approximately $85,302 has been paid under the current contract period. Revenues at the City's Goldfield Tennis Center have increased by 30% due to a larger demand for services, but as a result, contract expenses have also increased. Parks staff anticipates needing an additional $42,000 to cover these expenses for the remainder of the fiscal year. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The contract for RFP 4262 was originally approved by the City Manager on June 2, 2009. The contract terms were for one year beginning June 15, 2009 - June 15, 2010. A purchase order was issued in the amount of $65,000. The original RFP documents allow for an option to renew for two (2) additional one-year periods. On January 19, 2011, the City Manager approved a one year renewal effective through September 30, 2011 in an amount not to exceed $100,000. RECOMMENDATION Approve Amendment One in the amount of $42,000 for a total contract award of $142,000. PRINCIPAL PLACE OF BUSINESS Gray Events Management, LLC Frisco, TX 75034 Agenda Information Sheet May 3, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT Tennis programs are offered year round. The current contract for services will end September 30, 2011. The contract does provide for the option to renew for additional one-year periods. FISCAL INFORMATION This contract will be funded from account 411200.7868. The amended amount will be added to Purchase Order 150730. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance I AIS-RFF 4262 IlcodadldepartmentsAcgaIlour documentslordinances1111parks head tennis pro contract amendment.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AN AMENDMENT TO A CONTRACT DATED DECEMBER 15, 2010 BETWEEN THE CITY OF DENTON AND MICHAEL CHRISTOPHER BROWN AND DAVID WAYNE GRAY DBA GRAY EVENTS MANAGEMENT, LLC FOR ADMNISTRATION OF EVENTS AND PROGRAMS AT THE GOLDFIELD TENNIS CENTER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on December 15, 2010 the City of Denton entered into a contract with Michael Christopher Brown and David Wayne Gray DBA Gray Events Management, LLC to provide the services of Head Tennis Pro Instruction, League and Tournament Management to its citizens utilizing Goldfield Tennis Center and other Denton PARR Tennis Courts; and WHEREAS, the said contract provided for an expenditure not to exceed $100,000; and WHEREAS, the City and Gray Events Management, LLC agree that the cost of services to be performed pursuant to the said contract has increased so as to not exceed $142,000; and WHEREAS, the City Council hereby finds that the increase in the cost of services to be performed pursuant to the said contract is appropriate and the City Council hereby approves such increase; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations in the preamble are true and correct and are incorporated herewith as part of this Ordinance. SECTION 2. The City Manager is hereby authorized to execute an Amendment to the Agreement with Gray Events Management, LLC, which Amendment is attached hereto and incorporated herein by reference. 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 effect 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 invalidity. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the original contract for services shall remain in full force and effect. SECTION 5. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 of 2 STATE OF TEXAS § COUNTY OF DENTON § AMENDMENT 1 TOCONTRACT FOR SERVICES 1. WHEREAS, on December 15, 2010 the City of Denton entered into a contract with Michael Christopher Brown and David Wayne Gray DBA Gray Events Management, LLC to provide the services of Head Tennis Pro Instruction League and Tournament Mana ement to its citizens utilizing Goldfield Tennis Center and other Denton PARD Tennis Courts (location [s]).; and WHEREAS, the said contract provided for an expenditure not to exceed $100,000; and WHEREAS, the City and Gray Events Management, LLC agree that the cost of services to be performed pursuant to the said contract has increased so as to not exceed $142,000; and WHEREAS, The City Council hereby finds that the increase in the cost of services to be performed pursuant to the said contract is appropriate and the City Council hereby approves such increase; NOW, THEREFORE, Article IV of the said contract is hereby amended to read as follows: IV. The parties have conducted negotiations and as a result of these negotiations agree that from June 16, 2010 - September 30, 2010: 80% of the class cam lea ue tournament private lesson andspecial event fees will be aid to the contractor. 20% will be retained b Denton PARR. 50% of Recreation. Fund expenses other than pro shop supplies) will be incurred b the contractor. The payment will automatically be deducted from the contractor's portion of the fees collected. Pro shop sales/inventory and racy uet stringing will be the responsibility of the Ci . All revenues collected from pro shop and racquet strip in will be retained b the City. Denton PARD will incur all costs associated with orderin pro shop and stria in materials. All non-resident fees collected will be retained b the City. From October 1, 2010 - September 30, 2011: 80% of the class cam league, tournament ball machine rental andspecial event fees will be aid to the contractor. 20% will be retained b Denton PARD. 85% of private lessons fees collected b David Gray, Christo her Brown or Brandon L'Heureux will be aid to the contractor. 15% will be retained b Denton PARD. Contractor's Initials 1 Staff's Initials ~ Date`~9` 80% of all other private lesson fees collected will be aid to the contractor. 20% will be retained b Denton PARD. 75% of Recreation Fund expenses other than 12ro sho su ties will be incurred b the contractor. The a ment will automatically be deducted from the contractor's portion of the fees collected. Pro shop sales/inventory and racquet stringing will be the res onsibili of the City. All revenues collected from pro shop and racquet stringing will be retained b the City. Denton PARD will incur all costs associated with ordering pro shop and stria 'n materials. All non-resident fees collected will be retained b the City. This is a just and reasonable fee structure for the performance or the services which are the subject of this contract. The fee is to be paid to contractor as follows: Contractor will be aid once per month. Invoices will be submitted b the 5th of each month. Pa meat will be remitted to contractor, net 30 da s from receipt of invoice. Contract not to exceed $142,000. Contract expires 9130111. Contractor and City acknowledge and agree that Michael Christopher Brown and David Wa e Gray DBA Gray Events Management, LLC are and shall be deemed to be an independent contractor for the services he/she provides under this Contract. Further, because Michael Christopher Brown and David Wa e Gray DBA Gray Events Management, LLC is an independent contractor, the parties agree: 1. The City will make no withholding for taxes of any type from the fee agreed upon in Article III. All taxes, including, but not limited to Social Security, unemployment, FICA or other monies owned to any State, Local or Federal governmental entity, including applicable penalties and interest, are to be paid by Contractor and are solely the liability of same. In the event a claim is made against City for payment of taxes, penalties or interest for or on behalf of Contractor, Contractor agrees to indemnify and hold harmless City of such damages, including costs and expenses. 2. City will not provide worker's compensation for Contractor for services performed pursuant to this Contract. 3. This is a non-exclusive contract. Contractor is free to advertise and provide his/her services to persons or entities other than the City. Further, City may offer classes/lessons similar to those provided by Contractor, and may use other contractors or its own employees to conduct the same services as Contractor. 4. Any insurance the City may have for its facility described above is solely for the benefit of the City. The City shall not be liable for injuries to property or persons (including death) which are the result of the activities of the Contractor. Contractor agrees he/she shall be liable for injuries to himself/herself or others caused by his/her own negligence, omissions, malfeasance, or intentional conduct. When applicable, for the services provided, contractor shall provide insurance for the activity as provided in the policies of the contract instructors program. 5. This contract shall terminate on September 30, 2011. 6. Al gt/her provisions of the said contract shall remain in fall force and effect. Contractor's Initials VE Staff's Initials " - Date t1 AGREED TO THIS DAY OF , 2011. CITY OF DENTON, TEXAS BY: GEORGE C. CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: CONTRACTOR BY: At irk Michael Christop er Br n d Tennis Pro BY: U4 V)avW David Wayne Gray, ead Tennis ro DEPARTMENT REPRESENTATIVE: BY: Heath ay, Denton Parks and Recreation Athletics Manag Contractor's Initials Staff's Initials Date v AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Suda Bhagwat from the Downtown Incentive Grant Program not to exceed $7,000; and providing for an effective date. (The Economic Development Partnership Board recommends approval 5-0.) BACKGROUND City Council approved the Downtown Incentive Reimbursement Grant Program on April 3, 2007. The 2010-11 Program received $50,000 from the General Fund. To date, $10,000 has been granted by City Council for 2010-11. The EDPB has reviewed and recommended additional grants in the amount of $30,000. If all grants are approved, the 2010-11 program balance will be $10,000. Applicant: Suda Bhagwat, owner, Congress Center Denton, Texas Mr. Bhagwat is the owner of Congress Center, at 603 N. Locust Street. He became aware of the grant after he began work on this extensive project. His application reflects a request for $50,000 for replacing gas, water and sewer lines; upgrading HVAC, upgrading the parking lot; new awnings; and utility impact fees. However, since this project has been partially completed, the project is only eligible for items which have not been initiated. Therefore, this grant recommendation applies only to awnings and utility impact fees. This building is located on the corner of Locust and Congress. The main portion of the building faces Congress, however one end faces Locust, which is the former location of Ravelin Bakery. Mr. Bhagwat is completely renovating the facility's interior and making extensive improvements to the exterior. When completed, it will house a restaurant and provide other commercial/retail opportunities. ESTIMATED SCHEUDLE FOR PROJECT The project is underway now and should be completed by the end of 2011. Agenda Information Sheet May 3, 2011 Page 2 PRIOR ACTION/REVIEW On February 10, 2011, the Downtown Task Force reviewed the grant application and recommended a grant in the amount of $7,000 for awnings and impact fees. The motion was approved 24-0. On March 21, 2011, the Economic Development Partnership Board reviewed the grant application and recommended a grant in the amount of $7,000. The motion passed 5-0. FISCAL INFORMATION The total cost of the project of Mr. Bhagwat's project is $1.2 million. A $7,000 grant represents a return on investment of $1117 1. EXHIBITS Grant Application Respectfully submitted: Julie Glover Economic Development Program Administrator IlcodadldepartmentsllegAour documentslo€dinances111\603 n. locust saratan corp orddoc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION FROM SUDA BHAGWAT FROM THE DOWNTOWN INCENTIVE GRANT PROGRAM NOT TO EXCEED $7,000; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, Suda Bhagwat applied for a $7,000 grant; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the request from Suda Bhagwat for $7.000 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of funds as provided in the Agreement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: saeconomic developmenNncentivesldowntown grantagreements1603 n, locustlordinance and agreement originaldoc DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT This Downtown Reinvestment Grant Incentive Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and Saratan Corporation, a Domestic For-Profit Corporation (the "Owner"), duly autho- rized to do business and in good standing in the State of Texas, duly acting herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Denton Downtown Reinvestment Grant Incentive Program; and WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a copy of which is on file in the City of Denton Economic Development Office and which is in- corporated herein by reference; and WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti- tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the City; and WHEREAS, Owner will be a tenant, as of the Effective Date (as hereinafter defined), which status is a condition precedent, of certain real property, more particularly described in Ex- hibit "A" attached hereto and incorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") as of the Effective Date; and WHEREAS, on the 12th day of January, 2011, Owner submitted an application for rein- vestment with various attachments to the City concerning the contemplated use of the Premises (the "Application"), which is attached hereto and incorporated herein by reference as Exhibit "B"• and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the purposes and are in compliance with the Ordinance and Program and similar guidelines and cri- teria adopted by the City and all applicable law; NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: 1. TERMS AND CONDITIONS OF REIMBURSEMENT saeconomic developmentlincentivesWowntown grant agreements1603 n, locustlordinance and agreement originaldoc A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City hereby grants the following reimbursement: 1. A reimbursement in an amount not to exceed $7,000 attributable to new capital investments, as hereinafter described, being constructed on the Premises. B. A condition of the Reimbursement is that, by May 3, 2012 (subject to force maje- ure delays not to exceed 180 days), a capital investment in the form of awnings and impact fees as described in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph, the term "force majeure" shall mean any circumstance or any condition beyond the control of Owner, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above-mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of awnings, utility upgrades, fagade and entryway work, as described in Exhibit "C" (the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to include costs related to the construction of the Improvements on the Premises. D. A condition of the Reimbursement is that the Contemplated Improvements be constructed and the Premises be used substantially in accordance with the description of the project set forth in Exhibit "B". E. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. II. CONDITION OF REIMBURSEMENT A. At the time of the award of the Reimbursement, all ad valorem real property taxes with respect to said property owned within the City shall be current. B. Prior to the award of the Reimbursement, Owner shall have constructed the Capi- tal Improvements as specified in Exhibit "B". III. RECORDS AND EVALUATION OF PROJECT A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information related to construction of the Improvements to insure that the Improvements are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner's business operations. Page 2 saeconomic developmentlincentivesldowntown grant agreements1603 n. locus6ordinance and agreement originaldoc IV. GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria for the Down- town Reimbursement Grant Incentive Program agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. D. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control. V. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsimile: OWNER: CITY: Suda Bhagwat George C. Campbell, City Manager Saratan Corporation City of Denton 603 N. Locust Street 215 East McKinney Denton, Texas 76201 Denton, Texas 76201 Fax No. 940.349.8596 VI. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the 3rd day of May, 2011, authorizing the Mayor to execute this Agreement on behalf of the City, a copy of which is attached hereto and incorporated herein by reference as Exhibit "D". Page 3 sAeconomic developmentlincentivesldowntown grantagreements1603 n, locustlordinance and agreement originaldoc VII. SEVERABULTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the term of the Reimbursement with re- spect to any property is longer than allowed by law, or (ii) the Reimbursement applies to a broader classification of property than is allowed by law, then the Reimbursement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. VIII. OWNER STANDING Owner, as a parry to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. IX. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, X. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XI. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument. Page 4 s:leconomic developmentlincentivesldowntown grant agreementM03 n. locustlordinance and agreement original doc XIII. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. XIV. NO JOINT VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. XX. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement. XXI. FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obli- gations under this Agreement, then the respective Parry's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. This Agreement is executed to be effective 30 days after the executed date of the day of , 2011, (the "Effective Date") by duly authorized officials of the City and Owner. PASSED AND APPROVED this the day of , 2011. CITY OF DENTON GEORGE C. CAMPBELL, CITY MANAGER Page 5 saeconomic developmenWncentivesldowntown grant agreements1603 n. locustlordinance and agreement originaldoc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: S DA BRAG T, OWNER ATTEST: BY: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared George C. Campbell, City Manager for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of , 2011. Notary Public in and for the State of Texas My Commission Expires: Page 6 s:leconomic developmentlincentiveAdowntown grant agreements1603 n. locus6ordinance and agreement originaLdoc STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Suda Bhagwat, Owner, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of 2011. MA~~ri r .;CHRISTINA DAVIS =g' NatoryFUbl9c, State of Texas Notary Public in and for the My Corni5sion 2x~p3es State of TX October 21 My Commission Expires: !D Z! Z06 Page 7 Exhibit A LEGAL DESCRIPTION 603 N. LOCUST A0185A BBB & CRR, TR 352. 0.4194 ACRES, OLD DCAD TR 111 Jan-12-11 07:35A o Exhibit B P.O1 TLA ° --34el --!K of~ ORDINAPY DOWNTOWN INCENTIVE REIMBURSEMENT GRANT PROGRAM APPLICATION Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney no later than 5 p.m. on the Monday prior to the 1" Wednesday of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940349-7731. If you have any building or sign permit/historic pre rvationtesti a please co pt ct the Historic Preservation Officer at 940-349.7732. 1 G; a 4Jc+ T • Applicant Name Date 1 v 1 4 Business Name 1 • Mailing Address [ Z h a ~L, 1 1 K 4 Contact Phone- -k( -7- Email Address ~f ~L. G r t~v i 71 4J 4 Building Owner (Vdiffereni from applicant) ~LtJZ i- u 4 Historical/Current Building Name 4 Physical Building Address L'a /J L Q C'--' { 4 Type of Work: (check all that apply) L-~ 1 L.-efagade Rehabilitation ^ Fagade - Paint-only U"'Awnin s Signage - Impact Fee ✓1Jtility Upgrade t Details of Planned Improvements for Downtown Incentive Reimbursement Grant: (attach additional paper if ecessary) n List Contractor/Project ar Vtect ro posals and Total Amounts (please attach original proposals): Q 2. • TOTAL. COST OF PROPOSFD PROJECT: ,~J SZ C] ~~Yct vti 1 ( G u U 4 AMOUNT OF GRANT REQUESTED (50% OF TOTAL COST ABOVE). A 111 Q J 4 Complete budget detail form attached on page ] Attach with all required color samples of paint!, awning/canopy, sign design, etc., as well as phonographs of huffi ing's eiderior fatcade, roof and foundadoiL e-j A plica W's Signatitre bate 10 of 12 S:tlnzaHre PtaKrmnt[krµnlown Iricrntlre Gram Prato-gym Appliaelondx Jan-12-11 07:36A O 0 P.02 T . of ORDINARY HOW WILL THIS PROJECT BENEFIT DOWNTOWN DENTON? CA, BUDGET DETAIL PROJECT EXPENDITURES CITY FUNDS REQUESTED APPLICANT'S FUNDS TOTAL, FACADF. RF.HAR ^ AWNINGS/SIGNS f f 2,5 IMPACT FEES UTILITY UPGRADES -i / TOTALS C) 0 ATTACFI EXACT COLOR SAMPLES, MODEL NUMBERS (WINDOWS, DOORS, LTC.), PIIOTOS AND/OR SKF I'CIiES OF WORK TO BE COMPLETED. PLEASE INCLUDE AS MUCH DETAIL AS POSSIBLE, 11 of 12 S-Un=llvo PrngmmtNvmtown immtivc Orant Pmgmm Applimflon dm Jan-12-11 07:37A O O P.05 Of DOWNTOWN INCENTIVE REIMBURSEMENT GRANT AGREEMENT FORM Please return completed with necessary attachments and signature to Downtown Development office, 215 K Mcf(inney no later than 5 p.m. on the Monday prior to the 1't Wednesday of each month, If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at 940-349-7732. 1 have met with the Downtown Project Coordinator, and I fully understand the Downtown Incentive Reimbursement Grant Procedures and Details established by the Denton City Council. I intend to use this grant program for the aforementioned renovation projects to forward the efforts of revitalization and historic preservation of Denton's historic downtown. 1 have not received, nor will I receive insurance monies for this revitalization project. I have read the Downtown Incentive Reimbursement Grant Application Procedures including the Downtown Incentive Reimbursement Grant Details. I I understand that if I am awarded a Downtown Incentive Reimbursement Grant by the Denton City Council, any deviation from the approved project may result in the partial or total withdrawal of the Downtown Incentive Reimbursement Grant. If I am awarded a reimbursement grant for fagadc, awning or sign work and the fagade, sign or awning is altered for any reason within one (1) year from construction, I maybe required to reimburse the City of Denton immediately for the full amount of the Downtown Incentive Reimbursement Grant. Business/Organization Name Applicant's Signature Printed Name - Date Building Owner's Signature (fd erent from applicant) Printed Name Date D77F Signature (obtain signature at DTTF meeting) Recommendation Date EDPB Signature (obtain signature at BDPB meeting) Recommendation Date 12 of 12 S:IIn= ive Pnigram0ownimn Inmtlve6nrc Pmprun Applimimadw Jan-27-11 11:23A O Exhibit C P.01 I I I Saratan Corporation H c/o Suda G. Bhagwat 125 Twin Lake Drive Double Oak, Texas 75077 Phone No: 817-430-4090 Mobile No : 817-880-5152 e-mail: sgbhagwat@hotmail.com Fax No. 817-491-4432 sgbhagwat@tx.rr.coin January 27, 2011 Ms, Julie Glover Program Coordinator Economic Development City of Denton Denton, Texas 76201 Phone No: 940-349-7732 Fax No: 940-349-8596 Thank you for taking the time to discuss the Downtown Incentive Reimbursement Grant. We have reviewed the information you had kindly provided to us and have the following list of projects yet to be completed. After your review, please advise which ones are pertinent to the grant application and we will supply the necessary data. We have bids for all the work we undertake and indeed drawings where necessary. I As you are aware, we have done a lot of repair work at the building and still more needs to be done. We would like the Congress Center to be a showpiece of downtown improvements. We had completed a similar renovation project on Loop 2888, Denton Development Center, and you might have read the article which appeared in the Denton Chronicle about four years ago. Economic development grants are very useful especially when the conventional lenders are not willing to finance retrofits and especially those implemented by small businesses. The Projects yet to he implemented 1. Upgrade old gas lines and gas meters to provide the requirements of the tenants; -1.4 million btu to restaurant and the Multipurpose Hall and - 0.75 million btu to remaining two suites. Cost $ 8,200 2. Replace and upgrade old sewer and water lines to all four suites. Cost $ 31,565 - upgrade 3 inch cast iron to 4 inch schedule 40 PVC line as required by tenants. $ 15,600 - upgrade two grease trap capacities from '-50-100 gallons to two 1000 gallons tanks as required by Code and tenants. $ 8,000 Jan-27-11 11:23A O O p,02 Upgrade water supply to accommodate the anticipated fixture counts for the four suites. $ 7,965 3. Upgrade HVAC ducts in Suites 603 N. Locust, 108 East Congress, And 110 East Congress (about 805% of the building) and install a new four ton unit in 603 as required by tenants. Cost $ 33,651 4. Upgrade 60% of the interior walls to replace untreated plates with treated. Cost $ 7,600 5. Upgrade parking lot and install one ADA curb ramp. Resurface the entire lot with 2-4 inches of asphalt, restripe, install ADA signs, and install 25 wheel stops. Cost $ 12,235 6. Upgrade dilapidated awning frames with new upgraded ones and install new fabric awning all around the building. Cost $ 17,209 - New frames to replace the old, dilapidated, built using conduits. Cost $ 9,848 - Supply and install new fabric owning Cost $ 7,361 7. Upgrade water supply lines, piping only, to two new meters on Congress St. Cost $ 6,500 8. Upgrade water supply to the restaurant. Tap Fee etc. Cost $ 12,720 There are obviously many projects regarding the interior finish out for the tenants, such as plastering the walls, painting, new floor treatments, window treatments. We are not including such projects because we understood from the literature you provided that these projects might not be candidates for the Grants. Thank you for your kind and expeditious assistance. Sincerely, 4. 'Suda G. wa SGB/ej Jan-27-11 11:23A O O P.03 WILSON MCLAIN PLUMBING P 0 Box 1114 Krum Texas 76249 940-482-7910 1926 940-482-6907 fax wl l son m cI a i n@ e m ba rq m a it , co m 1126/2011 SUDA G BHAGWAT SODA G BHAGWAT SARATAN CORPORATION SARATAN CORPORATION 125 TWIN LAKE 125 TWIN LAKE DOUBLE OAK, TX, 75077 DOUBLE OAK, Tx, 75077 CONGRESS CENTER UPGRADE 3" CAST IRON LINES TO 4" SCHEDULE 40 PVC TO EFFICIENTLY HANDLE SEWAGE REQUIREMENTS $15,600,00 $15,600.00 Texas State Board of Plumbing Examiners RO, Box 4200 $0.00 Austin Texas 78765 1-800-845.6584 M-21075 Total Amount Due $15,600.00 I Jan-27-11 11:24A O P.04 WILSON MCLAIN PLUMBING P O Box 1114 Krum Texas 76249 940-482-7910 1925 940-482-6907 fax wilsonmclatn@embargmalf.com ALL ® 1/26/2011 SUDA'G BHAGWAT SUDA;G BHAGWAT SARATAN CORPORATION SARATAN CORPORATION 125 TWIN LAKE 125 TWIN LAKE DOUBLE OAK, TX, 75077 DOUBLE OAK, TX, 75077 CONGRESS CENTER I UPGRADE GREASE TRAPS TO 1000 GALLONS AS REQUIRED $8,000.00 I 'I $8,000.00 Texas State Board of Plumbing Examiners P.O. Box 4200 $0.00 Austin Texas 78765 1-800-845-6584 M-21075 Total Amount Due $8,000.00 I Jan-27-11 11:24A O P_05 North Texas Headn & Air 1Conditidnin Awe. A 0..8ox 11, Argyle, IX 76226 7'-ACLA01467C 9401240-1193 or 972!22.1-6162 January 14, 2011 Suds Bhagwat 125 Twin Lakes Dr. Double Oak, TX 75077 RE: 603 N, Locust- Restaurant and Party Room Such, We arc pleased to provide to you this proposal for install in the air conditioning, ducts and controls in the restaurant and party room. Here is an itemized list of what bve will provide: Restaurant • Install spiral duets with rectangular grills for the mL and private dining rooms. • Install flex duct with surface mounted grills in the kitchen and food prep areas. • Install touch screen 7-day programmable thermostats with remote sensors. All three thermostats will be installed in the office. The remote sensors will be --bunted inside the return air ducts. • Install smoke detectors with sensing tubes in two 16 ton units. • Provide a start up and initial service for three syste s. • Install one new 4 ton Carrier gas pack air conditionir for the private dint g. • Install condensate drain piping for three systems. + Provide and install bathroom exhaust, duct. The total. for all work that is described will be $20,012.00 Party Room • Install spiral ducts with rectangular grills for the systems for party room. • Install supply air ducts into bathrooms and two roo s that are separate from the main party room. • Install touch scree 7-day programmable thaTmostais with remote sensors. • Install smoke dete tors with sensing tubes in all thr~e systems. d Provide a start up and initial service for three systcAw • Install condensate brain piping for three systems. • Install three fire dopers in fire wall. • Provide and install[bathroom exhaust duct. The total for all work that; s described will be $13,639.00. Exclusions: Any line volt)9c wiring, fuel gas piping or roo ng. Any repairs or modificatiom that may be repaired for the existing equipment. Certified air balancin Any work eonceming the kitchen exhaust hood, we will not provide bathroomexhausrfans. If you have any quesdons,l plGasc let me know. Thank you Rodney P n President Aep1m W Ey ne Texas Dopswnent Uunj ift and AoSWadw, P.Q. Box 12157, Awnin. Texas 78711. 800-M-9202.512463-65" Jan-27-11 11:24A O O P.06 All-State Paving, Inc. All State Paving Inc Post Office Box 140155 Invoice Irving, TX 75014-0155 (972)785-0070 01/06/2011 10284REV kb@all statepaving.net Due on receipt 01/06/2011 Suda G. Bhagwat I 125 Twin Lakes Dr Double Oak, TX 75077 $12,235.00 Please detach top portion and return with yourpayment. 01/06/2011 613 sgft trenching inside 1 i 2,452.00 2,452.00 bldg 01/06/2011 180 Inft curb behind bldg 1 l 1,400.00 1,400.00 01/06/2011 '491 sqft of6 in concrete 1 1,964.00 1,964.00 .outside trenching parking area 01/06/20111116 sgft city sidewalk 1 464.00' 464.00 01/06/2011;534 sqft city approach 1 2,670.00: 2,670.00 01/06/2011 I Patch floor 1- 300.00: 300.00 01 /06/20111597 sgft building ratnps/sidewalks 1 2,985.001 2,985.00 ~ I j SUBTOTAL $12,235.00 TAX (8.25%)' $0.00 i I Jan-27-11 11:25A O O P.07 1130 Tate lane e l t i s Bartonville, TX 76226 OWke: (940)-566-6321 Q f nQ Fax: (214) 276-1782 Invoice Insurance Co: Suda Bhaqwat Claim No: Congress Center Policy No: Denton, TX Date 1-6-11 Description Amount Unit Subtotal Price Supply and construct steel awnings Powder coat with silver finish Install awnings 5.00 $9,848.00 I Total 9,848.00 Simon Shetll5 214-475-5141 I Jan-27-11 11:25A O O P.08 NniA NORTH TEXAS TARP & AWNING, LLC January 26, 201 1 Mr_ Sudu G. Bhagwat 125 "twin Oaks Drive Double Oak, TX 75077 Re: Recovering awnings at 503 N. Locust, Menton, TX. bear Mr. Shagvvat: F any pleased to ofi'er you our quotation to cover the new frames installed on your property at the above rcfereneed property. My quotation includes sales tax of 8.25% because the job is subject to this tax unless you are able to Famish a sales tax exemption certificate, Price to construct and Install Sunbrella awning fabric of your choice on the eii.stfng frames, no mkove ott the hottont, would he S6,672. 00 phis sates tar of SS0.44, inaking a total of $7,22Z45, We had also ordered a total of Syds of Sunbrefia trraterial for your use. 77hIs wou d be an additional $128 plus Tax of 8.25;,k 610.56, making a total of Si3H.S6 Price is firm for.i'0 days from the above date and does not include permits or engineering drawings. Delivery 3 - 4 weeks ARO upon receipt of deposit, depending neon prior commitments Terms. SfI% deposit to place the order mho pro4rcdan, balance Is payable within + days of lastallrrtion elate to avoid late charges of I% pirr month on anpald balance. Manufacturer of the fabric offers a M years limited warranty against the fabric becoming unserviceable clue to color and strength loss Should fabrie foil within the warranty parameters in the first year, we will replace ft free of charge' y rile offer a 3 year' limited warranty against defects it: our workmanship. Mistave ofproducl, intentional dainage, damage eaused by frame iscaes, or weather related damage are not covered tinder any of the warranties offered. 'T'hank you again for the opportunity of quoting you. Sincerely, Rwmrnary Krienkc 3300 West University • Denton, Texas 76207.940-566-6619 • Fax 940442.6219 • www,porthtexastarp.com Jan-27-11 11-25A O wmaows Live rnounall rrint iviessage P.09 rage i or t FW: Tap, Meter, and Impact Fees Whittle, Mark (Mark.Whittle@cityofdenton.com) Fri 1/14/111,19 PM sgbhagwat@hotmaif.com' (sgbhagwat@hotmail.com) From: Ogden, Cassandra Sent: Friday, January 14, 20111:19 PM To; Whittle, Mark Subject; FW: Tap, Meter, and Impact Fees Fees are as follows: 108 W Congress- Meter 19256 1" Meter New Tap with no meter in street - $1,325 110 W Congress - Meter 19258 Currently 1" Meter New Tap with no meter in street - $1,325 114 W Congress - Meter 19259 Currently 1" Meter New Tap with no meter in street -$1,325 Total for 3 -1" meters with new taps = $3,975 Estimate for 603 N Locust, pending SFE count from Building Inspections: Currently has 4" meter with 3/" service line, wanting to upgrade to 1" meter - pending SFE count, Estimate for 1" meter upgrade is as follows: Tap fee with meter and credit for existing 4" meter, $1,395 Water Impact Fee with credit for existing 4" meter: $5,100 Wastewater Impact Fee with credit for existing 4" meter: 2 2S0 Total for 1" meter upgrade from current 4" meter; 8 745 Total Estimate ($3,975 + $$,745)= $12,720 (pending SFE count for restaurant at 603 N Locust) Cassandra Ogden Water Metering 940-349-8456 Fax 940-349-7184 http://by 126w.bay 126.mail.live.cam/maiVPrintMessages.aspx?cpids=365efa72-2013-11 e0-9075-00215ad... 1/14/2011 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Becky and Vince King from the Downtown Incentive Grant Program not to exceed $15,000; and providing for an effective date. (The Economic Development Partnership Board recommends approval 5-0.) BACKGROUND City Council approved the Downtown Incentive Reimbursement Grant Program on April 3, 2007. The 2010-2011 Program received $50,000. To date, $10,000 has been granted by City Council for 2010-11. The EDPB has reviewed and recommended additional grants in the amount of $30,000. If all grants are approved, the 2010-11 Program balance will be $10,000. Applicant: Becky and Vince King Denton, Texas Mr. and Mrs. King own the building at 315 S. Locust, which houses their company, Entech Design. They would like to improve the existing building, which faces Locust Street, and add new constriction at the rear of the building. The new building would run perpendicular to the existing building and would go back to Wainwright Street. When completed, the new building will house retail and office space on the ground floor and apartments on the top two floors. ESTIMATED SCHEUDLE FOR PROJECT The project is underway now and should be completed by spring of 2012. PRIOR ACTION/REVIEW On March 10, the Downtown Task Force the reviewed the grant application and recommended a grant in the amount of $15,000 for new constriction and impact fees. The motion was approved 10-0. On March 21, 2011, the Economic Development Partnership Board reviewed the grant application and recommends a grant in the amount of $15,000. The motion passed 3-2. Agenda Information Sheet May 3, 2011 Page 2 FISCAL INFORMATION The total cost of the project is $1.5 million. A $15,000 grant represents a return on investment of 1:100. EXHIBITS Grant Application Respectfully submitted: Julie Glover Economic Development Program Administrator llcodadldeparftncntsllegallour documentslordinances111\315 s. locust becky and vince king ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION FROM BECKY AND VINCE KING FROM THE DOWNTOWN INCENTIVE GRANT PROGRAM NOT TO EXCEED $15,000; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, Becky and Vince King applied for a $15,000 grant; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the request from. Becky and Vince King for $15,000 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of funds as provided in the Agreement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: sAeconomic developmentlincentivesldowntown grant agreements1315 s. locustlordinance and agreement originaldoc DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT This Downtown Reinvestment Grant Incentive Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and Becky King, Owner of Meridian of Denton, a Limited Liability Corporation (the "Owner"), duly authorized to do business and in good standing in the State of Texas, duly acting herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Denton Downtown Reinvestment Grant Incentive Program; and WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a copy of which is on file in the City of Denton Economic Development Office and which is in- corporated herein by reference; and WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti- tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the City; and WHEREAS, Owner will be the owner, as of the Effective Date (as hereinafter defined), which status is a condition precedent, of certain real property, more particularly described in Ex- hibit "A" attached hereto and incorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") as of the Effective Date; and WHEREAS, on the 14th day of February, 2011, Owner submitted an application for rein- vestment with various attachments to the City concerning the contemplated use of the Premises (the "Application"), which is attached hereto and incorporated herein by reference as Exhibit "B". and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the purposes and are in compliance with the Ordinance and Program and similar guidelines and cri- teria adopted by the City and all applicable law; NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: I. TERMS AND CONDITIONS OF REIMBURSEMENT saeconomic developmentlineentivesldowntown grantagreements1315 s. locustlordinance and agreement originaidoc A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City hereby grants the following reimbursement: 1. A reimbursement in an amount not to exceed $15,000 attributable to new capital investments, as hereinafter described, being constructed on the Premises. B. A condition of the Reimbursement is that, by May 3, 2012 (subject to force maje- ure delays not to exceed 180 days), a capital investment in the form of awnings and impact fees as described in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph, the term "force majeure" shall mean any circumstance or any condition beyond the control of Owner, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above-mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of awnings, utility upgrades, fagade and entryway work, as described in Exhibit "C" (the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to include costs related to the construction of the Improvements on the Premises. D. A condition of the Reimbursement is that the Contemplated Improvements be constructed and the Premises be used substantially in accordance with the description of the project set forth in Exhibit "B". E. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. II. CONDITION OF REIMBURSEMENT A. At the time of the award of the Reimbursement, all ad valorem real property taxes with respect to said property owned within the City shall be current. B. Prior to the award of the Reimbursement, Owner shall have constructed the Capi- tal Improvements as specified in Exhibit "B". III. RECORDS AND EVALUATION OF PROJECT A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information related to construction of the Improvements to insure that the Improvements are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner's business operations. Page 2 s:leconomic developmentlincentivesldowntown grant agreements1315 s. locuMordinance and agreement originaldoc IV. GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria for the Down- town Reimbursement Grant Incentive Program agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. D. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control. V. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other parry or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsimile: OWNER: CITY: Becky King George C. Campbell, City Manager Meridian of Denton, LLC City of Denton 315 S. Locust Street 215 East McKinney Denton, Texas 76201 Denton, Texas 76201 Fax No. 940.349.8596 VI. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the 3rd day of May, 2011, authorizing the Mayor to execute this Agreement on behalf of the City, a copy of which is attached hereto and incorporated herein by reference as Exhibit "D". Page 3 saeconomic developmentlincentivesldowntown grant agreements1315 s. locustlordinance and agreement originaldoc VII. SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the term of the Reimbursement with re- spect to any property is longer than allowed by law, or (ii) the Reimbursement applies to a broader classification of property than is allowed by law, then the Reimbursement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. VIII. OWNER STANDING Owner, as a parry to this Agreement, shall be deemed a proper and necessary parry in any litigation questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. IX. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, X. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XI. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument. Page 4 s:leconomic developmendincentivesldowntown grantagreements13I5 s. iocus6ordinance and agreement original doc XIII. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. XIV. NO JOINT VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. XX. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement. XXI. FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obli- gations under this Agreement, then the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. This Agreement is executed to be effective 30 days after the executed date of the day of , 2011, (the "Effective Date") by duly authorized officials of the City and Owner. PASSED AND APPROVED this the day of , 2011. CITY OF DENTON GEORGE C. CAMPBELL, CITY MANAGER Page 5 saeconomic developmentlincentivesldowntown grant agreements1315 s. locustlordinance and agreement originaldoc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY f.. BY: BECKY KING, O ER<ILL-C MERIDIAN OF E TO ATTEST: BY: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared George C. Campbell, City Manager for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of , 2011. Notary Public in and for the State of Texas My Commission Expires: Page 6 s:leconomic developmentlincentivesldowntown grantagreements1315 s. locustlordinance and agreement original doe STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Becky King, owner of Meridian of Denton, LLC, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this in- strument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of Q1''l j , 2011. awl Notary Public in and for the tiaQ,. CHRISTINA DAVIS Notary Public, State of Texas State of TX My Commission Expires October 21, 201 s My Commission Expires: /0 2 tu! Page 7 Exhibit A LEGAL DESCRIPTION 315 S. LOCUST KING ADDN BLK I LOT I Exhibit B r ~ l~ ~ t U l of f - t.- DOWNTOWN INCENTIVE REIMBURSEMENT GRANT PROGRAM APPLICATION Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney' no later than 5 p.m. on the Monday prior to the 1" Wednesday of each month. If you, have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at 940-349-7732. Date , 4 Applicant Name Be.ce 4 i M 4 Business Name M LLC-.. 4 Mailing Address ) ~ ~0 CuS 4 Contact Phone CI l~ - ~o ~J - Dr Email Address 7 , (C a Building Owner (lf different from applicant) 11 t l e c 1 n t t1 }c ` ~i lie r.~n,n (ec Trl-u ♦ Historical/Current Building Name It 3t6 S, I 4 Physical Building Address ♦ Type of Work: (check all that apply) >1 Fagade Rehabilitation Fagade - Paint-only /Awnings ✓ L/ Signage Impact Fee -V/ Utility - Upgrade t Details of Planned Improvements for Downtown Incentive Reimbursement Grant: (attachadd/tlonal paper if necessary pp nn } t1 c~e~c~ t tr°~e~~ h'ctt fwcXCc t rlQnrt't Ct1~ Lh -5 l,Jk r List Contractor/Project architect Proposals and Total Amounts (please attach original proposals): i LL.w.dZ.l- ` 1. ~C..mC1 •.e 4` - 4 TOTAL COST OF PROPOSED PROJECT:' 161 t 15 0 4 AMOUNT OF GRANT REQUESTED (50% of TOTAL COST ABOVF')' `~~Q Cep ~ ♦ Complete budget detail form attached on page 13 Attach with all required color samples of paint, awning/canopy, sign design, etc., as well as photo raphs of buildin 's exterior facade, roof and foundation. Applicant's Signat a ate 10 of 12 Sancontivo Progr=m Downlown Incentive Grant Program APPlicaflaitdoe 9 qy of HOW WILL THIS PROJECT BENEFIT DOWNTOWN DENTOM We are re-furbishing and expanding our privately-owned 1940's era building, once the home of Denton Electric Shop. This expansion will feature architecturally appealing period-based residential and retail space with onsite parking, increased greenspace and re-configured street parking. By incorporating several points in the Denton Downtown Master Plan, this project will enhance the immediate area as well as the approach on Locust toward the Square. It will increase density by adding modern living space in conjunction with added retail space. The improvements, including parking and increased greenspace will benefit the living and working experience of neighborhood occupants and pedestrians. BUDGET DETAIL-see attached PROJECT EXPENDITURES CITY FUNDS REQUESTED APPLICANT'S FUNDS TOTAL FAgADE REHAB 6,125 6,125 12,250 AWNINGS/SIGNS 250 250 500 IMPACT FEES 8,625 8,625 17,250 UTILITY UPGRADES 10,000 10,000 20,000 TOTALS 25,000 25,000 50,000 ATTACH EXACT COLOR SAMPLES, MODEL NUMBERS (WINDOWS, DOORS, ETC.), PHOTOS AND/OR SKETCHES OF WORK TO BE COMPLETED. PLEASE INCLUDE AS MUCH DETAIL AS POSSIBLE. 11 of 12 S:Uncentive ProgrwnlDowntown Incentive Grant Program Appllcation,doc j 01, 1 I DOWNTOWN INCENTIVE REIMBURSEMENT GRANT AGREEMENT FORM Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney no later than 5 p.m. on the Monday prior to the 1'l. Wednesday of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at 940-349-7732. I have met with the Downtown Project Coordinator, and I fully understand the Downtown Incentive Reimbursement Grant Procedures and Details established by the Denton City Council. I intend to use this grant program for the aforementioned renovation projects to forward the efforts of revitalization and historic preservation of Denton's historic downtown. I have not received, nor will I receive insurance monies for this revitalization project. I have read the Downtown Incentive Reimbursement Grant Application Procedures including the Downtown Incentive Reimbursement Grant Details. I understand that if I am awarded a Downtown Incentive Reimbursement Grant by the Denton City Council, any deviation from the approved project may result in the partial or total withdrawal of the Downtown Incentive Reimbursement Grant. If I am awarded a reimbursement grant for fagade, awning or sign work and the fagade, sign or awning is altered for any reason within one (1) year from construction, I may be required to reimburse the City of Denton immediately for the full amount of the Downtown Incentive Reimbursement Grant. kING ~\DIMTIQ~ - _,~ush ganlZatlon Name Applicant's Signate Pri led Name Date Building Owner's Signature (if different from applicant) Printed Name Date DPTFSignature (obtain signature at DTTFmeeting) Recommendation Date EDPB Signature (obtain signature at EDPB meeting) Recommendation Date 12 of 12 S:Uncentivo PmgratnXDowntown Incenlive Grwd Pmgrmn Applicarion.doe Exhibit C From: GEES Office [office@gees.us] Sent: Monday, January 03, 2011 11;03 AM To: Vince King Subject: Fwd: Vince King Addition Impact Fees - Phase I Original Message Sub,jectNince King Addition Impact Fees - Phase I Date:Sun, 2 Jan 2011 18:28:27 -0600 F'rorn:Jenks, Jim <Jiiii.JenksLiicityof(leiiton,com> To:'GELS Office' <office(-)i ees,us> CC:Loiselle, EmilyA. <Eiiiilv.Loise.Ile(c-i),cityofdontoii.coiii>, Patterson, Rodney D. <Rodney, Patterson ncityofdenton.com> Greg: Based on the assumption that multifamily having two bedrooms would have a larger water service fixture unit count that would a salon in the same space, the same Water and Sewer Impact Fees would be charged for either option for Phase 1, and would be $11,492.00 and $5,746,00, respectively. These fees would be due at time of Building Permit. James S. Jenks, P.E. City of Denton ph: (940) 349-7112 From: GEES Office [mailto:officeCd)gees,us] Sent: Friday, December 03, 2010 5:05 PM To: Jenks, Jim Subject., King Addition Mr. Jenks, Please verify that the following respnses address your comments. Thank your for your tune, Water Comment #5. Applicant has indicated there are two possible scenarios for new development of this property. One involves multifamily only, with 28 bedrooms, That would yield Water Impact Fees calculated as follows: Domestic: (28 bedrooms) x (0.26 SFE's/bedroom) x ($3,400.00/ SFE) = $24,752.00 Irrigation: 0 Total: $24,752,00 The other involves multifamily (26 bedrooms) and a 1,400-square-foot salon. Water Impact Fees for that option will depend on how Applicant proposes to meter the salon. City records indicate that only one water meter has been removed at this property. It was on a -1/4" service line coaling off of Wainwright, and was removed over 10 years ago. Per City's Impact Fee Ordinance, no impact fee credit would be issued for that meter. Response: Based on this computation it appears that the Water Impact fee for the 13 bedroom option for Phase I would be $11,492.00. Based on the current plans the Salon and the apartments with 11 bedrooms would be metered off of the same meter. What would be the Water Impact Fee for this option? At what point is this Impact fee collected? y O O 0 0 0 O O O O O O O O O O O C; 0 CD of Q O O O O O Lt1 O N O C R. O O 0) Ln F Ln O O U7 r- O O O O O O O O p O O O O O O O z p p O O O O O O U) O O O l^. O O C LL N O U7 r- h z Fi41 C CL Q O O O O O O O ® p p 0 0 0 O O O W O O 0 0 0 O O O O In ter tt) tt1 Ln N O O N ~ LLI ul N ~ -b9- Lu z d L.L J .G 41 U) U O H~ ul W V) Z m z 0 O p) 0- 1J cD O a X N E U) Q a. a) C: U7 p w , a_ c W t C: Ll z o O~ ~ n cu v Cn p W co ri c cn c ~ C a. d . :2 c LI) ° c 4-J t7 'u (D x X S- c N 0 ~ c f a) w a) ro 0- - a w 4-d C: _ 4-J m V) 0) CD Q) C: a) - C] w M Z3 :3 h Q (D u LU O 'M U CvY Q J -j -Fj Ln C: a- 0 0 h V n co LL Ldi ,4 N N E M C L n d +-i 0 0 0 LO t.D Lr) 1- 00 0 0 6 Lr) lll~ l) 0 O 0 0 C 0 Ln All- 0 o v U) Q) vcu E U ° U Q Q' N m - cy) L U'1 -o D c 4-d 'Z- Q < ; U~ L N 0" 0 , , 5r r' i x 17 ~ b ~ i t~- V S fi _ ! r 1 i r 4 j _ r tl I'- t pJ3 1F If ~r hl i I 1 r i 'lS 1HE)NMNIVAA I 0 y LL u- LL it ! u~Jc4m ui - 0 1 u ( ! 000 ( mo t i I ry ~ ~ f - ~1 1} - i ~ 1 6110 l 'l isnOO-1 Hinos AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Samuel Solomon from the Downtown Incentive Grant Program not to exceed $7,000; and providing for an effective date. (The Economic Development Partnership Board recommends approval 5-0.) BACKGROUND City Council approved the Downtown Incentive Reimbursement Grant Program on April 3, 2007. The 2010-2011 Program received $50,000. To date, $10,000 has been granted by City Council for 2010-11. The EDPB has reviewed and recommended additional grants in the amount of $30,000. If all grants are approved, the 2010-11 program balance will be $10,000. Applicant: Samuel Solomon Denton, Texas Mr. Solomon is the owner/operator of Hoochie's Seafood Restaurant. The building is located at the edge of the greater Denton Arts Council's (GDAC) parking lot, and was formerly office space for GDAC. When Mr. Solomon filled out the original grant application, that this was a duplicate address, and assigned 207 N. Bell as the new address for this building. Mr. Solomon has owned and operated Aw Shucks Restaurants in Dallas for many years. Mr. Solomon requested $3099.82 for awnings and signage; the Task Force suggested that he apply for the smaller sign/faced grant for the signage, which he has done. ESTIMATED SCHEUDLE FOR PROJECT The project is underway now and should be completed by September 2011. PRIOR ACTION/REVIEW On March 10, the Downtown Task Force the reviewed the grant application and recommended a grant in the amount of $1500 for awnings. The motion was approved 10-0. On March 21, 2011, the Economic Development Partnership Board reviewed the grant application and recommends a grant in the amount of $1500. The motion passed 5-0. Agenda Information Sheet May 3, 2011 Page 2 FISCAL INFORMATION The total cost of the project is $70,000. A $1,500 grant represents a return on investment of 1:46. EXHIBITS Grant Application Respectfully submitted: Julie Glover Economic Development Program Administrator 1lcodadldepartments\legallour documentslordinances111\207 a. bell hoochies seafood ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION FROM SAMUEL SOLOMON FROM THE DOWNTOWN INCENTIVE GRANT PROGRAM NOT TO EXCEED $7,000; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, Samuel Solomon applied for a $7,000 grant; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the request from Samuel Solomon for $7.000 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of fields as provided in the Agreement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: saeconomie developmentlincentivesldowntown grant agreements1247 n, bell - restaurantlordinance and agreement original.doc DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT This Downtown Reinvestment Grant Incentive Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and Samuel Solomon, a Limited Liability Corporation (the "Grantee"), duly authorized to do business and in good standing in the State of Texas, duly acting herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Denton Downtown Reinvestment Grant Incentive Program; and WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a copy of which is on file in the City of Denton Economic Development Office and which is in- corporated herein by reference; and WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti- tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the City; and WHEREAS, Grantee will be a tenant, as of the Effective Date (as hereinafter defined), which status is a condition precedent, of certain real property, more particularly described in Ex- hibit "A" attached hereto and incorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") as of the Effective Date; and WHEREAS, on the 3rd day of March, 2011, Grantee submitted an application for rein- vestment with various attachments to the City concerning the contemplated use of the Premises (the "Application"), which is attached hereto and incorporated herein by reference as Exhibit "B"• and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the purposes and are in compliance with the Ordinance and Program and similar guidelines and cri- teria adopted by the City and all applicable law; NOW, THEREFORE, the City and Grantee for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: I. TERMS AND CONDITIONS OF REIMBURSEMENT sAeconomic developmentlincentivesldowntown grant agreements1207 n. bell - restaurantlordinance and agreement origlnal.doc A. In consideration of and subject to the Grantee meeting all the terms and condi- tions of reimbursement set forth herein, the City hereby grants the following reimbursement: 1. A reimbursement in an amount not to exceed $1,500 attributable to new capital investments, as hereinafter described, being constructed on the Premises. B. A condition of the Reimbursement is that, by May 3rd, 2012 (subject to force majeure delays not to exceed 180 days), a capital investment in the form of facade work, awn- ings, bringing the entryway up to American Disability Act standards, impact fees and utility up- grades as described in Exhibit "B" be constructed on the Premises. For the purposes of this pa- ragraph, the term "force majeure" shall mean any circumstance or any condition beyond the con- trol of Owner, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above-mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of awnings, as described in Exhibit "C" (the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to include costs related to the construction of the Improvements on the Premises. D. A condition of the Reimbursement is that the Contemplated Improvements be constructed and the Premises be used substantially in accordance with the description of the project set forth in Exhibit "B". E. