HomeMy WebLinkAboutResolutions R98-001 to R98-067 RESOLUTION NO ~
A RESOLUTION ADOPTING RECOMMENDATIONS OF THE DALLAS REGIONAL MO-
BILITY COALITION EXECUTIVE COMMITTEE ("DtLMC") FREEWAY MANAGEMENT
WORKGROUP, REQUESTING DRMC MEMBER AGENCIES TO ESTABLISH FREEWAY
MANAGt~MENT AND INCIDENT REMOVAL FROM MA~OR ROADWAYS AS A PRIOR-
ITY, EN(~OURAGING AREAfI~GIONAL ALLIANCES TO AFFECT EFFECTIVE FREE-
WAY MANAGEMENT PRACTICIES, EXPRESSING APPRECIATION TO MEMBERS OF
THE WOp, KGROUP FOR CONTINUED EFFORTS TO IMPROVE MOBILITY, AND PRO-
VIDING AN EFFECTIVE DATE
WHEREAS, the Dallas Regional Mobility Executive Committee ("DRMC") recognizes
the vital relationship between mobfllty and effeetave transportation management practices for the
continued leeonomlc viability of the entire area, thus impacting the quality of life for all catlzens,
and
WHEREAS, DRMC acknowledges funding restrictions on providing addatlonal expanded
capaeaty f~r major roadways m the area coupled wath federal a~r qualaty conformaty reqmrements
requare transportation leaders and local governments to address use of existing roadway capacity
in a more ~ffect~ve manner, and
WHEREAS, DRMC adopted as a part of the annual work plan a focus on freeway man-
agement and xncldant removal from major roadways dunng peak congestion periods an an effort
to addressl mobflaty and mr quality reqmrements, and
WHEREAS, a Freeway Management Workgroup was established by DRMC to ~dentffy
issues an~ potential enhancement to existing practices of agencies involved an the detection, re-
sponse, and clearance of incidents from major roadways dunng peak traffic periods, and
WHEREAS, the Workgroup has submitted recommendations to set m motion various
projects ~d programs to address freeway management and lncadent clearance an the Dallas area,
NOW, THEREFORE,
THE CO!4J'NCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the recommendations of the DRMC Freeway Management Work-
group, which are attached hereto as Attachment "A" and made a part of tins resolution for all
pmposes~are hereby adopted by the City of Denton for support, additional refinement, and xm-
plementallon as appropriate
SECTION II. That the City Manager forward copies of thas resolutaon to DRMC to
knowledl~e freeway management as a cntacal element affecting mobility, supporting implemen-
tation of ~he aforementioned recommendations as a priority for departments and rhvlslons of af-
fected lo~al governments, and encouraging area/regional alliances to achieve enhanced mobthty
and congestion relief, and forward copies of flus resolution to the Dallas District Engmear for
TxDOT, ~e Dallas Area Rap~d Transit Authority (DART), the Regional Transportation Council
(RTC), and the Texas Transportation Institute and participating agencies with an express]on of
apprecmt]on for cooperatave efforts to develop these recommendations and methods for imple-
mentation
SECTION III. That tbas ordinance shall become effective xmme&ately upon ars passage
and approval
PASSED ~ ~PPROWD this the ~ day of~~/~ ~998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 2
Attachment "A"
DALLAS REGIONAL MOBILITY COALITION
FREEWAY MANAGEMENT WORKGROUP
Items Considered for Action/Implementation
Priority / F~rst Level
ENHANCED RELATIONSHIP / ENCOURAGEMENT WITH RUSH-HOUR NEWS
MEDIA (TRAFFIC REPORTS/HELICOPTERS) TO HAVE PSA'S READY TO GO
FOR CERTAIN AREAS ON ALTERNATE ROUTES, 'MOVE-IT' REMINDERS,
ETC
2 REFERENCE MARKERS BY TXDOT / TTA / LOCALS TO PROVIDE EXACT
LOCATIONS TO ALLOW CELLULAR PHONE REPORTS TO PINPOINT
LOCATION, LANES, DIRECTION OF TRAVEL, OF INCIDENTS---THUS
ENHANCING RESPONSE TIMES OF NEEDED EQUIPMENT / PERSONNEL
3 UNIFORM POLICY / PROCEDURE FOR LOCAL AGENCIES REGARDING
AUTHORITY TO ORDER HEAVY EQUIPMENT TO CLEAR ROADWAYS
4 CENTRALIZE CONTACT POINT TO TXDOT FROM LOCAL AGENCIES FOR
ASSISTANCE REQUESTS, HEAVY EQUIPMENT, ETC (MAYBE AT NEW
SATELLITE CENTER) TXDOT WOULD MAINTAIN INVENTORY AND ACCESS
NEAREST REQUIRED EQUIPMENT / PERSONNEL TO ASSIST IN ROADWAY
CLEARANCE
5 CLARIFY AND ENCOURAGE UNIFORM DISCRETIONARY POLICY WITH LAW
ENFORCEMENT AGENCIES ON USE OF 'PUSH-BUMPERS' TO IMMEDIATELY
CLEAR ROADWAY DURING PEAK HOURS OF STALLED/DISABLED
VF. HICLES TO A PLACE OF SAFETY OFF TRAVELED PORTION OF
ROADWAY
6 DEVELOP AND ENCOURAGE ADOPTION OF 'CORRIDOR' CONCEPT FOR
TOWING / WRECKER SERVICE---THIS WOULD REQUIRE AGREEMENT WITH
ALL AREA CITIES AS TO CONTRACT, RESPONSE TIME, EQUIPMENT, ETC
7 IMPLEMENT, THROUGH INSURANCE COMPANIES, AAA, ETC, ENHANCED
AWARENESS AND CONSTANT REMINDERS (MEDIA, INSURANCE CARDS,
PI~BLIC1TY) OF 'MOVE-IT' LAW TO REQUIRE MOTORISTS INVOLVED IN
MINOR ACCIDENTS ON FREEWAYS TO IMMEDIATELY MOVE VEHICLES
FROM LANES OF TRAFFIC
8 ADDRESS ISSUE WITH INVESTIGATIVE AGENCIES FOR ROADWAY
INCIDENTS THE BALANCE BETWEEN INVESTIGATIVE EFFORT AND TIME
FOR DOCUMENTATION OF INCIDENT WITH COST / IMPACT OF
DELAYS/CLOSURES DURING PEAK HOURS ..... NO ATFEMPT TO SACRIFICE
SAFETY OF RESPONDERS, RATHER HOW CAN ROADWAY BE CLEARED IN A
TIMELY FASHION DURING THE MORNING AND EVENING PEAK TRAFFIC
PERIODS
Fwymanpraug97mydo~
Second Level - Areas to Address
CHANGE IN STATE LAW TO ALLOW 'TICKET BY MAIL' FOR LANE
VIOLATIONS AND ALLOW VIDEO ENFORCEMENT CAPABILITY (HOV ISSUE)
2 ENHANCE INITIAL TRAINING OF LAW ENFORCEMENT / FIRE / EMS
PERSONNEL ON PRIORITY TO REDUCE LANE BLOCKAGE AND DECREASE
ROADWAY CLEARANCE TIMES FOR INCIDENTS ON MAJOR ROADWAYS
DURING PEAK HOURS ...... AGAIN, REEMPHASIZE NO DESIRE TO IMPEDE
SAFETY ISSUES FOR RESPONDERS, RATHER HOW CAN INCIDENT BE
ADDRESSED AND ROADWAY CLEARED MORE QUICKLY
3 ADDRESS LIABILITY ISSUES (LEGAL) FOR TIME REQUIRED FOR EMS
PERSONNEL TO GET INFORMATION AND COMPLETE PAPERWORK AT
SCENE OF INCIDENT ...... H-lIS WOULD PROB,kBI. Y REQUIRE UNIFORM
POLICY FOR EMS RESPONDERS
4 DEVELOP / IMPLEMENT FOCUSED INCIDENT COMMAND PROCEDURE FOR
INCIDENTS ON MAJOR ROADWAYS DURING PEAK HOURS FIND
INCENTIVE FOR IN-SERVICE TRAINING / ROLL-CALL TRAINING TO
REENFORCE THE DESIRE PRACTICES WITH POLICE/FIRE/EMS
5 POTENTIAL TO EXPAND TXDOT COURTESY PATROL EQUIPMENT AND
ROADWAY CLEARANCE CAPABR21T (NOT REPLACING / COMPETING WITH
WRECKER SERVICE, RATHER IMMEDIATE CLEARANCE OF ROADWAY AND
MOVIbIG VEHICLES/ITEMS TO A PLACE OF SAFETY OFF TRAVEL LANES)
6 UNIFORM POLICY / SEEK WAIVERS FOR HAZ-MAT REQUIREMENTS FOR
CERTAIN INCIDENTS DURING PEAK HOURS----BALANCE LIM1TED THREAT
OF MATERIALS TO COST/IMPACT ON MOTORISTS DURING PEAK HOURS
7 LOCAL SCHEDULING OF PUBLIC WORKS AND TRAFFIC SIGNAL
PERSONNEL TO PROVIDE IMMEDIATE RESPONSE DLrRING PEAK HOURS
FOR EQUIPEMENT, SIGNAL REPAIR, ALTERNATE ROUTING METHODS
8 COORDINATE WITH TXDOT MORE EFFICT1VE 18 WHEELER / CARGO
CLEARANCE AUTHORITY AND QUICKEST METHOD TO GET ROADWAY
REOPENED
9 POSSIBILITY / PRACTICALITY OF ONE LAW ENFORCEMENT AGENCY
HANDLING INCIDENTS ON 'CORRIDOR' ROADWAYS (LOCAL AGENCY,
COUNTY, STATE)
Fw'ananpraug97mydoc
A SMALL AREA PLANNING PROGRAM FOR FRY STREET AND DOWNTOWN AREAS,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Caty of Denton as formulating a new comprehensave plan to be adopted
by the City Council, and
WHEREAS, the Small Area Plannm~ Program wall address specafic areas m greater detail
than in the comprehensive plan by provldmg addltaonal analysis, recommendations, and
amplementatlon gmdelmes for specafic areas m Denton and the extraterritorial junsdactlon, and
WHEREAS, residents, business owners and other stakeholders m the specafic area wall
assast m developmg land use, transportation, and pubhc maprovements needs for thear area, and
WHEREAS, a small areaplanmng document or development grade wall be created for
each area to provade darectaon on long-term and short-term plannmg ~ssues for the specdic area
while demonstratmg consistency wath the comprehensive plan, and
WHEREAS, the Small Area Planmng Program is an anterthscaphnary approach to
planning relying on and reqmrmg the cooperation ofa_ll Caty of Denton departments and other
governmental enUues and the approval of the Denton uaty Council, and
WHEREAS, annually, the Planmng and Development Depat:hitent wall subrmt to the City
Council the Small Area Planning Program and will provade reformation on current and prevaous
small area plans, the status of unplementaUon projects, and a last of potentaal areas for
consaderat~on and prlorltlZaUOn for the next year, and
WHEREAS, the plaanmg depa~hi~ent recommends that small area plans be developed for
the Fry Street and Downtown areas, NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
Seeuon I. That the Denton Caty Council adopts the Small Area Planning Program and
authorizes the lmtmuon of small area plans for the Fry Street and Downtown areas
Section II. That this resolution shall become effective nnmedmtely upon its passage and
approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
s \shared\resoluuon\sma]l area plan doc
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
A RESOLUTION RECOGNIZING THE DIRE NEED OF A SUBSTANTIAL INCREASE IN
TRANSPORTATION FUNDING AND SUPPORTING THE PRINCIPLES OF THE BYRD-
GRAMM AMENDMENT NOW PENDING IN CONGRESS AS ONE MEASURE TO PRO-
VIDE ADDITIONAL FUNDING FOR MOBILITY, AND DECLARING AN EFFECTIVE
DATE
WHEREAS, the Nation's transportation mfrastmcture plays an ~ntegral part ~n the
Uon's economy and the Texas transportation ~s a key component of the nataonal network, and
WHEREAS, the U S Department of Transportation has reported that the nation's trans-
portation network ~s m d~re need of a substanUal anerease m the level of financial investment to
bnng the system up to standards for safe and efficient operation and to meet expanding trans-
portation demands, and
WHEREAS, providing all states and the nat~on as a whole w~th the benefits of mobility
and economic prosperity and ensunng an effective eounectton between the vital Texas transpor-
tation system and that of the rest of the nation reqmres steadfast support for the nation's trans-
portation network as we enter the 21st century, and
WHEREAS, the upcoming reanthonzat~on of federal surface transportation programs
represents a ent~eal opportunity to ensure that federal transportaUon funds prowded to support
the naUon's transportation network are sufficient to support an effeetave response to the true
needs of a modem transportation system, and
WHEREAS, Amendment #1937, known as the Byrd-Gramm Amendment, to S 1173, the
Intermodal Surface Transportation Efficiency Act of 1997, was ~ntrodueed ~n the Senate on Oc-
tober 22, 1997 by Senator Robert Byrd of West Vlrguna and Senator Phil Gramm of Texas, and
WHEREAS, the enactment of S 1173 as amended by the Byrd-Gramm Amendment
would authorize the use of an addmonal $6 1 bflhon per year from the H~ghway Account of the
Federal H~ghway Trust Fund for haghway ~nfrastmcture, malang an additional $30 9 bflhon m
contract authority available for lughways dunng a five-year period, and
WHEREAS, the increases m federal funding support for surface transportation prowded
by the Byrd-Gramm Amendment are fully funded through federal motor fuel tax revenues re-
cently redirected to the H~ghway Trust fund by the Taxpayer Relief Act of 1997, and
WHEREAS, the Texas Transportation Commission (TTC) approved a resolution on De-
cember 18, 1997, encouragang the Texas Congressional Delegataon and members of the Texas
transportation commumty to support and work toward the successful adoption of the pnne~ples
~neluded m the Amendment, and
WHEREAS, the Dallas Regional Mobility Coalmon Exeent~ve Committee approved a
resolution suppo~ng the Byrd-Gramm Amendment, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ECTION I That the Caty Council supports the pnnclples represented by the Byrd-
Gramm Amendment to prowde an ancrease m federal funding for surface transportation
SECTION II. That the Caty Council encourages the Texas Congressaonal DelegaUon and
other members of the Texas transportaUon commumty to support and work toward the successful
adoption of the pnncaples included m that Amendment
SECTION III. That the Caty Manager xs dareeted to send tree, correct, and complete
copaes of tlus resolutmn to Senators Phil Gramm and Kay Bmley Hutctunson and to other mem-
bers of the Texas Congressional DelegaUon
SECTION IV That thas resoluUon shall become effecUve ammedmtely upon ats passage
and approval
PASSED AND APPROVED fins the ~0~ day of q~--~ , 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 2
NOTE' Replaced by Resolution No R2000-028
A RESOLUTION OF THE CITY OF DENTON, TEXAS APPROVING THE ELIGIBILITY OF
THE CITY OF DENTON TO PARTICIPATE IN TAX ABATEMENTS, ESTABLISHING
GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT AGREEMENTS, AND
DECLARING AN EFFECTIVE DATE
WHEREAS, the C~ty's current tax abatement pohcy was estabhshed as a result of the
estabhshment of Enterprise Zones I and II by Ordinances No 90-066 and 96-067 passed on May
1 and May 18, 1990, and
WHEREAS, the tax abatement policy has expared smce ~t ~s only effective for two years
from the date of adoption m accordance wtth Section 312 002(c) of the Texas Tax Code
VATCS ,and
WHEREAS, the City desires to mestabhsh ~ts Tax Abatement Policy to estabhsh
gmdehnes and criteria governmg tax abatement agreements m accordance wath Chapter 312 of
the Tax Code and to declare that ~t elects to become eligible to participate ~n tax abatement, and
WHEREAS, prowdlng tax abatement and other economic development ancentlves under
appropnale circumstances w~thm the City and ats extratemtonal junsdmt~on wall hkely
contribute to mgmficant investment m the City, expansion and dlvermficat~on of the tax base and
the creation of jobs, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SI~CTION I That the pohcy.gmdelmes and criteria found in the Denton Pohcy for Tax
Abatement, attached hereto as Exhibit "A" and made a part of th~s Resolution and incorporated
herean for all purposes as though remted verbatim are approved and adopted
SECTION II. That pursuant to Section 312 002(c) of the Texas Tax Code, the guldehnes
and criteria adopted herren shall be effective for two years, dunng whmh period the guldehnes
and cnterm may be amended or repealed only by a vote of three-fourths of the members of the
City Council
SECTION III The C~ty Council hereby elects to become ehgable to participate ~n tax
abatement and the Caty Council wall prowde certmn tax ~ncent~ves apphcable to bumness
enterprises in various reinvestment zones which are estabhshed throughout the C~ty in
accordance w~th applicable provlmons of Chapter 312 of the Tax Code The gmdehnes and
criteria are to be estabhshed as follows the Ctty shall abate taxes on the ~ncrease ~n the value of
real and personal property improvements for new, expanded, and modernized bamc andustnes,
corporate office headquarters, and dmtnbut~on centers and other ehgable commercml and
industrial properties in demgnated remvestment zones created under Sectaon 312 201 of the Tax
Code, ~ncluchng, without hm~tatlon, the Trammell Crow/Umted Copper Industries project The
level of abatement shall be based on the rate of improvements of personal and real property an
accordance with the Tax Abatement Pohcy set forth in the gmdehnes and criteria of the attached
Exhibit "A", which exhibit ~s made a part ofth~s resolution for all purposes as ~f written word for
word herein
~ That th~s resolution shall become effective ~mmedmtely upon ~ts passage
and approval, at a regular meeting of the C~ty Council of the C~ty of Denton, Texas on th~s the
27th day of January, 1998, at which meeting a quorum was present and the meeting was held in
accordance w~th the prows~ons ofTEX GOV'T CODE §551 001, et seq
PASSED AND APPROVED this the~q}7- dayof ~ ~,~t ~ ~.~ ,
1998
J~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
DENTON POLICY FOR
TAX ABATEMENT
I GENERAL PURPOSE AND OBJECTIVES
The C~ty of Denton (C~ty), the Denton Independent School D~stnct (DISD) and Denton County
are committed to the promotion of tugh quahty development m all parts of the e~ty and to an ongoing
~mprovemant m the quality of hfe for ~ts e~t~zens Insofar as these objectives are generally served by the
enhancement and expansion of the local economy, the City of Denton, DISD, and Denton County, w~ll
on a case-by-case bas~s, give consideration to prowdmg tax abatement as a stimulation for economic
development m Denton It ~s the pohey of the C~ty and DISD that smd consideration w~ll be provided m
accordance w~th the procedures and er~term outhned ~n th~s document Nothing hereto shall ~mply or
suggest that the C~ty, DISD or Denton County are under any obhgat~on to prowde tax abatement to any
apphcant All appheants shall be considered on a case-by-case bas~s
Tax inducements, as described m th~s pohcy, w~ll be considered for new, expan&ng and
modenuzmg bas~¢ industries, corporate office headquarters and d~stnbut~on centers
II. CRITERIA
Any request for a tax abatement shall be rewewed by the Joint Committee on Tax Abatement,
stud Committee being comprised of two elected officmls from each of the taxing ent~t~es ~nvolved One
additional staff person from each jur~s&ct~on shall be appointed to serve as a nonvoting, ex officio
member of the committee
The Joint Committee on Tax Abatement serves as a recommending body to the taxing ent~t~es
regarding whether economic development incentives should be offered m each md~wdual case Their
recommendation shall be based upon an evaluation of the following cmerta which each apphcant w~ll
be requestedto address m narrative format
1 H~story and Philosophy of the firm
a) Nature of products and geographic penetration
b) Financial statemems for past five years or hfe of firm whichever is shorter
c) Chronology of plant opemngs, closings, & relocations over past 15 years
d) Record of mergers and financial restmctunng dunng last five years
e) Record of employment and tralmng prowded for handicapped and chromcally
unemployed
2 ProJect Specifications
a) Provide plat of project including all roadways, land use and zomng w~thm 500 feet of
site Legal descr~ption of site is reqmred
b) Is the project a relocation or new faclhty to expand operations If relocation, g~ve
current location
c) ProJect investment m real and personal property at the above s~te for each of the next
ten years
d) Project permanant employment for next ten years resulting from the new ~nvestment
Indicate number of jobs that will be filled by people from outside the metroplex
Include esnmated average annual salary on new jobs
e) What is the total current payroll and the projected payroll when project is completed
f) Describe employment trmmng reqmrements ~ncluthng prov~stons for trmmng
hand,capped and chronically unemployed ~f apphcable
g) ProJect utthty (gas, electricity, water, etc ) usage for each of next ten years
h) Estimate the infrastructure (streets, sewer, water, etc ) reqmrements necessary to
operate the new fac~hty
Estimate the annual operating budget for next ten years
W~ll the occupants of the project be owner or lessees9 If lessees, are occupancy
commitments already existing9
k) G~ve the name, address, and telephone number of contact person
3 The commumty ~mpact of the project
a) ProJect the value of real and personal property that will be added to the tax rolls
b) Using current rates estamate the additional taxes that wall be d~rectly generated by the
project w~thout consadermg any proposed abatement for each of the affected taxang
entrees for each of the next ten years
c) For each taxing entity indicate the amotmt of tax abatement requested for each of next
ten years
d) Estamate the mcrease m anvestment ~n other local businesses resultang from the project
for the next ten years
e) Estimate the increased housing needs ~n the area resulung from the project for ten
years
f) Estamate the mcrease m the tax rolls for each taxing entity for the next ten years
g) Estamate the infrastructure construction that would be reqmred because of the growth
resultmg indirectly from the project
h) Provade the speeffie detml of any businesses/residents that will be d~splaced and
assastance that wall be avmlable from the requesting entity
0 Estimate the mcrease m students by grade level resultang from the project including
the multapher effect 0nthrect growth) for the next ten years Show the increase for
each impacted school d~stnct
j) Provade description of any hastoncally s~gmficant area ~ncluded within the project's
area If any, g~ve detml of how the h~stormally s~gmficant area will be preserved
k) Prowde ~nformatxon of any detrimental effect on ex~st~ng businesses, recreational
areas, and resldentml area
l) Provade detads of any benefit to an area of the commumty targeted for
rewtahzat~on/redevelopment
III VALUE OF INCENTIVES
The criteria outlmed ~n Section II will be used by the Joint Committee on Tax Abatement ~n
determ~mng whether or not at ~s ~n the best ~nterests of the affected taxing entat~es to recommend that tax
abatement be offered to a partmular faclhty Specffic considerations will include the degree to whmh the
~ndavadual project furthers the goals and objectives of the community, as well as the relatave ~mpact of
the project New, expandang and modermzang businesses wdl be ehglble for abatement ff the m~mmum
threshold, as described below, xs met
Once a detenmnat~onhas been made that a tax abatement should be offered, the value and term of
the abatement will be determined by referencing the follovang table
TABLE 1 Estabhshes maximum length of abatement according to assessed real property value of
~mprovements and personal property
MAXIMUM MAXIMUM
VALUE OF STRUCTURE YEARS OF PERCENTAGE OF
AND PERSONAL PROPERTY ABATEMENT ABATEMENT
100 10 25%
80 9 25%
65 8 25%
50 7 25%
35 6 25%
20 5 25%
15 4 25%
10 3 25%
5 2 25%
If an ex,sUng business is located wtth~n the boundaries of the partm~pat~ng jurisdictions and
decides to expand or relocate w~thm such boundaries, the actual value of the structure shall be
multlphed by 125% prior to utfl,z~ng Table 1 If the expanding or relocating bus~ness ~s abandoning any
property or ~mprovements w~th~n the jurisdictions, the value of this abandoned property shall be
subtracted from the new value figure prior to multiplying the value by 125%
The tax abatement shall not apply to any port~on of the land value of the project
Apphcants agreeing to extend ~nfrastructure improvements (streets and utthtles) to ~mprove
other ~ndustnal s~tes which can be marketed by the Chamber of Commerce Economic Development
D~rector may be eligible for a greater tax benefit than those described above by utlhzlng tax increment
financing procedures The offering of such an inducement will be evaluated on a case-by-case basis
dependent upon the apphcant's ability to make avmlable ~mproved industrial sites
Preliminary Aonhcatlon
IV. PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City or DISD consider providing tax
abatement to encourage location or expansion of facilities within thc limits of the jurisdictions shall be
required to comply with the following procedural guidelines Nothing within these guidelines shall
imply or suggest that e~ther the City, or DISD, ~s under any obligation to prowde tax abatement to any
apphcant
A Applicant shall complete the attached "Application for Tax Abatement"
B Apphcant shall address all criteria outlined in Section II above m narrative form
C Apphcant shall prepare a map showing thc precise location of the property and all
roadways within 500 feet of the s~te
D If the property ~s described by metes and bounds, a complete legal descnpl~on shall bc
provided
E Applicant shall complete all forms and information detailed m items A through D above
and submit them to the City Manager, City of Denton, 215 E McK~nncy, Denton, TX
76201
Annhcatlon Review Stens
F All information in the application package detmled above will be rewewed for
completeness and accuracy Additional reformation may bc requested as needed
G The application wall be distributed to the appropriate City and DISD departments for
internal review and comments Addlt~onahnformat~on may be requested as needed
H Cop~es of the complete application package and staff comments will be provided to the
Joint Committee on Tax Abatement
Consideration of the Annlleatlon
I The Joint Committee on Tax Abatement will consider the apphcat~on at a regular or called
meeting(s) Add~t~onahnformat:on may be requested as needed
J The recommendatlon of the Joint Committee on Tax Abatement will be forwarded, w~th
all relevant materials, to the chief adm~mstrat~ve office of each taxing entity
K I~ The C~ty Councd of Denton 0t~d~ lt~ g~la~ a tax aba~elllel~ ~ shl~tl :..ay consider a
resolution calhng a pubhc heanng to consider estabhshment of a tax remvestment ~otw in
L The C~ty Council of Denton Z~ m~Y hold thc pubhc hearing and dctc~mc whc~er thc
pro~ect ~s "fc~blc ~d prac~mal ~d would be of bancfit to ~c l~d to bc ~ncluded ~n thc
zone ~d m~m~pahty i~~ ~ ~c~0R ~ 12.201" Specml cons~dcratmn shall
be g~ven to pohc~es noted ~n ~e Denton Development PI~ when designating a t~
remves~ent zone
M The Cxty Councxl of Denton may consxder adoption of ~ ordinate des~gnatxng ~e area
described in the legal descnptxon of the proposed project as a commermal/mdusmal t~
abatement zone
N The Cx~ Co.cd may consxder adoptxon of ~ ~ Or resolution approwng the
te~s ~d eond~tmns of a comract between ~e C~ ~d ~e apphc~t governing the
prowsmn of ~e tax abatement ~d ~e commitments of ~e apphc~t ~l~g ail ~e
Should corem,meres subsequemly nm be satisfied, the
t~ abatement shall be null ~d void, ~d all abated t~es shall be prod ~mmedtately to the
C~ty of Denton ~d all other t~mg jurlsdmt~ons p~c~pat~ng ~n the t~ abatement
agreement Provlslonst0 this effect shall be mcorporatedmto the agreement
O The governing bodies of the various taxing ent~t~es may consider ratfficat~on of and
part~expat~on in the tax abatement agreement between the Cay of Denton and the
appheant
Any tax abatement agreement will address various ~ssues, including, but not hm~ted to, the
following
1 General description of the project,
2 Amount of the tax abatement and percent of value to be abated each year,
3 Method of calculating the value of the abatement,
4 DuraUon of the abatement, ~ncludlng commencement date and termination date,
5 Legal descnpt~onofthe property,
6 Kand, number, locataon and t~metable of planned ~mprovement~
7 Specffic terms and conditions to be met by apphcant;
8 The proposed use of the famhty and nature of construction,
9 Contractual obhgat~ons ~n the event of default, wolat~on of terms or conditions, dehnquent
taxes, recapture, adm~mstrat~on and assignment
Annual Evaluation
Upon completion of construction, the Jmnt Committee on Tax Abatement shall annually
evaluate each famhty rece~wng abatement to ~nsure comphance w~th the agreement and report possible
violations of the agreement to the taxing entlt~es
Transfer or Assl~,nment
A contract for tax abatement may be transferred or assigned by the original applicant to a new
owner upon the approval of the various taxing jurisdictions after such a recommendatlonls made by the
Joint Committee on Tax Abatement
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
REPLACING A POLICY FOR TAX ABATEMENT FOR THE CITY OF DENTON TO
ESTABLISH GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
AGREEMENTS, AND DECLARING AN EFFECTIVE DATE
WHEREAS, on January 21, 1998, the City Council adopted guidelines and criteria,
known as the Denton Pohey for Tax Abatement, passing Resolution No R98-004, and
WHEREAS, that Tax Abatement Pohcy has now expired, and
WHEREAS, the C,ty Council desires to promote economic development within Denton,
and
WHEREAS, providing tax abatement and other economic development incentives within
the City and its extraterritorial jurisdiction will likely contribute to the economic development of
Denton by encouraging major investment and the creation of jobs, and
WHEREAS, the Property Development and Tax Abatement Act, Chapter 312 of the Tex
Tax Code, allows the city to establish its own criteria for tax abatement and the City has
previously adopted guidelines for tax abatement and resolutions No R90-018 and~R98-~004;~ and
WHEREAS, the Joint Committee on Tax Abatement, composed of representatives of the
City of Denton, the Denton Independent School District, and Denton County have recommended
a new Taxx Abatement Policy to replace the expired policy, which is attached hereto as the
Denton Policy for Tax Abatement, and
WHEREAS, the City Council deems it in the public interest to continue to be eligible for
partlcipatton in tax abatement and to adopt the new policies, guldehnes and criteria govemmg
tax abatement agreements to be known as the Denton Pohcy for Tax Abatement, NOW,
THEREFORE,
THE COEINCIL OF THE CITY OF DENTON HEREBY RESOLVES
St~CTION 1 That the polices, guidelines and criteria found in the Denton Policy for Tax
Abatement, attached hereto is Exhibit A and made a part of tlus Resolution and incorporated
herein for all purposes, are in all things approved and adopted From and after the effective date
of this Resolution, the attached Denton Policy for Tax Abatement shall constitute policy
gmdelmes and criteria governing tax abatement agreements for the City of Denton in accordance
with Chapter 312 of the Tex Tax Code
SECTION 2 That pursuant to Tex Tax Code Section 312 002(c) the gmdehnes and
cntena adopted herein shall be effective for two (2) years, dunng which tune the gmdehnes may
be amended or repealed by a vote of Y4 of the members of the Council
T~[.E..Q!I02t~ That the C~ty Council hereby reasserts ~ts dec~mon to become ehg~ble to
purtmapate ~n tax abatement The C~ty Council prowdes certain tax ~ncent~ves apphcable to
business enterpnses m vanous remvestment zones which are established ~n the City, in
accordanee with the apphcable provlsmns in Chapter 312 of the Tex Tax Code and ~n
accordanee with the gmdehnes and cntena established in the attached Exinb~t A
SECTION 4 That tins resolution shall become effective ~mmed~ately upon ~ts passage
and approval at the regular meeting of the C~ty Council of the C~ty of Denton, Texas, on the 6th
day of June, 2000, at winch meeting a quorum was present and which meeting was held ~n
accordance with the pmwslons ofTex Gov 't/,/,~C°de §551 001, ett~eq,~
PASSED AND APPROVED this the (~'Y~ ~_ day of ~ ,2000
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
/
Page 2 of 2
EXHIBIT A
DENTON POLICY FOR
TAX ABATEMENT
I GENERAL PURPOSE AND OBJECTIVES
The City of Denton (City) and the Denton Independent School District (DISD) are comnnrted to the
promotion of high quality development ~n all parts of the c~ty and to an ongoing improvement ~n the quality
of life for ~ts citizens Insofar as these object~ves are generally served by the enhancement and expansion of
the local economy, the City and DISD will, on a case-by-case bas~s, give consideration to providing tax
abatement as a stimulus for economic development in Denton It ~s the pohcy ofthe City and DISD that said
conslderat~on will be prowded ~n accordance with the procedures and criteria outlined m th~s document
Nothing hereto shall imply or suggest that the City or DISD are under any obhgatlon to provide tax
abatement to any apphcant
Denton County ad valorem taxes also may be abated, however, applications wall be considered
separately under the guldehnes of the Denton County tax abatement policy
All apphcants shall be considered on a case-by-case bas~s Abatements will be considered only as
~nduccments to generate development that otherwise would not occur Abatements wall not be considered ff
construction of a project already has begun
Tax abatements, as described in this policy, wxll he available for new and/or existing facdltles and
structures and for businesses wanting to locate, expand or modermze basic industries, corporate office
headquarters or d~stnbutlon centers, except as th~s pohcy may be hmltcd for property described in Section
312 21 l(a) of the Texas Property Tax Code (Vernons Texas Civil Statutes Annotated, hereinafter referred to
as "Tax Code ")
1
II JOINT TAX ABATEMENT COMMITTEE
Requests for tax abatement shall be rewewed by the Joint Committee on Tax Abatement, smd
Committee being comprised of two elected officials each from the C~ty, the DISD and Denton CoantY One
additional staff person from each jurisdictIon shall be appointed to serve as a nonvoting, ex officio member
of the comm:t~ee
The Joint Committee on Tax Abatement serves as a recommending body to the taxing ent~tles
regarding whether economic development incentives should be offered ~n each ~nd~wdual case Its
recommendation shall be based upon an evaluation of ~nformat~on submitted ~n the tax abatement
apphcatlon and any additional mformat~on requested by the Committee or presented to the Committee The
Tax Abatement Apphcat~on ~s presented as Exhibit A of th~s pohcy All meetings of the Joint Committee
shall be held in comphance wxth the Texas Open Meetings Act, Chapter 551 of the Texas Government Code
III VALUE OF INCENTIVES
The criteria outhned ~n the Apphcat~on w~ll be used by the Joint Committee on Tax Abatement ~n
determ~mng whether or not ~t ~s in the best interests of the affected taxing ent~t~es to recommend that tax
abatement be offered to a particular project Specific considerations wall include the degree to which the
mdlwdual project furthers the goals and objectives of the commtm~ty as described ~n the Denton
Comprehensive Plan, as well as the relative ~mpact of the project New, expanding and modernizing
businesses may be considered for abatement ~f the minimum threshold, as described m Table 1 below, ~s
met
Once a determtnatxon has been made that tax abatement should be offered, the value and term of the
abatement may be determined by referencing the following table
2
TABLE 1 Estabhshes a framework for cons~denng the length of abatement according to assessed real
property value of improvements and of tangible personal property located on the real property
VALUE OF STRUCTURE
AND PERSONAL PROPERTY YEARS OF PERCENTAGE OF
IN MILLION DOLLARS ABATEMENT ABATEMENT
100 10 15- 25%
80 9 15-25%
65 8 15- 25%
50 7 15- 25%
35 6 15- 25%
20 5 15- 25%
15 4 15- 25%
10 3 15-25%
5 2 15-25%
To quahfy, compames must meet the m~mmum threshold of the pohcy ~n the first 24 months from
the execution of the agreement or as specified m the tax abatement agreement
If upon lmtml apphcat~on a project quahfies for tax abatement under the guldehnes set forth ~n th~s
pohcy, the taxing entat~es may consider granting an ad&t~onal 5% abatement for each one of the following
factors prowded, however, that the total tax abatement does not exceed 50% annually or continue for a
period of more than ten years No apphcant may receive credit for more than five ofthe following factors
· The project will occupy a building that has been vacant for at least two years,
· The project will create h~gh-skdled, h~gh-paylng jobs as documented by the applicant, (A
breakdown of number of jobs per job classfficat~on and entry level wage per classification will be
used to determine ehg~bfl~ty),
The project will ~nvolve a s~gmficant relationship w~th one of the two umversmes ~n Denton,
3
· At least 25% of the new jobs created by the project will be filled by Denton residents,
· The project will provide knowledge-based jobs (at least 25 percent of jobs require college
bachelors degree at entry level),
· The project will donate s~gmficant public art to the community (To qualify, donation must be
approved by Greater Denton Arts Council and City Council),
· The project will donate slgmficant matenals/eqmpment to the public schools (To qualify,
donation must be approved by DISD and City Council ),
· The project will create improvements to the Denton Central Bus~ness District,
· The project will result in the formation of a business park,
· The project ~s an international or national headquarters facility
The total tax abatement may not exceed 50% annually for ten years All abatements are subject to
final approval of the City Council and DISD Board of Trustees, or the County Comm~ssloner'sCourt Even
though a project may meet the criteria as set forth in this policy, an application may be demed at the
d~scret~on oflthe C~ty Council and/or DISD Board of Trustees Tax abatement shall not appl~ to any
portlonoftheil~dvalu~aftheproject The thresholds as descnbed ~n Table l areconslderedguldehnesfor
estabhsh~ng the Tax Abatement Agreement terms However, the City and DISD may determine that a lower
or higher percentage and/or a shorter or longer term of abatement may be more appropriate for an lnd~mdual
project If abatement is approved, the City and DISD may consider applying all or a port~on of the
abatement m the first year or dunng any shorter period w~thin the term of the tax abatement agreement For
example, an approved abatement of 25 percent for four years may be applied as 100 percent abatement for
one year
To receive tax abatement from the City, the owner of the project must enter into a contract with
4
S \TAX ABATEMEN73TAX ABATEiV~NT POLICY 2000 FINAL DRAFT d~
Denton Mumclpal Electric Utlhtms to provide electric service for a period of not less than five years and
mamtmn performance of contractual obligations for the full period of the contract, unless located in an area
in which the Denton Mumcipal Electric Utthtles is not certffied to serve Upon recommendation of Denton
Municipal Electric Utdltles, this requirement may be waived
% ~ School B~et determm~that ab~ldQ~i~l~i'opef~
of~'~po~ ~nl~itii~ m~imtml thresholtl~and/or exceed fifty p~c~t (~)m ~
abOVe,t;, ~ ~i~[pmjee~ W r~flevelop ab~done~ huildmg~ ~sistent
been tdmtffi*g~beiag~s~tlbB fo~e0~m~ m kndustnal developmem, h~ been yacht for a minmm
of fi~e'ye~s~r hR~ g~t~tf~y dedmed~u age,seal v~ue, Abatement would oily be conmdered on ~e
h~re~ed ~fl~¢~ ~0 ~provements ia e~h yeg~eovered by ~e t~ abatement agreement over ~e value
of ~ ~pro~ ~, y~ ~ wMeh th~ abatement agreemem is eaecmed The C~ of Demon ~d
Denton,l $¢4~0ol<D~ffietmay al~0 consider o~er t~ ~ncenttves authorized by law
Prelimma~ Apphcat~on
IV PROCEDU~L GUIDELI~S
~y person, org~lzatlon or co¢oratmn des~nng that the C~ty or DISD consider prowd~ng tax
abatement to encourage location or exp~s~on of facilities within the hm~ts of the junsdmt~ons shall be
reqmred to comply with ~e following procedural guidelines Nothing w~thm these guidelines shall ~mply
or suggest that e~ther the C~ or DISD ~s under any obhgat~on to prowde tax abatement to any
apphcant.
A Apphc~t shall complete the attached "Apphcat~on for Tax Abatement"
5
B Apphcant shall prepare a map or other documents prowdlng the following
· precise location of the property and all roadways w~thm 500 feet of the site
· existing uses and conchtlons of real property
· proposed ~mprovementsand uses
· any proposed changes m zonmg
· compatibility with the Denton Comprehensive Plan and applicable building codes and C~ty
ordinances
C A complete legal description shall be provided Apphcant shall complete all forms and
mformat~on detailed m the Apphcatlon and submit all ~nformat~on to the C~ty Manager, City of
Denton, 215 E McKlnney, Denton, TX 76201
D All ~nformat~on ~n the apphcat~on package detmled above will be reviewed for completeness
and accuracy Addlt~onahnfonnat~on may be requested as needed
E The apphcat~on w~ll be distributed to the appropriate City and DISD departments for ~ntemal
rewew and comments Ad&tlonahnfonnat~on may be requested as needed
F Copies of the complete apphcatmn package and staff comments w~ll be provided to the Joint
Committee on Tax Abatement
G F~scal agents of the C~ty, DISD and County wdl review the apphcatlon for comments and
recommendation Add~t~onahnfonnatlon may be requested as needed
Consideration of the Apphcat~on
H The Joint Committee on Tax Abatement wall consider the apphcat~on at a regular or called
meeting(s) Addltionahnfonnat~on may be requested as needed
I The recommendation of the Joint Committee on Tax Abatement will be forwarded, with all
6
relevant materials, to the chief adm~mstrat~ve officer of each tatung entity
J If the C~ty Council of Denton dec~des to grant a tax abatement, ~t shall call a pubhc heanng to
consider estabhshment of a tax m~nvestment zone in accordance with Section 312 201 of the
Tax Code The remvestmant zone must meet one or more of the criteria of Section 312 202 of
the Tax Code
K The C~ty Council of Denton shall hold a pubhc hearing and determine whether the project is
"feasible and practical and would be of benefit to the land to be included w~th~n the zone and
C~ty after the expiration of the tax abatement agreement ~n accordance w~th Section 312 201"
Special consideration shall be g~ven to pohcles noted in the Denton Comprehensive Plan when
designating a tax re~nvestment zone
L The C~ty Council of Denton may consider adoption of an ordinance designating the area
described m the legal description of the proposed project as a commercml/lndustnal tax
abatement zone
M The C~ty Council may consider adoption of an ordinance or resolution approwng the terms and
condmons of a contract between the C~ty and the apphcant governing the proms~on of the tax
abatement and the commitments of the apphcant, including all the terms required by Section
312 205 of the Tax Code and such other terms and conditions as the C~ty Council may reqmre
Should the commitments subsequently not be satisfied, the tax abatement shall be null and
vmd (unless the tax abatement agreement prowdes for a recapture of the property tax revenue
lost proportionate to a partial failure to meet the minimum thresholds set forth m the
agreement) and all abated taxes shall be paid immedmtely to the Cay of Denton and all other
taxing jurisdictions parhc~pat~ng in the tax abatement agreement Provisions to th~s effect shall
7
De mcorporatedlnto the agreement
N The governing bodies of Denton County and DISD may consider ratfficataon of and
partm~pat~on m the tax abatement agreement between the City of Denton and the apphcant
O The Caty and DISD reserve the authority to enter ~nto tax abatement agreements at dlffenng
percentages and/or terms as set forth ~n the gmdellnes of th~s pohcy, consistent with the
reqmrements of the Tax Code
Any ta~ abatement agreement will address various issues, ~nclud~ng but not hm~ted to, the followang
1 General description of the project,
2 Amount of the tax abatement and percent of value to be abated each year,
3 Method of calculat~ngthe value of the abatement,
4 Duration of the abatement, including commencement date and termination date,
5 Legal description of the property,
6 Kind, number, location and tunetable of planned ~mprovements,
7 Specffic terms and conditions to be met by apphcant,
8 The proposed use of the facility and nature of construction,
9 Contractual obhgat~ons in the event of default, wolat~on of terms or conditions, dehnquent
taxes, recapture, admunstrat~onand assignment
Annual Evaluation
Upon completion of construction, the Joint Committee on Tax Abatement shall recexve from the C~ty
Manager an annual evaluation of each abatement to insure comphance w~th the agreement and to report
possxble wolatxons of the agreement to the taxxng ent~txes After new tax base numbers are recexved ~n July
8
of each year, the City Manager and h~s staffwfll have ninety (90) days to review and prepare a breakdown of
those figures
Transfer or Assignment
A contract for tax abatement may be transferred or assxgned by the original apphcant to a new owner
upon approval by the vinous taxing junsd~cUons after such a recommendation is made by the Joint
Committee on Tax Abatement
In ~g~ t0 ~tts¢~dtligetit ~fforts to p~e all, gq~;
se~iees ~om ~e~h~go~fl~fl~e~icesae eomp~abte ~ axailabfll~t
~d ~iee,
As a ~o~~ ~p~J.f~ ~ojects ~fl proc~emen~, CITY als0 ~ae0~ages ~e
use, ~f appl~e~de~efl ~0n~o ~d suppliers wh~e at least fi~-on0~eem
(51%) of ~o ~e~f~g0h ~t~;~n~to~ 0r suppher is vexed in me~ or
proposed for ~o~S~em~i~OW~RS~0gree~ eonside~ ~s policy ~nd tO use
reasonable ~ hes~ ~ffogs (o seleet~d~loy su~i ~m~ies ~persons fo~ work'on t~s A~ent
OWN~R, t~l~ig~i~g~ ~g~e~s ~t ~tl~endeavor to m~e,a~mlable, or on0eavor to
for D~ton dflg~ ~1g~fi~Sg l~S~e~S~ee a~es to ree~t from ~e low-moderate
ineom~ Ceas~S i~ae~ ~r ~one~atio~of Low,dod Income by Block G~oups
sho~ ~low,
9
10
EXHIBIT A
The City of Demon
Tax Abatement Application
The Tax Abatement Apphcatlon provides the City with specific information on the project The ~nformatlon
requested ~n the Apphcatlon ~s designed to address the cnterm developed w~thm the C~ty of Denton's Tax
Abatement Policy The mformatlon serves as the bas~s for fiscal analys~s and overall project evaluation This
evaluation Is prowded to Councd Members and serves as a source document durmg C~ty Council dehberat~om
The Apphcatwn And The Agreement
Specific reformation from the Apphcatlon (hke value of new mvostment and employment commitments) ~s
incorporated into the Abatement Agreement In fact, the Apphcat~on is an attachment to the Agreement S~nce the
agreement is a bmthng contract, it ~s unportant that each question on the apphcatwn be answered m full and as
reahst~cally as possible Simply put, the apphcat~on is part of the process from start to finish so you'll want to
make sure you're comfortable w~th the contents
When Is The Apphcatwn Fmal~
The answer to th~s question Is very s~mple When you tell us, "It's final" It ~s not uncommon for a property
owner(s) to submit numerous Apphcatlons as drafts for mformatmnal and evaluative purposes only As
conversations continue, the property owner w~ll submit a finahzed version of the Application that includes all of the
commitments agreed to during the dlsgtlSSlOns
What About Confutenttah~y ~
Section 312 003 of the Texas Tax Code makes confidential information provided to the C~ty as a part of th~s
apphcatlon that describes the specific processes or bus~ness activities to bc conducted or the equipment or other
property to bc located on the property This mformatlon is not subject to public d~sclosure until the tax abatement
agreement ~s executed Section 522 131 of the Texas Government Code (Texas Public Information Act) makes
confidential mformatmn which relates to economic development negotiations between the City and a busmess
prospect that the C~ty seeks to have locate, stay or expand m or near the territory of the C~ty The reformation must
relate to a trade secret of the business prospect, conunerclal or financial information which the business prospect
can demonstrate based on specific factual evidence that disclosure would cause substantml competitive harm to the
person from whom the ~nformat~on was obtained or reformation about a financial or other incentive being offered to
the business prospect by the C~ty or by another person Information about a financial or other incentive being
offered to the business prospect ~s reqmred to be d~sclosed when an agreement ~s made w~th a business prospect
The City ~s subject to d~sclosmg most records and documents upon request under the Pubhc Information Act
Accordingly, please clearly indicate and mark any information you consider proprietary Tins would include
anything m your apphcation winch you consider a trade secret, commercml or financaal mformataon which
you can demonstrate by specific factual ewdence that would cause substantial competitive harm if disclosed,
information Which describes the specific processes or busmess actzwt~es to be conducted or the eqmpment or
other property for which the tax abatement ~s sought, any f'manc~al or other mcentlve you may be seeking
from the C~ty or any other mformatlon you deem to be confidential under the law
Who ts Authonzed To Stgn the Apphcatwn ~
Because the Apphcat~on ~tself is non-binding, the person signing need not be the property owner or even an
~ndlwdual duly authorized to sign on behalf of the property owner However, ff an Agreement is reached, the
Application w~ll be an attachment to the Agreement and its contents will be bmdtng through the authorized signature
required on the Agreement
11
City of Denton
Tax Abatement Application
City of Demon
City Manager's Office
Denton, Texas 76201
(940) 349-8307
(940) 349-8596 FAX
12
APPLICATION FOR TAX ABATEMENT
CITY OF DENTON, TEXAS
Property Owner
Company or ProJect Name
Madmg Address
Telephone [ Fax No
Contact Name
Title
Mailing Address
' I
Telephone Fax No
2 Provide a chronology of plant opemngs, closing and relocations over the past 15 years
3 Prowde a record of mergers and f'manclal restructuring during the past 15 years
4 Will the occupants of the project be owner or lessee9 If lessee, are occupancy commitments already
exmt~ng?