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. II. CONDITION OF REIMBURSEMENT A. At the time of the award of the Reimbursement, all ad valorem real property taxes with respect to said property owned within the City shall be current. B. Prior to the award of the Reimbursement, Grantee shall have constructed the Cap- ital Improvements as specified in Exhibit "B". III. RECORDS AND EVALUATION OF PROJECT A. The Grantee shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information related to construction of the Improvements to insure that the Improvements are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Grantee's business operations. Page 2 sAeconomic developmentlincentivi sMowntown grant agreements1207 n. bell - restaurm tlordinance and agreement Original.dOC IV. GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria for the Down- town Reimbursement Grant Incentive Program agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. D. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control. V. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsimile: GRANTEE: CITY: Samuel Solomon George C. Campbell, City Manager 6826 Robin Willow Ct. City of Denton Dallas, TX 75248 215 East McKinney Denton, Texas 76201 Fax No. 940.349.8596 VI. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the 3`d day of May, 2011, authorizing the Mayor to execute this Agreement on behalf of the City, a copy of which is attached hereto and incorporated herein by reference as Exhibit "D". Page 3 saeconomic developmentlincentivesldowntown grant agreements1267 n. bell - restaurantlordinance and agreement orlglnal.doc VII. SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the term of the Reimbursement with re- spect to any property is longer than allowed by law, or (ii) the Reimbursement applies to a broader classification of property than is allowed by law, then the Reimbursement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. VIII. OWNER STANDING Grantee, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying ordinances, resolutions, or City Council actions authorizing same and Grantee shall be entitled to intervene in said litigation. IX. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, X. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XI. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument. Page 4 sAeconomic developmentlincentivesldowntown grant agreements1207 n, bell - restaurantlordinance and agreement Original.doc XIII. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. XIV. NO JOINT VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. XX. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement. XXI. FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obli- gations under this Agreement, then the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. This Agreement is executed to be effective 30 days after the executed date of the day of , 2011, (the "Effective Date") by duly authorized officials of the City and Owner. PASSED AND APPROVED this the day of , 2011. CITY OF DENTON GEORGE C. CAMPBELL, CITY MANAGER Page 5 s:leconomic developmentlincentivesldowntown grant agreements1207 n. bell - restaurantlordinance and agreement orl glnal.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY SAMUEL SOLOMON, GRANTEE i ATTEST: i I BY: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared George C. Campbell, City Manager for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of , 2011. Notary Public in and for the State of Texas My Commission Expires: Page 6 s:leconomic developmentlincentivesldowntown grant agreements1207 n. bell - restaurantlordinance and agreement Orig>nal.doc STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Samuel Solomon, Grantee, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was ex- ecuted for the purposes and consideration therein expressed. Given under my hand and seal of office this the& day of 60 , 2011. CHRISTINA 17AYI5 Notary Public, state or Texas Notary Public in and for the u, r'y My Commission Expires ~~~i~~E RF SE}.+~~ October 21, 2013 State of My Commission Expires: 2► Zo(3 Page 7 Exhibit A LEGAL DESCRIPTION 207 N. Bell The Arts Council Blk 1 Lot 1 I Exhibit B J3l0 i of DOWNTOWN INCENTIVE REIMBURSEMENT GRANT PROGRAM APPLICATION Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney no later than 5 p.m. on the Monday prior to the 1't Wednesday of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permitthistoric preservation questions, please contact the Historic Preservation Officer at 940-349-7732.1 ~~G~ Date ♦ Applicant Name ♦ Business Name I&SIA 1< ' ♦ Mailing Address > > ' ~f 0 a Contact Phone Email Address . ' ♦ Building Owner (if different fi,oni applicant)~ a ~ ♦ Historical/Current BuildingNami7e (f-fV--t7/7Z- ~ ♦ Physical Building Address ♦ TyMe of Work: (check all that apply) gAwnings arcade Rehabilitation -Fayade - Paint-only Impact Fee _ Utility Signage - Upgrade ♦ Details of Planned Improvements for Downtown Incentive Reimbursement Giant: S~' -1 IJ /pig ja~, h additional paper jf n cessary)? -i J L G List Contractor/Project architect Proposals and Total Amounts (please attach original proposals): 1. 0, 00 2. ♦ TOTAL COST OF PROPOSED PROJECT: ~1~' ✓1 l ~l ♦ AMOUNT OF GRANT REQUESTED (50% OF TOTAL COST ABOVE): ♦ Complete budget detail form attached on page 13 Attach with all required color samples of paint, awning/canopy, sign design, etc., as well as photogra s o uilrling' ex-le for facade, roof and foundation. i Date ~i Applicant' gnatu e 10 of 12 591ncentive ProganADowntorm Incentive Grant Program Applicalion,doc i of DOWNTOWN INCENTIVE REIMBURSEMENT GRANT AGREEMENT FORM 215 E. Please return completed with necessary attachments and signature to Downtown Development office, McKinney no latter than 5 p.m. on the Monday prior to the I't Wednesday of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at 940-349-7732. I have met with the Downtown Project Coordinator, and 1 fully understand the Downtown Incentive Reimbursement Grant Procedures and Details established by the Denton City Council. I intend to use this grant program for the aforementioned renovation projects to forward the efforts of revitalization and historic preservation of Denton's lvstoric downtown. I have not received, nor will I receive insurance monies for this revitalization project. I have read the Downtown Incentive Reimbursement Grant Application Procedures including the Downtown Incentive Reimbursement Grant Details. I understand that if I am awarded a Downtown Incentive Reimbursement Grant by the Denton City Council, any deviation from the approved project may result in the partial or total withdrawal of the Downtown Incentive Reimbursement Grant. If I am awarded a reimbursement grant for fagade, awning or sign work and the fagade, sign or awning is altered for any reason within one (l) year from construction, I may be required to reimburse the City of Denton immediately for the full amount of the Downtown Incentive Reimbursement Grant. Busin /O anizat ry Name UAL `JaL~rnvn~ ~ eant' Signature Printed Name Date e- Me 4L L -e ,,,x- Bu ig Owner's Sig latu e (f df ffer°ent fr-onz applicant) Printed Name Date DTTF Signature (obtain signature of DTTF ineeting) Recommendation Date EDPB Signature (obtain signature at EDPB meeting) Recommendation Date 12 of 12 S:Vomnlive PmgumWotmtown Incentive Omni Pmgrun Applirntion.doc Exhibit C Jim Robertson Construction 214 707 0684 Bid on building located at 207 N. Bell Avenge Denton Tx. 02/07/2011 Awning Bid: All materials and labor cost will be included for the awning: $5000 Page 1 of 1 Sign & oiOph'ic Sol'7tions I,;,Ide Simi IC" Estimate 480- 3717 FASTSIGNS Denton # 13901 Estimate Date: 2/25/2011 1:40:OQPM 2104 Sadau Ct. Ste. 130 Denton, TX 76210 ph: 940-383-1785 Printed: 2/25/2011 1:40:14PM fax: 940-566-1869 Email '480@fastsigns.com Customer': John Blackwood ph: (808} 349-6177 Contact: John Blackwood Customer: 2246 Description: Alum Sign Project Sales Person: Kyle Van Deusen Clerk: Kyle Van Deusen email: johnwblackwood@gmailcom Dear John: Thank you for considering FASTSIGNS of Denton for your sign needs. The quotation we discussed is attached below. If you have any questions, please call me at 940-383-1785 or by email at 480@fastsigns.com. Sincerely, Kyle Van Deusen Graphic D. / Sales Product Qty Sides I Size Unit Cost Totals 1 Aluminum .040 4 1 48 x 96 $299.91 $1,199.64 Description: Aluminum .040 with cut or printed vinyl applied. Color: White Text: I I i Notes: Line Item Total: $1,199.64 Subtotal: $1,199.64 Taxes: $98.97 Total: $1,298.61 Deposit Required: $649.31 Payment due upon completion of order. Bill To: John Blackwood John Blackwood Denton, TX ReceivedlAccepted By: SY STEMIFASTSIGNS_CRYSTAL_Esftrnale0l Signs & Graphic Solutions Made Simple. (D r i i ~ / ` / ~ ~ r ~ ~,d ~ ~ 1~ ~ ~ / ~ ~ / ~ , L r l ~ l _ ~ 1 ~ / i I ~,.1 ~ ~ _ ~ 1__ ~ y ~ ~ , . ~ ~ - _ ~ ~ 7 _ _ / A ~ 7~ ~ - ~ ~ ~ r ~ _J. ~ ~ ~ 1i: ; / ~ I ~ ~ flf ~ ~ ~1 ~ i ~ . ~ r j fi ~ ~ ~ 1 9l i r~ ~ a S J , t`-. ~ i % ~ rf i ~ 1 f / 1 ~ l 'r r~ - ~ ~ r'~~ _I , I~ { J S ` ~ k ~ f F. 1= a AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Vibe Investments, LLC, from the Downtown Incentive Grant Program not to exceed $6,500; and providing for an effective date. (No recommendation by the Economic Development Partnership Board). BACKGROUND City Council approved the Downtown Incentive Reimbursement Grant Program on April 3, 2007. The 2010-11 Program received $50,000 from the General Fund. To date, $10,000 has been granted by City Council for 2010-11. The EDPB has reviewed and recommended additional grants in the amount of $30,000. If all grants are approved, the 2010-11 Program balance will be $10,000. Applicant: Brandon Martino Denton, Texas Mr. Brandon Martino is the owner of the Hickory Street Lofts, located at 311 E. Hickory. This mixed use project contains 28 apartments and four retail spaces. It was partially completed when the grant request was submitted, so this grant is specifically for the Campus Barber suite and is only for impact fees. ESTIMATED SCHEUDLE FOR PROJECT The project is underway now and should be completed by May 2011. PRIOR ACTION/REVIEW On March 10, 2011, the Downtown Task Force reviewed the grant application and recommended a grant in the amount of $6,500 for impact fees. The motion was approved 10-0. On March 21, 2011, the Economic Development Partnership Board reviewed the grant application and recommended taking it to Council without a recommendation. That motion passed 4-0-1. Agenda Information Sheet May 3, 2011 Page 2 FISCAL INFORMATION The total cost of Mr. Martino's project is $2.5 million, which includes apartments, restaurant space and the barber shop. A $6,500 grant represents a return on investment of 1:384. EXHIBITS Grant Application Respectfully submitted Julie Glover Economic Development Program Administrator llcodadldepartmentsVegaMur documentslordinances1111311 e. hickory vibe investmentsord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION FROM VIBE INVESTMENTS, LLC, FROM THE DOWNTOWN INCENTIVE GRANT PROGRAM NOT TO EXCEED $6,500; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, Brandon Martino, owner of Vibe Investments, LLC applied for a $6,500 grant; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the request from Brandon Martino for $6,500 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of funds as provided in the Agreement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r BY:~~ s:leconomic developmentlincentivesldowntown grant agreements1311 e, hickorylordinance and agreement original.doc DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT This Downtown Reinvestment Grant Incentive Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and Brandon Martino, Owner of Vibe Investments, a Limited Liability Corporation (the "Owner"), duly authorized to do business and in good standing in the State of Texas, duly acting herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Denton Downtown Reinvestment Grant Incentive Program; and WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a copy of which is on file in the City of Denton Economic Development Office and which is in- corporated herein by reference; and WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti- tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the City; and WHEREAS, Owner will be the owner, as of the Effective Date (as hereinafter defined), which status is a condition precedent, of certain real property, more particularly described in Ex- hibit "A" attached hereto and incorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") as of the Effective Date; and WHEREAS, on the 21St day of February, 2011, Owner submitted an application for rein- vestment with various attachments to the City concerning the contemplated use of the Premises (the "Application"), which is attached hereto and incorporated herein by reference as Exhibit "B"• and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the purposes and are in compliance with the Ordinance and Program and similar guidelines and cri- teria adopted by the City and all applicable law; NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: 1. TERMS AND CONDITIONS OF REIMBURSEMENT Oeconomic developmentlincentivesWowntown grant agreements1311 e. hickorylordinance and agreement original.doc A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City hereby grants the following reimbursement: I. A reimbursement in an amount not to exceed $6,500 attributable to new capital investments, as hereinafter described, being constructed on the Premises. B. A condition of the Reimbursement is that, by May 3, 2012 (subject to force maje- ure delays not to exceed 180 days), a capital investment in the form of awnings and impact fees as described in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph, the term "force majeure" shall mean any circumstance or any condition beyond the control of Owner, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above-mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of awnings, utility upgrades, fagade and entryway work, as described in Exhibit "C" (the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to include costs related to the construction of the Improvements on the Premises. D. A condition of the Reimbursement is that the Contemplated Improvements be constructed and the Premises be used substantially in accordance with the description of the project set forth in Exhibit "B". E. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. II. CONDITION OF REIMBURSEMENT A. At the time of the award of the Reimbursement, all ad valorem real property taxes with respect to said property owned within the City shall be current. B. Prior to the award of the Reimbursement, Owner shall have constructed the Capi- tal Improvements as specified in Exhibit "B". III. RECORDS AND EVALUATION OF PROJECT A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information related to construction of the Improvements to insure that the Improvements are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner's business operations. Page 2 s:leconomie developmentlincentivesldowntown grant agreements1311 e. hickorylordinance and agreement original.doc IV. GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria for the Down- town Reimbursement Grant Incentive Program agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. D. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control. V. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsimile: OWNER: CITY: Brandon Martino George C_ Campbell, City Manager Vibe Investments, LLC City of Denton 101 N. Austin Street 215 East McKinney Denton, Texas 76201 Denton, Texas 76201 Fax No. 940.349.5596 VI. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the 3rd day of May, 2011, authorizing the Mayor to execute this Agreement on behalf of the City, a copy of which is attached hereto and incorporated herein by reference as Exhibit "D". Page 3 s:leconomic developmentlincentivcsldowntown grant agreements1311 e, hickorylordinance and agreement original.doc i vii. SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the term of the Reimbursement with re- spect to any property is longer than allowed by law, or (ii) the Reimbursement applies to a broader classification of property than is allowed by law, then the Reimbursement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. VIII. OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. IX. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, X. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XI. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument. Page 4 sAcconomic developmentlincentivesWowntown grant agreements1311 e. hickorylordinance and agreement original.doc XI1I. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. XIV. NO JOINT VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. XX. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement. XXI. FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obli- gations under this Agreement, then the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. This Agreement is executed to be effective 30 days after the executed date of the day of , 2011, (the "Effective Date") by duly authorized officials of the City and Owner. PASSED AND APPROVED this the day of , 2011. CITY OF DENTON GEORGE C. CAMPBELL, CITY MANAGER Page 5 sAcconomic developmeniMnoentivesldowntown grant agreements1311 e. hickorylordinance and agreement original.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: BRANDON MARTINO, OWNER, VIBE INVESTMENTS, LLC ATTEST: BY: STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared George C. Campbell, City Manager for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of , 2011. Notary Public in and for the State of Texas My Commission Expires: Page 6 s:leconomic developmentlincentivesldowntown grant agreements1311 e. hickorylordinance and agreement origM.doc STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Brandon Martino, owner of Vibe Investments, LLC, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the m t day of -,pei , 2011. ~iC/[/I~46U 1r1,J!lr/ ~ /wr /snr/ ~Rrr~ CHRISTINA DAVIS 41 Notary Public in an or the Notary Public, State of Texas my commission Expires State of -rk October 21, 2013 My Commission Expires: lD Zf X03 Page 7 Exhibit A LEGAL DESCRIPTION 311 E. Hickory Al 184a H. Cisco, Tr 114, .3213 Acres Exhibit B o DOWNTOWN INCENTIVE REIMBURSEMENT GRANT PROGRAM APPLICATION Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney no later than 5 p.m, on the Monday prior to the 1" Wednesday of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have pny building or sign permitlhistoric preservation questions, please contact the Historic Preservation Ofllcer at 940-349-7732. ,t Applicant Name 5-pulu'on Moet1no Date 2 - 7, l 4 Business Name Vibe. h'nvt*g wo t-~- C 4 Mailing Addresss of t), ! L&rtl1k 1u'L ~1G {o Z- ~ 4 Contact Phonc Qq0 F 5-Z9.? Email Address '~l✓GYl(~cy►-~ ~'f ~V\ k. rt 4 Building Owner (if dfffereniftom applicant) 4 Historical/Current Building Name 4 Physical Building Address 4 Type of Work: (checkall that apply) Fagade Rehabilitation Fapade - Paint-only ZC Awnings Signage Impact Fee Utility Upgrade 4 Details of Planned Improvements for Downtown Incentive Reimbursement Grant: tlach addltlonalpaper ljrrecesaarl) Gr ut 3/ / 11C/44, List Contractor/Project architect Proposals and Total Amounts (please attach original proposals): 1, a?- d Ay,UuM 2, a tar 1/h'04''/ ora, 36S : 4 TOTAL COST OF PROPOSED PROJECI': 4 AniOUNT OFGRANT REQUESTED (50%0 oFTOTAL COST ABOVE): :Sd/ Oo O 4 Complete budget detail form attached on gape 13 Attach with all required color samples of paint, aluriirtg/canopy, sign design, etc., as well as photographs of building's exterlor facade, roof and foundation. 9--- d011 Applicant's Signature Date 10 of 12 St.Im•nlSre Proggi~.Aonnlme n Ineenllct Gm Peoyrnn Apptlalan.doe i T . i of y. .i,•'vut a b ~I How WILL THIS PROJECT' BENEFIT DOWNTOWN DENTON? i RUDGEI' DETAIL PROJECT EXPENDITURES CITY FUNDS REQUESTED APPLICANT'S FUNDS TOTAL FA('ADL• REIIAD (.:e s sr. AWNINGS/SIGNS IM PAC T f EES UTILITY UPGRADES TOTALS Otto A'T?'ACII EXACT COLOR SAMPLES, MODEL NUMBERS (WINDOWS, DOORS, ETC.), PHOTOS AND/OR SKE'1'CNES Or WORK '10 BE COMPLETED. PLEASE. INCLUDE AS MUCH DETAIL AS POSSIBLE, 11 of 12 SrJneen{ive Progr+m'.DownloHn In,mlh• Gnnl Progmn Appllullrndor .f. a of .gyp r,.,,~, .'i• •'TJ DOWNTOWN INCENTIVE REIMBURSEMENT GRANT AGREEMENT FORM Please return completed with necessary attachments and signature to Downtown Development office, 215 E. McKinney no later than 5 p.m, on the Monday prior to the f" Wednesday'of each month. If you have any application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at 940-349-7732. 1 have met with the Downtown Project Coordinator, and I fully understand the Downtown Incentive Reimbursement Grant Procedures and Details established by the Denton City-Council, I intend to use this grant program for the aforementioned renovation projects to forward the efforts of revitalization and historic preservation of Denton's historic downtown. I have not received, nor will I receive insurance monies for this revitalization project. I have read the Downtown Incentive Reimbursement Grant Application Procedures including the Downtown Incentive Reimbursement Grant Details. I understand that if I am awarded a Downtown Incentive Reimbursement Grant by the Denton City Council, any deviation from the approved project may result in the partial or total withdrawal of the Downtown Ltcentive Reimbursement Grant. If I am awarded a reimbursement grant for facade, awning or sign work and the fagade, sign or awning is altered for any reason within one (1)- year from construction, I may be required to reimburse the City of Denton immediately for the full amount of the Downtown Incentive Reimbursement Grant. U 1 Invcs"mun-fs LL C. Business/Orgauization,Name Applicant's Signature Printed Name Date Building Owner's Signature (if d ereni ftom applicant) Printed Nance Date DTTF Signature (obtain signature ai DTTF meeting) Recommendation Date EDPB Signature (obtain signature at BDPB meeting) Recommendation Date 12 of 12 5:Jl nOre hognm bownlmen Inc Wvc one(proLmm Appllnilondoc Exhibit C M :3 =1 y w n> fl. a @ f.D~ N 3 m I~ CCD 0 m N 7 > ',,-mot 1 m pZj N 0 p (A 1 cn cn rn' n w 0 m n 3 :3 CD (TI (D O (DD CD (D N C7 O CD CD W, (D 0 C C 0 N - CD in 00 I ~ I T - K U) uo w a Q- w Q 0 O D' ; i 0 m CD o i I I - - - - - - - - - - - - W~ w CD a o a o O O 0 0 0 0 x 3 0> U 0 v cn -n -n 13 0oo°mO Fcxn 2% c0 0 > 4 O n 0 o o 00 n N U) U) a @ 0 A 0' to M w N aQa n oth n IN 0OO00 0 0 0 0 0 0 0OOO N N N N N N N N N N N( IN N N N;N W W W W W W W W W W W W W W W 11 . j . a f0 (~D ~I 7' P N I G1 Al co J~Y~~N~,a U7 W N i O "p C7 n W ~m Q h N O i QQ~~ i !n m -p O C CD O N d (D 3 O I30CD -I (D -n rt w 0 w ¢ o a 'm -I v o to co 3 cn o w o ° 3 cv o co CD O N N 7 p: D n a W I M O 0 0 D N, O O r CD p~ ID D 3 , o LO g Z ~ - CD N ; F Ilo co > _ ry G -n m ' O N C I O CD ^i N T y~»wo cn u~i~ m3 Q 7 7 COQ 6 T' G. -n i CD PC @ w m (D o cn a~ I ti a m in m D y C N p' 9 I I O CD T. @ I j N T N ~ I I - - - - - - - - - - - - N cr o ° O p O r+ CD CD h :3 w > > 0 O 4 IMo It V2D -n IL c ~i su 3 v w m CD N E I' - II tr Con can {cc{n.can 1(A 91 ~~n^ [¢0}1 (J~~ •P w W IV J i (.n W N I Y! ^ Iii s Rl I C) 0 O -n -n -n b) > CA U (D w c C, N E3 C: U) m N (D w C 6 0 C FD :3 i~ 0 CL :3 Z3 (D 2: " cr EL 2: G) 0 (1) o x o r w r f° a d to i to fn (n = 0 W rt O I c U) 0 to (D N cr -n to CL (n O [n i Cj O Q. 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C3 a: 177flH i tUR[I 11 1. a I m a W c: CP 0 a co n: it I I I m (D n r-I CD Q a) g I I N m ~o 0 rt a d co O. i I N tD CD n rr m W a I I F y ~ I C. 10 31 I~ Lr I AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the level of decibels and the hours of operation for the purpose of a fundraiser with live music on Saturday, May 21, 2011. The fundraiser will benefit the start-up of an independent publication. The exception is requested for extension of the hours of operation for amplified sound from 10:00 p.m. to midnight and for the level of decibels to be increased from 70 decibels to 80 decibels. Due to residential property located east of the event location, staff recommends allowing amplified sound until midnight with sound levels not to exceed 70 decibels. BACKGROUND This first time event will begin Saturday at noon and conclude Sunday at 2:00 a.m. at a residence located at 1000 Myrtle Street. The event location is behind a laundry mat on the corner of Fort Worth Drive and Carroll Boulevard and a convenience store on the corner of Carroll Boulevard and Eagle Drive. There are no other residents on the block or in the immediate area. The music will end by midnight. The event organizers expect approximately 100 guests. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None RECOMMENDATION Staff recommends allowing amplified sound until midnight with sound levels not to exceed 70 decibels. EXHIBITS 1. Letter of Request Respectfully submitted by: M. ' Emerson Vorel, Director Parks and Recreation Department Prepared By: Janie McLeod Community Events Coordinator April 14, 2011 Janie McLeod, Community Events Coordinator 601 E. Hickory, Suite B Denton, Texas 76205 RE: Request for Noise Exemption Dear Council Members, I would like to request a formal permit for a noise exception for a benefit show to be held at 1000 Myrtle St. in Denton on Saturday, May 21 and to extend past the hours of 10:00 p.m. that night, but not beyond midnight. We would like to hold an outside concert to benefit a new start-up publication called The Grassroots Gazette. Donations will go towards the start-up costs associated with the publication, including the purchasing of a large printer. We are extending invitations through facebook to our community for this event. We are expecting approximately 100 people, which can be accommodated by the large backyard at 1000 Myrtle St. We are asking for an exception or permit for noise in the range of 75-80 decibels, so that we can have live bands play into the night. We do not plan on having food, alcohol, or vendors at this event. Thank you for your time and consideration of this request for a noise permit. Sincerely, Candice Bernd 412%Fry St. Denton, TX 76201 (214) 789-9219 CandiceQuestions@gmail.com AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the level of decibels for the purpose of live music during an art show on Friday, May 13, 2011, from 3:00 p.m. to 10:00 p.m. at 2324 Bolivar Street. The event will provide an opportunity for local artists to show their art work and network with other artists. The exception is requested for an increase in the level of decibels from 70 decibels to 74 decibels. Staff recommends denial of the request. The applicant's location is in the middle of a residential neighborhood. Council has also consistently allowed only 70 decibels for the North Texas State Fair and Rodeo, which is located several blocks west of the applicant's location. BACKGROUND This first time event will be held at a residence located at 2324 Bolivar Street from 3:00 p.m. to 10:00 p.m. and will feature bands performing with amplified sound inside the house; while outside of the residence there will be visual art and un-amplified performance art. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None RECOMMENDATION Staff recommends denial of the request for the increase in decibels to 74 to remain consistent with other events in this area. EXHIBITS 1. Letter of Request Respectfully submitted: M. 0. Emerson Vorel, Director Parks and Recreation Department Prepared By: Janie McLeod Community Events Coordinator April 13, 2011 To Whom It May Concern: I am seeking an exception to the City of Denton's noise ordinance due the desire to have an event in a house that is invite only. Details of the event are as follows: WHEN: Friday, May 13a', 2011 from the hours of 3 PM to end promptly at 10 PM WHERE: 2324 Bolivar Street, Denton, TX 76209 WHAT: This is an opportunity for local artists of any kind (visual, musical, textile, etc.) to show their art and network accordingly in an intimate, small-scale, home-like atmosphere. SPECIFICS: Visual and un-amplified performance art will be going on outside in the backyard of the house, and amplified sound to not reach more than 74 DBA will be going on outside. The flow of mingling people from inside to outside in a social manner is expected as well. I thank you very much for your cooperation and consideration in this matter. Professionally, Bonnie LeBaron Co-founder, Art Circus 1508 Broadway Street Denton, TX 76201 (408) 202-7808 artcircusdenton@gmail.com AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the noise ordinance for amplified sound on each Sunday in the month of July for the purpose of the Apollo Nights events. The events are scheduled for the following Sundays: July 3, July 10, July 17, and July 24, 2011, from 5:00 p.m. until 10:00 p.m. On July 31, 2011, the event would be from 5:00 p.m. to 11:00 p.m. The request also includes Monday, July 4, 2011, a holiday, from 5:00 p.m. until 10:00 p.m. The events will be held in Fred Moore Park. There is no request for an increase in the level of decibels. Staff recommends approval of the request for amplified sound on each Sunday in the month of July, as well as the 4th of July holiday. BACKGROUND Mr. Harold Jackson, the event organizer for the talent shows and activities, intends to help encourage area youth to increase their performance abilities and provide a safe environment for entertainment. The Apollo Nights events have been taking place in Fred Moore Park since 2001. The Apollo Nights events would provide music for participants to listen and perform to from an amplified music system on each Sunday in July, 2011 as well as the 4th of July holiday. PRIOR ACTION/REVIEW City Council has approved the Apollo Nights and Music Time requests for an exception to the noise ordinance to have amplified sound on Sundays since 2001. EXHIBITS 1. Letter of Request Respectfully submitted: M. ' Emerson Vorel, Director Parks and Recreation Department Prepared By: Janie McLeod Community Events Coordinator April 12, 2011 Harold Jackson 601 Eagle Drive, Apartment 135 Denton, TX 76201 Dear Parks & Recreation: I am requesting these dates and times for my summer Apollo Nights. July 3`d, 2011 5 p.m. - 10 p.m. Apollo night July 4'h, 2011 5 p.m. - 10 p.m. Music night July 10", 2011 5 p.m. - 10 p.m. Music night July 17'h, 2011 5 p.m. - 10 p.m. Apollo night July 24`h, 2011 5 p.m. - 10 p.m. Music night July 315`, 2011 5 p.m. - 11 p.m. Apollo night Please confirm at your earliest convenience. Sincerely, yIV7VM~ Y714 Harold Jackson AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Transportation Operations ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the execution of a Right of Entry and Possession between the City of Denton, Texas and the Denton County Transportation Authority ("DCTA") granting DCTA access to the Downtown Denton Transit Center ("DDTC") and certain lands surrounding the DDTC located in the Hiram Sisco Survey, Abstract Number 1184, to conduct public transportation operations; and providing an effective date. BACKGROUND In May of 2007, the City of Denton completed a feasibility and environmental study which recommended that the best location of the proposed Downtown Denton Transit Center (DDTC) would be at the southeast intersection of Railroad Avenue and Hickory (604 East Hickory). This is the former location of the City of Denton Facilities Management operation and auxiliary parking for City Hall East. DCTA participated in the planning process and concurred with the site selection as the site can accommodate rail passenger transfers from the proposed DCTA A- Train Downtown Denton Station. The City of Denton and DCTA entered into an Interlocal Agreement as part of the design and constriction of the DDTC in May 6, 2008 (Exhibit 1). The Agreement states that the City of Denton will facilitate the constriction of the DDTC through the use of a Federal Transit Administration (FTA) grant and later convey the facility to DCTA. The City of Denton currently owns the property where the DDTC is being constricted and will apply the value of the real estate, appraised at $750,000, as part of the 20-percent local match to leverage $3.1M in FTA funds. At the conclusion of the project, the facility will be conveyed to DCTA for the amount not to exceed of $777,423, the local match of 20-percent. The May 6, 2008 Agreement also called for DCTA to provide $388,712 or 50-percent of the $777,423 to serve as earnest money and allow for working capital in the relocation of the Facilities Management operation. Finally, the Agreement states that DCTA will assist with grant administration and will be responsible for all grant assurances upon conveyance of the facility. To assist with conveyance of the grant funded facility, DCTA has requested that the grant be closed out with the Federal Transit Administration prior to the City's conveyance to it. The facility is substantially complete at this time and in fact, DCTA relocated bus transfer operations to the bus lane component of the Transit Center on March 10, 2011, to assist with the 35 Conferette event. Final punch list items are being facilitated through Facilities Management and the general contractor, Corbet Group. It is anticipated the final punch list items can be completed by May 15, 2011, and a certificate of occupancy can be provided shortly after. Agenda Information Sheet May 3, 2011 Page 2 As stated, DCTA has occupied the bus lane portion of the facility and will need to occupy the remainder of the Downtown Denton Transit Center in advance of revenue rail service to enhance customer service for public transit patrons. City of Denton legal counsel has worked closely with DCTA legal counsel to prepare a Right of Entry and Possession (ROE) that will allow DCTA to formally occupy the bus lane, public plaza and parking lot area upon the proposed effective date of May 3, 2011. This ROE will also allow DCTA to occupy the facility itself, including the administrative office area, public restrooms and public waiting area, upon the issuance of a certificate of occupancy by the City of Denton. DCTA will be responsible for utility costs except those costs associated with constriction activities. The ROE will allow the City of Denton and its agents to occupy the facility during the ROE to complete final constriction tasks and install desired furniture and office equipment. Once DCTA is provided the right to occupy the DDTC under the ROE, DCTA will be responsible for the maintenance of the DDTC for the term of the ROE; however, the City shall make reasonable efforts to require warranty work of the contractors and material providers, as requested by DCTA. The term of the ROE is approximately one year, terminating on May 1, 2012. This term should be sufficient to complete constriction activities on the Transit Center as well as the grant funded pedestrian enhancements along Hickory Street. Once all grant funded activities are completed, the City of Denton will initiate grant close out procedures with the FTA and move forward with the conveyance of the DDTC. PRIOR ACTION/REVIEW Mobility Committee was provided a briefing on the need for the ROE at the April 12, 2011 Meeting. FINANCIAL The proposed agreement will require DCTA to submit a sum of $10.00 to the City of Denton in consideration for the Right of Entry and Possession. EXHIBITS 1. Ordinance 2008-098 2. Ordinance Respectfully Submitted: Marl. Nelson Transportation Director EXHIBIT 1 s:\our documents\ordinance5\08\dcta interlocal agreement downtown transit center.doc ORDINANCE NO. 90,0- 6 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY TRANSPORTATION AUTHORITY (DCTA) FOR THE CONSTRUCTION AND PURCHASE OF THE DOWNTOWN DENTON TRANSIT CENTER; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Denton was apportioned federal transportation dollars in the amount of $3,109,690 pursuant to a 5309 Grant number TX-03-0293-00 in 2004 for the development of a Downtown Denton Transit Center; and WHEREAS, Denton owns the real property and improvements located at 604 E. Hickory, Denton, Texas 76205 and being further described in Exhibit "A" (the "Land") on which Denton intends to construct the Downtown Denton Transit Center (hereinafter defined); and WHEREAS, the development of the Downtown Denton Transit Center will enhance the DCTA public transit system and provide a safe and secure place to make transit connections; and WHEREAS, Denton desires to design and construct the Downtown Denton Transit Center for the benefit of the DCTA and Denton and to transfer ownership thereof upon Completion of Construction (hereinafter defined) thereof following the closing of the federal 5309 Grant; and WHEREAS, DCTA intends to assist Denton with the management of the 5309 Grant submittal including milestone updates and grant reimbursements through the TEAM and ECHO systems; and WHEREAS, DCTA desires to purchase the Downtown Denton Transit Center pursuant to the terms of this Agreement; and WHEREAS, the estimated cost of the design and construction of the Downtown Denton Transit Center is $3,887,113 with $3,109,690 of such costs expected to be paid by the federal funding 5309 Grant with Denton advancing its local share in the amount of $777,423; and WHEREAS, DCTA intends as consideration for the transfer of the Downtown Denton Transit Center to reimburse Denton up to $777,423 of its local share expenditures upon Completion of Construction and closing of the 5309 Grant as provided herein; and WHEREAS, DCTA has agreed that it shall within five (5) business days after the Effective Date deliver to Denton the sum of $388,712 (the "Earnest Money"); and WHEREAS, Denton is authorized by Section 380.001 TEX. LOC. GOVT CODE to provide economic development incentives to support the expansion of local business activity, employment, public transportation and development; and EXHIBIT 1 s:\our documents\ordinances\08\dcta interlocal agreement downtown transit center.doc WHEREAS, public transportation is essential for the attraction of new business to Denton and will promote economic development, stimulate commercial activity, generate additional sales tax and will enhance the tax base and economic vitality of Denton; and WHEREAS, Denton has adopted programs for promoting economic development and the economic development grant as set forth herein is given and provided by Denton pursuant to and in accordance with those programs; and WHEREAS, Denton is authorized by Article II, Section 52-a of the Texas Constitution and TEX. LOC. GOv'T CODE §380.001 to provide economic development grants to promote local economic development and to stimulate business and commercial activity in Denton; and WHEREAS, the Act authorizes Denton and the DCTA to enter into this Agreement for the purpose of achieving the governmental functions provided for herein by this collective, cooperative undertaking; THE COUNCIL OF THE CITY OF DENTON DEREBY ORDAINS: SECTION 1. The City Council hereby approves an Interlocal Cooperation Agreement between the City of Denton and DCTA for the construction and purchase of the Downtown Denton Transit Center, a copy of which is attached hereto and incorporated by reference herein. SECTION 2: This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 1Z day of , 2008. C 7 PERRY R. MCNEILL, MAYOR ATTEST: JENNIFER WALTER, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: EXHIBIT 1 STATE OF TEXAS § § INTERLOCAL COOPERATION AGREEMENT COUNTY OF DENTON § This Interlocal Cooperation Agreement (the "Agreement") is made and entered into by and between the City of Denton ("Denton") and the Denton County Transportation Authority, ("DCTA"), each organized and existing under the laws of the State of Texas, and acting by, through and under the DCTA and their respective governing bodies and officials in accordance with the "Interlocal Cooperation Act", Chapter 791 of the TEXAS GOVERNMENT CODE (the "Act"); and RECITALS WHEREAS, Denton was apportioned federal transportation dollars in the amount of $3,109,690 pursuant to a 5309 Grant number TX-03-0293-00 in 2004 for the development of a downtown Denton transit center; and WHEREAS, Denton owns the real property and improvements located at 604 E. Hickory, Denton, Texas 76205 and being further described in Exhibit "A" (the "Land") on which Denton intends to construct the Downtown Denton Transit Center (hereinafter defined); and WHEREAS, the development of the Downtown Denton Transit Center will enhance the DCTA public transit system and provide a safe and secure place to make transit connections; and WHEREAS, Denton desires to design and construct the Downtown Denton Transit Center for the benefit of the DCTA and Denton and to transfer ownership thereof upon Completion of Construction (hereinafter defined) thereof following the closing of the federal 5309 Grant; and WHEREAS, DCTA intends to assist Denton with the management of the 5309 Grant submittal including milestone updates and grant reimbursements through the TEAM and ECHO systems; and WHEREAS, DCTA desires to purchase the Downtown Denton Transit Center pursuant to the terms of this Agreement; and WHEREAS, the estimated cost of the design and construction of the Downtown Denton Transit Center is $3,887,113 with $3,109,690 of such costs expected to be paid by the federal funding 5309 Grant with Denton advancing its local share in the amount of $777,423; and WHEREAS, DCTA intends as consideration for the transfer of the Downtown Denton Transit Center to reimburse Denton up to $777,423 of its local share expenditures upon Completion of Construction and closing of the 5309 Grant as provided herein; and DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page I of 13 26814 EXHIBIT 1 WHEREAS, Denton is authorized by Section 380.001 TEX. Loc. Gov'T CODE to provide economic development incentives to support the expansion of local business activity, employment, public transportation and development; and WHEREAS, public transportation is essential for the attraction of new business to Denton and will promote economic development, stimulate commercial activity, generate additional sales tax and will enhance the tax base and economic vitality of Denton; and WHEREAS, Denton has adopted programs for promoting economic development and the economic development grant as set forth herein is given and provided by Denton pursuant to and in accordance with those programs; and WHEREAS, Denton is authorized by Article II, Section 52-a of the Texas Constitution and TEX. Loc. Gov'T CODE §380.001 to provide economic development grants to promote local economic development and to stimulate business and commercial activity in Denton; and WHEREAS, the Act authorizes Denton and the DCTA to enter into this Agreement for the purpose of achieving the governmental functions provided for herein by this collective, cooperative undertaking; and NOW THEREFORE, for and in consideration of the premises and the mutual covenants set forth in this Agreement, and other valuable consideration the receipt and sufficiency of which are hereby acknowledged the parties agree as follows: Article I Definitions For purposes of this Agreement, each of the following terms shall have the meaning set forth herein unless the context clearly indicates otherwise. "Approved Plans" mean the Plans as approved by the Parties. "Assets" mean collectively the Land and the Downtown Denton Transit Center improvements. "Bill of Sale" means a bill of sale in a form reasonably acceptable to the DCTA for the transfer of Downtown Denton Transit Center. "Commencement of Construction" shall mean that (i) the Plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the Downtown Denton Transit Center; (ii) all necessary permits for the construction of the Downtown Denton Transit Center pursuant to the Approved Plans therefore having been issued by all applicable governmental authorities; and (iii) demolition and grading of the land for the construction of the Downtown Denton Transit Center has commenced. DCTAIDenton Asset Transfer lnterlocal Cooperation Agreement Page 2 of 13 26814 EXHIBIT 1 "Completion of Construction" shall mean (i) the construction of the Downtown Denton Transit Center has been substantially completed; (ii) a certificate of substantial completion has been issued to the general contractor(s) and engineer(s)/architect(s) for the Downtown Denton Transit Center, and a copy of such certificate has been delivered to DCTA; (iii) Denton has issued a final inspection and certificate of occupancy for the Downtown Denton Transit Center, as the case may be; and (iv) DCTA has accepted the Downtown Denton Transit Center. "Closing Date" means the later of: (i) Completion of Construction of the Downtown Denton Transit Center; and (ii) FTA approval of the transfer of the Assets, or other date mutually agreed to by the parties. "DCTA" means the Denton County Transportation Authority acting by and through its President. "Denton" means the City of Denton, Texas acting by and through its City Manager. "Downtown Denton Transit Center" means a multi modal transit center to be constructed as further described in Exhibit "B". "Effective Date" shall mean the last date of execution hereof. "Event of Force Majeure" shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, terrorist act, riot, civil commotion, insurrection, government action or inaction (unless caused by the intentionally wrongful acts or omissions of the party), fires, earthquake, tornado, hurricane, explosions, floods, strikes, slowdowns or work stoppages. "Expiration Date" shall mean the date the parties have fully satisfied their respective obligations herein. "Final Budget" means the budget for the costs of design and construction of the Downtown Denton Transit Center approved by the parties. "FTA" means the Federal Transit Administration of the United States Department of Transportation. "Grant" means an economic development grant in an amount equal to the difference between the Appraisal and the sum of the Purchase Price and the Additional Consideration, if any. "Land" means the real property described in Exhibit "A". "Permitted Exceptions" shall mean zoning, the lien for current taxes, the environmental condition and any easements or restrictions of record. DCTAIDenton Asset Transfer Interlocal Cooperation Agreement Page 3 of 13 26914 EXHIBIT 1 "Purchase Price" means the sum of $777,423 to be paid by DCTA to Denton at Closing for the sale, transfer and conveyance of the Downtown Denton Transit Center as set forth herein. "Parties" means the DCTA and the City of Denton, Texas acting by and through their authorized representatives. "Plans" collectively mean the design and construction plans, building elevations, architectural, landscaping, exterior and interior lighting plans, and exterior construction materials for the Downtown Denton Transit Center to be approved by the parties as set forth herein. "Project" collectively means the Land, and the Downtown Denton Transit Center, following construction thereof, together with parking and landscaping all as further described in the submittals filed with Denton in order to obtain a building permit(s) from time to time. "Title Company" means a title company located within Denton County mutually selected by the parties for the Closing of the transfer of the Assets. Article 11 Term The term of this Agreement shall begin on the Effective Date and continue until the Expiration Date, unless sooner terminated as provided herein. Article III Purpose The purpose of this Agreement is to authorize Denton to design and construct the Downtown Denton Transit Center and to transfer the same to DCTA upon the later of. (1) Completion of Construction thereof; and (ii) FTA approval of the transfer of the Assets. Article IV Project Design and Construction 4.1 Plans. Denton agrees to solicit proposals for the necessary architectural and engineering services for the design and construction of the Downtown Denton Transit Center on or before April 1, 2008 and shall award contracts for such services to such firms as approved by the DCTA on or before June 17, 2008. The solicitation for proposals for the architectural and engineering services for the Downtown Denton Transit Center shall require the successful firms to complete the respective design services on or before April 30, 2009. Denton agrees to cause the necessary architectural and engineering design plans for the Downtown Denton Transit Center to be complete on or before April 30, 2009. DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page 4 of 13 26914 EXHIBIT 1 4.2 Construction. Denton shall solicit competitive bids for the construction of the Downtown Denton Transit Center on or before May 29, 2009 and award a contract(s) to the lowest responsible bidder for the construction of the Downtown Denton Transit Center on or before June 30, 2009. The solicitation for proposals for the construction of the Downtown Denton Transit Center shall require the successful firm(s) to complete construction thereof on or before May 28, 2010. Denton shall, subject to events of Force Majeure, cause Commencement of Construction of the Downtown Denton Transit Center to occur on or before July 31, 2009, and subject to events of Force Majeure, cause Completion of Construction thereof on or before May 28, 2010. Denton shall deliver the Downtown Denton Transit Center to the DCTA for operational occupancy on or before June 30, 2010. 4.3 Plan Approval. Parties shall have the right to approve the Plans prior to the award of any contracts for the design and construction of the Downtown Denton Transit Center (the "Approved Plans"). 4.4 Project Costs. Unless otherwise agreed by the parties in writing any costs for the Project in excess of $3,887,113 shall be the sole responsibility of Denton, it being the intention that the sole financial commitment and responsibility of DCTA shall be the reimbursement of the local share of Denton not to exceed $777,423 which shall be the Purchase Price for the transfer of Assets and any Additional Consideration as defined herein. 4.5 General Requirements For Design and Construction. (a) The Downtown Denton Transit center shall be constructed in accordance with the Approved Plans. (b) Denton shall comply with all federal, local and state laws and regulations regarding the design and construction of the Downtown Denton Transit Center applicable to similar facilities constructed by Denton, including but not limited to any applicable requirement relating to payment, performance and maintenance bonds. Upon Completion of Construction Denton shall provide the DCTA with a final cost summary of all costs associated with the design and construction of the Downtown Denton Transit Center, and provide proof that all amounts owing to contractors, subcontractors and suppliers have been paid in full evidenced by the customary affidavits executed by the Denton and/or its contractors. (c) Denton shall in connection with the construction of the Downtown Denton Transit Center cause its contractors to provide such performance bonds, and payment bonds in forms reasonably satisfactory to Denton for the construction of the Project to ensure Completion of Construction of the Project. (d) The design of the Downtown Denton Transit Center shall utilize the proposed rail alignment as the anchor element of the design. DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page 5 of 13 26814 EXHIBIT 1 Article V Earnest Money 5.1 Earnest Money. The DCTA shall within five (5) business days after the Effective Date deliver to Denton the sum of $388,712 (the "Earnest Money"). Article V1 Project Transfer 6.1 Sale of Assets. For the consideration and upon and subject to the terms, provisions and conditions hereinafter set forth herein, Denton agrees to sell and convey unto DCTA, and DCTA agrees to purchase from Denton the Downtown Denton Transit Center and the plans, specifications and warranties related to the Downtown Denton Transit Center. 