5 Is the project a relocation of existing faclhty or a new faclhty to expand operations9 If relocation, give
current location
13
6 If an extstmg Denton business, will project result m abandonment of existing facfitty9 If so, the value of the
existing faclhty will be subtracted from the value of the new facility to arrive at total project value
7 Property Description
- Attach a copy oft. he legal description detailing property's metes and bounds
- Attach map of project including all roadways, land use and zoning within 500 feet of site
8 Current Value Attach copy of latest property tax statement from the Denton County Central Appraisal
Dlsmct (mchde both real and personal property)
9 Increased Value/Estimated Total Cost of Project
Structures $ Site Development $
Personal Property $ Other Improvements $
10 Indicate amount of tax abatement and number of years requested for each taxing entity
C~ty of Denton % years
Denton Independent School District % years
Denton County % years
List any other financial incentives this project will request/receive
Esttmated Freeport Exemption $
Estimated Electric Utility Industrml Development Rider $
Estimated Water/Wastewatar Infrastructure Assistance $
11 Give a brief description of the actlwtles to be performed at this location, including a description of products
to be produced and/or services to be provided
14
12 Pr6ject Construction Phase
A Estunate percentage of project development and conslyuct~on dollars to be spent w~th Denton based
contXactors or sub-contractors
Construction costs $ I Percentage local contractors %
B Constract~on Employment Emmates
Start Date (Mo/Y0 Completion Date (Mo/Yr)
No of Construction Jobs Estimated Total Construction Payroll $
C Describe any off-site mfrastmcture reqmrements
· Water
· Wastewater
· Streets
· Drainage
· Other
15
13 ProJect Operation Phase Provtde employment reformation for the number of years tax abatement Is
requested
At Project
Existing Start Date At Term of
Employment Information Operation (mo/yr) Abatement
Of applicable) /
A Total number of permanent, full-time jobs
B Employees transferred from outside Denton
C Net permanent full-time jobs (A minus B )
E Total annual payroll for all permanent, full-time
jobs (A)
F Types ofjobs created List the job titles and number of positions m each category that wdl be employed
at the facthty Provide average wage for each category
G Estimate annual utility usage for project
Electric $ ] Water $
Wastewater $ I Gas $
14 Describe any other direct benefits to the City of Denton as a result of this project (e g, sales tax revenue or
project elements identified m Tax Abatement Policy, Section II1)
16
15 Is property zoned appropriately? Yes No
Current z0nmg
Zomng requn'ed for proposed project
Anticlpatltd variances
16 Is property platted? Yes No
Will replattmg be necessary Yes No
17 Discuss any enmronmental impacts created by the project
A List any permits for which applicant must apply Applicant will be requn'ed to provide City with copies
of all applications for environmental permits upon completion of application(s)
B Provide record of compliance to all environmental regulations for the past five years
18 Provide specific detail of any businesses/residents that will be displaced and assistance that will be available
from the requesting company
19 Provide description of any historically sigmficant area included within the project's area as determined by the
Historic preservation Officer If any, give detad of how the historically slgnfficant area will be preserved
20 Justfficatlon 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
17
21 List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of the tax
abatement pohcy
22 Financial Information Attach a copy of the latest aud:ted financial statement or, in the case of a new project,
a business plan
This tax abatement apphcat~on is submItted w~th the acknowledgement that additional certified financial ~nformat~on may be
required
Authorized Signature
Date
18
A RESOLUTION OF THE CITY OF DENTON, TEXAS CALL1NG A PUBLIC HEARING TO
CONSIDER ESTABLISHING A REINVESTMENT ZONE I FOR THE TRAMMELL CROW/
UNITED COPPER PROJECT, RATIFYING PRIOR ACTIONS, AND DECLARING AN
EFFECTIVE DATE
WHEREAS, the City has previous to the passage of thas resolutmn re-estabhshed its Tax
Abatement Policy by adopting guldehnes and criteria governing tax abatement agreements in
accordance wath TEX TAX CODE ch 312, and has declared that it elects to become ehglble to
partlcapat¢ ~n tax abatement, and
WHEREAS, the Caty finds that it as an the public interest to call a public heanng to
consider the creation of a re~nvestment zone for tax abatement purposes for the purpose of
offenng a tax abatement to Trammell Crow/Umted Copper ~n accordance with TEX TAX
CODE §312 2041, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Caty Councal hereby calls a pubhc hearing and the City Manager is
hereby authorized to give notme of a pubhc heanng for the estabhshment of a relnvestment zone
(Reanvestment Zone I), comprised of the property located on approxamately 90 acres of land near
U S 380 at Geeshng Road an northeast Denton and within the corporate limits of the City of
Denton and additional land an ats extraterritorial jurisdiction, as more fully described in the
attached Exhibit "A," for the purpose of entenng into a tax abatement agreement w~th Trammell
Crow and/or United Copper Industries for a project to be developed wlthan a 31-acre tract of land
within this Remvestment Zone and other ehglble projects under the City's Tax Abatement
Polacy, which Exhabat "A" as made a part ofthas resolution for all purposes as af written word for
word herean At the heanng, the Caty Councal wall determine whether the improvements sought
are feasible and practmal and would be a benefit to the land to be mcluded ~n the Zone and to the
Caty after expiration of any tax abatement agreement entered ~nto under TEX TAX CODE ch
312 Notme of the public heanng will be substantaally in the form of the attached Exhibit "B,"
which exhabat is made a part of this resolutaon as if written word for word herein The public
heanng will take place on the 3~d day of February, 1998 at 7 00 p m in the City Council
Chambers at City Hall at 215 E McKluney, Denton, Texas 76201, but not until at least seven
days after notice of this pubhc heanng has been published in the Denton Record-Chromcle, a
newspaper having general mmulatlon wathln the Caty, and spemfic notaces are dehvered in
writing to the presiding officer of the Board of Trustees of the Denton Independent School
Dmtnct, the Commissioners Court of Denton County, mad to other taxing units, if any, that
include m their boundaries the mai property described m the attached Exhabat "A" in accordance
with TEX TAX CODE §312 201 All prior actions of the City Manager, the Director of
Economic Development, the C~ty Attorney, and their staffs in provldang the reqmred notace are
hereby ratffied and approved
SECTION II That this resolution shall become effective immediately upon ats passage
and approval at a regular meeting of the City Council of the City of Denton, Texas on this the
27th day of January, 1998, at which meeting a quorum was present and the meeting was held ~n
accordance with the provm~ons ofTEX GOV'T CODE §551 001, et seq
PASSED AND APPROVED this the ~ 77~'l day of c~-~~~4/ ,1998
jA~-~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
/
Page 2
"EXHIBIT A"
ALL that certain lot, tract or parcel of land lying and being situated m the C~ty and County of Denton,
State of Texas, being part of the M. Forrest Survey, Abstract Number 417 and being more particularly
described as follows:
BEGINNING, at the southwest corner of 90.6566 acre tract described as Tract III by Special Warranty
deed conveyed to Albertson's Incorporated recorded in Volume 3205, Page 214 of the Real Property
Records of Denton County, Texas, said point also lying on the north line ofU S Highway 380;
THENCE SoUth a distance of 63 feet to the centerhne of said U S. Highway 380,
THENCE Northeasterly along the centerliue of U.S. Highway 380 a distance of 4,303 feet to a point for
comer;
THENCE North passing at 63 feet the north right-of-way line of U S Highway 380 and continuing
along the cast, line of a 28 acre tract, conveyed to D.C Bullard, et ux by deed recorded In Volume 432,
Page 149 of the Deed Records of Denton County, Texas, continuing North and passing the northeast
corner of said' Bullard tract and continuing North to a point in the centerbne of Fishtrap Road;
THENCE Westerly and northwesterly along the centerline courses of Flshtrap Road a distance of
3,210 feet to a point for comer, said point being the intersection of the centerhne of FIshtrap Road and
the centerline, of the Union Pacific Railroad;
THENCE Southwesterly along the centerhne of the Union Pacific Railroad a distance of 1,710 feet to a
point for corner;
THENCE South passing at 64 feet the most northerly northwest corner of said 90.6566 acre
Albertson's tract and continuing a total distance of 240 feet to a point for corner, said point being the
northwest comer of a 1.457 acre SAVE & EXCEPT tract described as Tract II m said Albertson's
deed recorded m Volume 3205, Page 214 R.P.R.D.C.T,
THENCE Southeasterly along the northeast line of said 1.457 acre tract a distance of 564 feet to a
point for corner, said point being the southeast comer of said 1.457 acre tract,
THENCE South along the west line of a 2.114 acre tract described as Tract 1 in said Albertson's deed
recorded in Volume 3205, Page 214 R.P.R.D.C.T a distance of 662 to the southwest corner of said
2.114 acre tract;
THENCE West a distance of 69 feet to the most southerly northwest comer of said 90.6566 acre
Albertson's tract;
THENCE South a distance of 185 feet to the POINT OF BEGINNING and containing 163 acres of
land.
EXHIBIT "B"
NOTICE OF PUBLIC HEARING
PUBLIC NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL OF THE
CITY OF DENTON, TEXAS, WILL HOLD A PUBLIC HEARING TO ALLOW
INTERESTED PERSONS TO SPEAK AND PRESENT EVIDENCE FOR OR AGAINST
THE ESTABLISHMENT OF A REINVESTMENT ZONE I FOR COMMERCIAL/
INDUSTRIAL TAX ABATEMENT PURPOSES THE PURPOSE OF THE ZONE IS TO
ATTRACT THE TRAMMELL CROW/UNITED COPPER INDUSTRIES PROJECT AND
SIMILAR INDUSTRIAL AND COMMERCIAL BUSINESS ENTERPRISES TO THE
CITY OF DENTON, CREATE JOBS, EXPAND THE LOCAL TAX BASE, AND TO
ATTRACT MAJOR INVESTMENT IN THE ZONE THAT WOULD BE A BENEFIT TO
THE PROPERTY AND THAT WOULD CONSTRIBUTE TO THE ECONOMIC
DEVELOPMENT OF THE CITY THE PURPOSE OF THE HEARING WILL BE TO
DETERMINE WHETHER THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND
PRACTICAL AND WOULD BE A BENEFIT TO THE LAND INCLUDED IN THE ZONE
AND TO THE CITY AFTER EXPIRATION OF ANY TAX ABATEMENT AGREEMENT
ENTERED INTO UNDER CHAPTER 312 OF THE TAX CODE
ALL INTERESTED PARTIES INCLUDING RESIDENTS OF THE PROPOSED
ZONE ARE ENCOURAGED TO PRESENT THEIR VIEWS AT THE HEARING
THE PUBLIC HEARING WILL BE HELD ON FEBRUARY 3, 1998, AT 7 00 P M
IN THE CITY COUNCIL CHAMBERS AT CITY HALL, 215 E. McKINNEY
REINVESTMENT ZONE I WILL BE COMPOSED OF APPROXIMATELY 90.4
ACRES OF LAND OUT OF THE MOREAU FOREST SURVEY ABSTRACT NO. 417,
DENTON COUNTY, TEXAS, THE REINVESTMENT ZONE AREA IS MORE
PARTICULARLY DESCRIBED AS FOLLOWS
SO, TIONNO
A RESOLUTION DISSOLVING THE SPECIAL CITIZENS ADVISORY COMMITTEE TO
PROVIDE RECOMMENDATIONS REGARDING A POSSIBLE ADDITIONAL SALES TAX
TO REDUCE PROPERTY TAX, EXPRESSING THE SINCERE APPRECIATION OF THE
CITY COUNCIL FOR THE WORK OF THE MEMBERS OF THAT COMMITTEE, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, on the 6th day of July, 1993, the City Council passed a resolution that cre-
ated and appointed a Special Citizens Advisory Committee to study and make recommendations
to the City Council regarding a possible additional sales tax to reduce the property tax, and
WHEREAS, the City Council subsequently appointed fifteen persons to the Special Citi-
zens Advisory Committee, and
WHEREAS, on the 16th day of November, 1993, the City Council passed Resolution No
R93-072 expressing its support for the Ad Hoc Cmzens Sales Tax Advisory Committee's rec-
ommendation for the passage of an additional one-half of one percent sales and use tax to be
used to reduce the property tax rate and to urge each citizen to express lus or her preference by
voting an the election to be held on January 15, 1994, and
WHEREAS, an election was held on January 15, 1994 and the voters approved the addi-
tional one-half of one percent sales and use tax to be used to reduce the property tax rate, and
WHEREAS, Resolution No R93-072 also invited the Ad Hoe Citizens Sales Tax Advi-
sory Committee to serve in adcht~onal roles, which Included working with the City's Finance
Department to insure that the appropriate credit for sales tax revenues were made for the corre-
sponding property tax reductions and to report annually to the C~ty Council regarding the amount
the additional one-half of one percent sales tax has reduced the property tax as a part of the
budget process, and
WHEREAS, the City Council deems it in the public interest to dissolve the Citizens Sales
Tax Advisory Committee and to express its sincere appreciation for the work of all the Comnut-
tee members, the Assistant City Manager for Fmance has reported that the Sales Tax Advisory
Committee has fulfilled their purposes, and the City Council deems that It should express ItS ap-
preciation for their service to the entire commumty, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
$~CTION I. That the Special Citizens Sales Tax Advisory Committee created by Reso-
lution No R93-042 is hereby dissolved and both Resolution No R93-042 and R93-072 shall
have no further force and effect
~ That the City Council expresses its sincere appreciation to the Special
C~tlzens Sales Tax Advisory Committee, composed of Tom Harpool, Joe Alford, Derrell Bulls,
Dorothy Danuco, Alton Donsbach, Neff Durrance, William Laker, Roy Metzler, Bill Patterson,
Barbara Phflhps, John Elhs Price, Ellen Hoover-Schertz, Bill E Utter, Sr, Steve Weemer, and
Tom Sass, and recogmzes that the Committee was h~ghly successful ~n ~nformmg the general
pubhc of the purpose of the elect~on to adopt the additional one-half of one percent sales and use
tax to be used to reduce the property tax rate w~ttun the city of Denton, ~ts efforts resulted in the
successful passage of the new one-half of one percent sales and use tax Through its work w~th
the C~ty's Finance Department, the tax rate has been reduced from 0 7479 per $100 valuataon
1994 to 0 51315 per $100 valuation m 1997
SECTION III. That the City Council has found and determine that the meeting at wbach
th~s resolution is considered is open to the public and that not,ce thereof was g~ven m accordance
w~th the provisions of the Texas open meetings law, TEX GOV'T CODE ch 551, as amended,
and that a quorum of the C~ty Council was present
SECTION W That tins resolution shall become effective ~mmedmtely upon ~ts passage
and approval
PASSED AND APPROVED this the ._~'g~" day of
,
JA~;I~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPR~.~ED A~ ;O LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY ..
Page 2
SO TIONNO
A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE
SUBMISSION OF AN APPLICATION OF THE CRIMINAL JUSTICE DIVISION OF THE
OFFICE OF THE GOVERNOR, STATE OF TEXAS, REQUESTING FUNDING FOR THE
DENTON DELINQUENCY PREVENTION/INTERVENTION PROGRAM FOR JUVENILES,
A_ND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton is ehglble to receive funds from the Criminal Justice
D~vlslon of the Office of the Governor, State of Texas, and desires to increase the effectiveness
of the Denton Delinquency Preventlon/IntervenUon Program for Juveniles by providing funding
to the Fred Moore ARor School Program and the Teen Court of Denton, and
WHEREAS, ,n order to receive such funds, ~t is necessary for the Council of the City of
Denton to authorize the submission of a Title V Juvemle Delinquency Prevention Grant
Apphcat~on to the Criminal Justice Division of the Office of the Governor, State of Texas,
requesting fundang, NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the City of Denton, Texas, certifies that it is ehg~ble to receive a
funchng allocatmn from the Criminal Justice Division of the Office of the Office of the
Govemorl State of Texas, for a Title V Juvenile Dehnquency Prevention Grant for the Denton
Dehnque~cy Prevention/Intervention Program for Juveniles
S_~Q.T.I_Q.]S.~ That the City Council anthonzes and d~rects the City Manager, or
designee, to represent and act on behalf of the City of Denton in apply, ng for and worlong with
the Criminal Justice Dlwslon of the Office of the Governor, State of Texas, m regard to such
grant application
S_~ That the City Manager, or his designee, shall forward a copy of this
resolution to the Cnmmal Justice Division of the Office of the Governor, State of Texas
SECTION IV. That tlus resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED th~s the ~Tday of~=~,g~ 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
(~oQ~,.,
HERBERT L PROUTY, CITY ATTORNEY
s ~esolutlon\d*aton d~lmqu~ncy doc
A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING PARTICIPATION
BY THE CITY OF DENTON AND THE TEXAS DEPARTMENT OF TRANSPORTATION
IN THE INNOVATION FINANCE PROGRAM TO INSTALL SECURITY ITEMS AT THE
DENTON MUNICIPAL AIRPORT, AND DECLARING AN EFFECTIVE DATE
WHEREAS, the C~ty of Denton destres to participate m the Innovative F~nance Program
to install security items at the Denton Mumclpal A~rport, and
WHEREAS the City of Denton hereby offers 25% of project costs ($3,000) to match
75% federal funds ($9,000) for a project estimated to cost $12,000, and
WHEREAS, local funds will be available to meet project expend,tures, and
WHEREAS, the C~ty of Denton agrees to operate and maintain the installed security
,tems for the useful hfe of the asset, and
WHEREAS, the City of Denton hereby requests financial assistance from the Texas
Department of Transportation for the ~nstallatlon of the security ,terns, and
WHEREAS, the C~ty of Denton intends to name the Texas Department of Transportation
as its agent for the purposes of applying for, receiving and disbursing all funds for these
improvements and for the admmtstrat, on of contracts necessary for the implementation of these
improvements, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the Cay of Denton hereby directs the City Manager to execute on
behalf of the City of Denton, at the appropriate ttme, and with the appropriate authorizations of
this govermng body, all contracts and agreements with the State of Texas, represented by the
Texas Department of Transportation, and such other part~es as shall be necessary and appropriate
for the ~mplementat, on of the Improvements to the Denton Mumc~pal ,Mrport
SECTION II That this resolution shall become effective lmmedmtely upon its passage
and approval
PASSED AND APPROVED th,s the ,~'~day of /~F~/.g.~/// ,1998
JAC2~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~oVED~AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE2
TEXAS DEPARTMENT OF TRANSPORTATION
AIRPORT PROJECT PARTICIPATION AGREEMENT
(Federally Assisted Airport Development Grant - Fencing)
TxDOT CSJ Number 98SIDNTON
TxDOT Contract Number 8XXFA044
Part I - Identification of the Project
TO The City of Denton, Texas
FROM The State of Texas, acting through the Texas Department of Transportation
This Agreement is made and entered into by and between the Texas Department of
Transportation, (hereinafter referred to as the "State"), for and on behalf of the State of Texas,
and the City of Denton, Texas, (hereinafter referred to as the "Sponsor")
WITNESSETH
WHEREAS, the Sponsor desires to sponsor a project for the development of a public
awatlon facility, known or to be designated as the Airport under the A~rport and A~rway
Improvement Act of 1982, as repealed and recod~fied m Title 49 United States Code, Section
47101 et seq, (hereinafter referred to as "Title 49 U S C "), and Rules, Regulations and
Procedures promulgated pursuant thereto, and under V T C A Transportation Code, T~tle 3,
Chapters 21-22, et seq (Vernon and Vernon Supp), and
WHEREAS, the project is described as follows ~nstall two electromc security gates at the
Denton Municipal Airport, and
WHEREAS, the Sponsor hereby applies for federal financial assistance and desires the
State to act as the Sponsors agent in matters connected with the project described above, and
WHEREAS, the parties hereto, by this Agreement, do hereby fix their respective
respons~bflmes, with reference to each other, w~th reference to the accomphshment of sa~d
project and with reference to the United States
NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of
T~tle 49 U S C, and in consideration of (a) the Sponsor's adoption and ratification of the
Page 1 of 12
representations and assurances contained m smd A~rport Project Part~c~paUon Agreement and ~ts
acceptance of tbas Offer as hereinafter proxaded, and (b) the benefits to accrue to the Umted
States and the pubhe from the accomphshment of the project and comphance wath the assurances
and condmons as herem provided, THE TEXAS DEPARTMENT OF TRANSPORTATION,
FOR AND ON BEHALF OF THE UNITED STATES, FEDERAL AVIATION
ADMINISTRATION (HEREINAFTER REFERRED TO AS THE "FAA"), HEREBY
OFFERS AND AGREES to pay, as the Umted States share of the allowable costs ~ncurred in
accomphshmg the project, seventy-five percentum of all allowable project costs Tlus grant ~s
made on and subject to the following terms and cond~uons
Part II - Offer of Financml Assistance
1 The allowable costs of the project shall not include any costs deternuned by the State to be
mehgtble for consideration as to allowability under T~tle 49 U S C, the V T C A
Transportation Code, Title 3, Chapters 21-22, et seq, (Vernon and Vernon Supp), and the
3arport Zoning Act, Tex Loc Govt Code Ann §§ 241 001 et seq (Vernon and Vernon
Supp)
2 It ~s esumated that total project costs wall not exceed $25,000 (Amount A) It ~s further
estimated that $25,000 (Amount B) of the project costs will be ebg~ble for federal financial
assistance, and that federal financial assistance will be for seventy-five percent (75%) of
the ehg~ble project costs Final deternunat~on of federal ehg~bfl~ty of total project costs
vail be detenmned by the State m accordance wath federal guldehnes followang completion
of project
The State will not participate m funding for force account work conducted by the Sponsor or
for the Sponsor unless approved prior to the s~gnmg oftl~s agreement
3 The mayamum obhgatmn of the Umted States payable under flus offer shall be $18,750
(Amount C)
Tlus grant should not be construed as block grant funds for the Sponsor, but as a grant for
funding of the scope ~tems as hsted on page one ofth~s agreement It ~s the ~ntent of the
State to prowde funding to complete the approved work items of flus grant and not to
amend the scope of work to include ~tems outside of the current deternuned needs oftlus
project Scope of work may be amended as necessary to fulfill the unforeseen needs of
flus specific development project wathln the spent of the approved scope, subject to the
avadabfl~ty of federal, and/or local funds
4 It ~s esumated that the Sponsor's share of the total project costs will be $6,250 (Amount
D) The Sponsor specifically agrees that it shall pay any project costs which exceed the
sum of the federal share (Amount C)
Page 2 of 12
It ~s further agreed that the Sponsor wdl reimburse the State for any payment or payments
made by the State in behalf of the Sponsor wfueh are in excess of the federal percentage
of financial partmlpatlon as heretofore stated m Paragraph II-2
5 If the estimated ehglble total project costs exceed Amount B, above, the Sponsor may
request the State to void this Agreement, whereupon the State shall agree to vo~d th~s
Agreement upon the satisfaction of the following conditions
a the Sponsor's request to the State to void the Agreement shall be ~n writing and
dated, and
b ~f required by the State, the Sponsor shall reimburse the State for funds expended
on this project and Sponsor shall assume the responsibility for any future
expenses for contracted services or materials related to the project for whmh a
contract had been executed prior to the Sponsor's request to vo~d the Agreement
Sponsor funds held by the State may be retained until this reqmrement is satisfied,
and
c failure on the part of the Sponsor to comply wuth the conditions of this paragraph
shall constitute a breach of this Agreement
6 Upon satisfaction of the condmons spemfied m Paragraph 1I-5 above, the State shall
declare this Agreement null and void, and this Agreement shall have no force and effect
7 If there is an overrun m the total eligible project costs (Amount B), the State may ~ncrease
the federal funds to cover the amount of overrun not to exceed the statutory fifteen (15%)
percent federal funds limitation The State may, at the request of the Sponsor, partlmpate
~n add~taonal eligible costs to the extent of the aforesaid appropnate percentages and
subject to the avmlabihty of federal funds Partmlpatlon in addmonal federally ehglble
costs may require approval by the Texas Transportation Commission
Payment of the United States share of the allowable project costs wall be made pursuant
to and in accordance w~th the provisions of such regulations and procedures as the State
and the Federal Aviation Administration, hereinafter referred to as the "FAA", shall
prescribe F~nal detenmnatlon of the United States share will be based upon the final
audit of the total amount of allowable project costs and settlement will be made for any
upward or downward adjustments to the Federal share of costs
8 Sponsor, by executing tlus Agreement certffies, and upon request, shall furnish proof to
the State that it has sufficient funds to meet its share of the costs as heretofore stated The
Sponsor hereby grants to the State and federal government the nght, upon advance
written request dunng reasonable and regular business hours, to audit any books and
Page 3 of 12
records of the Sponsor to verify said funds In addition, the Sponsor shall disclose the
source of all funds for the project and its ability to finance and operate the project
9 Monthly grant agreement payments to the Sponsor may be authorized upon application to
the State Payments of the State's share of the allowable project costs will be made in
proportion to the amount of the project satisfactorily completed at the time of the
payment application No more than mnety (90) percent of the total grant agreement will
be paid prior to the completion of the project The last ten (10) percent of the grant
agreement will be paid only after the staff has inspected and approved the completed
project
PART III ~ Sponsor Respons~bilmes
1 In accepting the Agreement, the Sponsor guarantees that
a it will comply with the Attaehraent A, Airport Assurances (06/02/97)(State
Modified 7/97), attached hereto and made a part of this Agreement, and
b it will, in the operatmn of the faclhty, comply with all apphcable state and federal
laws, rules, regulations, procedures, covenants and assurances required by the
State of Texas or the FAA in conneeuon with the federal grant, and
c the An'port or nawgatlonal facility which 1s the subject of this Agreement shall be
controlled for a period of at least 20 years, and improvements made or acqmred
under tins project shall be operated, repaired and maintained In a safe and
serviceable manner for the useful life of said improvements, not to exceed 20
years, and
d consistent with safety and security reqmrements, it shall make the a~rport or mr
nawgutlonal faeihty available to all types, kinds and classes of aeronant~cal use
without unjust discrimination between such types, k~nds and classes and shall
provide adequate pubhc access during the term of th~s Agreement, and
e it shall not grant or permit anyone to exercise an exclusive right for the conduct of
aeronautical activity on or about an a~rport landln§ area Aeronautical actlvmes
include, but are not limited to scheduled a~rline flights, charter flights, fl~ght
instruction, aircraft sales, rental and repair, sale of aviation petroleum products
and aenal appheatlons The landing area consists of runways or landing strips,
tax,ways, parking aprons, roads, a~rport hghtmg and navigational a~ds, and
f ~t shall not permit non-aeronautical use of a~rport faeflmes, unless noted on an
Page 4 of 12
approved A~rport Layout Plan, w~thout prior approval of the State/FAA, and
~t shall not enter into any agreement nor penmt any almraft to gain d~rect ground
access to the Sponsor's airport from private property adjacent to or m the
,mmedmte area of the mrport Further, Sponsor shall not allow tumraft d~rect
ground access to private property Sponsor shall be subject to th~s prohibition,
commonly known as a "through-the-fence operation," unless an exception ~s
granted ~n writing by the State due to extreme c~rcumstances, and
~t will acqmre all property ~nterests ~dentffied as needed for the purposes of th~s
project and comply w~th all apphcable state and federal laws, rules, regulations,
procedures, covenants and assurances reqmred by the State of Texas or the FAA
m connection wxth the federal grant in the acqms, tlon of such property mterests,
and that mrport property ~dentffied w~thm the scope of this project and Attorney's
Certfficate of Airport Property Interests shall be pledged to mrport use and shall
not be removed from such use w,thout prior written approval of the State, and
the Sponsor shall submit to the State annual statements of mrport revenues and
expenses as requested, and
all fees collected for the use of an atrport or nawgatlonal facility constructed w~th
funds provided under the program shall be reasonable and nondiscriminatory
The proceeds of such fees shall be used solely for the development, operation and
maintenance of the Sponsor's system of mrport(s) or navigational faclllty0tes)
Sponsor shall not be reqmred to pledge ~ncome received from the mmeral estate to
airport use unless state and/or federal funds were used to acqmre the mineral
estate of airport lands or any mterests therem, and
an A~rport Fund shall be estabhshed by resolution, order or ordinance ~n the
treasury of the Sponsor, or ev~dance of the prior creation of an ex~stmg mrport
fund or a properly executed copy of the resolution, order, or ordmance creating
such a fund shall be submitted to the State Such fund may be an account w~thln
another fund, but must be accounted for in such a manner that all revenues,
expenses, retained earnmgs, and balances ~n the account are d~scemlble from other
types of moneys ,dentffied m the fund as a whole All fees, charges, rents, and
money from any source derived from mrport operations must be deposited ~n smd
A~rport Fund and shall not be d~verted to the general revenue fund or any other
revenue fund of the Sponsor All expenditures from the A~rport Fund shall be
solely for airport or ~urport system purposes Sponsor shall be mehg~ble for a
subsequent grant or loan by the State unless, prior to such subsequent approval of
a grant or loan, Sponsor has complied with the requirements of this subparagraph,
and
Page 5 of 12
following completion of the project where airport hght~ng is part of a project, the
Sponsor shall operate such hghtmg at least at low intensity from sunset to sunnse,
and
insofar as it is reasonable and within its power, Sponsor shall adopt and enforce
zoning regulations to restrict the height of structures and use of land adjacent to or
m the lmmedmte vicinity of the airport to heights and actlwtles compatible with
nomaal airport operatmns as prowded m Tex Loc Govt Code Ann §§ 241 001
et seq (Vernon and Vernon Supp ) Sponsor shall also aeqmre and retain
avlgatmn easements or other property ~nterests m or rights to use of land or
airspace, unless Sponsor can show that aeqmslt~on and retention of such interests
will be lmpractmal or will result m undue hardship to Sponsor Sponsor shall be
ineligible for a subsequent grant or loan by the State unless Sponsor has, prior to
such subsequent approval of a grant or loan, adopted and passed an airport hazard
zomng ordinance or order approved by the State, and
a will provide upon request to the State, the englneenng or planning consultant,
and the FAA copies of any maps, plans, or reports of the project site, appheable to
or affecting the above project, and
after reasonable notice, it will permit the State, the FAA, and any consultants and
contractors associated w~th thru project, access to the project sae, and will obtain
permission for the State, the FAA, and consultants and contractors associated w~th
this project, to enter private property for purposes necessary to this project, and
all development of an airport constructed w~th program funds shall be consistent
w~th the Airport Layout Plan approved by the State and maintained by the
Sponsor A reprodumble copy of such plan, and all subsequent modfficatlons
thereto, shall be filed with the State for approval, and
it shall take all steps, including lmgat~on ff necessary, to recover funds spent
fraudulently, wastefully, or m violation of Federal antitrust statutes, or misused m
any other manner in any project upon which Federal and State funds have been
expended For the purposes of this grant agreement, the term "funds" means
funds, however used or disbursed by the Sponsor or Agent that were originally
paid pursuant to this or any other grant agreement It shall obtain the approval of
the State as to any determination of the amount of such funds It shall return the
recovered share, including funds recovered by settlement, order or judgment, to
the State It shall furnish to the State, upon request, all documents and records
pertaining to the determination of the amount of the funds or to any settlement,
litigation, negotiation, or other efforts taken to recover such funds All
Page 6 of 12
settlements or other final posations of the Sponsor, m conrt or otherwise,
mvolvang the recovery of such funds shall be approved m advance by the State
2 The Sponsor hereby eertffies to the State that at wall have acquared clear title an fee simple
to all property upon wbach construction work is to be performed, or have acquared a
leasehold on such property for a term of not less than 20 years, prior to the advertisement
for bids for such construction or procurement of facilities that are part of the above
project, and wlthan the time frame of the project, a sufficient anterest (easement or
otherwise) an any other property wbach may be affected by the project
3 The Sponsor, to the extent of las legal anthonty to do so, shall save harmless the State, the
State's agents, employees or euntraetors from all claims and laabflaty due to actavatles of
the Sponsor, the Sponsor's agents or employees performed under th~s agreement The
Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the
State's agents, employees or euntraetors from any and all expenses, ancludang attorney
fees wlueh might be recurred by the State m htagation or otherwise resisting said claim or
laablllties whach might be imposed on the State as the result of such aetlvmes by the
Sponsor, the Sponsor's agents or employees
4 The Sponsor's acceptance of tbas Offer and ratffieatlon and adoptaon of the Agreement
ancorporated herein shall be evidenced by execution of this instrument by the Sponsor, as
h~remai~er provaded, and smd Agreement shall comprise a contract, eonstltutang the
obligations and rights of the State of Texas and the Sponsor with respect to the
accomplishment of the project and the operation and maantenance of the mrport Such
Agreement shall become effective upon execution of this instrument and shall remain an
full fome and effect for a period of at least 20 years
5 Upon entenng into flus Agreement, Sponsor hereby agrees to name an andivldual, as the
Sponsor's Authonzed Representative, who shall be the State's contact with regard to thas
project, and which individual shall have the authority to make approvals and disapprovals
as required on behalf of the Sponsor
6 The Sponsor and not the State shall, for all purposes, be the "Sponsor" of the project
adentffied above as defined m Tatle 49 U S C Sponsor agrees to assume responslbahty
for operation of the facility in complaance with all applicable state and federal
requarements including any statutes, rules, regulations, assurances, procedures or any
other d~rectlves before, dunng and ailer the completion of tins project
7 The Sponsor by execution of this grant, certifies that it has implemented, or will
implement dunng this project, an effective airport pavement maintenance management
program, and at assures that It will use such program dunng the period of thas Agreement
It will provide upon written request, such reports on pavement condatlon and pavement
Page 7 of 12
management programs as the State determines may be useful Fmlure to comply w~th th~s
condition may make the Sponsor mehg~ble for future grants
8 The Sponsor shall have on file w~th the State a current and approved Attorney's
Certfficate of A~rport Property Interests and Exlub~t A property map
9 The Sponsor shall have on file wtth the State a Certfficat~on Regarding Drug-Free
Workplace Reqmrements and Sponsor Certfficat~on For Equipment/Construction
Contracts
10 Unless otherwise approved by the State, the Sponsor will not acqmre or permit any
contractor or subcontractor to acqmre any steel or manufactured products produced
outside the Umted States to be used for any project for mrport development or noise
compatibility for whmh funds are provided under th~s grant The sponsor will include ~n
every contract a pmws~on lmplemantmg fins special condition
11 The Sponsor agrees to assume the responsibility to assure that all aspects of the grant and
project are done ~n comphance with all apphcable state and federal reqmrements
meludmg any statutes, rules, regulations, assurances, procedures or any other d~rect~ves,
except as otherwise specffically prowded here~n
Part IV- Nomination of the Agent
1 The Sponsor hereby designates the State as the party to apply for, receive and d~sburse all
funds used, or to be used, in payment of the costs of smd project, or m reimbursement to
either of the part~es hereto for costs ~ncurred
2 2~he State shall, for all purposes ~n connection w~th the project ~dentffied above, be the
Agent of the Sponsor The Sponsor herewith grants the State a power of attorney to act
as ~ts agent to perform the following services
Receiving Disbursing Agent
a apply for, accept, receive, and deposit w~th the State Treasury any and all proJeCt
funds granted, allowed, and pa~d or made available by the State and/or the Umted
States under T~tle 49 U S C and congressmnal appropriation made pursuant
thereto, and the Sponsor,
b receive, review, approve and process Sponsor's reimbursement requests for
approved project costs
Page 8 of 12
PART V - Recitals
1 The State shall obtmn an audit as required by federal or state regulatmns, and procure and
forward to the FAA such spemfie project documantatmn as is necessary to complete all
aspects of th~s project
2 The Sponsor hereby agrees to pursue and enforce contract items which are required by
federal and/or state regulations, laws and orders to insure satisfactory performance of
contract vendors Such items mclude, but are not hm~ted to, bid bonds, payment bonds,
and performance bonds Pursmt and enforcement of contract items may reqmre lmgation
and other remedies of law
3 The Umted States and the State of Texas shall not be responsible or liable for damage to
property or mjury to persons which may arise from, or be incident to, eomphance with
this grant agreement
4 This Agreement is executed for the sole benefit of the contracting parties and ~s not
intended or executed for the d~reet or me,dental benefit of any third party Furthermore,
the State shall not be a party to any other contract or commitment which the Sponsor may
enter mto or assume, or have entered ~nto or have assumed, m regard to the above project
5 If the Sponsor falls to comply wlth the conditions of the grant, the State may, by written
not,ce to the Sponsor, suspend the grant m whole or m part The notice of suspension
shall contmn the following
a The reasons for the suspension and the correct,ye action necessary to hft the
suspension,
b A date by which the correct,ye action must be taken,
c Notfficatlon that constderat~on will be g~ven to terminating the grant after the
corrective action date
In the case of suspension or termination, the Sponsor may request the State to reconsider
the suspension or termination Such request for reconsideration shall be made within 45
days after receipt of the notme of suspension or termination
6 Th~s Agreement ~s subject to the apphcable provisions of Title 49 U S C, the V T C A
Transportation Code, Title 3, Chapters 21- 22, et seq, (Vernon and Vernon Supp ), and
the A~rport Zomng Act, Tex Loc Govt Code Ann §§ 241 001 et seq (Vernon and
Vernon Supp ) Failure to comply with the terms of this Agreement or w~th the
aforementioned roles and statutes shall be considered a breach of th~s contract and will
Page 9 of 12
allow the State to pursue the remedies for breach as stated below
a Of primary importance to the State ts compliance w~th the terms and condmons of
th~s Agreement If, however, after all reasonable attempts to reqmre eomphance
have failed, the State finds that Sponsor is unwflhng and/or unable to comply w~th
any of the terms and conditions of th~s Agreement, the State may pursue any of
the following remedies (1) require a refund of any money expended pursuant to
the Agreement herein, (2) deny Sponsor's future requests for aid, (3) request the
Attorney General to bnng stat seeking reimbursement of any money expended on
the project pursuant to the Agreement herein, prowded however, these remedies
shall not limit the State's authority to enforce ~ts rules, regulations or orders as
otherwise prowded by law, (4) declare th~s Agreement null and void, or (5) any
other remedy available at law or m equity
b Venue for resolution by a court of competent junsdletmn of any d~spute ansmg
under the terms of tins Agreement, or for enforcement of any of the provisions of
thxs Agreement, is specifically set by Agreement of the part,es hereto ~n Trav~s
County, Texas
The State reserves the right to amend or wnhdraw th~s Agreement at any time prior to
acceptance by the Sponsor The acceptance period cannot be greater than 30 days after
ISSUance unless extended by the State, which extension shall not be unreasonably be
demed or delayed
This Agreement constitutes the full and total understanding of the pames concernmg their
rights and responsibillt~es in regard to tins project and shall not be modified, amended,
rescinded or revoked unless such modification, amendment, rescission or revocation is
agreed to by both parties In writing and executed by both parties
All commitments by the Sponsor and the State hereunder are subject to constitutional and
statutory lIm~tatmns and restrictions binding upon the Sponsor and the State (including
Sections 5 and 7 of Article 11 of the Texas Constitution, if apphcable) and to the
avallablhty of funds which lawfully may be applied
The Sponsor's acceptance of flus Agreement and ratification and adoption of the A~rport
Prnjeet Participation Agreemont meorporated herein shall be evidenced by execution of
this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance
shall comprise a Grant Agreement, as provided by the Title 49 U S C, constituting the
c0ntraetual obhgat~ons and rights of the United States, the State of Texas and the Sponsor
with respect to the aecomphshment of the ProJect and compliance w~th the assurances
and conditions as provided hereto Such Grant Agreement shall become effective upon
the State's written Not,ce to Proceed ~ssued following execution of th~s agreement
Page 10 of 12
11 Thls contract is subject to the approval as to form by the Attorney GenerSl of the State of
Texas
Part VI - Acceptance of the Sponsor
The City of Denton, Texas, does hereby ratify and adopt all statements, representations,
warranties, covenants and agreements constituting the described project and ~ncorporated
materials referred to ~n the foregoing Agreement, and does hereby accept the Offer, and by such
acceptance agrees to all of the terms and condmons of the Agreement thereof
Executed th~s ]~'/~ dayof ~_~ ,19t~l~
The C~ty of Denton~ Texas
Sponsor
0 Wltl~ss Signature - ' Signature
f~.s ~'~ z-- Cxty Manager
Wlt~ss Title ~r T~tle
Certificate of Sponsor's Attorney
I, t~'l~_ O')tt~/d-~ ,act, ngasattomeyfor ~{~\ d '~~,
Texas, del h'er~by certify that I have fully examined the foregoing Agreeme~ an~the procee&ngs
taken by smd Sponsor relating thereto, and find that the manner of acceptance and execution
thereof, of the smd Agreement by smd Sponsor, ~s m accordance w~th the laws of the State of
Texas
Dat~ av~ ~'~D~n t on f, Texa~, this fl)~day of ~{)~ ,19Lfi/
~. ///~) )less Signature' v ' ' Attorney's Signature
Witness T~tle x.~ T~tle
Page 11 of 12
Part VII - Attorney General's Approval
This contract ~s approved as to form
Attorney General of Texas
Part VIII - Acceptance of the State
STATE OF TEXAS
ARTMENT OF TRANSPORTATION
Y~
Dawd S Fulton, O~rector
Awatlon Dw~smn
Texas Department of TransportatlOl~
Date
Page 12 of 12
CERTIFICATION OF AIRPORT FUND
TxDOT CSJ No 98SIDNTON
I, Kathy DuBose ., Assxstant Cxty Manager of ~xnance
(Name) (T,tle)
do hereby cer[l~ that the Denton Municxpal Axrport Alrpo~ Fund has
(Name of Fund)
been estabhshed for the City of Denton, and that all fees, charges, rents, and money from any
source derived from mrpo~ operations will be deposited for the benefit of the
Denton Muncxpal Axrport A~o~ Fund and will not be dive,ed for
(Name of Fund)
other general revenue fund expenditures or any other specml fund of the City of Denton and that
all expenditures from the Fund will be solely for mrport purposes Such fund may be an account
as part of another fund, but must be accounted for ,n such a manner that all revenues, expenses,
retained earnings, and balances m the account are discernible from other types of moneys
xdent~fied m the fund as a whole
The. C~ty of Denton, Texas, has cp. used flus to be duly executed m xts name, flus /O~day of__
The City of Denton, Texas
(Sponsor)
T~tle Assistant Cxty Manage~
o~ Finance
DESIGNATION OF SPONSOR'S AUTHORIZED REPRESENTATIVE
TxDOT CSJ No 98SIDNTON
I, Ted Benavides , Cxty Manager ,
(Name) (T~tle)
hereby designate Ted genavJ, des as the Sponsor's
(Name, T~tle)
authorized representative for the project, who shall have the authority to make approvals and
dmapprovals as reqmred on behalf of the Sponsor
The C~ty of Denton, Texas, has 9aused th,s to be duly executed m ~ts name, this ~/~ay of
The City of Denton, Texas (Sponsor)
By
Title Cxty Manager
DESIGNATED REPRESENTATIVE
MmhngAddress Cxty of Denton
215 E. McKxnney
Denton, TX 76201
(940) 349-8305
(940) 349-7239
Telephone/Fax
Number
ATTACHMENT A PART V - ASSURANCES
Airport Sponsors
A General
These assurances shall be complied with in the performance of grant agreements for airport development airport planning
and noise compatibility program grants for airport sponsors
2 These assurances ara requlrod to be submitted as part of the Airport Project Participabon Agreement (APPA) by sponsors
requesting funds under the provisions of Title 49, U S C, subtitle VII, as amended As used heroin the term "public agency
sponsor" means a public agency with control of a public-uss a~rport, the term "pdvate sponsor" means a private owner of a
public-uss airport, and the term "sponsor" includes both public agency sponsors and private sponsors
3 Upon acceptance of the grant offer by the sponsor these assurances are incorporated ~n and become part of the grant
agreement
B Duration and Applicability
Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency Sponsor The terms
conditions and assurances of the grant agreement shall remain in full force and effect throughout the useful life of the
facilities developed or equipment acquirod for an airport development or no,se compatibility program project, or throughout
the useful life of the project items Installed within a facility under a noise compatibility program project, but in any event not
to exceed twenty (20) years from the date of acceptance of a grant offer of Federal funds for the project However, there
shall be no limit on the duration of the assurance against exclusive rights or the terms conditions and assurances with
respect to real property acquirod with Federal funds Furthermore the duration of the Civil Rights assurance shall be
specified In the assurances
2 Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor The preceding paragraph 1
also applies to a private sponsor except that the useful life of project items installed within a facility or the useful life of the
facilities developed or equipment acquired under an airport development or noise compatibility program project shall be no
less than ten (10) years from the date of acceptance of Federal aid for the project
3 Airport Planning Undertaken by e Sponsor Unless otherwise specified in the grant agreement, only Assurances 1, 2 3
5, 6, 13, 18, 30, 32, 33 and 34 in section C apply to planning projects The terms, conditions and assurances of the grant
agreement shall romain in full force and effect dudng the life of the project
C Sponsor Certification The sponsor hereby assures and certifies with respect to this grant that
"1 General Federal Requirements It will comply with ali applicable Federal laws regulations executive orders policies
guidelines and roquiraments as they relate to the project acceptance and use of Federal funds for this project ~ncluding but
not limited to the following
Federal Legislation
a Title 49 U S C subtitle VII, as amended 1
b Davis-Bacon Act * 40 U S C 276(a) et seq
c Federal Fair Labor Standards Act - 29 U S C 201 et ssq
d HatchAct 5USC 1501,etssq2
e Uniform Relocation Assistance and Real Property Acquisition Policies Act (¥ 1970 Title 42 U S C 4601 et seq 1 2
f National Historic Preservation Act of 1966 - Section 106 16 U S C 470(f)
g Aroheologicel and Historic Prossrvation Act of 1974 - 16 U S C 469 through 469c 1
h Native Americans Grave Repatriation Act - 25 U S C Section 3001 et seq
i Clean Air Act, P L 90-148, as amended
J Coastal Zone Management Act, P L 93-205, as amended
k Flood Disaster Protection Act of 1973 Section 102(a) - 42 U S C 4012a 1
I Title 49 U S C, Section 303 (formerly known as Section 4(f))
m Rehabilitation Act of 1973 - 29 U S C 794
n Civil Rights Act of 1964 Title VI - 42 U S C 2000d through d-4
o Age Discrimination Act of 1975 - 42 U S C 6101 et seq
p American Indian Religious Freedom Act, P L 95-341 as amended
q Architectural Bafflers Act of 1968 -42 U S C 4151, et seq 1
r Powerplant and Industrial Fuel Use Act of 1978 - Section 403- 2 U S C ~373 1
s Contract Work Hours and Safety Standards Act 40 U S C 327 et seq '
t Copeland Antiklckback Act - 18 U S C 874 1
u National Envlronmenfal Policy Act of 1969 - 42 U S C 4321 et seq 1
v Wild and Scenic Rivers Act P L 90-542 as amen,~ed
w Single Audit Act of 1984 - 31 U S C 7501 et seq '~
x Drug-Froe Workplace Act of 1988 - 41 U S C 702 through 706
Executive Orders
Executive Order 11246 Equal Employment Opportunity1
Execotive Order 11990 Protection of Wetlands
Executive Order 11998 FloodPlain Management
Executive Order 12372 Ints~govemmental Review of Federal Programs
Executive Order 12699 Seismic Safaty of Federal and Federally Asslstsd New Building Construction1
Executive Order 12898 - Environmental Justice
A~rport Assurances (06/02/97 - State Modified 7/97) A I
Federal Regulations
a 14 CFR Part 13 Investigative and Enforcement Procedures
b 14 CFR Part 16 - Rules of Practica For Federally Assisted Airport Enforcement Proceedings
C 14 CFR Part 150 Airport noise oompatibility planning
d 29 CFR Part 1 - Procedures for predetermination of wage rates 1
e 29 CFR Part 3 - Contractors and sub~:ontracfors on public building or public work rinanced ~n whole or part by
loans or grants tram the United States ~
f 29 CFR Part 5 Labor standards provisions applicable to contracts covering federally financed and assisted
construction (also labor stendarda, provisions applicable to nonconstructlon contracts subject to the Contract Work
Hours and Safety Standards Act)
g 41 CFR Part 60 Office of Federal Contract Compliance Programs, Equal Employment Opportunity Department
of Labor (Federal and federally assisted contracting requlrsments) 1
h 49 CFR Part 18 - Unlfol'~m administrative requirements for grants and cooperative agreements to state and local
governments o
49 CFR Part 20 - New restrictions on lobbying
49 CFR Part 21 - Nond[scdminarion in federally-assisted programs of the Department of Transportation -
effeotuarion of Title VI of the Civil Rights Act of 1964
k 49 CFR Part 23 - Partlciparion by minority bus~ness enterprise in Department of Transportation programs
49 CFR P~ 24 - Uniform relocation asslstanca and real property acqu~sirion for Federal and federally assisted
programs --
m 49 CFR Part 27 - Nondiscrimination on the basis of handicap in programs and activities receiving or benefitting
from Federal financial assistance 1
n 49 CFR Part 29 - Govemmentwide debarment and suspension (non-procurament) and govemmentwide
requirements for drug-free workplace (grants)
o 49 CFR Part 30 - Denial of public works contracts ~) suppliers of goods and services of countries that deny
procurement market access to U S contractors
p 49 CFR Part 41 - Seismic safety of Federal and federally assisted or regulated new building construction 1
Office of Management and Budget Clroulars
a A~87 - Cost Principles Applicable to Grants and contracts with State and Local Governments
b A-128 - Audits of State and Local Governments
(1)These laws do not apply to airport planning sponsors
These laws do not apply to private sponsors
49 CFR Part 18 and OMB Circular A 87 contain requirements for State and Local Governments
receiving Federal asststanca Any requirement levied upon State and Local Governments by this
regulation and circular shall also be applicable to private sponsors receiving Federal assistance under
Title 49, United States Code
Specific assurances raqulrsd to be included in grant agreements by any of the above laws, regulations or circulars are
incorporated by reference in the grant agreement
2 Responsibility and Authority of the Sponsor
a Public Agen~J Sponsor It has legal authority to apply for the grant, and to finance and carry out the proposed
project, that a resolution, motion or similar action has been duly adopted or passed as an official act of the
applicant's governing body authorizing the filing of the APPA including all understandings and assurances
contained therein, and directing and authorizing the person identified as the official representarive of the applicant
to act in connection with the APPA and to provide such additional information as may be requlrad
b Private Sponsor It has legal authority to apply for the grant and to finance and carry out the proposed project
and comply with all terms, conditions and assurances of this grant agreement It shall designate an official
representative and shall In writing direct and authorize that person to file this APPA, including all understandings
and assurances contained therein, to act in connection with this APPA and to provide such additional information
as may be required
3 Sponsor Fund Availability It has sufficient funds available for that portion of the project costs which are not to be pa~d bY
the United States It has sufficient funds available to assure operation and maintenance of items funded under the grant
agreement which it will own or control
4 Good Title
a It holds good rifle, satisfactory to the Secretary to the landing area of the airport or site thereof or will give
assurance sarisfactory to the Secretary that good title will be acquired
b For noise compatibility program projects to be carried out on the property of the sponsor, it holds good title
sarisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will g~ve
assurance to the Secretary that good title will be obtained
5 Preserving Rights and Powers
a It will not take or permit any action which would operate to deprive ~t of any of the rights and powers necessary to
perform any or all of the terms, conditions, and assurances in the grant agreement without the wntten approval of
the Secretary, and will act promptly to acquire, extinguish or modify any outstanding dghts or claims of right of
others which would interfera with such performance by the sponsor This shall be done In a manner acceptable to
the Secretary
Alrport Assurances (06/02/97 State Modified 7/97) A 2
b It will not sell lease encumber or otherwise transfer or dispose of any part of its title or other interests ~n the
property shown on Exhibit A to this APPA or for a noise compatibility program project that portion of the property
upon which Federal funds have been expended for the duration of the terms conditions, and assumncos ~n the
grant agreement without approval by the Secretary If the transferee Is found by the Secretary to be eligible under
Title 49 United States Code, to assume the obligations of the grant agreement and to have the power authority
and financial resources to carry out all such obligations the sponsor shall insert In the contract or document
transferring or dlspcatng of the sponsor's interest, and make binding upon the transferee all of the terms
conditions and assurances contained In this grant agreement
c For all noise compatibility program projects which are to be carded out by another unit of local government or are
on property owned by a unit of local government other than the sponsor it will enter into an agreement with that
govemmerd Except as othe~vise specified by the Secretary that agreement shall obligate that government to the
same terms conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to
undertake the noise compatibility program project That agreement and changes thereto must be satisfactory to
the Secretary It will take steps to enforce this agreement against the local government if there is substantial non
compliance with the terms of the agreement
d For noise competlbllity program projects to be carried out on privately owned property it will enter ~nto an
agreement with the owner of that property which Includes provisions specified by the Secretary It w~ll fake steps
to enforce this agreement against the property owner whenever there is substantial non-complianca w~th the terms
of the agreement
e If the sponsor is a prlvata sponsor, It will take steps sahsfactory to the Secretary to ensure that the airport w~ll