6.2 Title Survey, and Environmental Reports. (a) Within at least forty-five (45) calendar days prior to the Closing, Denton, shall deliver to DCTA: (i) a current commitment for an Owner's Policy of Title Insurance for the Land, from the Title Company setting forth the state of title to the Land together with any easements or restrictions (existing or created pursuant hereto) benefiting the Land, together with all exceptions or conditions to such title; (ii) legible copies of all documents referenced in the Title Commitment; (iii) a current Survey certified to DCTA and Title Denton; and (iv) tax statements for current and prior years. (b) DCTA shall, within twenty (20) business days after DCTA's receipt of the last of the Survey and Title Commitment, notify Denton and Title Company of any objections to the Survey or Title Commitment. If there are objections by DCTA, Denton shall in good faith attempt to satisfy them prior to Closing, but Denton shall not be required to incur any cost to do so. If Denton delivers written notice to DCTA within ten (10) business days after Denton's receipt of DCTA's objections that Denton is unable to satisfy such objections, the DCTA may either waive such objections and accept title as Denton is able to convey or terminate this Agreement by written notice to Denton and the Title Company. If DCTA terminates this Agreement pursuant to this Section neither the DCTA nor Denton shall have any further rights or obligations hereunder. 6.3 Closing_ (a) The closing of the sale of the Assets shall occur between 9:00 a.m. and 1:00 p.m. on the Closing Date therefore at the Title Company. DCTAIDenton Asset Transfer Interlocal Cooperation Agreement Page 6 of 13 26814 EXHIBIT 1 (b) At the Closing, the Denton shall deliver to the Title Company: (i) a Special Warranty Deed, in form and substance reasonably acceptable to Denton and DCTA, conveying good and indefeasible title to the Land free and clear of any and all encumbrances, except the Permitted Exceptions; (ii) the Bill of Sale conveying title to all improvements and facilities comprising the Downtown Denton Transit Center to DCTA; (iii) a Texas owner's policy of title insurance (or equivalent) in the amount of the fair market value of the Downtown Denton Transit Center, insuring such title to the DCTA; (iv) possession of the Project, free of parties in possession, and (iv) an assignment to DCTA of all warranties from the Denton's contractors, subcontractors and suppliers providing labor and/or materials in connection with the design and construction of the Downtown Denton Transit Center; such warranties shall: (a) be at least standard industry warranties from generally recognized contractors, subcontractors and suppliers with respect to the Project; and (b) obligate the Denton's contractors, subcontractors and suppliers to repair all defects for a period of two (2) years following Completion of Construction. (c) At the Closing, the DCTA shall deliver to Denton through the Title Company: (i) the Purchase Price, less the Earnest Money and the Grant (if any), in cash or immediately available funds. 6.4 Taxes. Ad valorem taxes, assessments, and any other charges against the Project shall be prorated as of the Closing Date and become the responsibility of the DCTA as of the Closing Date. 6.5 Closing Costs. (a) Denton hereby agrees to pay and be responsible for the following closing cost: (i) the cost of all tax certificates relating to all taxes and other assessments incurred or arising in relation to the Project; (ii) one-half ('/z) of the Title Company's escrow fees; (iii) all costs and expenses incurred by or on behalf of Denton, including Denton's attorney's fees; and (iv) all fees for the Basic Owner's Title Policy; and (v) such other incidental costs and fees customarily paid by Sellers of real property in Denton County, Texas, for transactions of a similar nature to the transaction contemplated herein. (b) DCTA hereby agrees to pay and be responsible for the following closing costs: (i) all fees and premiums for any endorsements to the Basic Owner's Title Policy; (ii) all fees and premiums for the Survey; DCTAIDenton Asset Transfer lnterlocal Cooperation Agreement Page 7 of 13 26814 EXHIBIT 1 (iii) one-half (%2) of the Title Company's escrow fees; (iv) all costs and expenses incurred by or on behalf of the DCTA; including DCTA's attorneys' fees; and (v) such other incidental costs and fees customarily paid by Purchasers -of real property in Denton County, Texas, for transactions of a similar nature to the transaction contemplated herein. 6.6 Project Sold As Is. (a) DCTA represents that as of the Closing Date that it: (i) will have fully inspected the Project; and (ii) will have made all investigations as it deems necessary or appropriate and will be relying solely upon its inspection and investigation of the Project for all purposes whatsoever, including, but not limited to, the determination of the condition of the structures, improvements, soils, subsurface, drainage, surface and groundwater quality, and all other physical characteristics; availability and adequacy of utilities; compliance with governmental laws and regulations; access; encroachments; acreage and other survey matters and the character and suitability of the Project. (b) DCTA acknowledges and agrees that the Project is being purchased and will be conveyed "AS IS" with all faults and defects, whether patent or latent, as of the Closing Date. (c) There have been no representations, warranties, guarantees, statements or information, express or implied, pertaining to the Project, its condition, or any other matters whatsoever, made to or furnished to DCTA by Denton or any employee or agent of Denton, except as specifically set forth in this Agreement. 6.7 Remedies. If DCTA defaults, Denton may terminate this Agreement, in which event Denton may seek specific performance. If Denton defaults, the DCTA may terminate this Agreement, in which event Denton shall return the Earnest Money to DCTA or DCTA may seek specific performance. 6.8 Brokers. Denton and DCTA each represent and warrant that they have not worked with any broker relative to this transaction and that no brokerage commission is due and payable upon the Closing. Each party shall, to the extent allowed by law, indemnify each other from any claim for brokers' commissions relative to the sale of the Property and alleged to be due because of an agreement of such party. DCTAIDenton Asset Transfer Interlocal Cooperation Agreement Page 8 of 13 26814 EXHIBIT 1 6.9 Conditions to Closing, (a) The obligation of the parties to close the purchase of the Project shall be conditioned upon satisfaction of the following conditions: (i) FTA approval of the transfer of the Assets. (ii) Completion of Construction of the Downtown Denton Transit Center. 6.10 Casualty. Risk of loss due to casualty shall be borne by Denton until Closing at such time said risk of loss due to Casualty shall be borne by the DCTA. Denton shall carry or cause to be carried insurance in amounts sufficient to restore any of the Project damaged by Casualty to substantially the same condition they were in immediately prior to such Casualty. 6.11 Additional Consideration. Denton agrees to contract with an appraiser to determine the fair market value of the Land and improvements thereon (the "Appraisal"). Upon receipt of the Appraisal, Denton shall furnish a copy of the Appraisal and all supporting documents to the DCTA for review. In the event the fair market value of the Land and improvements thereon according to the Appraisal (the "Appraised Value") exceeds the Purchase Price, the DCTA agrees to pay to Denton a sum equal to the lesser of: (i) fifty percent (50%) of the difference between the Appraised Value and the Purchase Price; or (ii) $150,000.00, to be paid at closing. For illustration purposes only, assume the Appraisal is $900,000, the Additional Consideration would be calculated as follows: 50% of $ 122,577 ($900,000 - $777,423) not to exceed $150,000, which results in Additional Consideration of $61,288. Article VII Miscellaneous 7.1 Entire Agreement. This Agreement constitutes the sole and only agreement between the parties and supersedes any prior understandings written or oral agreements between the parties with respect to this subject matter. 7.2 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party. 7.3 Successors and Assigns. Subject to the provisions regarding assignment, this Agreement shall be binding on and inure to the benefit of the parties to it and their respective heirs, executors, administrators, legal representatives, successors and assigns. 7.4 Governing Law. The laws of the State of Texas shall govern this Agreement; and venue for any action concerning this Agreement shall exclusively be in the State District Court of Denton County, Texas. The parties agree to submit to the personal and subject matter jurisdiction of said court. 7.5 - Amendments. This Agreement may be amended by the mutual written agreement of the parties. DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page 9 of 13 26814 EXHIBIT 1 7.6 Severability. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not effect any other provisions, and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in it. 7.7 Notice. Any notice required or permitted to be delivered hereunder may be sent by first class mail, overnight courier or by confirmed telefax or facsimile to the address specified below, or to such other party or address as either party may designate in writing, and shall be deemed received three (3) days after delivery set forth herein: If intended for DCTA: With copy to: Attention: John Hedrick Peter G. Smith Denton County Transportation Authority Nichols, Jackson, Dillard, 1660 South Stemmons, Suite 250 Hager & Smith, L.L.P. Lewisville, Texas 75067 1800 Lincoln Plaza 972-221-4600 Telephone 500 North Akard 972-221-4601 Facsimile Dallas, Texas 75201 If intended for Denton: With copy to: George C. Campbell, City Manager City Attorney 215 E. McKinney City of Denton Denton, TX 76201 215 E. McKinney 940-349-8307 Telephone Denton, Texas 76201 940-349-8596 Facsimile 7.8 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all of the parties hereto. 7.9 Exhibits. The Exhibits attached hereto are incorporated herein and made a part hereof for all purposes. 7.10 Recitals. The recital to this Agreement are incorporated herein and made a part hereof for all purposes. 7.11 Authorization. Each party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. 7.12 Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the termination of this Agreement shall survive termination hereof. DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page 10 of 13 26814 EXHIBIT 1 7.13 Approval of Parties. Whenever this Agreement requires or permits the approval or consent to be given by a party, the parties agree that such approval or consent shall not be unreasonably withheld, conditioned or delayed. 7.14 Further Assurances. Each party hereby agrees that it will take all actions and execute all documents necessary to fully carry out the purposes and intent of this Agreement. 7.15 Time for Performance. Time is of the essence in the performance of each party's obligations hereunder. /G EXECUTED this day of 72008, CITY OF DENTON By: George C. Campbell, City anager ATTEST: J IFER WALTERS, ITY SECRETARY BY: Approved as to Legal Form: By: dwin M. Snydef" ity ` tto ey EXECUTED this day of , 2008. DENTON COUNTY TRANSPORTATION By- Joh ,Hedrick, President Approved as to Form: By: Pe er G. Smith, General Counsel DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page I I of 13 26814 EXHIBIT 1 "EXHIBIT A" m w ~ , 1 24W S ~Y ) k ~I t~ r e . l if . ~ 17 n _ I . TM y - t :w.aa F 3 + I ° , s 1 J > K t ~ ~ 1 li - FL. ~ t a - ~h rie . , 4 SUALE 1 100' DCTA Downtown Denton Multlmodal Site Conveyance Tracts 1 & 2 March 11, 2006 DCTAIDenton Asset Transfer Interlocal Cooperation Agreement Page 12 of 13 26814 EXHIBIT 1 Exhibit "B" Description of the Downtown Denton Transit Center Improvements Downtown Denton Transportation Facility will consist of approximately 8,880 sq. ft. facility constructed to provide DCTA "Kiss and Ride" bus services. The facility will include indoor passenger waiting area, public restrooms, bus platform, passenger shelter and windbreakers. In addition, the facility will also house the DCTA Operations offices and provide approximately 40 parking spaces. DCTA/Denton Asset Transfer Interlocal Cooperation Agreement Page 13 of 13 26914 salegahour documentslordinancesU lldcta roe ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE EXECUTION OF A RIGHT OF ENTRY AND POSSESSION BETWEEN THE CITY OF DENTON, TEXAS AND THE DENTON COUNTY TRANSPORTATION AUTHORITY ("DCTA"), GRANTING DCTA ACCESS TO THE DOWNTOWN DENTON TRANSIT CENTER ("DDTC") AND CERTAIN LANDS SURROUNDING THE DDTC LOCATED IN THE HIRAM SISCO SURVEY; ABSTRACT NUMBER 1184, TO CONDUCT PUBLIC TRANSPORTATION OPERATIONS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the provisions of that certain Interlocal Cooperation Agreement between the City and DCTA dated May 6, 2008 ("the ILA"), the City is in the process of constructing the DDTC on property owned by the City located between Hickory Street and Sycamore Street, and adjacent to Denton Rail Station Addition (the "Property"); WHEREAS, in accordance with the provisions of the ILA, the City has agreed to sell to DCTA the Property, including the DDTC, following completion of construction. of the DDTC and close out of the grant related to the DDTC; WHEREAS, DCTA needs possession of the Property to conduct its public transportation operations prior to completion of construction of the DDTC and closing on the purchase of the Property from the City; WHEREAS, the City is amenable to providing the right to DCTA to occupy the Property, upon the terms and conditions provided in that certain Right of Entry and Possession ("Right of Entry"), attached hereto as Exhibit "A"; and WHEREAS, the City Council of the City deems it to be in the best interest of the City to enter into the Right of Entry with DCTA; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute the Right of Entry, for and on behalf of the City, substantially in the form as attached hereto and made a part hereof as Exhibit "A". SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 of 2 EXHIBIT A s:\legal\our documents\contracts\11\dcta right of entry-execution original.doc RIGHT OF ENTRY AND POSSESSION STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF DENTON § THIS Right of Entry and Possession (the "Right of Entry") is entered into effective as of the Effective Date set forth below, by and between the City of Denton, a Texas home rule municipal corporation (the "City") and Denton County Transportation Authority, a coordinated county transportation authority created under Chapter 460 of the Texas Transportation Code ("DCTA"). WHEREAS, the City owns the tract of real property described on Exhibit "A", attached hereto and made a part hereof (the "Property"); WHEREAS, pursuant to the provisions of that certain Interlocal Cooperation Agreement between the City and DCTA dated May 6, 2008 ("the ILA"), the City is in the process of constructing the Downtown Denton Transit Center (the "DDTC") on the Property; WHEREAS, in accordance with the provisions of the ILA, the City has agreed to sell to DCTA the Property, including the DDTC, following completion of construction of the DDTC; WHEREAS, DCTA needs possession of the Property to conduct its public transportation operations prior to completion of construction of the DDTC and closing on the purchase of the Property from the City; and WHEREAS, the City is amenable to allowing such entry and possession, upon the terms and conditions contained herein. NOW, THEREFORE, for and in consideration of the sum of Ten and no/100 Dollars ($10.00) and other good and valuable consideration to it in hand paid by DCTA, the receipt and 1 48831 (014/14/11) s:\legal\our documents\contracts\I1\dcta right of entry-execution original.doc sufficiency of which is hereby acknowledged, City grants to DCTA the right to enter upon and possess the Property upon the following terms and conditions. 1. DCTA may occupy and possess the areas of the Property other than the area of the Property constituting the DDTC as shown on Exhibit "A", for uses related to public transportation activities and operations in connection therewith (the "DCTA Activities") from the Effective Date hereof through and including May 1, 2012. DCTA may occupy and use the DDTC, or applicable portion thereof, for uses related to the DCTA Activities, from the earlier of (i) the date of the City issued certificate of occupancy, including temporary certificates of occupancy; or (ii) the date directed by the City Manager of the City, or his designee. Any other use of the Property by DCTA is expressly prohibited. 2. The City may occupy and utilize the Property during all times (i) to conduct construction activities related to the DDTC; and (ii) for any other purpose or use deemed necessary or advisable by the City. The City agrees to take reasonable measures to not unreasonably interfere with the DCTA Activities during the conduct of the City's use of the Property during the term of this Agreement. 3. DCTA shall obtain in its name and pay all costs of any nature related to all utility services used by DCTA in its occupation of the Property during the term of this Right of Entry. Notwithstanding the prior sentence, the City shall pay all costs of any nature related to utility services used in relation to and in support of the construction and operation of the DDTC until DCTA takes possession of the DDTC under this Right of Entry. 4. DCTA shall maintain the Property in a good state of condition, normal wear and tear excepted, and maintain all conditions required to continue all warranties related to the Property. DCTA shall maintain the landscaping installed on the Property by the City in a good condition, 2 48831(kbl 4/14/11) s:\1ega1\ourdocuments\contracts\11\dcta right of entry-execution originaLdoc including without limitation, the provision of adequate water and weed control maintenance, and shall keep and maintain the Property clear and free of all debris, trash, litter and other waste. DCTA hereby expressly stipulates that except as otherwise provided herein the City is not obligated to repair, replace or maintain any part of the Property during the term of this Right of Entry. Notwithstanding the lack of obligation related to repairs, replacement and maintenance, the City shall use reasonable efforts to require from its contractors and materials providers, as applicable, any repairs or other work covered by warranties in favor of the City, as requested by DCTA. Furthermore, notwithstanding anything to the contrary herein, the City shall retain all maintenance, repair, and replacement obligations, including landscaping maintenance, of the DDTC until DCTA takes possession of the DDTC under this Right of Entry. 5. In the event DCTA does not purchase the Property from the City on or before May 1, 2012, the rights granted herein shall terminate and DCTA shall immediately cease conducting the DCTA Activities. shall vacate, in its entirety, the Property and remove all personal property, rolling stock, trade fixtures and any other property owned by DCTA from the Property not later than May 15, 2012. Further, DCTA shall execute and deliver to the City a written stipulation and acknowledgement on such date expressly (i) stipulating that all such property of DCTA has been removed from the Property; and (ii) waiving any and all rights DCTA may have to the Property and the property of DCTA that may be located thereon. 6. DCTA ACCEPTS THE PROPERTY IN ITS PRESENT CONDITION, "AS IS", "WHERE IS" AND "WITH ALL FAULTS". DCTA STIPULATES THAT IT HAS THOROUGHLY INSPECTED THE PROPERTY AND FINDS THAT THE PROPERTY IS SUITABLE FOR THE USES PERMITTED UNDER THIS RIGHT OF ENTRY. CITY MAKES NO REPRESENTATIONS, COVENANTS OR WARRANTIES, EXPRESSED, 3 48831 (kbl 4/14/11) s:\leganour documents\contracts\11\dcta right of entry-execution original.doc STATUTORY OR IMPLIED, OR OF ANY OTHER KIND OR NATURE, CONCERNING OR WITH RESPECT TO THE PROPERTY, INCLUDING WITHOUT LIMITATION, AS TO THE TITLE, THE DESCRIPTION, PHYSICAL AND ENVIRONMENTAL CONDITION OF THE PROPERTY AND/OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE PROPERTY, THE NATURE OF THE PAST OR HISTORIC USE OF THE PROPERTY, THE QUALITY, QUANTITY AND VALUE OF THE PROPERTY, FITNESS FOR PURPOSE, MERCHANTABILITY, ABSENCE OF LATENT DEFECTS AND COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO THE PROPERTY. 7. DCTA shall comply with (i) all applicable federal, state and local laws, statutes, runes, ordinances and regulations relating to the DCTA Activities and the use, condition and occupancy of the Property; and (ii) any requirements imposed by utility companies serving, or insurance companies covering, the Property. 8. TO THE EXTENT PERMITTED BY LAW, DCTA SHALL AND DOES INDEMNIFY AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS, ELECTED OFFICIALS AND EMPLOYEES FROM AND AGAINST ALL SUITS, DAMAGES, ACTIONS, LOSSES OR CLAIMS OF ANY CHARACTER, NAME AND DESCRIPTION BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON, PERSONS OR PROPERTY ON ACCOUNT OF OR RELATED TO (I) THE OPERATIONS OF THE DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS RELATED TO THE RIGHTS GRANTED HEREIN; (II) ANY ACTION OR OMISSION OF DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS RELATED TO THE RIGHTS GRANTED HEREIN; (III) BREACH OF ANY TERM HEREOF; AND/OR (IV) THE 4 48831 (kbi 4/14/11) s:\legal\our docurnents\contractAlAdcta right of entry-execution original.doc OCCUPATION OF THE PROPERTY BY DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS; AND SHALL PAY ANY LOSS, DAMAGE, CLAIM, INCLUDING WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES, AND ANY JUDGMENT, WITH COSTS, WHICH MAY BE INCURRED BY, OCCASIONED UPON OR BE OBTAINED AGAINST THE CITY, ITS OFFICERS, AGENTS, ELECTED OFFICIALS AND EMPLOYEES GROWING OUT OF OR RELATED TO SUCH INJURY OR DAMAGE. 9. DCTA shall not locate, store or dispose any Hazardous Substances in or on, or release or discharge any Hazardous Substance on or from, the Property. As used herein "Hazardous Substance" means and includes all hazardous and toxic substances, waste or materials, and any pollutant or contaminant, including without limitation, polychlorinated biphenyls, asbestos, asbestos containing materials, petroleum products and raw materials that are included under or regulated by any Environmental Law or that would or may pose a health, safety or environmental hazard. As used herein, "Environmental Law" means and includes all federal, state and local statutes, ordinances, regulations and rules presently in force or hereafter enacted or amended related to environmental quality, contamination and cleanup of Hazardous Substances, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601, et sec), as amended by the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901, et sec), as amended by the Hazardous and Solid Waste Amendments of 1985, and state super lien and environmental cleanup statutes and all rules and regulations presently or hereafter promulgated under such statutes as amended. 10. DCTA shall not: 5 48831 (kbl 4/14/11) s:\IegaAour documents~contracts\ii\dcta right of entry-execution original.doc (a) Use the Property for any purpose other than that permitted herein. (b) Create a nuisance. (c) Utilize the Property in any way that would increase insurance premiums or void insurance on the Property. (d) Alter the Property without written approval by City Manager's Designee. (e) Allow a lien to be placed on the Property. (f) Assign the rights set forth herein or any right to occupy the Property. 11. DCTA shall maintain, the insurance coverage described in the attached Insurance Addendum. 12. DCTA HEREBY RELEASES THE CITY FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES AND/OR LIABILITIES FOR DAMAGE TO PROPERTY; DAMAGE OR INJURY RECEIVED OR SUSTAINED BY ANY PERSON OR PERSONS, DAMAGE TO OR LOSS OF PERSONAL PROPERTY WITHIN OR ON THE PROPERTY, AND LOSS OF BUSINESS REVENUES, ARISING FROM OR RELATED TO (I) THE OPERATIONS OF DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS RELATED TO THE RIGHTS GRANTED HEREIN; (II) ANY ACTION OR OMISSION OF DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS RELATED TO THE RIGHTS GRANTED HEREIN; AND/OR (III) THE OCCUPATION OF THE PROPERTY BY DCTA, ITS AGENTS, EMPLOYEES, CONTRACTORS, VOLUNTEERS OR SUBCONTRACTORS. 13. In the event DCTA shall fail to comply, within twenty (20) calendar days after written notice, with any provision of this Right of Entry, DCTA shall be in default hereunder. Upon such default, City shall be entitled to (a) enter and take possession of the Property; (b) terminate 6 48831 (kbi 4/14/11) s:\legal\our documents\contracts\11\dcta right of entry-execution original.doc this Right of Entry by written notice; and (c) exercise any right or remedy available to it by contract, law, equity or otherwise. The exercise of any remedy hereunder by City shall not constitute an election of remedies, and City shall be entitled to exercise any and all of the remedies provided for herein concurrently and cumulatively. 14. THIS RIGHT OF ENTRY IS PERFORMABLE IN DENTON COUNTY, TEXAS. SOLE AND EXCLUSIVE VENUE FOR ANY ACTION ARISING HEREUNDER SHALL LIE IN COURTS OF COMPETENT JURISDICTION LOCATED IN DENTON COUNTY, TEXAS. 15. Any notice given by one parry to the other in connection with this Right of Entry shall be in writing and shall be hand delivered, sent by certified mail, return receipt requested, with postage fees prepaid or via facsimile as follows: City of Denton Attn: City Manager of the City of Denton 215 E. McKinney Denton, Texas 76201 Tel. Facsimile No.940/349-8596 With copy to: Mark Nelson, Director of Transportation 215 E. McKinney Denton, Texas 76201 Tel. Facsimile No.940/349-7206 Denton County Transportation Authority Attn: President/CEO 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 Tel. Facsimile No.(972) 221-4601 With copy to: Nichols, Jackson, Dillard, Hager & Smith, LLP 7 48831 (kbl 4/14/11) s:\legal\our documents\contracts\11\dcta right of entry-execution original.doc Attn: Peter G. Smith 500 N. Akard, Suite 1800 Dallas, Texas 75201 Tel. Facsimile No.(214) 965-0010 Notice shall be deemed to be provided and received when delivered by hand delivery or telephone facsimile or the third day after being placed in the United States Mail, in the manner and addressed as set forth herein. The addresses for either parry hereto may be changed by notice to the other party, provided as set forth herein, of such address change. 16. Each Party represents and warrants that it has taken all actions necessary to authorize the person executing this Right of Entry on the Party's behalf to bind, in all respects, the Party the person represents to all terms and provisions of this Right of Entry, and that such person possesses the authority to execute this Right of Entry and bind the Party represented. 17. This Right of Entry does not convey any interest of any kind in the Property and shall be at all times construed as a mere license to DCTA to occupy the Property pursuant to the terms hereof. 18. No waiver or modification of this Right of Entry or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly authorized and executed by the party to be charged therewith. 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 Right of Entry, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, and duly authorized and executed by the party to be charged therewith. 19. In the event that any one or more of the provisions contained in this Right of Entry shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect the other provisions of this Right of Entry, and the 8 48831(kbl 4/14/11) s:\legal\our documents\contracts\11\dcta right of entry-execution original.doc Right of Entry shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this Right of Entry. 20. This License and the exhibits attached hereto, constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any prior understandings or written or oral agreements between the parties with respect to the subject matter of this License. 21. This Right of Entry may be executed in multiple original counterparts, in which case all counterparts taken together will constitute this Right of Entry. IN WITNESS WHEREOF, the parties hereto have executed this Right of Entry effective the 3rd day of May, 2011 (the "Effective Date"). THE CITY OF DENTON, TEXAS, a Texas home rule municipal corporation By George C. Campbell City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 9 48831 (kb 14/14/11) s:llegal\our docurnents\contracts111\dcta right of entry-execution original.doc DENTON COUNTY TRANSPORTATION AUTHORITY, a coordinated county transportation authority By Jftn Witt, Chief Executive Officer 10 48831 (kbl 4/14/11) s:\legal\our documentslcontracts\11\dcta right of entry-execution original.doc INSURANCE ADDENDUM Prior to May 3, 2011, DCTA shall be required to provide written proof of the following insurance coverages to the City and shall maintain such insurance coverages throughout the term of this Right of Entry: 1. All Risk Property Insurance covering the full Replacement Cost of all facilities (including all furnishings and equipment) and improvements on the Property, including the DDTC. 2. Commercial General Liability Insurance to include premises/operations, products/completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors and personal injury. This coverage should be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. 3. Automobile Liability. Insurance: (a) Minimum Combined Single Limit of $500,000 per occurrence for Bodily Injury and Property Damage; and (b) The Business Auto Policy must include coverage for hired, leased and non-owned vehicles. 4. General provisions (a) All policies shall be endorsed to read "THIS POLICY WILL NOT BE CANCELLED OR NON-RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE TO THE OWNER AND THE CITY EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED". (b) Commercial General Liability and Automobile Liability insurance shall be written by companies with A: VIII or better rating in accordance with the current AM Best Key Rating Guide. 11 48831 (W 4/14/11) s:\legal\our documents\contracts\11kdcta right of entry-execution original.doc (c) Commercial General Liability and Automobile Liability insurance policies shall name the City, and its officials, agents, employees, and volunteers, as an Additional Insured. (d) Certificates of Insurance must reflect all coverages and endorsements required by this section. (e) Coverage shall be placed with insurance carriers licensed to do business in the State of Texas or with nonadmitted carriers that have a financial rating comparable to carriers licensed to do business in Texas approved by the City. I 12 48831 (kbl 4/14/11) Exhibit A NOT IN SCcY{ N - - - - s... ----rwr--------rJ NOT IN SCOPE Cf WDA%\ scoPEarY+o.8 ; HKxoervsr._ HICKORYSr. 1 1 I 1 o - 1A00 fn q 4 1'- I s - v, I 1s I L 1 13 II~i ii,, 1 p i t? 1 ' 1 it 1 X/' i ~ n°~ • - 9-OFWCfO(.. \ t Nr!15COP or voRlc i al r i I ~I ~ 1 ° ~ 11 o it 'j {I p i 1 a: E TW S4CO x xi ~v~«~ 5wds~ ::3y 9 m T -1 I m I I,y y b os$`_ DENTON TRANSIT CENTER {r l g w L $ 604 KART IMMORY STHM 00p ~$Tt 4 $ ~OQO r f~ ~ arm ~¢-~vS i I `i` AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Finance A~T ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a first one-year extension to the Professional Services Agreement with Sawko & Burroughs, LLP, for Professional Services related to collection of Delinquent Taxes on behalf of the City of Denton; and establishing an effective date. BACKGROUND The City of Denton entered into a contract for delinquent tax collection services with the law firm of Sawko & Burroughs, L.L.P, on November 4, 2008. The original contract stipulated an initial term beginning December 1, 2008, and ending June 30, 2011. The contract also allowed for two additional one-year extensions to June 2013. During a Work Session on April 19, the City Council reviewed a variety of options concerning this contract. The April 19 Work Session item is provided as Exhibit 1 for your review. At the conclusion of this discussion, the City Council informally agreed to extend the term of the agreement by one year. As such, the ordinance for your consideration extends the Sawko & Burroughs Delinquent Tax Collection contract through June 30, 2012. PRIOR ACTION/REVIEW (Council, Boards, Commission) The City Council discussed renewing the Delinquent Tax Services contract in a Work Session on April 19, 2011. EXHIBITS 1. April 19, 2011 Work Session Item 2. Ordinance Respectfully Submitted By: Bryan Langley Chief Financial Office EXHIBIT 1 AGENDA INFORMATION SHEET AGENDA DATE: April 19, 2011 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and provide staff direction regarding delinquent tax collection services. BACKGROUND The City of Denton's contract for delinquent tax collection services was originally awarded to the law firm of Sawko & Burroughs, L.L.P., on July 1, 2005, and a new contract was awarded to the firm in November 2008 following an extensive Request for Proposal (RFP) process. The current contract expires on June 30, 2011. In the current contract, collections were required to be at least 60% of current year delinquencies, and 30% of all prior year delinquent amounts. Sawko and Burroughs, LLP has provided a summary of their performance which indicates they have complied with these requirements. In addition, the collection performance of the firm has also been verified independently by City staff. Consequently, staff is of the opinion that the firm has complied with our performance requirements. Due to the impending expiration of the contract, the following options have been developed for consideration. ➢ Option 1: Renew agreement for a period of one-year through existing renewal option in contract. In accordance with the current agreement, the contract may be extended for one-year until June 30, 2012. In addition, a second one-year renewal option could extend the contract to June 30, 2013. ➢ Option 2: Solicit new Requests for Proposal (RFP) for the tax collection contract. While this is a viable option, it should be noted that staff recently completed an extensive RFP process in 2008. As such, it is unlikely that the market for these services has changed materially since that time. EXHIBIT 1 Agenda Information Sheet April 19, 2011 Page 2 ➢ Option 3: Enter into negotiations and award a contract to another law firm. Since delinquent property tax collections are considered a professional service, state law does not require the solicitation of bids or proposals. The firm which received the second highest ranking from the panel during the last RFP process could be considered. This firm was ranked very favorably due to their prior performance and existing contract with Denton County. During the Work Session discussion, staff will present the attached PowerPoint presentation and seek City Council direction on this issue. EXHIBITS Power Point Presentation Respectfully Submitted By: Bryan Langley Chief Financial Officer I- co x W N ~ x J V J O ao V CL: O s J 0 O J O .O O O } s N O O M D V O .~44- ? O D O LL N C x O = O O O OCR 3 3 i N V i O } O 4) O 0 V V) 3 0 0 4-- = 3 c O O 0M w O X X O } M ~O V) V N CSI N N O N - 00 N O O O a O LO X O 'V N > ~N N-~ O ~ O cn~ ~ x 0 E _ N N - D N O O Q O to 0 V 0 ; O O 0 3z } o 0 N i 0 m O ~ O ~ •V s ~ ~ ~ x V i J S N i w V V p s Q~ } so ° O s 0 Lim- ~p i } 0 } O O O= O s~ s O ~ s ~ ~ ~ o V W N N r-- LL C) o a~ O O clq %4- N 0 N O +gg O E , -a o V) 1 -0 V N ° N •0 'u }s O O -0 ~ C X O ~ O o E L 0 %4- O O O o o - o } N 5 V V ° ° o -0 a~ w O ~ o~ 0 0 N N O O O •O ~ o O 41 ~ 3 v 4~ ~ ~ ~ s ~ O s o°~~~ LL~ o 0 i - O o CN 0 s 3 a- c E cl O .N o } V u 4-- i ~ Q O V -0 o 0 OR 0 L 0 L TS ~ ~ 3 0 cn N } V) O O U N 0 4) s v O O 0 N cn 0 x 3 N o 00 O N w } O } 0 o O N s O V LU - O 0 V ~ - 0 ~ 0 s } to 0- v~ H 3 O)j V L 0 44- ' V LL O V D O O ~ O 3 V -a O N o 0 0 ~ o O o E } o o c o . a~ 4-- X O a~ O O a~ a) o < s 3 57 o O O a~ V O O CF) O w O O O N V cM } ~ O s p 0 0 0 0 0 V cn 0 salegallour docwnentslordinancesll llsawko & burroughs extension ord-2.doe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST ONE-YEAR EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH SAWKO & BURROUGHS, LLP, FOR PROFESSIONAL SERVICES RELATED TO COLLECTION OF DELINQUENT TAXES ON BEHALF OF THE CITY OF DENTON; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on November 4, 2008, the City of Denton and Sawko and Burroughs, LLP entered into a Professional Services Agreement related to collection of delinquent taxes on behalf of the City of Denton beginning December 1, 2008 and ending June 30, 2011, with two possible one-year extensions of the Agreement not to extend beyond June 30, 2013; and WHEREAS, the City of Denton and Sawko and Burroughs, LLP desire to initiate the first one-year extension which will begin July 1, 2011 and ending June 30, 2012; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The City Manager is hereby authorized to execute a first one-year extension to the Professional Services Agreement with Sawko & Burroughs, LLP, extending the term of the Agreement to June 30, 2012 in substantially the form attached and incorporated herein by reference. SECTION 2: This Ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of , 2011. PETE KAMP, MAYOR PRO TEM ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: sAegallour documentAcontractsll Ilsawko & Burroughs Ist extension.doc FIRST EXTENSION TO AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § This First Extension to that Professional Services Agreement executed on November 4, 2008 between the City of Denton, Texas, a municipal corporation located in the State of Texas, hereinafter referred to as "City," and Sawko & Burroughs, LLP, a law firm located in the State of Texas, hereinafter referred to as "Firm"; and Agreement, including all agreements executed pursuant to the Agreement, are hereinafter referred to as the "Agreement"; NOW, THEREFORE, under the conditions and for the considerations hereinafter expressed, the parties hereby agree as follows: SECTION 1. In accordance with Section 12 of the Agreement, the Agreement is hereby extended for a first one-year extension which will begin July 1, 2011 and ending June 30, 2012. SECTION 2. Save and except as amended hereby, all remaining articles, terms, conditions, sections, sentences, clauses, and phrases of the Agreement shall remain in full force and effect. IN WITNESS of which this Agreement has been executed on this the of 2011 by the duly authorized officers of Firm and City. CITY OF DENTON, TEXAS BY: George C. Campbell City Manager Address: City of Denton 215 E. McKinne Denton Texas 76201 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: s:llegahour docwnentslcontracts1111sawko & burroughs 1 st extension.doe APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: SAWKO & BURROUGHS, LLP BY: Gregory Sawko Chief Executive Officer Address: 1100 Dallas Dr., No. 100 Denton, TX 76205-5121 Page 2 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development All ACM: Jon Fortune SUBJECT Consider nominations/appointments to the City's Economic Development Partnership Board. BACKGROUND The City Council appointed a nominating committee at the April 5, 2011 meeting charged with recommending nominees for Economic Development Partnership Board membership. Nominating committee members are Mayor Pro Tem Pete Kamp, Council Member James King, and Chamber of Commerce Board Chair Paul Chandler. Economic Development Partnership Board (EDPB) members serve two-year terms and may serve as many as three terms. The ordinance requires that the City Council appoint three persons to serve as a nominating committee, to include two City Council members and one person who is a member of the Chamber of Commerce. The ordinance provides that EDPB members must fall into specific categories when they are originally appointed to the Board, i.e., City Council member, Chamber of Commerce Board of Directors member, Top Twenty Taxpayer and the President of the University of North Texas, or his designee. City Council members and Chamber of Commerce Board members may be reappointed to two additional consecutive terms even if they no longer serve on the City Council or Chamber Board. These appointments were last made in July 2010. Recently, City Council expanded the scope of the EDPB's duties to include economic development marketing and recruitment activities for the Denton Municipal Airport. The EDP Board membership was increased by two members, one member to have aviation experience and one to be a Denton citizen. The nominating committee was asked to recommend individuals for these two newly created positions. The current EDP Board is comprised of the following members: EDP Board Member Category Marty Rivers, Chair Chamber of Commerce Virgil Strange, Vice-Chair Chamber of Commerce Denny Aldridge Top Twenty Taxpayer Caleb O'Rear Top Twenty Taxpayer Mark Burroughs City Council Dalton Gregory City Council Lane Rawlins University of North Texas Respectfully submitted: Linda Ratliff, Director Economic Development Department AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Jim Coulter at 349-7194. A~T ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the constriction of the Lake Lewisville Water Treatment Plant Upgrade Project; providing for the expenditure of funds therefor; and providing an effective date (Bid 4665- awarded to the lowest responsible bidder meeting specification, BAR Constrictors, Inc. in the amount of $32,142,000). (The Public Utilities Board approved this item by a vote of 6-0). BID INFORMATION This bid is for the rehabilitation of the Lake Lewisville Water Treatment Plant located 1701-B Spencer Road. The scope of work includes modifications to the existing Raw Water Pump Station, Flocculation Basins, Sedimentation Basins, Filters, and Filtered Water Piping as well as constriction of a new Settled Water Ozone Facility. A detailed description of the bids received and recommended award of items is included in the attached Public Utilities Board agenda information sheet (Exhibit 1). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) At its April 11, 2011, meeting, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award to the lowest responsible bidder meeting specification, BAR Constrictors, Inc., in the amount of $32,142,000. This amount includes the base bid amount of $29,535,000 plus the $580,000 in Constriction Contingency Allowance and $2,027,000 in Alternatives A, B, C, D, E, G, and H consistent with recommendations by staff and Malcolm Pirnie, Inc. PRINCIPAL PLACE OF BUSINESS BAR Constrictors, Inc. Lancaster, TX Agenda Information Sheet May 3, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT The Plant will be operational during the 27 month constriction schedule and should be completed by the fall of 2013. FISCAL INFORMATION This project will be funded from the following accounts: Account# Amount 63101631517. 13160.40100 $ 9,302,407.60 63101631521. 13160.40100 $ 9,824,635.63 63101631520. 13160.40100 $ 4,403,530.74 63101631519. 13160.40100 $ 7,654,117.75 63101631516. 13160.40100 $ 617,616.93 63101631515. 13160.40100 $ 233,162.53 6310 $ 36,935.46 630163513.1360.40100 $ 45,886.80 630163518.1360.40100 $ 19,557.44 630163511.1360.40100 $ 4,149.12 Total $32,142,000.00 Requisition 4102795 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Public Utilities Board Agenda Information Sheet Without Exhibits Exhibit 2: Bid Tabulation Exhibit 3: Public Utilities Board Draft Minutes Respectfully submitted: 1 Antonio Puente, Jr., 349-7283 Assistant Director of Finance I -.CIS-Bid 4665 Exhibit 1 PUBLIC UTILITIES BOARD AGENDA ITEM #8 AGENDA INFORMATION SHEET AGENDA DATE: April 11, 2011 DEPARTMENT: Utility Administration lbv-- ACM: Howard Martin, 349-8232 SUBJECT Consider Approval of the Bid Award to BAR Constrictors, Inc., for the Constriction of the Lake Lewisville Water Treatment Plant Upgrade Project for the Total Amount of $ 32,142,000. BACKGROUND The Final Design Plans and Specifications for the Lake Lewisville Water Treatment Plant (LLWTP) Upgrade Project were recently completed and the project was released for bids on February 10, 2011. Bid opening for the project was on Thursday, March 24th, 2011. There were a total of six bids received for the project, (a seventh bidder submitted his bid past the 2:00 PM deadline and was returned unopened). There was a very tight bid spread with base bids ranging from a low of $ 29,535,000 to a high of $ 31,683,000. The engineer's estimate for the base bid was $ 29,764,950. The bid spread between the low five bidders was only 1.8%, indicating that the contractors had a common understanding of the project's scope and the clarity of the engineering plans and specifications. BAR Constrictors, Inc., was the low bidder for the project. The summary of the bids received is included in Exhibit 2. BAR Constrictors, Inc., is a local contracting firm based in Lancaster, Texas with a good reputation in being able to complete projects with high quality and on schedule and budget. BAR Constrictors, Inc., has recently worked on several major projects for North Texas Municipal Water District, Dallas Water Utilities, Tarrant Regional Water District, Garland and Irving. They are currently working for the City of Dallas on a major storm water pumping station, for North Texas Municipal Water District on a high service pump station expansion, and for Somervell County Water District on the constriction of a new water treatment plant. Malcolm Pirnie, Inc., (the City's engineering consultant for the project) has evaluated the bids, verified and reviewed the experience references submitted by the two low bidders (BAR Constrictors Inc., and Eagle Contractors, L.P.) and is recommending award of the contract to BAR Constrictors, Inc., as the qualified low bidder (Exhibit 3). The project bid form included a base bid amount for items one through twenty for the constriction of the LLWTP Upgrade Project along with eight additive alternates (A through H). The alternates were a part of the original project scope, but were later separated from the base bid of the project to provide an option to help keep the project within the budgeted constriction amount of $ 29.6 million. The eight additive alternatives were prioritized to allow budgetary constraints to determine the contracted scope of work and the basis for bid evaluation. AIS - PUB Agenda Item 48 April 11, 2011 Page 2 of 6 The bid also included an Owner Selected Alternative - Contingency Allowance for unanticipated work required at the owner's direction only. This alternate was established at $ 580,000 (2% of the total constriction budget) and provides a means to process changes to the constriction process in a timely manner. The use of this allowance is restricted to the owner and requires internal administrative approvals and follow up reporting to the Public Utilities Board and City Council through routine monthly project progress reports. The use of a constriction contingency allowance for this project was recommended by Malcolm Pirnie, Inc., (Exhibit 4) and reviewed and approved by the Public Utilities Board at the January 24, 2011 PUB Meeting. The low base bid for the project was $ 29,535,000. The engineer's pre bid cost estimate for the base bid was $ 29,764,950. The engineer's pre bid cost estimate for the entire project (base bid, constriction contingency allowance, and alternates A through H) was $ 33,928,750. The low bidder for the entire project (base bid, constriction contingency allowance, and alternates A through H) was $ 33,827,000. Although the low bidder was below the engineer's pre bid cost estimate, it was over the constriction budget of $ 29,600,000 by approximately 143%. As a result, the engineer and staff revaluated the relative merits of alternates A through H in relation to their individual merit and financial impact on the project. Alternate A would increase the total constriction cost by $ 510,000 (approximately 1.72% of the constriction budget). This alternate replaces the aging electrical starter equipment located at the Lake Lewisville Raw Water Pumping Station. This item replaces four motor starters that have reached the end of their service life. This pumping station does not have firm (largest pump out of service) pumping capacity and equipment reliability is critical to insure the Lake Lewisville WTP has raw water supply to support its' rated plant capacity in future years. Malcolm Pirnie, Inc., and staff are recommending Alternate A be included in the project. Alternate B would increase the total constriction cost by $ 380,000 (approximately 1.28% of the constriction budget). This alternative upgrades the filter media used to reconstruct the plant's 16 high rate dual media filters from Anthracite to Granular Activated Carbon (GAC). This upgrade improves plant performance, finished water quality, and provides a greater margin of safety in compliance with existing and future regulatory requirements. Malcolm Pirnie, Inc., and staff are recommending that Alternate B be included in the project. Alternate C would increase the total constriction cost by $ 425,000 (approximately 1.44% of the constriction budget). This alternate adds an equalization basin between the filter backwash water discharge piping and the existing 10 inch sanitary sewer line that serves the LLWTP. The filter backwash water flow rate is significantly greater than the hydraulic capacity of the existing sanitary sewer line and backups routinely occur on this system due to this constraint. The backwash water has on many occasions flooded the filter gallery floor due to this back up coming up through the floor drains. Malcolm Pirnie, Inc., and staff are recommending that Alternate C be included in the project. Alternate D would increase the total constriction cost by $ 147,000 (approximately 0.50% of the constriction budget). The base bid for the project includes replacement of a failing fiberglass AIS - PUB Agenda Item 48 April 11, 2011 Page 3 of 6 bulk storage tank for ferric sulfate. This tank is from the original 1980 installation of the liquid chemical feed system. The base bid also upgrades the bulk caustic and ferric chemical storage tank farm containment area to correct earlier safety and regulatory concerns. This alternative replaces the remaining three bulk storage tanks within the tank farm to complete the modernization of this facility. The other three bulk storage tanks are over 23 years old and the insulation and heat trace systems are near the failure point and will require major rehabilitation work if they are not replaced in the near future. Malcolm Pirnie, Inc., and staff are recommending that Alternate D be included in the project. Alternate E would increase the total constriction cost by $ 325,000 (approximately 1.10% of the constriction budget). This alternative makes various improvements to the operations building including the replacement of a HAVAC system that is over 23 years old (replacing it with a roof mounted higher efficiency unit), the addition of fire suppression sprinklers, and replacement of ceiling tiles and lighting, and replacement of widows that were a part of the original 1957 plant construction. Continued maintenance of this equipment deters existing staff s focus away from more critical plant equipment and the fire sprinkler system has been historically recommended by the annual Factory Mutual insurance inspection for many years. Malcolm Pirnie, Inc., and staff are recommending that Alternate E be included in the project. Alternate F would increase the total constriction cost by $ 1,685,000 (approximately 5.69% of the constriction budget). The base bid for the project includes the replacement of circular sludge collection mechanisms for the front half of the 8 sedimentation basins. The sludge removal systems are from 23 to 39 years old and beyond their useful life expectancy. The second half of the sedimentation basins never had sludge collection equipment in them and this has historically resulted in increase taste and odor problems in finished water as well as increased maintenance requirements for manual basin wash downs. This alternative would add an additional 8 circular sludge collectors for the second half of the sedimentation basins. Although we received favorable pricing for this alternative (the engineer's cost estimate was $ 2,081,000) this is also the most expensive alternative in the bid package. Although the alternative is desirable, due to budgetary constraints, Malcolm Pirnie, Inc., and staff are not recommendink that Alternate F be included in the project. Alternate G would increase the total constriction cost by $ 100,000 (approximately 034% of the constriction budget). This alternative replaces outlet valves for three of the four plant clear wells. Recent experience by plant and distribution staff to replace a similar outlet valve has determined that this work would be more cost effective to be performed by a contractor with better equipment and experience than being done using in-house resources. Malcolm Pirnie, Inc., and staff are recommending that Alternate G be included in the project. Alternate H would increase the total constriction cost by $ 130,000 (approximately 0.44% of the constriction budget). This alternate replaces the aging doors and windows located within the filter building complex. These doors and windows were installed as a part of the original equipment (1957, 1965 & 1972) and are from 39 to 54 years old. These doors and windows have been exposed to a moisture laden environment and the exposure to chlorine off gassing from the filters for the past 20 years has corroded them to a point where many of them will not open or close anymore and replacement is advisable. Replacement of these doors and windows will also AIS - PUB Agenda Item 48 April 11, 2011 Page 4 of 6 improve on the security of the building for night shift. Malcolm Pirnie, Inc., and staff are recommending that Alternate H be included in the project. OPTIONS 1. Approve the award of the project to BAR Constrictors, Inc., for the base bid with inclusion of the $ 580,000 Constriction Contingency Allowance plus Alternatives A,B,C,D,E,G & H consistent with recommendations by staff and Malcolm Pirnie, Inc., for the total amount of $ 32,142,000. This option does not include the award of Alternative F that would have added an additional $ 1,685,000 to the contract. 2. Approve the award of the project to BAR Constrictors, Inc., for the base bid with inclusion of the $580,000 Constriction Contingency Allowance with none of the Alternatives for the total amount of $ 30,115,000. 3. Approve the award of the project to BAR Constrictors, Inc., for the base bid only for the total amount of $ 29,535,000. 4. Approve the award of the project to BAR Constrictors, Inc., with alternatives different from the recommendations by staff and Malcolm Pirnie, Inc. 5. Reject all bids and release the project for bids again. RECOMMENDATIONS Staff recommends Option 1 - award of the constriction contract to BAR Constrictors, Inc., for the base bid with inclusion of the Constriction Contingency Allowance and the recommended bid alternates. The recommended project award is for a total amount of $ 32,142,000. Although the total cost exceeds the constriction budget of $ 29,600,000 by $ 2,542,000 (approximately 8.6%), the proposed improvements are necessary and would need funding at some point in the near future. Since these alternates are currently included in the bids, they represent the least cost option for the city to have these items constricted in the foreseeable future. The engineering design has been completed, the TCEQ has provided their regulatory review of the work, and the city will have already paid for contractor bonds and mobilization as well as for the engineering services and inspection during constriction. Omitting these alternates at this time will result in increased capital costs in future CIP budgets and/or increased O & M budgets to have these items constricted. They would also place an additional burden on staff to implement. The merits of including the 2% constriction contingency allowance were discussed previously at the January 24, 2011 PUB meeting. This particular project has new constriction components but is largely a rehabilitation project at an older facility. Managing this type of project without change orders is unlikely to occur and it is in the best interests of the owner to have timely decisions during constriction to avoid contractor delay and cost claims. The inclusion of this AIS - PUB Agenda Item 48 April 11, 2011 Page 5 of 6 item within the bid does not necessarily mean this money will be spent during the course of the project but does help staff in the administrative management of the project during constriction. The fiscal impact of the additional expense for Option 1 2,542,000) would represent a one time rate increase of approximately 1%. Due to the relatively large number of bidders, the tight bid spread, and the engineer's pre bid cost estimates, rebidding the project would not reasonably be expected to result in lower pricing and Option 5 is not recommended. PRIOR ACTION REVIEW (COUNCIL, BOARDS, COMMISSION) February 27, 2006 PUB Approval of PSA with Malcolm Pirnie for the Preliminary Design of the LLWTP Upgrade Project in the Amount of $ 200,000. March 7, 2006 City Council Approval of PSA with Malcolm Pirnie for the Preliminary Design of the LLWTP Upgrade Project in the Amount of $ 200,000. February 26, 2007 PUB Approval of the Preliminary Design Report for the LLWTP Upgrade Proj ect. August 10, 2009 PUB Approval of PSA with Malcolm Pirnie for the Final Design of the LLWTP Upgrade Project in the Amount of $ 2,600,000. August 18, 2009 City Council Approval of PSA with Malcolm Pirnie for the Final Design of the LLWTP Upgrade Project in the Amount of $ 2,600,000. August 23, 2010 PUB Approval of Amendment 41 to the PSA with Malcolm Pirnie for the Final Design of the LLWTP Upgrade Project in the Amount of $ 139,100. September 7, 2010 City Council Approval of Amendment 4 1 to the PSA with Malcolm Pirnie for the Final Design of the LLWTP Upgrade Project in the Amount of $ 139,100. December 13, 2010 Staff briefing to PUB on LLWTP Upgrade Project scope and schedule. January 24, 2010 Staff briefing to PUB on the merits of including a contingency allowance on the LLWTP Upgrade Project bid process. DATE SCHEDULED FOR COUNCIL APPROVAL May 3, 2011 ESTIMATED SCHEDULE OF PROJECT The plant will be operational during the 27 month constriction schedule and should be completed by the fall of 2013. The current schedule for the project is detailed in Exhibit 5. FISCAL INFORMATION A total of $29,600,000 was included in the CIP (Exhibit 6) for constriction of the Lake Lewisville Water Treatment Plant upgrade project. The total budget for the project is $33,610,000 and includes $200,000 for preliminary design, $2,600,000 for final design, AIS - PUB Agenda Item 48 April 11, 2011 Page 6 of 6 $29,600,000 for constriction, $450,000 for full time resident constriction manager, $530,000 for inspection, $200,000 for start-up services and $30,000 for in-house engineering labor. A cost summary for the project is detailed below: Preliminary Design Phase PSA with Malcolm Pirnie, Inc.: $ 200,000 Final Design Phase PSA with Malcolm Pirnie, Inc.: $ 2,600,000 Amendment 41 to the Final Design Phase PSA with Malcolm Pirnie, Inc.: $ 139,100 Constriction and Post Constriction Phase PSA with Malcolm Pirnie, Inc. (Estimate Only): $ 1,040,900 Constriction Cost for LLWTP Upgrade Project (Recommended Option 1): $ 32,142,000 Project Total (not including in-house services) $ 36,122,000 A combination of existing bonds and current revenue reserves will be used to fund the project. EXHIBITS 1. Location Map 2. Bid Results 3. April 1, 2011 Letter of recommendation of bid award to BAR Constrictors, Inc., from Malcolm Pirnie, Inc. 4. January 19, 2011 Letter recommending use of a constriction contingency allowance for the LLWTP Upgrade Project. 5. Constriction Schedule 6. Capital Improvements Program budget for the LLWTP Upgrade Project. Respectfully submitted: Howard Martin Assistant City Manager, Utilities Prepared by: Timothy S. Fisher, P.E. Assistant Director of Water Utilities POP I at 5 in! M! ME 1 0000000000000 000000000 000. 0 00000000 0000000000000 000000000 000 0 00000000 WIT 11111"ll 1119111 a ZO LL - _ - - a z W w o =off ~ - W O F U (6 F F md 2 U ~ o J ~ J d ~ m ~ a w a w m m - - - - - - - - - - - - - - - - - - - - - - Exhibit 3 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 11, 2011 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, April 11, 2011 at 9:02 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chair Dick Smith, Vice Chair Bill Cheek, Phil Gallivan, Barbara Russell, Bill 11 Grubbs and Randy Robinson (Arrived at 9:11) 12 13 Ex Officio Member: 14 George Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 Absent: John Baines (excused) 18 19 OPEN MEETING: 20 21 ITEMS FOR INDIVIDUAL CONSIDERATION: 22 23 8) Consider a recommendation for an approval of the Bid Award to BAR Constrictors, Inc., for 24 the Constriction of the Lake Lewisville Water Treatment Plant Upgrade Project for the Total 25 Amount of $ 32,142,000. 26 27 Tim Fisher, Assistant Director Water Utilities, presented this item. There were six bidders with 28 the seventh missing the submittal deadline by five minutes. The bid spread was very tight, 29 $29.535 to $31.683. The five low bidders only had a 1.8% bid spread which is pretty amazing. 30 Archer Western which was the low bidder on both of the Water Plants and the Water 31 Reclamation Plant was fifth in this bid. Engineer's pre-bid estimate was $29.764 that would 32 place them third. The issue that Fisher was dealing with is the total project. If staff was to base 33 bid the constriction contingency allowance and all of the alternates we would exceed budget by 34 14.3%. 35 36 Award bid to BAR Constrictors, Inc., Lancaster Texas as the Qualified Low Bidder. Fisher 37 stated that BAR is a good contractor. They have worked with North Texas Municipal Water 38 District on a lot of projects and a lot of projects for Dallas Water Utilities. 39 40 Option 1 - Recommendation by Staff and Malcolm Pirnie - Base Bid plus $580,000 Contingency 41 Allowance plus Alternates A, B, C, D, E, G & H ($32,142,000). Option 2 - Base Bid plus 42 $580,000 Contingency Allowance with no Alternates ($30,115,000). Option 3 -Base Bid Only 43 ($29,535,000). Option 4 - Base Bid with alternatives different from the recommendations by 44 staff and Malcolm Pirnie. Option 5 - would be to reject all bids and release the project for bids 45 again. Fisher didn't feel staff would get any better pricing; believe this is a very competitive bid. 46 47 Fisher went over the alternates for this project. Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 2 of 3 1 A - Raw Water Pump Station Electrical ($510,000). 2 B - Granular Activated Carbon Filter Media ($380,000). 3 C - Filter Backwash Water Equalization Basin ($425,000) 4 D - Replacement of three Bulk Chemical Storage Tanks in Rehabilitated Tank Farm 5 ($147,000) 6 E - Operations Building Improvements - New High Efficiency HVAC System, Fire 7 Sprinklers, Replace Doors and Windows, Replace Lighting and Ceiling Tiles. ($335,000) 8 F - Install Circular Sludge Removal Rakes for Last Half of the Sedimentation Basins 9 ($1,685,000), this item is not recommended. There is a first half cell rake, there is not a last 10 half and never has been, we do not need this item. The replacement of the first half rake is in 11 the base bid. 12 G - Replace Outlet Butterfly Valves for Clear Wells 1, 2 & 3 ($100,000) 13 H - Replacement of Windows and Doors in Filter Complex Building ($130,000) 14 15 Bid Ranking of Alternates (B, A, C, E, D, G, H & F) 16 17 Staff is recommending award of the alternates listed excluding F, including the contingency 18 allowance. The fiscal impact is about $2.5 over budget. Including these alternates plus the 19 $580,000 contingency allowance exceeds the budgeted constriction amount by $2,542,000 20 (8.6%). This will impact water rates by approximately 1%. 21 22 Russell asked if the $580,000 is for cost over runs. Fisher stated he wouldn't use the term over 23 runs but the money is for change orders. Change orders would require us through our 24 combination of State Law and our own procedures to go through the Board and Council. The 25 processing time limit on that is from five to nine weeks depending on being able to get them 26 ready for the meetings in a timely manner. The threshold by State Law is pretty low it is 27 $25,000. Cheek stated that with this contingency Council would authorize staff to spend up 28 to $580,000 without their approval. Gallivan stated with City Manager but without 29 Council. Martin stated that was delegated to him for that approval. Fisher stated that staff will 30 have monthly reports to the Board and Council regarding this project. If that amount is 31 exceeded, staff would come back to the Board to replenish that amount. The only worry really 32 with a rehab like this is things that might happen that were not planned for. 33 34 Grubbs asked about the statement about the impact on water rates by approximately 1%. 35 We are not saying that we are going to increase rate rates by 1%. Fisher stated that would 36 be the stand alone financial impact of about $2.5 Million over budget. Robinson stated that 37 $2.5 Million would be all debt, and Fisher agreed. We have the ability to do it; the worst case 38 scenario is if we have all of our projects roll out because we have taken this $2.5 Million, we 39 may have to do a reimbursement resolution to access reserves prior to the next bond sales. We 40 did not have this information when we made our decision for bond sales this year. 41 42 Russell asked how long it has been since we have done a major overhaul. Fisher stated that 43 there were two upgrades in the 1980's but aren't sure he would classify them as major. It up 44 dated the plant and replaced the filter actuators and piping. In the 1990's Fisher was at the plant 45 and had some small projects taken care of at a staff level. 46 Draft Minutes of the Public Utilities Board Meeting March 28, 2011 Page 3 of 3 1 Board Member Gallivan moved to approve item 4 with option lwith a second from Board 2 Member Cheek. The motion was approved by a 6-0 vote. 4 The meeting adjourned at 11:00am ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE LAKE LEWISVILLE WATER TREATMENT PLANT UPGRADE PROJECT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4665-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION, BAR CONSTRUCTORS, INC. IN THE AMOUNT OF $32,142,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the constriction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the constriction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the constriction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 4665 BAR Constrictors, Inc. $32,142,000 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for constriction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the constriction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: -ORD-Bid 466 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute a Tax Abatement Agreement with PMFG, Inc., a Delaware Corporation; setting forth all the required terms of the Tax Abatement Agreement in accordance with the terms of Chapter 312 of the Texas Tax Code; setting forth the various conditions precedent to PMFG, Inc. receiving the Tax Abatement; providing for a severability clause; and providing an effective date. (Economic Development Partnership Board recommends approval 6-0) BACKGROUND Economic Development staff began working with Peerless Manufacturing (PMFG, Inc.) in February 2009. Peerless will be expanding and consolidating other Texas operations. The company is considering a Denton site, east and adjacent to the new Target distribution center site. They plan to build an 80,000 square-foot manufacturing facility and will have enough land at this site to expand up to 250,000 square-feet in the future. The Denton site will require Peerless to extend Dakota Lane from the Corbin Business Park to Airport Road. The valuation of the proposed project is estimated at $16 million. PMFG, Inc. designs, engineers and manufactures highly specialized filtration and separation equipment, industrial silencers, heat exchangers, and air pollution reduction systems to energy industry customers involved in gas and oil production, petrochemical processing, and power generating. Peerless leads their market in nitrogen oxide (NOx) emission reduction capabilities and has worked on advancements in the energy industry's significant growth areas that include steam-assisted gravity drainage for oil sands recovery, radar-absorbing composite louvers for the U.S. military, and biomass renewable energy technologies. Founded in 1933, Peerless is headquartered in Dallas, Texas and has been publicly traded on NASDAQ for over 30 years. Peerless markets its systems and products globally through a subsidiary office in the U.K. and sales offices located in Alberta, Canada; Singapore; Orchard Park, New York; Houston, and Dallas. Peerless-owned manufacturing facilities include a 40,000 square-foot facility in Zhenjiang, China and the following facilities in Texas: a 119,000 square-foot facility in Wichita Falls, 78,000 square-foot facility in Abilene, 67,000 square-foot facility in Cisco, and a 22,000 square- foot facility located in Denton at 1115 Duncan. The tax abatement request before the Council represents a five-year abatement at 40% each year for a total estimated incentive of $161,000. Agenda Information Sheet May 3, 2011 Page 2 ESTIMATED SCHEDULE OF PROJECT If approved, Peerless intends to move forward to purchase the property. At this time, they indicate they plan to begin constriction in 2011 or early 2012. Constriction would be completed by 2013. PRIOR ACTION/REVIEW At their March 21, 2011 meeting, the Economic Development Partnership Board reviewed the request and recommended (6-0) a tax abatement incentive of 40% for five years. FISCAL INFORMATION Project Elements Estimated Valuation Estimated Land Valuation $1,657,000 Building and Improvements $9,900,000 Equipment 4,000,000 Inventory and Supplies 225,000 Dakota Lane Constriction 800,000 Totals $16,582,000 The tax abatement agreement provides 40% abatement for building and improvements and tangible personal property, excluding inventory and supplies, for a period of five years. Abatement will not be provided on the increased valuation of the land. If valuations result as proposed, Peerless would receive a total incentive in the amount of $161,000. During the five-year tax abatement, the City would receive 100% of property tax revenues on the land, inventory and supplies and 55% on the building/improvements and equipment, resulting in new revenues of approximately $302,000. Please note that Exhibit D, a corporate resolution identifying Mr. Burlage as the individual with authority to sign the agreement, was not available at the time of submitting this agenda backup. It will be presented to Council at the May 3 meeting. EXHIBITS Ordinance Respectfully submitted: Linda Ratliff, Director Economic Development Department IlcodadldepartmentAegaAour documentslordinances1111peerless manufacturing abatement ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH PMFG, INC.; SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDI- TIONS PRECEDENT TO PMFG, INC., A DELAWARE CORPORATION, RECEIVING THE TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 3rd day of May, 2011, after a public hearing duly held in accordance with Tex. Tax Code §312.201 (the "Act"), the City Council passed Ordinance No. 2011- (the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas as a commer- cial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap- ter 312, Subchapter B of the Act; and WHEREAS, on the 14th day of February, 2011, PMFG, Inc., submitted an application for tax abatement with various attachments to the City concerning the contemplated use of certain property located within the Zone; and WHEREAS, the City Council finds that the contemplated use of the premises and the contemplated improvements to the premises, as indicated by PMFG, Inc., are consistent with encouraging the development of the Zone in accordance with the purposes for its creation and are in compliance with the Denton Tax Abatement Policy; and WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate- ment Agreement with PMFG, Inc.; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings contained in the preamble to this Ordinance are true and cor- rect and are adopted as a part of the whole Ordinance. SECTION 2. The City Council finds and determines the following: A. The contemplated use of the premises and the contemplated improvements of the premises, as indicated by PMFG, Inc. are consistent with encouraging the develop- ment of the Zone in accordance with the purposes of its creation and are in com- pliance with the Denton Tax Abatement Policy. B. The City Council finds that the improvements sought by PMFG, Inc. within the Zone are feasible and practical and would be a benefit to the land to be included in the Zone and to the City after the expiration of the Tax Abatement Agreement to be en- tered into with PMFG, Inc. Page 1 of 3 llcodadldepartmentsllegallour documentslordinancesl1 1\peerless manufacturing abatement ord.doc C. The City Council finds that the Tax Abatement Agreement contains all the terms which are mandatorily required to be included in any tax abatement agreement under §312.205 of the Act. D. In accordance with §312.2041 of the Act, the City Council finds that not later than the date on which the City Council considered this ordinance, and not later than the se- venth day before the date the City enters into a Tax Abatement Agreement with PMFG, Inc., that the City Manager, through the Director of Economic Development, who are hereby designated and authorized by the City Council to give such notice, delivered to the presiding officer of the Denton Independent School District and Den- ton County a written notice that the City intends to enter into this Tax Abatement Agreement with PMFG, Inc., and that this notice included a copy of the proposed Tax Abatement Agreement in substantially the form of the Tax Abatement Agreement at- tached to this ordinance. E. Before the passage of this Ordinance, the City Council held a public hearing in accor- dance with §312.201 of the Act and created Reinvestment Zone No. X. F. The City Council finds that the project within Reinvestment Zone No. X is a redeve- lopment of an existing business as defined in the Tax Abatement Policy and requires additional incentives to promote economic development that generally satisfies the requirements of the policy and the City Council hereby authorizes a tax abatement of a maximum of 40% on the increased valuation of the Taxable Real Property im- provements and tangible personal property as more particularly described in the Tax Abatement Agreement attached hereto and made a part hereof by reference as Exhibit "A" (the "Tax Abatement Agreement"). SECTION 3. The Mayor, or in his absence, the Mayor Pro Tem, is hereby authorized to execute the Tax Abatement Agreement with PMFG, Inc. in substantially the sarne farm as the Tax Abatement Agreement attached as Exhibit "A". SECTION 4. The City Council hereby instructs and authorizes the City Manager to in- spect, audit, and evaluate the progress of PMFG, Inc. to determine if it has met all of the condi- tions of the attached Tax Abatement Agreement prior to the tax abatement going into effect. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or 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, the City Council of the City of Denton hereby declares that they would have enacted such remaining portions despite any such validity. SECTION 6. This Ordinance shall become effective immediately upon its passage and approval. Page 2 of 3 Ilcodadldepartmentsllegallour documentslordinancesll 1lpeerless manufacturing abatement ord.doc PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 3 of 3 EXHIBIT A TAX ABATEMENT AGREEMENT This Tax Abatement Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and PMFG, Inc., a Delaware Corporation (the "Owner"), duly authorized to do business and in good standing in the State of Texas, duly acting herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in tax abatement and has adopted guidelines and criteria governing tax abatement agreements known as the Denton Tax Abatement Policy; WHEREAS, on the 20th day of April, 2010, the City Council of Denton, Texas (the "City Council") adopted the Denton Tax Abatement Policy (the "Policy"), a copy of which is on file in the City of Denton Economic Development Office and which is incorporated herein by refer- ence; WHEREAS, the Policy constitutes appropriate "guidelines and criteria" governing tax abatement agreements to be entered into by the City as contemplated by Section 312.002 of the Texas Tax Code, as amended (the "Code"); WHEREAS, on the day of 2011, the City Council passed Ordinance No. - (the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas, as a commercial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chapter 312, Subchapter B of the Code (the "Act"); WHEREAS, Owner will be the owner, as of the Effective Date (as hereinafter defined), which ownership is a condition precedent, of certain real property, more particularly described in Exhibit "A" attached hereto and incorporated herein by reference and made a part of this Agree- ment for all purposes (the "Premises") located entirely within the Zone as of the Effective Date; WHEREAS, on the 11th day of February 2011, Owner submitted an application for tax abatement with various attachments to the City concerning the contemplated use of the Premises (the "Application for Tax Abatement"), which is attached hereto and incorporated herein by ref- erence as Exhibit "B"; WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development of the Zone in accor- dance with the purposes for its creation and are in compliance with the Ordinance and Policy and similar guidelines and criteria adopted by the City and all applicable law; and WHEREAS, notice has been published in accordance with Chapter 312 of the Tax Code and written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished by the City, in the manner and by the time prescribed by the Code, to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located; NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: 1. TERMS AND CONDITIONS OF ABATEMENT A. In consideration of and subject to the Owner meeting all the terms and conditions of abatement set forth herein, the City hereby grants the following tax abatement ("Abatement"): 1. An abatement equal to 40% of City ad valorem taxes attributable to new capital in- vestments resulting in an increase of assessed value of real property improvements to and tangible personal property (excluding inventory and supplies) located on the Page 2 Premises but only if such increase is at least $5,000,000 over the assessed value of the Premises and tangible personal property (excluding inventory and supplies) located on the Premises as of January 1, 2011, for a period of five years commencing on Jan- uary 1 of the year following the Owner's issuance of a certificate of occupancy (the "CO") for the Premises. If such increase in assessed value is less than $5,000,000 there will be no Abatement. B. A condition of the Abatement is that, by December 31, 2013 (subject to force maj eure delays not to exceed 180 days), a capital investment which results in an increase in the assessed values contemplated by Section LA.1 be made to the Premises. For the purposes of this paragraph, the term "force majeure" shall mean any circumstance or any condition beyond the control of Owner, as set forth in Section XXI "Force Maj eure" which makes it impossible to meet the above-mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of the Improvements on the Premises (the "Contemplated Improvements" or "Im- provements") to include (1) costs related to the development and improvement of the real estate, including, without limitation, constriction costs and design and engineering costs; (2) tangible personal property located on or at the Contemplated Improvements by Owner, excluding inven- tory and supplies. The kind and location of the Contemplated Improvements is more particularly described in the Application for Tax Abatement. D. A condition of the Abatement is that the Contemplated Improvements be con- stricted and the Premises be used substantially in accordance with the description of the project set forth in the Application for Tax Abatement. E. A condition of the Abatement is that throughout the Term of the Abatement, the Contemplated Improvements shall be operated and maintained for the purposes set forth herein Page 3 so that the uses of the Premises shall be consistent with the general purpose of encouraging de- velopment or redevelopment of the Zone, except as otherwise authorized or modified by this Agreement. F. A condition of the Abatement is that throughout the Term of the Abatement, the Owner shall employ a minimum of 85, with an average wage of $ $50,000.00. Should the Own- er employ less than the minimum threshold of 85 people or provide an average wage of less than $50,000.00, the grant payment will be reduced by the percent decrease the actual employment or actual wage bears to the thresholds set within this agreement. For example, if the number of jobs created equals 76, which is a 10% less than the 85 jobs threshold, the grant payment will be re- duced by 10%. Or, if the average wage equals $45,000.00, which is 10% less than the average wage threshold, the grant payment will be reduced by 10%. G. The City shall have the right to terminate the Abatement if the Owner does not occupy the Contemplated Improvements continuously for the term of the Abatement for the pur- poses set forth in the Tax Abatement Application. In the event of such termination the Owner shall refund to the City all previous tax abatements and all tax abatements for future years shall be terminated. H. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. II. FAILURE TO MEET CONDITIONS A. In the event that (i) the conditions in paragraphs I(B) through I(H) are not met; or (ii) Owner allows its ad valorem real property taxes with respect to the Premises or Improve- ments, or its ad valorem taxes with respect to any tangible personal property, if any, owned by the Owner which is located in the Improvements, owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valo- Page 4 rem real property or tangible personal property taxes; or (iii) any other conditions of this Agree- ment are not met, then a "Condition Failure" shall be deemed to have occurred (it being unders- tood that a Condition Failure relating to any condition set forth in paragraphs I(B) through I(H) shall not be deemed to occur merely because at a particular time it cannot be determined whether such condition will be met, but shall occur only if at a particular time it can be definitively de- termined that such condition will not be met). In the event that a Condition Failure occurs, the City shall give Owner written notice of such Condition Failure and if the Condition Failure has not been cured or satisfied within ninety (90) days of said written notice, the Abatement shall be terminated with respect to the year in which notice of the Condition Failure is given and all fu- ture years; provided, however, that if such Condition Failure is not reasonably susceptible of cure or satisfaction within such ninety (90) day period and Owner has commenced and is pur- suing the cure or satisfaction of same, then after first advising City Council of efforts to cure or satisfy same, Owner may utilize an additional ninety (90) days. Time in addition to the fore- going 180 days may be authorized by the City Council. It is understood that the Abatement with respect to any year prior to the year in which notice of the Condition Failure is given shall not be forfeited or recaptured except as indicated under Section ILB hereof. Notwithstanding any pro- vision in this Agreement to the contrary, Owner shall refund to the City all tax abatements pre- viously received with interest for the year in which the notice of Condition Failure is given. B. If, however, the Owner fails to constrict any strictures or other improvements, or fails to install any equipment or other tangible personal property within the Premises by Decem- ber 31, 2013 or if the assessed value of the Improvements falls below the minimum $5,000,000 threshold during the term of the Abatement, then this Agreement may be terminated by the City. In such event, Owner shall refund to the City all tax abatements previously granted and received under this Agreement with interest on the amount to be refunded at six percent (6%) per annum. Page 5 C. In the event of a Condition Failure by Owner which is not cured or satisfied as set forth herein, in addition to a partial or total recapture of the tax abatement, the City may cancel or modify this Agreement. III. RECORDS AND EVALUATION OF PROJECT A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information to insure that the Improve- ments are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner's busi- ness operations. City shall annually (or such other times deemed appropriate by the City) eva- luate the Project to ensure compliance with this Agreement. Owner shall provide information to the City on a form provided by the City for the evaluation. The information shall include inven- tory listing the kind, number, and location of and the total assessed value of all Improvements to the Premises, including, without limitation, the assessed value of all strictures and all tangible personal property installed or located in the Premises. B. The City Manager shall make a decision and rile on the eligibility of the Project for tax abatement based on the information furnished each year by the Owner on or before Au- gust 1 of the taxable year and shall so notify Owner and the City Council. C. During normal office hours throughout the Term of this Agreement, providing reasonable notice is given to Owner, the City shall have access to the Premises by City em- ployees for the purpose of inspecting the Premises and the Improvements to ensure that the Im- provements are being made in accordance with the specifications and conditions of this Agree- ment and to verify that the conditions of this Agreement are being complied with, provided that such inspection shall not interfere with Owner's normal business operations. Page 6 D. The Owner shall annually make a certification in writing to the City council, on or before June 1st of each year this Agreement is in effect that certifies that the Owner is in com- pliance with each applicable term of this Agreement. IV. GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria governing tax abatement agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. The Premises are not in an improvement project financed by tax increment bonds. D. Neither the Premises nor any of the Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. E. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control. V. EFFECT OF SALE, ASSIGNMENT, OR LEASE OF PROPERTY A. The Abatement with respect to the Premises, including any tangible personal property located on the Premises owned by Owner, shall vest in Owner and shall be assignable, with City approval, which shall not be unreasonably withheld, to any individual, partnership, joint venture, corporation, trust or other entity (irrespective of whether or not such assignee is Page 7 related to or affiliated with Owner) which acquires title to the Premises. Any assignee of Owner or any assignee of a direct or indirect assignee of Owner shall be treated as "Owner" under this Agreement. No assignment shall require the consent of City if the assignment is to a wholly- owned subsidiary of the Owner or if, following such assignment, the Owner continues to occupy and operate the Contemplated Improvements for the full term of this Agreement. Nor shall the consent of the City be necessary if the assignee agrees to fully comply with the terms and condi- tions of this Agreement. VI. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsmile: OWNER: CITY: Peter Burlage George A. Campbell President and CEO City Manager 14651 North Dallas Parkway City of Denton Suite 500 215 E. McKinney Dallas, TX 75254 Denton, Texas 76201 Fax No. 214351.0194 Fax No. 940349.8596 VII. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the day of , 2011, authorizing the Mayor to execute this Agree- ment on behalf of the City, a copy of which is attached hereto and incorporated herein by refer- ence as Exhibit "C". Page 8 VIII. BOARD OF DIRECTORS AUTHORIZATION This Agreement was entered into by Owner, pursuant to authority granted by the Board of Directors of its ultimate parent, PMFG, Inc., a Delaware corporation, as authorized by corpo- rate resolution to execute this Agreement on behalf of Owner; a certificate evidencing such reso- lution and consent is attached hereto and incorporated herein as Exhibit "D" as if written word for word herein. IX. SEVERABIILTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the term of the Abatement with respect to any property is longer than allowed by law, or (ii) the Abatement applies to a broader classifica- tion of property than is allowed by law, then the Abatement shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. X. ESTOPPEL CERTIFICATE Any party hereto may request an estoppel certificate from the other party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if default exists the nature of default and curative action, which should be undertaken to cure same), the remain- ing term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party(ies) to receive the certificates. Page 9 XI. OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. XII. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, Texas. XIII. MUTUAL ASSISTANCE City and Owner agree to do all things reasonably necessary or appropriate to carry out the terms and provisions of this Agreement and to aid and assist each other in carrying out such terms and provisions. Owner and City agree at any time, and from time to time, to execute any and all documents reasonably requested by the other party to carry out the intent of this Agree- ment. XIV. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XV. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. Page 10 XVI. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument. XVII. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. XVIII. NO JOINT VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. XIX. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement pursuant to the procedures set forth in Title 3, Chapter 312 of the Code. XX. FORCE MAJEURE If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party is not able to perform any or all of its obli- gations under this Agreement, then the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. Page 11 This Agreement is executed to be effective 30 days after the executed date of the day of 2011, (the "Effective Date") by duly authorized officials of the City and Owner. CITY OF DENTON, TEXAS BY: MARK BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: PMFG, INC. BY: PETER BURLAGE ATTEST: BY: Page 12 STATE OF TEXAS § COUNTY OF DENTON § Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Mark Burroughs, Mayor for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of 12011. Notary Public in and for the State of Texas My Commission Expires: Page 13 STATE OF TEXAS § COUNTY OF DALLAS § Before me, the undersigned, Peter Burlage, on behalf of PMFG, Inc., known to me to be President of PMFG, Inc., and to be the person who signed and executed the foregoing instru- ment, and acknowledged to me that this instrument was executed for the purposes and considera- tion therein expressed. Given under my hand and seal of office this the day of 12011. Notary Public in and for the State of My Commission Expires: EX H I IT A FIELD NOTES BEING A TRACT OF LAND LOCATED IN THE ROBERT CHOWNING SURVEY, ABSTRACT No. 266 AND THE O.S. BREWSTER SURVEY, ABSTRACT Na'. 56, DENTON COUNTY, TEXAS, BEING A PORTION OF LOT 2, BLOCK A, RYAN COMPANIES ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN INSTRUMENT No. 2010-96 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING A PORTION OF A TRACT OF LAND DESCRIBED AS SECTION 8, TRACT ONE, AS RECORDED IN VOLUME 1796, PAGE 661 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" FROM WHICH A 112" IRF WITH A GAP STAMPED "KAZ 5312" AT THE NORTHEAST CORNER OF LOT 6, BLOCK A, CORBIN ROAD BUSINESS PARK, PHASE III, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN CABINET Y, PAGE 639 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND THE NORTHWEST CORNER OF DAKOTA LANE (A 7 FOOT WIDE RIGHT-OF=WAY) AS RECORDED IN INSTRUMENT No. 2004-150435 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS BEARS S 54 033'45"W, 86.00 FEET; THENCE NORTHWESTERLY, AN ARC LENGTH OF 118.24 FEET ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 375.00 FEET, A DELTA ANGLE OF 18°03'57" AND A CHORD BEARING OF N 16°12'01"W, 117.75 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC", THENCE N 25°13'59"W, 28.60 FEET TO A 1I2" IRON ROD SET WITH A CAP STAMPED WIER ASSOC INC" AT THE BEGINNING OF A CURVE TO THE LEFT;. THENCE NORTHWESTERLY, AN ARC LENGTH OF 59.68 FEET ALONG SAID CURVE TO THE LEFT, HAVING A RADIUS OF 429.50 FEET, A DELTA ANGLE OF 07057'43" AND A CHORD BEARING OF N 29°12'51"W, 59.64 FEET TO A 1I2" IRON ROD SET WITH A CAP STAMPED `WIER & ASSOC INC THENCE N 33011'42"W, 132.77 FEET TO A 1I2`° IRON ROD SET WITH A CAFE STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE TO THE RIGHTS THENCE NORTHWESTERLY, AN ARC LENGTH OF 213,11 FEET ALONG SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 370,50 FEET, A DELTA ANGLE OF 32°57'24" AND A CHORD BEARING OF N 16*43'00"W, 210.19 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC", THENCE N 00°14'18"W, 686.31 FEET TO A 1/2" IRON ROD SET WITH A CAP STAMPED! "WIER & ASSOC INC" THENCE N 89052'18-E, 1,594.50 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC'"; THENCE. 00°48'24"W, 257.73 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED WIER & AS OC INC"; THENCE S 53°15'10"1N, 604.70 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSO INC", THENCE S 00°4324"W, 499.99 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE S 89°34'16"W, 198.70 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER &ASSOC INC"'; THENCE 04037'27"W, 73.92 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 89°53'17"W, 685.59 FEET TO THE PLACE OF BEGINNING AND CONTAINING 33.591 ACRES (1,463,226 SQUARE FEET) OF LAND, MORE OR LESS. LOT I . BLOCK 'A' f RYAN COMPANIES ADDITION m r INST. No. ~ E (}-96 P.R.D°C.T. a J,r w n i PROPOSED DAKOTA LANE n ►!k CA zM 1. z - Noo,wiepw 685.3E' G)-n or-mv -0;0;0 j nraav roar, -4ro ~ g, I n p x A Dmom rn I I I c r- ao t7 w, -fb ur on C] to 0 0 ~d 0) 6 l II ~I °s ' aMwc~ rip r~i• Z Ill w rn M i I ~l CD j - 0 A- r- MID- -I a 0 v- -I :IF Z CD l I m I YEq _ 100 II-Ally I II a l II o S000431241W 499.99, o C3 tX3 tip, > tti C-) tz En a l - - - - - - - - - - - - - - - - t EXHIBIT B LI) CORPORATE HEADQUARTERS PEERLESSmfg.co. 411' ~ 14651 North Dallas Parkway 1 4 Suite Soo . Dallas, TXJSt v Telephone zaG°'';7-h8 FAX 2:;, i.-oa94 . February 11, 2011 City Manager City of Denton 215 E. McKinney Denton Texas 26201 Dear Sir: Enclosed please find our final Application for Tax Abatement for the property located on or near Corbin Road and Dakota Lane for a possible new facility being built on that site by Peerless Mfg. Co. Should you have any questions with regard to the Application, you may contact our office at 214-353-5589, Sincerely, Kathy Sea e Executive Assistant to the CEO /kas Enclosures c 'ALCO PR OFF x BURGESS-MANNING BOS-HA'TTEN 2010 Tax Abatement Policy APPLICATION FOR TAX ABATEMENT CITY OF DENTON, TEXAS I . Property Owner Company or Project Name e'e it- Iesg Mailing Address 1 41lQ w` ( 1J. 't'elephone 1 5-7-6 1 ~ l Fax No. ~ ,r fjv l` C1 7 W ebsite Contact Name t- ttx.A ~ Title t` t 1t Mailing Address , s-1 Al . "t49 ~JC~ i` 5 c~ Telephone _ 3 g-3e ~°Z Fax loo. 4/J Email Address A to r- t e. a a i- Vi'eS eat , - wry 2. Provide a chronology of plant openings, closing and rck),L ,i ions over the past 15 years, a~`c t/ U .s -rya.e J z9 evt CL-0 ►'Y'aA6+C'40Lq+-.- rt tC'i t li t 3. Provide a record of mergers and financial restructuring ~uving the past 15 years. a a S f-0 ACC 01P k°-e' r r - fi e f~t~ f° 7 °t? ~ ,Tr$~o~. J Y n+k f~ . ~G~ t) ~ S° ~ rr'jo r rlt°/ m , q + 4. Will the occupants of the project be owner or lessee? If lessee, are occupancy commitnnents already existing? 5. Is the project a relocation of existing facilii) ur a new taci lh~y to expand operations? If relocation, give current location. ' t~rti Page 13 of 19 201 0 Tax Abatement Policy 6. If an existing Denton business, will project result in abandonment of existing facility? If so, the value ofthe existing facility will be subtracted from the value of the new facility to arrive at total project value. t 7. Property Description. - Attach a copy of the legal description detailing property's metes and bounds. C. x F - Attach map ofproject including all roadways, land use and zoning within 500 feet of site. Se p Current Value. Attach copy of latest property tax statement from the Denton County Central Appraisal Diisstri . (include botli real an personal property). 1 - .~f C d + r~ Gtit+Pt-~[rfc 2 +Lr - Gv Lt ieo-e Fre ` o rMas " C rrrK4- t r~ 1f+~ ut r~a>G t 9. Increased Value/stimated 'T'otal Cost ofProlect. I T, _X tt a we f i~ ~a p , ~Xf- a e ' Structures $ s . g ;,t M Site Development $ J . Y !*d IR t Personal Property $ q , 0 14A vlk Other Improvements $ 7o o e, o 10. Indicate percent of tax abatement and number of years requested. Percent Requested l Years Requested List any other financial incentives this project will requestlrcceive Estimated Freeport Exemption ; Een$ U-Ja-, Estimated Electric Utility Industrial DevRider $ Estimated Water/W astew at cr infrastructure Assistance $ 11. Give a brief descrip#ion of the activities to be performed at this location, including a description of products to be produced and/or services to be provided.. The Denton facility will be an environmentally clean manufacturing process, fabricating steel components to be assembled into products used in applications ranging from defense to nuclear reactor components. The plant's environmental footprint will be minimal such that Peerless does not anticipate requiring an air permit. There will be high-tech jobs located at this facility to engineer and design the manufactured product. All manufacturing processes will be contained within the confines of the building and therefore not visible from the outside. Paige 12 of 19 k 2010 Tax Abatement Policy 11 [describe any of I-siw infrastructure requirements- . Water 9" eo'X' t 1% Z_ a a+ P e,< S40- • Wastewater o n E • Streets o_La, 4-0+ L-4 t 6711 rr. CE ~ -k- . Drainage C/ It C a t r Q PL . Other 13. Project Operation Phase. Provide employment information for the number of years tax abatement is requested. At Project Existing Start Bate At Term of Employment Information Operation (nto/yr) Abatement (if applicable) A. Total number of permanent, full-time jobs _C/ B. Cmployees transferred from outside Benton Q d O. Net permanent full-time jobs (A. minus B.) Gtr F.. Total annual payroll for all permanent, full-time / ~y y ! ~ ! 1 ,`k' ! . ~ t+t. jai i f L) d tt ntt jobs (A.) F. Types ofjobs created. List the job titles and number of positions in each category that will be employed at the facility. Provide average wage for each category, tC4itat# , G Indicate the number of shifts the project will operate Page 13 of 19 20 10 Tax Abatement Policy H. Estimatc annual utility usage for project; t°~+~ ~ ~ ~ t t lr Electric 3 ~ ~s C, c tC' w Hr r!#kWh Water 1 3 3 e `3 n vL ~r aG( gpd Wastewater v w S u1a ~ r r- gpd Gas AA d mcf ;E ef K t 00 V~WT VV-' Gt to a 14. Describe min other direct berwl it.; to the City of Denton as a result of this project (e.g., sales tax revenue or project clernonts identified in Tax Abatement Policy, Section 11I). ,•o 5~ t2 a~ t Est r u _ y-+r-e't C-+ L 14'S '04-W (mss CL U L a el a - ; d 1r6 as e'a/ 4or O Ire rwa &-ice 15, is property zoned appropriately? No - Current zoning. / - Zoning required for proposed project. Anticipated variances. /Up A e- 16. 1s property platted? `t''es No I~/L 91 & ~i n a! lid , rL Loi, f- e +L a"(,L eN Will replatting be necessary Yes N 17. Discuss any environmental impacts created by the project. A. List any permits for which applicant must apply. Applicant will be required to provide City with copies of all applications for environmental permits upon completion of applications). ?i eeF doss e e & l t° ca e ac+ ur~l er f' n 'e{ a Pe er 1 ess /KO 6e r Q cw re ell 4 / r Gt So( tc 4 rr .wr '~CC~ /e c/ e e /r'aS i er ta(rif ~rarSKk G? ti°nc rarrR«~ B. Provide record of compliance to all environmental reou'arii nti fi-)r the past five years. r err w i~Fy ~ 5 ~ ~ u. t- ~ e~ ` P ~ r" ~ ,t'~a.t7 d /-I°•[' n+ ~ et- a,~ ;tf! yl' I JO rat Ct&ne- -e r" CuFA(C. 18, provide specific detail of any businesses/residents that will be displaced and assistance that will be available from the requesting company. Page 14 of 19 2010 Tax Abatement Policy 19, Provide description of any historically significant area included within the project's area as determined by the Historic preservation Officer. If any, give detail of how the historically significant area will be preserved, {S Pt-C It 20. Justification for Tax Abatement Request: Substantiate and more fully describe the justification for this request, Include the amount of the abatement requested and show how it will contribute to the financial viability of the project, Submit attachments if necessary. 21. List additional abatement fact+>rti to be considered for this project as outlined on pages 3 and 4 ofthe Tax Abatement Policy. /22. Financial Information: Attach a copy ofthhe latest audited financial statement or, in the case ofa new project, a business plan. 17 ~KC I S tlrvlh a I: AM P l c,c rt° c r` x c 23. Does the project have an eligible environmentally sii"sWMahle or rencwrchle energy component (if so, please identify type and provide a brief description) /v~`1 24. Applii:aM[S seeking LEER certification must complete the {been Building Application for Tax Abatement (Exhibit B of the policy). /1-Y- Page 15 of 19 2010 Tax Abatement Policy This tax abatement application is submitted with the acknowledgement that additional certified financial information may be required. Authorized Signature Date: i~ Page 16 of 19 Denton Central Appraisal D str;, t - PropertyDetails Paue 1 of 3 Prover v e ax s or account Tax Information The Denton Central Appraisal District is not responsible for the assessment or collection of taxes for this or any other property. if you have a question regarding your tax bill, or would like to pay your tax bill online, please contact the Denton County Tax Assessor / Collector. General Information Property ID 37170 6.1 e©grahic StJ00887 OOOOOA 0000 -0004-0000 . Y~eg.al Uc_.c.rgti[sn rpressway' lndustrnl Park B1k A Lot 4 (n pt) 9/278-a _ Si,tus Address an St T" x 70205 7215 r r Type Real Prop,,--!r Abstract/subdivisen 6"t#'8 , ham. 2 Arnt Ii) e Aqent Na.ne Quintin end - , Qwner D . „rir,r Name Peerless Mf Co Pe Lc e "n' C?canersYa3p Maa.ling Ad'-ress n St C05 n).. Taxing Juxisdictions r 0 11 trn =..d9 ExemPzic.nn N/71 flat, _on CAIN CTS View Map 2010 Certified Values l..p ite Value $0 Improvement Hrames Improvement Nor Homesite Value (+j $522,292 Land Hr,innsite Valle $0 Land Non-Homasi tre Value ($29 1, 540 Agricultural Market Value $0 Timmlya" Market Value (-F) $ 0 ~g1i,832 otal Marl et Value J~gricu l t t: «1 Use Reduction f ) $ 0 Timber Use Reduction $0 P.ppraiSr r3 Value 13 832 t ) $0 Ho~nestead,.Caa t.s g $813,832 2010 Improvements Improvement 1287423 State Code F2. lmgr e3 vemez?1 type Commer cial..... faiF''S ~MnG Exterior Wall Foundation bttp.//www.dentonead.com/index.php?option=com_content&task=view id=140&Year=2:.. 1/10/2011 Denton Central Appraisal Distri, t - PropertyDetails Page 2 of 3 Roof Covering at,: Ceiling 22 _ Dock N Condition Average . Sprinkler Systebtt Heating/Cooling Glass What's thtsa Year Built Sq. Footage Type 840 0 6,058 sq. feet MaLn Area Improvement 1287424 State Code F2 Improvement Type Commercial COMMERCIAL Heating/ cx 7. ncj C IiCA Sprinkled System N . Ceiling 22 Dock N Condition Average Glass whars this? Year Built Sq. Footage Type 840 0 15,542 sq, feet Main Area Improvement 1287425 State Code F2 Improvemc r1t ypa Misc Imp CtiJNCJ 6ondi'6on eT ,ne !Mass M§Kr5 this Year Built Sq. Footage Type CON 0 14,400 sq. feet Waving 2414 Certified Land Segments Land type Acres Sq. Ft, Appraised Value Commercial 3.3464 145,770 sq. feet i1, `40 Property History Year Improvement(s) Land Appraises! Assessed Gino $52,,292 $291,540 X81 $813,€332 L009 $x33,698 $291,540 $825,"38 $825,238 3 $497,595 $291,540 $789,135 $789,135 ~fprp $458,021 $291,540 $749,561 $749,561 $425,384 $145,770 71,15 $571,154 2005 $393,123 $145,770 $ _ $538,893 2004 $377,920 $145,770 $523,690 2003 $363,892 $145, 770 )9, 66. $509, 662 Ti $363,892 $145,770 $509,662 $509,662 2(''_ $35B,385 $145,770 $504,155 $504,155 2000 $331,830 $145, 770 $477,600 $477, 600 1 $287,086 $145,770 $432,856 $432,+856 1 $287,086 $145,770 $432,856 $432,8505 1 $241,757 $145,770 $387,527 $387,527 1r', $293,957 $145,770 $439,72) $439,727 I-S15 $293,957 $145,770 $439,727 $439,727 7 -4 $293,957 $145,770 $439,727 $439,727 1?, $253,957 $145,770 $439,727 $439,727 1992 $293,957 $145,770 $439,727 $439,727 http://www.dentoncad.com/inch x. hp?option=coo content&task=view&id=100 Year==... 1/10/2011 Denton Central Appraisal District - Propert Details Page 3 o 3 Agent History Year Agent ID Agent Name 2011 1Quiririn Arad Ast`LL i°t s 2010 152 Quintin And Ast! ?-_,_t. 2009 152 Antin And A.. : 2008 152 ntir+ Arid 7007 152 v airiti:- And A- E _,}3 2006 152 Quj t'n And P _c s 2005 152 int.-'n And A.:r_ 2004 152 -1c -tin And Associai_ s 2003 152 -1 -ntiri Arad Associates 2002 152 -T, -in And. Associates 2001 152 a ntin And Associate: Senate Bill 541 In 2005, Texas passed Senate Bill 541, which prohibits the Denton Central Appraisal District and every other Appraisal District in the State of Texas from making photographs and floorplans of property available online. Exempted from the restriction will be aerial photographs of five or more separately awned buildings,. Yc zeal more about S.H. 541 }sere. to Search littp;//w,,vw.dentoncad..conVi ndex.php?option=com_eontent&task=view&id=1 OO&Year=2.,. 1/10/2011 FIELD NOTES BEING A TRACT OF LAND LOCATED IN THE ROBERT CHO111lNING SURVEY, ABSTRACT No. 266 AND THE D.S. BREWSTER SURVEY, ABSTRACT No. 56, DENTCN COUNTY, TEXAS, BEING A PORTION OF LOT 2, BLOCK A, RYAN COMPANIES ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN INSTRUMENT No. 2010-96 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING A PORTION OF A TRACT OF LAND DESCRIBED AS SECTION 8, TRACT ONE, AS RECORDED IN VOLUME 1796, PAGE 611 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" IN THE SOUTH LINE OF SAID LOT 2, BEING THE NORTHWEST CORNER OF LOT 1, BLOCK B, CORBIN ROAD BUSINESS PARK, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN CABINET X, PAGE 90 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND THE NORTHEAST CORNER OF DAKOTA LANE (A 73 FOOT WIDE RIGHT-OF- WAY) AS RECORDED IN INSTRUMENT No_ 2004-150435 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE N 00006`43W, 2.49 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE NORTHWESTERLY, AN ARC LENGTH OF 165.88 FEET ALONG SAID CURVE TO THE LEFT, HAVING A RADIUS OF 375.130 FEET, A DELTA ANGLE OF 25213'42" AND A CHORD BEARING OF N 12°33'38"W, 164.53 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & A SOC INC"; THENCE N 2513'59"W, 28.60 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INCAT THE BEGINNING OF A CURVE TO THE LEFT; THENCE NORTHWESTERLY, AN ARC LENGTH OF 59.68 FEET ALONG SAID CURVE TO THE LEFT, HAVING A RADIUS OF 429.53 FEET, A DELTA ANGLE OF 07057'43" AND A CHORD BEARING OF N 29°12'51"W, 59.64 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 33°11'42"W, 132.77 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "`WIER & ASSOC INC" AT THE BEGINNING OF A CURVE TO THE RIGHT; THENCE NORTHWESTERLY, AN ARC LENGTH OF 213.11 FEET ALONG SAID CURVE TO THE BIGHT, HAVING A RADIUS OF 370.50 FEET, A DELTA ANGLE OF 32057'24" AND A CHORD BEARING OF N 16°43'00"W, 210.19 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC", THENCE N 00014'18"W, 686.31 FEET TO A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER & ASOC INC"; THENCE N 89°82'18"E, 1,624.50 FEET TO A 112" IKON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC", THENCE. 