continue to function as a public-use airport In accordance with these assurances for the duration of these
If an arrangement Is made for management and operation of the airport by any agency or person other than the
sponsor or an employee of the sponsor, the sponsor will reserve sufficient dghts and authority to insure that the
airport will be operated and maintained in accordance Title 49, United States Code, the regulations and the terms
conditions and assurances In the grant agreement and shall Insure that such arrangement also requires
camplfanca therewith
6 Consistency with Local Plans The project is reasonably consistent with plans (existing at the time of submission of this
APPA) of public agencies that are authorized by the State in which the project is located to plan for the development of the
area surrounding the airport For noise compatibility program projects, other than land acquisition, to be carried out on
property not owned by the airport and over which property another agency has land use control or authority, the sponsor
shall obtain from each such agency a wdttan declaration that such agency supports that project and the project is
reasonably consistent with the agency's plans regarding the property
7 Consideration of Local Interest It has given fair consideration to the interest of communities in or near where the project
may be located
8 Consultation with Users In making a decision to undertake any airport development project under Title 49, United States
Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed
9 Public Hearings In projects involving the location of an airport an airport runway or a major runway extension ~t has
afforded the opportunity for public headngs for the purpose of considering the economic social and environmental effects of
the airport or runway location and Its conststancy with goals and objectives of such planning as has been carded out by the
community and It shall, when requested by the Secretary submit a copy of the transcript of such hearings to the Secretary
Further for such projects, It has on Ifa management board either voting representation from the communities where the
project is located or has advised the communities that they have the right to petition the Secretary concamlng a proposed
project
t0 Air end Water Quality Standards In projects involving airport location a major runway extension or runway location It will
provide for the Governor of the state in which the project is located to carfify In writing to the Secrofary that the project will
be located designed constructed, and operated so as to comply with applicable air and water quality standards In any
case where such standards have not been approved and where applicable air and water quality standards have been
promulgated by the Administrator of the Environmental Protection Agency, certification shall be obtained from such
Administrator Notice of cartiflcation or refusal to certify shall be provided within sixty days after the proJect APPA has been
received by the Secretary
tt Pavement Preventive Malntenanca With respect to a project approved after January I 1995, for the replacement or
reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement
maintenance-management program and it assures that it will use such program for the useful life of any pavement
constructed, reconstructed or repaired with Federal financial asslstanca at the airport It will provide such reports on
pavement condition and pavement management programs as the Secretary determines may be useful
12 Terminal Development Prerequfaltaa For projects which include terminal development at a public use airport as defined
In Title 49, It has, on the date of submittal of the project grant request, all the safety equipment required for cartification of
such airport under section 44706 of Title 49 United States Code and all the security equipment required by rule or
regulation and has provided for access to the passenger enplaning and deplaning area of such airport to passengers
enplaning and deplaning from aircraft other than air career a~rcraff
A~rport Assurances (06/02/97 State Modified 7/97) A 3
13 Acoountlng System, Audit, and Recordkeeplng Requirements
a It shall keep all project accounts and records which fully disclose the amount and disposit~on by the recip~ent of
the proceeds of the grant, the total cost of the project in connecbon with which the grant is g~ven or used and the
amount or nature of that portion of the cost of the project supplied by other sources and such other financial
records pertinent to the pYoJect The accounts and records shall be kept in accordance with an accounting system
that will facilitate an effeottve audit In accordance with the Single Audit Act of 1984
b It shall make available to the Secretary and the Comptroller General of the United States or any of their duly
authorized representatives, for the purpose of audit and examination, any books, documents papers, and records
of the recipient that are pertinent to the grant The Secretary may roquira that an appropriate audit be conducted
by a recipient In any case In which an Independent audit is made of the accounts of a sponsor relating to the
disposition of the proceeds of a grant or relating to the project in connection with which the grant was g~ven or
used, It shall file a certified copy of such audit with the Comptroller General of the United States not later than six
(6) months following the close of the fiscal year for which the audit was made
t4 Minimum Wage Rates It shati Include, in all contracts in excess of $2 000 for work on any projects funded under the grant
agreement which Involve labor, provisions establishing minimum rates of wages to be predetermined by the Secretary of
Labor, In acoordance with the Davis-Bacon Act, as amended (40 U S C 276a 276a-5) which contractors shall pay to skilled
and unskilled labor, and such minimum rates shati be stated in the invitation for bids and shall be included In proposals or
bids for the work
15 Veteren'e Preference It shall Include in all contracts for work on any project funded under the grant agreement which
involve labor, such provisions aa are necessary to insure that in the employment of labor (except in executive
administrative, and supervisory positions), preference shall be given to Veterans of the Vietnam era and disabled veterans
as defined In Section 47112 of Title 49 United States Code However this preference shall apply only where the ~ndivtduals
ara available and qualified to perform the work to which the employment relates
16 Conformity to Plans and Specifications It will execute the project subject to plans, specifications, and schedules
approved by the Secretary Such plans, specifications and schedules shall be submitted to the Secretary pdor to
comn~ncamest of sits preparation, construction, or other performance under this grant agreement, and upon approval of
the Secretary, shall be incorporated Into this grant agreement Any modification to the approved plans specifications, and
schedules shall also be subject to approval of the Secretary, and incorporated into the grant agreement
17 Conatru~lon Inspection and Approval It will provide and maintain competent fechnical supervlcion at the construction
site throughout the project to assure that the work conforms to the plans specifications and schedules approved by the
Secretary for the project It shall subject the construction work on any project contained in an approved project APPA to
Inspection and approval by the Secretary and such work sha[[ be in accordance with regulations and procedures prescribed
by the Secretary Such regulations and procedures shall require such cost and progress reporting by the sponsor or
sponsors of such project as the Secretary shall deem necessary
18 Planning Projects In carrying out planning projects
a It will execute the project in accordance with the approved program narrative contained in the project APPA or with
the modifications similarly approved
b It wiil furnish the Secretary with such periodic reports as required pertaining to the planning project and planning
work activities
c It will Include In all published material prepared in connection with the planning project a notice that the material
was prepared under a grant provided by the United States
d It will make such material available for examination by the public, and agrees that no matanal prepared with funds
under this project shall be subject to copyright in the United States or any other country
e It will give the Secretary unreabicted authority to publish disclose dlstribufe, and otherwise use any of the
material prepared in connerYdon with this grant
f It w~ti grant the Secretary the dght to disapprove the sponsor's employment of specific consultants and their
subcontractors to do all or any part of this project as well aa the right to disapprove the proposed scope and cost
of professional services
g It will grant the Secretary the dght to disapprove the use of the sponsor's employees to do all or any part of the
project
h It understands and agrees that the Secretary's approval of this project grant or the Secratary's approval of any
planning material developed as part of this grant does not constitute or imply any assurance or commitment on the
part of the Secretary to approve any pending or future request for a Federal airport grant
t 9 Operation end Maintenance
a The airport and all facillttss which are necessary to serve the aeronautical users of the airport, other than facilities
owned or controlled by the United States, shatl be operated at all times in a safe and serviceable condition and ~n
accordance with the minimum standards as may be required or proscribed by applicable Federal, state and local
agencies for maintenance and operation It wl;I not cause or permit any activity or action thereon which would
Interfere with its use for airport purposes It will suitably operate and maintain the airport and all tacllities thereon
or connected therewith with due regard to climabc and flood conditions Any proposal to temporarily close the
airport for nonaeronautlcal purposes must first be approved by the Secretary
Airport Assurances (06/02/97 - State Modified 7/97) A 4
In furtherance of this assurance, the sponsor will have in effect arrangements for
(1) Operating the airport's aeronautical facilities whenever required
(2) Promptly marking and lighting hazards resulting from airport conditions including temporary conditions and
(3) Promptly notifying airmen of any condition affecting aeronautical use of the airport
Nothing contained herein shall be construed to raquira that the airport be operated for aeronautical use during
temporary pedods when snow, flood or other climatic conditions interfere with such operation and maintenance
Further, nothing herein shall be construed as requiring the maintenance repair restoration or replacement of any
structure or faciltfy which Is substantially damaged or destroyed due to an act of God or other condition or
cimumatance beyond the control of the sponsor
b It wtll suitably operate and malntath noise compatibility program items that it owns or controls upon which Federal
funds have been expended
20 Hazard Removal and Mitigation It will take appropdata action to assure that such terminal airspace as is raqu~red to
protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately
ciearad and protected by removing, lowering, relocating marking or lighting or otherwise mitigating existing airport hazards
and by preventing the establishment or creation of futura airport hazards
2t Compatible Land Use It will take appropriate action, including the adoption of zoning laws to the extant reasonable to
restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with
normal airport operations, Including landing and takeoff of aircraft In addition, if the project is for noise compatibihty
program implementation, it will not cause or permit any change in land use, within its Jurisdiction, that will reduce its
compatibility with respect to the airport, of the noise compatibility program measures upon which Federal funds have been
expended
22 Economic Nondiscrimination
a It will make its airport available as an airport for public use on reasonable terms and without unjust d~scrimination
to any person, firm, or corporation to conduct or to engage In any aeronautical activity for furnishing services to
the public at the airport
b In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to
any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the
public at the airport, the sponsor will insert and enforce provisions raquidng the contractor to-
(l) furnish said services on a reasonable, and not unjustly dtschm[natory basis to all users thereof and
(2) charge reasonable and not unjustly diacriminatory, prices for each unit or service provided that the contractor
may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of pnce
reductions to volume purchasers
c Each fixed-based operator at the airport shall be subject to the same rates fees rentals and other charges as are
uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing
the same or similar facilities
d Each air carrier using such airport shall have the dght to service itself or to use any fixed-based operator that is
authorized or permitted by the airport to serve any air carrier at such airport
e Each air carrier using such airport (whether as a tenant, nontanant, or subtenant of another air cartier tenant) shall
be subject to such nondiscriminatory and substantially comparable roles, regulations, conditions rates fees
rentals, and other charges with respect to facilities directly and substantially related to providing air transportation
as ara applicable to all such air carriers which make similar use of such airport and utilize similar facilities subject
to reasonable classifications such as tenants or nontenants and signatory carriers and nonsignatory careers
Classification or status as tenant or signatory shall not be unreasonably w~thhe[d by any airport provided an air
carrier assumes obligations substantiatiy similar to those already imposed on air carriers In such classification or
status
It will not exercise or grant any right or privilege which operates to prevent any person, firm or corperation
operating aircraft on the airport, from performing any services on Its own aircraft with its own employees
(including, but not limited to maintenance, repair, and fueling) that it may choose to perform
g In the event the sponsor itself exercises any of the rights and privileges raferrad to in this assurance the serv~cas
Involved will be provided on the same conditions as would apply to the furnishing of such ssrvlcos by commercial
aeronautical service providers authorized by the sponsor under these provisions
h The sponsor may establish such raasonabte, and not unjustly discriminatory, conditions to be met by all users of
the airport as may be necessary for the safe and efficient operation of the airport
The sponsor may prohibit or limit any given type kind or class of aeronautical use of the a~rport If such action is
necessary for the safe operation of the a{rport or necessary to serve the civil aviation needs of the public
23 Exclusive Rights It will permit no exclusive right for the use of the airport by any person providing or Intending to provide
aeronaut[cai servlcas to the public For purposes of this paragraph the providing of the services at an airport by a s~ngle
fixed based operator shall not be construed as an exclusive right if both of the following apply
a It would be unreasonably costly, burdensome, or Impractical for more than one fixed-based operator to provide
such services, and
b If allowing more than one fixed-bassd operator to provide such services would raquirs the reduction of space
leased pursuant to an existing agreement between such single fixed-based operator and such airport
It further agrees that it will not, either directly or indirectly, grant or permit any person firm or corporation, the exclusive right
at the airport to conduct any aeronautical actiwties, Including but not limited to charter flights pilot training aircraft rental
and slghtssethg, aerial photography, crop dusting, aerial advedlsing and surveying air carrier operations, aircraft sales and
services, sale of aviation petroleum products whether or not conducted In conjunction with other aeronaut~col acbwty repair
and maintenance of aircraft, sale of aircraft parts and any other activities which because of their direct relationship to the
operation of aircraft can be regarded aa an aeronautical activity and that it will terminate any exclusive right to conduct an
aeronautical acttvIt~ now existin~l at such an airport before the grant of an;/assistance under Title 49, United States Code
Au'port Assurances (06/02/97 - State Modified 7/97) A 5
24 Fee and Rental Structure It will maintain a fee and rental structure for the facilities and services at the airport which will
make the airport as self-sustaining as possible under the circumstances existing at the particular airport taking into account
such factors as the volume of traffic and economy of collection No part of the Federal share of an airport development
airport planning or noise compatibility project for which a grant is made under Tiffs 49 United States Code the A~rport and
Airway Improvement Act of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be
included in the rate basis In establishing fees, rates and chargos for users of that airport
25 Airport Revenues
a All revenues generated by the airport and any local taxes on aviation fuel established after December 30 1987
will be expended by it for the capital or operating costs of the airport, the local airport system or other local
facilities which are owned or operated by the owner or operator of the airport and which are directly and
substantially related to the actual air transportation of passengers or property or for noise mitigation purposes on
or off the airport Provided, however that If covenants or assurances in debt obligations issued before September
3, 1982, by the owner or operator of the airport or previsions enacted before September 3, 1982, in governing
statutes controlling the owner or operator's financing previde for the use of the revenues frem any of the airport
owner or operator's facilities including the airport to support not only the airport but also the airport owner or
operator's general debt obligations or other facilities then this limitabon on the use of all revenues generated by
the airport (and In the case of a public airport, Iocel taxes on aviation fuel) shall not apply
b As part of the annual audit required under the Single Audit Act of 1984 the sponsor will direct that the audit will
review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes m
paragraph (a), and thdlcaflng whether funds paid or transferred to the owner or operator are paid or transferred in
a manner consistent with Tiffs 49 United States Code and any other applicable provision of law including any
regulation promulgated by the Secretary or Administrator
c Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the
provisions of Section 47107 of Title 49 Unltad States Code
26 Reports and Inepeetlone It will
a submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably
request and make such reports available to the public make available to the public at reasonable times and places a report
of the airport budget in a format preschbed by the Secretary,
b for airport development projects, make the airport and all airport records and documents affecting the airport
including deeds, leases, operation and use agreements, regulations and other Instruments available for inspection by any
duly authorized agent of the Secretary upon reasonable request
c for noise compatibility program projects, make records and documents relating to the project and continued
compliance with the terms, conditions, and assurances of the grant agreement including deeds leases agreements
regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable
request and
d In a format end time prescribed by the Secretary, provide to the Secretary and make available to the public
following each of its fiscal years an annual report listing in detail
(1) all amounts paid by the airport to any other unit of government and the purposes for which each such payment
was made, and
(2) all services and property provided by the airport to other units of government and the amount of compensabon
received for provision of each such service and property
27 Use by Government Aircraft It will make available all of the facilities of the atrport developed with Federal financial
assistance and all those usable for landing and takeoff of aircraft to the United States for use by Government a~rcrafl in
common with other aircraft at all times without charge except if the use by Government mrcraff Is substantial, charge may
be made for a reasonable share proportional to such use for the cost of operating and maintaining the facilities used
Unless otherwlss determined by the Secretary, or otherwise agreed to by the sponsor and the using agency, substantial use
of an airport by Government aircraft will be considered to exist when operations of such aircraft are in excess of those
which, in the opinion of the Secretary, would unduly interfere with use of the landing areas by other authorized aircraft or
during any calendar month that-
a Five (5) or more Govemment alrereft are regularly based at the airport or on land adjacent thereto or
b The total number of movements (counting each landing as a movement) of Government aircraft is 300 or more or
the gross accumulative weight of Government aimraff using the airport (the total movement of Government aimraft
multiplied by gross weights of such aircraft) is in excess of five million pounds
28 Land for Federal Facilities It will furnish without cost to the Federal Government for use in connection with any air traffic
control or air navigation activities, or weather-reporting and communication activities related to air traffic control any areas
of land or water or estate therein, or rights in buildings of the sponsor as the Secretary considers necessary or desirable for
construction, operation and maintenance at Federal expense of space or facilities for such purposes Such areas or any
portion thereof will be made available as provided here~n within four months after receipt of a written request from the
Secretary
29 Airport Layout Plan
Airport Assurances (06/02/97 - State Modlficd 7/97) A 6
a it will keep up to date at all times an airport layout plan of the airport showing (1) boundaries of the airport and all
proposed additions thereto together with the boundaries of all offsite areas owned or controlled by the sponsor for
airport purposes and proposed additions thereto (2) the location and nature of all existing and proposed a~rpcrt
facilities and structures (such as runways, taxiways aprons terminal buildings hangars and roads) including all
proposed extensions and reductions of existing airport facilities and (3) the location of all existing and proposed
nonavlaflon areas and of all existing improvements thereon Such airport layout plans and each amendment
revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be
evidenced by the signature of a duly authonzed representative of the Secretary on the face of the airport rayout
plan The sponsor will not make or permit any changes or alterations in the airport or any of its facihties whmh are
not in conformlty with the airport layout plan as approved by the Secretary and which might in the opinion of the
Secretary adversely affect the safety utility or efficiency of the airport
b If a change or alteration in the airport or the facilities ~s made which the Secretary determines adversely affects the
safety, utility, or efficiency of any federally owned leased or funded property on or off the a~rport and which ~s not
in conformity with the airport layout plan as approved by the Secretary the owner or operator will if requested, by
the Secretary (1) eliminate such adverse effect ~n a manner approved by the Secretary or (2) bear all costs of
relocating such property (or replacement thereof) to a sits acceptable to the Secretary and all costs of restonng
such property (or replacament thereof) to the level of safety utility efficiency and cost of operation ex~sting before
the unapproved change in the airport or its facilities
30 Civil Rights It will comply with such rules as are promulgated to assure that no person shall on the grounds of race
creed, color national origln sex age, or handicap be excluded from participating in any activity conducted with or benefiting
from funds received from this grant This assurance obrlgates the sponsor for the period during which Federal financial
asslsfanca ia extended to the program, except where Federal financial assistance is to provide or is in the form of personal
property or real property or interest therein or structures or improvements thereon in which case the assurance obl~gatas the
sponsor or any transferee for the longer of the following periods (a) the period during which the property is used for a
purpose for which Federal financial aaslstanca Is extended or for another purpose involving the provision of similar services
or benefits or (b) the period during which the sponsor retains ownership or possession of the property
3'1 Disposal of Land
a For land purchased under a grant for airport noise compat~bility purposes It wiIi dispose of the land when the land
is no longer needed for such purposes at fair market value at the earliest practicable time That portion of the
proceeds of such disposition which is proportionate to the United States' share of acquisition of such land w~ll, at
the discretion of the Secretary, 1) be paid to the Secretary for deposit in the Trust Fund or 2) be reinvested in an
approved noise compafibility project as prescribed by the Secretary
b (1) For land purchased under a grant for airport development purposes (other than noise compatibility) ri will
when the land is no longer needed for airport purposes, dispose of such land at fair market value or make
available to the Secretary an amount equal to the Unltad States' proportionate share of the fair market value of the
land That portion of the pmcaeds of such disposition which Is proport[onata to the Unltad States' share of the
cost of acquisition of such land will (a) upon application to the Secretary be reinvested ~n another eligible a~rport
Improvement project or projects approved by the Secretary at that airport or within the national airport system or
(b) be paid to the Secretary for deposit in the Trust Fund if no eligible project exists
(2) Land shall be considered to be needed for airport purposes under this assurance if (a) it may be needed for
aeronautical purposes (including runway protection zones) or serve as noise buffer land and (b) the revenue from
Intedm uses of such land osntdbutas to the financial self-sufficiency of the airport Further, land purchased w~th a
grant received by an airport operator or owner before December 31, 1987 will be considered to be needed for
airport purposes if the Secretary or Federal agency making such grant before December 31, 1987 was notified by
the operator or owner of the uses of such land, did not object to such use and the land continues to be used for
that purpose such use having commenced no later than December 15, 1989
c Disposition of such land under (a) or (b) will be subject to the retention or reservation of any interest or right
therein necessary to ensure that such land will only be used for purposes which are cempatible with noise levels
associated with operation of the airport
32 Englneertng and Design Services It will award each contract or sub contract for program management construction
management, planning studies feasibility studtss, architectural services preliminary engineering design engineering
surveying mapping or related sen/loss with respect to the project in the same manner as a contract for architectural and
engineering sen/icas is negotiated under Title IX of the Federal Property and Administrative Services Act of 1949 or an
equivalent qualifications based requirement prescribed for or by the sponsor of the airport
33 Foreign Market Restrictions It will not allow funds provided under this grant to be used to fund any project which uses
any product or service of a foreign country during the period in which such foreign country is listed by the United States
Trade Representative as denying fair and equitable market opportunities for products and suppliers of the Umted States m
procurement and construction
34 Policies, Standards, and Specifications It will carry out the project in accordance w~th policies standards and
specifications approved by the Secretary Including but not limited to the advisory circulars listed in the Current FAA Advisory
Circulars for AlP projects dated Me}' 1~ '1995 and included in th~s grant and ~n accordance with appl~ceble state policies
standards, and speclflcetions approved by the Secretary
Airport Assurances (06/02/97 State Modified 7/97) A 7
35 Relocation and Reel Property Ac~quleltlon (1) It will be guided in acquiring real property, to the greatest extent
practicable under State law by the land acqutsltion policies In Subpart B of 49 CFR Part 24 and will pay or reimburse
property owners for necessary expenses as specified in Subpart B (2) It will provide a relocation assistance program
offering the services described In Subpart C and fair and reasonable relocation payments and assistance to d~splaced
persona aa requlrad in 8ubpart D atld E of 49 CFR Part 24 (3) It WIll make available within a reasonable period of bme prior
to displacement, comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24
36 Acoaaa By Inter¢lty Buass The airport owner or operator will permit to the maximum extent practicable intercity buses
or other modes of transportation to have access to the airport however, it has no obligation to fund special facilities for
intercity buses or for other modes of transportation
A~q~ort Assurances (06/02/97 - State Modified 7/97) A 8
CURRENT FAA ADVISORY CIRCULARS FOR AlP PROJECTS
Updated On May 1, 1995
NUMBER SUBJECT
70/7460 1H CHG I & 2 Obstruction Mad(lng and Lighting
150/5000 13 Announcement of Availiblllty RTCA Inc Document RTCA 221 Guidance and Recommended
Requirements for Airport Surface Movement Sensors
150/5100 14C Amhlteoturel, Engineeting and Planning Consultant Services for A~rport Grant ProJects
150/5210 5B Painting, Marking and Lighting of Vehicles Used on an Airport
150/5210 7B Aimrsff Fire and Rescue Communications
150/5210 14 Airport Fire and Rescue Personnel Protective Clothing
150/5210 15 Airport Rescue and Flreflghting Station Build[ag Design
150/5210 18 Systems for interactive Trainlng of Airport Personnel
150/5220 4B Water Supply Systems for Aimrsff Fire and Rescue Protection
150/5220 10A Guide Spoclflcetlon for Watar/Foam Type Almraff Rescue and Fireflghieg Vehicles
150/5220 13B Runway Surface Condition Sensor Specification Guide
150/5220 14A Airport Fire and Rescue Vehicle Specification Guide
15015220 16A Automated Weather Observing Systems for NonFederal Applications
150/5220 17A Design Standards for Aimraff Rescue FIreflghting Training Facilities
150/5220 18 Bulldlega for Storage and Maintenance of Airport Snow and Ice Control Equipment and Materials
150/5220 19 Guide Specification for Small Dual Agent Aimrsft Rescue and Firefighting Vehicles
150/5220 20 CHG 1 Airport Snow and Ice Control Equipment
150/5220 21 CHG 1 Guide Specifications for Lifts Used to Board Aidlne Passengers with Mobility impairments
150/5300 13 CHG 1 2 3 &4 Airport Design
150~5300 14 Design of Aircraft Deicing Facilities
150/5300 15 Use of Value Engineering for Engineering Design of Airport Grant Projects
150/5320 5B Airport Drainage
150/5320-6C CHG t & 2 Airport Pavement Design and Evaluation
150/5320-12B Measurement Construction and Maintenance of Skid Resistant Airport Pavement Surfaces
150/5320-14 Airport Landscaping for Norse Control Purposes
150/5325-4A CHG I Runway Length Requirements for Airport Design
150/5340 1G Standards for Airport Mad(lng
150/5340-4C CHG I & 2 Installation Details for Runway Centehine Touchdown Zone Lighting Systems
150/5340 5B CHG 1 Segmented Cimle Airport Marker System
150/5340 14B CHG I & 2 Economy Approach Lighting Aids
150/5340 17B Standby Power for NonFAA Airport Lighting Systems
150/5340 18C CHG I Standards for Airport Sign Systems
150/5340 19 Taxlway Contadina Lighting System
150/5340-21 Airport Miscellaneous Lighting Visual Aids
150/5340-23B Supplemental Wind Cones
150/5340-24 CHG I Runway and Taxiway Edge Lighting System
150/5340-27A Air T(>.Ground Radio Control of Airport Lighting Systems
150/5345-3D Specification for L 821 Panels for Remote Control of Airport Lighting
150/5345 5A Circuit Selector Switch
150/5345-7D CHG 1 Specification for L-824 Underground Eloctdcal Cable for Airport Lighting Circuits
150/5345 10E Specification for Constant Current Regulators Regulator Monitors
150/5345 12C Specification for Airport and Heliport Beacon
150/5345 t 3A Specification for L 841 Auxiliary Relay Cabinet Assembly for P~lot Control of Airport Lighting Cimurts
150/5345-26B CHG t & 2 Specifications for L 823 Plug and Receptacle Cable Connectors
150/5345 27C Specification for Wind Cones Assemblies
150/5345 28D CHG I Precision Approach Path Indicator (PAPI) Systems
150/5345 39B CHG 1 FAA Specification L-853 Runway and Tax[way Contadina Retrotiectlve Markers
150/5345-42C CHG I Specification for Airport Light Bases Transformer Housings Junction Boxes and Accessories
150/5345-43D Specification for Obstruction Lighting Equipment
150/5345-44F CHG I Specification for Taxlway and Runway Signs
150/5345-45A Lightweight Approach Light Structure
150/5345-46A Specification for Runway and Taxiway Light Fixtures
150/5345-47A Isolation Transformers for Airport Lighting Systems
150/5345 49A Specification L-854, Radio Control Equipment
150/5345 50 CHG 1 Specification for Portable Runway Lights
150/5345 51 CHG 1 Specification for Discharge-Type Flasher Equipment
150/5345 52 Genadc Visual Gi~deslope Indicators (GVGI}
150/5345 53 Airport Lighleg Equipment Certification Program
150/5360 9 Planning and Design of Airport Terminal Facilities at NonHub Locations
150/5360 12A Airport Signing and Graphics
150/5360-13 CHG I Planning and Design Guidance for Airport Terminal Fac~lihes
150/5370-2C Operational Safety on Airports During Construction
150/5370-6B Construction Progress and Inspection Report Airport Grant Program
150/5370 10A CHGI 2 3 4 5 6 7 &8 Standards for Speolfyingconstruction of AIrports
150/5370 11 CHG 1 Use of Nondestructive Testing Devices In the Evaluation of Airport Pavements
150/5370 12 Quality Control of Construction for Airport Grant ProJeCtS
150/5390 2A Heliport Design
150/5390 3 Vertiport Design
^9
CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS
A The grantee cemfies that it will or will continue to provide a drug-free workplace by
(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the
actions that will be taken against employees for violation of such prohthltlon
Co) Estabhslung an ongoing drug-free awareness program to mfonu employees about-
(1) The dangers of drug abuse m the workplace,
(2) The grantee's policy of mamtmmng a drug-free workplace,
(3) Any available drug counseling, rehabilitation, and employee assistance programs, and
(4) The penalties that may be imposed upon employees for drug abuse violations occumng in the
workplace,
(c) Makmg it a requirement that each employee to be engaged in the performance of thc grant be gxven a
copy of the statement reqmred by paragraph (a),
(d) Notlfymg the employee ~n the statement required by paragraph (a) that, as a condition of employment
under the grant, the employee will-
(l) Abide by the terms of the statement, and
(2) Notify the employer m writing of his or her eonvlction for a violation of a criminal drug statute
occumng in the workplace no later than five calendar days after such eonvlctiun,
(e) Notifying the agency in writing, wlthm ten calendar days after receiving not,ce under paragraph (d)(2)
from an employee or otherwse reeelwng actual notice of such conviction Employers of convicted
employees must provide notice, including posmon tafle, to every grant officer or other designee on whose
grant acmaty the convicted employee was workmg, unless the Federal agency has designated a central
point for the receipt of such nottees Not~ees shall mclude the ldentaficat~on number(s) of each affected
grant,
(f) Taking one of the following actions, within 30 calendar days of receiving notice under paragraph
(d)(2), with respect to any employee who is so convicted-
(l) Taking appropriate personnel action against such an employee, up to and ~ncludmg termmataon,
consistent with the requirements of the Rehabilitation Act of 1973, as amended, or
(2) Requmng such employee to participate sattsfactonly 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,
(g) Making a good faith effort to continue to mamtain a drug-free workplace through implementation of
paragraphs (a), (b), (c), (d), (e), and (f),
B The grantee may msert in the space provided below the site(s) for the performance of work done in
connecUon with the specific grant
Place o£ Performance (Street address, city, county, state, z~p code)
Denton Municipal Airport
5000 Airport Road
Denton, TX 76207
Check if there are workplaces on file that are not tdentlfied here
Signed-~---~~ Dated ~-~-/~-~
Ted Benavides, City Manager
Typed Name and Title of Sponsor Representanve
A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE
SUBMISSION OF AN APPLICATION TO THE CRIMINAL JUSTICE DIVISION OF THE
OFFICE OF THE GOVERNOR, STATE OF TEXAS, REQUESTING CONTINUED
FUNDING FOR ONE (1) JUVENILE/DOMESTIC VIOLENCE INVESTIGATOR AND
ASSOCIATED TRAINING AND SUPPLIES FOR A FAMILY SERVICES UNIT, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the C~ty of Denton ~s ehg~ble to receive funds from the Criminal Justice
D~vlslon of the Office of the Governor, State of Texas, and desires to increase the effectiveness
of the Denton Police Department's efforts to resolve problems assocmted with juvenile crime
and family violence, and
WHEREAS, m order to receive such funds, ~t ~s necessary for the Counml of the C~ty of
Denton to authorize the submission of an apphcatlon to the Criminal Justice D~wslon of the
Office of the Governor, State of Texas, requesting continued funding for one (1)
juvemle/domestm violence investigator and associated trmmng and supphes to be dedicated to
the lnvest~gataon of cnmanal offenses revolving juvemles and family violence, NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the City of Denton, Texas, certifies that ~t ~s eligible to continue to
receive a,fund~ng allocation from the Criminal Justice D~vls~on of the Office of the Governor,
State of Texas, for one (1) investigator to be used in the investigation of criminal offenses
involving juveniles and family violence and associated tralmng and supphes,
SECTION II. That the City Council authorizes and d~rects the C~ty Manager, or Ins
desagnee,~to represent and act on behalf of the C~ty of Denton ~n applying for and working with
the Criminal Justice Dlms~on of the Office of the Governor, State of Texas, m regard to such
grant application
SECTION III. That the Cluef of Police shall forward a copy of this resolution to the
Criminal Justme D~wsaon of the Office of the Governor, State of Texas
SECTION IV That thas resolutxon shall become effective ~mmedmtely upon ~ts passage
and approval
PASSED AND APPROVED tins the/7--r~~ ~ ' 1998
JA~;I'~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
~; ^~o ~o^~ ~O~M
HERBERT L PROUTY, CITY ATTORNEY
BY~ ~ ~
F \sharedkiep~\LGL\Our Dooumcnts\Resolutions\98\V~olence Investigator Resolution doc
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
UNRESERVED RETAINED EARNINGS OF THE WATER AND WASTEWATER FUNDS
WITH CERTIFICATES OF OBLIGATION, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") ~s a mumclpal corporatlon/polmcal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures m connection with the design,
planmng, and construction of the project described in Exhibit "A" hereto (the "ProJect"), which
Exhibit "A' is attached hereto and made a part of th~s resolution for all purposes, prior to the
~ssuance of obligations to finance the Project "Contracts for Forecasting and Analys~s for the
Comprehensive Plan and for the Transportation and Drainage Impact Fee Analysis," and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consistent with the lawful
objectives of the Issuer and, as such, chooses to declare its mtent~on, ~n accordance w~th the
provisions of Section 1 150-2 Treasury Regulations, to reimburse itself for such payments at
such time as it issues the obhgat~ons to finance the ProJect, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the Issuer reasonably expects to recur debt, as one or more series of
obligations, with an aggregate maximum pnnclpal amount equal to $240,000 for the purpose of
paying the costs for the costs of the ProJect, as set forth in the attached Exhibit "A"
SECTION II That all costs to be reimbursed pursuant hereto will be design and capital
expenchtures No tax-exempt obhgatmns will be ~ssued by the Issuer m furtherance of this
resolution after a date which is later than 18 months after the later of (1) the date the
expenditures are prod, or (2) the date on which the property, w~th respect to which such
expenditures were made, is placed in service
SECTION III That the foregoing notw~thstandlng, no tax-exempt obhgatlon will be
~ssued pursuant to th~s resolution more than three years after the date any expendmtre which is to
be reimbursed is prod
SECTION IV. That flus resolution shall become effeetave ~mmedlately upon its passage
and approval
PASSED AND APPROVED this the/7 ~ day of /~]'?~6~'/4/, 1998
JAC~I/LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 2
EXHIBIT A
Contracts for Forecasting and Analys~s for the Comprehensive Plan and for
the Transportation and Drainage Impact Fee Analys~s Cost ~s 9240,000
RESOLUTION NO Z~/-~)//
A I~SOLUTION OF THE CITY OF DENTON, TEXAS APPROVING TIlE APPLICATION OF
INTERNATIONAl., ISOTOPES, INC FOR PLAN LINE FUNDS FOR CONSTRUCTION OF
WATER LINES FOR A FACILITY NEAR WOODROW LANE, AND DECLARING AN
EFFECTIVE DATE
WHEREAS, on February 19, 1991, the City Council passed Resolutton R91-008,
approwng an infrastructure fmancmg pohcy for the funding of water and sewer plan lmes to
encourage balanced growth and economic development, and
WHEREAS, pursuant to smd resolution, International Isotopes, Inc has applied for funding
of water plan lines, and smd apphcatmn has been approved and recommended by both the Public
Utilities Board and the Planmng & Zomng Commassmn as bmng in substantial compliance with the
terms of smd pohey, and
WHEREAS, the City Council, upon consideration of the application and recommendaUon,
agrees that the application meets the mtent of the pohcy, that it will encourage balanced growth,
and that 1'~ wall further Denton's economic development, and
WHEREAS, ~t appears from the detmled econonuc analysis, attached and fully mcorporated
here~n as an extnblt, that the economic benefits projected from funding the project far exceed the
projected capital investment, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the Application of International Isotopes, Ine for plan line funding of
water hnes for a new manufaetunng faeIbty to be constructed east of Woodrow Lane and north of
Spencer Road m hereby approved to the followang extent
The City of Denton wall construct approximately 1,650 feet of twelveqnch (12") water hne
for an estimated cost of $77,000
SECTION II That fins resolution shall become effective mediately upon its passage and
approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION APPROVING AN INTER_LOCAL AMBULANCE AGREEMENT
BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR AMBULANCE
SERVICES, AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That thc City Cotmcll of the City of Denton hereby approves an Agreement
between tho City of Denton and Denton County for ambulance services, a copy of which is
attached hereto and incorporated by reference hore~n The Mayor, or in his absence the Mayor
Pro Tem, is homby authorized to execute smd Agreement on behalf of the City
SECTION II. That this resolution shall become effective lmmedmtely upon its passage
and approval
JACI~ILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROV1ED AS TO LEGAL FORM
HERBER4T L PROUTY, CITY ATTORNEY
THE STATE OF TEXAS )
)
COUNTY OF DENTON )
INTERLOCAL COOPERATION AGREEMENT
AMBULANCE SERVICE
THIS AGREEMENTmmadeandentered,ntoth~s /~O'~kdayo~ ~/.-~.r-, 1997, by
and between DENTON COUNTY, a poht~cal subdivision of the State of Texas, hereinafter
referred to as "County" and the "CITY OF DENTON", a mummpahty located m Denton County,
Texas, hereinafter referred to as "C~ty"
WHEREAS, County is a duly organized poht~cal subd~vm~on of the State of Texas engaged
m the admmmtrauon of county government and related serwces for the benefit of the cmzens ot
Denton County, and
WHEREAS, City is a mummpahty engaged in the promslon of ambulance serwce and
related sermces for the benefit of the mlazens of Denton County, and
WHEREAS, this contract ~nvolves governmental funcuons that each party individually can
perform, and
WHEREAS, the amount prod by the County for this semce is to be made from current
revenues avmlable to it and that amount fmrly compensates the City for the services and functaons
performed by ~t, and
WHEREAS, City is an owner and operator of certain ambulance vehicles and other
eqmpment demgned for the transportatton of persons who are sick, infirm, or lnlured and has m Its
employ such trained personnel whose duties are related to the use of such vehicles and equipment,
and
WHEREAS, County demres to obtmn emergency medical ~erwces rendered by City, as
more fully hereinafter described for the benefit of the residents of Denton County, Texas, and
WHEREAS, the provlmon of emergency medical services is a governmental funcUon that
serves the public health and weltare and is of mutual concern to the contracUng parUes, and
WHEREAS, County and City mutually desire to be sublect to the prows~ons of V T C A
Government Code, Chapter 791, the Interlocal Cooperation Act, V T C A Health and Safety
Code, Section 774 003 and other applicable statutes and contracts pursuant thereto,
NOW, THEREFORE, County and City for the mutual conslderatton heremalter stated,
agree as follows
I
The effective date of flus agreement shall be the 1st day of October, 1997
II
The term of this agreement shall be for the period of October 1, 1997 to and through
September 30, 1998 Each party may termmate this agreement by glvlng the other party written
noUce of intent to terminate sixty (60) days after receipt of such nouce
III
As used herein, ~he words and phrases hereinafter set forth shall have the meamngs as
follows
A "Emergency" shall mean any circumstance that calls for tmme&ate acUon and m which
the element of ttme m transporting the s~ck, wounded or lnlured for medical treatment is essential to
the health or hfe of a person or persons Whether the aforemenUoned circumstances m fact eJast is
solely up to the dlscretton of the C~ty For dispatch purposes only, "emergency" shall include, but
not be bruited to
I The representaUon by a person requesting ambulance service that an immediate need
exists for such sermce for the purpose of transporting a person from any locauon to a place of
treatment and emergency medical treatment is thereafter administered, and
2 The representation by a person requesting ambulance service that an immediate need
exists for such service for the purpose of transporung a person from any locauon to the closest
medical fac~hty,
B "Rural area" means any area within the boundaries of Denton County, Texas, and
without the corporate limits of all incorporated clues, towns and villages within stud County
C "Urban area" means any area within sa~d County, Wlttun the corporate lurers of an
tncorporated city, town or vtllage
D "Emergency ambulance call" means a response to a request for ambulance serwce by
the personnel of Ctty tn a sttuataon mvolwng an emergency (as such word ~s heremabove defmed)
through the mstrumentahty of an ambulance vehtcle Wtthm the meanmg hereot, a single call
mtght Involve the transportaUon of more than one person at a Ume
IV
A Services to be rendered hereunder by Ctty are ambulance sermces normally rendered by
City under mrcumstances of emergency as heremabove defined to cmzens of County
B THE CITY Ambulance Department shall respond to the requests for ambulance
services made wtthm designated area 2 of County, as set out tn exlubtt "A", attached hereto and
incorporated by reference
C It is recognized that the officers and employees of Ctty have dunes and responslbllmes
wbach include the rendering of ambulance servmes and ~t shall be the respons~b~hty and wtthm the
sole dtscretaon of the officers and employees of Ctty to determine pnontaes in the dlspatchang and
use of such equipment and personnel and the judgment of any such officer or employee as to any
such matter shall be the final determmaUon
V
The County shall designate the County Judge to act on behalf of County and to serve as
"Lltuson Officer" between County and City The County Judge or hts destgnated subsUtute shall
insure the performance of all duues and obhgaUons of County hereto stated, devote sufficient nme
and attentton to the execuUon of said duues on behalf of County m full comphance with the terms
and condmons of ttus agreement and provide supervtston of County's employees, agents,
contractors, sub-contractors and/or laborers, if any, in the furtherance of the purposes, terms and
condmons of thls agreement for the mutual benefit of County and Ctty
VI
City shall ensure the performance of all dutaes and obhgat~ons of City as hereinafter stated,
devote sufficient tune and attention to the execution of smd duues on behalf of City m full
comphance with the terms and conOattons of this agreement and shall provide nnmechate and d~rect
supervision of the City employees, agents, contractors, sub-contractors and/or laborers, if any, m
the furtherance of the purposes, terms and conchlaons of this agreement for the mutual benefit of
City and County
VII
For the services herelnabove stated, County agrees to pay to Provider a fee of $270,140 21
based on a funding formula as follows First, the readiness sum is 7055 per capita based on
populaUon, for a maxanum of $74,783 00 Second, a sum of $370 19 per ambulance run, for a
maximum of $70,336 10 This sum is based upon the number of runs made by Provider m fiscal
year 1997 Third, a fixed sum based on size of covered rural area, for a maxnnum of
$125,021 11 The first and third sums are based upon populauon and mileage figures obtaaned
from the North Central Texas Council of Governments The second sum is based upon the
defuutaon of an ambulance call for purposes of this agreement An ambulance call is defined as
treatment and transport of a pauent to a medical facility Payment shall not be allowed for mstances
m which a patient is not transported Consistent with the reporting procedures described below,
the Provider transporting the patient shall receive payment, regardless of the service delivery area
in which the call originated
Requests for payment shall be subnutted on the standardized ambulance transportation
reporting form approved and provided by the County, accompamed by copies of patient
adm~sslo~reglstrat~on forms as provided by a hospital or methcal facility It shall be the
responsthlhty of the Prowder to fully complete the forms and to provide complete and acctwate
pauent mformataon Requests for payment shall be submitted umely, that is, within five (5) days
of the performance of serwce by the Provider Requests not t~mely submitted shall not be
considered for payment Requests for payment may be submitted by personal dehvery, U S mml,
facsamle,,or computer telephone link to the office of the Denton County F~re Marshal The date of
submission shall be the date the fully documented request as receaved an smd office
By the s~gnature ff ~ts duly anthonzed official hereto, the County assures the Caty that the
County Auahtor has cemfied that sufficaent funds are av,ulable wlttun the current County budget to
make all payments and meet all the f'mancml obhgaUons ol th~s contract and these funds are
available to pay the obhgaUon when due m accordance wath SecUon 111 093(c) of the Local
Government Code V T C A
VIII
County agrees to and accepts full responsthfl~ty for the acts, neghgence and/or ormssaons of
all County's officers, employees and agents
IX
City agrees to and accepts full responsabthty for the acts, neghgence and/or omassaons of all
Caty's officers, employees and agents
X
In the event of any default m any of the covenants hereto contmned, th~s agreement may be
forfeated and terminated at eather party's dlscreuon if such default conUnues for a period of ten (10)
days after nouce to the other party m writing of such default and antenUon to declare this agreement
terminated Unless the default as cured as aforesard, tlus agreement shall terminate as ff that were
the day originally f~xed hereto for the explrauon of the agreement
XI
Thas agreement may be terminated at any tune by rather party g~vmg s~xty (60) days
advance not,ce to the other party In the event of such terra,natron by etther party, Caty shall be
compensated pro rata for all servaces performed to termmauon date, together w~th reambursable
expenses ,then due and as authorized by th~s agreement. In the event of such termmauon, should
Caty be overcompensated on a pro rata basas for all services performed to termmaUon date and/or
be overcompensated reambursable expenses as authorized by th~s agreement, then County shall be
reimbursed pro rata for all such overcompensaUon Acceptance of such reimbursement shall not
consutute a waiver of any clann that may otherwise arise out of fins agreement
XII
The fact that County and C~ty accept certain responslbfllues relating to the rendenng of
ambulance serwces under this agreement as a part of their responslblhty for prov~thng protecuon
for the pubhc health makes n nnperalave that the performance of these v~tal services be recogmzed
as a governmental functton and that the doctnne ot govermuental lmmumty shall be, and it as
hereby, revoked to the extent possible under the law Nmther City nor County waives nor shall be
deemed hereby to wmve any unmumty or defense that would otherwise be avmlable to at against
clatrns arasmg from the exercise of governmental powers and funcuons
XIII
Thas agreement represents the enttre and integrated agreement between City and County and
supersedes all pnor negoUaUons, representaUons and/or agreements, e~ther written or oral Thas
agreement may be amended only by written anstmment sagned by both parues
XIV
This agreement and any of its terms or provlsaons, as well as the rights and dutses of the
parties hereto, shall be governed by the laws of the State of Texas
XV
In the event that any portaon of ttus agreement shall be found to be contrary to law, ~t ~s the
intent of the parues hereto that the remaining port~ons shall rem,un valid and m full force and effect
to the extent possthle
XVI
The undersagned officer and/or agents of the parUes hereto are the properly authorized
officials 0nd have the necessary authonty to execute th~s agreement on behalf of the pames hereto
and each ,party hereby cemfies to the other that any necessary resolutaons extended smd authonty
have been duly passed and are now m full force and effect
COUNTY CITY
DENTON COUNTY, TEXAS CITY OF DENTON
110 WEST HICKORY 215 EAST MCKINNEY
DENTON, TEXAS 76201 DENTON, TEXAS 76201
/ ~f/Mos~ley // T~fle
( fD~,/lton County_~udge ~/
Actn~ on behalf of and by Acting on behalf of and by
the authority of DENTON COUNTY the authority of the Cny of
Commissioners Court of DENTON, TEXAS
Denton County, Texas
Denton County Clerk
APPRO TO FO APPROVED AS TO FORM
Ass Atto ey
'ROVED AS TO CONTENT CONTENT
D~ ~n~u~ F~re marshall F~re Chief
NeXt D,oeument'
A RESOLUTION AMENDING RESOLUTION NO 97-037 BY APPROVING A REVISED
BUDGET FOR TI~ DENTON BLACK CHAMBER OF COMMERCE FOR THE 1997-98
FISCAL YEAR FOR HOTEL OCCUPANCY TAX FUNDS, PURSUANT TO CHAPTER 351
OF THE TEXAS TAX CODE, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Denton Black Chamber of Commerce has hotel occupancy tax funds
from the 1996-97 budget year whmh were not expended during such fiscal year because of the
cancellation of a scheduled Jazz Festival, and
WHEREAS, the Denton Black Chamber of Commerce desires to add the hotel occupancy
tax funds not expended during the 1996-97 fiscal year to the 1997-98 budget approved by the
C~ty Council per Resolutmn No 97-037, and
WHEREAS, the Denton Black Chamber of Commerce has submitted a revised 1997-98
budget whtch would allow the funds which were not expended dunng 1996-97 fiscal year to be
utilized during the 1997-98 fiscal year to expand ~ts program and attract tourists and conventmn
delegates or registrants to Denton, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That, m accordance with TEX TAX CODE ANN §351 101(c), the C~ty
Council of the C~ty of Denton hereby approves a rewsed 1997-98 budget for the Denton Black
Chamber of Commerce for hotel occupancy tax funds, a copy of which ~s attached hereto,
pursuant to the Agreement between the C~ty and the Denton Black Chamber of Commerce
SECTION II That the Denton Black Chamber of Commerce shall make periodic reports
to the City Council at least quarterly hstmg all expenditures made with hotel occupancy tax
funds
SECTION III That th~s resolution shall become effective ~mmedtately upon ~ts passage
and approval
PASSED AND APPROVED thls the 7~-''~ dayof ~pff-// ,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
~oW~^s ~o ~ ~o~
HERBERT L PROUTY, CITY ATTORNEY
PAGE2
Worksheet D
Denton Black Chamber of Commerce /:
Budget of Cash Receipts and Disbursements --
For Year Ending September 30r 1998 r-~,l ~..,..,- -
(Unaudited) _ rll~/-II~j~Y"
Annual
Budget
I
Cash Begmmng
I
Receipts
Occupancy Tax 11000 00
Interest Income 0 00
Total Receipts 11000 00
D~sbursements
Salaries 0 0(3
General Expense 230 00 ;arch all for unexpected expense
D~rectors Re,mb Expense 150 00 relmb for other than m~leage
Payrol Taxes 0 00
Heatlh Insuranc~e 0 00
Llablhty Insurance 0 00
Tralmncj & Travel 230 O0 training of new volunteers and Mileage
Equipment 1500 00 equip needed for event
Office Supphes 75 00 tablets, envelopes ,etc
Telephone 180 00 telephone charges and other media ut~hzat~or
Audit 0 00!
Prmt~n~l 550 00 brochures and flyers
Postage 90 00 as noted I
Adverbslnc. I 460 00 air time and other articles
Convention Promotion 0 O0 I
Tou.sm PromOtion 7500 0(3 )ayment for drawing card
Brochures 0 00
I
Total D~sbursemenl 10965 O0
Excess of Receipts/
(Dmbursements)' 35 00
I
Cash End~n~ 35 O0
PeHy Cash
Cash ~n Bank
Total Cash 35 00
A RESOLUTION ALLOWING LULAC TO BE THE SOLE PARTICIPANT ALLOWED TO
SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY
2, 1998, UPON THE CONDITIONS OF OBTAINING BOOTH, OBTAINING LICENSE AND
PERMIT, PROVIDING GENERAL LIABILITY INSURANCE, AND AGREEING TO
INDEMNIFY THE CITY FOR ANY LIABILITY, AUTHORIZING CITY MANAGER TO
EXECUTE AGREEMENT FOR THE CONDITIONS, AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the City of Denton ("Caty") is the owner of the Civic Center Park and
through the Park and Recreations Department co-sponsors a Cmco De Mayo Celebration at the
C~vic Center Park,
WHEREAS, the consumption of alcohohc beverages as allowed m the Clvm Center Park
pursuant to C~ty of Denton Code, §22-32 (b),
WHEREAS, LULAC has been a major partmapant m th~s event and has used this event as
a fund rinser for ~ts scholarshxp program, and
WHEREAS, LULAC has requested that they be sole partaclpant allowed to sell alcoholic
beverages at thxs year's Cmco De Mayo Celebration on May 2, 1998, and
WHEREAS, the Parks and Recreation Board has recommended that LULAC be the sole
participant allowed to sell alcohohc beverages at the Clnco De Mayo Celebratmn, and
WHEREAS, the City agrees with the recommendataon of the Parks and Recreataon
Board, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That LULAC shall be the sole participant allowed to sell al¢ohohc
beverages at the Canco De Mayo Celebration on May 2, 1998 at the Cavm Center Park upon the
following conditions
1 That they shall be responsible for rental of any booth space
necessary,
2 That they be responsible to obtmn the temporary license and permit
for selling alcoholic beverages approved by appropriate state
agency,
3 That they provide the security necessary for the sale of alcohohc
beverages,
4 That they provide general comprehensive habflaty insurance from a
responsible career, w~th the City as an addatlonal insured, an the
mount of $500,000 00
$ Agrees to lndenmlfy the Clty of Denton agmnst any liability
incident to the selling of al¢ohoh¢ beverages at the Caneo De Mayo
Celebration
~ That the City Manager is authorized to execute the agreement attached as
ExNNt "A" and incorporated herein as if copied word for word, setting out the conditions set
forth abo.ze vathout further action by the City Council
SECTION III. That this resolution shall become effective immediately upon its passage
and approval
~.,,~D.~ .~OWD,h,,,~ 7'¢ d~,o, 4~r~ /
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP VED O LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
F \SHARED~DEPT~LGL\Our Doeuments\R~soluttons\98\Cmco De Mayo Selhng Alcohol doe
CIVIC CENTER AGREEMENT FOR
THE CINCO DE MAYO CELEBRATION
STATE OF TEXAS §
COUNTY OF DENOTN §
,/
Tins Agreement, made tbas ~--/f day of l[~t~r/l , 1998, by and between the
City of Denton, a mumelpal corporation, herema~er ~eferred to as the "CITY" and LULAC a
non profit corporation
WITNESSETH, that in consideration of the covenants and agreements hereto contained,
the parties hereto do mutually agree as follows
ARTICLE I
GENERAL
The City grants to LULAC the exclusive privilege to sell alcohohc beverages, subject to
the exceptions and conchtlons hereinafter set forth, for the Cmco De Mayo celebration on May 2,
1998 to be held at the C~wc Center Park Attached hereto ~s a copy of the resolution passed by
the City Councd of Denton, Texas authorizing flus pnwlege and ~s attached as Exhibit "A" and
is incorporated hereto as ~f copied word for work This privilege does not extend beyond the date
of the Cmco De Mayo celebration set for the year 1998
ARTICLE II
SCOPE OF SERVICES
LULAC in order to exercise the pnwlege to sell alcoholic beverages must perform the
following
A LULAC shall be solely responsible for the rental and payment for any booth space
necessary for the sale of alcoholic beverages at the Cmco De Mayo Celebration
B LULAC shall be solely responsible to obUun any temporary license and permit necessary
for the selhng of alcohohc beverages at the Cmco De Mayo Celebration
C LULAC shall be solely responsible for the obtalmng and paying for any security
ne,cessary for their sale of alcohohc beverages at the Clnco De Mayo Celebration
LULAC's fatlure to do any of the above and to show proper proof of compliance shall
w0ave their right to exercise the pnwlege of selling alcoholic beverages at the Clnco De
Mayo CelebraUon
ARTICLE III
LOCAL RULES AND REGULATION
LLrLAC agrees to ab~de by all municipal, county, state and federal laws, ordinances, roles
and regulations and specffically, wathout lmmat~on, the Denton C~vlc Center Rules and
Regulanons, to obtain all necessary and proper hcenses, permits and authorizations, and to
comply w~th the reqmrements of any duly anthonzed person acting m connection therewith
LULAC ~hall pay all taxes, if any, of every nature and description arising out of or ~n any
manner connected wath the sale of alcohohc beverages
LULAC will exercise reasonable care and due d~hgence in their sale of alcohohc
beverages at the Cmco De Mayo Celebranon
ARTICLE IV
INDEMNITY AGREEMENT
LULAC SHALL indemnify and save and hold harmless the CITY and ~ts officers, agents,
and emplgyees from and agmnst any and all habfl~ty, claims, demands, losses, and expenses,
mcludmglbut not hmlted to, court costs and reasonable attorney fees recurred by the CITY, and
~ncludlng, w~thout hnutat~on, damages for bodily and personal ~njury, death and property
damage, resulting from the neghgent acts or omissions of LULAC or it officers, shareholders,
agents, or employees m the execution, operanon, or performance of t!us Agreement
N0ttung m this Agreement shall be construed to create a llabd~ty to any person who ~s not
a party tq th~s Agreement, and notlung here~n shall wmve any of the part~es' defenses, both at
law or eqmty, to any clmm, cause of action, or htlganon filed by anyone not a party to flus
Agreemeat, including the defense of governmental ~mmumty, which defenses are hereby
expressly,reserved
ARTICLE V
INSURANCE
Daring the performance of the Agreement, LULAC shall mmntmn the following
insurance w~th an insurance company hcensed to do business m the State of Texas by the State
Insurance Comnuss~on or any successor agency that has a rating w~th Best Rate Careers of at
least an A- or above
A Comprehensive General Lmbfi~ty Insurance w~th bodily ~njury hm~ts of not less than
$~00,000 for each occurrence and not less than $500,000 m the aggregate, and with
property damage hmlts of not less that $100,000 for each occurrence and not less than
$100,000 m the aggregate
B LULAC shall furnish insurance certfficates or insurance pohc~es at the CITY'S request to
ewdence such coverages The insurance pohc~es shall name the CITY as an additional
insured on all such pohcles, and shall contmn a prows~on that such ~nsurance shall not be
canceled or modafied without written not,ce to the CITY and LULAC In such event,
Cmco De Mayo CelebraO. on Agreement- Page 2
LULAC shall, prior to the effective date of the change or cancellation, serve substitute
poheles furmsbang the same coverage
ARTICLE VI
NOTICES
All notices, commnnlcations, and reports required or permitted under this Agreement
shall be personally delivered or marled to the respective parties by depositing same m the Umted
States mail to the address shown below, certified mall, return receipt requested, unless otherwise
specffied hereto Mmled notices shallbe deemed commumcated as of three (3) days' ma~hng
To LULAC To CITY
LULAC CITY OF DENTON
~u..~e.. ~.-e~t~/t Ted Benevldes, City Manager
~t ~,t,~ qg/ 215 E McKlnney
~ ? ~ ~ll~ Zap_ Denton, Texas 76201
All notices shall be deemed effective upon receipt by the party to whom such notice is
given, or within three (3) days' mmhng
ENTIRE AGREEMENT
Tbas Agreement, consmtlng of ~' pages and / exhibits, constitutes the
complete and final expression of the agreement of the parties, and is intended as a complete and
exclusivelstatement of the terms of their agreements, and supersedes all prior contemporaneous
offers, promises, representations, negotiations, discussions, communications, and agreements
which may have been made m connection with the subject matter hereof
SEVERABILITY
If, any provision of this Agreement is found or deemed by a court of competent
jurlsdlctl0n to be invalid or unenfomeable, it shall be considered severable from the remainder of
this Agreement and shall not cause the remainder to be invalid or unenfomeable In such event,
the parties shall reform this Agreement to replace such stricken provision with a vahd and
enforceable provmon which comes as close as possible to expressing the intention of the stricken
provision,
ARTICLE IX
DISCRIMINATION PROHIBITED
In perfomung the services required hereunder, LULAC shall not discriminate against any
person on the basis of race, color, religion, sex, national origin or ancestry, age, or physmal
handicap
Cmco De Mayo Celebration Agreement - Page 3
ARTICLE X
PERSONNEL
A LULAC represents that tt has or will secure, at its own expense, all personnel required to
perform all the services required under tins Agreement Such personnel shall not be
employees or officers of, or have any contractual relattons wtth the CITY
ARTICLE XI
ASSIGNABILITY
LULAC shall not asstgn any interest tn thts Agreement, and shall not transfer any interest
tn tins Agreement (whether by assignment, novation, or otherwtse) wtthout the prior written
consent of the CITY
ARTICLE XII
MODIFICATION
NO wasver or modfficatton of thxs Agreement or of any covenant, conchtton, or hmttatton
heretn conttuned shall be vahd unless mwnttng and duly executed by the party to be charged
therewtth, and no evtdence of any watver or modfficatton shall be offered or recetved tn evtdence
tn any proceethng arising between the parttes hereto out of or affecting thts Agreement, or the
rights or obhgattons of the parttes hereunder, and unless such wmver or modfficatton ts in
wntmg and duly executed, and the parttes further agree that the provisions of ttns sectton will not
be wtuved unless as set forth hereto
ARTICLE XIII
MISCELLANEOUS
A The following exinints are attached to and made a part ofthts Agreement (list exinbtts)
Exinint "A" Resolution No ~q~-Ott~
B Venue of any stat or cause of aetton under this Agreement shall lie exclustvely in Denton
County, Texas Tlus Agreement shall be construed tn accordance wtth the laws of the
State of Texas
C The captions of tins Agreement are for mformattonal purposes only, and shall not tn any
way affect the substanttve terms or eondtttons of tins Agreement
IN WITNESS HEREOF, the City of Denton, Texas has caused tins Agreement to be
executed by tts duly anthonzed City Manager, and L~U.~C has executed thts Agreement through
tts duly anthonzed understgned officer on tins the 7 ~ day of /~d?f/~ ,1998
Cmco De Mayo Celebration Agreement - Page 4
CITY OF DENTON, TEXAS
ED BENAVIDES, CITY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
LULAC
Name
T~tle
WITNESS
BY
F kshared\dept~LOL\Our Documents\Contracts\98\C~nco Do Mayo Contract doc
Cm¢o De Mayo Celebration Agreement - Page 5
A RESOLUTION ALLOWING LULAC TO BE THE SOLE PARTICIPANT ALLOWED TO
SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY
2, 1998, UPON THE CONDITIONS OF OBTAINING BOOTH, OBTAINING LICENSE AND
PERMIT, PROVIDING GENERAL LIABILITY INSURANCE, AND AGREEING TO
INDEMNIFY THE CITY FOR ANY LIABILITY, AUTHORIZING CITY MANAGER TO
EXECUTE AGREEMENT FOR THE CONDITIONS, AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the City of Denton ("City") ~s the owner of the Civic Center Park and
through the Park and Recreations Department co-sponsors a Cmco De Mayo Celebration at the
Civic Center Park,
WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center Park
pursuant to City of Denton Code, §22-32 Co),
WHEREAS, LULAC has been a major participant ~n flus event and has used flus event as
a fund raiser for its scholarslup program, and
WHEREAS, LULAC has requested that they be sole participant allowed to sell alcohohc
beverages at this year's Clnco De Mayo Celebration on May 2, 1998, and
WHEREAS, the Parks end Recreation Board has recommended that LULAC be the sole
participant allowed to sell alcoholic beverages at the Cmco De Mayo Celebration, and
WHEREAS, the City agrees with the recommendation of the Parks and Recreation
Board, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That LULAC shall be the sole participant allowed to sell alcoholic
beverages at the Cmco De Mayo Celebration on May 2, 1998 at the Civic Center Park upon thc
following conthtaons
1 That they shall be responsible for rental of any booth space
necessary,
2 That they be responsible to obtmn the temporary license and permit
for selling alcoholic beverages approved by appropriate state
agency,
3 That they provide the secunty necessary for the sale of alcoholic
beverages,
4 That they provide general comprehensive liability insurance from a
responsible career, with the City as an additional insured, in the
amount of $500,000 O0
5 Agrees to lndenmify the City of Denton against any liability
incident to the selhng of alcohohc beverages at the Onto De Mayo
Celebration
SECTION II. That the City Manager ~s authorized to execute the agreement attached as
Exhxb~t "A" and incorporated herem as ~f copied word for word, setting out the conditions set
forth above w~thout further action by the City Council
SECTION III. That this resolution shall become effective ~mmed~ately upon ~ts passage
and approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
F \SHARED~DEPT~LOL\Our Documenta~Resolutmns\98\Cmco De Mayo Selhns Alcohol doc
RESOLUTION NO
A RESOLUTION OF THE CITY OF DENTON, TEXAS ADOPTING CITY POLICIES FOR
EMPLOYEE DEVELOPMENT THROUGH DEVELOPMENTAL TRACKING FOR CITY
EMPLOYEES, AND DECLARING AN EFFECTIVE DATE
WHEREAS, The City of Denton, Texas desires to make every effort to fill job vacancies
by in-house advancement and encourage employee development, and
WHEREAS, developmental trackmg will create opportunities for city employees who are
within 18 months of aequlnng the knowledge, skills, abilities, education and/or experience
necessary to meet the mmlmum quahfieatlons of vacant authorized positions in cases where the
hlnng authority desires to promote from within or where recruitment efforts initially fail to
produce a quahfied candidate, and
WHEREAS, the Director of the Human Resources Department for the City of Denton has
presented a pohcy regarchng employee rules and regulanons concerning employee development
through developmental tracking of employees, and
WHEREAS, the City council, desires to adopt such policy as an official policy regarding
employment with the City, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That Policy numbered 104 07 "Developmental Tracking" of the Personnel
Policies and Procedures Manuel of the City of Denton, attached hereto and incorporated by
reference ,herem, is hereby adopted and approved as official policy of the City of Denton, Texas
SECTION II. That the foregoing policy is attached hereto and made a part hereof and
shall be filed in the official records with the City Secretary
SECTION III. That this resolution shall become effective immediately upon its passage
and approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
\\CH LGL\VOLl~shared\dept\LGL\Our Documents\Resolutlons~developmental tracking pohcy doc
CITY 'OF DENTON PAOE1 OF2
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
SECTION HUMAN RESOURCES REFERENCE NUMBER
104 07
SUBJECT EMPLOYEE DEVELOPMENT INITIAL EFFECTIVE DATE
02/01/98
TITLE DEVELOPMENTAL TRACKING LAST REVISION DATE
POLICY STATEMENT'
It is the policy of the City of Denton to provide employee development opportunities by placing
indlvtduals In authorized, vacant positions in cases where the hmng authority desires to promote from
within or where recruitment efforts initially fail to produce a qualified candidate
This provision shall not be construed as creating a contract of employment or as guaranteeing
employment for any specific duration or as estabhsh~ng a "just cause" disciplinary or termination
standard.
ADMINISTRATIVE PROCEDURES:
I To be considered for employment under a developmental tracking plan, an individual must be
w~th~n 18 months of acquiring the knowledge, skills, abilities, education and/or experience
necessary to meet the minimum quahficatlons of the position
II Hiring under the conditions of a developmental tracking plan ts initiated by the hiring authority,
with prior approval from the department director, by submitting a request form to the Human
Resources Department
III Upon plan approval, a developmental tracking agreement must be completed by the hmng
authority and the employee prior to hire date
IV The developmental tracking agreement is an agreement between the hiring authority and the
employee which includes conditions the employee must meet to successfully complete the
developmental tracking plan The agreement condmons include but are not hmited to the
following
A Developmentaltracklng agreements must not exceed 18 months
B Developmental tracking agreements must include a plan completion date and specific dates
for progress reviews
C Developmental tracking agreements must include specific knowledge, skills, abfimes,
education and/or experience requirements to be completed by the plan's ending date
HR/POLICY/104 07 3
PAGE 2 OF 2
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued)
TITLE DEVELOPMENTAL TRACKING REFERENCE NUMBER
104 07
V An,employee hired under the conditions of a developmental tracking plan will be placed in the
pay rate below the mlmmum salary for the position filled and will not be eligible for
performance increases An employee's beglnmng salary may be adjusted based on the
employee's salary history The employee will receive a salary increase, and the employee will
be eligible for performance increases upon successful plan completion
VI Should the employee fall to complete the developmental tracking plan by the established
completion date, the tracking agreement and/or employment stares will be terminated At this
tune, the employee must seek other employment options including transfers, demotions and other
internal/external job opportumties
VII Any extension of the level of the developmental tracking agreement must be approved by the
City Manager and the Director of Human Resources prior to the completion date An extension
may be granted up to six (6) months for an employee who is unable to complete his/her
agreement within the established time due to unforeseeable or umque c~rcumstances Extension
considerations will be approved or demed on a case by case basis
HR/POLICY/104 07 4
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
UNRESERVED FUND BALANCE OF THE GENERAL FUND WITH GENERAL
OBLIGATION BONDS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") ~s a municipal corporat~on/poht~cal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures in connection w~th the design,
planmng, ,and construction of the project described xn Exhibit "A" hereto (the "ProJect"), which
Exhibit "A" is attached hereto and made a part of thxs resolution for all purposes, prior to the
issuance of obhgat~ons to finance the ProJect "Pecan Creek Drmnage and Linden Street
Drainage," and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expendaturas will be appropriate and consistent with the lawful
objectives of the Issuer and, as such, chooses to declare its intention, m accordance w~th the
prowslons of Section 1 150-2 Treasury Regulations, to reimburse itself for such payments at
such t~me as tt issues the obhgattons to finance the ProJect, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Issuer reasonably expects to incur debt, as one or more series of
obhgatxons, w~th an aggregate maximum pnnc~pal mount equal to $110,000 for the purpose of
paying the costs for the costs of the ProJect, as set forth in the attached Exhibit "A"
SECTION II. That all costs to be reimbursed pursuant hereto will be desxgn and capital
expenditures No tax-exempt obhgatxons will be xssued by the Issuer in furtherance of this
resolution after a date whxch xs later than 18 months after the later of (1) the date the
expenditures are prod, or (2) the date on which the property, with respect to wtuch such
expenditures were made, is placed m service
SECTION III. That the foregomg notwithstanding, no tax-exempt obhgatlon will be
issued pursuant to th~s resolution more than three years after the date any expenditure whmh is to
be reimbursed is pard
SECTION IV. That th~s resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the /Tr'~'-~ day of . ~7ff~]/'f ff ,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
~/~V~/s~o~o~o~
HERBERT L PROUTY, CITY ATTORNEY
Page 2
EXHIBIT A
Project Cost
L~nden Street Drainage Project ~ 90,000
Pecan Creek Drainage Project ~ 20,000
Total $ 110,000
A RESOLUTION APPROVING AN AGREEMENT AND RESOLUTION OF THE CITY OF
DENTON INDUSTRIAL DEVELOPMENT AUTHORITY WITH RESPECT TO THE ISSU-
ANCE OF BONDS FOR MAYDAY MANUFACTURING COMPANY, INC, AND PROVID-
ING AN EFFECTIVE DATE
WHEREAS, the City of Denton Industrial Development Authority (the "Issuer") was
created under the auspices of the City of Denton (the "Unit"), and
WHEREAS, the Issuer is authorized by the Development Corporation Act of 1979, as
amended (the "Act"), to issue bonds on behalf of the Unit for the purpose of financing all or part
of the costs of a "project", as defined m the Act, and to loan the proceeds thereof to finance all or
part of the costs thereof, and
WHEREAS, the Issuer, by resolution (the "Bond Resolution") adopted on April 16, 1998,
has authonzed the issuance and sale of its Revenue Bonds (Mayday Manufactunng Company,
Inc ProJect) Senes 1998 (the "Bonds") m the maximum aggregate pnnclpal amount of
$2,500,000 and by the Bond Resolution has also authorized a Loan Agreement with Mayday
Manufactunng Company, Inc (the "Company") wherein the Issuer agrees to issue and sell the
Bonds to ,provide funds to finance a certmn manufactunng project of the Company (the "Proj-
ect'') located within the Unit (the "Loan Agreement"), and
WHEREAS, the Act reqmres that the governing body of the Unit approve, by wntten
resolution, any agreement to issue bonds approved by the Issuer, and
W~I-IEREAS, the City Council of the City of Denton, Texas has reviewed the proceedings
relative to the issuance of the Bonds, and, by adoption of this resolution, intends to approve the
Bond Resolution, the issuance of the Bonds, the plan of financing approved by the Bond Resolu-
tion, and to make the findings required by the Act to approve the ProJect, and
WHEREAS, it is deemed necessary and advisable that this resolution be adopted, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Bond Resolution adopted by the Issuer authorizing the execution
of the Loan Agreement and authorizing the sale of the Bonds, in substantially the form and sub-
stance attached to this resolution and made a part hereof for all purposes, is hereby specifically
approved~ and the Bonds may be issued as provided for therem
SECTION II That the Loan Agreement, in substantially the form and substance as at-
tached to ~the Bond Resolution and made a part hereof and thereof for all purposes, is hereby ap-
proved, and the Bonds in the maximum pnnmpal amount of $2,500,000 may be issued pursuant
thereto for the purpose of financing the cost of acqumng, constructing, or equipping or causing
to be acquired constructed or eqmpped the ProJect as defined and described therein, which Proj-
ect was and ~s in comphance w~th the Act and the rules promulgated thereunder by the Texas
Department of Economic Development and said Project ~s hereby approved
SECTION III. That the C~ty Council approves the lssuarlce of the aforesaid Bonds ~n the
maximum aggregate amount of $2,500,000 for the Company, and further approves the Project as
described m the aforesaid Loan Agreement, and such approvals shall be solely for the purposes
of Section 147(f) of the Internal Revenue Code of 1986, as amended, and the Umt shall have no
habflmes for the payment of the Bonds, nor shall any of ~ts assets be pledged to the payment of
the Bonds, nor shall the Bonds constitute a debt or general obhgat~on of the Unit
SECTION IV. That th~s resolutaon shall become effectwe ~mmethately upon ~ts passage
and approval
PASSED AND APPROVED thls the ~/? day of-- --.,~./'2/"/'/ , 1998
JAC~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 2
RESOLUTION
AUTHORIZING THE ISSUANCE OF
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
REVENUE BONDS (MAYDAY MANUFACTURING COMPANY, INC PROJECT) SERIES 1998
AND THE EXECUTION OF
A LOAN AGREEMENT
BRIZ 04/08/98
TABLE OF CONTENTS
(The Table of Contents ~s not a part of the Resolution but ~s for convenience of reference only)
PAGE
T~tle
Recitals
Resolution
SECTION 1 DESIGNATION, AMOUNT, AND PURPOSE OF THE BONDS
SECTION 2 DATE, DENOMINATION, NUMBERS, AND MATURITIES OF
THE BONDS
SECTION 3 INTEREST ON THE BONDS
SECTION 4 GENERAL CHARACTERISTICS
(a) In General
Co) Registration Books
(c) Payment of Rogistered Owner
(d) Notation of Prepayment
SECTION 5 FORMS OF BOND
SECTION 6 PLEDGE
SECTION 7 DEBT SERVICE FUND
(a) Estabhshraent of Debt Service Fund
(b) Accmed Interest
(c) Installment Loan Payments
(d) Redemption
(e) Payments from Debt Service Fund
. - (f) Investment of Fund
(g) Immediately Available Funds
SECTION 8 THE USER'S PAYMENTS
(a) Unconahtaonal Obligation
(b) Prepayments
SECTION 9 ADDITIONAL BONDS
SECTION 10 SPECIAL COVENANTS
(a) Installment Loan Payments Pledged to Bond Only
(b) Non-Encumbrance
(c) Performance by Issuer
(d) Certain Modifications Prohibited
SECTION 11 BOND IS A SPECIAL OBLIGATION
SECTION 12 AMENDMENTS
(a) W~thout Consent of Bondholder
(b) W~th Consent of Bondholder
(e) Effect of Consents
(d) Notation On or Exchange of Bonds
(e) User Consent Reqmred
(f) NoUce to Bondholder
SECTION 13 AMENDMENT OF AGREEMENT
(a) W~thout Consent of Bondholder
(b) With Consent of Bondholder
SECTION 14 ESTABLISHMENT OF CONSTRUCTION FUND
(a) Payments into Constmctmn Fund, Disbursements
(b) Investment of Money m Construction Fund
(e) Rehance by Paying Agent
SECTION 15 SURPLUS CONSTRUCTION FUNDS
(a) Dlspos~taon of Surplus Funds
(b) D~sposmon of Constructaon Fund upon Acceleratmn
and Redemptmn
SECTION 16 DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
BONDS
. - (a) Replacement Bond
(b) AppheaUon for Substitute Bond
(c) No Dtfault Occurred
(d) Charge for Issmng Substitute Bond
(e) Authonty for Issuing Substitute Bonds
SECTION 17 REBATE FUND
SECTION 18 SALE OF THE BONDS
c xw~Gxw~ Ol?X~nd~ -n-
SECTION 19 EVENTS OF DEFAULT
(a) Events of Default
(b) Declaration of Pnnc~pal and Interest Due
(c) Apphcat~on of Moneys
SECTION 20 LOAN AGREEMENT
SECTION 21 THE PROJECT
SECTION 22 FINDINGS
SECTION 23 TAX-EXEMPT STATUS OF BONDS
RESOLUTION AUTHORIZING THE ISSUANCE OF
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
REVENUE BONDS (MAYDAY MANUFACTURING COMPANY, INC PROJECT)
SERIES 1998, AND THE EXECUTION OF A LOAN AGREEMENT
THE STATE OF TEXAS
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
WHEREAS, the City of Danton Indusmal Development Authority (the "Issuer") ~s authorized under thc
Devel0pmant Corporatmn Act of 1979, as amended, Am¢le 5190 6 V A T C S (the "Act"), to issue its revenue
bonds t'or the purpose of prowdmg financing for a "project" located watlun the Issuer as thereto defined, and
WHEREAS, Mayday Manufacturing Company, Inc, a Texas corporation (the "Company"), proposes
to finance the cost ofecqulrmg equipment for ~ts manufacturing fecthty located m the C:ty of Denton, Texas (the
"ProjeCt") and to £mance the cost of the Project through the ~ssuance by the Issuer of its heremafinr defined
Bends, and
WHEREAS, the Issuer has duly entered rote a Loan Agreement (the "Agreement") wath the Company
specifying the terms and conchtaoos of such financing, the loaning of the proceeds of ~ts Revenue Bonds (Mayday
Manufacturing Company, Inc Projec0 Sones 1998 (the "Bonds") to the Company for such purpose and the
repayment by the Company of such loan, and
WHEREAS, It has been deterrmued that the amount necessary to finance the Project wall requtre the
~ssuance, sale and delivery of the Issuer's Bonds m the aggregate pnnc~pal amount of $2,500,000 as hereinafter
provided
WHEREAS, as provided tn the Agreement, the User will agree and acknowledge that the Bonds, when
~ssued, sold, and delivered as prowded in flus Bond Resolutton, wall be ~ssued tn accordance and compliance wath
the Agreement, and that, upon the issuance, sale, and delivery of the Bonds, the User wall be uncon&tionally
obhgated to the Issuer and Brown Brothers Trust Company (the "Paying Agent") to make or pay, or cause to be
made or paid, wathout sot-off, recoupmant, or countetclaan, to the Paying Agent thc "Installment Loan Payments"
re, qua'ed by the Agreement and by flus Bond Resolution m amounts sufficient to pay the pnnc~pal of, redemption
prenuum, if any, and interest on the Bonds, when due, agreed hqmdated damages, tf any, all fees and expenses
of the paying Agent and Re~slxar for tho Bonds, and all other amounts reqmred to be paid by the Agreement and
tlus BOnd Resolution, all as horemai~er set forth, and
WHEREAS, for p~ of flus Bond Rasolut~on, the defuutions of terms m the Agreement are hereby
adopted, and the terms glvan hereto shall have the same meanings as such terms are g~ven m said Agreement
unless a d~emnt meaning is g~von horem
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF CITY OF DENTON
INDUSTRIAL DEVELOPMENT AUTHORITY THAT
Section 1 DESIGNATION, AMOUNT, AND PURPOSE OF THE BONDS The Issuer's bonds
designated and to be known as CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
REVENUE BONDS (MAYDAY MANUFACTURING COMPANY, INC PROJECT) SERIES 1998A and
SERIES 1998B (the "Bonds") are hereby authorized to be issued m the aggregate principal amount of $750,000
and $1,,750,000, respectively, on behalf of the City of Denton, Texas TO PAY PART OF THE COST OF
ACQUIRING, CONSTRUCTING AND EQUIPPING OR CAUSING TO BE ACQUIRED, CONSTRUCTED
OR EQUIPPED A MANUFACTURING FACILITY IN THE CITY OF DENTON, TEXAS, FOR MAYDAY
MANI~IFACTURING COMPANY, INC (THE "USER") FOR THE SPECIFIC PURPOSE OF
MANUFACTURING CLOSE TOLERANCE STRUCTURAL MACHINING COMPONENTS FOR USE IN
THE AEROSPACE INDUSTRY
Section 2 DATE, DENOMINATION, NUMBERS, AND MATURITIES OF THE BONDS The
Bonds mmally authorized hereby shall be dated May 1, 1998, shall be issued and delivered ]n the form of two
fully regqstered bonds, vnthout coupons, payable m installments to the registered owners thereof, or regmtered
assignsl all m the manner hereinafter provided, vath the Bonds to be numbered AR- 1 and BR- 1, respectively, in
the denominations and pnncipal amounts of $750,000 and $1,750,000, respectively, mmally payable to Brown
Brothers Harnman & Co, vnth the pnnclpal of said Bonds to be payable on the dates and in the amounts as set
forth ,n the FORMS OF BOND m Section 5
Section 3 INTEREST ON THE BONDS The Bonds ]mtially anthonzed hereby shall bear interest on
the unpmd balance of the pnnc~pal amount thereof from the date ofdehvery to the uutial purchaser thereof(which
date shall be mchcated by the Paying Agent m the Delivery Certificate appeermg on each Bond) to the scheduled
due date, or date of prepayment or redemption prior to the scheduled due date, of the pnncipal installments of
the Bonds, at the rates set forth m the FORMS OF BOND set forth m Section 5 The interest shall be calculated
and payable on the dates and m the manner provided m the FORMS OF BOND set forth m Sect]on 5
Section 4 GENERAL CHARACTERISTICS (a) In Oener~l The Bonds ~mtially authorized hereby
shall be issued, shall be payable, may or shall be prepaid or redeemed prior to the scheduled principal installment
payment d~t_~, may be tromferred and assigned, shall have the characteristics, and shall be signed and executed
(and tho Bonds shall be sealed), all as provided, and m the manner intimated, m the FORMS OF BOND set forth
m Section 5 After tha Bonds have been authonzed to be issued by the Board of D~rectors of the Issuer, and prior
to the dehvery of the Bonds, the Comptroller of Pubhc Accounts shall execute the Comptroller's Regmtration
Certificate as provided m Section 5 In ad&t~on, on the date of dal]very of the Bond to the lmtial purchaser
thereof,,tha Paymg Agent shall fill in the date of dahv~ry of the Bonds m the Delivery Certificate eppearmg on
each Bond as provided m Section 5
(b) Reomtrauon Books The Issuer shall keep or cause to be kept at the principal office of tho
Paying Agent books for the regmtration and transfer of the Bond (the "Bond Regmtratlon Books") and the Issuer
hereby appoints the Paying Agent as Rs registrar and transfer agent (the "Registrar") to keep such books and
make such re§mtraUons and transfers under such reasonable regnlations as the Issuer or the Regmtrar may
prescnbe, and the Regmtrar will re~ster or transfer as hereto provided, the Bonds upon presentation thereof at
such office The User and each Bondholder shall have the right to respect such Bond Registration Books during
the normal busmnss hours ofund afar reasonable not~ec to the Paying Agent
R~gl,~ation of any Bond may be transferred (m whole, not m part) only on the Bond l~g~stration Books
upon surrender thereof by the re~stered owner m person or by his duly anthonzed attomes', by proper written
instrument of transfer, m the form and voth gueran~ of signatures satisfactory to the Registrar, duly executed
by such owner or attorney Upon such surrender for transfer of registration, the Registrar shall make notetion
of such trm~fer on such Bond m the assignment section eppeanng thereon and m the Bond Regmtration Books
Such transfers of regmtrat~on shall be made w~thout charge to the owner of such Bond, but any taxes or other
governmental charges requn~l to be paid w~th respect to the same shall be paid by the Bondholder requesUng
such transfer of re~stration, as a cond~uon precedent to the exemme of such pnvilege
The Paying Agent shall not be required to make transfers of any Bond wthin ten (10) days prior to an
~nterest payment date or redemption date or subsequent to the date of mailing o£notice of redemption of such
Bond or a portion thereof, anything m such Bond to the contrmy notvathstandmg
(c) Payment to Re~l~tg-red Owner The person m whose n~me any Bond shall be registered on the
Bond Reg~stratton Books may be desmed and treated as the absolute owner thereof for all purposes of flus Bond
Resolution whether or not such Bond shall be overdue, and the Issuer, the Paying Agent, the User, and shall not
be affected by any notice to the contrary, and payment of, or on account of, the pnncipal of, prenuura, if any,
agreed ,hquldated damages, ff any, and interest on any such Bond shall be made only to such registered owner
therenf, but such re~stratmn may be changed as provided herem All such payments shall be valid and effectual
to satisfy and thscharge the hablhty upon such Bond to the extent of the sum or sums so paid
(d) Notation of Preoavment The Issuer hereby appoints Brown Brothers Trust Company, New
York, New York, as the Paying Agent for the Bond Upon the prepayment or pamal redemption of any Bond,
the Registrar and Paying Agent, shall note m the Prepayment Record appearing on such Bond the amount of such
prepayment or redemptmn, the date said payment was made and the remaining unpaid principal balance of smd
Bond and shall then have smd enlry signed by an authorized official of the Paying Agent The Paying Agent shall
also record such mformat~on m the Bond Regastration Books, and the Paying Agent shall also record m the Bond
Registration Books all payments of pnnclpal installments on the Bond when made on their respective due dates
Section 5 FORMS OF BOND The forms of each Bond, together wath the forms of the various
cemficates and forms to appear on each Bond, shall be, respecuvely, substantially as follows, w~th necessary and
appropriate vanatluns, ormsslons, and msemons as penmtted or reqtured by flus Bond Resolution
FORM OF SERIES 199gA BOND
NO AR-1 $750,000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
REVENUE BOND
(MAYDAY MANUFACTURHqG COMPANY, INC PROJECT)
SERIES 1998A
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY (the "Issuer"), being a nonstook,
nonprofit development corporation orgamzed and existing under the laws of the State of Texas, mchdmg
parucularb/.hhe Development Corporat~un Act of 1979, as amended, Amele 5190 6 V A T C S (the "Act"), and
acting on behalf of the City of Denton, Texas, hereby pronuses to pay to
or ~ts re~sternd ~ssigns, the aggregate principal amount of
SEVEN HUNDRED FIFTY THOUSAND DOLLARS
in installments on the dates and in the amounts hereinafter described, and to pay interest thereon, from the date
of dehvery hereof (wluch d~!e appears m the Delivery Certificate endorsed on flus Bond), on the balance of said
principal amount from tune to time remaining unpaid, at a rate per annum established m accordance vath the
terms offlus Bond set forth below (provided that such pnncipal and interest are payable solely from the sources
and m tho manner beremafter described, and solely as authorized and provided m the Act)
Defimtlons
The following terms are de£med as follows
"Agreement" means the Loan Agreement dated as of May 1, 1998 between the Issuer and the User
"Applicable Percentage" means percent ( %), prowded that the Applicable
Percentage may be adjusted by the Owner (1) to offset any decrease in net interest income allocable to this Bond
due to a change m the pomon ofits interest expense allocable to this Bond that ~s disallowed as a deduction under
Section 165 of the Code or (u) to reflect changes m federal marginal tax rates which adversely affect the taxable
equivalent y~eld on flus Bond to the Owner
"Base Rate" means a fluctuating rate per annum as shall be m effect fi-om time to tune, which rate per
annum shall be equal to the rate of interest established by Brown Brothers Hamman & Co m New York, New
York, from tune to tune, as its base rate Each change m the Base Rate shall be effective wthout notice to the
User, automatically as of the opening of business or the date of such change m the Base Rate
"Bondholders' D~rection" means a written order of the Owner threctmg the Paying Agent to take some
specific action
"Bond Counsel" ~ a firm of nationally recograzed attorneys experienced m thc £mancmg of feclhtics
through the issuance of tax-exempt bonds under Section 103 of the Code and approved by the Issuer, the
Company and the Paying Agent
"Code'* means the Internal Revenue Code of I956, as amended
'Determination of Taxab~hty' means any Notification of Taxability, provided, that, a Detarmmation of
Taxahihty shall not be deemed to have occurred until any contest thereof has been f'mally determined unfavorably
to the contentions of the User, or is abandoned, m accordance with the following provisions
(a) With respect to any Notification of Taxability arising because of an event descnbed m clause
(a) oftbe defimtlon of that teml contained m this Bond, the User, vathm 20 days after the date of the Notification
of Taxablhty, may contest or appeal such event by filing and thhgently pursuing to conclusion any remechas in
any.luchclal or adnumstrahve forum perrmtted by law for challenging the basis for such notlficataon but if no such
forum iS lawfully avadable, then no contest eyasts under flus paragraph (a), and at the close of such 20 day period,
a Deternunataon of Taxability shall be deemed to have occurred with respect to flus Bond
Co) With respect to any Notification of Taxability described m clause (b) of the defuntlon of that
term contalpod m this Bond, the User, vaflun 20 days aftar the date of the Notification of Taxability, may contest
the opuUon of Bond Counsel by providing to the Paying Agent and the Owner an opunon of counsel selected by
the User reaclung contrary conclusions except if a contrary opunon is not funushod within such period, or if a
contrary opuuon is furmshod but rejected by the Owner, then such contest shall be deemed conclusively to be
terminated on the date of such failure or rejection, and a Determination of Taxability shall be deemed to have
occurred on that date with respect to flus Bond
(c) With respect to any Notification of Taxability descnbed m clause (c) of the defuntion of that
term contained m flus Bond, the Owner or Former Owner w~th respect to which such notification was g~ven shall
contest or appeal the basis for such not~fication If, within 20 days after the date of the NotlfiCaUon of Taxability,
the User
0) requests thc Owner or Former Owner to contest or appeal thc basis for such notification
and speolfies the steps and procedures requested to be taken, each of which shall be reasonable and
lawfully available,
(~) pmwdes mdemmflcat~on to the Owner or Former Owner ~n a manner sat~sfectory to the
Owner or Former Owner for any habfl~ty, costs or losses (other than taxes) that may be ~ncurred In
connection vnth such contest or appeal, including, ~nthout hm~tat~on, reasonable attomay's and
accountant's fees and the amount of any interest or penalty that may ultmaately be payable as the result
of such contest, together vath security for such mdemmficatlon sat~sfectory to the Owner or Former
Owner,
(IU) fum]sbes an opinion of ~ndependent counsel, satlsfectory to the Owner or Former
Owner, to the effect that a meritorious bas~s for such contest or appeal erasts,
prowded that the Owner or Former Owner, w~tlun the sole (hscretmn of the User, shall forego any and all
adnumslrat~ve appeals, proceedings, bearings and conferences wth the Internal Revenue Service auchtmg agent
and e~ther pay the tax cla~med and sue for a refund m the appropriate Umted States District Cou~'t of the Umted
States Court of Clamas, or contest the Not~ficataon of Taxability m the Tax Court of the Umted States, and ff a
contest ~s filed m the appropriate Umted States D~smet Court, Tax Court or the Umted States Court of Clamas
(or ~fthe den~s~on of any such court has been appealed to a bagher court) and an unfavorable decision of such
court is rendered, then the Owner or Former Owner agrees to appeal such unfavorable decision only ~f, vatlun
20 days after the date ofnolaee to the User of such decision, the User shall request that such decision be appealed,
provided further that, so long as the mdemmty and senunty reqvared m paragraph (c)0~) above shall continue m
effect, the Owner or Former Owner will not terminate or settle such contest, appeal or further appeal of an
unfavorable dec,stun wathout the prior approval of the User Upon the final conelusmn of any such contest or
appeal, or upon the abandonment thereof by the User, a Determination of Taxabthty shall be deemed to have
occurred wtth respect to tins Bond
"Eurocurrency L~abthues" shall have the meaning assigned to that term m Regulation D (or any successor
thereto) of the Board of Governors of the Federal Reserve System, as m effect from tune to tmae
"Eurodollar Rate Reserve Percentage" for any LIBOR Interest Period shall mean the reserve percentage
apphcable during such LIBOR Interest Period (or ~f more than one such percentage shall be so apphcable, the
daffy average of such percentages for those days m such LIBOR Interest Period during which any such percentage
shall be so applicable) under regulauons ~ssued from tune to Ume by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maramnm reserve requu'emant (including, vnthout
hnntat~on, any emergency, supplemental, or other marginal reserve reqturemant) for member banks of the Federal
Reserve System vnfia dapos~ts exceeding $1,000,000,000 vnth respect to habflmes or assets consisting of or
including l~,arocurreney L~abfl~t~es having a term equal to such LIBOR Interest Period
"Event of Tax~b~hty" means any event, act or onusslon that has the effect of causing the interest on tbs
Bond to become includable m the gross income for federal income tax purposes of the Owner any Former Owner
other than an Owner or Former Owner who ~s a "substunt~al user" of the Project or "related person" thereto, both
vathm the meaning of Section 147 of the Code
"Floating Rate" means the lesser of(l) the Apphcable Percentage of the Base Rate or (2) the Maxrmum
Rate
"Former Owner" means any person who was an Owner of ttus Bond during any Inclusion Pennd
"inchis~on Period" means, with respect to the Owner or any Former Owner, the period (excluding any
period to which any statute of hmitations may apply under the Code) beginning on the earhest date from wMch
interest paid m mspeet of tins Bond (as to which a Determination of Taxability has occurred) ~s determined to
be ~ncludable for federal raceme tax purposes ~n the gross income of such Owner or Former Owner (such
deterrmnatton to be made etther (a) by the Internal Revenue Servme or (b) m an op,mon of Bond Counsel) and
ending upon the earher of the date of transfer, purchase by the User or redemption of this Bond
"Interest Payment Date" means the first day of each calendar month during the term of a LIBOR Interest
Period and the last day of the term of that LIBOR Rate Period As to any period when this Bond bears interest
at a Floating Rate, Interest Payment Date means the first day of each calendar month during winch such rate
apphes, and the last day of its apphcation
"LIBOR Ftxed Rate" means, during the apphcable LIBOR Interest Period, an interest rate per annum
(calculated on the basts of a 360-day year) winch shall be equal to the lesser of(a) the quottent obtained by
d~wdmg 0) the LIBOR Rate by (u) a percentage equal to 100% rmnus the Eurodollar Rate Reserve Percentage
for such Period, or (b) the Maxunum Rate Each determination by the Paying Agent or the Owner of the LIBOR
Fixed Rate shall be conclusive absent mamfest error
"LIBOR Interest Period" mea~ the period oft~ne commencing on the exp~ration date of the munedtately
preceding LIBOR Interest Period, and ending on the effective date of any rate change or rate contmuatton
pursuant to a Notice of Interest Period Change subJeCt to the early termination provisions hereof, provided
however, that 0) any LIBOR Interest P~mod which would othenanse end on a day which is not a business day shall
be extendad to the next succeeding business day unless such business day falls tn another calendar month, m
which 0ase such LIBOR Interest Period shall and on the next precezhng business day, (u) each LIBOR Interest
Period shall be one, two, three, or sm calendar months m length, or be of such other length as the User and the
Owner may mutually agree, and (tit) a LIBOR Interest Period may not be selected for any period tf such period
would terminate later than the maturity date of the Bonds
"LIBOR Rate" during each apph,able LIBOR Interest Period means LIBOR (London Interbank Offered
Rate) as pubhshed m The Wall Street Journal (the "Raported Rate") two business days prior to the fa'st day of
such LIBOR Interest Period for a period equal m such LIBOR Interest Period If The Wall Street Journal (0
pubhshes more than one Reported Rate, the higher or highest of such rates shall apply, or (n) publishes a
retractmn or correCtton of any Reported Rate, the ~rreCted rate reported m such mtracUon or correct,on shall
apply Ifth~ R~ Rate is no longer pubhshed, the term "LIBOR Rate" shall mean a rate determined on the
basts oft.~ offered rates for dapoa~ts m U S Dollars for a period equal to such LIBOR Interest Period which
appear on tl~ d~splay page designated "LIBO Page" on the Router Momtor Money Rates Service (or such other
page as may replace that page on that sorvtce for the purpose of d~splaymg rates or prices comparable to the
LIBOR Rate) (the "Reuters Screen LIBO Page") as of 11 00 a m (New York tm~e) two business days prior to
the first O!!0 day of such LIBOR Interest Period If two or more rates appear on the Reuters Screen LIBO Page,
the rate for that date wall be anthraet~e mean of such rates
"Maximum Rate" means a "n~t effeCtive interest rate" (as def'med and calculated m accordance w~th
Article 717k-2, Vemon's Texas C~vtl Statutes) of fifteen percent
"Notfficatton of Taxability" me. ns the occurrence of any of the following
(a) The User is advtsed by the Conmussloner or any District D~rector of the Internal Revenue
Serace, or the User adwse$ the Paying Agent, the Owner or any Former Owner, that an Event of Taxabthty has
occurred
(b) The User ts advised by the Paying Agent, the Owner or any Former Owner that, m the opunon
of Bond Counsel, an Event of Taxabthty has occurred
(c) The User receives notice from the Issuer, the Paying Agent, the Owner or any Former Owner
that any such party has been advised that the Internal Revenue Serv,ce has assessed as includable m the gross
income of the Owner or any Former Owner any interest on flus Bond due to the occurrence of an Event of
Taxabd~ty
"Owner" means the registered owner of flus Bond as shown in the bond reg~stration books maintained
by the Paying Agent as registrar
"Taxab~hty Prenuum" means a premium that becomes payable to the Owner and any Former Owner of
the Bond during the Inclusion Period upon a Determmatlnn of Taxabflay, as hqmdated damages for loss ora
bargain and not as a penalty, winch premaum shall be
(a) an increase m the rate of interest on the pnnclpal balance o£ttus Bond outstanding to a rate equal
to the Base Rate plus one percent, plus
(b) the amount of any mterest or penalties that are payable by the Owner and any Former Owner
in connection vnth the Determmatlon of Taxability, plus
(c) the reasonable costs and expenses recurred by the Owner or any Former Owner m connection
with the Determination of Taxabthty and any other expenses for wtuch the User is responsible under the
Agreement
"User" mesas Mayday Manufacturing Company, [nc, a Texas corporatmn, and its penmtted successors
and assigns under the Agreement
P~vmant of Prmemal
The principal amount of tins Bond shall be prod m monthly installments on the dates and m the amounts
set forth m Schedule A to flus Bond
Determination of [ntarest Rate on flus Bond
(a) For purposes ofdetenramng the basis of the rate of interest that accrues on the principal of flus
Bond (including whether such interest Is based on LIBOR or the Base Rate, and the length of the LIBOR Rate
Pennds), the foltovnng procedure shall be followed
o
T~e outstandang pvampal amount offs Bond shall bear interest at the LIBOR Fixed Rate for an untlal
LIBOR Interest Period ofono (1) month andmg on May 31, 1998 From reno to tame the User may cause flus
Bond to bear mm~st at the LIBOR FRed Rate for LIBOR Interest Pennds as more particularly described below
Each such rate change shall be made upon prior not~ee from the User to the Paying Agent and the Owner (the
"Not,ce oflnterast Pennd Cheng~") delivered to the Paying Agent and the Owner not later than 11 00 a m (New
York mae) oa the ~ecop. d busmass day prior to the last day of the then.effestlve LIBOR Interest Period (or, if the
LIBOR Frxed Rate does not apply, delivered to the Paying Agent and the Owner not later than l I 00 a m (New
York tune) on the second busmass day prior to the commmceraent of the LIBOR Interest Period ~dentlfied in that
Notace) I Ea.c,h No*ace of Interest Pennd Change shall be u'revocable and shall specify the LIBOR Interest Period
to become appheable at the end of the then.expmng LIBOR [nterest Pennd Tbe User may g~ve the Paying Agent
and the Owner telephome notace by the reqmred tune of any proposed rate change for flus Bond, provided that
~ ~p~,~o~p~o~'~o~ Ol'~d ~ 7
such telephomc notice shall be confirmed m writing by dehve~y to the Paying Agent and the Owner promptly (but
m no event later than the effective date of the rate change) Ne:ther the Paying Agent nor the Owner shall recur
any habthty to the User m acting upon any telephome not:co referred to above which the Paying Agent or the
Owner beheves m good fa,th to have been g~ven by the User, or for otherwtse acting m good froth m connection
herewith If the User shall have fatled to properly dehver a Not,ce of Interest Pennd Change spec,lying a
continuation or eonvers~un pursuant to this Bond, the User shall be deemed to have elected a new LIBOR Interest
Period of the same duration as the LIBOR Interest Period so exp~nng
(b) Any amount of pnn¢lpal or interest on tins Bond that ~s not prod when due (whether at stated
maturity, by acceleration or otbervnse) shall, to the extent perrmtted by apphcable law, bear interest at a rate per
annum equal to the lesser of 0) 2% above the Base Rate or (u) the Maxtmum Rate
(c) If the Owner m good froth determines (wluch determination shall be conclusive) that neither of
the so~ for det~mnmmg the LIBOR Rate is pubhshtng a LIBOR Rate that would apply to a LIBOR Interest
Period, then the Owner will so notify the User and the Paying Agent The LIBOR Fixed Rate shall not apply on
such date or at any me thereafter until such tmae thereafter as the User receives notice fi.om the Owner that the
eu'cumstances gnvmg nsc to such det~tizanat:on no longer apply If such cn'¢umstances apply, tins Bond shall
bear interest at tho Fluatmg Rate commencing on the date on wtnch the LIBOR Fixed Rate ceases to apply, and
continuing until the User shall have dehvered to the Paying Agent and the Owner a Notice of Interest Period
Chang0 after the User has received not,ce fi.om the Owner referred to m the preceding sentence
(d) Anything m t.has Bond to the cents'sty notw~thstandmg, ff at any tune the Owner m good froth
det~.~nes (which determmation shall bo eoneluslve) that the mlroduction of or any change m any applicable law,
rule or regulation or any change m the mterpretatiun or adrmmstrataun thereof by any governmental or other
regulato~ anthonW charged w~th the mterpre~aUon or admuustrat~on thereof shall make it ulllawfu] for the Owner
(or the, Paying Agent) to maintain or fund any portion of thc pnnclpal amount at the LIBOR Fixed Rate, the
Owner shall g~vc notice thereof to the User and the Paying Agent Upon such date as shall be spen~fied m such