00°43'24"VV, 235.18 FEET TO A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" THENCE S 53015'10"W, 642.49 FEET TO A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE S 6(3043'24"W, 550.00 FEET TO A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC", BEING IN THE SOUTH LINE OF SAID LOT 2 AND SAID RAYZOR INVESTMENTS TRACT AND BEING IN THE NORTH LINE OF A TRACT OF LAND DESCRIBED IN DEED TO TEXAS INDUSTRIES, INC., AS RECORDED IN INSTRUMENT No. 1994-668137 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE ALONG THE SOUTH LINE- OF SAID LOT 2 AND SAID RAYOR INVESTMENTS TRACT AS FOLLOWS; S 89034'16"W, ALONG THE NORTH LINE OF SAID TEXAS INDUSTRIES TRACT, 151.92 FEET TO A 6"CEDAR FENCE POST FOUND FOR ELL CORNER IN SAID SOUTH AND NORTH LINES; S 04°37`27"W, ALONG THE WEST LINE OF SAID TEXAS INDUSTRIES TRACT, 74.36 FEET TO A 3/8" IRON PIPE FOUND FOR ELL CORNER IN SAID SOUTH LINE, BEING THE NORTHEAST CORNER OF SAID LOT 1, BLOCK B, CORBIN ROAD BUSINESS PARK, N 9°53'17"W, ALONG THE NORTH LINE OF SAID LOT 1, CORBIN ROAD BUSINESS PARK, 728.78 FEET TO THE PLACE OF BEGINNING AND CONTAINING 34.858 ACRES (1,518,424 SQUARE FEET) OF LAND, MORE OR LESS. ti3 ~ Rte- u r, ^ F, I~ - I~ s 4 LN R` L aaa N - S ag 'ft DISCLAIMER N Project-Map Various official and unofficial sources were used to gather this information. Every effort was made to ensure the accuracy of this data, however. no guarantee is given or implied as to the accuracy of said data. I Exhibit C Q.F: Types of jobs created. List the job titles and number of positions of each category that will be employed at the facility. Provide average wage for each category. Production Management-20; $65K Professional/Administrative - 5; $50K Human Resources-2; $50K Drafters -1!0; $60K Project Management-8; $80K Senior/Director Level Management-3; $125K Manufacturing - 66; $45K (Benefits equate to 29% of salary.) Exhibit D 20. Justification for Tax Abatement Request: The success of a business and the success of a city in which a business resides are very dependent upon each other. These mutual benefits have been well documented and debated for decades. Peerless Mfg. Co. (PMC) is committed to making a significant investment in expanding and consolidating our manufacturing operations. The location we select for our investment is a critical decision and we are fortunate that our existing f~icilities reside in more than one high quality city/region which allows us the good fortune of having a choice when it comes to our final location. The investment PMC is planning to make is estimated to be between $12 million and $16 million in personal property, plant and equipment. The new facility being built in Denton will retain the employment of 43 current employees at our existing Denton facility and will allow us to add up to xx additional employees to the overall staff. The new employees will consist of additional skilled production workers and the addition of drafting, design and Engineer employees. A larger operating facility in Denton will also bring more visitors to the region each year. Our products that we build are custom engineered to order. This type of custom fabrication brings many of our customers to our facility during a project's life cycle. Our customers come from all over the world from the electric power, natural gas, military and refining industries. These customers often stay for multiple days, providing the city a sales tax revenue opportunity. To access our new facility, the project will require that we build a new city street that will provide the city with an additional north-south connector street between two major east-west streets. The new street will provide additional access to the industrial development zone that should in turn help attract more companies to the area. With the utilization of this new street, the city will reduce its response time of emergency vehicles to other businesses in the area. 21. List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of the Tax Abatement Policy. A. The project will create high-skilled, high paying jobs: • Production Managers salaries range of $50k - $65k per year • Senior Managers & professionals salaries range of $60k -$110k per year • Engineers $50k to $100k per year • Drafting/ Designers $42k -$80k per year • Project Managers $90k - $125k per year • Welders $38k -$48k per year Exhibit D • Assemblers $32k-$40k per year B. The project will involve significant relationship with one of the two universities in Denton. Current and Past relationship with LINT: Dr. Mani Fadda has served on the LINT industry advisory committee for 2000 and 2010. Dr. Jay Stell is on this committee now for 2011. • Sean McMenamin- VP of Manufacturing, is on a the LINT Advisory Board We have had four senior design teams from the LINT Mechanical Engineering Technology program perform their senior design projects with complete funding and advising by Peerless. Each team worked in our R&D lab for two 2ernesters (picture attached from the final presentation in 2007 at the UNT campus in DenlQn), o E-1991 Pipe Vaporizer, 2007 • C-2233 Perforated Plate Modeling, 2007 o E-2000 Construction of LISP skids, ZOOS. This project won the ASME North Texas Section "Best. Design and Presentation-Senior Design class of 2008". The award was presented to this team of LINT students at the ASME North Texas Section Awards Banquet. o E-2011 Pocketed Cyclone, 2010 We supported the DCBest (Denton County Boosting Engineering, Science and Technology) Robotics competition in 2010 (htth.//www.eng.unt.edu/dcbest2010/Sponsors.htm) o Peerless gave Bronze Level donation of $550 o Individuals gave additional Best Friend donation of $140 • We have LINT graduates on our staff because of our relationship with LINT o Mac Buzanowski, Francisco Cardenas, Joseph Figueroa, Tien Hinz, Vaughn Watson The relationship with LINT will be enhanced further if the project is built in Denton. If the project goes to another location the relationship with LINT will significantly deteriorate. C. At least 2S% of the new jobs created by the project will be filled by Denton residents. • We would expect this to be the case D. The project will provide knowledge-based jobs (at least 25/ of jobs require college bachelor's degree at entry level). • All Engineering, project management, professionals, Senior Managers and the Designers. IlcodadldepartmentAegaAour documentslordinances1111peerless manufacturing abatement ord.doc EXHIBIT C ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH PMFG, INC.; SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDI- TIONS PRECEDENT TO PMFG, INC., A DELAWARE CORPORATION, RECEIVING THE TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 3rd day of May, 2011, after a public hearing duly held in accordance with Tex. Tax Code §312.201 (the "Act"), the City Council passed Ordinance No. 2011- (the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas as a commer- cial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap- ter 312, Subchapter B of the Act; and WHEREAS, on the 14th day of February, 2011, PMFG, Inc., submitted an application for tax abatement with various attachments to the City concerning the contemplated use of certain property located within the Zone; and WHEREAS, the City Council finds that the contemplated use of the premises and the contemplated improvements to the premises, as indicated by PMFG, Inc., are consistent with encouraging the development of the Zone in accordance with the purposes for its creation and are in compliance with the Denton Tax Abatement Policy; and WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate- ment Agreement with PMFG, Inc.; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings contained in the preamble to this Ordinance are true and cor- rect and are adopted as a part of the whole Ordinance. SECTION 2. The City Council finds and determines the following: A. The contemplated use of the premises and the contemplated improvements of the premises, as indicated by PMFG, Inc. are consistent with encouraging the develop- ment of the Zone in accordance with the purposes of its creation and are in com- pliance with the Denton Tax Abatement Policy. B. The City Council finds that the improvements sought by PMFG, Inc. within the Zone are feasible and practical and would be a benefit to the land to be included in the Zone and to the City after the expiration of the Tax Abatement Agreement to be en- tered into with PMFG, Inc. Page 1 of 3 llcodadldepartmentsllegallour documentslordinancesl1 1\peerless manufacturing abatement ord.doc C. The City Council finds that the Tax Abatement Agreement contains all the terms which are mandatorily required to be included in any tax abatement agreement under §312.205 of the Act. D. In accordance with §312.2041 of the Act, the City Council finds that not later than the date on which the City Council considered this ordinance, and not later than the se- venth day before the date the City enters into a Tax Abatement Agreement with PMFG, Inc., that the City Manager, through the Director of Economic Development, who are hereby designated and authorized by the City Council to give such notice, delivered to the presiding officer of the Denton Independent School District and Den- ton County a written notice that the City intends to enter into this Tax Abatement Agreement with PMFG, Inc., and that this notice included a copy of the proposed Tax Abatement Agreement in substantially the form of the Tax Abatement Agreement at- tached to this ordinance. E. Before the passage of this Ordinance, the City Council held a public hearing in accor- dance with §312.201 of the Act and created Reinvestment Zone No. X. F. The City Council finds that the project within Reinvestment Zone No. X is a redeve- lopment of an existing business as defined in the Tax Abatement Policy and requires additional incentives to promote economic development that generally satisfies the requirements of the policy and the City Council hereby authorizes a tax abatement of a maximum of 40% on the increased valuation of the Taxable Real Property im- provements and tangible personal property as more particularly described in the Tax Abatement Agreement attached hereto and made a part hereof by reference as Exhibit "A" (the "Tax Abatement Agreement"). SECTION 3. The Mayor, or in his absence, the Mayor Pro Tem, is hereby authorized to execute the Tax Abatement Agreement with PMFG, Inc. in substantially the sarne farm as the Tax Abatement Agreement attached as Exhibit "A". SECTION 4. The City Council hereby instructs and authorizes the City Manager to in- spect, audit, and evaluate the progress of PMFG, Inc. to determine if it has met all of the condi- tions of the attached Tax Abatement Agreement prior to the tax abatement going into effect. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or 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, the City Council of the City of Denton hereby declares that they would have enacted such remaining portions despite any such validity. SECTION 6. This Ordinance shall become effective immediately upon its passage and approval. Page 2 of 3 Ilcodadldepartmentsllegallour documentslordinancesll 1lpeerless manufacturing abatement ord.doc PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 3 of 3 AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Economic Development Department ACM: Jon Fortune SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating a certain area within the city limits of Denton as Peerless Manufacturing Reinvestment Zone No. X for commercial/industrial tax abatement; establishing the boundaries of such zone; making findings required in accordance with Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto; providing a severability clause; providing for repeal; and providing an effective date. BACKGROUND The attached ordinance establishes Reinvestment Zone X. Under Chapter 312 of the Texas Tax Code, businesses that receive tax abatements must be located within a reinvestment zone, a designated area where economic development is encouraged. The new facility will be located on the eastern boundary of the new Target distribution center on Airport Road. The property included within the boundaries represents a site of approximately 33.591 acres situated on Dakota Lane, just south of Airport Road. City Council's adoption of the ordinance establishing the reinvestment zone will allow Council to consider a tax abatement agreement with Peerless Manufacturing Company, a Delaware corporation. The company plans to constrict a new regional facility of approximately 80,000 square feet for phase one. They will have the ability to expand to 200,000 in the future. ESTIMATED SCHEDULE OF PROJECT If the reinvestment zone and tax abatement are approved, the company will begin constriction in 2011. They plan to open the facility in 2012. PRIOR ACTION/REVIEW At their March 21, 2011, meeting, the Economic Development Partnership Board recommended approval of the proposed tax abatement agreement (5-0). FISCAL INFORMATION Establishing the reinvestment zone has no fiscal impact. EXHIBITS Ordinance and Exhibits Respectfully submitted: Linda Ratliff, Director Economic Development Department llcodadldepartmentsllegahour documentslordinances\1 llpeerless manufacturing reinvestment ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS PEERLESS MANUFACTURING COMPANY REINVESTMENT ZONE NO. X FOR COMMERCIAL/INDUSTRIAL TAX AB- ATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING OTHER MATTERS RELATING THERETO; PROVIDING A SEVE- RABILITY CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality") desires to promote the development or redevelopment of a certain contiguous geographic area within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by Tex. Tax Code Ch. 312 (referred to as the "Property Redevelopment and Tax Abatement Act" or the "Act"); and WHEREAS, an industry or business known as Peerless Manufacturing Company has re- quested tax abatement to construct a facility and build improvements within the area to be desig- nated as Reinvestment Zone X; and WHEREAS, the City Council desires to create a proper economic and social environment to induce investment of private resources and productive business enterprises in this area of the City, which meets the criteria established under §312.202 of the Act, and to expand primary em- ployment or to attract major investment; and WHEREAS, a public hearing before the City Council was held at or after 6:30 p.m. on May 3, 2011, in the City Council Chambers of the City of Denton at 215 East McKinney Street in the City of Denton, such date being at least seven days after the date of publication of notice of such public hearing and the receipt of written notices of such public hearing by the presiding officer of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone, in accordance with §312.201 of the Act; and WHEREAS, such public hearing was held before the consideration and adoption of this ordinance; and WHEREAS, the City, at that hearing, invited any interested citizen or his representative to appear and offer testimony or evidence for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in the notice calling the public hearing should be included in the proposed reinvestment zone; and the concept of tax abatement; and WHEREAS, in accordance with such public notice, all owners of property within the proposed reinvestment zone and all other taxing units and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone; and WHEREAS, on the 20th day of April, 2010, on or before the holding of the above- mentioned public hearing, the City Council passed Resolution No. 2010 -009 establishing guide- lines and criteria governing tax abatement agreements and stating that the City of Denton elects to become eligible to participate in tax abatement, in accordance with Tex. Tax. Code §312.002and such Policy is now in effect and was in effect prior to the public hearing; and WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of- fered evidence in favor and against all matters relating to the creation of the reinvestment zone, and, after hearing this testimony and evidence, the City Council deems it in the public interest to create this reinvestment zone; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2. For the purposes of this ordinance, the following terms and phrases shall have the following meanings ascribed to them: A. Improvements - Improvements shall include, for the purpose of establishing eligibility under the Act, any activity at the location, including, but not limited to, new construction, recon- struction, renovation and repairs. B. Taxable Real Property - Taxable real property shall be as defined in the Texas Property Tax Code and shall not include personal property as defined in the Code. C. Tangible Personal Property - Tangible Personal Property shall be defined as business per- sonal property, excluding inventory and supplies. D. Base Year - The base year for determining increased value shall be the taxable real property value assessed the year in which the Tax Abatement Agreement is executed. SECTION 3. The City, through its City Council, after conducting the above-mentioned public hearing and having heard such evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it: A. The public hearing on the adoption of the reinvestment zone has been properly called, held, and conducted in accordance with §312.201 of the Act and all other applicable laws, and that notice of such hearing has been published as required by law and delivered to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone as required by law; and Page 2 of 6 B. Prior to holding the public hearing, the City has adopted, by resolution, the guidelines and criteria governing tax abatement agreements by adopting a City of Denton Tax Abatement Policy, as amended, and the City has elected to participate in tax abatement; and C. The City had jurisdiction to hold and conduct the public hearing on the creation of the pro- posed the reinvestment zone, pursuant to chapter 312 of the Act; and D. The boundaries of the reinvestment zone shall be the area described in the metes and bounds description attached hereto as Exhibit "A" and as shown on the diagram as the outlined area attached hereto as Exhibit "B" and being approximately 33.591 acres on Dakota Lane, just south of Airport Road and east of Corbin Road in the corporate limits of the City of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of this ordinance as if written word for ward herein; and E. The creation of the reinvestment zone for commercial/industrial tax abatement with the im- provements expected to be developed by Peerless Manufacturing Company would be of ben- efit to the City and to the land to be included in the zone, with the boundaries as described in Exhibit "A," after the expiration of the tax abatement agreement entered into under §312.204 of the Act, and the improvements sought are feasible and practical; and F. The reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation of a reinvestment zone, as set forth in §312.202 of the Act, since it is, "rea- sonably likely, as a result of the designation, to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the Municipality;" and G. The reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation of a reinvestment zone as set forth in the Denton Policy for Tax Abatement and the expected improvements in the boundaries of the zone are expected to enhance signif- icantly the value of all taxable real property and tangible personal property located within the reinvestment zone. SECTION 4. Pursuant to §312.201 of the Act, the City, through its City Council, hereby creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area described by the metes and bounds description in Exhibit "A" attached hereto and as shown on Exhibit "B" attached hereto and such reinvestment zone is hereby designated and shall hereinaf- ter be designated as Reinvestment Zone No. X, City of Denton, Texas. SECTION 5. Reinvestment Zone No. X shall be effective as of June 1, 2011, and shall terminate five years from that date, on May 31, 2016, unless extended for an additional five-year term or unless earlier terminated by action of the City Council in accordance with §312.203 of the Act. SECTION 6. To be eligible for tax abatement, a commercial/industrial project shall: Page 3 of 6 A. Be located wholly within the zone established herein; B. Meet the requirements of the Denton Tax Abatement Policy; C. Not include property that is owned or leased by a member of the City Council of the City of Denton, or by a member of the Planning & Zoning Commission; D. Conform to the requirements of the City's zoning ordinance and all other applicable laws and regulations; and E. Have and maintain all land located within the designated zone, appraised at market value for tax purposes. SECTION 7. Written tax abatement agreements with property owners located within the zone shall provide the terms regarding duration of exemption and share of taxable real property and/or tangible personal property located on the real property for taxation as approved hereunder, as shown below: A. Duration of exemption from two years to ten years depending on the value of the structures and real property in accordance with the Denton Tax Abatement Policy, beginning with and including January 1, 2012; and B. Share of taxes abated - in the maximum of 40% of taxes on the total value of appraised real property improvements and tangible personal property, excluding inventory and supplies, as more particularly described in the Tax Abatement Agreement between the City of Denton and Peerless Manufacturing Company, which are added, provided, however, nothing herein shall prevent any other taxing unit that includes in its boundaries real property that is in- cluded in the reinvestment zone from entering into a tax abatement agreement with a differ- ent share of taxes abated on the total value of appraised improvements which are added, in accordance with the requirements of chapter 312 of the Act. SECTION 8. Any written agreements authorized under this ordinance must include pro- visions for: A. Listing the kind, number, and location of all proposed improvements of the property; B. Access to and authorizing the inspection of the property by municipal employees to ensure that the improvements or repairs are made in accordance with the specifications and condi- tions of the agreements; C. Limiting the uses of the property, consistent with the general purpose of encouraging devel- opment or redevelopment of the zone during the period that property tax exemptions are in effect; Page 4 of 6 D. Recapturing of property tax revenues lost as a result of the agreement if the owner of the property fails to make the improvements or repairs as provided by the agreement; E. Containing each term agreed to by the owner of the property; F. Requiring the owner of the property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement; G. Providing that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement; H. Contain any additional terms and conditions which the City Council deems are necessary, in accordance with §312.205 of the Act, and that are negotiated with the owner of the property. Provided, however, nothing herein shall prevent other taxing units, who include in their boundaries real property within the reinvestment zone, from negotiating terms and conditions that are different from any municipal tax abatement agreement, so long as the mandatory terms and conditions required by §312.205 of the Act are included. SECTION 9. The City Council further directs and designates the City Manager and the Director of Economic Development as liaisons for communication with regard to all matters per- taining to the Zone, including, without limitation, the development of the amendment of the cur- rent Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements with industries, commercial enterprises, and other businesses eligible for tax abatement under the Tax Abatement Policy and for communication with other taxing entities and the Economic De- velopment Partnership Board. SECTION 10. 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 11. If any section, paragraph, clause, or provision in this ordinance, or appli- cation thereof to any person or circumstance is held invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the re- maining portions of this ordinance. SECTION 12. It is hereby found, determined, and declared that a sufficient written no- tice of the date, place, hour, and subject of the meeting of the City Council at which this ordin- ance was adopted was posted and placed and conveniently accessible at all times to the general public at the City Hall of the City for the time required by law, preceding this meeting, as re- quired by the Open Meetings Act, Tex. Gov't Code Ch. 551, and that this meeting was open to the public as required by law at all times during which this ordinance and the subject matter the- reof has been discussed, considered, and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and contents posting thereof. The City Council fur- ther finds that a quorum was present at such meeting. Page 5 of 6 i SECTION 13. The contents of the notice of public hearing, which hearing was held be- fore the City Council and before the passage of this ordinance on May 3, 2011, the publication of said notice is hereby ratified, approved, and confirmed. SECTION 14. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2011. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 6 of 6 LEGAL DESCRIPTION EXHIBIT A BEING A TRACT OF LAND LOCATED IN THE ROBERT CHOWNING SURVEY, ABSTRACT No. 266 AND THE O.S. BREWSTER SURVEY, ABSTRACT No. 56, DENTON COUNTY, TEXAS, BEING A PORTION OF LOT 2, BLOCK A, RYAN COMPANIES ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN INSTRUMENT No. 2010-96 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING A PORTION OF A TRACT OF LAND DESCRIBED AS SECTION 8, TRACT ONE, AS RECORDED IN VOLUME 1796, PAGE 601 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" FROM WHICH A 1/2" IRF WITH A CAP STAMPED "KAZ 5312" AT THE NORTHEAST CORNER OF LOT 6, BLOCK A, CORBIN ROAD BUSINESS PARK, PHASE III, AN ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN CABINET Y, PAGE 639 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND THE NORTHWEST CORNER OF DAKOTA LANE (A 73 FOOT WIDE RIGHT-OF-WAY) AS RECORDED IN INSTRUMENT No. 2004-150435 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS BEARS S 54 °33'45"W, 86.00 FEET; THENCE NORTHWESTERLY, AN ARC LENGTH OF 118.24 FEET ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 375.00 FEET, A DELTA ANGLE OF 18°03'57" AND A CHORD BEARING OF N 16°12'01"W, 117.75 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 25°13'59"W, 28.60 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED 4ER & ASSOC INC" AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE NORTHWESTERLY, AN ARC LENGTH OF 59.68 FEET ALONG SAID CURVE TO THE LEFT, HAVING A RADIUS OF 429.50 FEET, A DELTA ANGLE OF 07°57'43" AND A CHORD BEARING OF N 29°12'51°W, 59.64 FEET TO A 112° IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 33011'42"W, 132.77 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE TO THE RIGHT; i THENCE NORTHWESTERLY, AN ARC LENGTH OF 213.11 FEET ALONG SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 370.50 FEET, A DELTA ANGLE OF 32°57'24" AND A CHORD BEARING OF N 16°43'00"W, 210.19 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 00"14'18"W, 686.31 FEET TO A 112° IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE N 89°52'18"E, 1,594.50 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC°, THENCE S 00°43'24"W, 257.73 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED °WIER & ASSOC INC-; THENCE S 53°15'10"W, 604.70 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE S 00°43'24"W, 499.99 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE S 89°34'16"W, 198.70 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED "WIER & ASSOC INC"; THENCE S 04°37'27"W, 73.92 FEET TO A 112" IRON ROD SET WITH A CAP STAMPED °WIER & ASSOC INC"; THENCE N 89°53'17"W, 685.59 FEET TO THE PLACE OF BEGINNING AND CONTAINING 33.591 ACRES (1,463,226 SQUARE FEET) OF LAND, MORE OR LESS. PEERLESS MFG SITE MAP EXHIBIT B .I > - - - cn 04 D V ~N cQ ~ ;0N EL,VW A N a IS a oos - - I _ ~ ~ I f I Afib-7d (loo I I I o in CO oo, % z c~ cr aD ri YpFro IL Q 00P- I ` AO< m Q Q lt3 3 III _ W_ W__~ u) LM 3 11 I d -ZZ~ n 3 ing~~ti II I O O. Q 3 i~'as --"E°. a ~e~rimiC I~ II I ~Q CO W ='aa+°!e f°• r r r r II Il I W V W Q~'•_~~ 3 r rr Qc,c ~c~ II it U) -j aC 0 ,zcrw P) pcuz~" • II I Q.aWN r r M r OCl:d~ C~1i~N d "ca 2 11£'989 AgGIA490ON 96-0103 *ON 1SN 1 .t/. )001e "1 101 ` - ~ ~ Lt AGENDA INFORMATION SHEET AGENDA DATE: May 3, 2011 DEPARTMENT: Planning and Development/Community Development ACM: Fred Greene SUBJECT Hold a public hearing inviting citizens to comment on the City of Denton's 2011 Action Plan for Housing and Community Development. BACKGROUND On an annual basis, the City of Denton prepares an Action Plan for submission to the US Department of Housing and Urban Development (HUD). The Action Plan serves as the City's application for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs. The 30-day comment period and advertisement of the Action Plan review opportunities allows residents to comment on proposed activities and funding levels. The 2011 Action Plan comment period was advertised as April 8th through May 9th. Copies of the plan have been available for citizen review in the Community Development Division office in City Hall East, 601 E. Hickory, Suite B, and on the City's website. The 2011 Action Plan includes activities recommended for funding by the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). It also includes CDBG and HOME administration funding. Minutes from all CDAC and HSAC meetings are attached to the document. ESTIMATED PROJECT SCHEDULE Public comment period April 8 through May 9 Public Hearing May 'l CDAC & HSAC presentation to City Council May 17 Action Plan approval June 7 Submission of Action Plan to HUD June 15 HUD release of funds & program initiation August 1 PRIOR ACTION/REVIEW (Councils, Boards, Commissions) The Community Development Advisory Committee reviewed requests for housing and infrastructure improvements. The CDAC developed recommendations for $1,146,116* in funding to be allocated to various projects. The Human Services Advisory Committee reviewed requests for social services program funding. HSAC developed recommendations for use of both CDBG funds and City General Fund dollars. Though the list of General Fund recommendations is included in the 2011 Action Plan, the approval of the Plan does not include approval of those recommendations. General Fund recommendations will be considered during the normal budgeting cycle. HSAC recommended that $131,685* in CDBG funding be awarded to various social service programs. Agenda Information Sheet May 3, 2011 Page 2 *Please note that these amounts are estimates. The actual allocation amounts will be provided by the Department of Housing and Urban Development. Proposed activities may need to be revised if funding amounts vary from the staff estimates. FISCAL INFORMATION All projects and programs approved under the 2011 Action Plan are funded with CDBG and HOME funds and program income from the use of these funds. No General Fund dollars are included in the proposed Action Plan activities. However, some General Funds are used for program administration. EXHIBITS 1. CDAC Funding Recommendations Chart 2. HSAC Funding Recommendation Chart 3. 2011 Action Plan for Housing and Community Development Respectfully submitted: Mark Cunningham Director of Planning and Development Prepared by: Barbara Ross Community Development Administrator EXHIBIT 1 April 22, 2011 COMMUNITY DEVELOPMENT ADVISORY COMMITTEE FUNDING RECOMMENDATIONS FOR CDBG AND HOME FUNDS 2011/12 PROGRAM YEAR FUNDING CDBG HOME TOTAL 2011 APPLICATIONS REQUEST FUNDS FUNDS RECOMMENDED Denton Affordable Housing $85,000 $0 $100,000 $100,000 Clifton St. Sewer $60,500 $60,500 $0 $60,500 Morse St. Sewer $362,000 $362,000 $0 $362,000 Alexander Sewer $60,200 $0 $0 $0 Baldwin & Ramey Circle Water Line $168,500 $0 $0 $0 Duncan/Kerley Water & Sewer $371,000 $0 $0 $0 Egan St. Sidewalks $93,200 $0 $0 $0 Crescent Sidewalks $149,100 $0 $0 $0 Denton Christian Preschool $13,895 $0 $0 $0 Singing Oaks $568,000 $0 $0 $0 Home Improvement Program $405,985 $39,432 $366,553 $405,985 Homebuyer Assistance Program* $42,150 $50,000 $42,150 $92,150 Minor Repair Program $175,000 $125,481 $0 $125,481 TOTAL FUNDING RECOMMENDED $2,554,530 $637,413 $508,703 $1,146,116 TOTAL FUNDING AVAILABLE $637,413 $508,703 $1,146,116 UNPROGRAMMED FUNDS $0 $0 $0 Shaded requests are HOME eligible activities Note: * $50,000 in funding requested under the Minor Repair Program to renovate Homebuyer Assistance Program (HAP) housing units was transferred and added to the HAP funding recommendation. 2011-12 Human Services Advisory Committee Recommendations for Funding 2011-2012 2010-11 Fund Award ORGANIZATION Request Recommendation General Fund CDBG 1 Camp Summit 2,944 20,000 2,000 2,000 2 Court Appointed Special Advocates (CASA) 11,000 15,000 9,500 9,500 3 Children's Advocacy Center 9,833 100,000 10,000 10,000 4 City of Denton - PARKS - MLK Program 14,025 37,599.48 12,000 12,000 5 Communities in Schools 5,000 10,000 7,000 7,000 6 Day Stay for Adults 6,778 8,000 5,100 5,100 7 Denton Christian Preschool 22,056 22,500 22,056 22,056 8 Denton City County Day School 26,222 35,000 26,550 26,550 9 Denton County Friends of the Family 26,111 30,000 24,940 24,940 10 Family Health Care, Inc. 21,787 23,500 19,000 19,000 11 Fred Moore Nursery School, Inc. 23,556 23,721 23,556 23,556 12 Health Services of North Texas 22,394 47,500 21,990 21,990 13 HOPE, Inc. -Transitional Housing 21,889 23,000 20,930 14,725 6,205 14 HOPE, Inc. - HMIS 18,000 18,000 18,000 18,000 15 Knights of Light Charities 25,000 0 16 Retired Senior Volunteer Program 7,900 10,000 7,900 7,900 17 Special Programs for Aging Needs 22,167 25,000 21,000 21,000 Total HS Recommendations 261,662 473,820.48 251,522 119,837 131,685 Fair Share - Request Children's Advocacy Center 25,167 90,000 Did Not Request Funds for the year specified FUND 2010-11 2011-12 General Fund $115,345 $119,837 C.D.B.G. $146,317 $131,685 Total $261,662 $251,522 3/8/11 2011-12 Estimated City of Denton T DRAFT Action Plan for Housing and Community Development 2011 Program Year Pa Housing Park Facilities r r r,Public Improvements Human Services Prepared for the U. S. Dept. of Housing and Urban Development To be approved by Denton City Council in May 2011 To be submitted to the U. S. Department of Housing and Urban Development in June 2011 www.cityofdenton.com ADA/EOE/ADEA TABLE OF CONTENTS A. Executive Summary of Action Plan 1. Introduction ..............................................................................................................1 2. Funding Summary ....................................................................................................2 3. Local Match .............................................................................................................4 4. Citizen Participation .................................................................................................4 5. Amendments 5 6. Evaluation of Past Performance 5 B. Projects/Activities 1. Summary ..................................................................................................................7 2. CDBG and HOME Proposed Projects .......................................................................8 3. Other Resources Available .....................................................................................16 C. CP Strategies and Proposed Projects 1. Housing Strategies ..................................................................................................17 2. Continuum of Care Strategies .................................................................................18 3. Lead-Based Paint Strategies ...................................................................................20 4. Human Services Strategies .....................................................................................20 5. Infrastructure & Public Facilities Strategies 22 6. Demolition Strategies 22 7. Anti-Poverty & Economic Development Strategies ................................................22 8. Barriers to Affordable Housing ...............................................................................23 D. Proposed Project Map ..................................................................................................24 E. Other Program Requirements 1. HOME - Forms of Investment ...............................................................................25 2. Monitoring Standards and Procedures ....................................................................25 3. Public Housing Improvements ................................................................................26 4. Public Housing Resident Initiatives ........................................................................26 5. Institutional Structure 26 6. Chronic Homelessness ............................................................................................27 7. HOME - Minority Outreach Program .....................................................................28 F. Community Development Minutes 1. Minutes from Public Hearings 29 2. 30-day Comment Period .........................................................................................31 3. Human Services Advisory Committee Minutes ......................................................32 4. Community Development Advisory Committee Minutes ........................................51 G. Appendix 1. SF 424 Application for CDBG Grant ......................................................................67 2. SF 424 Application for HOME Grant 68 3. Certifications for CDBG and HOME 69 4. Table: Annual Housing Completion Goals .............................................................78 EXECUTIVE SUMMARY INTRODUCTION This document serves as the City of Denton's 2011 Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs. In accordance with 24 CFR Part 91.220 of Title I of the Housing and Community Development Act of 1974, as amended, the City of Denton is required to submit a One-Year Action Plan to the U. S. Department of Housing and Urban Development. The plan outlines the specific projects and services that will be funded during the 2011 program year to address Denton's strategies stated in the 2010-2014 Consolidated Plan for Housing and Community Development. The following five-year strategies were identified in 2005 year and are reaffirmed this year: ■ Housing Strategies: Assistance to Renters, Owners, and Homebuyers and the Production of Affordable Units; ■ Continuum of Care Strategies: Prevention Homelessness, Outreach and Assessment, Emergency Shelter, Transitional Housing and Transition to Permanent Housing and Independent Living; ■ Lead-Based Paint Strategies: Education and Reduction of Lead-Based Paint Hazardous to Owners and Homebuyers; ■ Human Services Strategies: Improve availability and accessibility of basic food, emergency shelter, transitional housing, services promoting strong, supportive relationships for families, and basic health care and mental health services. ■ Infrastructure Improvement Strategies: Improvements to Streets, Sidewalks and Water/Sewer lines, Drainage Improvements, Rehabilitation and Expansion of Public Facilities, Park Improvements and Demolition of Substandard Strictures; ■ Anti-Poverty & Economic Development Strategy: Support Training and Employment Activities, Expand Education Opportunities, Support of Section 3 goals, and Support of Start-up and expansion industry. Page 1 FUNDING SUMMARY The City of Denton is currently an entitlement city for the Community Development Block Grant (CDBG) and a participating jurisdiction for the HOME Investment Partnership (HOME) Programs. SF-424 applications for CDBG and HOME are available in the appendix page 67 through 68. The table below shows the estimated federal funding available from the U. S. Department of HUD for the 2011/12 program year. The table below also indicates the amount of CDBG and HOME fiends that will benefit low and moderate income persons. FUNDING SUMMARY 2011/12 Program year U. S. Department of Housing and Urban Development CDBG HOME TOTAL Entitlement Grant - Estimate $877,903 $520,226 $1,398,129 Reprogrammed Prior Years' Funds $58,776 $0 $0 Estimated Program Income $10,000 $45,000 $54,000 Total Funding Sources from HUD $946,679 $565,226 $1,511,905 Benefit to Low & Moderate Income Persons or Households $769,098 $508,703 $1,277,801 The City of Denton and subrecipients also receives many other federal, state, local and private funds during the 2011-12 Program Year to address priority needs and specific objectives identified in the City of Denton Consolidated Plan. A total of $11,350,969 in additional resources are proposed for the 2011/12 program year. A list of resources available to the City of Denton can be found on the next page and includes local, state and federal resources. Page 2 I~ O Lo LO O O O) Lo O O co O CO (D N (D C) O) O cc) O cc) lf) O 't Lo O O O 6) O Lo Lo 't cc) O O CO J N O O O) M LO cc) O O 6) N O) N CO LO O) O O C) O) Q Q r- N cc) 't LO N O I-- O CO o Lo N I-- L CO r-- CO 6) Lo N N I-- O F Z r) M c) c) O O) CO CO cc) cc) 6) cc) cc) N O r-- CO CO Lo Lo 0 =D Gl3 N 't Ef3 Ef3 CO C) Ef3 'd 'd c:) ea 'd Lo O EL> co N r-_ co LL _ _ Ef3 EL> Ef3 EL> Ef3 EL> Ef3 EL> N Ef3 Ef3 EL> Ef3 EL> E; EA Ef3 EL> ELJ ll.l LO N O O O O L. ~ ~ ~ LO O O O O LC) O) M O F y LO O lf) LC) O LC) LC) CO O CO Z CEO r-- O ~ ~ CEO O M L~f) N ~ Q C) Ef3 CO N LO N cc) LL Ef3 EL> Ef3 EL> Ef3 EL> Ef3 EL> N ELJ O 't CO N LO O Cl) Lo O O O O O O CO CO N 't 6) N LO Cl) I-- LO O O N O O Cl) 6) O CO r-- 6) CO Cl) LO I-- O cc) O O 6) N s O Lf) Cl) 't 6) M C) ~ N LO LO Cl) 6) Q O o) O co Lo N O I~ 64 N lf) ~o cc) Z N M EA Ef3 C) 't C) Ef3 M Ef3 ELJ EA Lo Gr> ea ea ea ea ea ea co u- V HJ J V O O Lo O O O CO O CO Lo N m O O O co O O O LO O LO N N 0 -O O O O O O O O Lo I- Lo J C N Lf) CO I-- L~2 lf) N Cb co 't co N EA co cN EA EA EA ~ EA ~ EA ea Z I-_ ' co Lo O O O O co m O N O Cl) C) 't ~ 't LO ID ID ID O O CEO G) cc) L Lf) Lf) I- C) CO 't N O 6) cc) V/ Q LO LO CO CO r-- N N O Gr> Ef3 Ef3 EL> Ef3 EL> Ef3 ~ EA EA Ef3 Q y Z -O O ID cN N Lf) LO Lf LL U 't 6) Cl) G) cc) cc) Lu cc) ID G) LLI a G' ~ 6, Z ~ F N C M M LO LO G^ Co Co ~ H 1..~ ♦I.L V Cl) Cl) O Lf O LO Cl) M O CEO G) W a N LO - Cl) N I-- N L CO C) CO CO 't C-4 ~ O EA MELJ EA EA EA EA ~ W r 0 O O O N O O o O ° M 0 ea ~ b~A Z O C= N y ° ° O O G a Z CC LL ~ O 0 J U cn ¢ co co o w Qw UO Lo o o Lo u- > Gl3 Er-- co A co Z ea 69 O ♦♦W~ co co O O CO v! ~ LL J LLo O N W a ea ea ea e O O N O O O O O O lf) O O m Ur O co O O Lo 't O m O O O r-- LL m O Lo O Lo Lo m O m N O O CO O N I- O O O CO ~ 6) CO N CO I~ N - CO N N N ea CO N U E» ea ea Gl3 GlJ Gl3 E» Ef3 Cl) Ef3 rn H> Ef3 U E > > a) a) N N O = O > N N N N N N N N N N > N N U U U U U U U U o U U .0.0.0. o .0200 LL Q- 6- `O j n m m m ~ m m m ~ m m m Co- Co- m m m Co- Co- Co- m m CL V o o o - O o o o o o o o O O O o O O o O O F Q (A N N m L L L (A Q (A N L N N N N N N N N N N U C m m Z5 U - N O O O d > U o m o m Q o -o 0 LL 2 C E L6 E N Q C o co d N N E - U E N O No o O O (O`n O U Q co Y 8_ L Q O = O Z m W m co u) W _ o -o m o a~ U cn cC > E Z a E 0 0 0 0 o cn ¢ -o o v `o_ m O LL ¢ o m a~ Z ~ O U 'L cl~ ol m ¢ U U U U = oo n n O n Q -o W Q Q 0 5 0 0 o E in o 0 0 0 0 - w a) E E °_E m- Z U U U U U U U U U U 0 0 Li Q = Lo O LOCAL MATCH The HOME program requires a participating jurisdiction to provide a 25% match of the federal HOMEfunds. The City of Denton's local match for the HOME program is $115,925.75. The 25% match of federal HOME funds excludes administrative allowances of 10% and CHDO operating expenses. The City of Denton will provide the match from a variety of sources including the following: 1. Denton County Housing Finance Corporation and other non-federal funding awarded to Denton Affordable Housing Corporation and City of Denton. 2. City of Denton Impact Fee Grant Awards used to pay required impact fees on HOME eligible projects. CITIZEN PARTICIPATION To ensure citizen participation in the 2011 Action Plan process including the substantial amendment to the 2006 and 2010 Action Plan, the city followed its Citizen Participation Plan at all stages of the plan and amendment. Public hearings were held December 6th and 13th, 2010. Spanish translations were provided at both public hearings. The public hearings updated citizens on the status of current programs and activities and asked the citizens how they felt the 2011 fiends should be spent. Both of the public hearings were held within a low and moderate-income neighborhood. See page 29 for minutes of both public hearings. Information on the public hearings was included in the Community Development Quarterly Newsletter. The Community Development Quarterly Newsletter is was mailed or e-mailed to neighborhood associations; recreation centers and libraries; service agencies and beneficiaries; city council, Human Services Committee (HSC) and Community Development Advisory Committee (CDAC) members; churches; applicants; contractors; participating lenders; Realtors; employees; citizens who attended previous public hearings; and interested citizens. The newsletter which is in Spanish and English is available for pickup or viewing at all recreation centers, libraries, and the City of Denton's website. Flyers were also sent to the elementaries in low income neighborhoods to be included in their packets to parents. A notice was also placed in the Denton Record-Chronicle. After the Action Plan was drafted, advertisements were placed in the Denton Record-Chronicle summarizing the plan and announcing to the public where the Action Plan would be available for review, and the process for submitting comments to the City of Denton. The draft Action Plan was available at the Community Development Department and on the City of Denton's web page. The advertisements also included information on the upcoming public hearing. An ad was also placed in the quarterly Community Development Newsletter. All comments received from the public were addressed before submitting the plan to the U. S. Department of Housing and Urban Development. Comments received during the 30-day comment period will be included in the Action Plan. To ensure citizen participation at all stages of the 2011 Action Plan process, a public hearing will be scheduled on May 3, 2011 during a City Council Meeting to give citizens the opportunity to comment on the 2011 proposed projects and activities. See page 29 for minutes of the public hearing. Page 4 AMENDMENTS The City of Denton is amending the 2006 Action Plan to reallocate $23,000 in HOME fiends to a new activity. In 2006 HOME fiends were allocated to the Denton Affordable Housing Corporation to rehabilitee affordable housing units owned by DAHC. A total of $23,000 from these fiends will be reallocated from the rental rehabilitation program to operating costs. The City of Denton is also amending the 2010 Action Plan to reallocate $7,013 in CDBG fiends to an existing activity. In 2010 CDBG fiends were allocated to the Owsley Summer Program, however, the program was eliminated due to budget cuts and issues with attendance. A total of $7,013 will be reallocated to the MILK Sumner program for the 2011 summer program. EVALUATION OF PAST PERFORMANCE The 2009-2010 year began with an effort by the City of Denton to access American Recovery and Reinvestment Act (ARRA) funding for important projects and to assist in job creation and retention. As a result of these efforts, the City was allocated approximately $3 million in ARRA funding. CDBG-R funding in the amount of $232,917 was available to assist with projects and programs benefitting low and moderate-income households and neighborhoods. Economic issues continue to have some negative effects on the City's Community Development activities. Though it appeared that the construction industiv was slowing down, prices for work completed on rehabilitation and reconstruction projects continues to increase. Decreasing CDBG and HOME funds have limited the number of units that could be assisted. Homebuver activitv continues at a normal level. Earlier in the year, with provision of the tax credits for homebuyers, the number of households requesting assistance peaked. Denton made significant progress toward meeting the 2005- 2009 Consolidated Plan for Housing and Community Development goals in the Home Improvement (HIP) and Homebuyer Assistance (HAP) programs. Staff continues to seek out additional funding sources. The City made application to the Denton County Housing Finance Corporation but was denied funding. Federal Home Loan Bank funds have been used over the past year to supplement both HIP and HAP. These programs, along with the City's Minor Repair Program continue to support the revitalization of older neighborhoods. Though these programs continue to be successful, recent funding cuts and economic issues have contributed to the fact that some five-year goals, stated in the Consolidated Plan, were not met. Continuum of Care activities continue to be successful. The strength and focus of the Denton County Homeless Coalition has supported annual awards of Emergency Shelter Grant funds from the State of Texas and Supportive Housing Program funding from HUD. As in past years, these funds are used by local agencies to meet the needs of homeless and potentially homeless individuals and families. Over the five-year period, five agencies participated in a collaboration that has been supported by the State's ESG program. Activities include homeless prevention, provision of essential services and payment of operating and maintenance costs for shelters. SHP funding continues to support the Homeless Management Information System for the Denton County Homeless Coalition. During the next two, Homeless Prevention and Rapid Re-Housing funds will be used to support similar activities throughout the Countv. It is evident from the number and range of public service activities supported by the City of Denton that this is a very important focus of Federal and local support. The City of Denton has a very strong net'kvork of local agencies that have been serving the community for decades. Health care remains a priority. The non-profit People's Clinic is no longer providing indigent care services. As a result of the loss of this agency, Health Services of North Texas (formerly AIDS Services) has stepped up and will begin providing some of the services previously provided by the People's Clinic. The City of Denton continues to support childcare for low-income families, services for the elderly and households affected by AIDS. Page 5 Several public improvement projects have been completed during the five-year period. One exception is that no drainage projects were funded during the current Consolidated Plan period. DrawdOwn of grant funding is completed on a monthly basis. Community Development expenditure records are reconciled Nvith those of the Accounting Department prior to any drawdoN-,n of funds. As a result of this reconciliation process and the time lapse between actual expenditure of funding and drawdoN-,n of Federal funding to cover expenditures, the City of Denton has never draN-,n doN-,n funds prior to the expenditure. Denton is ahvays compliant with U.S. Treasury and U.S. Department of Housing and Urban Development drawdoN-,n requirements. Though some housing goals were not met, Community Development staff feels that the activities carried out and the successful collaborative efforts, have provided high level services for those in need in the Denton community and Denton County. CD staff Nvill continue working Nvith other housing organizations to increase capacity and seek out additional funding sources. The fact that many outcome measures exceeded the goals targeted in the Consolidated Plan would indicate success in serving the Denton community through these programs. Affordable housing, social services, neighborhood revitalization through housing improvements and public facility improvements Nvill continue to be important focus areas for Denton Community Development. Strong collaborative efforts among the local service and housing organizations along Nvith support from the cities of Denton and Lewisville, continue to expand opportunities for low-income individuals and households in an effort to help them reach self-sufficiency. Page 6 2011 PROJECTS/ACTIVITIES SUMMARY The City of Denton's estimated total federal and program income funding for 2011 is $1,511,905 (includes $58,776 of Reprogrammed Funds). Program fiends have been allocated to an array of projects and activities to benefit low and moderate-income households. A total of 84.53% of all CDBG and HOME fiends has been allocated to low and moderate income activities not including administration activities. Each project is described in detail from pages 8 to 15 and is arranged by alphabetically order. See the following list of CDBG and HOME proposed projects and activities for their assigned page number: National CDBG HOME Page 4 Project Name Objective* Funds Funds 8 CDBG Administration N/A $177,581 8 City of Denton - PARD - MEK Program LMC $12,000 9 Clifton St. Sewer LMA $60,500 9 Denton Affordable Housing LMH $100,000 10 Denton City County Day School LMC $26,550 10 Denton County Friends of the Family LMC $24,940 11 Family Health Care, Inc. LMC $19,000 11 Health Services of North Texas LMC $21,990 12 HOME Administration N/A $56,523 12 Home Improvement Program LMH $39,432 $366,553 13 Homebu er Assistance Program LMH $50,000 $42,150 13 HOPE, Inc. LMC $6,205 14 Minor Repair Program LMH $125,481 14 Morse St. Sewer LMA $362,000 15 Special Programs for Aging Needs LMC $21,000 Total Funding Allocated to Projects $1,511,905 $946,679 $565,226 Funding Available $1,511,905 $946,679 $565,226 Balance of Funds $0 $0 $0 Total for Low and Moderate Activities $1,277,801 769,098 508,703 Percentage of Low and Moderate Income Activities 84.5% 81.2% 90.0% Page 7 PROJECT DESCRIPTIONS The following are descriptions of projects and activities that will be funded during the 2011 program year with CDBG and HOME funds: CDBG ADMINSTRATION CDBG funds will be used for program management, coordination, monitoring and evaluation associated with carrying out eligible activities. Funds will also be utilized to continue City's efforts in fair housing. The program will be carried out by the City's Community Development Department. Funding includes $2,000 in proposed CDBG program income. HUD Matrix Code: 21A General Program Administration 570.206 Objectives: Eligibility: 570.208(a)(2) Low/Mod Limited Clientele ❑ Suitable Living Environment ❑ Decent Housing Priority Need: Planning & Administration ❑ Creating Economic Specific Objective: N/A Opportunities Outcomes: Specific Outcomes: N/A ❑ Availability/Accessibility Project Goals: N/A ❑ Affordability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $177,581 Location: Communitv Wide HOME $0 Start Date 08/01/11 Other Sources $125,291 Completion Date 07/31/12 Total $346,106 Page 8 CITY OF DENTON - MLK SUMMER PROGRAM Provision of a summer day program targeted to youth in Southeast Denton. Funds will be used to provide scholarships for low-income participants. Program will be carried out by the City's Parks and Recreation Department. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service 56 people ❑ Affordability Project Goals: 56 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $12,000 Location: 1300 Wilson St., Denton Texas HOME $0 Start Date 06/01/12 Other Sources $0 Completion Date 08/31/12 Total $12,000 CLIFTON STREET SEWER LINE REPLACEMENT Replacement of an existing 6" sewer line on Clifton Street from Simmons to Chambers Street. The replacement will require a new 8" sewer line and manholes for approximately 420 feet. The new line will be constructed and placed in the street. The existing sewer line is substandard in size, has met the life expectancy with significant age deterioration, is in a state of disrepair and has had a number of service issues with sewer line chokes. The project is located in a low and moderate income census tract that has a total of 2,192 people. The project will be carried out by the City's Engineering Department. HUD Matrix Code: 0317 Water/SeNver Improvements 570.201(c) Objectives: Eligibility: 570.208(a)(1) - Low/Mod Area ® Suitable Living Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Specific Objective: Improve quality/increase quantity of public Opportunities improvements for low income persons. Specific Outcomes Number of persons assisted where activity kvas used Outcomes: Indicators: to meet a measurable improvement of quality. - ® Availability/Accessibility 2,192 people ❑ Affordability Project Goals: 2,192 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $60,500 Location: CT 21200/BG 2 - 72.72% LM HOME 0 Start Date 10/01/11 Other Sources 0 Completion Date 11/30/12 Total $60,500 Page 9 DAHC - AFFORDABLE HOUSING CORP Rehabilitation of affordable rental units in Denton for special needs populations. Funds Nvill be utilized for the actual cost of rehabilitation of rental units. This project also consists of $21,967 for operating expenses of the agency. Program Nvill be carried out by the Denton Affordable Housing Corporation a certified Community Housing Development Organization (CHDO). HUD Matrix 14B Rehab; Multi-Unit Residential Buildings 570.202 Objectives: Code: ❑ Suitable Living Environment Eligibility: 570.208(a)(3) - Low/Mod Housing ® Decent Housing Priority Need: Rental Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of affordable rental housing. Outcomes: Specific Outcomes Number of households assisted Nvith standard ❑ Availability/Accessibility Indicators: affordable housing units. - l lhouseholds/housing units ❑ Affordability Project Goals: I I hou seholds/hou sing units ® Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: CHDO 92.2 CDBG 0 Location: Communitv Wide HOME $100,000 Start Date 10/01/2011 Other Sources 0 Completion Date 09/30/2012 Total $100,000 DENTON CITY COUNTY DAY SCHOOL Provision of childcare services for low income children between the ages of 2 years and 5 years. Funds Nvill be utilized to pay for teacher's salaries. The school provides affordable day care on a sliding scale. Project Nvill be carried out b the Cit 's Community Development Department and Denton City County Day School. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted Nvith improved access to ❑ Availability/Accessibility Indicators: a service - 190 persons ® Affordability Project Goals: 190 People ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $26,550 Location: 1603 Paislev Street, Denton Texas 76209 HOME $0 Start Date 10/01/11 Other Sources $4701650 Completion Date 09/30/12 Total $497,200 Page 10 DENTON COUNTY FRIENDS OF THE FAMILY Provision of counseling services, crisis assistance and emergency shelter for family members impacted by domestic violence and/or sexual assault. Funds Nvill be utilized to pay direct services for victims of domestic violence. Program Nvill be carried out by the Denton County Friends of the Family. HUD Matrix Code: 05G Battered and Abused Spouses 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Homeless ❑ Creating Economic Opportunities Specific Objective: Provide emergency services for homeless persons. Outcomes: Specific Outcomes Number of persons assisted Nvith improved access to ® Availability/Accessibility Indicators: a service - 6,097 persons ❑ Affordability Project Goals: 6,097 People ❑ Sustainability Primary Purpose: ® Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $24,940 Location: Confidential HOME $0 Start Date 10/01/2011 Other Sources $1,990,251 Completion Date 09/30/2012 Total $2,015,191 FAMILY HEALTH CARE Provision of a prenatal clinic aiding Nvomen who are Nvithout private insurance or Medicaid. Funds Nvill be used to procure services for non-Medicaid eligible, low-income pregnant women. Program Nvill be carried out by Family Health Care, Inc. HUD Matrix Code: 05M Health Services 570.201 (e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment Priority Need: Public Services ❑ Decent Housing ❑ Creating Economic Specific Objective: Improve the services for low/moderate income Opportunities persons. Outcomes: Specific Outcomes Number of persons assisted Nvith improved access to ® Availability/Accessibility Indicators: a service - 293 persons ❑ Affordability Project Goals: 293 People ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $19,000 Location: 3537 South I-35E, Suite 210, Denton 76210 HOME $0 Start Date 10/01/2011 Other Sources $468,250 Completion Date 09/30/2012 Total $487,250 Page 11 HEALTH SERVICES OF NORTH TEXAS Provision of food and medical care to individuals and families impacted by AIDS/HIV and medical assistance to underserved, low-income, and uninsured residents of the city of Denton. Funds will be used to buy food, hygiene products and medical care for non-HIV related infections and chronic diseases. Additional funding will be used for the salary of a pharmaceutical assistance program - coordinators salary, medical care, diagnostic tests, laboratory tests, medication and durable medical supplies for low-income residents of the city of Denton. Program will be carried out by Health Services of North Texas. HUD Matrix Code: 05 Public Services (General) 570.201(e) Objectives: ® Suitable Living Environment Eligibility: 570.208(a)(2) Low/Mod Limited Clientele ❑ Decent Housing Priority Need: Non-Homeless Special Needs ❑ Creating Economic Specific Objective: Improve the services for loNv/moderate income Opportunities persons. Outcomes: Number of persons assisted with improved access to ® Availability/Accessibility Specific Outcomes: a service - 1,500 persons ❑ Affordability Project Goals: 1,500 People ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $21,990 Location: 4210 Mesa Drive, Denton Texas 76207 HOME $0 Start Date 10/1/2011 Other Sources $987,550 Completion Date 9/30/2012 Total $1,009,540 HOME ADMINSTRATION HOME funds will be used for salaries associated with carrying out HOME projects by the City's Community Development Department. Funding includes $4,500 in HOME Program Income. HUD Matrix Code: 21H HOME Admin/Planning Costs of PJ (subject to Objectives: 10 /o) 92.207 (a) ❑ Suitable Living Environment Eligibility: N/A ❑ Decent Housing Priority Need: Planning & Administration ❑ Creating Economic Opportunities Specific Objective: N/A Outcomes: Specific Outcomes N/A ❑ Availability/Accessibility Indicators: ❑ Affordability Project Goals: N/A ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $ Location: Communitv Wide HOME $56,523 Start Date 08/01/2011 Other Sources $0 Completion Date 07/31/2012 Total $56,523 Page 12 HOME IMPROVEMENT PROGRAM Rehabilitation of ovrier-occupied structures in targeted neighborhoods. Funds are available in low interest loan and grant combinations. Homes that are not suitable for rehabilitation are demolished and reconstructed. Funding also includes estimated program income for HOME ($40,500) and CDBG ($8,000). Program Nvill be carried out by the City's Community Development Division. HUD Matrix Code: 14A Rehab; Single-Unit Residential 570.202 Objectives: ❑ Suitable Living Environment Eligibility: 570.208(a)(3) - Low/Mod Housing ® Decent Housing Priority Need: ON-mer-occupied Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of ovrier-occupied housing. Outcomes: Specific Outcomes Number of units brought from substandard to ❑ Availability/Accessibility Indicators: standard condition - 11 housing units ® Affordability Project Goals: 11 housing units ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $39,432 Location: Communitv Wide HOME $366,553 Start Date 10/01/2011 Other Sources 0 Completion Date 7/31/2012 Total $405,985 HOMEBUYER ASSISTANCE PROGRAM The Homebuyer Assistance Program is designed to provide homeov'mership opportunities for low and moderate-income families who live in Denton. The program provides down payment, closing costs and gap assistance in the form of a forgivable loan. HOME funds are utilized to assist Nvith down payment closing costs assistance. A total of $50,000 Nvill be available to assist first-time homebuyer Nvith program required repairs. The funds for repairs Nvill be available as a grant. It is anticipated that 12 of the first time homebuyers will be minority households. Program carried out by the City's Community Development Division. 13 Direct Homeovriership Assistance 570.202 HUD Matrix Code: 14A Rehab; Single-Unit Residential 570.202 Objectives: ❑ Suitable Living Environment Eligibility: 570.208(a)(3) - Low/Mod Housing ® Decent Housing Priority Need: ON-mer-occupied Housing ❑ Creating Economic Opportunities Specific Objective: Increase availability of affordable ovrier housing. Specific Outcomes Number of first-time homebuyers - 25 households Outcomes: Indicators: Number receiving dovri-payment assistance/closing ❑ Availability/Accessibility costs - 25 households ® Affordability Project Goals: 25 households ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $50,000 Location: Communitv Wide HOME $42,150 Start Date 8/1/2011 Other Sources 0 Completion Date 7/31/2012 Total $92,150 Page 13 HOPE, INC. Provision of financial assistance and case management to families who are homeless or at risk to be homeless and seeking to secure, stable, permanent housing. Funds will be used to assist the homeless and potentially homeless families with rent, utility, food, and childcare needs and partial salary for the program case manager. Program will be carried out by HOPE, Inc. HUD Matrix Code: 05 Public Services (General) 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 40 persons ❑ Affordability Project Goals: 40 People ❑ Sustainability Primary Purpose: ® Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $6,205 Location: 117 West Sycamore, Denton, TX 76201 HOME $0 Start Date 10/01/2011 Other Sources $69,777 Completion Date 09/30/2010 Total $75,982 MINOR REPAIR PROGRAM Program serves low-income homeowners by providing a grant of up to $5,000 for repairs. Repair cannot be covered by homeowner's insurance. Program carried out by the City's Community Development Division. HUD Matrix Code: 14A Rehab; Single-Unit Residential 570.202 Objectives: Eligibility: 570.208(a)(3) - Low/Mod Housing ❑ Suitable Living Environment ® Decent Housing Priority Need: ON-mer-occupied Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of owner housing. Outcomes: Specific Outcomes Number of units occupied by elderly - 35 ® Availability/Accessibility Indicators: Number of units made accessible - 5 ❑ Affordability Project Goals: 35 housing units ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $125,481 Location: Communitv Wide HOME 0 Start Date 08/01/2011 Other Sources 0 Completion Date 7/31/2012 Total $125,481 Page 14 MORSE STREET SEWER LINE REPLACEMENT Replacement of an existing 6" sewer line and water line on Morse Street from Bushey to Newton Streets. The project would require a new 8" sewer line and manholes for approximately 1,300 feet. The water line replacement would require a new 12" water line and valves for approximately 1,300 feet. Both of the new lines would be constructed and placed in the street. The existing sewer line is substandard in size, has met the life expectancy with significant age deterioration, is in a state of disrepair and has had a number of service issues with sewer line chokes. The existing water line has had 30 breaks. The project is located in a low and moderate income census tract that has a total of 2,192 people. The project will be carried out by the City's Engineering Department. HUD Matrix Code: 0317 Water/SeNver Improvements 570.201(c) Objectives: Eligibility: 570.208(a)(1) - Low/Mod Area ® Suitable Living Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Specific Objective: prove quality/increase quantity of public Opportunities improvements for low income persons. Specific Outcomes Number of persons assisted where activity kvas used to Outcomes: Indicators: meet a measurable improvement of quality. ® Availability/Accessibility ❑ Affordability Project Goals: 2,192 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $362,000 Location: CT 21200/BG 2 - 72.72% LM HOME 0 Start Date 10/01/11 Other Sources 0 Completion Date 11/30/12 Total $362,000 SPAN, INC. (SERVICES PROGRAMS FOR AGING NEEDS) Provision of congregate and home-delivered meals to the elderly. Funds will be used to buy meals. SPAN provides meals, primarily to elderly Denton residents or to persons sixty years or older. Home meals are specifically provided to home-bound persons. Congregate meals are provided at two local senior centers. Of the meals provided by SPAN, Inc., 16% are congregate meals and 84% are home-delivered meals. Program will be carried out by SPAN. HUD Matrix Code: 05A Senior Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Non-housing special needs ❑ Creating Economic Specific Objective: Improve the services for loNv/moderate income persons. Opportunities Outcomes: Specific Outcomes Number of persons assisted with improved access to a ® Availability/Accessibility Indicators: service - 400 persons ❑ Affordability Project Goals: 400 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding. Subreci Tent: Private 570.500(c) CDBG $21,000 Location: 1800 Malone Street, Denton, Texas 76201 HOME $0 Start Date 10/01/2011 Other Sources $736,303 Completion Date 09/30/2012 Total $757,303 Page 15 OTHER RESOURCES AVAILABLE GENERAL FUNDS Also, during the 2011 program year, the City of Denton plans to undertake additional activities/programs to address local objectives and strategies using City of Denton General Fund dollars. The Human Services Advisory Committee has recommended funding the following human services programs. It is recommended that these activities be funded through Denton's general fund budget. City Council will consider approval of the following recommendations in September 2011. Category / Agency General Other Total Funds Funds Funds Aging Services Day Stay for Adults - 16 people $5,100 $312,955 $318,055 RSVP - 589 people $7,900 $254,171 $262,071 Emergency Services Denton County HMIS - N/A $18,000 $68,908 $86,908 HOPE, Inc. - reported in CDBG $14,725 $61,257 $75,982 Da Care /After School Care Denton Christian Preschool - 62 people $22,056 $468,845 $482,901 Fred Moore Day Nursery - 105 people $23,556 $503,100 $526,656 Child/Family Services CASA - 228 people $9,500 $657,349 $666,849 Children's Advocacy Center - 300 people $10,000 $1,122,000 $1,132,000 Communities in School - 380 people $7,000 $170,341 $177,341 Other Services Camp Summit - 30 people $2,000 $1,435,417 $1,437,417 Total $119,837 $5,054343 $5,174,180 Page 16 STRATEGIES & PROPOSED PROJECTS The City of Denton's 2011 funding has been allocated to programs and activities that meet objectives stated in Denton's five-year strategic plan. Following is the list of the five-year strategies and proposed outcomes stated in the 2010-14 Consolidated Plan and proposed projects and activities that will be undertaken to meet those strategies. Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy RENTAL HOUSING STRATEGIES H-3.1 Encourage and support An addition of 150 Provide support for developments meeting this Sustainability of he development of affordable units in mixed strategy. Decent Housing mall mixed-income income developments with rental developments in 50 units or less would assist accessible areas. in meeting this outcome measure. H-2.1 Encourage self- Self sufficiency programs ork with and provide funding when appropriate ffordability of sufficiency among will target households to support transitional housing and self- Decent Housing households that receiving rental assistance sufficiency programs administered by Denton currently receive rental and other forms of public Housing Authority and HOPE, Inc. and other subsidies and other assistance. Create housing local organizations. forms of public ffordability for 3 to 5 support. households per year. H-1.1 Encourage and support Support repairs or Work with Code Enforcement Division and local vailability/ he rehabilitation of rehabilitation of 5 to 10 rental property owners to identify and support Accessibility of substandard units. units per year. rehabilitation of substandard units. Decent Housing H-2.2 Encourage and assist Approximately 150 renters Continue supporting the City's Homebuyer ffordability of ow-income renters to will be assisted. Assistance Program, DAHC's Affordable Decent Housing become homeowners. Housing Opportunity Program, DAHC's Infill New Construction Program and Nevada Court Project, Denton Housing Authority's Family Self SufficiencN- Program and Habitat for Humanitti-. H-1.2 Target programs and our newsletters per year Disseminate program information in Spanish and vailability/ information to will be sent out. Additional English to organizations seiving these groups. Accessibility of minorities and the information will appear on Decent Housing lderK. able chaimel. OWNER-OCCUPIED HOUSING STRATEGIES H-2.3 Educate homeowners Information will be provided 11 households will be provided successfiul ffordability of regarding home to 8-10 households per year. homeowner education. Decent Housing maintenance and budgeting for major and minor repairs and safe cleaning practices. H-2. Assist low and Provide minor repairs to Funding of the Minor Repair Program for a ffordability of moderate-income approximately 100 very low minimum of 35households. Decent Housing households with to moderate-income minor housing repairs homeowners. nd weatherization. Page 17 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy H-3.2 Encourage and assist Assistance to 20 to 35 Funding of the Home Improvement Program for Sustainability of ow and moderate- households. It is anticipated 11 households. Decent Housing income homeowners that 25%-35% of the annual to maintain their units allocation will be dedicated to up to current City of his targeted area. Denton code standards in targeted areas. HOMEOWNERSHIP & PRODUCTION OF AFFORDABLE UNITS H-2.5 Educate homebuyers Information will be provided Support of HUD approved homeowner-ship Affordability of regarding home to 100 prospective workshops by local agencies and lenders Decent Housing buying process and homebuyers. household budgeting. H-2.6 Encourage and assist Approximately 100 renters Support the City of Denton's Homebuyer Affordability of ow and moderate will be assisted. Assistance Program and DAHC's Affordable Decent Housing income renters to Housing Opportunity Program with residual become homeowners. Inds. It is anticipated that 35% to 50% will be minority households. H-2.7 Support production of Construction of an estimated Support of DAHC and City's Infill New Affordability of ffordable units. 50 new units. Construction Program and DAHC and Habitat for Decent Housing Humanity's New Construction Program. CONTINUUM OF CARE - PREVENTING HOMELESSNESS H-2.8 Provide assistance for 1) Support a minimum of la) Support and refer persons to local business Affordability of ow-income 100 units of individual and agency's' First Time Homebuyer classes Decent Housing households to secure and group counseling and and Credit Counseling Classes and sustain safe, educational opportunities lb) Provide fiunding to HOPE, Inc in support of decent affordable concerning securing and programs housing maintaining a home. a) Provide adnninistrative support and fiends including 2b) Continue to support the Tenant Support 750 individual/ Based Rental Assistance from HOME fiords family units of seivices to to the Elderly and Disabled to maintain secure and maintain independent living and to prevent housing including homelessness. prevention of foreclosure and eviction a year. CONTINUUM OF CARE - OUTREACH AND ASSESSMENT SL-1.1 Improve community 1) Continue implementation 1) Provide fiends to the Denton County vailability/ assessment of needs of HMIS. Increase data Homeless Management Information System Accessibility- of and seivices available sharing and number of to enroll and support homeless seivice Suitable Living participants. At least 3 - agencies. Environment 5 agencies should ) Assist the Denton County Homeless participate in data sharing. Coalition to organize a tasldorce to create Support development of a and implement a plan to in Chronic county-wide, coordinated Homelessness including a coordinated Discharge Policy and Plan discharge policy. to End Chronic Homelessness in two years. Page 18 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy CONTINUUM OF CARE - EMERGENCY SHELTER H-1.3 Meet the emergency 1) Support at least 1,000 1) Provide fiands to the Denton County Friends vailability/ shelter and basic emergency shelter nights of the Family Safe Shelter. Accessibility of health, food, clothing, of stay a year. 2a) Support local agency with application to Decent Housing and personal hygiene ) Assist local agencies to Emergency Solutions Grant, Supportive heeds of the homeless apply for at least three Housing Program. nd victims of grants to provide omestic violence. supportive sei ices to all homeless, victims of domestic violence, homeless families or homeless wuth. CONTINUUM OF CARE - TRANSITIONAL HOUSING H-1. Meet the transitional 1) Support at least 50 la) Provide funds to HOPE's transitional shelter vailability/ housing and individuals/ families program to assist 10 people. Accessibility of supportive sei ice provided with transitional 2a) Provide local agencies with information on Decent Housing heeds of the homeless housing a year grant opportunities for fiands to support and victims of ) Assist local agencies to transitional housing and supportive sei ices. omestic violence in apply for at least two 2b) Provide support for the applications to reparation for a grants to provide request Emergency Solutions Grant Funds nove to permanent or additional transitional and Supportive Housing Program fiands for ermanent supportive housing and supportive transitional housing and supportive sei ices housing. sei ices 3) Attend Ten Year Plan to End Homelessness 3) Support the increase use meetings and provide information on the of transitional housing importance and need for transitional housing and/or supportive sei ices and/or supportive sei ices. to prepare individuals for permanent housing in the Ten Year Plan to End Homelessness. CONTINUUM OF CARE - TRANSITION TO PERMANENT HOUSING AND INDEPENDENT LIVING H-3.3 Provide homeless 1) Assist agencies to apply la) Support local Health Sei ices of North Texas Sustainability of and victims of for at least two grants to and Denton County MHMR apply for Decent Housing domestic violence provide permanent Supportive Housing Program fiords for with permanent or supportive housing with permanent supportive housing program permanent an emphasis on chronic projects. homeless and persons lb) Provide local agencies with information on supportive housing. with a severe mental grant opportunities for fiands to support illness and/ or HIV transitional housing and supportive sei ices. positive status. 2a) Participate in the Denton County Homeless Assist at least two Coalition. community partnerships/ 2b) Provide firnding to support programs of collaborative efforts to HOPE, Inc, Denton Count-N- Friends of the continue to provide Family, and Denton Affordable Housing additional permanent Corporation who have a collaborative effort housing opportunities to to move victims of domestic violence from the homeless, potentially emergency shelter to Transitional housing in homeless and victims of preparation for stable, sustainable permanent domestic violence housing. Page 19 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy LEAD-BASED PAINT STRATEGIES H-1.5 Educate homeowners, 30 households and 50-75 0-50 homeowners will receive both the HUD vailability/ rental property contractors and property pamphlet-Protect Your Family from Lead in Accessibility of owners/managers & managers received field our Home and the EPA pamphlet-Renovate Decent Housing contractors regarding guides for painting, home Right. Ten to fifteen realtors will be educated on isclosure, the histoiti_~ maintenance and renovation both the HUD Lead Rule and the EPA RRP Rule. of lead-based paint, work instructions. 20 All contractors contacted will be encouraged to its hazards to children wners, managers or receive EPA certification. and how to use safe ontractors receive individual work practices when afe work practice video disturbing paint in raining for the five-year older housing. period H-1.6 Reduce Lead-Based Average of 40 units will In properties built before 1978, four minor vailability/ Paint Hazards in receive lead-based paint repairs, three owner occupied rehabilitations and Accessibility- of owner and renter- inspection, hazard control three homebuyer assistance projects will be Decent Housing occupied residential -eduction work or abatement, completed and receive lead-based paint reduction units as needed. ass inspections and, when work, pass inspections and meet final clearance in required, meet final clearance compliance with 24 CFR 35 regarding lead-based ver the five-year period. paint during 2011. For the Homebuyer Assistance Program, only a visual inspection will be conducted and property must pass inspection. HUMAN SERVICES STRATEGIES SL-1.2 Meet the basic food 1) Support at least 300 a) Provide fiends to support the Nutrition vailability/ needs of the homeless mergency meals and food Center of Health Sei ices of North Texas to Accessibility- of and low-income bags a year provide an estimated 50 persons with Suitable Liking weekly nutritional shops. Environment ) Support at least 150 meals b) Provide fiends to support SPAN who will and nutritional food provide meals to 350 to persons over 60 or bags/shops a year disabled persons. SL-1.3 Meet the basic shelter 1) Support at least 250 1) Provide fiends to the Denton County Friends vailability/ needs of homeless emergency shelter nights of the Family Safe Shelter to assist 6,097 Accessibility- of and low-income of stay a year people. Suitable Liking persons ) Support at least 25 2) Provide fiords to HOPE, Inc to support a Environment individuals/ families transitional housing program for an estimated provided with transitional 40-65 persons. housing a year 3a) Provide 10 staff hours to support the Denton 3) Provide at least 60 hours County Homeless Count conducted by the of staff time in support of Denton County Homeless Coalition (DCHC). at least 3 projects for the 3b) Provide staff time as necessarti- to support the Denton County Homeless DCHC application for Continuum of Care Coalition a ti-ear fiends. Support 75 individual/ family units of case management and other sei ices to maintain housing including prevention of foreclosure and eviction -a year Page 20 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy SL-1. Foster and maintain 1) Participate in at least 3 la) Participate in the Denton County Homeless Availability/ an environment coalitions and/or Coalition in the effort to prevent and end Accessibility of where families, collaborative efforts for homelessness. Suitable Living neighborhoods, and community initiatives to a) Provide ftands to three daycares to support the Environment communities enjoy foster and maintain an provision of childcare to an estimated 357 trong, supportive environment to promote families. relationships strong, supportive 2b) Provide ftands to after school/summer care relationships. programs and the provision of childcare for Support at least 150 56 children. individuals/ family units 3a) Provide support to Denton County Friends of of childcare, after-school the Family for the provision of domestic and summer care, violence and sexual assault victim sei ices parenting shills, and adult including counseling. education assistance a 3b) Provide support to Children's Advocacy year. Center for Denton County to provide sexual 3) Support at least 75 units abuse/assault sei ices to children and non- of domestic violence and offending families members. sexual assault prevention 4) Provide support to Denton County Friends of education and training a the Family for the provision of community year education and offender classes to prevent domestic violence and sexual assault. SL-1.5 ity residents have 1) Support at least 50 units 1) Provide support the Family Health Care and Availability/ ccess to health care of health care sei ices a Health Sei ices of North Texas for primary Accessibility of o be as physically year. health care and pre-natal sei ices to at least Suitable Liking nd mentally fit as ) Participate in any 1793 persons. Environment possible coalitions/collaborative efforts to improve availabilitti- of health care especially for low- income persons, elderly, and people with disabilities. 3) Support at least 20 units of mental health care sei ices a ti-ear... INFRASTRUCTURE & PUBLIC SERVICE FACILITIES STRATEGIES SL-3.1 Street improvements. Promote livability & of applicable this year. Sustainabilitti- of ustainabilitti- for residents of Suitable Liking ow/mod neighborhoods. Environment Projects will support 200 hhs. SL-3.2 Installation of new Promote livability and of applicable this year. Sustainabilitti- of sidewalks and ustainabilitti- for residents of Suitable Liking replacement sidewalks. ow/mod neighborhoods. Environment rojects will support 200 hhs. SL-3.3 Installation of water and romote livability and Provide ftinding for replacement of server lines on Sustainability of server lines. ustainability for residents of Clifton Street and Morse Street. Provide funding Suitable Liking Connection of ow/mod neighborhoods. or replacement of water line on Morse Street.. Environment residential units to Projects will support 150 hhs. sei ices. Page 21 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy SL-3. Installation of drainage Promote livability and of applicable this year. Sustainability of improvements including ustainability for residents of Suitable Liking improvements that will ow/mod neighborhoods. Environment remove residential roject will support properties from approximately 50 lilis. oodplain. SL-3.5 Rehabilitation and Improve availability & of applicable this year. Sustainability of expansion of public a ccessibility of seivices Suitable Liking seivices facilities. through improvement to at Environment east 2 public seivice facilities. SL-3.6 Improve and/or expand Improve availability & of applicable this year. Sustainability of ark facilities including accessibility of seivices to at Suitable Liking pen space, playground east 2 park facilities. Environment and other recreational acilities. DEMOLITION STRATEGIES SL-3.7 ontinue to demolish To demolish 20 structures Continued support for the Demolition Program Sustainability of ubstandard buildings using the five-year period. with residual fiords. Suitable Liking o improvement the Environment ppearance and safety f neighborhoods ANTI-POVERTY & ECONOMIC DEVELOPMENT STRATEGIES 0-3.1 Support training and Provide economic Provide non-federal incentives to organizations to Sustainability of mployment activities opportunity by supporting create jobs. Work with job training organizations Economic argeted to poverty activities that create jobs. to promote training in specific areas of need. Opportunity nd veiN- low-income bseiN-e an increase in the iouseholds. comber of poverty and low- ncome hhs that achieve self- ufficienc0. 0-1.1 xpand educational Provide economic Provide fiuhding to transitional housing providers. vailability/ pportunities for opportunity for transitional Request that information on educational Accessibility of hose seeking housing clients. 25-35 hh opportunities be provided to clients. Economic ransitional housing over 5 years) receive Opportunity r other housing ounseling/educational support seivices. er ices. 0-1.2 Encourage support of ver the five-year period 25+ Monitor federally fimded projects and work with vailability/ Section 3 goals by ndividuals hired for projects contractors to ensure that Section 3 requirements Accessibility of local contractors. y private contractors. are fialfilled. Economic OrthlmtN' BARRIERS TO AFFORDABLE HOUSING STRATEGIES H-1.6 Educate the Improve accessibility and Quarterly newsletter will be sent out to clients, vailability/Acces community regarding availability of information on local lenders, realtors, agencies, churches, sibility of Decent he benefits of affordable units by providing neighborhood associations, libraries, recreation Housing affordable housing. homeownership and fair enters and many others. Two public hearing will housing information, be held during the preparation of the amoral uarterly newsletters, at least action plan and one during the preparation of the public hearings annually. erformance report. Page 22 Outcome/ 5-yr Objective Consolidated 5-yr Consolidated Plan 1-yr Action Plan Plan Outcome Measures Proposed Activities Strategy H-2.9 n an annual basis, reate affordability in Continue to request impact fee grants from the ffordability of -equest approval and lousing through provision of General Fund for housing non-profits for the Decent Housing landing for impact in average of three to five construction of affordable housing. ee grants for grants per year over the five- roducers of ear period. affordable housing. H-2.10 Allocate fiuhding to Create affordability in Support for Denton Affordable Housing ffordability of he non-profit and housing through construction Corporation's, Habitat for Humanity, Private Decent Housing or-profit of 25 - 50 SF units and 50 - developers and the City's Infill New Construction organizations that are 100 rental units that are Program. eveloping affordable ffordable to low-income housing. Request that households over the five-year they attempt to period. maximize the everaging of these dollars and provide documentation. Page 23 2011 PROPOSED PROJECT MAP With Minority Concentrated areas by Census Tracts S V GI Rl1, I.I r l E J 6 02 02 02 4.02v Minority Concentration RA by Census Tracts LI QE -I 0 - 25% 0204.01 L "CRIPT ` q a - +25% - 30% +31%-40% J 1 +41% - 50% +50% 100% t- - 0) Source: U.S. 2000 LLi W a Census 02)8 00 METRO I~ T R NGSIOE•Jrb M h 1J1 9 l GR61N S' 1 1 1 2011 Projects and Activities 1. MLI Summer Program* 4. Family Health Care* 2. Clifton SeN-,-er Line Replacement Project 5. Health Services of North Texas* 3. Denton City County Day School* 6 Morse Sewer/Water Line Replacement Project Communitv-Wide Activities CDBG and HOME Administration Home Improvement Program Children's Advocacy Center of Denton County Minor Repair Program Denton Affordable Housing Corp. - Rental HOPE, Inc. Homebuyers Assistance Program Services Program for Aging Needs, Inc Geographic distribution of projects is based on citizen, service provider and City staff input regarding significant needs in the low-income community, specifically in regard to public facility improvements. Home Improvement Program activities are limited to low-income areas that are zoned residential. This is to ensure that substantial amounts of funding are not expended on housing in areas zoned commercial or industrial, where the zoning transition in the near future, would no longer allow residential development. *Public service activity locations are provided on the above map, however, services provided by each of the organizations is available to low and moderate-income households throughout the Denton community. Page 24 OTHER PROGRAM SPECIFIC REQUIREMENTS HOME PROGRAM - FORMS OF INVESTMENT The City of Denton, through the Homebuyers Assistance Program (HAP) and Denton Affordable Housing Corporation, through the Affordable Housing Opportunity Program (AHOP) will provide subsidies to low and moderate-income homebuyers. Under the HAP program the maximum HOME subsidy will be $14,900. This amount includes all investment that enables the family to purchase the unit. This sets up a 5, 7 or 10-year recapture period for all homebuyers. The subsidy is provided as a 5, 7 or 10 year deferred forgivable loan. Under the AHOP program the maximum HOME subsidy will also be $14,900 and is set up as a 5-year recapture period. According to the promissory note, the borrower agrees to occupy the property as his/her primary residence for the term of the loan from the execution date of the promissory note and deed of trust. The borrower must also agree to pay all mortgage payments, taxes and other assessments on the property in a timely manner. In the event the borrower complies with the terms of the promissory note, deed of trust and the program, the City of Denton and DAHC agree to release the maker of the note from payment of the loan. Borrower agrees not to sell, lease, or transfer any interest therein during the term of the loan. In the event that the borrower sells, leases or transfers the property, the City of Denton and DAHC will require that the loan balance be repaid. If the borrower sells the property or if the property is foreclosed upon, or transferred in lieu of foreclosure, the loan balance will be repaid from the net proceeds. Net proceeds are defined by HUD as the sale price less closing costs and mortgage payoff If the net proceeds of the sale are not sufficient to repay the loan balance, the City of Denton and DAHC can reduce the amount based on the available net proceeds at the time of sale. Recaptured funds from the either program will be used to assist other first-time homebuyers. Funding agreements and/or contracts with community housing development corporations and/or subrecipients will include a requirement that the organization comply with HOME regulations in regard to continued affordability of assisted units. There are no other forms of investment that are not described in §92.205(b) by the City of Denton. MONITORING STANDARDS AND PROCEDURES The City of Denton will complete an annual comparison of the objectives stated in the 5-year Consolidated Plan with actual accomplishments. Based on the comparison the City of Denton will consider making changes or updates to the 5-year Consolidated Plan. The City of Denton provides CDBG and General Funds to several non-profits agencies and departments providing supportive services. The City's Human Services Coordinator monitors agencies on a daily basis. Each year agency staff is provided with training on financial procedures and data collection. Agency staff is provided with appropriate Federal guidelines and OMB circulars to ensure that they have access to pertinent information. Agencies are required to provide quarterly beneficiary and financial reports. A year-end report is required to detail annual expenditures, beneficiary information, funding sources and major accomplishments. Each year, the Human Services Coordinator completes a risk analysis based on established criteria. On-site monitoring visit are completed on all "high risk" organizations. The on-site monitoring includes a review of client files, financial and accounting records, and procurement procedures. Independent audits are also submitted and reviewed by the City staff. Page 25 For the HOME program, a similar process is also followed to monitor the Denton Affordable Housing Corporation, a certified CHDO. The City's Community Development Coordinator with the help of the Community Development staff monitors the CHDO on a regular basis to ensure that the non-profit is meeting HOME regulations. TBRA units and residents are monitored on an annual basis to ensure that all HOME requirements are met. Also, the only rental project not funded through the local CHDO, is a project that provides transitional housing and services for single-parent fanulies. This organization is also monitored annually including a review of the client files for income information. Programs and projects carried out by the City are monitored daily. Staff maintains checklists on individual projects to ensure that all required procedures have been completed. The housing rehabilitation staff maintains records on all rehabilitation projects. The Community Development Coordinator maintains records for the Homebuyer Assistance Program and the Administrator maintains records on public infrastructure projects. The Administrator reviews and certifies all applications prior to provision of assistance. A year-end report that details expenditures, revenue, beneficiary information and major accomplishments is also required from all City programs and projects. PUBLIC HOUSING IMPROVEMENTS The City of Denton has no public housing units. PUBLIC HOUSING RESIDENT INITIATIVES The City of Denton has no public housing units. However, City staff will continue to work with the Denton Housing Authority to promote the Homebuyers Assistance Program to those currently receiving Section 8 assistance. Information on the Homebuyer Assistance Program has been mailed to all Section 8 recipients with their utility bills. No resident initiatives strategies were included in the Consolidated Plan. INSTITUTIONAL STRUCTURE The City of Denton's 2010-2014 Consolidated Plan notes six "gaps" in organizational structure that hinder effective housing and social services delivery. These gaps include the following with the City's efforts to ameliorate these conditions during the coming year: 1. Need for more effective communication between housing organizations in the North Texas area, including those serving the City of Denton. Local housing organizations need to work together to expand resources and programs to ensure that a variety of housing choices are available to serve low and moderate-income households. Action to overcome gap: Continue to encourage participation in the Denton County Homeless Coalition, the Denton County Senior Services and other collaborative organizations. Work with agencies and continue to support partnership efforts and the sharing of information regardingfunding opportunities. 2. Need for more effective coordination between emergency assistance agencies. Action to overcome gap: Continue to support efforts of the Denton County Homeless Coalition and HOPE, Inc. to expand the network of organizations participating in HMIs. Page 26 3. Lack of private contractors experienced in lead-based paint hazard reduction and abatement and lack of founding to complete projects. Contractor training along with additional funding targeted to lead abatement is critical to continue the City's owner-occupied rehabilitation program. Action to overcome gap: Request additional funding where available to train contractors and pav increased costs. Work with training organizations to promote training opportunities to local contractors and emplovees. 4. Lack of shelter facilities for families and youth. Action to overcome gap: Support work of Denton County Homeless Coalition in targeting priority services and facilities needed in the area. Assist in grant irriting and other forms of ,fundraising. Administer homeless grant funds when appropriate and support is needed 5. Lack of coordination of homebuyer/homeowner educational services needed to provide a higher level of information. Action to overcome gap: Investigate a partnership with the Denton Housing Coalition, Denton Affordable Housing Corporation and or the State of Texas to develop a more comprehensive educational program. 6. Inability to assist low and moderate-income property owners to bring housing units up to standard condition. Action to overcome gap: Seek out additional funding to assist low income homeowners and work to develop program or policies to ensure that owners of rental property improve units as needed to maintain unit up to local code requirements. ADDRESSING THE CHRONIC HOMELESS (UPDATE IN PROGRESS) The Denton County Homeless developed the following steps during the 2010-2014 Consolidated Plan process to address chronic homeless. These steps are reaffirmed during the 2011/12 program year. The Denton County Homeless Coalition believes a structured and seamless collaborative system of services and programs can move individuals experiencing chronic homelessness to sustainable permanent supportive housing. This transition to sustainable permanent housing is the key to ending chronic homelessness. The DCHC point-in-time homeless count taken in March 2009 (Denton County Homeless Count) identified fifteen sheltered and 13 unsheltered chronic homeless. It is likely that there were approximately forty-three chronic homeless that were not counted. These estimates were created by applying the Texas Homeless Network Statistics of 27% of unaccompanied adults among the homeless population as chronic homeless, to Denton's estimated number of homeless. At this time DCHC is moving from a coalition philosophy to a community strategy to end chronic homelessness. A coaltion's subcommittee is in the process of developing a Ten-Year Plan to End Chronic Homelessness. Since the plan is in process, the steering committee decided to take a three-step planning approach to building a community strategy to end chronic homelessness. Page 27 I. A small committee conducting research on strategies, stakeholders, goals, and activities to promote appropriate services for the community and chronic homelessness. In the fall of 2004, the small group completed their research and provided possible community directions for review by the steering committee. The Steering Committee used the information to move to the Step Two of the three step planning approach. 2. Identified community stakeholders and possible actions necessary to end chronic homelessness. Upon review of other successful planning processes to end chronic homelessness, the steering committee decided to approach local elected officials to sponsor and convene the community planning process. The DCHC is in the process of completing this step of the three step planning approach. 3. Convene a large community meeting for all identified stakeholders to review, modify, and agree upon a plan for the community to end-chronic homelessness. The DCHC expects the community plan to end-chronic homelessness will build from current programs and services available. The Denton County Homeless Coalition has identified several obstacles to ending chronic homelessness including lack of major substance abuse services, healthcare services, and transportation. These items present significant barriers in moving the chronic homeless from experiencing homelessness to maintaining a stable environment. HOME PROGRAM - MINORITY OUTREACH PROGRAM To ensure employment and business opportunities for minority businesses the City of Denton will continue to carry out and support the following activities during the program year. 1. The Denton Chamber of Commerce and the Black and Hispanic Chambers of Commerce refer building contractors to the Community Development office to apply to be added to the active contractors bid list. 2. Will request that general contractors on CDBG and HOME-funded capital projects give preference to hiring minority or women subcontractors and employees as well as include this wording in constriction contracts. 3. City of Denton's legal advertisement for bids will include the equal employment statement and encourage minority participation 4. Notices are sent to both the Black Chamber and the Hispanic Chamber of Commerce in Denton informing them about the programs, the assistance and contracting opportunities that are available. 5. City of Denton will continue to attend the Small Business Development Breakfast on a monthly basis. 6. City of Denton will continue to comply with all State bidding requirements for Historically Underutilized Businesses (HUB) 7. City staff will also perform debarment reviews to ensure that no previously debarred contractors are allowed to participate in projects. 8. City will continue to advertise annually in the Denton Record Chronicle and daily in the local cable channel in search for contractors and will encourage participation by minority contractors. Page 28 Public Hearing Minutes December 6th and 13th 1. Support public garden plots. Set up development programs to encourage this. 2. There are problems with the parking lot near the Chinese Restaurant at Bonnie Brae and University. Spaces are too close causing problems with cars trying to get through the parking lot. 3. Break in the concrete in the front area of the Rosemont apartment community. Sometimes there is water coming up near the cracked area. 4. Neighbor has an issue with a pool that has a leak. Survey Comments 1. Senior citizens need grants to help them improve their homes, etc. 2. Program to help the elderly and the poor pay utility bills. Program to help seniors have a ride/transportation or public service like buses and trains. Grant money to help supplement people or list for housing. Money to fund education programs for first-time homebuyers, regarding credit building. 3. Need for sidewalks in SE Denton. 4. On street improvements, consider Jannie and some of the other streets in the area will be greatly appreciated (Mack Park addition). Also, broken or chipped curves on streets in this area. 5. Can you use these funds on a church? Comments provided by citizens at the SEDNA Meeting on 11/29/2010 1. Resident asked if Homebuyer Assistance Program was still available. 2. Resident asked about demolition program. Staff explained that CDBG funds could be used to demo condemned buildings or could demolish strictures only for low/mod persons who couldn't afford the demolition costs. 3. The fact that senior citizens struggle with their utility bills was mentioned. 4. A need for senior transportation was mentioned. 