notice the LIBOR Rate Pennd shall end and the Floating Rate shall commence to apply m heu of the LIBOR
F~xl Rate and shall continue to apply unless and until thc Owner not~fies thc User that such illegality no longer
erasts, and tbo User thereat~n' provides a new Not,cc of Interest Pennd Change No more than five (5) business
days a_~er tho date speofled m such noUce, the User shall pay to thc Owner (x) accrued and unpaid interest at thc
LIBOR Fixed Rate m effect at the tune of such not~ce to but not including such spen~fied date plus (y) such
amount or amounts (to the extent that such amount or amounts would not be usurious under applicable law) as
may be necessary to compensate the Owner for any dm~ct or mdarect costs and losses recurred by ~t, but othervose
w~thout penalty If nouce has been g~ven by the Owner pursuant to the foregoing provlslous, then, unless and
until the Owner notifies the User that the circumstances g~vmg rise to such notice no longer apply, such LIBOR
Fixed Rate shall not again apply to tins Bond and the obhgaUon of the Owner to contmuc to offer the LIBOR
F~xed Rate shall be suspended Any such claun by the Owner for compensation under clause (y) above shall be
accompanged by a certificate setting fol~h the computation upon wluch such claun is based, and such eemficate
shall bc conclusive and binding for all pm~0oses, absent mamfest error
(e) THE USER WILL PAY AND INDEMNIFY THE OWNER AGAINST, AND REIMBURSE
THE OWNER ON DEMAND FOR, ANY LOSS (INCLUDING LOSS OF REASONABLY ANTICIPATED
PROFITS DETERIVflNED USING REASONABLE ATTRIBUTION AND ALLOCATION METHODS), OR
REASONABLE COST OR EXPENSE INCURRED OR SUSTAINED BY THE OWNER (INCLUDING,
WITHOUT LIMITATION, ANY LOSS OR EXPENSE INCURRED BY REASON OF THE LIQUIDATION
OR REEMPLOYMENT OF DEPOSITS OR OTHER FUNDS ACQUIRED BY THE OWNER TO FUND OR
MAINTAIN THE PRINCIPAL AMOUNT OF THIS BOND AT THE LIBOR FIXED RATE) AS A RESULT
OF ANY PAYMENT OR REPAYMENT ('WHETHER AUTHORIZED OR REQUIRED HEREUNDER OR
OTHERWISE) OF ALL OR A PORTION OF THE PRINCIPAL AMOUNT OF THIS BOND AT THE LIBOR
FIXED RATE ON A DAY OTHER THAN THE EXPIRATION DATE OF A LIBOR RATE PERIOD TO
DEMAND ANY SUCH PAYMENT THE OWNER SHALL DELIVER TO THE USER A STATEMENT
REASONABLY SETTING FORTH THE AMOUNT AND MANNER OF DETERMINING SUCH LOSS,
COST OR EXPENSE THE FACTS SET FORTH IN SUCH STATEMENT SHALL BE CONCLUSIVE AND
BINDING FOR ALL PURPOSES, ABSENT MANIFEST ERROR IN CONNECTION HEREWITH THE
OWNER SHALL NOT BE REQUIRED TO PROVE THAT IT ACTUALLY FUNDED ANY OF THE
PRINCIPAL AMOUNT OF TH/S BOND AT THE LIBOR FIXED RATE, IN WHOLE OR IN PART, WITH
MATCHING DEPOSITS IN DOLLARS, ACQUIRED BY THE OWNER FROM A PRIME BANK IN THE
APPLICABLE EUROCURRENCY INTEREANK MARKET, IRRESPECTIVE OF WHETHER THE OWNER
HAS ANY SUCH DEPOSITS
A cemficate of the Owner setlmg forth such amount or amounts as shall be necessary to compensate the
Owner, as specified m paragraph (e) above shall be dehvered as soon as practicable to the User (w~th a copy
thereof to the Paying Agent) and to the extent datermmed m accordance w~th paragraph (e) above shall be
conclusive and binding, absent mamfest error The User shall pay the Owner the amount shown as due on any
such certlficete wltinn fiftecn (15) days after the Owner dehvers such certlficate In preparing such certificate,
the Owrier may employ such assumptions and allocations (consistently applied with respect to advances made
by the Owner or comrmtments by the Owner to make advances) of costs and expenses as it shall m good froth
deem reasonable and may use any re~sooable averaging and atmbut~on method (consistently applied vnth respect
to advances made by the Owner or comnutments by the Owner to make advances)
(/) The interest rate on th~s Bond shall be tacreased as of the effectave date of any change m law that
(0 changes the port,on of the Owner's interest expense allocable to tins Bond that is d~sallowed as a deduction
under Section 165 of the Internal Revenue Code of 1986, as emended, or (n) adversely affects the taxable
oqmva|ent yield of tlus Bond to the Owner, or as soon thereafter as ~s practical by an amount sufficient to
mamtal0 the yield on this Bond to the Owner as though such change m the law had not occurred if, not later than
the 60th day after the effective date of such change m tho law, the Owner prowdes the Paying Agent and the User
(A) a certificate of an authorized representative of the Owner to tho effect that
( 1 ) a change m tho law had adversely affected the yield on this Bond to the Owner,
and
(2) specifying the date such change took effect, and
(B) a certlficete of the Owner thereof stating the amount of the mcmaso m thc mterest rate
necessary to maintain the yield as above provided
(~) All payments on account of the principal of and mterast on this Bond and all other amounts
payabl0 by the User to the Paying Agent or the Owner hereunder shall be made free and clear of and without
reduction by reason of any tax levy, impost or charge of any nature unposed by a taxing anthonty (except such
taxes esl ere measured by the ovorell net raceme of the User by the junsd~ctlon in winch the Owner's lending office
is located, all of winch will be for the account of the User and prod when due by such User)
(h) Interest shall cease to eceruo on payments of prmclpel, premium, ~f any, and interest on th~s
Bond b0yond then' duo dates and to the extent that the Paying Agent (hereinafter defined) has received funds for
the tunely payment thereof m accordance with tho Agreement and the Bond Resolution
(0 In no event shall the interest charged, contracted for or received on this Bond, together w~th all
other costs and considerations that constitute interest under apphcable law, exceed the mammum amount
p~.,utted thereunder vnth respect thcrcto If intercst would otherwise bc payablc tu the Owner m excess of the
max~num lawful amount, the interest payablc to thc Owncr shall bc reduced to thc maxunum amount pcnmtted
under applicable law, and, if the Owner shall rccelve anytinng of value dccmed interest by apphcablc law m
excess of the maxunum lawful amount, an amount equal to any excessive interest shall be apphcd to thc reduction
of thc principal thereof, or, if such excess exceeds the outstanding pnnc~pal balance thereo£, then such excess
shall bcI refunded to the Paym§ Agent for the return to thc User (hereinafter defined) All sums paid or agreed
to be paid to the Owner for th~ use, forebearanes or dotennon of thc indebtedness evidenced thereby, to the extcnt
permitted by law, shall bc amomzcd, prorated, allocated and spread throughout thc full term of flus Bond
(j) Notwithstanding the foregoing, under no cu'cumstences shall any payment be rcqmred m
connection w~th tins Bond if such payment would cause interest on tins Bond to exceed the Mayamum Rate
The principal installments oftlus Bond arc subJeCt to prepayment and redemption only as follows
Surplus Construction Fund Redamntion On any Interest Payment Date, the unpaid principal
msta!lraents of flus Bond am subjeCt to prepayment or redemption, and may be prepaid or redeemed prior to the
scheduled duo dates by the Issuer at the darection of thc User, m reverse chronological order of their scheduled
duc dates (m amounts not less than all of an unpaid pnncipal mstellmant), at a prepayment or rederaptmn pncc
equal tO the principal amount tbereof tO be prepmd or redeemed plus accrued mterust thereon to the date of
prepaYment or redemption, vnth and tO the extent of any surplus funds remaining m thc ConsUucUon Fund
(crestedlby the Bond Resolution) after the completion of thc ProJect, as provided and reqmred by SecUon 15 of
the Bond ResoluUon
,MandatorvRedem~t~on Uvon Determlnatton of Taxability Tins Bond shall bc redeemed by the Issuer
before its scheduled maturity in whole on thc next Interest Payment Date following thc date that the Paying Agent
~ecc~ves wnttan notice from the Owner, any Former Owner or the User of the occurrence of a Dctemunataun of
Taxability, at a price equal to the outstanding pnnclpal amount thereof plus accrued interest to thc redamptaon
date
In the event ofa Deterrmnat~on of Texabthty, the Owner and any Former Owner shall be entitled to
payment from the User of the Taxability Prenuum
~andatorvRedemvtionut~ondlrectionofOwner The principal installments of tins Bond shall be
redeemed before their scheduled due dates m whole or m part by the Issuer at thc optaon of the Owner after
written not~ce given by the Owner to the User stating the following
(a) the date of such redemption, which date must bc an Interest Payment Date occurring
no less than 90 days after the date of such notw, c and at least one year after the Delivery
Date of this Bond,
Co) the pnnclpal amount to be redeemed
on In the event that less than thc enttru amount of thc outstanding principal
mstallrn~ts of tlus Bond ~s tO be prb, pmd and redeemed, the principal installments being prcpmd shall be applied
m reverse order of the due dates of the outstanding pnnclpal installments of tins Bond
10
Nottceo£Redemt~ttonbvPavln~A~ent The Paying Agant shall give notice by any reasonable means
that the prmclpal mstallmen~;s of flus Bond have been called for prepayment and redemptaon, stating the
redeml~tlon pnee and tha redarapUon date that the prmclpal installments of flus Bond ceases to bear interest from
and airier the redemption date if due provision for the timely payment of the redemption pnee is made Such
noiteelshall be guvan by first class mall no less than 15 days pr]or to the redemption date Any defect m the
redempUon noace g~ven by the Paying Agent shall not affect the validity of any proceedings for the prepayment
and redemption of the principal mstallmants of flus Bond
Oeneral Provisions
The principal of and interest on this Bond shall be payable m lawful money of the Umted States of
America, uathout exchange or collection charges Payments of principal and interest shall be made to the
registered owner m immediately available funds by Brown Brothers Trust Company (the "Paying Agent" and
"Regastrar" for flus Bond) or its successor, provided that m the alternative such payment may be made by any
other method requested m writing by the registered owner, subject to the approval of the Paying Agent Tbo ~'mal
payment of principal on flus Bond shall be prod only upon surrender of flus Bond to the Paying Agent for
cancellation Any prepaymant or redemption of any principal installments of flus Bond shall bo made only upon
presentst~on of flus Bond to the Paying Agent, who shall make notation of such prepayment or redemption m the
Prepayment Record andorsed hor~on
Tlus Bond Is dated as of May 1, 1998 and was anthonzed and Issued m the aggregate principal amount
of $750,000 pursuant to a resolution adopted by the Board of D~rectors of the Issuer (the "Bond Resolution") on
behalflof the City of Denton, Texas TO PAY PART OF THE COST OF ACQUIRING, CONSTRUCTING
AND EQUIPPING OR CAUSING TO BE ACQUIRED, CONSTRUCTED OR EQUIPPED A
MANUFACTURING FACILITY IN THE CITY OF DENTON, TEXAS, FOR MAYDAY
MANUFACTURING COMPANY, INC (THE "USER") FOR THE SPECIFIC PURPOSE
MANUFACTURING CLOSE TOLERANCE STRUCTURAL MACHINING COMPONENTS FOR USE IN
THE ~EROSPACE INDUSTRY
Ttus Bond is issued contemporaneously vnth the Issuer's $1,750,000 pnnclpal amount Revenue Bond
(Mayday Manufacturmg Company, Inc Project) Series 1998B, whcth was authorized and issued under the Bond
Resolution
It is hereby certified and covenanted that flus Bond has been duly and validly authonzmi, issued, and
dehverM, that all acts, con&t~ons, and things reqtured or proper to be performed, exast, and be done precedent
to or m the anthonzataon, issuance, and delivery of flus Bond have been performed, eyasted, and been done m
accordance w~th law, that flus Bond is a spaclal revenue obligation of the Issuer, and that the pnncipal of and
mteres~ on flus Bond are payable from and sacured by a guest lien on and pledge of the payments designated as
"Installtne~t Loan Payments" to be made or prod, or caused to be made or paid, to the Paymg Agant, pursuant
to thc Bond Resolutaon and the Agreement The User is uncon&tlonally obligated to make or pay, or cause to
bc made or prod, vnthout eet-off, recoupment, or counterclmm, to the Paymg Agent each such Installment Loan
Payment for deposit rote the Debt Service Fund created for thc benefit of the owners of the Bonds by the Bond
Resolution, m aggregate amounts sufficient to pay and redeem, and provide for the paymant and redemption of,
the pnn~lpal of and interest on flus Bond, and to pay all other amounts required by thc Agreement and the Bond
ResoluUon whan due, subject to and as reqtured by the provisions of the Agreement and the Bond Resolution
In case an "Evant of Default", as defined m the Bond Resolution, shall occur, thc unpaid principal
installments of this Bond may bo declared to bo due and payable unmedlataly upon the conthtlous and m the
manner prowded m the Bond RasoluUon Reference is hereby made to thc Bond Resolution and the Agreement
for ad&taonal prowslons w~th respect to the nature and extent of thc security, thc nghts, dutaes, and obligations
of the User, the Issuer, the Paying Agent, and the owner of flus Bond, the terms upon which this Bond is issued
and secured, and the mod~ficatiun of any of the foregoing
The Issuer has reserved the right to amend the Bond Resolutlun as prowded therein, and under some (but
not all) c~rcumstances amendments thereto must be approved by the owners of 100% in aggregate pnncipal
amount of the Bonds then outstanding
The Owner hereof shall never have the right to demand payment of flus obligation out of any funds raised
or to be raised by taxation or from any source whatsoever except the payments and amounts described ~n th~s
Bond, the Bond Resolution and the Agreement Except for the lien on and the assignment and pledge of such
property, payments, and amounts, no property of the Issuer ~s encumbered by any lien or security mterest for the
banefit of the owner of tbs Bond Ne~thar the State of Texas, the City of Denton, Texas, nor any other pohtical
corporataon, subdivision, or agency of the State of Texas, nor the Board of D~rectors of the Issuer, e~ther
individually or oollect~vely, shall be obhgated to pay the pnnclpal of flus Bond, any premium or payment wth
respent to flus Bond, or the interest hereon, and neither the faith and ere&t, nor the taxing power, of the State of
Texas, the C~ty of Denton, Texas, nor any other poht~cal corporation, subthvis~on, or agency of the State of
Texas, ~s pledged to the payment of the principal of flus Bond, any prenuum or payment w~th respect to flus
Bond, or the mtarest hereon
Ttus Bond may be assigned and shall be transferred only on the Bond Reg~stration Books of the Issuer
kept by the ?aymg Agent, as Regastrar, upon the terms and eondat~uns set forth m the Bond Resolutmn and the
Assignment provlsmns endorsed hereon Such transfers shall be wthout expense to the owner hereof, but any
taxes or other governmental charges requared to be paid w~th respect to the same shall be paid by the owner
requesting such transfer as a oonthtlun precedent to the exercise of such privilege The Paying Agent shall not
be requ~d to make transfers of flus Bond waflun tan (10) days prior to an mm'est payment date or prepayment
or redempuon date or subsequent to the date of marling of not,ce of prepaymant or redemptmn of any principal
mstallments of flus Bond, anyflung m flus Bond to the contrary notv, athstand~ng The registered owner of th~s
Bond may be deemed and treated by the Issuer, the Paying Agent and the User as the absolute owner hereof for
all purposes, including payment and thscharge of liability upon flus Bond to the extent of such payment, and the
Issuer, the Paying Agent, the User, shall not be affected by any notice to the oontrary
'Ihs Bond shall not be vahd or become obhgatory for any purpose or be entnled to any security or benefit
under the Bond ReeoluUon until the Comptrollers Registration Certificate hereon shall have been signed by the
CompU'oller of Public Aeoounts and the Dehve~ Certificate hereon shall have been completed
IN WITNESS WHEREOF, flus Bond has been signed w~th the manual or facsmnle signatures of the
Pres,dant and the Secma.,y of the Board of I)L'~tors of the Issuer, and the official seal of the Issuer has been duly
mapressed, or placed m facsmule, on flus Bond
Secretary, ?resident,
Board of D~rectors Board of D~rectors
(ISSUER'S SEAL)
(FORM OF STATE COMPTROLLER'S CERTIFICATE FOR. BOND)
COMPTROLLEWS REGISTRATION CERTIFICATE REGISTER NO
I HEREBY CERTIFY that the~ ,s on file and of record m my ofSce a certificate of the Attorney General
of the Stat~ of Texas to the effect that th, s bond has been e×ammed by tum as reqmred by law, and that he finds
that ,t has been issued m conform:ty w~th the Const,tut~on and laws of the State of Texas, and that it is a vahd
and binding spec,al obhgation of the City of Denton Indusmal Development Authority and smd bond has th~s
day been registered by me
WITNESS my s~gnamre and seal ttus
Comptroller of Publ,c Accounts of
the State of Texas
(SEAL)
[FORM OF ASSIGNMENT]
Fei' ¥~lu~ l'~lYed, the imdgl~l~led hereby sells, assigns and transfers unto the
vathm Bond, and do~s hereby irrevocably const,tute and appoint , attorney to txansfer
such Bond on the books kept for reg~strat:on and transfer of the vatlun Bond, vath full power of substitution m
the prermses
Dated.
NOTE The s~gnature to flus Assignment must correspond ,oath the
name as it appears upon the face of the w~thm Bond m every
particular, w~thout enlargement or alteration or any change
whatsoever
S~gnature guaranteed by
NOT~ S:gnature(s) must be guarants,'ed by an "ehg~ble guarantor
mst~tutton" meeting the reqmrements of the Paying Agent/Registrar,
which reqmrements include membership or pame~pat~on m STAMP or
such other "s~gnat~re guaranty program" as may be detemuned by the
Trustee m addxt~on to or m subst:tutlon for STAMP, all m accordance
vath the Secunt~es Exchange Act of 1934, as amended
FORM OF DELWERY CERTIFICATE
DELIVERY CERTIFICATE
THIS BOND was dehvered to and paid for by the purchaser hereof on
FORM OF PREPAYMENT RECQRD
PREPAYMENT RECORD
Date Pnnc~pal Remaining Name & Title of Signature of
of Prepayment or Pnnmpal Authorized Officer Authorized
Payment Redemption B~lance Makm~ EnU'v Officer
FORM OF SERIES 1998B BOND
NO BR-I $1,750,000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
REVENUE BOND
(MAYDAY MANUFACTURING COMPANY, INC PROJECT)
SERIES 1998B
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY (the "Issuer"), being a nonstock,
nonprofit development corporation orgamzed and ex~stmg under the laws of the State of Texas, including
particularly the Development Corporation Act of 1979, as amended, Article 5190 6 V A T C S (the "Act"), and
acting On lidudfofthe Oty of Denton, Texas, hereby pronuses to pay to ,
or its registered assigns, the aggregate pnnc~pal amount of
ONE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS
m ms~lmants on the dates and m the amounts hercmaficr described, and to pay interest thereon, from thc date
ofdch~ery hereof (wluch date appears m the Delivery Certificate endorsed on this Bond), on the balance of said
pnnclpal amount from tune to t~me remaining unpaid, at a rate per annum established m accordance voth the
terms oftlus Bond set loth below (provided that such principal and interest arc payable solely from the sources
and m the manner hereinafter described, and solely as authorized and provided m the Act)
Defimt~ons
The follow,ng terms are defined as follows
"Agreement" means the Loan Agreement dated as of May 1, 1998 between the Issuer and the User
"Appl,cable Percentage" means percent ( %), prov,ded that the Appl,cable
Percentage may be adjusted by the Omaer 0) to offset any decrease m net interest meome allocable to th,s Bond
due to a change m the pomon ofgs interest expense allocable to this Bond that ,s disallowed as a deduct,on under
Sect,on 165 of the Code or (u) to reflect changes m federal marginal tax rates winch adversely affect the taxable
equivalent y~eld on flus Bond to the Owner
"Base Rate" means a fluctuating rate per annum as shall be m effect from tune to tune, wh,ch rate per
annum shall be equal to the rate of interest estabhshed by Brown Brothers Harnman & Co m New York, New
York, from tune to tune, as its base rate Each change m the Base Rate shall be effecuve vathout not,ee to the
User, automat,cally as of the opening of business or the date of such change m the Base Rate
"Bondholders' Dutectlon" means a written order of the Owner directing the Paying Agent to take some
specific aeUon
"Bond Counsel" means a firm of naiaonally recogmzed attomeys expenenced m the financing of faciht,es
through the issuance of tax-exempt bonds under 5ectmn 103 of the Code and approved by the Issuer, the
Company and the Paying Agent
"Code" means the Internal Revenue Code of 1986, as amended
"Detemunataon of Taxabfl,ty" means any Notification of Taxabdity, prey,dod, that, a Determination of
Taxability shall not be deemed to have eeeurmd unUl any contest thereof has been finally determined unfavorably
to the e0ntent~ons of the User, or ,s abandoned, m accordance w~th the following prey,stuns
(a) W,th respect to any Notlficatmn of Taxablhty arising because of an event described m clause
(a) of the deflmtion of that te,,m contained m flus Bond, the User, vathm 20 days after the date of the Not, float,on
of Taxabihty, may contest or appeal such event by filing and dihgently pursuing to conclusion any remedies m
anyjudwaal or admmlstrabve fonan penmtted by law for challenging the basis for such notification but fine such
forum ~S lava~lly available, flaen no contest exists under this paragraph (a), and at the close of such 20 day penod,
a DeterramaUun of Taxability shall be deemed to have occurred w~th respect to flus Bond
(b) With reepect to any Notification of Taxability descnbed m clause (b) of thc defrost,on of that
term eo~ m flus Bond, the User, w~fl~n 20 days after the date of the Notification of Taxability, may contest
the opinion of Bond Counsel by providing to the Paying Agent and the Owner an opinion of counsel selected by
the User reaelung contrary conclusions except ,f a contrary opinion ,s not funushad wahm such period, or ff a
contrary opinion ,s funushed but rejected by the Owner, then such contest shall be deemed eonclus,vely to be
tennma~d on the date of such fa, lure or reJection, and a Determmat,on of Taxabfl,ty shall bo deemed to have
occmrefl on that date vath respect to flus Bond
(c) With respect to any Notafication of Taxabfl,ty described m clause (c) of the defimtion of that
term contained m flus Bond, the Owner or Fenner Owner w~th respect to winch such noufieatlon was g~ven shall
contest or appeal the bas~s for such nottficatlon if, w~flun 20 days after the date of the Not,float,on of Taxabthty,
thc User
(,) re. quests the Owner or Former Owner to contest or appeal the bas~s for such notification
and specifies the steps and procedures requested to be taken, each of which shall be reasonable and
lawfully avadable,
(u) provides mdemmficat,on to the Owner or Former Owner tn a manner satlsfacto~ to the
Owner or Former Owner for any habd,ty, costs or losses (other than taxes) that may be recurred ,n
connect,on w~th such contest or appeal, including, w~thout hmitation, reasonable attorney's and
accountant's fees and the amount of any interest or penalty that may ultimately be payable as the result
of such contest, together w~th security for such mdemmficaUon satisfactory to the Owner or Former
Owner,
(m) furnishes an op~mon of independent counsel, satisfactory to the Owner or Former
Owner, to the effect that a meritorious basis for such contest or appeal exists,
provided that the Owner or Former Owner, ~tb.m the sole d~screUon of the User, shall forego any and all
adrmmslrat~ve appe~s, pror.~eexlmgs, haarmgs and conferences w~th the Internal Revenue Service anditmg agent
and e~ther pay tho tax clarmed and sue for a retired m the appropriate Umted States Dmmct Court of the United
States Court of Clarms, or contest the Notlficetwn of Taxabthty m the Tax Court of the Umted States, and if a
contest Is filed m the appropriate Umted States D~stnct Court, Tax Court or the Umted States Cour~ of Clauns
(or if the dacimon of any such court has been appealed to a higher court) and an unfavorable decision of such
court ~s rendered, then the Owner or Former Owner agrees to appeal such unfavorable decision only xf, vathm
20 days after the date of not, ce to the User of such des~s~en, th~ User shall request that such decision be appealed,
prowded fi~'ther that, so long as the mdammty and socunty requared m paragraph (c)(u) above shall continue m
effect, the Owner or Former Owner will not terminate or settle such contest, appeal or further appeal of an
unfavorable decm~on wthout the prior approval of the User Upon the final conclusion of any such contest or
appeal, or upon the abandonment thereof by the User, a Determination of Taxability shall be deemed to have
occurred w~th respect to flus Bond
'*Eurocurrency Lmbtht~es" shall have the meaning assigned to that term m Regulation D (or any successor
thereto) of the Board of Governors of the Federal Reserve System, as m effect from time to tune
"Euredollar Rate Reserve Percentage" for any LIBOR. Interest Period shall mean the reserve percentage
apphcable during such LIBOR Interest Period (or ~f more than one such percentage shall be so apphcable, the
daffy average of such percentages for those days m such LIBOR Interest Penod dunng wluch any such percentage
shall be so apphcable) under regulations ~ssued from trine to tune by the Board of Govemurs of the Federal
Reserv, System (or any successor) for determining the mammnm reserve reqmrement (including, w~thout
hrmtatmn, ~ emergency, suppl~nental, or other mergmsl reserve reqmrement) for member banks of the Federal
Reserve System wtth daposlts exceeding $1,000,000,000 vath respect to habtht~es or assets consisting of or
including ~rocurrency Llabtht~es having a term equal to such LIBOR Interest Period
"Event of Taxab~hty" means any event, act or onussmn that h~s the effect of cansmg the interest on this
Bond to become mcledable m the gro~s income for federal income tax purposes of the Owner any Former Owner
other than an Owner or Former Owuer who m a "substantml user" of the Project or "related person" thereto, both
w~tinn the meaning of Section 147 ofth~ Code
"Floating Rate" means the lesser of(l) the Apphcable Percentage of the Base Rate or (2) the Maramum
Rate
"Former Owner" means any person who was an Owner of tins Bond dunng any Inchismn Period
"Inclusion Penod" means, w~th respect to the Owner or any Former Owner, the period (excluding any
pened to wtuch any statute of limitations may apply under the Code) beginning on the earliest date from which
interest paid in respect of this Bond (as to which a Determination of Taxabihty has occurred) is determaned to
be includable for federal income tax purposes in the gross income of such Owner or Former Owner (such
detemunation to be made either (a) by the Internal Revenue Servace or (b) m an oplmon of Bond Counsel) and
endmg~upon the earlier of the date of transfer, purchase by the User or redemption of this Bond
"Interest Payment Date" means the first day of each calendar month dunng the term of a LIBOR Interest
Period andthe last day of the term of that LIBOR Rate Period As to any period when flus Bond bears interest
at a Fl0etmg Rate, Interest Payment Date means the fu'st day of eanh calendar month during winch such rate
applies, and the last day of ~ts apphcataon
"LIBOR Fixed Rate" means, during the applicable LIBOR Interest Period, an interest rate per annum
(calculated on the basis of a 360-day year) wluch shall be equal to the lesser of (a) the quotient obtained by
chwdmg 0) the LIBOR Rate by (u) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage
for such Period, or (b) the Max~aum Rate Each deternunat~on by the Paying Agent or the Owner of the LIBOR
F~xed Rate shall be conclusive absent mamfeet error
"LIBOR Intel'est Penod" means the pened of t~me cemmencmg on the exp~ranon date of the mamed~ately
preceding LIBOR Interest Period, and ending on the effective date of any rate change or rate continuation
pursuant to a Not,ce of Interest Pened Change subject to the early termmanon prows~ons hereof, provided
however, that (0 any LIBOR Interest Period wbach would othemase end on a day wInch is not a business day shall
be extended to the next suceeedmg business day unless such business day falls m another calendar month, m
wbach ease such LIBOR Interest Pened shall end on the next preceding business day, (n) each LIBOR Interest
Period shall be one, two, three, or six calendar months m length, or be of such other length as the User and the
Owner may mutually agree, and (aaa) a LIBOR Interest Penod may not be selected for any penod ff such penod
would term. mate later than the maturity date of the Bonds
"LIBOR Rate" dunng each appheable LIBOR Interest Period means LIBOR (London Interbank Offered
Rate) as published m The Wall Street Journal (the "Reported Rate") two business days pnor to the first day of
such LIBOR Interest Period for a period equal to such LIBOR Interest Period If The Wall Street Journal
publishes more than one Reported Rate, the higher or I~ghest of such rates shall apply, or (~) publishes a
retraction or eorreeUon of any Reported Rate, the corrected rate repor~d m such retracuon or ¢orrentaon shall
apply If the ~ Faire as no longer published, the term "LIBOR Rate" shall mean a rate determined on the
basas oD. he offered rates for deposits m U S Dollars for a period equal to such LIBOR Interest Period wluch
appear ers the d~splay page designated "LIBO Page" on the Reuter Momtor Money Rates Service (or such other
page as may replace that page on that service for the purpose of chsplaymg rates or prices cemparable to the
LIBOR Rate) (the "Rcuters Screen LIBO Page") as of 11 00 a m (New York tune) two business days prior to
the firsti(lll~)day of~eh LIBOR Inte~st Pe~od If two or mere rates appear on the Reuters Screen LIBO Page,
the rate, for tl~t date v~ll be anthmetac mean of such rates
"Maximum Rate" means a "net effective interest rate" (as dafmed and calculated m aneordance vnth
Article 717k-2, Vemon's Tex~s C~wl Ste~utes) of fi~een percent
"NotlficaUon of Texabfl~ty" means the oceurrence of any of the following
(a) The User as advised by thc Commissioner or any Dlsmct D~rector of the Internal Revenue
Serwee, or the User adwses the Paying Agent, the Owner or any Former Owner, that an Event of Texabthty has
ocCUlTed
(b) The User is advised by the Paying Agent, the Owner or any Former Owner that, ua the opinion
of Bond Counsel, an Event of Taxability has occurred
(c) The User receives notice from the Issuer, the Paying Agent, thc Owner or any Former Owner
that any such party has been advised that the Internal Revenue Service has assessed as includable m the gross
income, of the Owner or any Former Owner any interest on this Bond due to the occurrence of an Event of
Taxability
"Owner" means the registered owner of this Bond as shown ua the bond registration books maintained
by the Paying Agent as registrar
"Taxablhty Pranuum" means a pranuum that becomes payable to the Owner and any Former Owner of
the Bond during the Inclusion Period upon a Determination of Taxability, as hquadated damages for loss of a
bargain and not as a penalty, which pronuum shall be
(a) an increase m the rate of interest on the pnncapal balance of flus Bond outstanding to a rate equal
to the Base Rate plus one percent, plus
(b) the amount of any interest or penalties that are payable by the Owner and any Former Owner
m connoctmn w~th the Determination of Taxability, plus
(c) tho reasonable costs and expenses recurred by the Owner or any Former Owner m conneeUon
w~th the Determination of Taxability and any other expanses for wtuch the User is responsible under the
Agreement
"User" meam Mayday Manufacturing Company, Inc, a Texas corporation, and ~ts pernutted successors
and assigns under the Agreement
Psvmant of Pnncmal
The principal amount of flus Bond shall bo paid on May 1, 2018
Detonmnat~on of Interest Rate on this Bond
(a) For putlx~s ofdelennmmg fl0e bas~ of the rate of interest that accrues on the principal of flus
Bond (including whether such interest is based on LIBOR or the Base Rate, and the length of the LIBOR Rate
Periods), the following procedure shall bo followed
Tho outgandmg pnnclpal amoant of flus Bond shall bear interest at the LIBOR Fixnd Rate for an uutnd
LIBOR,In~eh~t Period of one (1) month ending on May 31, 1998 From tune to tune the User may cause flus
Bond to ~ mtet~t g tho LIBOR Freed R,~ for LIBOR Interest Periods as moro pamcularly deeenbed below
Each such rate ¢lumge shall be made upon prior notice from the User to the Paying Agent and the Owner (the
"NoUce oflntereet l~nod Change") dahvered to the Paying Agent and the Owner not later than 11 00 a m (New
York tame) tm the ~xmd business day pnor to tho last day of the than-effeeUve LIBOR Interest Period (or, if the
LIBOR Fixed Ra~ do~ not apply, delivered to the Paying Agent and the Owner not later than 11 00 a m (New
York time) co tho socood busme~ day prior to tho commencement of the LIBOR Interest Period ldant~find ua that
NtYace) [ Ear ah Not,ce of Interest Period Change shall be irrevocable and shall specify the LIBOR Interast Period
to become apphcable at the e~d of tho than-expu'mg LIBOR Interest Pennd Tbe User may ~ve the Paying Agant
and the Owner telephonic notice by the required tlme of any proposed rate change for flus Bond, provldad that
such telephonic no,ce shall be coofirmed m writing by dehvety to the Paying Agent and the Owner promptly (but
m no event later than the effective date of the rate change) Neither thc Paying Agent nor thc Owner shall incur
any liabllity to the User m acting upon any telcphomc notice referred to above which thc Paying Agent or thc
Owner believes m good froth to have been g~ven by the User, or for other~nse acting m good faith m connection
herewith If the User shall have failed to properly deliver a Notice of Interest Period Change specifying a
contmuat~en or conversion pursuant to tlus Bond, the User shall be deemed to have elected a new LIBOR Interest
Period of the same duration as the LIBOR Interest Period so exp~nng
(b) Any amount of principal or interest on this Bond that is not paid when due (whether at state(/
maturity, by acceleration or otherwise) shall, to the extent permitted by applicable law, bear interest at a rate per
annum equal to tho lesser of(0 2% above the Base Rate or (~l) the Mayamum Rate
(c) Iftha Owner m good faith determines (whch determination shall be conclusive) that neither of
the sources for datermmmg the LIBOR Rate is publishing a LIBOR Rate that would apply to a LIBOR Interest
Period, then the Owner w~ll so notify the User and the Paying Agent The LIBOR Fixed Rate shall not apply on
such date or at any tune thereaRer nntfl such tune thereafter as the User receives notice from the Owner that the
c~rcumstsnces g~vmg nsc to such deternnnatlon no longer apply If such c~rcumstances apply, flus Bond shall
bear mt(m~t at the Floating Rate commencing on the date on wluch the LIBOR Fixed Rate ceases to apply, and
continuing until tho User shall have delivered to the Paying Agent and the Owner a Notice of Interest Period
Change aider the User has received not~ce from the Owner referred to m the preceding sentence
(d) Anything in flus Bond to the contrary notwithstanding, if at any tune the Owner m good faith
datermmes (whch datermmation shall be conclusive) that the mtrnduct~on of or any change m any applicable law,
rule or regulation or any change in the mterpretetion or adnnmstrat~on thereof by any governmental or other
regulatory authority ebro'ged w~th the mteq)retetion or adrmmstration thereof shall make it unlawful for the Owner
(or the Paying Agent) to maintain or fund any portion of the prmcipal amount at the LIBOR Fixed Rate, the
Owner shall ~ve notice thereof to the User and the Paying Agent Upon such date as shall be specified m such
notice the LIBOR Rate Period shall and and the Floating Rate shall commence to apply m lieu of the LIBOR
Fixed Rate and shall continue to apply unless and until the Owner notifies the User that such illegality no longer
eyasts, and tho User thereafter provides a new Notice of Interest Period Change No more than five (5) business
days after the date specified m such not~ce, the User shall pay to the Owner (x) accrued and unpaid interest at the
LIBOR Fixed Rate m effect at the time of such notice to but not including such specified date nlus (y) such
amount or amounts (to the extent that such amount or amounts would not be usurious under applicable law) as
may be neceas,~y to enmpensate the Owner for eny &feet or mduect costs and Ieasas recurred bY It, bet other~nse
w~thout penalty if notic~ has bean g~van by the Owner pursuant to the foregoing provislous, than, unless and
until fl~ Owner notflles the User that the cu'cumstauces g~vmg rise to such notice no longer apply, such LIBOR
Fixed Rate shall not again apply to this Bond and the obligation of the Owner to contmno to offer the LIBOR
Fixed Rate shall be suspended Any such claim by the Owner for compensation under clause (y) above shall be
accompanied by a ~cate setting forth the computation upon which such claun Is based, and such certificate
shall bo conclusive and binding for all purposes, absent mamfest error
(e) THE USER WILL PAY AND INDEMNIFY THE OWNER AGAINST, AND REIMBURSE
THE OWNER ON DEMAND FOR, ANY LOSS (INCLUDINO LOSS OF REASONABLY ANTICIPATED
PROFITS DETERMINED USING REASONABLE ATTRIBUTION AND ALLOCATION METHODS), OR
REASONABLE COST OR EXPENSE INCURRED OR SUSTAINED BY THE OWNER (INCLUDINO,
WITHOUT LIMITATION, ANY LOSS OR EXPENSE INCURRED BY REASON OF THE LIQUIDATION
OR REEMPLOYMENT OF DEPOSITS OR OTHER FUNDS ACQUIRED BY THE OWNER TO FUND OR
MAINTAIN THE PRINCIPAL AMOUNT OF THIS BOND AT THE LIBOR FIXED RATE) AS A RESULT
OF ANY PAYMENT OR REPAYMENT 0/V'I-IETHER AUTHORIZED OR REQUIRED HEREUNDER OR
OTHERWISE) OF ALL OR A PORTION OF THE PRINCIPAL AMOUNT OF THIS BOND AT THE LIBOR
FIXED'RATE ON A DAY OTHER THAN THE EXPIRATION DATE OF A LIBOR RATE PERIOD TO
19
DEMAND ANY SUCH PAYMENT THE OWNER SHALL DELIVER TO THE USER A STATEMENT
REASONABLY SETTING FORTH THE AMOUNT AND MANNER OF DETERMINING SUCH LOSS,
COST OK EXPENSE THE FACTS SET FORTH IN SUCH STATEMENT SHALL BE CONCLUSIVE AND
BINDING FOR ALL PURPOSES, ABSENT MANIFEST ERROR. IN CONNECTION HEREWITH THE
OWNER SHALL NOT BE REQUIRED TO PROVE THAT IT ACTUALLY FUNDED ANY OF THE
PRINCIPAL AMOUNT OF THIS BOND AT THE LIBOR FIXED RATE, IN WHOLE OR IN PART, WITH
MATCHING DEPOSITS IN DOLLARS, ACQUIRED BY THE OWNER FROM A PRIME BANK IN THE
APPLICABLE EUROCURRENCY INTERBANK MARKET, IRRESPECTIVE OF WHETHER THE OWNER
HAS ANY SUCH DEPOSITS
A cea'aficate of the Owner se~tmg forth such amount or amounts as shall be necessary to compensate the
Owner as specified in para~aph (e) above shall be delivered as soon as practicable to the User (vnth a copy
thereof to the Paying Agen0 and to the extent detemuned tn accordance w~th paragraph (e) above shall be
conclusive and btndmg, absent mamfest error The User shall pay the Owner the amount shown as due on any
such cel~tlficete within fit~een (15) days after the Owner dehvers such certificate In preparing such certificate,
the Owner may employ such assumptions and allocations (consistently apphed w~th respect to advances made
by the Owner or cormmtments by the Owner to make advances) of costs and expenses as it shall tn good fiuth
deem reoaonable and may use any reasonable averaging and athnbuttnn method (consistently applied vnth respect
to advances made by the Owner or commitments by the Owner to make advances)
(f) The tnterest rate on this Bond ahall be tncreased as of the effecave date of any change m law that
0) changes the portion of the Owner's tnter~st expense allocable to tlus Bond that is &sallowed as a deductaon
under Section 165 of the Internal P~venue Code of 1986, as amended, or (ii) adversely affects the taxable
equivalent y~eld of this Bond to the Owner, or as soon th~rcein, er as is practical by an amount sufficient to
maintain tho y~ald on tins Bond to th~ Owner as though such change tn the law had not occurred if, not later than
the 60th day aiter the effecave date of such change tn the law, the Owner provides the Paying Agent and the User
(A) a certificate of an anthonzed representative of the Owner to the effect that
(1) a chenge m the law had adversely affected the y~eld on tins Bond to the Owner,
and
(2) specifying the date such change took effect, and
(B) a cemticete of tho Owner tbereof stating the amount of the tncrease tn the tnterest rate
necessary to matntam the yield as above provided
(g) All payments on account of the pnnclpal of and interest on tlus Bond end all other amounts
payabl0 by ~ho User to the Paying Agent or the Owner bereonder shall be made flee and cie, ar of and w~thout
redu~oo by rensun of any tax levy, unpoat or charge of any nature unloosed by a taxing authority (except such
taxes as are measured by tho or.Ill net m~mo of~ User by the junsdactlon tn wluch the Owner's lending office
is located, all of winch will be for tho account of the User and paid when due by such User)
(h) Interest shall cease to ac, cmo on payments of principal, prenuum, if any, and tnterust on tins
Bond ~ their due dat~ and to tho extent that the Paying Agent (ber~tnafier defined) has received funds for
the tamely payment thereof mac, onrdance w~th the Agreement and the Bond Resolution
(0 In no event shall the interest charged, contracted for or recexved on this Bond. together with all
other costs and considcratxons that constitute interest under apphcable law, exceed the maximum amount
penmtt~l thereunder w~th respect thereto If interest would otherwise be payable to thc Owner m excess of the
mardmum lawful amount., the interest payable to the Owner shall be reduced to the maximum amount permitted
under applicable law, and, if the Owner shall receive anything of value deemed interest by epphcable law m
excess,of the maxamum lawful amount, an amount equal to any excessive interest shall be applied to the reduction
of the principal thereof, or, ~f such excess exceeds the outstanding principal balance thereof, then such excess
shall be refunded to the Paying Agent for the remm to the User (haremafter defined) All sums paid or agreed
to be pard to One Owner for the use, forebearance or dot'"'""~mtton of the indebtedness evidenced thereby, to the extent
pemuRed by law, shall be amortized, prorated, allocated and spread throughout thc full term of this Bond
(j) Notwithstanding the foregoing, under no cu'cumstances shall any payment be required tn
connection ruth flus Bond if such payment would cause interest on flus Bond to exceed the Maxunum Rate
Redeml>tlon Provisions
The principal installments of this Bond are subject to prepayment and redemption only as follows
Surplus Construction Fund Redemption On any Interest Payment Date, the unpaid pnncipal
installments of flus Bond are subject to prepayment or redemption, and may be prepaid or redeemed prior to the
scheduled due dates by the Issuer at tho threctlon of the User, m mvarse chronological order of thctr scheduled
due dates (m amounts not less than all of an unpaid prmmpal installment), at a prepayment or redemption price
equal to the principal amount thereof to be prepaid or redeemed plus accrued interest thereon to the date of
prepayment or redemptaon, voth and to the extent of any surplus funds remaining tn the Construction Fund
(created by the Bond Resolution) after the completion of the Project, as provided and requu:ed by Section 15 of
the Bond Resolution
Ot~t~onalRedemnnon The pnnclpal installments of flus Bond are subject to redemption by the Issuer
at the option and dtrection of the User on any Interest Payment Date m whole or m pan at a redemption price
equal to the pnnclpal amount to be redeemed plus accrued interest to the date of redemption and w~thout
premium, m accordance w~th the following schedule
Annual Principal Cumulative Principal
Dates Amount subject to redemot~on Amotmtsub~ecttoredemvt~on
May 1, 1998 through Apn130, 1999 $200,000 $ 200,000
May 1, 1999 through April 30, 2000 200,000 400,000
May 1, 2000 through April 30, 2001 200,000 600,000
May 1,2001 through April 30, 2002 200,000 800,000
May I, 200,2'through April 30, 2003 200,000 1,000,000
May 1, 2003 through Apn130, 2004 100,000 1,100,000
May 1,2004 through Apn130, 2005 100,000 1,200,000
May 1, 2005 through Apnl 30, 2006 100,000 1,300,000
May 1,2006 through Apn130, 2007 100,000 1,400,000
May 1,2007 through April 30, 2008 100,000 1 500,000
May 1,2008 through April 30, 2009 100,000 1,600,000
May 1, 2009 through April 30, 2010 100,000 1,700,000
May 1,2010 and therealter 50,000 1,750,000
MandatorvRedemonon U~onDetermtnatton o£Taxabtlitv TMS Bond shall be redeemed by the Issuer
before It~ scheduled maturity m whole on the next Interest Payment Date follow~ng the date that the Paying Agent
rcccivca wnttcn notlcc from the Owner, any Former Owner or thc Uscr 0fthe occurrcncc cfa Dctermmation of
Taxability, at a price cqual to the outstanding pnuclpal amount thcrenf plus accrued mterest to the redcmptwn
date
In thc event cfa Determination of Taxabd~ty, the Owner and any Former Owner shall be entitled to
payment fi.om the User of the Taxabdtty Prenuum
Mgt~datorvRedemntionunondlrectionofOwner Tbe pnnclpal installments of this Bond shall be
redeemed before their scheduled due dates m whole or m part by the issuer at the option of the Owner after
written notice g~ven by the Owner to the User stating the following
(a) the date of such redemption, wluch date must,be an Interest Payment Date occurnng
no less than 90 days after the date of such noaee and at least one year after the Dehvety
Date of tins Bond,
(b) the pnnc~pal amount to be redeemed
Order ofPartial Redemntton In the event that less than the entire amount of the outstanding principal
installments of flus Bond ~s to be prepmd and redeemed, the pnnc~pal mstallments berne prepaid shall be applied
m inverse order of the due dates of tho outstanding pnnclpal installments of flus Bond
NotlceofRedemntlonbvPavln~,4gent Tho paying Agent shall give notice by any reasonable meuns
that tho pnnc~pal installments of flus Bond have been called for prepayment and redemption, stating the
redemption price and the redemption date that the pnucipal mstallments of this Bond ceases to bear mterest fi.om
and after tho redemption date if due provlston for the tunely payment of the redemption price ~s made Such
no~tce shall be glvan by f~st class mini no less than 15 days prior to the redemptaon date Any defect m the
redemption notice ~ven by the Paying Agent shall not affect the vahchty of any pruceedmgs for the prepayment
and redompt~on of the pnnc~pal mstellmants of tins Bond
The prmctpal of and interest on flus Bond shall be payable m lawful money of the Umted States of
America, vnthont exchange or collection charges Payments of pnn~pal and mterast shall be made to the
registered owner m unme/hately avadabla funds by Brown Brothers Trust Company (the "Paying Agent" and
"Registrar" for this Bond) or its successor, provided that m the alternative such payment may be made by any
other m0thnd r~nlu~tnd m wn~ng by the registered owner, subject to the approval of the Paying Agent The final
payment of. pnnmpal on flus Bond shall be pa~d only upon surrender of flus Bond to the Paying Agent for
cancellatw/f. Any prepayment or redemption of any pnnapal mstallmantS of flus Bond shall be made only upon
presentation of ~ Bond to the Paying Agent, who shall make notation o/'such prepayment or redemption m the
Prepayment R~ord endorsed hereon
Tbs Bond m dated as of May 1, 1998 and was authonzed and ~ssue, d m the aggregate pnnc~pal amount
of $1,750,000, pursuant to a resolution adopted by the Board of D~rectorS of the Issuer (the "Bond Resolution")
on behalf of ibc City of Denton, Texas TO PAY PART OF THE COST OF ACQUIRING, CONSTRUCTING
AND EQUIPPING OR CAUSING TO BE ACQUIRED, CONSTRUCTED OR EQUIPPED A
MANUFACTURING FACILITY IN THE CITY OF DENTON, TEXAS, FOR MAYDAY
22
MANUFACTURING COMPANY, INC (THE "USER") FOR THE SPECIFIC PURPOSE
MANUFACTURING CLOSE TOLERANCE STRUCTURAL MACHINING COMPONENTS FOR USE IN
THE AEROSPACE INDUSTRY
This Bonds IS ISSUed contemporaneously with the Issuer's $750,000 pnnc~pal amount Revenue Bond
(Mayday Manufactunng Company, Inc ProJect) Sones 1998A, wbach was authorized and issued under the Bond
Resolution
It is hereby certified and covenanted that this Bond has been duly and validly authorized, ~ssued, and
delivered, that all acts, conditions, and things required or proper to be l~erformed, erast, and be done precedent
to or m the authonzataon, issuance, and delivery of this Bond have been performed, exasted, and been done ~n
accordance w~th law, that flus Bond is a special revenue obligation of the Issuer, and that the pnncipal of and
interest on flus Bond are payable fi.om and secured by a first lien on and pledge of the payments designated as
"Installment Loan Payments" to be made or paid, or caused to be made or paid, to the Paying Agent, pursuant
to the Bond Resolution and the Agreement The User is unconditionally obligated to make or pay, or cause to
be made or prod, w~thout set-off, recoupmant, or counterelaun, to the Paying Agent each such Installment Loan
Payment for deposit rote the Debt Service Fund created for the benefit ~)fthe owners of the Bonds by the Bond
Resolution, m aggregate amounts sufficient to pay and redeem, and prox$1de for the payment and redemption of,
the principal of and interest on flus Bond, and to pay all other amounts required by the Agreement and the Bond
Resolution when duo, subject to and as requxred by the provisions of the Agreement and the Bond Resolution
In case an '*Event of Default', as defined m the Bond Resolution, shall occur, thc unpaid principal
mstallmants of this Bond may be declared to be due and payable immediately upon the condmons and m the
manner provided m the Bond Rasolutlon Referance is hereby made to the Bond Resohitlon and the Agreement
for additional provislunS w~th respect to the nature and extent of the security, the rights, duties, and obligations
of the User, the Issuer, the Paying Agent, and the owner of flus Bond, the terms upon which this Bond is issued
and scoured, and the modification of any of the foregoing
The Issuer has reserved the right to amend the Bond Resolution aS provided thereto, and under some (but
not all) ctrcumstanoes amendments thereto must be approved by the Owners of 100% m aggregate pnncipal
amount of tho Bonds then outstanding
The Owner hereof shall never have the right to demand payment of flus obligation out of any funds raised
or to bo rinsed by taxation or from any source whatsoever except the payments and amounts described m flus
Bond, thc Bond Resolution and the Agreement Except for the lien un* and the assignment and pledge of such
property, payments, and amounts, no property of the Issuer is encumbered by any lien or security mterest for the
benefit 0fthe owner of flus Bond Neither the State of Texas, the City of Denton, Texas, nor any other pohttcal
corporation, subdivision, or agency of the State of Texas, nor the Board of D~rcctors of the Issuer, either
mdlvlduall~or collectively, shall be obligated to pay the principal of flus Bond, any premium or payment w~th
respect to this Bond, or tho interest hereon, and neither the faith and credit, nor the taxing power, of the State of
Texas, the City of Denton, Texas, nor any other political corporation; subdivision, or agency of the State of
Texas, is pledged to the payment oftha principal of flus Bond, any premium or payment w~th respect to this
Bond, Or thc interest hereon
This Bond may bo assigned and shall be ~ansferred only on the Bond Registration Books of the Issuer
kept by tiao Paying Agent, as Registrar, upon the terms and conditions set forth m the Bond Resolution and the
Assignment provisions endorsed hereon Such transfers shall be w~thout expense to thc owner hereof, but any
taxes or other governmental charges required to be paid ~th respect to the same shall be paid by thc owner
requesting such transfer as a condmon precedant to thc exercise of such privilege The Paying Agent shall not
be reqmred to make transfers of this Bond w~thm ten (10) days prior to an interest payment date or prepayment
~ ~,,w,~,n,~o~ o m~,.~ ~ 23
or redempUon date or subsequent to the date of madmg of notice of prepayment or redemption of'any pnnmpal
installments of flus Bond, anyflung m tins Bond to the contrary notwithstanding The regmtered owner of flus
Bond may be deemed and treated by the Issuer, the Paying Agent and the User as the absolute owner hereof for
all purposes, including payment and discharge of habthty upon flus Bond to the extent of such payment, and the
Issuer, the Paying Agent, the User, shall not be affected by any notice to the contrary
Tl,as Bond shall not be vahd or become obhgatory for any purpose or be entitled to any security or benefit
under the Bond Resolutaon until the Comp~'oller's Regmtrat~on Certificate hereon shall have been signed by the
Comptroller of Pubhc Accounts and the Delivery Certificate hereon shall have been completed
IN WITNESS WHEREOF, flus Bond has been signed w~th the manual or facsmule mgnatures of the
Premdent and the Secretary of the Board of Ehreetors of the Issuer, and the officml seal of the Issuer has been duly
impressed, or placed m facsamle, on flus Bond
Secretary, Pres~dant,
Board Of D~rectors Board of D~rectors
(ISSL~R'S SEAL)
(FORM OF STATE COMPTROLLER'S CERTIFICATE FOR BOND)
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I HEREBY CERTIFY that there is on file and of record m my o~ce a certificate of the Attomey General
of the S~te of Texas to the effect that flus bond has been examined by hun as requtred by law, and that he £mds
that ,t tlas been ~ssued m conforrmty with the Constaut,on and laws of the State of Texas, and that it is a valid