5. More credit classes. Page 29 ACTION PLAN PUBLIC HEARING MINUTES May 3, 2011 City Council Meeting This section will include minutes from the May 3~d public hearing. Page '10 MINUTES FROM 30-DAY COMMENT PERIOD April 8, 2011 through May 9, 2011 This section will include comments received during the 30-day comment period. Page 31 Approved by Committee 2/15/2011 Official Minutes Human Service Advisory Committee Meeting - November 2, 2010 City Hall East Conference Room, 601 E. Hickory, Denton, TX Members Present: Maria Minerva Villanueva-Simental, Teddy Griffin, Mary Behrens, Steve Pogue, Mari Metzgar and Mary Ann McDuff Staff Present: Barbara Ross and Alma Espino Call to Order: Meeting was called to order and staff welcomed members. Approval of Minutes from April 22, 2010: Chair Steve Pogue asked if there were any changes on the minutes. Hearing none, he asked for a motion. Mary Behrens made the motion to approve the minutes from April 22, 2010. Sheryl English seconded the motion. The minutes were approved as written. Chair & Vice-Chair Elections: Mr. Pogue asked for nominations for chair and vice chair. Ms. McDuff nominated Steve Pogue for chair. The motion was seconded by several members. Mr. Pogue was elected by acclamation. Mr. Pogue nominated Mary Ann McDuff for vice chair. Terry Griffin seconded the motion. Ms. McDuff was elected by acclamation. Discussion and Recommendation of Park's Request: Ms. Espino explained the request from the Parks Department. A decision was made, due to various reasons that included funding and lack of participation, to close the Owsley Summer Program. The Owsley Summer Program was awarded $7,013 in City of Denton Human Services fiends. Ms. Espino stated that Kathy Schaeffer has requested that the committee consider moving the fiends to the King Kids Summer Kamp. The fiends would be utilized for the same purpose, but at the Kings Kid Day Kamp. Ms. English stated that the number of low income children in Denton that need these types of programs continues to increase. Mari Metzgar asked if all the fiends would have to be given to the camp or could they be disbursed to other programs. Mr. Pogue stated that perhaps the committee could allocate just a portion of the fiends to camp. The committee discussed and requested that Kathy Schaeffer make a presentation at the next meeting regarding PARD's request that the $7,000 originally allocated to the Owsley Summer Program be reallocated and added to the MLK Kings Kids program. HSAC Funding History: Mr. Pogue asked staff to provide a history of agency funding over that last year. Alma Espino explained the funding process, provided information on the public hearings, application submission and how she tracks information and monitors the agencies. Ms. Ross mentioned the upcoming public hearings. She added that new census data would be available possibly in April or May and that this would possibly require revising the current Consolidated Plan. Ms. Espino stated that she would send the committee members the web link for the City of Denton CAPER, Consolidated Plan and Action Plan. She added that she would provide them information on the Homeless Count and ensure that they were receiving the Community Development newsletter. Page 32 Review & Approve Application, Assessment Tool, and Hearing Format a. Application Training Dates & HSAC Binder Availability Members discussed the Human Services Advisory Committee (HSAC) procedures, application, assessment tool, and hearing format. Ms. Espino advised the committee regarding application training for agencies planning to apply for 2011-12 Human Services funds. Applications will be made available to the agencies in November and would be due January 19, 2019. Staff will make the applications available to the committee via binders or via flash drive. Ms. Espino asked who would prefer binders to a flash drive. Teddy Griffin and Ms. English asked for binders. All other members requested a flash drive. Ms. Metzgar asked about the revisions to the application. Ms. Espino explained the changes and their purpose. Members approved the application though they also asked if there was any way to streamline the application to make it easier for the agencies to apply. Ms. Espino pointed out that the agencies have already commented that this application was not difficult to do - not as difficult as some other applications. Committee had no other changes to the application or assessment tool. Maria Minerva Villanueva- Simental moved that the application be approved with changes. Ms. Behrens seconded the motion. Approval was unanimous. Ms. Metzgar moved approval of the assessment form. Ms. English seconded the motion. The form was approved unanimously. Members discussed and set up four meetings for review of applications and development of recommendations for funding. The following meeting dates were selected: Application Workshop Sessions, Start Time 9 a.m. Thursday, December, 2, 2009 Friday, December 3, 2009 *One workshop session is mandatory for organizations wishing to submit an application. HSAC Application Presentations, Start Time: 12 p.m. Tuesday, February 8, 2011 Tuesday, February 15, 2011 Tuesday, February 22, 2011 HSAC Funding Recommendation Meeting, Start Time: 12 p.m. Tuesday, March 1, 2011 Review of HSAC General Procedures: Ms. Espino reviewed the revisions to the HSAC General Procedures. Ms. English moved and Ms. Griffin seconded the motion to accept the changes to the document. The procedures were approved unanimously. The meeting was adjourned at 7:25 p.m. Page 33 Approved by Committee 2/22/2011 OFFICIAL MINUTES Human Service Advisory Committee Meeting - February 15, 2011 Civic Center Conference Room, 321 E. McKinney, Denton, TX Members Present: James McDade, Maria Minerva Villanueva- S imental, Teddy Griffin, Mary Behrens, Steve Pogue, Mari Metzgar, Sheryl English and Mary Anne McDuff Members Not Present: Sara Bagheri Staff Present: Barbara Ross and Alma Espino Chair Steve Pogue called the meeting to order and welcomed James McDade as a new committee member. Ms. Espino was asked to review City of Denton finding priorities. Ms. Espino stated that Community Development Division had met with several focus groups that included the Denton County Homeless Coalition, Denton Information Network, and the Geriatric Services Workgroup. Each focus group discussed three questions: 1) What do you see as the most significant human service issues or problem facing residents of the City of Denton? 2) What do you see as the top three most significant unmet needs in the City of Denton? 3) What challenges or barriers do you think City of Denton residents and organizations will face in trying to meet future housing, health, and human service needs? The top three most significant unmet needs in the City of Denton were found to be as follows: Denton County Homeless Coalition Responses: 1. Housing & mental health services for L/M 2. Health Care 3. Longer term shelter including SROs (single room occupancy) Denton Information Network Responses, 12/03/09: 1. Transitional shelter 2. Health and mental health care for low-income persons 3. Affordable housing and utilities Geriatric Services Workgroup Responses 3/12/10: 1. Improved public transit coverage 2. Affordable assisted living 3. Information and referral, outreach and case management services Ms. Espino stated that if they were to be combined, they could fit into the following categories: 1. Housing (shelters/assisted living/affordable/utilities) 2. Health & Mental Care 3. Public Transit Coverage 4. Information and referral, outreach and case management services Ms. Espino added that there may be other priorities based on new Census figures. Page 34 Ms. Espino reviewed the handouts. Ms. Espino stated that due to the possibility of CDBG funds being reduced, the estimated available CDBG funds for human services had been revised. Also, backup had been provided for Fair Share funds received by the Children's Advocacy Center. Revision to Schedule of Meetings Ms. Espino apologized for the cancelation of the last meeting and provided a recommendation to reschedule the canceled meeting presentations to the March 1, 2011 meeting. She also recommended a night meeting to have more time for the committee to discuss their recommendations. A meeting was scheduled for Tuesday, March 8, 2011 at 6 p.m. Approval of Minutes from November 2, 2010 Mr. Pogue asked if there were any changes on the minutes. Hearing none, he asked for a motion. Mary Behrens made the motion to approve the minutes from November 2, 2010. Mari Metzgar seconded the motion. The minutes were approved as written. Discussion of Application Process Mr. Pogue asked if there were any questions about the application process. 2011-2012 Human Services Applicant Presentations Denton County Friends of the Family Donna Bloom, Director of Legal & Advocacy Services introduced herself. Ms. Bloom reviewed the array of services offered by Denton County Friends of the Family and the increase in needs in the community and the need for the funds. Mary Ann McDuff asked if information could be provided on the new office building and fundraisers. Ms. Bloom discussed the capital campaign for the new office building that will allow for much needed office space, the combining of Lewisville and Denton offices, more space for interns, savings and a net gain. She added that this was much needed due to the increase in crisis calls and need for services. Ms. Ross asked for clarification on fundraisers. Ms. Bloom listed various fundraisers that included Rhapsody. Fred Moore Day Nursery School, Inc. Alonzo Peterson, Executive Director introduced himself. Mr. Peterson provided information on the parents of the children attending Fred Moore Day Nursery School and the continued need for these fiords. Cost is based on a sliding scale. It is an inexpensive day care but provides quality care. Fred Moore Day Nursery School has developed a Parent Council Association. Parents and students have gotten involved in providing clothing and other items for the community. Sheryl English asked how many kids the center served and what ages are served. Mr. Peterson stated that it serves about 44 kids, but fluctuates. The daycare serves children from six weeks to 6 years of age. Ms. English asked if the school had experienced losses due to the new school offering pre-kindergarten classes. Mr. Peterson stated that the school had experienced losses, but that it was understandable since the school was free to students who qualify. Mr. Pogue asked Mr. Peterson to address previous financial issues and the IRS. Mr. Peterson stated that various changes had occurred and the board had been able to obtain persons with financial background. He added that due to receipt of funds from the Dallas Women's Foundation, they were able to payoff a loan and become debt free. Page 35 Ms. English asked about the student to teacher ratios and meals. Mr. Peterson explained regulations and Fred Moore's teacher to student ratio. Students are also provided breakfast and lunch. Ms. English stated that Mr. Peterson should look at scholarships offered by the Texas PTA. Knights of Light Charities Rich Lubke and Ray LaMarre CFO CPA, board members, introduced themselves. Knights of Light Charities Incorporated owes much of its origins to a small committee of men from the Knights of Columbus Council who formed a homeless committee back in 1992 to provide assistance for those in need. Over the course of 13 years this organization helped countless numbers of individuals in the Lewisville, Flower Mound, and Highland Village area, often taking reference cases from the CCA, Salvation Army, and various local church organizations, distributing tens of thousands of dollars to the local community over time. Unfortunately, the Homeless Committee's primary source of fundraising, collecting donations on street corners, was slowly phased out and made illegal by the various local city councils thus eliminating the ability of the committee to gather funding for distribution. Mr. Lubke stated that the Knights of Light Charities has a diverse board that pays overhead. Any funding awarded by the City of Denton would be utilized only in Denton. They stated that they plan to work with organizations in Denton. There will be no overhead. These funds will allow the Knights to quickly serve persons in the community. Mari Metzger asked who makes the final decisions about who to help. Mr. Lubke stated that the board is responsible. Mr. LaMarre added that there are three board members involved in the payment of assistance. Mr. Lubke added that a budget is set up with local partners, like CCA. Mr. Lubke added that this was not the only assistance provided. They have made donations of computers, clothes and provide their services in volunteering in different locations. Barbara Ross asked if funds had been requested from the City of Lewisville and from the Town of Flower Mound. Mr. Lubke stated that they had and had not received funding, but that their application had been tied with Salvation Army of Lewisville. Mr. Pogue asked how Knights of Light Charities planned to go from assisting 2 to 25 persons. Mr. Lubke stated that the only reason they had assisted so few was due to the limit of funds. Other services have been provided to the area. Mr. LaMarre added that they are working to get connected with Denton agencies. Ms. Ross asked if they plan to have someone from Denton on their board. Ms. Lubke stated yes, and that they have people from all over the community. Mary Behrens asked if Knights of Light Charities was connected with Knights of Columbus in Denton. Mr. Lubke stated they are separate and that their group allows persons from different religious affiliations and women. Communities in Schools of North Texas Dana Smith, Director of Program Research & Grant Development and Hillary Talatzko, board member, introduced themselves. Ms. Smith stated the need for funding and the funding cuts that are occurring. The Texas Education Agency plans to cut 76% of their funding. This will drop the amount from $70,000 to $14,000. United Way is also looking at a cut of 30%. Mary Ann McDuff asked about the agency's fundraisers. Ms. Smith stated that there is the golf tournament, which raises about $18,000 - $20,000, the Gala in April, which raises about $60,000 and the 1 Child Giving Campaign. Page 36 Sheryl English asked in how many schools are services provided. Ms. Smith stated that four case management programs are offered in Borman, Calhoun, Rivera and Denton High School. 21st Century After School Programs provides services at eight secondary schools. This makes it a total of 12 programs in Denton. Mari Metgar asked how many students receive services. Ms. Smith stated that in the 2009-2010 school year, 407 students were case managed for the 4 CIS programs where funding was requested for from City of Denton. However, across all of our programs 1,257 Denton ISD students received services during the 2009-2010 school year. Barbara Ross asked if they worked with the school social workers. Ms. Smith stated that they work closely with social workers. RSVP Diana Corona, Executive Director, and Liz Shearman, Financial Director, introduced themselves. Ms. Corona mentioned a negotiation with their rent, which will allow $7,200 in savings this year. A new program started March 2010, partnered with the Better Business Bureau of Houston Education Foundation with development of senior medical patrols. This program educates seniors regarding billing, Medicare fraud and abuse. The agency is being affected by funding cuts. RSVP is federally sponsored by the Corporation for National Community Services, which is being targeted by the House of Representatives for dissolution. When cuts continue, RSVP will need to start eliminating staff and making other cuts, which is causing a domino effect. Programs continue to grow and currently have an enrollment of 1,200 across Denton County. Mary Behrens asked if RSVP partners with United Way. Ms. Corona stated that one of the goals is to focus on partnering with United Way partners. She wants to show the skills and possibility of RSVP volunteers. Volunteers have the experience to complete strategic plans. Mary Ann McDuff stated that she had an epiphany regarding volunteers and the role of RSVP. Children's Advocacy Center of Denton County Dan Leal, Executive Director and Cameron Cox, board member, introduced themselves. Mr. Cox discussed how he got involved with the agency and provided an overview of the agency. The agency served 329 victims from Denton, which is 19.1% of the total. He stated this is the highest percentage based on victims by city of residence. CACDC is also one of the agencies that work with the Denton Police Department. The agency is unique in their collaboration with different agencies and organizations. Mr. Leal discussed the reason behind the request for $100,000. The board came up with fair share strategy to ask for funding. This allocation approach requests that each municipality, whose residents use the services of the Children's Advocacy Center for Denton County, pay a portion of the operating expenses that is proportional to the use of services. The Center is providing an important service that the City of Denton Police Department could not provide without expending more money than what the CACDC is requesting from the city. The expert forensic interviews, partner agency coordination, training and specialized counseling provided by the organization are valuable to the criminal justice process. Due to the City of Denton funding, several cities have followed suit and are providing "fair share" funding. Steve Pogue asked if the plan was to request the funding from City Council. Mr. Leal added that the board hopes to provide the cities with regular updates. Mr. Pogue asked if there was something more than just the "fair share" letter that the committee could do for Children's Advocacy Center. Mr. Leal stated that a letter supporting the "fair share" would be very helpful. Page 37 Discussion of Human Services Applications The committee discussed finding availability and cuts. Mary Anne McDuff stated that a good question would be what efficiencies and priorities are you proposing. Closing Mr. Pogue asked the committee if there were any questions. There were no questions. The meeting was adjourned. Page 38 Approved by Committee 3/1/2011 OFFICIAL MINUTES Human Service Advisory Committee Meeting - February 22, 2011 Civic Center Conference Room, 321 E. McKinney, Denton, TX Members Present: James McDade, Teddy Griffin, Mary Behrens, Steve Pogue, Sheryl English, Mary Anne McDuff and Sara Bagheri Members Not Present: Maria Minerva Villanueva- Simental and Mari Metzgar Staff Present: Barbara Ross and Alma Espino Chair Steve Pogue called the meeting to order and welcomed Sara Bagheri as a new committee member. Approval of Minutes from February 15, 2011 Mr. Pogue asked if there were any changes on the minutes. Hearing none, he asked for a motion. Mary Metzgar made a motion to approve the minutes from February 15, 2011. James McDade seconded the motion. The minutes were approved as written. Discussion of Application Process Mr. Pogue asked if there were any questions about the application process. 2011-2012 Human Services Applicant Presentations HOPE, Inc. Barbara Atkins, Executive Director of HOPE, Inc. introduced herself and stated that she would be making presentations for the Transitional Housing Program and the Homeless Management and Information System (HMIS). Ms. Atkins serves as the Project Manager for HMIS. Carl Seiler is the Project Coordinator and is not available to present because he is trying to complete the 2011 Homeless Point In Time Count. Transitional Housing Program - Ms. Atkins stated that at the Homeless Conference, the Annual Homeless Assessment Report (AHAR), a report to Congress on the extent and nature of homelessness in America, found that there is an increase in family homelessness. There are about 643,000 people homeless on a single night in January 2009. This amount is down due to persons not being counted from supportive housing. Due to new regulations and new definition of homeless, HOPE has worked hard to adapt programs to comply. Homelessness Prevention and Rapid Rehousing (HPRP) has provided much needed funds and has allowed us to transition to the upcoming Emergency Solutions Grant. HPRP funds were awarded to three agencies and will be ending this year. This will cut positions and funding that is necessary to meet the needs in the community. Homelessness prevention has become very important in funding grants. Why prevention - it decreases the return to a crisis situation. Denton is in a good position to remain competitive with grants. Collaboration will be key. Homeless Information and Management System - Ms. Atkins described the services provided by Homeless Management Information System (HMIS). Agencies requesting federal and state funding are required to utilize the HMIS data system. HMIS reports information regarding social service agencies Page 39 serving the homeless. Mr. Seiler provides tech support to local agencies. The program assists with data sharing and to help with referrals. HMIS also provided data to AHAR. The Denton County Homeless Coalition has requested that the HMIS take the lead role in teaching and in completing the Point In Time Homeless Count. Steve Pogue had noted that 10% of HOPE's income came from fundraising. He asked if this has this been more difficult. Ms. Atkins stated that it has been more difficult, and has been a challenge for the board. Mary Ann McDuff asked what HOPE was doing regarding the need for a homeless shelter. Ms. Atkins stated that it was not the mission of their agency, but that it was needed in the community. It will be interesting to see the final numbers of the Point In Time Homeless Count. There is movement for development of a shelter and HOPE will support this effort. Mary Ann McDuff asked with what agencies HOPE collaborates with. Ms. Atkins stated that HOPE collaborates with churches, Christian Community Action, emergency service programs, school districts, landlords, Interfaith, and Denton Affordable Housing Corp. (DAHC). The collaboration with DAHC has provided 20 housing units to help 20 families for longer term assistance. Steve Pogue stated that per data, churches are the backbone of HOPE, he asked if they had seen an increase in their participation? Ms. Atkins stated that donations had remained the same, but there had been an increase in support and in-kind projects. Health Services of North Texas - Food Pantry & Health Clinic Susan Stambaugh, Director of Clinical Services, and Breanna Bouchard, introduced themselves. Ms. Stambaugh provided information describing where HSNT is headed. The agency has applied for federal designation as a qualified health center. The two local hospitals have provided the funds to have a doctor available. This will allow the clinic to see more people. 60% of clients are from the city of Denton. The clinic estimates that they will be seeing 12,000 clients in 2012. What the request will support is the ability of the clinic to offer diagnostic services and prescriptions. Funds for these services are currently not available. Also, due to the clinic's previous working relationships, reduced prices are available. The importance of a diagnosis can assist in getting a client in to see a specialty doctor (ex. cardiologist). The food pantry provides supplemental supplies of food to help ensure that HIV+ clients receive the proper amount of nutrition they need to stay healthy. If clients do not receive adequate protein, their drugs won't work. Steve Pogue stated that he had noted an increase in donations and successful fundraising. He asked what this was attributed to. Ms. Stambaugh stated that positions had been added whose challenge has been to increase donations and fundraising. She hopes that it will be more successful. Ms. Stambaugh noted that CDBG funding cuts will affect these programs. She hopes that these funds will not be cut. Ms. Stambaugh stated that the amount requested had been increased and this will allow them to serve more clients. She thanked the committee and City for their continued support. Family Health Care Patrice Capan introduced herself as Executive Director of Family Health Care. She is also a nurse practitioner. Besides the obstetrics/gynecology services offered, the clinic sees patients with other health issues, from eyes, dental, feet, breast mass, hypertension to diabetes. Clients' sense of trust with the care received, long term loyalty to FHC, and the agency's 23 year tradition of compassionate service recruits clients and referrals from area agencies. Of the clients seen, 40% were from the city of Denton. About 79% Page 40 of patients stay with the clinic through delivery. This is a significant number. The clinic has moved and is paying $1 a year for rent. The space was offered by Denton Regional Hospital. This clinic offers the biggest "bang for the buck" by providing much needed prenatal care. Otherwise, the medical community will be responsible for managing a late pregnancy care, which can be costly and detrimental to both the mother and the baby. Ms. Capan added that their patients are also provided a copy of their charts, so if for some reason they are not in the area for delivery, medical staff will have their information on their pregnancy. Mary Ann McDuff asked where the office was and why was the move necessary. Ms. Capan stated that it is located in the Denton Regional business building at 3537 S. I-35 E, Suite 210, Denton. The reason for the move was that Family Health Care was in danger of having to file bankruptcy, due to new amounts being reimbursed by Title X funds. Both local hospitals were approached and after consideration about the agency closing, causing an increase in no prenatal care that will cause an increase in births in emergency rooms, a win win recommendation was made. Denton Regional Hospital agreed to provide office space and Texas Health Denton would provide funds. There were some concerns about the utilization of the hospitals, but deliveries are about 50150 in both hospitals. There were also some concerns about patients being intimidated about their new location, but patients really like the office. Mary Behrens asked why the number of Denton Residents had dropped. Ms. Capan stated that this was due to the lesser amount of funds received. Also, City of Denton funds are utilized for care costs for the first two to three months, until Medicaid becomes active. Sometimes the amount of patients can vary. Sara Bagheri asked if the agency utilized the natural birthing centers in the area. Ms. Capan answered that patients can deliver anywhere they want, but she has to use OB/GYN Medical Directors to see their high risk patients and for them to work under. The patients then choose to deliver with them. Denton City County Day School Eddie Garcia, Executive Director, introduced himself. Mr. Garcia stated that the school serves 50+ low to moderate income families. DCCDS not only provides a safe and positive environment for children, but it helps to transition the children to kindergarten. DCCDS is required to comply with requirements and inspections from various groups, and since the school has been opened, it has only had three deficiencies. The school has a great history and does a great job in providing care and preparing children for kindergarten. Sheryl English asked what were the ages of the children and up to how many children can the facility have. Mr. Garcia stated that they can enroll up to 84 children, but currently have about seventy-seven children between the ages of two and five. There is a waiting list. Children have a tendency to be at the school from the age of two and have their siblings enroll. Mary Ann McDuff asked what the requested funds will be used for. Mr. Garcia stated that the funds will be used to cover part of teachers' salaries. There is need to maintain good and consistent care and this means maintaining good teachers. Ms. McDuff asked what the annual salary is for teachers. Mr. Garcia stated that the highest paid teacher is paid $12.50 per hour. The board thinks it is important to retain good teachers, so the board decided to offer benefits. 100% of health insurance is provided. Mary Behrens asked how many teachers the school has. Mr. Garcia stated that the school maintains child to teacher ratios that are below state requirements to ensure that children are provided with positive interactions. There are two per class and floaters (temp) are available when a teacher is absent. During the summer program more teachers are available. Page 41 Sheryl English asked if there had been a decrease in enrollment due to the new school in Denton. Mr. Garcia stated that there had initially been a little decrease, but the children are coming back. The new school only offers '/z days and most parents need care all day. Ms. English added there is probably another issue with the new school not being open in the summer. The recession has affected enrollment more significantly than the new school has. Sheryl English asked a question regarding the weekly fee; is it discounted if the household has more than one child in the school? Mr. Garcia stated that the weekly fee is based on a sliding scale dependent on family size and total family income. It is between $67 and $95 and no, it is not reduced for more than one child. The rate is already very inexpensive. Mr. Garcia added that he welcomed visits from the committee. People are always surprised by the quality of the facility. Please call or come by, except during nap time. Barbara Ross mentioned that CDBG fronds had fronded various additions, repairs and other items. CDBG fronds are very important to organizations like DCCDS in the community. Denton Christian Preschool Judy Royal, Executive Director and Ray Jordan, Board Member and Treasurer, introduced themselves. Ms. Royal stated that the agency was requesting fronds for the salary of a bilingual teacher and a bus driver. She noted that the new school has not had a tremendous impact on enrollment. The reason for this is that the new school does not offer transportation. There are currently 105 children on the waiting list and the need remains great even with the new school in the community. Mr. Jordan stated that financially the school's expenses have remained the same, but expenses have grown. The school has had to access their reserve and implement new fundraising. There are concerns that there may be further reductions and required legislation has been costly. Barbara Ross asked if there was something that caused the need for the fundraiser for the teachers' salaries. Ms. Royal stated that there had been a change in the economy and contributions had dropped, as well as United Way reduced their allocation. Rather than dropping salaries, the school added a fundraiser. Mr. Jordan added that the school had needed to make some staff cuts, but remaining staff has stepped in to help where needed. There has also been a reduction in salaries. Mr. Jordan mentioned the upcoming Mexican Supper fundraiser. Barbara Ross mentioned that Denton Christian Preschool was making a request for CDBG fronds to update the playground in order to meet State requirements. Closing Mr. Pogue asked the committee if there were any questions. There were no questions. The meeting was adjourned. Page 42 Approved by Committee 3/8/2011 OFFICIAL MINUTES Human Service Advisory Committee Meeting - March 1, 2011 Civic Center Conference Room, 321 E. McKinney, Denton, TX Members Present: James McDade, Teddy Griffin, Steve Pogue, Sheryl English, Mary Anne McDuff, Sara Bagheri, Maria Minerva Villanueva- S imental and Mari Metzgar Members Not Present: Mary Behrens Staff Present: Alma Espino Chair Steve Pogue called the meeting to order. Announcements: None Approval of Minutes Mr. Pogue asked if there were any changes on the minutes. Sara Bagheri noted a correction of wording from natural birthing centers not national birthing centers. Sheryl English moved that the minutes be approved. James McDade seconded the motion. The minutes were approved as corrected. Discussion of Application Process Alma Espino discussed the evaluation. Ms. Espino requested the evaluations be submitted via email, by noon Friday. Ms. Espino asked if this would be sufficient time to complete the evaluations. The committee agreed to the deadline. Mr. Pogue requested that a reminder email be sent with the deadline. Discussion and Recommendation of Park's Request to Reallocate 2010-11 Owsley Summer Program awarded funds to Kings Kids Day Kamp Alma Espino provided a quick overview of the request. Kathy Schaeffer from the Parks Department was asked to provide further detail. Ms. Schaeffer stated that the Owsley Summer Program was eliminated due to budget cuts and issues with attendance. Also, parents had issues with the setup. They did not like their kids being picked up at the park and transported to another location. More openings have been added to the Kings Kids Day Kamp and the Parks Department is requesting for the committee to consider reallocating the funds to the Kings Kids Day Kamp. 2011-2012 Human Services Applicant Presentations City of Denton PARD - Kings Kids Day Kamp Kathy Schaeffer continued with the 2011-12 application for funding presentation. Ms. Schaeffer stated that the camp is offered during the summer, Monday-Friday, from 9 a.m. to 5 p.m. The applicant requirements have been revised; an applicant is required to provide certain documentation and at least one parent is required to be working or going to school. Sheryl English asked if funds are allocated will the camp have a greater waiting list. Ms. Schaeffer stated that there Kings Kids Day Kamp waiting list is usually a longer than for Owsley. Parents just didn't like the structure of Owsley and put had a tendency to put their children on the waiting list for the Kings Kids Day Kamp. Page 43 Steve Pogue asked regarding the canceled IMAGINE program mentioned in the application. Ms. Schaeffer stated that the IMAGINE program provided opportunities to students that were either failing or significantly struggling with school. The program would allow staff to work with them for 6 months doing leadership training, anger management, intensive tutoring, community service and fundraising. After this time they were eligible for a trip, like to Washington, D.C. Sheryl English asked what the costs were for these trips. Ms. Schaeffer stated that with airfare and hotel the cost could be about $7,000. It was a good program, where the kids worked hard and put in a lot of hours to participate in the program. Ms. English asked if there was another way to still offer the program, maybe a trip to a local area. The program is very beneficial and teaches leadership. Ms Schaeffer stated that there has been some talk about maybe offering the program and a trip locally, like San Antonio. Steve Pogue stated that in the past the camps had received funds from the Park Foundation. Are they still providing funds? Ms. Schaeffer stated that the Foundation is focusing their funds to pay for scholarships for '/z day camps. This may change in the future. Discussion and Recommendation of Park's Request to Reallocate 2010-11 Owsley Summer Program awarded funds to Kings Kids Day Kamp Alma Espino asked for clarification on what the reallocated funds would be utilized for. Ms. Schaeffer stated that the reallocated funds would be used to fund salary costs for a camp counselor. The committee discussed the recommendation to reallocate 2010-11 Owsley Summer Program awarded funds to Kings Kids Day Kamp. Sheryl English made a motion to reallocate funds to the Kings Kids Day Kamp. James McDade seconded the motion. The motion was approved. Special Programs for Aging Needs (SPAN) Deb Robertson, new Executive Director and Toni Haithcock, RD, LD, Nutrition Services Manager introduced themselves. Ms. Haithcock stated information on other program provided by SPAN. Senior Paws is a program that supports the needs of the Meals on Wheels clients by providing monthly pet food supplements. Senior Paws will help to ensure that seniors are not sharing their hot lunches with their beloved companions when they are unable to afford enough pet food. SPAN is also offering Lifeline. Lifeline is an emergency telephone link to a monitoring center that is activated by a subscriber pressing a button on a pendant that is worn around the neck. The subscriber can then speak with a trained specialist about their problem and can get appropriate help, ranging up to the arrival of emergency medical personnel, police or firefighters. SPAN will install a Lifeline Emergency Response System with no installation fee and maintain the system for $35 per month. SPAN provides congregate meals and home delivered meals. Sometimes the home delivered meals are the client's only contact. Hunger for seniors is on the rise and continues to increase. SPAN served 855 persons in Denton County. Baby boomers are getting older and they will be needing assistance. Ms. Haithcock stated that SPAN's strategic funding and goal is to have sufficient meals for emergency situations, as well as to have enough funding to provide immediate needs and food for example if someone is getting out of the hospital. Currently, clients would need to be referred to a food pantry. Sheryl English asked what other goals SPAN had for southern Denton County. Ms. Haithcock stated that currently, there are meal routes and persons can be delivered to if they are within 10 miles of a hot site. Where congregate meals are provided. Otherwise a person is eligible for one hot meal and four cold meals. Mari Metzgar asked what funds are specifically going to provide the service for Lifeline. Ms. Haithcock stated that the funds are being provided by another program, not City funds. Page 44 Steve Pogue asked about the reduction of AAA funding. Ms. Haithcock replied that there has been a 3 5% reduction. AAA is taking fronds from larger communities to provide to smaller communities. Sara Bagheri asked about eligibility requirements for the SPAN meal program. Alma Espino provided general eligibility requirements. Camp Summit Lisa Braziel, Camp Director and L. Kimberly Karl, Board Chair introduced themselves. Ms. Braziel stated how their programs assist fanulies and benefits the individual being assisted. In 2010, the program served 1500 campers. The program offers weekend, spring and summer camps to adults and children with disabilities. 81 campers were served during spring break. They are now offering a camp during the fall for adults because kids will still be in school. Ms. Karl mentioned the funding issues. After partnering with United Way of Dallas for years, United Way has changed their priorities and are not funding Camp Summit. This is a loss of $150,000 to the budget. Ms. Braziel described a specific camper's experience. Many times this is the only social and recreational activities available. Ms. Braziel added that besides the benefits it provides the campers, Camp Summit provides quite an impact and respite to the fanulies of the campers. A lot of times the caregiver/family has been providing care for many years. Mari Metzgar stated that based on their application, Camp Summit serves 2% of city of Denton residents. Ms. Metzgar asked what other communities are providing funding in north Texas. Ms. Braziel stated that funding is provided by Flower Mound, Lewisville, and Farmers Branch. Camp Summit is always working to obtain funding from other areas. Ms. Karl mentioned how the camp had affected various citizens of Denton. The camp is working to increase numbers of campers in Denton. The ages of campers have been from the age of 6 to 87 years of age. Sheryl English asked regarding the list of disabilities because she would like to provide that information to her daughter who works with persons with disabilities. Ms. Braziel stated that Camp Summit is the best kept secret. She added that services are available to campers with different disabilities. Mary Ann McDuff asked if the camp was not located in Montague County. Ms. Braziel stated that the camp is still located in Denton County and the plan is to move in 5 years. James McDade asked how the United Way of Denton funding will affect the agency. Ms. Braziel stated that the agency had budgeted to not expect funding. The agency does not currently fit into the vision though people can designate their funding to Camp Summit. The plan is to reapply. James McDade asked regarding the board. Ms. Karl stated that the agency is working to recruit more board members. Court Appointed Special Advocates (CASA) of Denton County Sherri Gideon, Executive Director introduced herself. Ms. Gideon stated the importance of the agency is to the children in the community. There have been 18 nationwide studies that have shown that with advocates; children did better in school, are more likely to graduate, do better in services, their parents access more services, there are less foster changes, less time in the foster system and less returns to the foster system. Their most recent goal is to reduce the cost per child served. Currently, the cost per child is Page 45 about $1,400 locally. It is $1,100 nationally. The hope of the agency is to increase volunteers to 70% of cases, which would reduce costs to $1,142 per child. Last year the agency served 85% of children in Denton County. Why fund CASA? The agency has maintained good partnership with Denton and is an important service in the community. The request is only for 2% of CASA's budget, while 46% of persons served were from Denton. Sara Bagheri asked how volunteers are found. Ms. Gideon stated that they utilize state and national advertising. The agency is located on 6 to 7 sites on the internet. Presentations are also made in the communities. Mary Ann McDuff mentioned the availability of RSVP and their pool of senior volunteers. Sara Bagheri asked how many typical cases are given to a volunteer. Ms. Gideon stated that normally about 2 cases, but some volunteers have up to 4 cases. Day Stay for Adults, Inc. Erica Strain, Executive Director and Derek Logan, Associate Director introduced themselves. Ms. Strain is located at the Lewisville location and Mr. Logan is located at the Corinth location. The Lewisville and the Corinth locations serve about 22 clients a day. The Denton site used to serve about 17 persons per day. Rates average about $44 per day, and the center accepts Medicaid. Currently, 7 to 8 clients are from the city of Denton and fall in the low to extremely low income category. Ms. Strain stated that they are working to provide services not only to the elderly, but to the younger population, who need the services. Even with the changes in location, the agency still provides services to fanulies who have been with them since the beginning. Mary Ann McDuff asked regarding backgrounds of Ms. Strain and Mr. Logan. Ms. Strain stated that she had a background in Special Education, which had made her aware of the organization. She liked what she saw and joined the organization. Mr. Logan stated he had a background in case management at a State School. Closing Mr. Pogue asked the committee if there were any questions. There were no questions. The meeting was adjourned. Page 46 Unofficial Minutes Human Service Advisory Committee Meeting - March 8, 2011 City Hall East, 2nd Floor Conference Room, 601 E. Hickory, Denton, TX Members Present: Mary Behrens, James McDade, Teddy Griffin, Steve Pogue, Sheryl English, Mary Anne McDuff, Sara Bagheri, Maria Minerva Villanueva- S imental and Mari Metzgar Staff Present: Barbara Ross and Alma Espino Chair Steve Pogue called the meeting to order and asked for any announcements. Alma Espino asked if there were any issues with the emails sent. Approval of Minutes from March 1, 2011 Mr. Pogue asked if there were any changes to the minutes. Hearing none, he asked for a motion. Teddy Griffin made a motion to approve the minutes from March 1, 2011. Sheryl English seconded the motion. The minutes were approved as written. Results of Individual Recommendation Sheets Alma Espino provided the committee with a summary of the committee's evaluations that included an average allocation amount. The average was determined by totaling the individual recommendations, per agency, and dividing by nine (9) members. This was provided prior to the meeting and extra copies were available. Ms. Espino asked if anyone had any questions or if any corrections were noted. The total amount equaled $256,920. Steve Pogue discussed the amount of funds available for recommendations. Both CDBG and general funds are based on an estimate. Mr. Pogue recommended that each agency be discussed, and the committee member who made the largest and smallest recommendation explain their reason(s) behind their recommendation. Members agreed that they would review the list of requesting agencies, discuss the amount of funding, and make a recommendation. However, they would be able to go back and make revisions as needed, based on the total budget numbers. Camp Summit Camp Summit was discussed. Mari Metzgar stated that she recommended not funding the agency, because at this time, basic services, like food, are more important. James McDade added that they provide a good service, but that at this time the funds are not there. Maria Minerva Villanueva- Simental stated her support for the program and that she works with many students who utilize the program. Mari Metzgar recommended that due to other needs, that agency be recommended for funding of $2,000. Members agreed to recommend to fund the agency $2,000. Court Appointed Special Advocates (CASA) CASA was discussed. Teddy Griffin stated that this agency was important but that the funding amount proposed probably should have been lower due to them already receiving money from the Benefit League. James McDade stated that he had based his funding level on all of the money the agency has coming in. Sheryl English stated that those funds are not guaranteed. Every agency is receiving cuts. Mary Ann McDuff stated that there are cuts everywhere. Members agreed to recommend funding at the average amount of $9,500. Page 47 Children's Advocacy Center Members discussed the request from the Children's Advocacy Center of Denton County. Sheryl English stated that the agency is important. Barbara Ross explained Fair Share. The amount is unknown and can only be estimated. Mary Ann McDuff stated that she had recommended the same amount funded last year and that Children's Advocacy Center has mega fund raisers. Sara Bagheri stated that she had been confused about fair share funds and probably would have recommended a lower amount if she knew these funds were available. Steve Pogue stated that it would be beneficial if the committee knew the amount of Fair Share funds that would be provided. Alma Espino stated that this amount is unknown and how they come up with this amount is also unknown. Ms. Bagheri complimented the application and cost per services. Ms. McDuff added that the agency had a good history and director. Members discussed fair share funds and the need to know this amount prior to funding the agency and the need for this to become part of the police budget. Members agreed to recommend to fund at $10,000. City of Denton PARD - Kings Kids Day Kamp Summer Playground Program Members discussed the Kings Kids Day Kamp summer playground program. Teddy Griffin stated that she recommended funding because per Kathy Schaeffer, the program was not going to receive funds from the Parks Foundation. There is a greater need. Alma Espino noted that the Owsley Summer program was no longer available. Sara Bagheri stated that there were other places to cut and this was a great program and the only free summer camp. She added that any program offering services in this early stage in life was a good program. Members agreed to recommend to fund at $12,000. Communities In Schools Communities In Schools was discussed. Sheryl English stated that the program was valuable. James McDade stated that they, like all the agencies, need to fundraise more. He added that the board doesn't help with funds. Mary Ann McDuff stated that she is aware of the agency through United Way. Due to State budget cuts, this program will be impacted. The agency also has several fundraisers, which includes a gala. They also have a grant writer, staff and are a United Way agency. Mari Metzgar stated that the agency provides incredible services and recommended an increase. Members agreed to recommend to fund at $7,000. Day Stay for Adults Day Stay for Adults was discussed. Maria Minerva Villanueva- S imental stated that she liked the program and people need this program. Teddy Griffin stated that this year was very difficult and she put money elsewhere. Mari Metzgar asked for them to take a look at increasing their amount. Sara Bagheri stated a concern regarding funding health insurance. Alma Espino stated that based on reimbursement rules and the amount of tracking that would be required, it would be recommended that their application be revised, as it was last year. The City would reimburse the difference between what Medicaid reimburses and their daily rate. Steve Pogue added that the agency should be made aware of this prior to submitting next year's application. Ms. Bagheri stated that she was concerned with the application. Ms. Espino stated that she would discuss with the agency and let them know that the reimbursement on the difference between what Medicaid reimburses and their daily rate would be the option funded. Members agreed to recommend funding the average of $5,100. Denton Christian Preschool Denton Christian Preschool was discussed. James McDade ranked them high, due to the economy and the need for affordable childcare. Sheryl English stated that it was important and a needed program. Daycare is very expensive and there are very few that offer affordable day care. Mary Ann Page 48 McDuff stated that the daycares needed to be funded at last year's amount. Members discussed and agreed to recommend to fund at $22,056. Denton City County Day School Members discussed Denton City County Day School. Sara Bagheri stated that she recommends fully funding the application. She added that she liked their application, their numbers and that it was one of the fairest in pay scale for staff/administration. The agency manages their dollars and is partially self sufficient. Again, any program offering services in this early stage in life is a good program. Steve Pogue stated that he likes their philosophy and that they had a good administrator. Mary Ann McDuff stated that she was most impressed with Eddie Garcia, the numbers, quality and quantity. She also recommends an increase from last year's allocation amount. This program has a high impact. Members agreed to recommend to fund at $26,550. Denton County Friends of Family (DCFOF) DCFOF was discussed. Sheryl English stated that they have a lot of fundraisers. Teddy Griffin stated that she had recommended an increase and that it was near and dear to her heart. James McDade stated that the agency has money from other sources, like the Restore. Members agreed to recommend to fund at $24,940. Family Health Care Family Health Care was discussed. Mari Metzgar stated that health services were more critical, due to the economy. There is a greater need. This agency impacts the community and touches lives early. James McDade stated that he recommended less funding due to the agency receiving help from the three local hospitals, which included free rent. Alma Espino stated the history as to why Family Health Care was now receiving free rent from Denton Regional. The agency was in financial crisis and was in danger of closing. The agency approached the hospitals and due to the impact to the community, they decided to assist. Teddy Griffin stated that she had recommended less funding due to them obtaining various grants and that they were receiving a lot of financial help from different sources. Sara Bagheri stated that prenatal care is a necessity and that the recommended the amount should be closer to last year's amount. Their access to the hospitals shows savvy management. Ms. Metzgar recommended a higher amount. Members agreed to recommend to fund at $19,000. Fred Moore Nursery School Members discussed Fred Moore Nursery School. Sara Bagheri stated that she is partial to early childhood care agencies and that the agency fulfilled a need for low cost day care. Mary McDuff stated that she recommended funding the agency. The agency provides infant day care and needs the support. Sheryl English stated this day care is utilized and wanted to change her recommendation from lower to a higher amount. Mary Ann McDuff stated that day cares needed to be funded at last year's amount. Members agreed to recommend to fund at $23,556. Health Services of North Texas (formerly known as AIDS Services of North Texas) Health Services of North Texas was discussed. Teddy Griffin stated that she recommended less due to the need to divide funds and the fact that the agency has received a Flow grant. Mari Metzgar stated that a high percentage of clients live in Denton. She added that health care is very expensive and not providing this service could have dire consequences. Steve Pogue asked regarding the closing of People's Clinic. Alma Espino stated that Health Services of North Texas did take over the agency when they closed, and they were also given the reallocated remainder of the City of Denton Human Services funds. Mary Ann McDuff stated that this has allowed the agency to expand. Mary Page 49 Behrens stated that the two hospitals have provided a doctor. Members agreed to recommend funding the average of $21,990. HOPE, Inc. - Transitional Housing Members discussed HOPE, Inc. Maria Minerva Vill anueva-S imental stated that she liked the program because it provides help in emergency situations and for a long term basis, plus the agency provides education and resources. Teddy Griffin stated that this service was needed to address the increase in homeless families. Members agreed to recommend funding the average of $20,930. HOPE, Inc. - Homeless Management information System HOPE, Inc. - HMIS was discussed. The HMIS System is required for all agencies requesting federal and state funding who are required to utilize the HMIS data system. HMIS reports information regarding social service agencies serving the homeless. Mr. Seiler provides tech support to local agencies. The program assists with data sharing and to help with referrals. HMIS also provided data to AHAR. The Denton County Homeless Coalition has requested that the HMIS take the lead role in teaching and in completing the Point In Time Homeless Count. Members agreed to recommend funding the agency for $18,000. Knights of Light Charities Members discussed Knights of Light Charities. Maria Minerva Villanueva-Simental stated that only two clients were served in Denton. Mari Metzgar stated that the two persons had been obtained from Salvation Army. Ms. Metzgar added that she was concerned with the approval process. Various members agreed that the agency needed to improve their process. Members agreed to not recommend the agency for funding. Retired Senior Volunteer Program (RSVP) Members discussed RSVP. Mari Metzgar stated that the agency fills a gap with volunteer needs in the community. Various members recognized the benefit to the community and recommended an increase over the average. Members agreed to recommend to fund at $7,900. Special Programs for Aging Needs (SPAN) SPAN was discussed. Mary Ann McDuff asked regarding the stimulus funds. Staff explained that several agencies had received stimulus funds. Members agreed to recommend to fiord at $21,000. Approval: Funding Recommendations Alma Espino stated that amounts for CDBG and General Funds are subject to approval by City Council. Alma Espino stated that she would advise the committee regarding the date for the Council work session presentation of 2011-2012 Human Services funding recommendations. Barbara Ross stated that the final CDBG amount is unknown and could be cut. A decision was made to approve the funding and meet again if changes were requested. Sara Bagheri made a motion to approve the funding recommendations and James McDade seconded the motion. The members approved the funding recommendations. Discussion and Recommendation of "Fair Share" Funding Support Letter Members agreed to submit a letter in support of "fair share" funding. The letter would be forwarded to Steve Pogue for Review. The meeting was adjourned. Page 50 Community Development Advisory Committee Meeting November 12, 2010 Minutes Members Present: Chris Briggs, Bob Gorton, Herbert Holl, Gerard Hudspeth, Ray Jordan, John Siegmund, Dorothy Watts Members Absent: Cathy Tedrick Staff Present: Barbara Ross Ms. Ross welcomed the committee members. Mr. Hudspeth and Mr. Jordan took their oath of office as members of the Community Development Advisory Committee. The members of the committee introduced themselves. Ms. Ross reviewed the program requirements and eligible activities under the Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) programs. She also reviewed the public works, non-profit facility projects and housing programs that were in progress. Ms. Ross provided budget information and explained that fiends have been committed to projects that should be completed early in 2011. Mr. Siegmund asked what the committee's role was in regard to these programs. Ms. Ross explained that the committee was responsible for reviewing applications for project/program funding and developing funding recommendations to be presented to City Council. The CDAC recommendations would be based on community needs. The information received from various organizations requesting fiends and input from the public in general is used to help determine community needs. Mr. Siegmund asked if fiends had to be returned to the Federal government if they were not used by the City. Ms. Ross explained that HUD has a "timeliness test" and that grantees could have no more than 1.5 times their annual CDBG allocation in their letter of credit near the end of the program year. If a city has more than this amount, then they could be asked to give up that amount of funding. Ms. Ross commented that, since the inception of the program in 1985, the City of Denton has not had to return any CDBG or HOME fiends to the Federal government. Members reviewed the 2010-2011 application form. Gerard Hudspeth commented that those requesting fiends do not always provide an adequate description of the population they intend to serve. He asked if requesting organizations could be more detailed in this description. Ms. Ross pointed out that this should be part of their response to Section II, e, and that she would emphasize at the training that more information needs to be provided. It was also noted that Ms. Ross should request more information regarding marketing of services in response to Section VII of the application. Members discussed the need for more financial information. Mr. Briggs suggested that the committee review financial information from at least the past three years. Members agreed to request these records from any organizations applying for Page 51 project funds except City departments. This would include revenue, income and expense statements and balance sheets. Ms. Ross gave the committee the public hearing information. Mr. Siegmund asked how the public hearings were advertised. Ms. Ross stated that the hearings are advertised in the Denton Record-Chronicle, flyers will be provided to neighborhood associations and local churches and the information will go out in the Community Development newsletter. Members discussed the public hearing process. Bob Gorton suggested that the public hearing flyers be sent out to the members of the various City board and commissions. Ms. Ross indicated that staff works to ensure that the low and moderate-income community is notified of the hearings. Mr. Holl asked if staff had concerns that the public hearing comments may be skewed if board members were to attend the hearings. Ms. Ross indicated that this was not a concern. Ms. Ross asked members to comment on the brief survey that public hearing participants are asked to complete. Mr. Jordan commented that participants may not know what the Minor Repair and Home Improvement programs are. Ms. Ross stated that she would explain the programs to those present. Ms. Ross asked the members if they wanted to elect their chair and vice-chair at this time, or would they want to wait until the next meeting. Herbert Holl nominated Gerard Hudspeth as chair and Dorothy Watts as vice-chair. Ray Jordan seconded the motion. The motion was approved unanimously. Members discussed future meeting dates. It was agreed that all four Fridays in February would be tentative meeting dates. Ms. Ross explained that the application information would be provided to the committee members at least a week before the first meeting on February 4tn Members asked Ms. Ross to send the public hearing information out in an email. The meeting was adjourned. Page 52 Community Development Advisory Committee February 11, 2011 Minutes Members Present: Chris Briggs, Bob Gorton, Herbert Holl, Ray Jordan, John Siegmund, Cathy Tedrick, Dorothy Watts Members Absent: Gerard Hudspeth Staff Present: Barbara Ross Dorothy Watts, CDAC Vice-Chair called the meeting to order at 11:35 am. Ms. Watts explained to the committee that Gerard Hudspeth, Chair, was not able to attend the meeting. Ms. Watts asked the members to review the minutes and state if any corrections were needed. Ray Jordan moved approval of the minutes as written. John Siegmund seconded the motion. The minutes were approved as written. Ms. Watts reviewed committee procedures. Ms. Watts asked the committee members to introduce themselves to the presenter from the Denton Affordable Housing Corporation. Sheila Harper, DAHC, introduced herself and began her presentation. Ms. Harper handed out attachment "C" which was not included with the application materials. She indicated that DAHC was requesting funds to rehabilitate some of their rental units and for operating expenses. Ms. Harper noted that when the organization's Affordable Housing Opportunity Program (AHOP) was active, they were able to include a 10% profit for each unit they sold to an eligible household. These funds were used for operating expenses. Since the housing market has slowed, they need some additional support for operating expenses. It is their hope that AHOP will pick up again and they won't need the additional assistance in this area. Ms. Harper also noted that the income from DAHC's rental properties doesn't cover their administrative expenses. This is due to the fact that the units are rented to persons with disabilities and households participating in transitional housing programs. Units housing these groups tend to have high maintenance costs. Ms. Harper reviewed the specific items that generally need to be replaced in these units. Bob Gorton asked if the tenants would pay the water bill for the new sprinkler system. Ms. Harper indicated that they would not be paying that cost. Mr. Holl asked if the rebates for insulation upgrades were just for homeowners or could DAHC take advantage of them. Ms. Harper stated that she would look into that. Chris Briggs asked how long the tenants tended to stay in the units. Ms. Harper stated that many were in transitional housing programs and stayed at least two years. Mr. Gorton discussed the use of operating costs by organizations and how they sometimes become dependent on that type of funding. Ms. Harper commented that she hoped DAHC did not have to continue to request operating funds. Ms. Ross pointed out that when DAHC was first formed, they did request funds for operating, but did not continue to request these funds after they got their programs up and running. There were no additional questions for Ms. Harper. Page 53 Ms. Ross discussed the current funding issues. She explained to the committee members that the City does not yet know that the HOME and CDBG allocations will be for the 2011-2012 funding year. She noted that some members of Congress are recommending that no funding be allocated for CDBG. Mr. Siegmund asked about the sources of the funding. Ms. Ross indicated that the funding is awarded to Denton and is available directly from the Federal government though there are some communities that receive these fiends the State. Mr. Briggs asked if there was a cut, would it be an across the board cut, or would some communities/areas get a smaller cut. Ms. Ross explained that there is a CDBG formula that determines the funding amounts for each grantee. Right now staff is estimating a 10% cut and would ask that the CDAC base their recommendations on that amount. Gordon Meredith, residential construction specialist, described the City's Minor Repair Program (MRP). He stated that the program provides up to $5,000 for repairs for single-family, owner-occupied units. Also, $3,500 is the limit for repairs on mobile homes. It is set up to do "emergency" type repairs that would continue to damage the unit if not repaired. He noted that 41 families were assisted with needed repairs last year. Mr. Meredith explained that staff generally divides the funding up into fourths and spends only 25% of it each quarter. This is because the City's program year ends July 31st, and staff wants to ensure that fiends are available during the summer to assist with HVAC problems. The MRP serves the entire city. Members had various questions for Mr. Meredith. Mr. Siegmund asked how households find out about the program. Mr. Meredith explained that staff puts out a newsletter, flyers, ads in the newspaper and that code enforcement helps to get out the word. Ms. Ross added that they also send emails to the neighborhood association leaders and ask them to pass it along to their members. Mr. Briggs asked about the total number of requests received. Mr. Meredith said that it is usually around 60 so, most households are eligible and do get assistance. Ray Jordan asked why the request is higher than last year's. Mr. Meredith explained that some of the requested funding would be used for minor repairs on homebuyer assistance units during the next program year. Cathy Tedrick asked who completes the inspections. Mr. Meredith stated that Building Inspections is required to do an inspection if a permit is pulled but he also does an inspection before any payment is made. His inspection confirms that he work was completed. Mr. Briggs asked if the contractors used for the projects are local. Mr. Meredith said most are located in Denton or in Denton County. Ms. Watts asked about the budget balance. Mr. Meredith indicated that all current funding will be expended by August 2011. He indicated he would provide an updated budget balance for the CDAC. Luisa Rodriguez-Garcia presented a request for Homebuyer Assistance Program funding. She stated that staff is requesting $42,150 to assist with personnel and program management costs. Ms. Rodriguez-Garcia stated that she is projecting to have approximately $250,000 for the 2011-2012 year beginning in August 2011. She noted that the funding requested was for staff salaries for those that carried out the program. Several questions involved program funding and requirements. Mr. Jordan asked how much of the funding had been expended. Ms. Rodriguez-Garcia stated that on the 17 households were assisted last year, $180,000 was expended. She added that usually the assistance is $10,000 to $11,000 per household. Ms. Rodriguez-Garcia explained the "gap financing" that is also available and that staff is also attempting to get additional money to help with repairs to the units. Mr. Jordan asked about the funding source for the repair program. Ms. Rodriguez-Garcia Page 54 indicated that it would come through the Minor Repair Program and would require more time and paperwork on these units. Ms. Tedrick stated that she hoped the repairs would not be done until the after the closing to ensure that funding wouldn't be spent on an ineligible unit. Ms. Rodriguez-Garcia indicated that this was correct. Mr. Briggs asked about the tenure rate of the participating homebuyers. Ms. Rodriguez-Garcia discussed the program requirements including the lien that was placed on the properties to ensure that the City's investment was protected. She noted that homebuyers had a five, seven or ten year commitment and that most stayed for the required period, only 2% or less moved out before this. Mr. Gorton asked if the sellers were individuals, investors or banks. Ms. Rodriguez-Garcia stated that 99% are seller occupied when purchased by the HAP client. Members discussed other aspects of the homebuyer program. Mr. Jordan asked about the percentage of Minor Repair Program funding that would be allocated for these repairs. Members discussed whether the owner should be responsible for all repairs. Setting a cap on the amount of MRP fiends that could be used for this purpose was also discussed. Ms. Rodriguez-Garcia explained that HUD HOME program requirements for the homebuyer unit are more stringent that those required for an FHA loan. She stated that the owners do complete all repairs that were pointed out in the independent inspector's report. However, often there are things that staff will note that need to be replaced or repaired that were not included in that report. An owner would not normally pay for these and often wouldn't participate in the program if they were required to complete additional repairs. Mr. Jordan asked what would happen if the program was cut by 10%. Ms. Rodriguez-Garcia stated that the number of new homeowners assisted would have to be reduced. Mr. Gorton asked if there was an identifiable trend of realtors or title companies that were involved in the process. Ms. Rodriguez-Garcia stated that she works with about 20 lenders, several title companies and realtors. Staff noted that because HAP purchases are often more work for realtors, some prefer not to work with households participating in the program. Ms. Watts asked about the population that was served by the program. She noted that it appears that certain groups continue to benefit and asked about the application qualifications and the marketing of the program. Ms. Rodriguez-Garcia stated that staff tracks the applications and notes why they are not approved. The main reason is credit issues. She also reviewed the marketing of the program through lenders, realtors, special events, newsletters, etc. In some instances, Ms. Rodriguez-Garcia refers people to Consumer Credit Counseling. Ms. Ross noted that she had talked with a representative of SEDNA and are looking at providing some credit counseling classes later this spring as has been done in the past. Ms. Ross also noted that the census information should provide statistics regarding the race, ethnicity and other characteristics of the low-income families moving into Denton that would eventually qualify for the program. Mr. Briggs asked how many prospective homebuyers were turned away. Ms. Rodriguez-Garcia stated that last year 35 households apply and 17 were assisted. She stated some don't qualify, others can't find a home in their approved price range. Mr. Briggs asked what would happen if funding was not available for repairs. Ms. Rodriguez-Garcia responded that those families looking for homes in the $70,000 and $80,000 price range would have difficulty finding a unit that qualifies. Mr. Holl asked about the cost of the repairs per unit to be paid by the MRP. Ms. Rodriguez-Garcia indicated that it is about $900 per unit. Page 55 Ms. Ross indicated that she had researched the eligibility of completing repairs/renovation on a property that is not owned by the non-profit providing services. She noted that Denton Christian Preschool operates on property owned by a church. Ms. Ross stated that she would provide the committee with the Federal regulation that states if the area where services are provided is separate from the area where non-eligible activities taking place, the improvements can still be completed. She added that she talked with Judith Royal, executive director of Denton Christian Preschool, and Ms. Royal stated that only the children participating in the day care use the playground. The name of the program and the possibility that some groups might not participate due to the religious association, was also discussed. Mr. Jordan stated that the daycare serves a very diverse population and that this includes religious diversity. Ms. Ross said that she would ask Ms. Royal to be prepared to discuss these issues. Members discussed upcoming meetings. Mr. Holl asked if the Engineering project requests were in priority order. Ms. Ross stated that she thought so but, that she would contact Becky Guthrie to confirm. The meeting was adjourned at 1:07 pm. Page 56 Community Development Advisory Committee February 18, 2011 Minutes Members Present: Chris Briggs, Gerard Hudspeth, Herbert Holl, Ray Jordan and John Siegmund Members Absent: Bob Gorton, Cathy Tedrick, Dorothy Watts Staff Present: Barbara Ross Gerard Hudspeth, chairperson, called the meeting to order. Ms. Ross apologized for the fact that the committee had not yet received the corrected version of the minutes from February I Ith and stated that she would send them out with the minutes from this meeting. She stated that approval of the minutes will need to be delayed until the March 4th meeting. Mr. Hudspeth asked Lisa Stephens of the Pinnacle Housing Group to begin her presentation. Ms. Stephens stated that Thursday evening, they held a neighborhood meeting to discuss the possible rehabilitation of Singing Oaks. She noted that it was built in 1970 and was currently owned by Price Realty. She added that the structure's need for renovation was more extensive than originally thought. A completely new electrical system is needed. Ms. Stephens stated that an application is being submitted to the Texas Department of Housing and Community Affairs (TDHCA) to request tax credits for some of the rehabilitation costs. She stated that 90% of the residents could stay in place. The developer is not buying the property simply to "flip" it. Committee members had several questions for Ms. Stephens. Mr. Jordan asked her to describe the demographic characteristics of the residents. Ms. Stephens indicated that there is a significant number of Hispanics and seniors living at the complex. She added that most of the households would qualify to remain. Mr. Jordan asked what the developer would do if funding was not received from the City of Denton. She stated that TDHCA application procedures provide additional points to projects where at least $4,000 per unit in local support fiends is requested for the project. There is another potential source for fiunding if the request to the City is not awarded. Mr. Briggs asked if they receive funding from other cities. Ms. Stephens replied that they do receive CDBG, HOME, Neighborhood Stabilization Program funding and other funding from local governments. Mr. Hudspeth asked if Pinnacle's office was in Denton. Ms. Stephens stated that the main office was in Florida but that she is the regional outreach staff member and spends most of her time in the area. Mr. Holl noted that the cost of the rehabilitation would be approximately $60,000 per unit and asked if it wouldn't be cost effective to reconstruct the complex. Ms. Stephens stated that it would be approximately $90,000 per unit to demolish and re-build. Mr. Holl asked about the limited liability corporation. Ms. Stephens explained that this entity was set up to own and manage the development. Mr. Briggs asked if the amenities would support families with school age children. Ms. Stephens reviewed the list of complex amenities that would be available to individuals and families. Mr. Siegmund asked if the exterior was going to change much. Ms. Page 57 Stephens stated that they will replace the wood siding and trim but, most of the exterior would not be changed. Mr. Hudspeth asked Ms. Stephens what amount of funding would ensure that the project could go forward and Ms. Ross asked if the "request" for funding was sufficient to meet the TDHCA application requirements. It was noted that the organization was a "for profit" developer. Members discussed the tax credit process. Mr. Jordan asked how many years the property was required to meet the tax credit program requirements and when the developer would begin making a profit. Ms. Stephens stated that the "request" for funding was needed to get additional points on their TDHCA application. She noted that they would be under the tax credit requirements for ten years but, would most likely begin making a profit a year after project completion. Becky Guthrie from the City of Denton Engineering Department gave a presentation on several projects for which they are requesting fiends. The Powerpoint presentation indicated the number of households that would benefit from each project. The requests included three sewer line replacement projects, one water line project, one combination water and sewer line replacements and two sidewalk projects. Ms. Guthrie explained that the sewer and water line projects were areas where there had been some problems. Mr. Jordan asked how much it cost to complete line break repairs. Mr. Siegmund pointed out that with steel or cast iron pipes, if the system begins coming apart, the frequency of breaks would increase causing problems for the residents. Mr. Briggs asked if information could be provided to the committee regarding the average cost to repair a line break. Mr. Siegmund asked if City staff checks to see if the water and/or sewer lines also need replacement before a street is repaved. Ms. Guthrie indicated that this was the case and she described the process to ensure that street improvements are not completed and then torn up to replace water and sewer lines. Ms. Guthrie stated that the sidewalk projects had been citizen requests. Egan sidewalks would benefit approximately 16 households and assist students in getting to Calhoun Middle School and Denton High School. Crescent Street would also assist the students walking to DHS and benefit 26 households. Ms. Guthrie discussed pending and completed projects. She noted that one of the issues on the Eagle Sidewalks project was the easement acquisition. Mr. Siegmund stated that he thought the City had the easement right-of-way on all streets. Ms. Guthrie stated that in some instances, additional right-of-way is needed for sidewalks. Members discussed the Crescent Street sidewalk project and whether many residents would use the sidewalks. It was noted that the sidewalks could allow residents to walls protected all the way to Carroll Blvd. Mr. Jordan stated that there are more seniors out walking that could use the sidewalks. Mr. Hudspeth asked if local contractors were used to do the work on these projects. Ms. Guthrie and Ms. Ross indicated that in many instances they are local but, the jobs are awarded based on the lowest, reasonable bid. There is no targeting to local contractors. Page 58 Judith Royal and Alicia Blanca presented Denton Christian Preschool's (DCP) request for funding. Ms. Royal indicated that the State licensing requirements state that day care facilities must have a certain type of material below their playground equipment. DCP plans to encompass the entire playground with a wooden border and fill it with pea gravel. Ms. Royal added that the day care does not have the funding to complete this project. DCP requested funding from another source but, it was not approved. Ms. Royal added that even though the name of the school is Denton Christian Preschool, that they do not teach the Christian faith. By regulation, they are not allowed to do so. She added that one of the staff members is Buddhist. Mr. Hudspeth asked that if DCP is awarded the amount that they requested, will this be sufficient for them to meet all requirements. Ms. Royal and Ms. Blanca indicated that it would. Ms. Royal said that in some instances children from the nearby neighborhood and some from the church may play on the equipment. Ms. Ross asked if the Church was contributing anything to the project. Ms. Royal stated that they did not have the funding to assist. Mr. Siegmund stated that from their balance sheet, it appeared that DCP could fiend the project. Ms. Royal stated that they have had to do fiend raisers to pay salaries. She noted that the funding in the endowment account could not be touched. Mr. Briggs stated that without the resurfacing, the playground could not be used. Ms. Blanca talked briefly about the children from the Owsley area that have no play areas. Ms. Ross pointed out that there is a CDBG-funded "Owsley Park" in the area. Ms. Blanca indicated that unless the parent can go with the child, they would normally not go to the park alone. Ms. Ross explained that the committee had some CDBG-R stimulus funding left from the Redwood Sewer project that needs to be reallocated. She stated that the Parks and Recreation Department had some projects that they would bring to the committee for possible funding. The meeting was adjourned. Page 59 Community Development Advisory Committee March 4, 2011 Minutes Members Present: Chris Briggs, Bob Gorton, Herbert Holl, Gerard Hudspeth - Chair, Ray Jordan, John Siegmund, Cathy Tedrick, Dorothy Watts - Vice Chair. Member Absent: None Staff Present: Barbara Ross Dorothy Watts, Vice Chair, called the meeting to order. She asked members if there were any additional changes to the minutes of February 11th. Bob Gorton moved that the minutes be approved with the corrections, Herbert Holl seconded the motion. The February 11th minutes were approved unanimously. Ms. Watts then asked members if there were any changes to the minutes from February 18th. Ms. Ross pointed out some minor corrections that were brought to her attention and had been revised. Ms. Watts asked for a motion. Cathy Tedrick moved that the minutes be approved as corrected. John Siegmund seconded the motion. The February 18th minutes were approved unanimously. Barbara Ross apologized to the committee and stated that she had not given Jim Mays, Parks Superintendent, sufficient information regarding his presentation to the committee. He was prepared to present information regarding the additional electrical repairs to be completed at Fred Moore Park rather than the proposal to expend residual CDBG-R stimulus funding. Ms. Ross indicated that they would bring the proposal back to the committee within the next two weeks. Nancy Baker presented the funding request for the City's Home Improvement Program. She passed out copies of the revised guidelines. Ms. Baker stated that the program currently includes rehabilitation and reconstruction of owner-occupied housing units. Some projects include accessibility improvements. Information is provided to the homeowner(s) regarding maintenance of their home and the new appliances. Ms. Baker pointed out that the program actually improves neighborhoods, not just individual units. In some instances, homeowners living near a reconstructed unit will make repairs to their unit as well. Assisted units are brought up to Energy Star standards. Ms. Baker stated the amount that is being requested for the program. Ms. Baker reviewed the program's history including the racial/ethnic information of the households that had participated; one Asian, 179 African American, 150 White with 46 of those being of Hispanic ethnicity. A total of $8,800,000 in Home Improvement Program funds had been spent the program began back in 1985. She also reviewed the project information by census tracts. Ray Jordan asked about the program's surplus of $436,000 last July and "0" in July the following year. He asked how the budget balances could be so different. Ms. Baker explained that it is the manner in which the funds are "committed" based on HUD guidelines. The funds are sitting there but they will be committed by the end of the grant year. Mr. Jordan asked what is driving the increased spending. Ms. Baker indicated that they have 18 Page 60 households on the waiting list. Ms. Ross also explained how HUD's "timeliness test" works. She added that staff also re-engineered the program to include a certain number of rehabilitations rather than only doing reconstructions. Mr. Jordan asked about the bidding process. Ms. Baker explained that contractors can let staff know that they'd like to bid and as long as they meet certain requirements like insurance, references, etc. that they can bid on the projects. Ms. Ross pointed out that the funding is a loan to the homeowner so, if they would like, they can also find their own contractor as long as the contractor meets the program requirements and the bid is within the cost estimate completed by staff Ms. Baker reviewed the proposed loan/deferred forgivable loan stricture. It was noted that all participants pay something back depending on their income. Bob Gorton asked about the new census figures and how they might affect the program. Ms. Ross indicated that the new numbers should be out in April but, it probably won't affect the allocations for the 2011-12 year. She stated that much would depend on what Congress does regarding the funding for the 2011-12 grant year. Mr. Hudspeth asked about ranking the funding requests. Members agreed not to use a ranking form but, just to discuss which projects should be funded. Mr. Hudspeth suggested that they start with the "must" fund activities. It was noted that the Denton Affordable Housing Corporation (DAHC) is the only certified Community Housing Development Organization (CHDO) in Denton. They must receive a minimum of 15% of the City's HOME project funding or it goes back to HUD. Ms. Ross indicated that this would be $78,034 of the HOME funding that must be allocated to DAHC. Members agreed to this allocation. Members discussed Denton Christian Preschool. Mr. Briggs stated that there had been some previous discussion regarding using some of the stimulus funds to complete the preschool project so that it could be done more quickly. Ms. Ross stated that this could be done but, that there are some additional requirements. It was noted that this would probably not be a hardship for the daycare. Mr. Jordan indicated that there had been an auto accident and that the insurance may pay for some of the repairs. He stated that the project may go away. Ms. Ross stated that when they allocate the remaining stimulus funds she would propose that any residual funds go to housing projects so that they can be spent quickly without any additional formal amendments. Mr. Holl suggested that DAHC's amount not be limited to the 15% and asked that the committee discuss this further. Members discussed the Singing Oaks rental complex project. It was agreed that the Pinnacle Housing Group appeared to have other sources from which they could obtain funds to complete the project if they receive tax credits from the State. Mr. Hudspeth stated that the City's funding appeared to be easier funding to get but, it's not necessary. Mr. Briggs stated that Ms. Stephens asked what would happen if they didn't receive funding and she indicated that nothing would happen. Therefore, it seems apparent that they do not need the funding. Ms. Ross indicated that the Mayor had signed a letter of support for the project. Members agreed not to allocate any funding to the project. Mr. Jordan asked about the funding to be moved from the Minor Repair Program to the Homebuyer Assistance Program (HAP) for repairs on homebuyer units. Ms. Ross asked Luisa Rodriguez-Garcia to explain the need for founding for these minor repairs. It was Page 61 explained that the fiends would be spend for repairs that are not required based on the independent inspectors report but are still required by HUD regulations. Ms. Tedrick asked for a clarification regarding the repairs that are paid for through the program. She asked if the owner makes money off the house at closing are they required to pay the funding back. Ms. Rodriguez-Garcia says that many homeowners sell their homes "as is" and if they have to make additional repairs, they will not participate in the program. Ms. Rodriguez-Garcia also noted that homeowners these days are not making much money upon the sale of their property. It was noted that $50,000 of the Minor Repair Program (MRP) request was for this purpose and could be moved to the Homebuyer Assistance Program. Mr. Jordan suggested that $42,150 for the HAP come from HOME and the $50,000 for minor repairs come from CDBG. It was also noted that all the Home Improvement Program funding could come from HOME fiends. Mr. Hudspeth suggested that the $50,000 be moved from Minor Repair to the Homebuyer program. This would leave $125,000 for the Minor Repair Program. Ms. Ross indicated that MRP has to come from CDBG. Mr. Jordan asked if an addendum to the book could be prepared so that the members could provide that information to anyone who asked about the changes. Mr. Hudspeth asked about the Home Improvement Program request $405,985. It was noted all of the funding could come from HOME. Mr. Briggs pointed out that there were really no other programs/projects that could be paid from HOME fiends. Members agreed to give DAHC their total request of $85,000. Mr. Hudspeth asked how much HOME funding was still available. Ms. Watts noted that this is the total amount available. Mr. Gorton suggested the remainder of the HIP request come from CDBG fiends. Members agreed to provide the remaining $381,553 in HOME fiends and $24,432 to the Home Improvement Program. With $437,981 remaining members reviewed the Engineering Department requests. Mr. Hudspeth pointed out that the projects were in priority order. Mr. Briggs indicated that you couldn't provide less than the amount requested or the project could not be completed. Mr. Holl stated that they could include the top two priorities. He noted that if the top two are funded there is about $15,000 left. Members agreed to recommend funding for the first two projects - Clifton Street Sewer and Morse Street Sewer. Ms. Ross stated that project costs included staff costs and she did not believe the amount could be substantially cut. Mr. Holl said he would not advocate cutting other programs to fiend the next sewer project. Mr. Briggs suggested giving the remaining $15,000 to one of the housing programs. Mr. Gorton suggested the funding be allocated to the Minor Repair Program. The total for the MRP would now be $140,481. Members discussed recommending that the remaining funding be used for the MRP program. Mr. Jordan stated that there were other Engineering projects that affected a higher number of residents. Ms. Watts stated a concern about the amount of street repairs that the SE Denton neighborhood residents could handle. Mr. Gorton agreed that it was currently difficult to get around in the area near Fred Moore High School. Mr. Holl asked if some of the projects were in their final phase. Mr. Briggs stated that if this is a priority that it will eventually have to be done. If Engineering has prioritized them, then the Committee should support this. Mr. Gorton agreed with supporting the Engineering Department's priorities. Mr. Holl asked that the City constantly has commitments to do these activities but, CDBG allows these projects to jump forward. Ms. Ross pointed out that if the projects were due to be completed with local funds in the next two to three years, they could not be funded through CDBG because this would be Page 62 supplanting local funds with Federal fiends and this is not allowed. Members agreed to recommend funding to the Clifton Street Sewer and the Morse Street Sewer projects. Ms. Tedrick asked if the insurance company totally funded the repairs to Denton Christian Preschool, what would happen to the funding if it isn't needed. Mr. Jordan indicated that the daycare should know before the Committee's final decision whether the repairs will include all the improvements for which funding was requested. Mr. Hudspeth made a motion that the Committee approve the allocations as noted on the spreadsheet. The motion was seconded by John Siegmund. The motion was approved unanimously. Ms. Ross indicated that the House of Representatives had approved a 62.5% cut to CDBG. She noted that the Senate is expected not to cut CDBG at this same level. Members agreed that they would like to meet for a brief meeting around noon to review the proposals for expenditure of the stimulus funding. The meeting was adjourned. Page 63 Community Development Advisory Committee March 25, 2011 Draft Minutes* Members Present: Chris Briggs, Bob Gorton, John Siegmund, Cathy Tedrick, and Dorothy Watts - Vice Chair. Member Absent: Herbert Holl, Gerard Hudspeth and Ray Jordan Staff Present: Barbara Ross Dorothy Watts, Vice Chair, called the meeting to order. She asked members if there were any additional changes to the minutes of March 4th meeting. John Siegmund pointed out one minor correction on page 3. Bob Gorton made a motion to approve the minutes as corrected. Cathy Tedrick seconded the motion. The motion was approved unanimously. Barbara Ross explained the reallocation of the CDBG-R fiends. She stated that there was approximately $60,000 left after completion of the Redwood Sewer project and that staff recommends that the remaining fiends be allocated as follows: • Fred Moore Electrical Work - $14,164.87 • Denton Christian Preschool Playground - $13,895.00 • Minor Repair Program - $5,000.13 • MILK & Denia Playground Shade Strictures - $41,013.00 • Administration - $7,331.83 Ms. Ross noted that staff also recommends the transfer of $8,235.13 in CDBG-R administration funding to project funding. She commented that the Fred Moore Electrical work was included in the original list of projects but additional fiends have been allocated to the project. Also, a small amount of funding for the Minor Repair Program is being recommended so that any fiends remaining after all projects are complete, can be moved and used in that program without requiring additional amendments. This would ensure that all CDBG-R fiends are spent by the deadline and no stimulus funding is taken back by HUD. Mr. Siegmund asked what other members thought about the playground covers. There was some discussion regarding material covers vs. steel. It was noted that Parks Superintendent, Jim Mays, prior to the start of the meeting, indicated that the covers usually last 10 to 12 years. Ms. Watts asked where the cover would be placed at MEK. Ms. Ross responded that it would be at the back of the building over the playground area. Chris Briggs moved that the committee recommend that City Council approve the CDBG-R amendment. John Siegmund seconded the motion. The motion was approved. Ms. Watts asked Ms. Ross to explain the staff request regarding the Denton Affordable Housing Corporation (DAHC) 2011-12 allocation recommendation. Ms. Ross stated that the request and subsequent allocation of funding to the DAHC was not sufficient to meet the HOME Program regulations. DAHC, as the City's only certified Community Housing Development Organization (CHDO), must spend at least 15% of the City's HOME allocation Page 64 on projects. The $85,000 allocated to DAHC would leave only about $7,000 for operating costs. DAHC had requested $25,000 to assist with operating costs. Ms. Ross stated that the CDAC could take the $15,000 previously added to the Minor Repair Program budget and allocate it to provide DAHC with a total of $100,000. Approximately $78,000 would be dedicated to housing programs and projects, the remaining funding could be used for operating costs. Bob Gorton moved that the committee revise their recommendations to include the $15,000 in the DAHC allocation. Cathy Tedrick seconded the motion. The motion was approved unanimously. Ms. Ross stated that DAHC has also requested that they be allowed to use $23,000 in 2006 funding for operating costs. Ms. Tedrick asked about DAHC's 2006 allocation and the need for additional operating fiends. Ms. Ross stated that DAHC had received an allocation of $140,000 in 2006 for their Affordable Housing Opportunity Program. The fiends were to be used to assist with the purchase, renovation and subsequent sale of single-family units to income-eligible households. Ms. Ross noted that all of the fiends except the remaining $23,000 were expended on projects. She added that DAHC had previously used some of their income from the sale of properties to support their operations however, housing sales have slowed and this is the main reason that DAHC is requesting to use the 2006 residual funds for operating costs. Ms. Ross indicated that she had contacted the City's representative at the US Dept. of Housing & Urban Development to see if previous year funding could be reallocated for this purpose and it was approved. Mr. Briggs made a motion that the committee recommend an amendment to allow DAHC to use the $23,000 in 2006 funding for operating costs. Mr. Siegmund seconded the motion. The motion was approved unanimously. Ms. Watts asked if there was any further business. Ms. Ross told the committee members that the initial presentation to City Council by the committees would be on May 3rd at the work session. A public hearing on the proposed Action Plan will also be held that evening during the regular session. Staff will go to Council for final approval of the Action Plan on May 17tH The meeting was adjourned. *Minutes were reviewed by committee members and no revisions were requested. The CDAC has not met again and therefore has not had the opportunity to officially approve the minutes. Page 65 APPENDIX #1 - #3 SF424 Applications Page 66 r; Fl[ 1SF 424 Complete the fillable fields (blue cells) in the table below. The other items are pre-filled with values from the Grantee Information Worksheet. Date Submitted Applicant Identifier 756000514 Type of Submission Date Received by state State Identifier Application Pre-application Date Received by HUD Federal Identifier ❑ Construction ❑ Construction ❑ Non Construction ❑ Non Construction Applicant Information Jurisdiction CITY OF DENTON UOG Code Street Address Line 1 601 E. HICKORY, SUITE B Organizational DUNS 07-138-0190 Street Address Line 2 Organizational Unit City DENTON State TEXAS Department PLANNING & DEVELOPMENT ZIP 76201 Country U.S.A. Division COMMUNITY DEVELOPMENT Employer Identification Number (EIN): County DENTON 5-6000514 Program Year Start Date (MM/DD) 08/01/11 Applicant Type: Specify Other Type if necessary: Local Government: Township Specify Other Type U.S. Department o Program Funding Housing and Urban Development Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by Project(s) (cities, Counties, localities etc.); Estimated Funding Community Development Block Grant 14.218 Entitlement Grant CDBG Project Titles: Description of Areas Affected by CDBG Project(s) Housing rehabilitation, minor repair, public facility Denton, Texas improvements, provision of public services, homeownership assistance, and program administration. CDBG Grant Amount dditional HUD Grant(s) Leveraged Describe 877,903 (estimated) 1A Additional Federal Funds Leveraged $Additional State Funds Leveraged Locally Leveraged Funds $Grantee Funds Leveraged Anticipated Program Income Other (Describe) $10,000 Total Funds Leveraged for CDBG-based Project(s) Page 67 Home Investment Partnerships Program 14.239 HOME HOME Project Titles: housing rehabilitation, assistance to Description of Areas Affected by HOME Project(s) CHDO for acquisition, rehab and homeownership Denton, Texas assistance, tenant based rental assistance and program administration HOME Grant Amount Additional HUD Grant(s) Leveraged Describe 520,226 (estimated) Additional Federal Funds Leveraged Additional State Funds Leveraged Locally Leveraged Funds Grantee Funds Leveraged Anticipated Program Income Other (Describe) $45,000 Total Funds Leveraged for HOME-based Project(s) Housing Opportunities for People with AIDS 14.241 HOPWA HOPWA Project Titles Description of Areas Affected by HOPWA Project(s) HOPWA Grant Amount Additional HUD Grant(s) Leveraged Describe Additional Federal Funds Leveraged Additional State Funds Leveraged Locally Leveraged Funds Grantee Funds Leveraged Anticipated Program Income Other (Describe) Total Funds Leveraged for HOPWA-based Project(s) Emergency Shelter Grants Program 14.231 ESG ESG Project Titles Description of Areas Affected by ESG Project(s) ESG Grant Amount Additional HUD Grant(s) Leveraged Describe Additional Federal Funds Leveraged Additional State Funds Leveraged Locally Leveraged Funds Grantee Funds Leveraged Anticipated Program Income Other (Describe) Total Funds Leveraged for ESG-based Project(s) Congressional Districts of: Is application subject to review by state Executive Order Applicant Districts 26 Project Districts 26 12372 Process? Is the applicant delinquent on any federal debt? If ❑ Yes This application was made available to the "Yes" please include an additional document state EO 12372 process for review on DATE explaining the situation. ❑ No Program is not covered b EO 12372 ❑ Yes ® No ® N/A Program has not been selected by the state for review Person to be contacted regarding this application First Name Barbara Middle Initial L. Last Name Ross Title CD Administrator Phone (940) 349-7235 Fax (940) 349-7753 eMail brossCa)cityofdenton.com Grantee Website - www.citvofdenton.com Other Contact Signature of Authorized Representative - George C. Campbell, City Manager Date Signed Page 68 APPENDIX #4 Certifications Page 69 LOCAL GOVERNMENT CERTIFICATIONS FOR CDBG AND HOME PROGRAMS In accordance Nvith the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing The Jurisdiction Nvill affirmatively further fair housing, which means it Nvill conduct an analysis of impediments to fair housing choice Nvithin the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan It Nvill comply Nvith the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(4) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace It Nvill or Nvill continue to provide a drug-free Nvorkplace by: 1. Publishing a statement notifying employees that the unlav,-ful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's Nvorkplace and specifying the actions that Nvill be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free aNvareness program to inform employees about - a. The dangers of drug abuse in the Nvorkplace b. The grantee's policy of maintaining a drug-free -,workplace c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the Nvorkplace 3. Malting it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - a. Abide by the terms of the statement; and b. Notify the employer in Nvriting of his or her conviction for a violation of a criminal drug statute occurring in the Nvorkplace no later than five calendar days after such conviction; 5. Notifying the agency in Nvriting, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to ever- grant officer or other designee on whose grant activity the convicted employee Nvas working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency, 7. Making a good faith effort to continue to maintain a drug-free -,workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Page 70 Anti-Lobbying To the best of the jurisdiction's knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the aNvarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renekval, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subaNvards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction The consolidated plan is authorized under State and local lave (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent kvith the strategic plan. Section 3 It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date George C. Campbell Name Citv Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 71 Specific CDBG Certifications The Entitlement Communitv certifies that: Citizen Participation It is in full compliance and folloNving a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan It is folloNving a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds It has complied Nvith the folloNving criteria: Maximum Feasible Priority - With respect to activities expected to be assisted Nvith CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or Nvelfare of the community, and other financial resources are not available); Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2011, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; Special Assessments - It 'kvill not attempt to recover any capital costs of public improvements assisted Nvith CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties oN-,ned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part hvith CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property 'kvith respect to the public improvements financed by a source other than CDBG funds. The jurisdiction 'kvill not attempt to recover any capital costs of public improvements assisted Nvith CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property kvith respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties oN-,ned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Page 72 Excessive Force It has adopted and is enforcing: A policy prohibiting the use of excessive force bylaw enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations Nvithin its jurisdiction; Compliance With Anti-discrimination laws The grant Nvill be conducted and administered in conformity Nvith title VI of the Civil Rights Act of 1964 (42 USC 20004), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint Its activities concerning lead-based paint Nvill comply Nvith the requirements of part 35, subparts A, B, J, K and R, of title 24; Compliance with Laws It Nvill comply Nvith applicable laws. Signature/Authorized Official Date George C. Campbell Name Citv Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 73 Specific HOME Certifications The HOME participating jurisdiction certifies that: Tenant Based Rental Assistance If the participating jurisdiction intends to provide tenant-based rental assistance: The use of HOME funds for tenant-based rental assistance is an essential element of the participating jurisdiction's consolidated plan for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. Eligible Activities and Costs it is using and Nvill use HOME funds for eligible activities and costs, as described in 24 CFR § 92.205 through 92.209 and that it is not using and Nvill not use HOME funds for prohibited activities, as described in § 92.214. Appropriate Financial Assistance before committing any funds to a project, it Nvill evaluate the project in accordance Nvith the guidelines that it adopts for this purpose and Nvill not invest any more HOME funds in combination Nvith other Federal assistance than is necessary to provide affordable housing; Signature/Authorized Official Date George C. Campbell Name Citv Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 74 APPENDIX TO CERTIFICATIONS Instructions Concerning Lobbying and Drug-Free Workplace Requirements Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for malting or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Drub Free Workplace Certification By signing and/or submitting this application or grant agreement, the grantee is providing the certification. The certification is a material representation of fact upon which reliance is placed when the agency aNvards the grant. If it is later determined that the grantee knoNvingly rendered a false certification, or other vise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may tape action authorized under the Drug-Free Workplace Act. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the Nvorkplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known Norkplaces constitutes a violation of the grantee's drug-free Norkplace requirements. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where Nvork under the grant tapes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). If the Nvorkplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the Norkplaces in question (see paragraph three). 8. The grantee may insert in the space provided below the site(s) for the performance of Nvork done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are Norkplaces on file that are not identified here. The certification with regard to the drug-free Norkplace is required by 24 CFR part 21. Place Name Street City Count State Zip Community Development 601 E. Hickory, Denton Denton TX 76205 Department Suite B Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug- Free Workplace common rule apply to this certification. Grantees' attention is called, in Page 75 particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of polo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of Nvork under a grant, including: a. All "direct charge" employees; b. all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and c. temporary personnel and consultants who are directly engaged in the performance of Nvork under the grant and who are on the grantee's payroll. This definition does not include Nvorkers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll, or employees of subrecipients or subcontractors in covered Nvorkplaces). Note that by signing these certifications, certain documents must be completed, in use, and on file for verification. These documents include: 1. Analysis of Impediments to Fair Housing 2. Citizen Participation Plan 3. Anti-displacement and Relocation Plan Signature/Authorized Official Date George C. Campbell Name Citv Manager Title 215 E. McKinney Street Address Denton, Texas 76201 City/State/Zip (349) 349-8307 Telephone Number Page 76 APPENDIX #5 Annual Housing Goals Page 77 Annual Housing Completion Goals (Table 3B) Grantee Name: Expected Annual Actual Annual Resources used during the period Number of Units Number of Units Program Year: To Be Completed Completed CDBG HOME ESG HOPWA BENEFICIARY GOALS (See. 215 Only) Homeless households ❑ ❑ ❑ ❑ Non-homeless households 68 ® ® ❑ ❑ Special needs households 8 ❑ ® ❑ ❑ Total Sec. 215 Beneficiaries* 76 ® ® ❑ ❑ RENTAL GOALS (See. 215 Only) Acquisition of existing units ❑ ❑ ❑ Production of new units ❑ ❑ ❑ Rehabilitation of existing units 8 ❑ ® ❑ ❑ Rental Assistance ❑ ❑ ❑ Total Sec. 215 Affordable Rental 8 ❑ ® ❑ ❑ HOME OWNER GOALS (See. 215 Only) Acquisition of existing units ❑ ❑ Production of new units ❑ ❑ Rehabilitation of existing units 43 Homebuver Assistance 25 ® ® ❑ Total Sec. 215 Affordable Owner 68 ® ® ❑ ❑ COMBINED RENTAL AND OWNER GOALS (See. 215 Only) Acquisition of existing units ❑ ❑ ❑ Production of new units ❑ ❑ ❑ Rehabilitation of existing units 51 ® ® ❑ ❑ Rental Assistance ❑ ❑ ❑ Homebuver Assistance 25 ® ® ❑ Combined Total Sec. 215 Goals* 76 ® ® ❑ ❑ OVERALL HOUSING GOALS (Sec. 215 + Other Affordable Housing) Amoral Rental Housing Goal 8 ® ® ❑ ❑ Annual Owner Housing Goal 68 ® ® ❑ ❑ Total Overall Housing Goal 76 ® ® ❑ ❑ Page 78