and binding special obligation of the City of Denton Industrial Development Authority and said bond has flus
day bean reg~atered by me
WITNESS my signature and seal flus
Comptroller of Public Accounts of
the State of Texas
(SEAL)
[FORM OF ASSIGNMENT]
, For value received, the undersigned hereby sells, assigns and transfers unto the
within Bond, and does hereby n'revocably constitute and appoint , attorney to transfer
such BOnd on the books kept for roglSlratlon and U'ansfer of thc within Bond, with full power of substitution ~n
thc premises
Dated
NOTE The signature to tins Assignment must correspond w~th the
name as it appears upon the face of the ~thm Bond m every
particular, w~thout enlargement or alteration or any change
whatsoever
Signature guaranteed by
NOTE Signature(s) must be guaranteed by an "ehgible guarantor
mst~tut~on" meeting the reqmrements of the Paying AgentfReg~strar,
which reqmrements mcluds memberstup or participation m STAMP or
such other "signature guaranty program" as may be determined by the
Trustee m addition to or m substitution for STAMP, all m accordance
w~th the Securities Exchange Act of 1934, as amended
FORM OF DELIVERY CERTIFICATE
DELIVERY CERTIFICATE
THIS BOND was dehvered to and prod for by the purchaser hereof on
FORM QF pREPAYMENT RECORD
PREPAYMENT RECORD
Date Pnn¢lpal Remaining Name & Title of Signature of
of Prepaymant or Principal Authorized Officer Authorized
Payment Redemnt~on Balance Mahng Entry Officer
Se~aun 6 PLEDGE The Bonds and the mtsrest thereon are and shall be payable fi.om and secured by
a ftrst he~on end plodgo of (a) the payments designated as Installment Loen Payments to be made or paid, or
caused to be m.._.~_ or paid, to the Paying Agent by the User, pursuent and subject to the terms and provisions of
tbs Bond Resolutton end the Agreement end (b) the moneys on deposit m the Debt Service Reserve Fund and
the Constnl~on Fund eatabhsbed hereunder, and the Installment Loan Payments are further pledged trrevocably
to the establishment end maintenance of the Debt Service Fund hereinafter created
Seet~un 7 DEBT SERVICE FUND (a) Establishment of Debt Service Fund A separate and special
fund to be designated end known as the "Debt Serwce Fund** shall be established by the Issuer vnth the Paying
Agent for the benefit of the owner of the Bonds pursuent to the Agreement and mamtamed as provided m tlus
Bond Resolutaon as long as the Bonds, or mterest thereon, Is outstendmg end unpaid
(b) Intentionally Omitted
(c) Installment Lqon Payments The User shall make or pay, or cause to be made or pa~d, to the
Paying Agent, wluch shall deposit rote the Debt Serwce Fund, Installment Loan Payments as follows
(I) On or before each interest payment date as provided m each FORM OF BOND set forth ~n
Section 5, an amount which, together ~th any other amounts then on deposit there~n and
available for such purpose, vail be sufficient to pay the ~nterest coming due on the respective
Bond on each interest payment date, and
(2) On or before each principal payment date as pmwded in Section 2 and tn each FORM OF
BOND set forth m Seenon 5, an amount wtaclg together w~th any other amounts then on deposit
thereto and available for such purpose, will be sufficient to pay the pnncipal of the respective
Bond scheduled to be pa~d on each principal payment date, and
(3) On or before any optional or mandatory prepayment or redemptmn date as penmtted or reqtared
m each FORM OF BOND set forth m Sectaon 5, an amount which, together unth any other
amounts then on dapos~t and evmlable for such purpose, wdl be sufficient to pay the prepayment
or redemption pnee (mcludmg any agreed hqtudated damages) specified therem, and
(4) On any date on wluch the Bonds am declared to be unme&ately due and payable pursuant to flus
Bond Resolution, an amount wluch, together vnth any other amounts then on dapos~t and
evadable for such purpose, will be sufficient to pay the pnnelpal of the Bonds then outstanding
and the mtarest accrued thereon to such date, and
(5) Promptly aRer receipt of each statement and request for payment, an amount equal to the
charges of the Paying Agent for performing the duties of Paying Agent and Registrar
In the event the User should fad to make or pay, or cause to be made or paid, any of the reqmred Installment Loan
Payments set forth m flus Section, each such requtred payment shall eontmue as an obhgat~on of the User until
fully p~tld, and the User agrees to pay the same to the Paying Agent, for the benefit of the owner of the Bonds,
w~th mterast thereon, to the extent legally penmssthle, at the rate of mterast borne by the Bonds, bom the date
any such payment was due until payment thereof
(d) Redamnt~on~ The Bonds untaally authorized hereby shall be subject to redemptton, end may or
shall be redeemed, as specified m the FORMS OF BOND set forth m Section 5
(e) P~vraants from Debt gervlce Fund Except as otherwise specifically provided m flus Bond
Resolu~on, the Debt Ser~ce Fuml shah be used by the Paying Agent only to pay the pnncipal of, and prepayment
or redempt~un prermung ~f any, agreed hquldated damages, if any, and mterest on the Bonds, when due, and the
charges 07 the Regts~ar, and Paying Agent, and the Paying Agent shall pay out of the Debt Service Fund the
amounts requrred to pay or redeem the principal of end mterast on the Bonds when due, and the Payang Agent
shall make all other payments as reqmred by flus Bond Resolution
(f) Investment of Funds Any money held as part of the Debt Service Fund shall be invested or
ramvested by the Paying Agent, upon the written dn~eaun oftbe Approving Officer, m any obhgations, including
eertrfieatas of deposit of the Paying Agent The Paying Agent shall make no mvestments except as specifically
d~rected by the Approvmg Officer Tho investments of the Debt Service Fund shall be deemed to be a part of
such Fund, and, for the purpose of determining the amount of money m such Fund, such investments shall be
valuedl at thetr market value The income and profits, including reahzed d~scount on obhgatmns purchased,
received from such ~nvestments shall be depomed m or credited to the applicable fund, and any losses on
~nvesU~ents thereon shall be charged against the apphcable fund If at any t~me It shall become necessary that
some or all of the investments made wth the moneys from the Debt Service Fund be redeemed or sold to raise
moneys necessary to comply wdh the prowsioes ofttus Bond Resolution, the Paying Agent shall, w~thont further
authorization, effect such redemption or sale, employing, m the case of a sale, any commercially reasonable
method of effecUng the same The Paying Agant shall not be hable or responsible for any loss resulting from any
such tnveslraent or resulting from the redemption or sale of any such investment as herein authorized, except that
the Paying Agent shall be hable for (1) any loss resulting from its willful or neghgant failure, w~thm a reasonable
tune afl. er receiving the written da'ect~on from the Approving Officer to make, redeem, or sell any investment in
the manner prowded for berem, and (2) except for any redemption or sale made pursuant to the next preeedmg
sentence oftlus paragraph, for any loss resul~ng from the malang, redeeming, or selling of any investment wluch
was not authorized by written dmx:t~on of the Approving Officer If the Paying Agent is unable, af'~er reasonable
effort and w~thm a reasonable t~me, to make, redeem, or sell any such investment, ~t shall so not~fy m writing the
Approving Officer and thereafter tho Paying Agent shall be relieved of all msponslblbty w~th respect thereto
In the event of any such loss, the User shall make addmonal deposits to restore same if and to the extent required
to enable the Paying Agent to make all payments requu*,d to be made from the applicable fund
(g) Inmae&atelv Ayaflable Fgnds The User shall make all Installmant Loan Payments m funds that
will be munexhately available and allow the Paying Agent to pay, m lawful money of the Umted States of
America, the principal, interest, and other amounts w~th respect to the Bonds, when due
Sest~on 8 THE USER'S PAYMENTS (a) Uncondmonal Obh~,ation The User has covenanted m the
Agreemant, and, by tho approval of flus Bond Resolution contained m the Agreement, the User further has
unconditionally obhgated itself and agreed, regardless of and notwithstanding any provisions of the Agreement,
and regardless of the provisions of any other agreement or contract to the contrary, to make or pay, or cause to
be made or paid, vothout set-off, recoupmant, or countemlatm, the Installment Loan Payments to the Paying
Agent tn tho amounts requn'ed by SesUon 7(c) to be made rote the Debt Service Fund, and to make such payments
on or b,fore the dates specified m flus Bond Resolution, and smd payments by the User shall be and constitute
the Inset Loan Payments as contemplated and reqmred by the Agreement The Bondholder Is and shall be
entitled to rely unconthtlonally on the agreements, covenants, and representations set forth m flus Bond
Resolution
Co) Prenavments It is further understood that the User may prepay all or any part of each
Installment Loan Payment m accordance w~hh the terms of tho Bonds, and any such prepayment, and any earnings
thereon, shall be apphed by the Paying Agant to the payment of each Installment Loan Payment, provided that
the prepayment or redemptJun at any tune of any unpmd principal installments of the Bonds prior to their due
d~t~, w~th funds from any source (whether from Installment Loan Payments or othemase), shall not relieve the
User of its obhgaUon to make or pay, or cause to be made or paid, each Installment Loan Payment as specified
m Section 10(a), when due w~th respect to any remaining unpmd principal mstallmants of such Bond
S~ct~on 9 NO ADDITIONAL BONDS No ad&t~onal bonds shall be ~ssued under flus Bond
Resolution
Section 10 SPECIAL COVENANTS The Issuer further covenants as follows
(a) ].~tallment Loan Pevments Pledaed to Bonds Only Other than for the payment of the Bonds,
as provided m th~s Bond Re~olut~un, the Installment Loan Payments have not m any manner been pledged to the
payment of any debt or obligation of the Issuer,
(b) Non-Encumbrance Wlule the Bonds are outstanding, the Issuer wdl not (except w~th respect
to the Bonds and ~xcept a~ prowded m the Agreement or flus Bond Resolutton) m any manner whatsoever create,
assume, or suffer to exist, directly or mda'ectly, any mortgage, lien, encumbrance, pledge, or charge against the
Debt Serwee Fund, the Installment Loan Payments, the Construction Fund, or any property or moneys deposited
with the Paying Agent,
(c) Performance by Issuer The Issuer will carry out all of its covenants and obhgat~ons under th~s
Bond Resolution, and the Issuer may be reqmred to carry out such covenants and obligations by all legal and
equitable means, including, but w~thout lumtation, actions for specific performance and the use and filing of
mandamus proceedings, m any com-t of competent junsdmtion, against the Issuer, its Board of Directors, and its
officials and employees, and
(d) Certain Mod~fications Prolubltod The Issuer covenants and agrees that it uall not execute or
permit tho execution of any contract or agreement, or terminate or amend the Agreement, m any manner that
would reheve or abrogate the obligations of the User to make or pay, or cause to be made or paid, when due, all
Installment Loan Payments, m the manner and to the extent required by the Agreement and flus Bond R~solut~on,
or which would change or affect Sections 4 04, 4 05, 4 06, 4 07, 6 01 and 6 02 of the Agreement vnthout the
written consent of all of the Bondholders
Section 11 BOND IS A SPECIAL OBLIGATION The Bonds are and shall be special revenue
obligations of the Issuer payable solely fi.om payments to be made under the Agreement and tins Bond
ResoluUun, and the Bondholders shall n~wr have the right to demand payment thereof or the interest thereon out
of funds nus~d or to be ralsext by taxation, or fi'om any source whatsoever other than the foregoing The Bonds
are not and shall never be considered obhgat~ons of the State of Texa~, the Governmental Umt, or any other
polmcal sub&wlon or agency of the St.to of Texas, or of the Board of D~rectors of the Issuer, either md~vdually
or collectively
Section 12 AMENDMENTS (a) Without Consent of Bondholder The Issuer and the Paying Agent
may amend or supplament flus Bond R.~solutaon or the Bonds mthout notice to or consent of any Bondholder
(0 to cure any umbignaty, inconsistency or formal defect or onussion,
(n) to grant to the Issuer for the benefit of the Bondholders ad&ttonal rights, remedies, powers or
authority,
to subject to tim Bond Resolution adchuonal collateral or to add other agrenments of the Issuer,
0v) to mnd~fy tins Bond Resolution or the Bonds to penmt the qunhficatton of the Bonds for sale
under the securities laws of any state of the Umtod States,
to exadence the succ~slon of a new Paying Agent, or
(v0 to make any change that does not materially adversely affect the rights of any Bondholder
Co) With Consent of Bondholder Unless an amendment of or supplement to flus Bond Resolution
or the Bonds w~thout any consent of Bondholders is pemutted by the precodm§ subsection, the Issuer and the
Paying Agent may enter into such amandment or supplement only w~th the consent of the holders of 100% m
pnncipal amount of the Bonds then outstanding
(c) Effect of Consents After an amendment or supplement becomes effective, it vail bind every
Bondholder unless it makes a change described m any of the lettered clauses of the preceding subsect,on In that
case, the amendment or supplement will bmd each Bondholder who consented to it and each subsequent holder
of the Bond or portion of the Bond evidencing the same debt as the consenting holder's Bond
(d) Notation on or Exchanae of Bonds If an amendment or supplement changes the terms of the
Bonds, the Paying Agent may require the Bondholder to deliver its Bonds to the Paying Agent The Paying Agent
may place an appropriate notat,on on the Bonds about the changed terms and return it to the holder
(e) User Consent Relt!a,red An amendment or supplement to this Bond Resolution or the Bonds
shall not become effective unless the User shall deliver to the Paying Agent its written consent to the amendment
or supplement The User shall be deemed to have consented lf~t shall fail to deliver a written obJect,on to the
Paying Agent vatlun 30 days aiter receipt by the User of a proposed form of an amendment or supplement
(f) NoUee to Bondholder The Paying Agent shall cause not~ce of the execution of each supplement
or amendment to tins Bond Resoluuon or the Agreement to be mailed to the Bondholder The notice shall, at the
opUon of the Paying Agent, either (0 briefly state the nature of the amendment or supplement and that cop,es of
it are on file vath the Paying Agent for inspection by Bondholder or (u) enclose a copy of such amendment or
supplement
Seeuon 13 AMENDMENT TO AGREEMENT (a) Without ¢onsen~ of B0ndholder The Issuer may
enter mto any amendment of or supplement to the Agreement vathout notice to or consent of any Bondholder,
if the amendment or supplement is 0) required or permitted by the provisions of the Agreement or flus Bond
Resolution, (n) to cure any ambiguity, inconsistency or formal defect or omission, (iii) m connection vath any
authorized amendment of or supplement to flus Bond ResoluUon, (iv) to make any change that does not materially
adversely affect the rights of any Bondholder, or (v) to amend the descnptinn of the Project, provided the Issuer
is provided an opinion of Bond Counsel to the effect that such amendment wall not adversely affect the
excludability from gross income of interest on the Bonds for federal income tax purposes
(b) W~th Consent of Bondholder Unless an amendment of or supplement to the Agreement vathout
any consent of Bondholders is perrmtted by the foregoing subsection, the Issuer may enter rotc such amendment
or supplement only vath the consent of 100% m prmcipal amount of the Bonds then outstanding However,
vathout the consent ofcach Bondholder affected, no amendment or supplement may result m anything described
m the lettered clauses of Section 13(b)
Section 14 CONSTRUCTION FUND (a) Payments into Construction Fund. D~sbursements
Proceeds ofthe msuance and dehvety of the Bonds shall be deposited m the Consiructinn Fund Moneys m the
Construction Fund shall be expended upon receipt of a requisition certificate signed by an Approving Officer
stating vath respect to each payment to be made
(l~ The requisition number,
(Ii) The name and address of the person, finn or corporation to whom payment is due or has been
made, which may mclnde the User,
(In) The amount to be or which has been paid,
Ov) That each obligation mentioned therein has been properly recurred, is a proper charge against
the Construction Fund and has not been the has,s of any previous requisition,
(v) That each ,rem for which payment is proposed to be made is or was necessary m connection with
the Project,
(v0 That after tahng into aeeoant the costs proposed to be paid or reunbursed m sa,d certificate, at
least 9~% of the costs prod or re,mbursed out of the Construct,on Fund are amounts which will be chargeable to
the Project's capital account or which would be so chargeable vnth a proper election by the User under the Code,
(vii) That the costs of issuing the Bonds (including any underwnter's compensation, whether paid by
fee or dascoun0 which are financed w~th proceeds oftha Bonds will not exceed an amount equal to 2 percent of
the proceeds reeeaved from the sale of the Bonds Such amounts will not be taken into account tn saUsfymg the
reqturement stated above that at least 9.$ percent of the Bond proceeds be used to prowde the facilities, and
(yin) That no Event of Default exists under ttns Bond Resolution or the Agreement
The Paying Agent Is hereby anthonzed and directed to make each cl,sbursement requtred by the
provisions of the A~eernent and to issue its cheeks therefor The Paying Agent shall keep and mamtam adequate
records pertaining to the Construction Fund and all disbursements therefrom, and afl:er the Project has been
completed and a cemfleate of payment of all costs Is or has been filed, the Paying Agent shall file a statement
thereof vnth the Issuer and the User
(b) Investment of Money m Construetmn Fund Any money held as part of the Construction Fund,
other than the amounts described m Sectaon 17(a), shall be mvested or reinvested by the Paying Agent upon the
wntten,d~caon of the Approving Officer m any obhgalions, including cemfieates of deposit The Paying Agent
shall make no mveetments except as specifically d~reetod m writing by the Approvmg Officer The investments
of the Constructton Fund shall be deemed to be a part of the Construction Fund, and for the purpose of
detenmmng the amount of money m the Construction Fund, such investments shall be valued at theu' cost or
market,value, whichever ~s lower The income and profits, mdudmg realized chscount on obligations purchased,
received from such mvastments shall be deposit~d m or credited to the Construction Fund, and any losses on
investments shall be charged against the Construct, on Fund Upon the written du'eetlon of the Approving Officer
the Paying Agent shall redeem or sell all or any designated part of such mvesmaents employing, m the case of a
sale, any commercially reasonable method of effeetmg the same The Paying Agent shall not be hable or
mspoosible for any loss resulting from the redempuon or sale of any such investment as harem anthonzed, except
that (notvnthstandmg any provisions of the Agreement) the Paying Agent shall be liable for (1) any loss
reanltm$ from its willful or negligent failure, w~thm a reasonable tune after receiving the written dn'ectlon from
the Approving Officer, to make, redeem, or sell any mvestmant m the manner provided for harem, and (2) any
loss resulting from the making, redeeming, or selling of any investment wluch was not anthonzed by written
dlreetaon of tha Approving Oflker If the paying Agent is unable, after reasonable effort and vnttun a reasonable
tame after ree~pt of the requared written dm~aon, to make, redeem, or sell any such mvestmant, ~t shall so noufy
m wnt~lg the Approving Officer, and thereupon the Paying Agent shall be relieved of all liability or responsibility
vnth resp~e. ~ thereto
(c) ~ The Paying Agent may rely fully on any such request and certificate
dehver~l pursuant to tbs Section and shall not be requund to make any mvcstagatlon m counect,on therewith
If amounts paid by the Paying Agent w~th respect to any portion of the ProJect should exceed the cost thereof,
the User shall promptly repay such overpayment to the Paying Agent for deposit into the Construction Fund
See/aon 1.$ SURPLUS CONSTRUCTION FUNDS (a) D~s_nosmon of SurDlus Funds The completion
of the Project shall be eonaluslvely evidenced, and the da~ of compleUon shall be established by, a written
eemfleate of completaon to be signed by the Approving Offlcor and delivered to the Paying Agent immedmtely
upon eompletlun of the Project If, upon the completaen of the Project, there shall be any surplus funds remaining
m the Construction Fund not requtred to provide for the payment of the Cost of the Project, or if any funds are
on hand m the Construction Fund at the tune of tho release of this Bond Resolution under the terms thereof, then
any such funds shall be used mamediately to prepay or redeem pnncipal mstallments of the Bonds, m inverse
chrondlog:eal order, m the manner set forth m the FORMS OF BOND m Section 5 for the prepayment or
redempUen ofpnnclpal installments of the Bonds w~th surplus Consa'uction Fund moneys, to the extent of any
such available funds, provided that prior to such use, the Issuer and the Paying Agent shall have been furmshed
w~th a~ unquahfied opunon of Bond Counsel to fl~e effect that the use of moneys from the Construction Fund for
such purpose will be lawful and will not mapa~r the exemption of interest on the Bonds from federal raceme
taxation, and prowded, further, that the User shall deposit rote the Construction Fund prior to such prepayment
or rede~npUon an amount sul~clent to cause the total amount m the Constructmn Fund to be equal to not less than
all of the unpaid pnneipal installment or mstallments to be prepaid or redeemed
(b) D~s~osit~on of Constru~on Fund unon Acceleration and Redemption If the Paying Agent shall
declarelthe principal of the Bonds and the interest aeemed thereon unmed~ately due and payable as the result of
an Event of Default specified m tins Bond Resolution, or If the Bonds are optionally or mandatorily prepaid or
redeemed prior to maturity as a whole m aceordanee wath their te.,,s, any amounts remaumag m the Const~'uetion
Fund shall be used unm~ately by the Paying Agent for the purpose of paying principal of, redemptaon prenuum,
if any, ~greed hqmdated damages, if any, and interest on the Bonds when due
Section 16 DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS (a)
R~lecement Bonds In the event uny outstanding Bond authorized hereby is damaged, mutdated, lost, stolen,
or destroyed, the Issuer shall execute, and the Paying Agent shall authenticate, a new bond of the same pnnelpal
amount, and maturity of the damaged, mutilated, lost, stolen, or destroyed Bond m exchange and subsumtlon for
such Bond or m hen of and subst~tution for such Bond
(b) Anohcatmn for Subsutute Bg~ Application for exchange and substitution of any damaged,
muulated, lost, stolen, or destroyed Bond shall be made to the Issuer In every case, the applicant for a substitute
bond shall funush to the Issuer and to the Paying Agent such secunF or mdemmty as may be required by them
to save each of them harmless In every case of loss, theft, or destruction of a Bond, the applicant shall also
furmsh to the Issuer and to the ?aymg Agent evidence to thetr satasfection of the loss, theft, or destruction, and
of the oWnerstup of such Bond In every case of damage or mutilation of a Bond, the appheant shall surrender
the Bond so damaged or mutilated
(c) No Default Occurred Notvnthstandmg the foregoing provisions of flus Section, m the event
any such Bond shall have matured, and no default has occurred wluch is then continuing m the payment of the
principal of, redempUon prermum, ~f any, agreed hqmdated damages, if any, or mterest on the Bond, the Issuer
may authonze the payment of the same (w~thout surrender thereof except m the case of a damaged or mutilated
Bond) instead of msumg a sub~tute Bond, provided security or mdemmty is furmshed as above provided m this
Seet~onl
(d) Chanm for Isanm~ Substitute Bond Prior to the ~ssuanee of any substitute bond, the Issuer and
the Paying Agent may eha~e the owner of sunh Bond w~th all legal, prmtmg, and other expenses m counectlon
therewith Eve~ substitute bond issued pursuant to the provisions of tlus Section by vu'tue of the fact that any
Bond i~ lost, stolen, or dustroyed shall eon~utute a contractual obhgat~on of the Issuer whether or not the lost,
stolen. Or de~oyed Bond shall be found at any tame, or be enforceable by anyone, and shall be entitled to all the
benefitsloftlus Bond Resolution equally and proportionately w~th any and all other Bond duly issued under tins
Bond Reeolut~on
(e) A~thontv for Issumu Substitute Bonds Tins Bond Resolutmn shall constitute sufficient
authority for the issuance of any such subsatute bonds w~thout necessity of further action by the Board of
Directors of the Issuer or any other body or person, and the issuance of such substitute bonds ts hereby
anthonzed, notvothstandmg any other provisions of tins Bond Resolution, except to the extent otheo, v~se requu'ed
by law
Section 17 REBATE FUND (a) A special Rebate Fund is hereby established by the Issuer The
Rebate Fund shall be for the sole benefit of the United States of America and shall not be subject to the claim of
any other person, including w~thout huntation the bondholders The Rebate Fund is established for the purpose
ofcomplymgvnth Section 145 of the Code and the Treasury Regulations promulgated pursuant thereto The
money deposited m the Rebate Fund, together vath all mvemments thereof and investment income therefrom, shall
be held in trust and applied solely as provided in ttus section The Rebate Fund is not subject to the lien and
pledge oftlus Bond Resolution Notwithstanding the foregoing, the Paying Agent w~th respect to the Rebate
Fund is afforded all the rights, protections and unmumties othervnse accorded to it hereunder
(b) Wltlun ten days after the close of each fifth anmversary date of the issuance of the Bonds, the
Paying Agent shall receive from the User a computation m the form of a certificate of an anthonzed officer of
the User of the amount of"Excess Earnings," fi.any) for the period beginning on the date of delivery of the Bonds
and ending at the close of such unmed~ately preceding "Bond Year" and the User shall pay to the Paying Agent
for deposit rote the Rebate Fund an amount equal to the difference, if any, between the amount then m the Rebate
Fund and the Excess Earnings so computed The term "Bond Year" means w~th respect to the Bonds each
one-year period ending on the anmversary of the date of delivery of the Bonds or such other period as may be
elected by the Issuer m accordance w~th the RegulaUons and noUce of wtuch election has been g~ven to the Paying
Agent If, at the close of any Bond Year, the amount m the Rebate Fund exceeds the amount that would be
requLred to be prod to the Umted States of America under paragraph (d) below fi.the Bonds had been paid m full,
such excess may be mmsfen~d from the Rebate Fund and paid to the User at the written instructions of the User,
and the User shall use such excess for such purposes for wluch, or to be redeposited to such fund from wluch,
such amounts were ongmally derived
(c) In general, "Excess Earnings" for any period of tune means the sum of
(,) the excess or--
(A) the aggregate amount earned dunng such period of trine on all "Nonpurpose
Investraants" (including gains on the chsposltion of such Obligations) m wbach "Gross
Proceeds" of the issue are invested (other than amounts atmbutable to an excess described in
tins subparagraph (c)O), over
(13) the amount that would have been earned during such period of tune if the
"Yield" on such Nonpurpose Investments (other than amounts atmbutable to an excess
described m tlus subparagraph (c)(O) had been equal to the y~eld on the msue, plus
(u) any raceme dunng such period of tune atmbutable to the excess descnbed m
subparagraph (c)(i) above
Tho term Nunpurpose Investments, Gross Proceeds, and Yield shall have the meanings g~ven to such
terms m Section 148 of the Code and the Regulations promulgated pursuant to such Section
(d) The Paying Agent shall pay to thc Umted States of America at least once every five years, to the
extent flult funds are avadable m the Rebate Fund or otherwise provided by the User, an amount that ensures that
at least 90 percent of thc Excess Eanungs from thc dete of dehvery of thc Bonds to thc close of thc period for
which thc payment is being made w~ll have been paid The Paying Agent shall pay to thc Umted States of
America not later than 60 days alter the Bonds have been paid m ~11, to the extent that funds are available m the
Rebatc Fund or othcvense prowded by the User, 100 pcreent of the amount then reqmred to be pa~d under Section
148(f) of the Code as a result of Excess Earnings
(e) The amounts to be computed, pad, deposited or d~sbursed under flus section shall be determined
by the User acting on behalf of the Issuer vnthm ten days after each fifth anmversary of the issuance of the Bond
By such date, the User shall also noufy, m writing, the Paying Agent and the Issuer of the determinations the User
has made and the payment to be made pursuant to the provisions of flus section Upon written request of the
registered owner oftbe Bonds, the User shall furmsh to any regastered owner of the Bond a certificate (supported
by reasonable documentation, which may mclude calculation by Tax Counsel or by some other service
orgamzaaon) shove, rig comphanee w~th flus section and other apphcable prows~ons of Section 148 of the Code
(f) The Paying Agent shall maintain a record of the periodic determinations by the User of the
Excess Earnings for a period begummg on the fifth anmversary date of the ~ssuanue of the Bond and ending on
the date sm years after the final reta'ement of the Bonds Such records shall state each such anmversary date and
summarize the manner m winch the Excess Earnings, if any, was determined Tlus provision shall not be
applicable ~f all "Cross Proceeds" of the Bond ~s expended w~flun 180 days of the date of the delivery of the
appheable series or issue of the Bonds
(g) If the Paying Agent shall declare the pnnclpal of the Bonds and the interest accrued thereon
mune&ately due and payable as the result of an Event of Default spectfied m the Bond Resolution, or ~f the Bonds
are optmnally or raandatonly prepaid or redeemed pnur to maturity as a whole m accordance vnth their terms,
any amount remaining m uny of the funds established under tins Bond Resolution shall be transferred to the
Rebate Fund at the written instructions of the User, to the extent that the amount m the Rebate Fund is less than
the Excess Earnings computed by the User as of the date of such acceleration or redemptmn, and the balance of
such amount shall be used munedlately by the Paying Agent for the purpose of paying principal of, redemption
premium, ff any, and mterest on the Bonds when due In furtherance of such retention, the Issuer hereby
authorizes and du'ects ~ts President to execute any doeumants, certificates or reports requu'ed by the Code and
to make sunh elections, on behalf of the Issuer, winch may be perrmtted by the Code as are consistent vath the
purpose for the issuance of the Bonds
Section 18 SALE OF THB BONDS At thc specific request of thc User, thc Bonds are hereby
authorized to be sold, and shall be delivered to, Brown Brothers Harrunan & Co for the pnee of par
Seetmn 19 EVENTS OF DEFAULT (a) Events of Default Any one or more of the following events
shall consmute and beremafter shall be called an "Event of Default"
(l) the failure by th~ Issuer to make due and punctual payment of principal of, redemption
pr, emmm, if any, and interest on any Bond, whether payment is required at maturity or by call for
rederapt~on or othervnse, prowded, however, that ff such failure shall arise other than by reason of a
default by the User under this Bond Resolution and the Agreement, the contmuatmn of such failure for
two days
(2) the failure of the User to make or pay, or cause to be mede ur p~ud, any Installment Loen
Payment, or any part thereof, when and to thc extent due and reqmred by thc Agreement or flus Bond
Resolutaon
(3) the filing by the User of a voluntary petition in bankruptcy or failure by the User
promptly to lift or suspend any execution, garnishment, or attachment of such consequence as will
materially unpa~r ~ts ainhty to cm'y out its obligations under the Agreement or flus Bond Resolution, or
the commiss~on by the User of any act of bankruptcy, or failure of the User generally to pay its debts as
they become due, or entry of an order for relief of the User ~n a bankruptcy case of the User or
assignment by the User of a substantial port~on of its assets for the benefit of its creditors, or the entry
by the User ~nto an agreement of composition w~th its creditors, or the entry of an order or decree
apphcable to the User m any proceeding for its reorganization or arrangement m any proceedings
instituted under the provisions of any applicable federal or state bankruptcy statutes, including the
federal Bankruptcy Code, as they now erast or are hereafter amended or enacted
(4) the User defaulting m the observan~ or performance of any other of its covenants,
condmons, or obligations in the Bonds, the Agroomant or flus Bond Resolution, and the User not
remedying such default wiflun 60 days after written notice to do so has been received by the User from
any owner oft,he Bonds,
(5) receipt by the Paying Agent of wnttan notlco from any Bondholder that an Event of
Dofanlt has occurred and is continuing under the User Documents
(b) D~claration of Pnncmal and Interest Due Upon the happeumg of an Event of Default, the
owne~ of 100% m aggregate pnnapal amount of tho Bond then outstanding may decler¢ and directly accelerate
the pnnclpal of the Bonds then outstanding and the interest accrued thereon m'~medmtely due and payable, and
such pnnclpal and mter~st, together ~nth any applicable agreed hqu~dated damages, and any applicable
redamptlon premium, and any other amounts then due, shall thereupon become and be nrunechately due and
payable, anything m the Bond, the Agreement or flus Bond Resolution to the contrary notwithstanding
(c) An~hcation of Moneys All money collected by the Paying Agent pursuant to the exercise of
the rem~hea and powers provided m flus Amcle, together with all other sums which then may be held under any
provision of this Bond Resolution as security for the Bond, shall be applied as follows
FIRST to the payment of matured interest on the Bonds, including, to the extent legally
pemussthle, interest thereon at the rate borne by the Bonds from due date to date of payment
SECOND to the payment of pnnclpal of, redemption prenuum, if any, and agreed liquidated
damages, if any, on uny Bond which has b~n called for redemption as pcmutted or reqmred by flus
Bond Re~oluuon or have n~tured as provided thereby, and interest thereon, to the extent legally
p~'n'~sthle, at tho r~te borne by such Bond from the date of redemption or matunty to date of payment
~- - THIRD to the paymant of pnnclpal of the Bonds winch has become due by vmue of the
dscleraUon pursuant to flus Section 19, and interest thercon, to the extent legally pcmussthle, at the rate
borne by tho Bonds from the d~te d~clared due to date of payment
FOURTH to the payment of the surplus, if any, to whomsoever may be lawfully entitled to
receive the same, or as a court of competent junsd~ction may direct
Ifm malong dlstnbutlon pursuant to the order above stated, thc amount available for distribution m a particular
classification shall bo msufficiant to pay in full all of thc ~tems in such class~fication, thc amount available for
d~stnbut~on to items m such classification shall be prorated among such ~tems m the proportion that thc amount
each ~tem boars to the total of all such items
Sectaon20 LOAN AGREEMENT The Presldent ofthe Board is hereby authonzed and directed, for
and on behalf of the Issuer, to date, sign and otherwise execute the Loan Agreement between City of Denton
Industrial Development Authority and Mayday Manufacturing Company, Inc" (the "Agreement") in substantially
the form and substance attached to this Resolution and made a part hereof for all purposes, and the Secretary of
the Board is hereby authorized and directed, for and on behalf of the Issuer to sign, attest, and affix the seal of
the Issuer to, the Agreement Upon execution by the parties thereto the Agreement shall be binding upon the
Issuer m accordance w~th its terms and provisions
Section 21 THE PROJECT The Project to be financed pursuant to the Agreement is described in
Exhibit A to the Agreement and such description is adopted as part of tlus Resolution
Section 22 FINDINGS Based solely on representations made to the Board by the User, it appears and
the Board hereby finds that (0 the Project is suitable for the promotion of manufactunng development and
expansion, (u) the Project will have a direct, positive, and favorable impact on employment in the Governmental
Unit, and (lU) that the Project is m furtherance of the public purposes as set forth in the Act
Section 23 TAX-EXEMPT STATUS OF BOND The Issuer and the Paying Agent each covenant to
commit or suffer no act w~thm their control that would alter the status or character of the Bond, or the interest
to be paid on the Bond, for purposes of federal income taxation The provisions of tlus Section shall apply to
the Paymg Agent only to the extent that the Paying Agent is acting hereunder m ~ts sole discretion
Notw~thstendmg the foregoing, the Issuer shall have no obligation under this Section wRh respect to any action
0) assigned herein to the Paymg Agent or (ii) not othervwse specified m this Bond Resolution or the Agreement
unless It has received written instructions vath respect to such action from the User or the Paying Agent and an
mdemmty satisfactory to it, if reasonably requested
e ~eo~,n,daa',o:'~ 0 rn,,~ n~ 35
LOAN AGREEMENT
BETWEEN
CITY OF DENTON INDUSTRIAL DEVELOPMENT AUTHORITY
AND
MAYDAY MANUFACTURING COMPANY, INC
Dated as of May 1, 1998
BRIZ 04/08/98
TABLE OF CONTENTS
(The Table of Contents ~s not a part of the Loan Agreement but IS for convemence of reference only )
PAGE
Parties
ARTICLE I
DEFINITIONS, GENERAL RECITALS, FINDINGS, AND REPRESENTATIONS
Section 1 01 Defmmons
Section 1 02 General Recitals, Findings, and Representations
ARTICLE II
THE PROJECT
Section, 2 01 Approvals and Pernuts
Section 2 02 Acqmsmon and Construction
ARTICLE III
FINANCING THE PROJECT, TITLE AND OPERATION
Scctaon 3 O1 The Loan
Section 3 02 Security for the Loan
Section 3 03 Repayment of Loan
Section 3 04 Title
Section 3 05 Operation
Section, 3 06 Indemmties
Section 3 07 Issuer's Lnmted Liability
ARTICLE IV
THE BONDS
Section 4 01 Issuance of Bonds
Section 4 02 Refunding of Bonds
Section 4 03 Redemption of Bonds
Secuon 4 04 Installment Loan Payments
PAGE
Section 4 05 No Arbitrage
Secuon 4 06 Representations and Warrant~es Relating to
Tax-Exempt Status of Bonds
Section 4 07 General Tax Covenants
ARTICLE V
COVENANTS AND REMEDIES
Section 5 01 Covenant
Section 5 02 Remedies
Section 5 03 General Provisions
SecUon 5 04 Amendment of Agreement
ARTICLE VI
SPECIAL COVENANTS
Section 6 01 Existence
Section 6 02 Assignment
SecUon 6 03 Fmanctal Reports
Section 6 04 Term of Agreement
Section 6 05 IntenUonally Ormtted
Section, 6 06 Notices
Section 6 07 Sevcrablhty
Execution by thc Issuer
Executto~by the User
Exlub~[ A - Desmption of thc ProJect
LOAN AGREEMENT
Tlus Loan Agreement dated as of May 1, 1998, between CITY OF DENTON INDUSTRIAL
DEVELOPMENT AUTHORITY and MAYDAY MANUFACTURING COMPANY, INC
WITNESSETH
ARTICLE I
DEFINITIONS, GENERAL RECITALS, FINDINGS, AND REPRESENTATIONS
Section 1 01 DEFINITIONS In addmon to all other words and terms defined harem, and unless a
different meamng or intent clearly appears from the context, the following words and terms shall have the
following meanings, respectively, whenever they are used harem
Act - Development Corporat~en Act of 1979, as amended, Article 5190 6 V A T C S
Agreement - Tbas Loan Agreement, together w~th Exinblt A attached to this Loan Agreement, and all
amendments and supplements to ttus Loan Agreement
Approving Officer - Any duly appointed representative of the User
Article - Any subd~ws~on of ttus Agreement designated w~th a roman numeral
Board or Board of D~rectors - The lawfully quahfied Board of Drrectors of the Issuer
Bondholder - The owner of the Bond as shown on the Bond Reg~strataen Books kept by the Paying
Agent
Bond Counsel - shall mean McCall, Parkhurst & Horton L L P, Dallas, Texas, and any other fa'm o£
attaints of nanonally r~ogmzod expemso w~th respect to the tax-exempt obhgatlons of poht~¢al subdivisions,
selected by the User and acceptable to the Issuer
'Bond Resolution - The Bond Rasoluaon of the Board of Du~ctors authonamg the ~ssuanee of the Bond
, Bonds - Tho $750,000 Denton Indusmal Development Authority Revenue Bond (Mayday Manufacturing
Company, Inc Project) Senas 1998A and the $1,750,000 C~ty of Denton Indus~al Development Authority
Revenu~ ]~ond (Mayday Manufectunn§ Company, Inc Project) Series 1998B
Code - shall mean ~he Internal Revenue Code of 1986, as amended Each cltanon to a section of the Code
shall m01ude the Regulations apphcabla to such Section
Consm~aon Fund - The segregated account or accounts rotc wbach certain proceeds from the sale and
dei~very, of the Bond will be deposlted as provided the Bond Resolution
Cost of the Project - means with respect to the Project, the cost of acqmsmon, construction,
reconstruction, unprovement, expansion, equipping and/or furmsinng of the Project as prowded m the Act,
including w~thout lmutataon, the cost of the acquasmon of all land, nghts-o£-way, property rights, easements, and
interests, the cost of all maclunery and/or equipment, financing charges, lntarest dunng construction, necessary
reserve funds, cost of estunatas and of enfimeenng and legal servlces, plans, specifications, surveys, estunates
of ¢os~ and of revenue, other expenses necessary or incident to determining the feasththty and practlcabthty o£
acqumng, constructing, reconstructing, nnprovmg, and/or expanding any such Project, adnumstratlve expense,
and such other expense as may be necessary or Incident to the acquisition, construction, reconstruction,
tmprovement, and/or expansion thereof, the placing of the same m operation, and the financing of the Project
Debt Service Fund - The segregated account or accounts ~n winch Installment Loan Payments wall be
deposited as provided m each Bond Reeolutmn
Department - The Texas Department of Econonuc Development and its successors and assigns
Governmental Umt - The C~ty of Denton, a polmcal subd~ws~on of the State of Texas
Inducement Date -October 8, 1997
Issuer - Denton Industrial Development Authority
Installment Loan Payments - Payments required to be made by the User to amomze the Bonds, as
prowded for m the Bond Resolu/aon, including the pnnclpal of, redemption prenuum, if any, and mtarast on such
Bonds when due (whether at stated maturity, upon redempUon prior to stated maturity, or upon acceleration of
stated maturity), any agreed hqtadated damages owed by the User to the Bondholders, and all fees and expenses
of the Registrar and the Paying Agent for such Bonds, together with any other payments requrred by such Bond
Resolution other than the fees and expenses of the Issuer
Loan - The loan of the proceeds of the sale of the Bonds as described m Section 3 01
Paying Agent - Brown Brothers Trust Company
Project - The fecthtaes described m Exhbit A to flus Agreement
Project Location - The City of Denton, Texas
Regtstrar. The regas;a'ar for the Bond named m the Bond Resolution
R~gulataons - The regulations promulgated by the Umted States Treasury Department pursuant to the
Code
Seetmn - Any subdxvlslOn of tins Agreement des~finated by Arable numerals
User - Mayday Manufactunng Company, Inc
User Doeumants - means, collectively, the Deed of Trust end Security Agreement, dated as of May l,
1998, by and between the User and Brown Brothers Trust Company, and the Guaranty and Suretyship
Agreemant, dated as of May l, 1998, by the User to Brown Brothers Hgnman & Co
References m the singular number m flus Agreement shall be constdered to include the plural, ~f and when
appropriate
Section l 02 GENERAL RECITALS, FINDINGS, AND REPRESENTATIONS (a) The Issuer ~s
a nonstock, nonprofit industrial development corporation orgamzed and existing under the laws of the State of
Texas, including particularly the Act
(b) The Issuer is a duly constituted anthonty and public mstmmentahty of the Governmental Unit,
a poht~cal subdawsion of the State of Texas, w~thm the meaning of the Regulations and the rulings of the Internal
Revenue Service prescribed and promulgated pursuant to Section 103 of the Code, and the Issuer is functioning
and ectmg solely on behalf of the Governmental Unit
(c) The User is a Texas corporanon m good standing under the laws of the State of Texas, and fully
authorized by law to execute flus Agreement
(d) Tlus Agreement is authorized and executed pursuant to apphcable laws, including the Act
(e) The User has requested the Issuer to finance the Cost of the Project
(0 The Issuer has determined that it will finance the Cost of the Project, and loan money to the User
for such purpose m the manner provided tn the Act and tins Agreement
(g) The governing body of the Governmental Umt has approved flus Agreement by written
resolution as requn'ed by the Act
(h) The Issuer and the User have taken all aetaon and have complied w~th all provismns of law wath
respect to the execution, delivery and performance of flus Agreement and the due authorization of the
consummatmn of the Iransaetaons contemplated hereby, and flus Agreement has been duly executed and dehvered
by, and constitutes a valid and legally binding agreement of, the Issuer and the User, enforceable a§amst the
respective pert~es m accordance wath its terms
(0 The execWaon of tins Agreement and the performance of the U'ansactions contemplated hereby
will not wolate any law or regulation, or any Articles of Incorporation, Charter, or Bylaws, or any judicial order,
judgnlent, decree, or lnjull~tlon, or contravene the provisions of or consutute a default under any agreement,
indenture, bond resolution, or other instrument to wluch the Issuer or the User ~s a party
(j) Based upon the represantat~ons made by the User, the Issuer hereby finds that (0 the ProJect is
statable for the promotion of industrial or tnanufaetunng development and expansion, (n) the ProJect will have
a dn~ po~t~ve and favorable impact on etnploymant m the Governmental Umt, and (iii) that the Project is m
furtherance of the public purposes as set forth tn the Act
(k) Thc User represents to the Issuer that the Project will be wholly located w~flun the boundanes
of the CRy of Denton, Texas, consists of the Project described ua ExJublt A, and consUtutes a "project" w~flun
the meaning of the Act
(I) The User r~resen~s to the Issuer and the Department that (l) the ProJect will contribute to the
econonue growth or stab~hty of the Governmental Utnt by (A) increasing or stabfllztng employment opportunities
m the Governmental Utnt, (B) sigtnfieantly merensmg or stabthzmg the property tax base of the Governmental
Umt and the State of Texas, and (C) promoting commerce vothtn the Governmental Umt and the State of Texas,
(2) ~t has no present mtent~on oi'usmg or moving any po~on of the Project out of the State of Texas or d~sposmg
of or abandoning the Project, and (3) it has no present mtent~on of d~rectmg the Project to a use other than the
purposes represented to the Governmental Umt and the Department
(m) The proceeds of the Bonds will be used by the User or tts affihates solely to finance the
acqtas~t~on, construction, installation and/or equipping of the Project and the costs of the ~ssuance of the Bonds
NOW THEREFORE, m cons~deraaon of the covenants and agreements hereto made, and subject to the
eondmons hereto set forth, the Issuer and the User contract and agree as follows
ARTICLE II
THEPROJECT
Section 2 01 APPROVALS AND PERMITS The User agrees to use its best efforts to obtain all other
pernuts necessary w~th respect to the acqmsltion, construction, eqmppmg, and/or furmshing of the ProJect
Section 2 02 ACQUISITION AND CONSTRUCTION (a) The Project shall be acquired, constructed,
equipped, and/or furnished vnth all reasonable chspatch, and the User will use its best efforts to cause such
acquis~tion, construction, eqmppmg, and/or furmshmg to be completed as soon as practicable, delays incident
to strikes, nots, acts of God, or the public enemy, or other causes beyond the reasonable control et' the User only
excepted, but Lffor any reason there should be delays m such acquisition, construction, equipping, and furmshmg
there shall be no chrmnut~on m or postponement of the Installment Loan Payments to be made by the User
hereunder, and no resultmg habthty on the part of the Issuer
(b) Thc User shall acquire, construct, eqmp, and/or furmsh the Project or cause the Project to be
acquired, constructed, equipped, and/or furmshed and the Issuer shall have no responsibility or liability
whatsoever w~th respect to the ProJect and the acqmsltlon, construction, equipping, and furmshmg thereof It is
agreed and understood that the User has entered rote and executed and vnll enter mto and execute all agreements
and contracts necessary to assure and accomplish the actual acqtnsmon, construction, eqmppmg, and/or
furmshmg of the Project (and that the Issuer shall not execute any such agreements or contracts) and that the User
will carry out, pay, superwse, and enforce all such agreements and contracts, and ~nll provide for such insurance
on and m connection with the acquis~tion, construet~un, equipping, and furmshlng of the Project as it deems
necessary or edwsable or es is required by law and th~s Agreement The User shall pay, fi.om proceeds fi.om the
sale and dehvery of the Bonds loaned to it pursuant to th~s Agreement, and fi.om any available raceme or earrangs
derived therefrom, end from other funds of the User to the extent necessary, the entare Cost of the ProJect The
User shall promptly pay all taxes, mcludmg specifically all sales taxes and ad valorem taxes, m connection w~th
the Project and the acqms~tmn, constructmn, eqmppmg, and fumashmg thereof The Issuer shall loan certain
proceeds from the sale oftbe Bonds to tho User to be used by the User to pay all or part of the Cost of the Project,
tn accordance x, nth procedures to be established tn any applicable Bond Resolutaon, tncludmg provisions/'or
remabu~smg the User for paying all or any part of such Cost of the project under the aforesaid agreements and
contractS for the ecquisltmn, construction, eqmppmg, and/or furmshmg of the ProJect prior to the User's receipt
of the Loan as bemnafler prowded It ~s spec~ficelly provided, however, that none of the preceeds fi.om the sale
of the Bonds will be used to reunburse the User for, or to pay (and the User hereby covenants and agrees not to
request reunbursement of or paymant for) any pm of the Cost of the Project ff such use or payment would result
m a violataon of any of the User's covenants contained m Section 4 06 and Section 4 07
ARTICLE Ill
FINANCING THE PROJECT,
TITLE AND OPERATION
Section 3 01 THE LOAN The Issuer shall make the Loan to the User by depositing ,nto the
Construction Fund (or such other fund as spec,fically prov,ded in the Bond Resolut,on) the proceeds from the
sale o£ Bonds ,n such amount as is provided m each Bond Resolut,on The amounts so depos,ted shall be
advanced m the manner prov,ded in the Bond Resolutmn, and the User shall repay the Loan by makmg the
Installment Loan Payments us prov,ded m flus Agreement and the Bond Resolution
Sect,on 3 02 SECUPdTY FOR THE LOAN The obligations of the User under flus Agreement shall
be dtreet general obhgat~ons of the User The Issuer has assigned to the Bondholders under the terms of the Bond
Resolut,on all of the Issuer's right, t,tle, and mterast m and to the Installment Loan Payments
Sect~un 3 03 REPAYMENT OF LOAN (a) Notvnthstandmg any prov,sion expressly or referentially
to the contrary contained hereto, the User uncondat~onally agrees that ,t shall make Installment Loan Payments
to the Paying Agent (pursuant to the a£oresa,d ass,gnment by the Issuer) m lawful money of the Umted States
of Amencag and tn such amounts and at such tunes as shall be necessary to enable the Paying Agent to tnake full
and prompt payment of the prmmpal of, redempt,on prenuum, if any, and tnterest on the Bonds when due
(whether at stated maturity, upon redemptwn prior to stated maturity, or upon acceleration of stated maturity),
any agreed hqmdated damages owed by the User to the Bondholders, and all fees and expenses of the Paying
Agent and the Registrar for such Bonds, and of all other amounts requ,red to be paid by flus Agreement and the
Bond Resolnt,on Upon the issuance and dehvery of Bonds to the untlal purchaser thereof, and the deposit o£
the proceeds derived therefi~m nato the accounts estabhshed tn the Bond Rasolutaon, the User shall have received,
and the Issuer shall have g~ven, full and complete consideration for the Users obligation hereunder to make
Inst~llment Loan Payments The obhgaUons of the User to make the payments requtred by flus Agreemant shall
be absolute and unconditional, and shall not be sub. leer to dmunution by set-off, recoupment, eount~relatm.
abatement, or other~mse, and unUl such tune as all Installment Loan Payments shall have been made or prowsion
therefor shall have been made tn accordance uath the Bond Resolut,on and the User (0 unll not suspend or
chscontinue, or pvauut the suspens,on or el,seontmuance of, any payments prov,ded for m flus Agreement, (n) will
perform and observe all of its other agreemants contatned tn flus Agreement, and (nl) vnll not tenmnate flus
Agreement for any cause including, w~thout lmutmg the generality of the foregomg, failure of the Project to
comply vnth the plans and spec~fieat,ons therefor, any acts or c~rcumstanees that may const,tute failure of
consu:lea'at~org desl~ucaun of, or damage to the Project, fl-ustratlon of commereml purpose, any change m the tax
or other laws or edmuustrat~ve rulmgs of or adrmmstranve actions by the Umted States of America, or the State
of Texas, or any polmcal subd~w~on of e~ther, or any fmlure of the Issuer to perform and observe any agreement,
whether expressed or mapl,ed, or any duty, l,abthty, or obl,gatlon anstng out of or tn conneetmn w~th flus
Agreemenl.-Notlung contained m flus Sect,on shall be construed to release the Issuer from the performance of
any of the agreements on its part contained heretn, and m the event the Issuer shall fail to perform any such
agreement on ,ts part, the User may institute such aetmn against the Issuer as the User may deem necessary to
compel performance, prowded that no such actmn shall v,olate the agreements on the part of the User contatned
in flus Seeuon or postpone or dtmm~sh the amounts reqmred to be pa,d by the User pursuant to this Agreement
(b) Notwithstanding the furegomg, ,t ,s the tntantmn of the parties hereto to conform strictly to the
appheable usu..y laws of the State of Tex~ and the Umted States of America, and any provision for any payment
contained hereto and m such Bonds shall be held to be subject to reductmn to the amount allowed under sa,d
c ~wpe~so~wpa,x~o~ o~e.q~ 6
usury laws as now or hereafter construed by the courts havmgjunschctaon Th~s provtston shall be held to operate
to deny the owner of the Bonds the right, m any event, to collect usury
Section 3 04 TITLE The Issuer shall have no right, title, or tnterest tn and to the Project Except for
making the Loan to the User from the source and m the manner provided m this Agreement, the Issuer shall not
be responsible or hable m any manner for any clams, losses, damages, penalties, costs, taxes, or fines ,ruth
respect to the acqmsit~en, constmcUon, eqtuppmg, funushing, tnstallatlon, operation, maintenance, or ownershtp
of the ProJect
Secuen 3 05 OPERATION (a) The User represents and covenants that tt ,mil operate and mamtmn
the Project, or cause the ProJect to be operated and raamtamed, and will pay, or cause to be pard, all costs and
expeuse~ of operalaon and maintenance of the ProJect, including all apphcable taxes, and that tt ,roll keep, or cause
to be kept, m force adequate insurance, including self-insurance, on the ProJect as ts customarily earned by
persons engaged m the same business and operating facllmes like the Project It Is understood and agreed that
the Issuer shall have no duties or responslblhtles whatsoever ,mth respect to the operation or maintenance of the
ProJect, or the performance of the ProJect for tts designed purposes
(b) The User has not and ,mil not maintain that, by vtrme of the ProJect being £manced under the Act,
tt ts enlltled to an exomptton from Texas sales and use tax on personal property acqutred m connectton ,ruth the
ProJeCt The User and its affiliates shall promptly pay all taxes, including spcetfically all sales taxes and ad
valorem taxes, m connecUen uath the Project and the acqmsmun, constmctton, eqmppmg, and furmslung thereof
Sect~en 3 06 INDEMNITIES (a) No Recourse to Issuer The Issuer ,mil not be obhgatod to pay the
Bond except from revenues provided by the User or fi'om other sources specified m the Bond Resolution The
issuance of the Bonds uall not d~rectly or mdtrectly or contingently obligate the Issuer or the State of Texas to
levy or pledge any form of tsxaUen whataver or to make any appropnatton for theu' payment Netther the Issuer
nor any member, officer, employee or agent of the Issuer nor any person executing the Bonds shall be hable
personally for the Bonds or be subject to any personal habfl~ty or accountability by reason of the tssuance of the
Bonds
Co) hdemmfication
(i) The User releases the Department, its dtrectors, employees and agents, the Issuer, tts
officers, threctors, employees, agents and attorneys and the Governmental Umt, its officers, agents,
attorneys, employees and the members of its governing body (collectively the "Indemmfied Entitles")
from, and the Indemmfied Entatles shall not be hable for, and the User agrees and shall protect,
mxlemnffy, defend, and hold the lndemmfied EntlUes harmless f~om any and all Itablhty, cost, expense,
damage or loss of whatever nature (mcludmg, but not lmuted to, attorneys' fees, hUgatton and court
co..sts, amounts paid m settlement, and amounts paid to thscharge judgments) du~ctly or mchrectly
resulting from, arising out of, m connection w~th, or related to (a) the issuance, offering, sale or dehvery
of tho Bonds, the Bond Resohit~on and flus Agreement and the obligations maposod on the Issuer hereby
and thereby, Co) or the design, construction, mstallaUon, operatton, use, occupancy, maintenance, or
ownership of tho Project, (c) any wnttan statements or representations made or g~ven by the User or any
of its officers or employees to tho Indemmfied Ensues, ,ruth respect to the User the Project, or the Bonds,
including, but not lumted to, statements or representations of facts, financial mformatton, or corporate
affairs, (d) damage to property or any injury to or death of any person that may be oecnslonod by any
cause whatsoever pertaining to the Project, and (e) any loss or damage incurred by the Issuer as a result
of vlolaUon by the User of Seotaons 4 05, 4 06 or 4 07 of this Agreement THE PROVISIONS OF
THE PRECEDING SENTENCE SHALL REMAIN AND BE IN FULL FORCE AND EFFECT
EVEN IF ANY SUCH LIABILITY, COST, EXPENSE, DAMAGE OR LOSS OR CLAIM
THEREFOR BY ANY PERSON DIRECTLY OR INDIRECTLY RESULTS FROM, ARISES
OUT OF, OR RELATES TO OR IS ASSERTED TO HAVE RESULTED FROM, ARISEN OUT
OF, OR RELATED TO, IN WHOLE OR IN PART, ONE OR MORE NEGLIGENT ACTS OR
OMISSIONS, EXCLUDING WILLFUL MISCONDUCT, OF THE DEPARTMENT, THE
ISSUER OR THE GOVERNMENTAL UNIT, OR THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, SERVANTS, OR ANY OTHER
PARTY ACTING FOR OR ON BEHALF OF THE DEPARTMENT, THE ISSUER OR THE
GOVERNMENTAL UNIT IN CONNECTION WITH THE MATTERS SET FORTH IN
CLAUSES (a) THROUGH (e) OF SAID SENTENCE
(u) The User shall mdemmfy and hold the Paying Agent harmless agamst any loss, hablhty
or expense, including reasonable attorneys' fees, or settlement costs recurred w~thout breach of the
rexlmred standard of care set forth m the Bond Resolution ansmg out of or m connection vath claims or
ectlons taken under or pursuant to the Bond Resolution, including the costs and expenses of defense
including counsel selected by the Paying Agent against any such claun or action or liability
Notvathstandmg anything to the contrary m tlus Agreement, the User expressly acknowledges and agrees
that the obligations and habtht~es of the User as set forth m ttus Section 3 06 shall survive the
resignation or removal of the Paying Agent
Section 3 07 ISSUER'S LIMITED LIABILITY It is recograzed that the Issuer's only source of funds
vath wl~ch to carry out its commam~nts w~th resl~Ct to the Project and this Agreement will be fi.om the proceeds
from the sale of the Bonds, and ~t ~s expressly agreed that the Issuer shall have no habthty, obligation, or
responslbthty vath respect to flus Agreement or the Project except to the extent of funds available fi.om such
Bond proceeds If, for any reason, the proceeds from the sale of the Bonds are not sufficient to pay all the Cost
of the ProJect, the User shall complete the ProJect and pay all such Cost of the Project fi.om its own funds, but
it shall not be entitled to reunbursement therefor or to any dmunution m or postponement of any payments
reqmred to be~ made by the User hereunder
ARTICLE IV
THE BONDS
Section 4 01 ISSUANCE OF BONDS (a) In conmderatlon of the covenants and agreements set forth
m this Agreement, and to enable the Issuer to ~ssue the Bonds to carry out the intents and purposes hereof, oas
Agreement is executed to assure the msuance of such Bonds, and to prowde for the due and punctual payment
by the User to the Paying Agent of the Installment Loan Payments The User shall make the Installment Loan
Payments, for the benefit of the Bond.holders, to the Paying Agent for deposit rote the Debt Service Fund as
provided m the Bond Resolnt~on
(b) Sunultaneously w~th the anthonzataon of Oas Agreement by the Issuer, the Issuer has adopted
the Bond Resolution The User hereby approves the Bond Resolution It ~s hereby agreed that the foregoing
approval of the Bond Rasolut~on constitutes tho acknowledgment and agreement of the User that the Bonds, when
issued and delivered as proxaded m the Bond Resolution, w,.ll be msued m accordance vath and m compliance w~th
Oas Agreement, notvnthstandmg any other prowslons of oas Agreement or any other contract or agreement to
the contrary Any Bondholder m entitled to rely fully and uncondmonally on such approval Notwithstanding
any provlmons of tins Agreement or any other contract or agreement to the contrary, the User's approval of the
Bond l~olut~on shall be the User's agreement that all covenants and prowsions m the Bond Resolution affecting
the User shall, upon the delivery of the Bonds, becomes uncondmonal, vahd, and binding covenants and
obhgattons of the User so long as the Bonds and the interest thereon are outstanding and unpaid Particularly,
the obhgatlon of the User to make, promptly when due, all Installment Loan Payments specified m the Bond
Resolution shall be absolute and uncond~t~oanl, and smd obhgat~on may be enforced as prowded m the Bond
Resolution regardless of any other provisions of this Agreement or any other contract or agreement to the
contrary
Seet~on 4 02 REFUNDING OF BONDS After the ~ssuance of the Bonds, the Issuer shall not refund
the Bonds or change or mod~ th~ Bonds m any way, except as provided for m the Bond Resolut~un, w~thout the
prior written approval of the Approving O~eer, nor shall the Issuer redeem the Bonds prior to thetr scheduled
matunti~, or change or mod~ the Bond R~olut~on, w~thout the prior wntten approval of the Approving Of~cer
The Issuer will not ~ssue any bonds to refund the Bonds w~thont the approval of the Department
Section 4 03 REDEMPTION OF BONDS Prowsiun shall be made m the Bond Resolution for the
redemption of the Bends prior to matunt% undar such terms and conditions as shall be set forth thereto The
redsmpt~en of tbe outstanding Bends prior to maturity at any tune shall not relieve the User of ~ts uncondmonal
obhgat~en to pay each r~nammg Installment Loan Payment as sp~clfi~ m any Bond Resolution The User also
shall co/nply w~th and be bound by all prows~ons of thus Agreement and of the Bond Resolutton w~th respect to
the mandatory and optional r~d~rapt~on of the Bonds
S'(~unn4 04 INSTALLMENT LOAN PAYMENTS (a) Payment of all Installment Loan Payments
shall bC made and d~pos~tM a~ requn~d by the Bond R~solut~un including all such payments which may come
duc bec, au.no of the aceelerat~on of the maturity or maturities of thc Bonds upon default, or otharvnse, under the
prows~0ns of the Bond Resolution If any avmlable funds m excess of current rcquu'cments are beld on dspos~t
m the Debt Sarv~co Fund at the tune payment of any Installment Loan Paymcnt ~s duc, such payment may be
reduced by thc amount of the funds so held on dcpomt The User shall have the right to prepay all or a pomon
of any Installment Loan Payment at any tune Any such prepayment by the User shall not reheve ~t of habd~ty
for each ramaunng Installment Loan Payment as provided m this Agreement and thc Bond Resolution
(b) Recogruzmg that the Installment Loan Payments vail be the Issuer's sole source for the payment
and performance of its obhgahons to the Paying Agent and the Bondholder under the Bond Resolution, when any
Bond Ii dehvered, the User shall be unconditionally obligated to make and pay, or cause to be made and paid,
each In~tsllment Loan Payment regardless of whether or not the User actually acquires or completes the Project,
or whether or not the User actually approves, purchases, receives, accepts, or uses the Project, and such payments
shall not be subject to any abatcnnent, set-off, r~oupment, or counterclaim, and the Bondholders shall be entitled
to rely, on tins agreement end representation, notwtthstandmg any provisions of this Agreement or any other
contract or agreement to the contrary, mid regardless of the validity of, or the performance of, the remainder of
this Agreement or any other contract or agreement
' Section 4 05 NO ARBITRAGE The User covenants with the Issuer and for and on behalf of the
purchaser and owners of the Bonds Eom tune to tune outstanding that so long as the Bonds remain outstendlng,
monws on deposit m any fund m connectaon w~th the Bonds, whether or not such moneys were denved fi.om the
proceeds of the sale of the Bonds or fi.om any other sources, will not be used m a manner which will cause the
Bonds ,to be "arbitrage bonds" within the mennmg of Section 148 of the Code, and any lawful regulations
promulgated thereunder, as the same ex~st on this date, or may fi.om tune to tune hereafter be amended,
supplemented or revised The User reserves the right, however, to make any investment of such moneys
penmtted by State law, if, when and to the extent that said Section 148 or regulations promulgated thereunder
shall be repealed or relaxed or shall be held void by final judgment of a court of competent junsdlctlon, but only
if any nlvestment made by vm'ue of such repeal, relaxation or decision would not, m the wnttan opunon of Bond
Counsel, result m making the interest on the Bonds includable m the federal gross menme of the owner of the
Bonds
Section4 06 REPRESENTATION AND WARRANTIES RELATING TO TAX-EXEMPT
STATUS OF BONDS The User hereby represents and warrants that
(a) all re.formation provided to th~ Issuer or Bond Counsel with respect to the use and investment
oftbe proceeds of the Bonds and the use of the facthties constituting the Project is true, accurate, correct, and not
rmslcadmg,
(b) all m_Formation provided to thc Issuer or Bond Counsel vath respect to thc c×pected cconounc
hves of the fanlht,es constituting the ProJect ,s true, accurate, correct, and not rmslcadmg,
(c) except as set forth m a certificate or wntten statement to thc Issuer or Bond Counsel prior to the
issuance of the Bonds, thc acqumtion, construction, reconstruction, or unprovement of any of thc facthties
constituting thc Project by the User or any related person did not commence prior to the Inducement Date, nor
was any work performed or any costs paid or recurred by the User or any related person prior to such date which
will be ~ald by, or reimbursed fi.om, the proceeds of the Bonds,
(~)' as of the data of the issuance of the Bonds, there are no outstanding obligations of any state,
temtory or possession of the Umted States of America, or any political subdivision of the foregoing or of the
Dmmctiof Columbia, con~tutmg "exampt small issues", within the meaning of section I 103-10 of the Income
Tax P,~dations or any predecessor regulations (the *'Regulations"), the proceeds of which have been used to
finance/'aclht~es located m the (~ovm'nmental Umt (or outside the Governmental Umt, but "contiguous'* thereto
or "rotated" therewith, vatlun the meunmg of the Regulations), and wluch were or arc to be used primarily by
the Usei' (including any person related to the User, as the case may be, within the mennmg of section 144 of the
Code), other than the Bonds, and,
(e) the Bonds and any other obhgatlon constituting a private activity bond under section 144(a) of
the Code vail not be sold (A) at substant,ally the same time, (B) pursuant to a common plan of marketing, (C)
at subsl~mtially the same rate of interest, and (D) vath a common or pooled security used or available to pay debt
service thereon
Section 4 07 GENERAL TAX COVENANTS The Issuer duly elects to have the provisions of
Section 144(a)(4) of the Code apply to the Bonds and such election is hereby made m accordance w~th the
apphcable regulations and procedures of the Internal Revenue Service The User covenants and agrees that It
shall furnish to the Issuer whatever information is necessary for the Issuer to make such election, as required by
the apphcable regulations and procedures of the Internal Revenue Service
The User and Issuer covenant to reft'am from such action which would adversely affect the treatment of
the Bonds as obligations described m Section 103 of the Code, the interest on which is excludable from "gross
raceme" of the holder for purposes of federal raceme taxation In furtherance thereof, the User covenants as
follows
(a) not to use or revest nor to penmt the use or investment of proceeds of the Bonds
(including investment earnings thereon) or the facilities constituting the Project in a manner that would
result m the Bonds not being "qualified bonds" w~thm the meaning of Section 14 l(d) of the Code,
(b) to use at least 95 percent of the proceeds of the Bonds to provide for the payment of
costa of the acqutsmon, construclaon, reconstruction or unprovement of land or depreciable property that
constitutes a "manufactunng facility" vathm the meaning of Section 144 of the Code, and which are
mcurred subsequent to the Inducament Date,
(c) dunng the six-year penod begummg on a date three years pnor to the date of issue of
tho Bonds and ending three years after such date, will not pay or recur or permit any "pnncipal user" or
any related person (vathm the meaning of Section 144(a)(3) of the Code) of the Project to pay or recur
capital ~pea&tures (vathm the meaning of Sectaon 263 of the Code) for facilities located m the City of
Denton, Texas to the extent that such expendatures when added to the aggregate face amount of the
Bonds would exceed $ I 0,000,000,
(d) the User and related persons as defined above to the User w~ll be the only principal
users of the ProJect,
(e) that all outstanding obligations the interest on wtuch is exempt from federal raceme
taxation pursuant to Section 103 of the Code wluch are allocated to the User "test period beneficiary"
vathtn the mesnmg of Section 144(a)(10) of the Code do not as of the date of issue and vail not, at any
t~pe dunng the three-year period commencing on the later of such date or thc date on which thc ProJect
was placed-m-service, exceed $40,000,000,
(f) that the User will not cause thc Bonds to be treated as "federally guaranteed" obligations
for purposes of Section 149 of the Code, as may be modified m any applicable rules, rulmgs, policies,
procedures, regulations or other official statements promulgated or proposed by the Department of thc
Treasury or the Internal Revenue Service vath respect to "federally guaranteed" obligations descrthed
in Section 149 oftbe Code For purposes of this paragraph, the Bonds shall be treated as "federally
guaranteed" if (0 all or any portion of the pnnclpal or interest is or vail be guaranteed/hrectly or
m&rectly by the Umted States of America or any agency or mstrumentahty thereof, or (ii) a significant
portion of the proceeds of the Bonds will be (A) used in making loans the payment of pnncipal or
interest w~th respect to wtuch is to be guaranteed in whole or in part by the Umted States of America or
any agency or mstramentahty thereof, or (B) invested d~rectly or indirectly an federally insured deposits
or accounts, and (iii) such guarantee is not described in Section 149(b) of the Code,
(g) that the costs oflssum§ the Bonds (including any underwnter's compensation, whether
pad by fee or d~scoant) wbach are financed w~th proceeds of the Bond wll not exceed an amount equal
to 2 percent of the proceeds received fi.om the sale of the Bonds Such amounts will not be taken rotc
account m saUs~.ag the rextta~ent stated above that at least 95 percent of the Bond proceeds be used
to provide the facilities,
(h) that no portion of the proceeds of Bonds ~s to be used to provide the followng an
atrplane, a skybox or other private luxtu~ box, a facility primarily used for gambling or any store the
principal business of which is the sale of alcoholic beverages for consumption off prenuses,
0) that the User shall make such use of the proceeds of the Bonds and any other funds
constituting "gross proceeds" (whether or not held by the Paying Agent under the Bond Resolution)
wlaeh are allocable to the Bonds, restrict the investment of such proceeds and other funds, and take such
further aeaon as may be reqmred so that the Bonds wall not constitute "arbitrage bonds" under Section
148 of the Code and the Regulalaons In pamcular, but not by way of lunltation, the User covenants that
it ~ll provide written msa-uctlon~ to the Paying Agent w~th respect to investments m accordance w~th
S~aun 14(b)ofth~BondResolut~on Moreover, the User agrees to provide to the Issuer and the Paymg
Agent all reqmred mformatmn and moneys necessary to enable the Paying Agent to satisfy the
obligations unposed on the Issuer and the Paying Agent by Section 17 of the Bond Resolution w~th
respect to rebate,
(j) that the User shall munechately remit to the Paying Agent for deposit m the Rebate Fund
any deficiency wath respect to rebate as required by Section 17 of the Bond Resolution,
(k) the User agrees to prowde to the Paying Agent, at such tune as reqmred by the Paying
Agent, all mformation reqmred by the Paying Agent w~th respect to "nonpurpose mvesmaents" (wathm
the meaning of the Code) not held m any fund under the Bond Resolution,
(I) that the User wall not pay or agree to pay, du'ecfly or mthrectly, to a party other than the
Umted States of America, any amount that is reqmred to be paid to the Umted States of America as a
Rebate Amount as provided m Section 148 of the Code, and
(m) that, at no tune during the period m wluch the Bonds remain outstanding, will proceeds
b.0nnvested m a "reserve or replacement" fund, if any, at a y~eld bagher than the y~eld on the Bonds,
~__ce~__ 150 percent of the debt service on the issue for the bond year and that the aggregate amount so
invested wall be promptly and appropriately reduced as the amount of outstanding obhgations
constituting the Bonds is reduced
For purposes hereof, the term "proceeds" refers to "d~spositlon proceeds," if any, within the meamng of'
Sections 144 and 148 of tho Code The covenants and representations contained in Sections 4 05, 4 06 and 4 07
of flus Agreemant are intended to assure comphence w~th the Code and any regulauons promulgated by the U S
Deparmlent of Troasu~ pursuant thereto In the event that regulations are hereafter promulgated which modify,
or expand provisions of the Code, the User wall not be required to comply wath a covenant contained in this
~,~o~ o~.~ 12
section to the extent such mcdlfication or expansion, m the opinion of Bond Counsel, will not adversely affect
the exclusion from gross income of interest on the Bonds under Section 103(a) of the Code In the event that
regulaUons are hereafter promulgated which impose additional requirements wtuch are apphcable to the Bonds,
the Us~r and the Issuer agree to comply ~nth such additional requtrements to the extent necessary, in the opinion
of Bond Counsel, to preserve the exclusion from gross income of interest on the Bond under Section 103(a) of
the Code
ARTICLE V
COVENANT AND REMEDIES
Sect,on 5 01 COVENANT The User uncondmonally agrees and covenants vath the Issuer and the
Paying Agent that it will pay, or cause to be paid, when due, each Installment Loan Payment requzred and
prescribed to be pa~d by it pursuant to the Bond Resolution The User further uncondittonally agrees and
covenants to pay all reasonable expenses and charges, legal or otherwise (including court costs and attorneys'
fees), prod or recurred by the Issuer and the Paying Agent m reahzmg upon any of the said payments to be made
by the User or m enforcmg the provis~ons of tins Agreement or the Bond Resolut, on
SeeUon 5 02 REMEDIES (a) The User ~s advised and r~ogmzes that the Issuer will assign all of its
right, utle, and mterest m and to all the Installment Loan Payments reqcured to be made pursuant to flus Agree-
ment, and the right to reee~ve and collect same, to the Bondholders The Bondholders may enforce the obligations
of the User under flus Agreement and the Bond Resolution m the manner provided m the Bond Resoluuon,
without the necessity of making the Issuer a party
Co) In the avant of a default m the paymant of any Installment Loan Payment, or m the performance
of any agreement or covenant contained harem or m the Bonds or the Bond Resolution, such payment and
performance may be enforced by mandamus or by the appointment of a receiver m eqmty vath power to charge
and coll~t Installment Loan Payments and to apply such revenues m accordance vath flus Agreement, the Bonds
and the Bond Resolution
Section 5 03 GENERAL PROVISIONS (a) The terms nfflus Agreement may be enforced as to one
or more breaches either separately or cumulatively
(b) No remedy conferred upon or reserved to the Issuer or the Bondholder m flus Agreement ns
intended to be exclusive of any other available remedy or remedies, but each and eve~ such remedy shall be
cumulative and shall be m add,tlon to every other remedy now or hereafter emstmg at law or m equity or by
statute No delay or onusslon to exercise any right or power accruing upon any default, ormsslon, or failure of
performance hereunder shall impair any such right or power or shall be construexi to be a waiver thereof, but any
such nght and power may be exercised from tune to tune and as often as may be deemed expethent In the event
any provision contamexi m tlus Agreement should be breached by the User and thereafter duly wmved, such
wmver shall be lmuted to the partacular breach so waived and shall not be deemed to waive any other breach of
this Agrcem~nt No waiver by either palsy of any breach by the other patty of any of the prowsions of flus
Agreement shall be conslxued as a wmver of any subsequent breach, whether of the same or of a thfferent
provision of flus Agreement
(~- Headings of tho Amclee and Sectaons of flus Agreement have been inserted for convemance of
reference only and m no way shall they affect the mterpretatlon of any of the prows~ons of flus Agreement
(d) This Agreement ~s made for the exclusive benefit of the Issuer, the Paying Agent, the
Bondholders, and the User, and their resl~ct~ve successors and assigns harem pemutted, and not for any other
tturd party or pames, and untlung m flus Agreement, expressed or ~mphed, is mtendnd to confer upon any party
or part~e~ other than the Issuer, the Paying Agent, the Bondholders, and the User, and their respective successors
and assigns berem pernutted, any nghta or ramethes under or by reason of flus Agreement
ARTICLE VI
SPECIAL COVENANTS
Seetlon 6 01 EXISTENCE Thc User agrees that it will maintain its c~stencc during thc term of this
Agreement and wall not &stnbute or &spose of all or substantially all of its assets
Sectton 6 02 ASSIGNMENT The User shall not assign its interest mttus Agreement or any or,ts
r~ghts or obhgattons hereunder except as specifically provided mttus Agreement The User may assign ~ts
interest m th~s Agre~nent to another party provided that the User shall remain and be primarily raspons~ble and
liable for all of ~ts obh§at~on hereunder, mcludmg particularly the making of all payments r~qmred hereondcr,
when duc
~'~on 6 03 FINANCIAL REPORTS The User shall supply the owners of the Bonds such financial
statements as such owner may reasonably request
Seef2on 6 04 TERM OF AGP~EMIINT Thc ~m of flus Agreemant shall be fi.om the date hereof until
all payments reqmr~d to he made by the User pursuant hereto shall have b~n made, prowded, bow~ver, that the
provis~ons of Sections 3 06, 4 05, 4 06 and 4 07 shall survive the termination of tlus Agreement and shall
contmuo m effect regardless of the termination of th~s Agreement
Seet~on 6 05 INTENTIONALLY OMITTED
Se~on 6 06 NOTICES Any not~ce, request or other commumcat~on under ttus Agreement or the Bond
Resolution ~hall b~ given m wntmg and shall be deemed to have been g~ven by any part~ to the other parties at
the addresses shown below upon any of the following dates
(a) The date of notice by telefax, teleoopy, or smular teleeommumcatlons, wluch is confirmed
promptly m writing,
(b) Three Bnsmess Days after the date of the mailing thereof, as shown by the post office reeo~pt
if mailed to the other party hereto by registered or cemfied mall,
(¢) The date of the r~eo~pt thereof by such other party if not g~ven pursuant to (a) or Co) above
The address for not~ce for each of the pa~lee shall be as follows
Ma) day Manufacturing Company, Inc
2400 FM 407
*' ' Lew~v~lle, Texas 75067
Atto Pr~dent
Telephon~ (972) 317-7000
Teleeopler (972) 317-7005
City of Denton Industrial Development Authority
c/o City of Denton
215 E McKmney
Denton, Texas 76201
Atto President
Telephone (940) 566-8228
Teleeopier (940) 566.8236
Brown Brothers Hamman & Co
Attn
Telephone ( )_
Telecopier ( )_
or the latest address specified by such other party m wntmg, or
(d) If the User fails to timely make or pay any payment under the Agreement, or upon reeelvmg
noaee that the mterest on thc Bonds is, or may be, subject to federal mc. omc taxation other than as described m
the oplmon of Bond Counsel dehvered at issuanee of the Bonds, the Paying Agent promptly shall mfonn the
Department of such an occurrence, by sending written notice to the following address
Texas Department of Econonuc Development
Attention Executive Director
P O Box 12728
Austin, Texas 78711
or thc latest address specified by thc Department
Section607 SEVERABILITY Ifanyclause, provlsmn, or Sectlon oftins Agreement should be hcld
illegal or mvahd by any court of competent jurisdiction, the mvahdity of such clause, provision, or Section shall
not affect any of tho remaining clauses, pwwslons, or Sect~ous bercof and this Agreement shall be construed and
enforced as if such illegal or mvahd clause, provision, or Section had not been contained berem In case any
agreement ~' obhgation contained m tbs Agreement should be held to be m violation of law, then such agreement
or obhgation shall be deemed to be the agreement or obhgation of the Issuer and thc User, as the case may be,
to thc full extent pemutted by law
IN WITNESS WHEREOF, the part,es hereto have caused tlus Agreement to be s~gned m multiple
counterparts, each of wtuch shall be considered an on§ma! for all purposes, as of the day and year f'u'st set out
above
CITY OF DENTON INDUSTRIAL
DEVELOPMENT AUTHORITY
President, Board of Du'ectors
ATTEST
Secretary, Board of D~reetors
(SEAL)
MAYDAY MANUFACTURING COMPANY,
INC
President
Exhibit A
Descnvtion ct' the Pro~¢ct
The ProJect is located at 1500 Interstate Highway 35W in Denton, Texas, and consists of (i) acquisition
of approramately 10 acres of land w~th erastmg braidings (approximately 43,000 sq ft in size), 60
reconstruction of erastmg bml&ngs to modermze, update and reeonfigure for use by the Company m the
manufacture ofclo~e tolerance structural ma¢innmg components for the aerospace industry, and (iii) acquisition
and mstallatxon of eqmpment related thereto
RESOLUTION NO /~4~. ~;~/~?
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
DENTON RELATING TO THE ISSUANCE OF OBLIGATIONS BY
NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC,
APPROVING THE ISSUANCE OF SUCH OBLIGATIONS AND
THE USE OF THE PROCEEDS OF SUCH OBLIGATIONS, AND
MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the North Texas Higher Education Authority, Inc (the "Authority") was
establmhed as a non-profit corporation, pursuant to the Texas Non-Profit
Corporation Act, for the purpose of furthering educational opportumt~es of
students by prowd~ng funds for the acquisition of student loans, and
WHEREAS the Authority has proceeded ~n the development of a plan of doing business
and has ~ssued student loan revenue bonds for the aforesaid purposes, and
additional funds are needed to continue the program, and ~t is now
appropriate for th~s govermng body to approve the ~ssuance of add~tmnal
bonds for such purpose, and
WHEREAS pursuant to Section 147(f) of the Internal Revenue Code of 1986, as
amended ("Code"), a public hearing was conducted on February 26, 1998,
at 10 O0 o'clock a m, following reasonable pubhc not~ce, w~th respect to
the ~ssuance of student loan revenue bonds by the Authority (the "New Tax-
Exempt Bonds"), and
WHEREAS certified minutes of the proceedings from sa~d heanng have been submitted
to the C~ty of Denton ("C~ty"), and
WHEREAS, ~n order to satisfy requirements of the Code, ~t ~s necessary for C~ty,
following the holding of a pubhc hearing, to approve the ~ssuance of the New
Tax-Exempt Bonds, and
WHEREAS ~n order to satisfy requirements of the Texas Education Code, ~t ~s necessary
for C~t,/ to approve the ~ssuance of all bonds or other obligations of the
Authority whether or not they require approval under the Code,
NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I
That the C~ty Council of the C~ty of Denton, Texas, hereby grants ~ts
approval to the North Texas H~gher Education Authority, Inc to ~ssue and dehver student
loan revenue bonds, notes or other obhgat~ons, ~n one or more series m an aggregate
pr~nmpal amount not to exceed $50,000,000, for the purposes of obta~mng funds to
purchase student or parent loan notes whmh are guaranteed under the H~gher Education
Act of 1965, as amended, refunding outstanding obhgat~ons of the Authority, and setting
amde theI amount the Authority determines ~s necessary for a reserve and for operating
costs and paying the cost of ~ssu~ng such obhgat~ons ~n accordance w~th the laws of the
State of Texas, ~nclud~ng Chapter 53, Texas Education Code, and ~f apphcable, art 717k,
Vernon's C~v Stat Ann and Section 144 of the Code
SECTION II
Further, the Mayor and C~ty Secretary of the C~ty of Denton, Texas are
hereby authorized and d~rected to execute the Approval Certificate, a copy of whmh ~s
attached ~hereto and ~ncorporated hereto as Exhibit "A", and to dehver certified copras of
thru resolution and the Approval Certificate to the Authority
SECTION III
The C~ty of Denton, Texas requests that the Authonty exercise the powers
enumera1~ed and provided for ~n Section 53 47, Texas Educatmn Code, as amended, and
that such non-profit corporation shall, m th~s connection, exermse such powers for and on
behalf of, the C~ty of Denton, Texas and the State of Texas, as contemplated by Section
53 47(e), Texas Educatmn Code, as amended
SECTION IV
The C~ty of Denton, Texas does not agree to assume any responmb~hty ~n
connect~)n w~th the adm~mstrat~on of the Authonty's student loan program Sole
respons~l~hty for the administration of the Author~ty's student loan program ~s assumed by
the Authority
2
SECTION V
Further, ~t ~s recognized by the C~ty of Denton, Texas that the instruments
which authorize the ~ssuance of bonds, notes, or obhgat~ons by the Authonty w~ll
spemflcally state that the C~ty the Denton, Texas ~s not obhgated to pay the principal of or
~nterest on the bonds, notes, or obhgatlons proposed to be ~ssued by the Authority
Nothing m thru resolution shall be construed as an md~catmn by the C~ty of Denton, Texas
that ~t w~ll pay or prowde for the payment of any obhgat~ons of the sa~d Authority whether
theretofore or hereafter incurred, and in this connection, attention IS called to the
Constitution of the State of Texas, where~n ~t ~s provided that a c~ty may ~ncur no
~ndebtedness w~thout hawng made prows~ons for ~ts payment, and the C~ty Counml of the
C~ty of Denton, Texas hereby specifically refuses to set aside any present or future funds,
assets or money for the payment of any ~ndebtedness or obhgatlon of the Authority
SECTION VI
It ~s hereby offm~ally found and determined that the rneet~ng at whmh th~s
resolution ~s passed m open to the pubhc, as required by law, and that pubhc not~ce of the
t~rne, place and purpose of sa~d meeting was posted, as required by law
SECTION VII
Th~s resolution shall become effective ~mmedlately upon ~ts passage and
approval
PASSED AND APPROVED th~s the ~-,- day of
Jack ~; Mayor
ATTEST
Jennifer Walters, C~ty Secretary
~-nl:~;~ ;V~ters, '~l~y Secretary
APPROVED AS TO FORM
Herbert L Prouty, C~ty Attorney
EXHIBITA
APPROVAL CERTIFICATE
I, Jack M~ller, am the duly elected Mayor of the C~ty of Denton, Texas, Texas (the
"C~ty"), and as such am the applicable elected representative of the C~ty pursuant to §147(f)(2)(B)
of the Internal Revenue Code of 1986, as amended On February 26, 1998, a pubhc heanng was
conducted regarding the ~ssuance of bonds (the "Bonds") by the North Texas H~gher Education
Authonty, Inc (the "Authonty") and the utilization of substantially all the proceeds of such Bonds
for the purposes of (1) purchasing student loan notes, (2) refunding outstanding obhgat~ons of the
Authority, (3) setting aside certain funds for the payment and secunty of the Bonds, and (4) paying
certain expenses ~n connection w~th ~ssuance of the Bonds, as prowded and hm~ted by the Intemal
Revenue Code of 1986, as amended, and the Texas Education Code, as amended Student loan
notes are notes executed by students (or parents of students) who are residents of the State of
Texas or who have been admitted to an "accredited ~nst~tut~on" in the State of Texas (as defined in
the Texas Eduction Code) A copy of the report of such heanng ~s attached hereto as Schedule I
As the applicable elected representative of the C~ty, I hereby specifically approve
the Bonds descnbed above and the use of the proceeds of such Bonds for the purposes stated
above
SIGNED AND SEALED thls ~/~--~dayof ~ , 1098
Mayo~
(SEAL)
ATTEST
r~re-~ry, c~E of b~nton, Texas
-1-
600622
F ~shared\dept~GL\Our Documents~e solutions\9 8\Retaln ~ Earnings Res doc
SO TIONNO
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
UNRESERVED RETAINED EARNINGS OF THE FLEET SERVICES FUND WITH
CERTIFICATES OF OBLIGATION, A_ND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") is a municipal corporatlon/pohtmal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures m connection with the design,
planning, and construction of the Fuel Replacement Island project described m Exhibit "A"
hereto (the "Project"), which Exlublt "A" is attached hereto and made a part of thru resolution for
all purposes, prior to the issuance of obhgatlons to finance the Project, and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consistent with the lawful
objectives of the Issuer and, as such, chooses to declare its intention, m accordance with the
prowslons of Section 1 150-2 Treasury Regulations, to reimburse itself for such payments at
such time as it issues the obligations to finance the Project, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That thc Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum pnnclpal amount equal to $135,000 for the purpose of
paying the costs of the Project, as set forth m the attached Exhibit "A"
T~ That all costs to be reimbursed pursuant hereto will be design and capital
expenditures No tax-exempt obhgatxons will be issued by the Issuer in furtherance of this
resolution after a date wi'ach is later than 18 months after the later of (1) the date the
expenditures are prod, or (2) the date on which the property, with respect to which such
expenditures were made, ~s placed in serwce
~ That the foregoing notwithstanding, no tax-exempt obligation will be
issued pursuant tot his resolutaon more than three years after the date any expenditure which is to
be reimbursed is prod
SECTION IV. That ttus resolution shall become effective immediately upon its passage
and approval
PASSEDAND APPROVED thlsthe~7~~dayOf ~p~'/ ? ,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
//
APRII[OVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
/
EXHIBIT A
Project Cost
Fuel Island Replacement $ 176,817
Amount Available - Other Sources < 41,817
Project Amount for Reimbursement Resolution $ 135,000
RESOLUTION NO
A RESOLUTION RECOMMENDING A LOCATION FOR THE TEXAS DEPARTMENT OF
TRANSPORTATION GOVERNOR'S COMMUNITY ACHIEVEMENT AWARD, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, m 1997, Denton received first place ~n the Keep Texas Beautiful, Inc and
Texas Department of Transportation Governor's Community Achievement Award, and
WHEREAS, the Texas Department of Transportatmn prowdes a $60,000 landscape
award to the winner of the Governor's Commumty Achievement Award, and
WHEREAS, the City Council and the Keep Denton Beant~ful Board held a joint meeting
on August 27, 1997 to discuss the site, and
WHEREAS, the City Council and the Keep Denton Beautiful Board recommend that the
Texas Department of Transportatmn landscape Fort Worth Drive (U S Highway 377) from 1-
35E to Colhns Street, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the City Council requests that the Texas Department of Transportation
accept thc Fort Worth Drive location for the use of its Governor's Commumty Achievement
Award and prepare plans for the utilization of the Governor's Community Achievement Award
funding tO landscape Fort Worth Drive from 1-35E to Collins Street
~ That thru resolution shall become effective ~mmedlately upon ~ts passage
and approval
PASSEDAND APPROVED thisthe /~,~~7/~_ dayof /'~d2ff , 1998
JAC~H~LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
A RESOLUTION BY THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER TO SIGN AND SUBMIT TO THE DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT A 1998 ACTION PLAN FOR HOUSING AND COMMUNITY DEVELOP-
MENT WITH APPROPRIATE CERTIFICATIONS, AS AUTHORIZED AND REQUIRED BY
THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED AND
THE NATIONAL AFFORDABLE HOUSING ACT OF 1990, AS AMENDED, AND
PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the C~ty of Denton, Texas, ~s concerned w~th the development of vaable urban
commumt~es, including decent housing, a statable hwng environment and expanded eeonomae
opportumt~es, and
WHEREAS, the C~ty of Denton, Texas, has a special concern for persons of low and
moderate income, and
WHEREAS, the C~ty of Denton, Texas, as a CDBG entitlement C~ty and a Home
participating jurisdiction, has prepared, through a citizen participation process, a program for
utallzmg ~ts enUflement funds and program mcome m the approxmaate amount of $1,715,481, and
WHEREAS, e~tizen partle~patton reqturements, including the holding ofpubhe heanngs, have
been met, and
WHEREAS, the Commumty Development Act of 1974 and the NaUonal Affordable Housing
Act of 1990 requtre an apphcation and eppropnate certtficatxons included ~n the Consohdated Plan,
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ECTION I. That the C~ty Council of the C~ty of Denton, Texas, authorizes the C~ty
Manager to s~gn and subnut to the Department of Housing and Urban Development an Action Plan
and appropriate eerttfieations for entatlement funds under the Housing and Commumty
Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as
amended
~ That the C~ty Council of the C~ty of Denton, Texas, authorizes the D~reetor of
Planning and Development to handle all fiscal and adm~mstraUve matters related to the epphcation,
the Consohdated Plan and the eertlfieattons
SECTION III. That the C~ty Secretary ~s hereby authorized to fumash copies of flus
resolution to all interested pafaas
~ That tins resolution shall become effective tmmed~ately upon ~ts passage and
approval
PASSED AND APPROVED this the/6~7~day of J/j~d/ , 199~
~J
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
Nle t Do ¢ument
KESOLUTION NO ~c~
A RESOLUTION AUTHORIZING THE COLrNTY OF DENTON, AS TRUSTEE, TO SELL
CERTAIN REAL PROPERTY, CONSENTING TO THE SALE OF CERTAIN REAL
PROPERTY TO THE HIGHEST BIDDER AS PROVIDED BY LAW, AUTHORIZING THE
MAYOR OF THE CITY OF DENTON, TEXAS TO EXECUTE A DEED WITHOUT
WARRANTY AND ANY OTHER DOCUMENTS NECESSARY OR APPROPRIATE TO
CONVEY CERTAIN REAL PROPERTY SOLD BY THE COUNTY OF DENTON, AS
TRUSTEE, PURSUANT TO SECTION 34 05 OF THE TEXAS PROPERTY TAX CODE,
AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, Cause No 90~0228-158, was filed by the County of Denton, the City of
Denton, the Denton Independent School District and the Denton County Education District, in
the 158th Judicial District Court m and for Denton County, Texas, m order to collect delinquent
taxes owing upon the followmg described real property, to w~t
BEING Lot 23, Block 1, WILLOWCREEK Addition, an Addition to the C~ty of Denton,
Denton County, Texas, also being that same property more particularly described m
Volume 1108, Page 670 of the Deed Records, Denton County, Texas, SAVE AND
EXCEPT that eertmn tract of real property described in Volume 1263, Page 388, of the
Deed Records, Denton County, Texas, and
WHEREAS, the 158th Judicial District Court m and for Denton County, Texas, granted
Judgment m favor of the taxing junsdlcUons of Denton County on May 2, 1996 as follows
County of Denton $ 443 20
Clty of Denton $ 1,206 58
Denton Independent School District $ 2,024 08
And Denton County Education District
T~fle Research Fees $ 100,00
Total Due $ 3,773 86
WHEREAS, at the time of smd Judgment, it was detenmned that the market value of the
above-desenbed real property was $2,100 00, and
WHEREAS, the above-described real property was offered for sale on January 6, 1998,
by the Sheriff of Denton County, Texas, at a pubhc auctaon pursuant to Judgment of the 158th
Judicial District Court m and for Denton County, Texas, for foreclosure of the tax hens secunng
payment of the delinquent property taxes, as well as accrued penalty and ~nterest owing thereon,
and
WHEREAS, at smd sale, the Sheriff of Denton County, Texas did not receive a sufficient
bid respecting the above-described real property, as set by law, and the above-described real
property was therefore struck offto the County of Denton, Texas, Trustee, an trust and for itself,
the City of Denton, the Denton Independent School D~stnct, and the Denton County Education
D~stnct, pursuant to Section 34 01(c) of the Texas Property Tax Code, and
WHEREAS, all taxing umts ~nvolved as judgment creditors ~n the foregoing Judgment
desire to resell the above-descnbed real property m an expeditious manner, pursuant to Section
34 05 of the Texas Property Tax Code, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I. That the C~ty Councd of the C~ty of Denton, Texas authorizes the County
of Denton as Trustee, for the benefit of ~tself, and the other taxing junsd~ct~ons ~n Denton County
~nclud~ng the C~ty of Denton, Texas, to sell the above-described real property, and hereby
consents to the sale of the above-desenbed real property to the h~ghest bidder, even ~f the h~ghest
b~d tendered to the County of Denton as Trustee, ~s less than the market value of the above-
described' real property as set forth m the above-descnbed Judgment of foreclosure or the total
amount of the Judgment against the above-descnbed real property
SECTION II. That the Mayor of the C~ty of Denton, Texas ~s hereby authonzed to
execute a deed w~thout warranty and any other documents necessary to convey the above-
descnbed real property sold by the County of Denton, as Trustee, pursuant to Section 34 05 of
the Texas Property Tax Code
SECTION III. That tlus resolution shall become effective ~mmechately upon ~ts passage
and approval
Xdgda tX
PASSED AND APPROVED ttus the~.~_ yof~ , 1998
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
S \Our Docum~ntskl~solut~ons\gg\CoTaxSale 1248 McDonald doc
RESOLUTION NO 2qf-'~)~-~
A P~SOLUTION TO D~CL~ TH~ ~ENT TO ~IMB~SE ~E~IT~S FROM
~SER~D F~ B~CE OF TH~ G~N~L F~ WITH CERT~ICAT~S OF
OBLIGATION, ~ PROVinG AN EFFECTIVE DAT~
~E~AS, ~e City of Denton (the "Issuer") 1s a m~lexpal co~ora~offpolltleal
subdlvls~on of the State of Texas, ~d
~AS, ~e Issuer expects to pay expendlt~es m co~eet~on w~ ~e des~,
pl~ng, ~d eons~ctlon of the Fuel F~ for ~e A~o~ described m E~blt "A" attach~
hereto (~e "Project"), whzch ExMb~t "A" ~s attached hereto ~d made a p~ offs resolutxon for
all p~oses, prior to the lSSU~ee of obhgat~ons to tin.ce the Project, ~d
~E~AS, ~e Issuer finds, eons~d~s, ~d deel~es that the re~mb~sem~t of ~e Issuer
for ~e pa~ent of such expend~es will be appropriate ~d consistent w~th ~e law~l
objectives of ~e Issuer ~d, as such, chooses to decl~e its ;mention, m accord~ee w~th the
provisions of Seeaon 1 150-2 Treas~ Regulaaons, to re~mb~se ~tself for such pa~ents at
such txme as ;t ;ssues the obhgatxons to tin.ce the Project, NOW, THE~FO~,
THE CO~C~ OF THE CITY OF DENTON HE.BY ~SOLVES
~ ~at the Issuer reasonably expects to mc~ debt, ~ one or more series of
obhgatmns, w~th ~ ag~egate m~mm pnne~pal ~o~t equ~ to $175,000 for ~e p~ose of
paymg the costs of~e Project, ~ set fo~h m ~e attached Exhibit "A"
SECTION II. That ~1 costs to be relmb~sed pursuit hereto will be des~ ~d eapxtal
expen~t~es No t~-exempt obhgaaons will be ~ssued by the Issuer m ~her~ee of ~lS
resolution ~er a date wMeh xs later ~ 18 months a~er the later of (1) ~e date ~e
expendlt~es ~e prod, or (2) the date on which ~e prope~, w~th respect to which such
expendx~es were made, ~s placed m se~ee
~ That the foregoing no~st~dmg, no t~-exempt obhgat~on will be
~ssued pmu~t to ~s resolutmn more ~ ~ee ye~s a~er the date ~y expend~t~e which ~s to
be relmb~sed is prod
~ That th~s resolution shall become effective ~mmed~ately upon zts p~sage
~d approv~
PASSED ~ ~PROVED this ~ day of 1 ~ . ,1998
JAC~ ,LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATT~ORNEY
Page 2
EXHIBIT "A"
PROJECT
Reimbursement Resolution $175,000
From other sources 0
TOTAL $175,000
A RESOLUTION AMENDING RESOLUTION NO 97-044, WHICH APPROVED THE 1997-
98 BUDGET OF HOTEL TAX REVENUES FOR FRIENDS OF DENTON COUNTY
HISTORY, INC, BY APPROVING A REVISED BUDGET TO BE ADMINISTERED BY
THE HISTORICAL SOCIETY OF DENTON COUNTY, INC, PURSUANT TO CHAPTER
351 OF THE TEXAS TAX CODE, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Oty Council for the C~ty of Denton has approved the assignment of
hotel tax revenues allocated to Friends of Denton County H~story, Inc (Friends) by Ordinance
No 97.250 to the I-hstoncal Soaety of Denton County, Inc (Soaety), subject to the approval by
the Oty Counetl ora more deflmt~ve budget for funds to be expended m the 1997-98 budget year
by the Soaety, and
WI-IEREAS, the C~ty Counal finds that the Budget prepared by the Soaety attached
hereto ~s more deflmt~ve than the original budget prepared by the Friends and more fully
comphes w~th TEX TAX CODE ANN, Sec 351 101(c), NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ That, m accordance w~th TEX TAX CODE ANN, Sec 351 101(c), the
Oty of Denton hereby approves certain amendments to the 1997-98 budget of hotd tax revenues
m the amount of $5,000 approved pursuant to Resolution No 97-044, including, but not hm~ted
to, a rews~on which provides for the sdmtmstrat~on of budgeted funds by the I-hstoneal Society
of Danton County, Inc (Society) m heu of the Friends of Denton County H~story, Inc (Friends),
pursuant to the Agreement between the Friends and the C~ty which has been assigned to the
Somety, a copy of such rewsed budget being attached hereto and made a part hereof for all
purposes
~ That the Soaety shall make periodic reports to the C~ty Council at least
quarterly hstmg all expendttures made wtth hotel tax funds
~ That thts resolution shall become effective tmmedmtely upon tts passage
and approval
PASSED AND APPROVED th~s the t~[~) day of ~1 1.~^.~9~ ,
1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
A~ROVEI~ AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE2
RESOLUTION NO ~
A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING THE DRUG-FREE
ZONE MAPS PRODUCED BY ENGINEERING AND TRANSPORTATION DEPARTMENT
OF THE CITY OF DENTON
WHEREAS, Section 481 134 of the Texas Health and Safety Code defines the areas
which are drug-flee zones and allows for enhancement of drag offenses that occur within the
drag free zones, and
WHEREAS, Section 481 135 provides that ~f the governing body of a mumclpahty
approves the map as an official finding of record of the location or boundaries of those areas,
then the map is admissible into evidence and ~s prima fame evidence of the location or
boundaries of those areas, and
WHEREAS, the City Counml deems it to be ~n the best ~nterests of the pubhc to protect
schools, playgrounds, msUtutlons of tugher education, youth centers and video arcades from the
danger of drags and drug dealers by enforcing the drag laws to the fullest extent authorized by
law, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ The map designating the boundaries and location of the drag-free zones
within the City of Denton which was produced by the City's Englneenng and Transportation
Department is hereby approved as an official finding and record of the location and boundaries
of the drag-free areas
SECTION II The drug-free zone map is attached to this resolution and shall be filed
with the county clerk of Denton County
~ This Resolution shall become effective xmme&ately upon ~ts passage and
approval
this the ty~fiA~ay of ~_.~, 1998
PASSED
APPROVED
JAC~~
F \shared~ept\LGL\Our Documents\Resolutmns~rug free zones doc
ATTEST
BY~JEN~]~R W-JiLtERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
F ~shared\depfiLGL\Our Doeuments~esolut~onsklmg flee zones doc
Ordinance
RESOLUTION NO .~.~.. f -[~
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
UNRESERVED FUND BALANCE OF THE GENERAL FUND WITH GENERAL
OBLIGATION BONDS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Caty of Denton (the "Issuer") ~s a munlcapal corporataon/poht~cal
subdavasaon of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures ~n connectaon wath the desagn,
planning, and constructaon of the mechan opemng and driveway access for Southndge Center
described an Exhibit "A" attached hereto (the "ProJect"), whmh Exh~bat "A" ~s attached hereto
and made a part of ttus resolutaon for all purposes, pnor to the assuance of obhgataons to finance
the Project, and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expendatures wall be appropriate and consmtent with the lawful
objectives of the Issuer and, as such, chooses to declare its antenUon, an accordance with the
provaslons of Section 1 150-2 Treasury Regulations, to reimburse itself for such payments at
such tame as at assues the obligations to finance the ProJect, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ECTION I. That the Issuer reasonably expects to incur debt, as one or more senes of
obbgat~ons, with an aggregate maxtmum pnncapal mount equal to $40,000 for the purpose of
paying the costs of the ProJect, as set forth an the attached Exh~bat "A"
SECTION II. That all costs to be reimbursed pursuant hereto will be design and capatal
expend~tm'es No tax-exempt obhgatlons will be ~ssued by the Issuer m furtherance of this
resoluUon after a date which as later than 18 months after the later of (1) the date the
expendatures are ptud, or (2) the date on which the property, wath respect to whmh such
expendatures were made, is placed an serwce
SECTION III That the foregoing notwathstand~ng, no tax-exempt obligation wall be
issued pursuant to th~s resolution more than three years after the date any expendature whach ~s to
be reimbursed as prod
~ That this resolutmn shall become effective lmmedmtely upon ats passage
and approval
PASSED AND APPROVED tins the ~Tday of ~ 1~ ..~_o~ ,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 2
EXHIBIT "A"
PROJECT. Median opening and dnvewa¥ access for Southndge Center
(approximately 1,000 feet west of LiIhan Mdler at 1-35
TOTAL $40,000
RESOLUTION NO
A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE EXECUTION
OF AN AMENDMENT NO 1 TO THE AIRPOKT PROJECT PARTICIPATION GRANT FOP,
STATE ASSISTED KOUTINE MAINTENANCE BETWEEN THE CITY OF DENTON AND
THE TEXAS DEPARTMENT OF TKANSPORTATION RELATING TO THE DENTON
MUNICIPAL AIRPORT, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, tho C,ty of Denton, hereinafter referred to as the "Sponsor," and the TEXAS
DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the "State," have entered
rote an Affport Project Partt¢~paUon Grant, TxDOT CSJ Number AM18DNTON, executed by
the Sponsor on February 18, 1997 and by the State on May 20, 1997, for the routine maintenance
of the Denton Mun, c~pal A~rport, and
WHEREAS, It ~s m the mutual interest of the Sponsor and the State to amend said
A~rport Project Pamo~paUon Grant at ttus time to update the necessary maintenance items and
extend the term of the grant for the new fiscal year,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ That the C~ty Council authorizes and dtrects the City Manager, or his
des,ghee, to execute Amendment No 1 to the Airport Project Participation Grant for state
assisted routine maintenance between the City of Denton and the Texas Department of
Transportation relating to the Denton Mum¢lpal A~rport
SECTION II That th~s resolut, on shall become effective immediately upon ~ts passage
and approval
PASSED AND APPROVED this the /~'ff~ day of ~ ,
1998
J~vlILLER, MAYOR
ATTEST
JENNIFER. WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
ORIGINAL
TEX~S DEPARTMENT OF TE~%NSPORTATION
AIRPORT PROJECT PARTICIPATION GRANT
(Grant for State Assisted Airport Routine Maintenance)
Amendment No, ol
TxDOT CSJ Number=AM18DNTON
WHEREAS, the city of Denton, hereinafter referred to as the
"Sponsor", and the TEXAS DEPARTMENT OF TRANSPORTATION,
hereinafter referred to as the "State," have entered Into an
Airport Project Participation Agreement TxDOT CSJ Number
AM18DNTON, executed by the Sponsor on February 18, 1997 and by
the State on May 20, 1997, for the routine maintenance of the
Denton Municipal Airport; and
WHEREAS, it IS in the mutual interest of the Sponsor and the
State ,to amend said Airport Project Participation Agreement at
this time to update the necessary maintenance items and extend
the term of the grant for the new fiscal year, and
NOW, THEREFORE, in consideration of the parties' mutual
promises, the following amendment to the Airport Project
Participation Agreement shall become effective upon execution of
this Amendment by the Sponsor and the State.
The Airport Project Participation Agreement is hereby
'amended by:
(a) ~n accepting this Grant, the sponsor guarantees that
following completion of the project where airport lighting
part of a project, the Sponsor shall operate such lighting at
least at low intensity from sunset to sunrise; and
(b) Attachment A - Scope of Services a~tached hereto and made a
part of this agreement
Ail other terms and conditions of the agreement are
unchanged and remain in full force and effect
ATTORNEY GENERAL OF TEXAS STATE OF TEXAS DEPARTMENT OF
TRANSPORTATION
As~fstAn-~/~tgrney ~General
cate,, ?-7 f6 Date:
AVN4301B FRM (10-4-96) Pag~ ]
Attachment A
Scope of Services
Amendment No. 01 to TxDOT CSJ Number AM18DNTON
PAVEMENTS ~78.00 $8,889.00 889.00
GENERAL MAINTENANCE
PAVEMENT MARKINGS
GRADING/DRAINAGE
MISCFr.?.ANEOUS
MOWING $ 0
Total
$17,778.00 $8,889.00 $8,889.00
The of Denton, Texas does hereby ratify and adopt all
statements, representations, warranties, covenants and agreements
constituting the described project and incorporated materials
f~ferred to in the foregoing Grant, and does hereby accept the Offer,
and by such acceptance agrees to all of the terms and conditions of
the Grant thereof. ~_A ~
Accepted this /~ ~ day of , 19 ~ .
~nsor
~Witness Signature Signature
Deputy City Secretary City Manager
-- Title Title
Notes (~planatlons of any speclfi~tions or variances as needed for above scope items)
AVN4301B. FRM ( 10-4-96 ) Page 2 of 2
A RESOLUTION ADOPTING LAND USE ASSUMPTIONS FOR THE CITY OF DENTON
THROUGH THE YEAR 2009 RELATED TO FINANCING CAPITAL IMPROVEMENTS
THROUGH THE IMPACT FEES IN ACCORDANCE WITH CHAPTER 395 OF THE LOCAL
GOVERNMENT CODE, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, land use assumptions have been developed and service areas have been de-
hneated as prescribed by Chapter 395 of the Texas Local Government Code, and
WHEREAS, on June 2, 1998, the City Council considered these land use assumptions
and designated serrate areas m an advertised public hearing held m accordance with Chapter
395, and any member of the pubhc who was interested ~n the matter had an opportunity to be
heard and present evidence for or agmnst the land use assumptions, and
WHEREAS, all requirements of advertisement and notification regarding such action
have been met in accordance with Chapter 395, including the fact that the land use assumptions,
the t~me penod of the projections, and a descnptlon of the general nature of the capital improve-
ment facilities that may be proposed were made avmlable to the public on or before the date of
the first publication of the notice of heanng, and
WHEREAS, the Denton Capital Improvement Advisory Committee, appointed in accor-
dance with the requirements of Chapter 395, on April 22, 1998 recommended that the City
Council adopt these land use assumptions, and
WHEREAS, the City Council deems it m the public ~nterest to adopt the land use as-
sumptions relatmg to the possible adoption of impact fees to finance water and wastewater capi-
tal ~mprovements, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the facts and recitations contamed in the preambles of this resolution
are hereby found and declared to be tree and correct
SI~CTION H That the City Council hereby adopts the land use assumptions recom-
mended by the Denton Capital Improvements Advisory Committee on April 22, 1998, which
land use assumptions are attached to and made a part of this resolution for all purposes as Exhibit
A, projecting changes in land uses, denslt~es, intensities, and population through the year 2009 in
Denton for the purposes of planning for and financing water and wastewater capital improve-
ments through impact fees
SECTION III That the City Council hereby adopts the service area dehneat~ons attached
as Exhibits A and B to the attached land use assumptions
~ That th~s resolution shall become effective lmmedmtely upon ~ts passage
and approval
/ ,~ASSED ANI~APPROVED by the C~ty Councd of the C~ty of Denton, Texas, this the
~97--~rt day of~.~.~, 1998
J~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
EXHIBIT A
C~ty of Denton, Texes Lend Use Assumptions
Recommended for approval by the Denton Capital Improvements Advisory Committee
to City Council on April 22, 1998
Land Use Assumptions
Introduction
These Land Use Assumpbons have been developed as the bas~s for the preparation of
an ~mpact fee ordinance for system-wide water and wastewater capital improvements
according to the requirements of State law Impact fees must be developed ~n
accordance with Chapter 395 of the Texas Local Government Code In the State Code,
at 395 001(5), "Land Use Assumptions" must include a description of the serwce area
and projections of changes ~n land uses, densibes, ~ntens~bes, and population ~n the
serwce area over at least a ten-year period
The state law requirements for land use assumptions are summanzed as follows
1 Land use assumptions as defined by Section 395 001(5),
2 T~me penod of projections,
3 Description of general nature potential capital improvement fac~hties, and
4 An easily understandable map of the service areas
The ten-year planning honzon used in developing the Land Use Assumptions ~s 1999-
2009 Growth projecttons presented In this report are based on work completed under
contract for the City of Denton by Rust Environmental and Infrastructure, Inc, a Dallas
company, including the population forecasts contained ~n a recent report The forecast
projects a three (3) percent annual Increase from 1997 through 2002 and a five (5)
percent annual ~ncrease from 2003 through 2009 See Exhibit C
These over-all growth forecasts for the City are reflected in the Land Use Assumptions
for the City's Water and Wastewater CCN servtce areas A CCN is a "Certificate of
Convemence and Necessity" that must be approved by the Texas Natural Resouces
Conservation Commission (TNRCC) before services may be provided to properties
w~th~n the designated area The water and wastewater service areas include all of the
area w~thin the C~ty plus different areas of the City's Extra-Territorial Jurisdiction The
Wastewater Service Area ~ncludes an area larger than the Water Service Area Maps of
these service areas are attached as Exhlbtt A (Wastewater) and Exhibit B (Water)
The product of these land use assumptions will be apphed to a projected ten-year
Capital Improvement Program (CIP) for the City's water and wastewater treatment
facihttes to develop an ~mpact fee that can be assessed to future development The
~mpact fee w~ll reflect the "fair share" of the cost of ehg~ble water and wastewater capital
~mprovements that will d~rectly benefit new development w~thin each service area
City of Denton, Texas Land Use Assumphons
Recommended for approval by the Denton Capital Improvements Advisory Committee
to City Council on April 22, 1998
Methodology
Land Use Assumptions w~ll be developed to project new Resldenbal and Non-
Residential development anticipated to occur from 1999 through 2009 Estimated
residential development is stated in terms of the number of new housing umts The
number of projected housing umts is directly related to the population forecast for the
C~ty provided by Rust Estimated non-resldenbal development is stated in terms of
square feet of development and ~s primarily related to the change In population, but also
reflects local and national standards for ratios of land use w~th~n commumties
Projected~ non-residential development ~s forecast for commercial, industnal and c~v~c
land uses C~vlc land uses include Institutions such as schools, unlvers~bes,
government facilities, churches, parks, streets, and other infrastructure
Residential housing units and non-residential development In square feet w~ll be
converted to demand for water and wastewater service and applied to the ClP
City of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Advisory Committee
to City Council on April 22, 1998
Residential Land Use Assumptions
To esbmate the number of new housing units expected as a result of forecast changes
~n populabon It is necessary to state assumptions about the following
· estimated populabon expected w~th~n the water and wastewater service
areas,
· estimated m~x of housing units - s~ngle family as compared to mulb-family,
· estimated percentage of population hving m group quarters such as
college dormitories, assisted living centers and ja~ls,
· esbmated percentage of population that w~ll live in s~ngle-fam~ly housing
units compared to the percentage that w~ll live in multi-family housing
units,
· estimated persons per housing unit for s~ngle-famlly and multi-family
housing umts, and
· changing trends In these demographic factors over time
Current Conditions
It ~s ;mportant to understand the current conditions w~th respect to each of these
residential land use assumptions
· The estimated 1997 populabon is 74,400 for the water service area and
80,300 for the wastewater service area The estimated 1997 population
for the City is 71,450
· In 1997, s~ngle family housing types accounted for 47% of all housing
units while multi-family and other types accounted for 53% The
percentage of single-family residenbal development is among the lowest ~n
the Dallas-Fort Worth metropolitan area
t997 Housing Units within the City of Denton
Type April, 1990~ April, 1990 thru 1997z t997
Single-Family 13,207 1,806 t5,013
Multi-Family & Other 15,584 1,141 16,725
TOTAL 28,791 2,947 31,738
· In 1990, more than 10% of Denton's populabon lived in group quarters
· In 1990, 59% of Denton's population hved ~n s~ngle-fam~ly housing, while
41% hved ~n multi-family and other housing units (not group quarters)
1990 Census, SFT-3
City of Denton, Building Permit data, April 1990 through December 1997
Crty of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Adwsory Committee
to City Council on Apr# 22, 1998
· In 1990, the estimated persons per housing umt, by type, was 2 8 persons
per single-family housing unit and 1 7 persons per multi-family and other
housing unit These numbers are estimated from 1990 census data that
shows 2 7 persons per unit for owner-occupied housing, 3 1 persons per
family household, 2 0 persons per unit for renter-occupied housing, and
1 4 persons per non-family household
Projected Conditions
The process for achieving year 2009 non-residential land use ~n terms of square feet of
new development from an estimate of new housing units developed dunng the per~od
1999 through 2009 is as follows
RESIDENTIAL HOUSING UNITS
Forecast of Population
Persons per Housing Type
Housing Unit M~x
Persons per Housing Umt
New Housing Units
Following are the assumed factors used to denve an estimate of the number of new
housing units for the penod 1999 through 2009
ESTIMATED POPULATION BY SERVICE AREA
WATER CCN WASTEWATER CCN
YEAR SERVICE AREA SERVICE AREA
1999 78,900! 85,200
2009 121,400 131,00
Over the,ten-year period it Is anticipated that the Denton area w~ll develop more single
family housing umts than multi-family housing umts, mowng to an esbmated 50% level,
rather than 45%, of all housing units In the area that are single-family housing umts To
City of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Adwsory Committee
to Clty COunc# on Apr# 22, 1998
do so, 55% of all new housing units must be single family housing To put this in
perspective, In 1996 and 1997, only 38% of all housing umts completed ~n the C~ty were
s~ngle-family units However, It appears that the number of smgle-fam,ly building lots
recently platted w~ll begin to be developed very soon and it ~s esbmated that s~ngle-
family resldenbal development will overtake multi-family residenbal development
ESTIMATED MIX OF HOUSING TYPES
YEAR SINGLE FAMILY MULTI - FAMILY
1999 47% 53%
2009 50% 50%
In 1990, more than ten percent of the city's population lived in group quarters, such as
college dormitories, elderly housing, and institutions It is estimated that the rate of
growth for population hvlng in housing will exceed the rate of growth for population living
~n group quarters, thus the percentage of population hwng in group quarters ~s expected
to decline by 2009 Ten percent of the city's population living in group quarters in 1990
accounted for {},994 Seven percent of the wastewater service area population in 2009
would be 9,170
ESTIMATED PERCENTAGE OF
POPULATION IN GROUP
QUARTERS
1997 9%
2OO9 7%
The density of residential land use Is Indicated by the ratio of single-family to multi-
family housing units The development of single-family housing units is expected to
increase at a greater rate than multi-family housing, and the average household size for
single-family units is greater than multi-family It is therefore anticipated that the
percentage of population living in single-family housing will increase from the 1990 rate
of 59%
ESTIMATED PERCENTAGE OF POPULATION
BY HOUSEHOLD TYPE
YEAR SINGLE FAMILY MULTI - FAMILY
1999 59% 41%
2009 63% 37%
The intensity of residential land use Is indicated by the number of persons per housing
umt The local and national trend toward smaller households is expected to continue
C~ty of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Advisory Committee
to C~ty Counc# on Apr# 22, 1998
ESTIMATED PERSONS PER UNIT
YEAR SINGLE FAMILY MULTI - FAMILY
1999 2 8 1 7
2009 2 7 1 6
Applying each of these factors to the forecast population for water and wastewater
service areas yields the estimated number of s~ngle-fam~ly and multi-family housing
units for the period 1999 through 2009
RESIDENTIAL LAND USE ASSUMPTIONS
WASTEWATER CCN SERVICE AREA WATER CCN SERVICE AREA
CHARACTERISTIC
1999 2009 Change 1999 2009 Change
Populabon 85,200 131,000 45,800 78,900 121,400 42,500
Populabon in Group 7,700 9,200 1,500 7,100 8,500 1,400
Quarters
Household Population 77,500 121,800 44,300 71,800 112,900 41,100
I
Single Family 45,900 76,400 30,500 42,500 70,800 28,300
Multi-Family& 31,600 45,400 13,800 29,300 42,100 12,800
Others
Single Family 16,400 28,300 ~ tt,900 15,275 26,255 t0,980
Dwelling Unlts
MultI-Famllyl & Other 18,600 28,300 9,700 17,225 26,255 9,030
Dwelling Unlts
City of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Advisory Committee
to Clty Counc# on Apr# 22, 1998,
Non-Residential Land Use Assumptions
To estimate the amount of commercial, Industrial and c~vlc development expected as a
result of forecast changes In population it Is necessary to state assumpbons about the
following,
· estimated population expected within the water and wastewater serwce
areas,
· ratio of developed land by type of land use, In the city and from nabonal
studies,
· estimated land use rate for residenbal development,
· estimated ratio of non-residential land uses to residential land use,
· estimated floor area per acre of non-resldenbal land uses, and
· changing trends ~n these land use factors over bme
Current Conditions
It is ~mportant to understand the current conditions with respect to each of these non-
resdential land use assumptions
· In 1997, data from the North Central Texas Council of Governments
(NCTCOG) shows the following land uses w~thln the City of Denton
1997 Land Use within the City of Denton
% of % of
Land Use Acres All Land Developed Land
Residential 6,688 18 7 50 7
Single-family 5,513 15 4 41 $
Multi. family/other 1,175 3 3 8 9
Commercial 1,235 3 5 9 4
Industrial 1,167 3 2 8 9
Civic 4,094 11 5 31 0
Total Developed 13,184 36 9 100
Total Undeveloped 22,547 63 1 --
Total 35,731 100 --
In 1992, the American Planning Association produced a survey of land
use ratios for cities throughout the country Thru allows some companson
for the 1997 Denton data
C~ty of Denton. Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Advisory Committee
to C~ty Council on Apn122, 1998
Land Use Ratios
1997 Local and 1992 Nabonal Data3
Residential (SF) Commercial Industrial Civic
1997 Denton 52 (42) 9 9 31
1992 Small Cibes4 52 (41) 10 7 31
1992 Cities 50K-90K 50 (39) 9 12 30
1992 Large Cibes~ 48 (38) 10 10 32
1992 Cibes 100K~200K 47 (35) 9 7 37
· In 1997, within the City of Denton and assuming there were no housing
units located on land specified as non-residential use, there were 15,015
single-family housing units on 5,504 acres, a rate of 2 7 units per acre
There were 16,725 multi-family and other residential units on 1,175 acres,
a rate of 14 2 units per acre Overall, there were 31,740 housing units on
6,688 acres of residential land. a rate of 4 75 housing umts per acre
1997 Housing Units per Acre
Units Acres~ UmtslAcre
Single-Family 15.013 5,504 2 73
Multi-Family & Others 16,725 1,175 14 23
TOTAL 31,738 6,679 4 75
· Applying the area of each type of non-residential land use to residential
land use and multiplying by the number of housing units per acre of land,
a ratio expressed in the number of housing units required to support an
acre of commercial, industrial and civic land use can be developed
1997 Land Development Rate
Commercial Industrial Civic
Housing umts needed
to support an acre of 25 7 27 2 7 8
land
· The current City of Denton zoning code allows a 2 1 floor area ratio on
commercial and industrial land In other words, on one acre of
commercial or Industrial land as much as 87,000 square feet of floor area
~s allowed to be developed However, a more pracbcal development
~ntenslty has been a floor area of 0 25 1 for commercial and 0 4 1 for
industrial land uses
Bringing Land Use Ratios into the '90s, APA Memo. August 1992
Small Cities are those in the survey with population less than 100,000
Large C~ties are those in the survey with population over 100,000
NCTCOG data, 1998
C~ty of Denton, Texas Lend Use Assumptions
Recommended for approval by the Denton Cepital Improvements Advisory Committee
to City Council on April 22, 1998
Projected Conditions
The process for achieving year 2009 non-residential land use ,n terms of square feet of
new development from an estimate of new housing umts developed dunng the penod
1999 through 2009 ~s as follows
NON-RESIDENTIAL LAND USE
Housing Units
Housing Un~ts per Acre of N-R Land Use
New Square Feet of Development per Acre
Square Feet of N-R Development
Following are the assumed factors used to derive an estImate of the amount of new
non-residential development for the period 1999 through 2009
ESTIMATED POPULATION BY SERVICE AREA
WATER CCN WASTEWATER CCN
YEAR SERVICE AREA SERVICE AREA
1999 78,900 85,200
2009 121,400 131,00
It is anticipated that over time, the percentage of area devoted to residential and
commercial development within the service areas w~ll Increase and the percentage of
area devoted to Industrial development will decrease It is assumed that most
commercial, industrial, and civic development will take place w~thin the boundaries of
the C~ty of Denton
Estimated Percent of Developed Land in Service Areas
Year Single- Multi- Commercial Industrial C~wc
family family
1999 42 0 9 0 9 5 8 5 31 0
2009 43 0 10 0 10 0 8 0 29 0
City of Denton, Texas Land Use Assumptions
Recommended for approval by the Denton Capital Improvements Adwsory Committee
to C~ty Counc# on April 22, 1998
It is anticipated that over time, res~denbal development m the area w~ll become denser
than the numbers indicated in 1997 For future development, it ~s estimated that single-
family residenbal housing will develop at a rate of 4 units to the acre (compared to 2 7)
and multi,family residential housing will develop at a rate of 20 units per acre (compared
to 14 2)
The density of non-residential land use is indicated by the relabonsh~p between
residential and non-residential land used As residenbal and non-residential
development in the water and wastewater service areas becomes denser than the
patterns developed over the past one hundred years, the number of housing units
required to support an acre of non-residential land use can be expected to increase
However, commercial land use is expected to remain proportional to residential land
use
1999
Housing Units per Acre of Non-Residential Developed Area
(Calculated on the basis of 100 developed acres)
Single-Family Housing 42 acres (42%) x 4 units/acre = 168 units
Multi-Family Housing 9 acres (9%) x 20 units/acre = 180 units
Total Housing 348 units
Commercial 348 units + 9 5 acres (9 5%) = 37 umts per acre
Industnal 348 units + 8 5 acres (8 5%) = 41 umts per acre
Civic 348 units + 31 acres (31%) = 11 units per acre
2009
Housing Units per Acre of Non. Residential Developed Area
(Calculated on the basis of 100 developed acres)
Single-Family Housing 43 acres (42%) x 4 units/acre = 172 umts
Multi-Family Housing 10 acres (10%) x 20 units/acre = 200 umts
Total Housing 372 un~ts
Commercial 372 units + 10 acres (10%) = 37 units per acre
Industnal 372 units + 8 acres (8%) = 47 units per acre
C~vlc 372 units + 29 acres (29%) = 13 un~ts per aore
City of Denton, Texas Lend Use Assumptions
Recommended for approval by the Denton Capital Improvements Adwsory Committee
to City Counc# on Apr# 22, t998
Estimated Non-Rseldentlal Land Development Rate
(Housing units per acre of non-resldenbal land)
Commercial Industrial C~wc
1999 37 41 11
20O9 37 47 13
The ~ntenslty of non-residential land use Is Indicated by the amount of floor area
developed per acre of land It can reasonable be expected that commercial and civic
~ntens~ty of land use will Increase by approximately 20%, but that Industrial land use
Intens;ty may be expected to remain approximately the same The table also indicates
the relative ,ntenslty of land use among each of the non-residential land uses, w~th
~ndustnal, land developed most Intensely, followed by commercial and civic, with ~ts high
percentage of parks and other public areas, not very Intensely developed
Estimated Non-Residential Land Development Rate
(Percent of floor area per acre of non-residential land)
Commercial Industrial Ciwc
1999 25 40 5
2O09 30 40 6
Applying each of these factors to the forecast population and housing umts for water
and wastewater service areas yields the estimated amount of non-res;dent~al
development, as measured in square feet, for the period 1999 through 2009
C~ty of Denton, Texas Land Use Assumpbons
Recommended for approval by the Denton Capital Improvements Adwsory Committee
to C~ty COuncil on Apd122, 1998
NON-RESIDENTIAL LAND USE ASSUMPTIONS
I
WASTEWATER CCN SERVICE AREA WATER CCN SERVICE AREA
CHARACTERISTIC
1999 2009 Change 1999 2009 Change
Population 85,200 131,000 45,800 78,900 121,400 42,500
Housing Un~t~ 35,000 56,600 21,600 32,500 52,510 20,010
Land Use (Adres)
Commercl"l 950 1,550 600 900 1,400 500
Industrial ' 850 1,200 350 800 1,100 300
C~wc 3,200 4,350 1,150 3,000 4,000 1,000
Floor Area (Million 8q Ft.)
Commercial 10 3 20 3 ~'10.0 9 8 18 3
Industrial ' 14 8 20 9 '~6.t 13 9 19 2 ~'5.3
C~vic ~ 70 114 ~4.4 65 104 ~,~3.9
I
RESIDENTIAL LAND USE ASSUMPTIONS
WASTEWATER CCN SERVICE AREA WATER CCN SERVICE AREA
CHARACTERISTIC
1999 2009 Change 1999 2009 Change
Population 85,200 131,000 45,800 78,900 121,400' 42,500
Population inlGroup 7,700 9,200: 1,500 7,100 8,500 1,400
Quarters
I
Household POpulation 77,500 121,800 44,300 71,800~ 112,900 41,100
Single Family 45,900 76,400 30,500 42,500 70,800 28,300
Multi-Family & 31,600 45,400 13,800 29,300 42,100 12,800
Others
Single Family ~
16,400 28,300 ~1,9~0 15,275 28,255 '19,986
Dwelling Unlt~
MUlti.Family & Other " ~ ~ '
Dwelling Unlts 18,600 28,300 ~9,700 17,225 26,255 9,0301
EXHIBIT A
Water CCN
A RESOLUTION APPROVING A RIGHT-OF-WAY USE AGREEMENT BETWEEN THE
CITY OF DENTON, TEXAS AND HILLS OF ARGYLE MONTICELLO, LTD, AND
DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the C~ty Council of the C~ty of Denton hereby approves a Paght-of-
Way Use Agreement between the City of Denton and Hills of Argyle Monticello, Ltd,
substantmlly tho same as the agreement attached hereto and incorporated by reference hereto,
allowing ,the installation of privately mmntamed landscape features m the pubhc right-of-way at
the H~lls of Argyle Subd~wsmn but hm~ted to landscaping, ~mgat~on and decorative fencing and
stone work, and the C~ty Manager ~s hereby authorized to execute said Agreement on behalf of
the C~ty
SECTION II That th~s resolution shall become effective ~mmedmtely upon ~ts passage
and approval
J C~ MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
MA¥-01-98 09 44 AM GREG EDWARDS 9405910562 P 02
THE STATE OF TEXAS f
RIGHT-O~r~AYUSE AGREEME}~
COUNTY OF DENTON ~
That the City of Denton~ h~reinafter Feferred to as "City" do~,s
consent and agree to per~it/~CJ~.v,~._~2~t~__6~! hereinafter referred
to as "Applicant", to uss ~-~ig'h~-of-way'~edicated to City, such
right-cf-way being described in Exhibit No .1 attached hereto, for
the purposes of ~,$W~_./~, ,~,~. ~:~. ~~ ~/~u~on the
following conditi0'~f~U' v .
I.
That APPLIC~T, his successors or assigns shall maintain and
keep i~ sightly condition all of the right-of-way area and the
improvements situated thereon; and that CITY mhall not become
resDonmible for such maintenance at any time in the future.
II.
That APPLIC~T mhall and does hereby agree to indemnify
hold ha~less CITY from any an~ all damages, loss or liability
any ki~ whatsoever by reason of injury to ~roperty or third
occasioned by its use of the right-of-way or act of omlGmion,
glatt ~= wrongdoing of APPLIC~T, his officers, agents, employees,
~nv~tees or other ~ersons, with regard to the improvements and
maintenance of such improvements; and the APPLIC~T shall, at
own comt and expense, defend and protect CITY against any and all
such claims and demands.
III.
That APPLIC~T shall ~urchame and maintain Co~ercial General
Liability insurance naming the CITY as an "additional insured" for
damage~ arising from the con~ruotion and maintenance of the
provements authorized above with a limit of not lemm then
$250,000.00 for each 9e=so~ and $500,000,00 for each single
occurrence for bodily injury or death and $100,000.00 for each
single occurrence for injury to or destruction of property.
IV.
That APPLIC~T shall arrange for all activities and improve-
ments l~ the right-of-way to be ~iscontinued and/or removed, at the
d~rection of CITY, within thirty (30) days of notification by CITY,
that ~he City Council has directed the use of the right-of-way
the APPLIC~T be discontinued; and the cost amscc~ated with the
discontinuing of such activities, and the removal of such ~mprove-
merits, ms well as property a~aoem~ to %he ri~ht-of-wa~ neces-
sitated by such discontinuation of the Fight-of-way use, shall be
borne by the APPLIC~T.
MAY--e1--98 09 45 AM ~REG E~WAR~S 9405910562 P ~
That APPLICANT, his successors or assigns ~hall not seek com-
psmsation from CITY for loss of ~he vslue of the improvements ma~e
hereunder when such improvements ars required to be removed By
APPLI ~NT,
VI,
This Agreement shall be filed of record in the Deed Records 0f
Den=on County, TeMa~, and ~hall bind all future owners of ~his lot
and shall for ail purposes be considered a covenant running wl~h
~he land,
IN TESTIMONY ~EREOF, APPLiC~T execute~ this Right-of-way
A RESOLUTION ESTABLISHING THE MAXIMUM RATES THAT MARCUS CABLE
ASSOCIATES, L L P MAY CHARGE ITS DENTON CABLE TELEVISION SUBSCRIBERS
FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT, ESTABLISHING A
MAXIMUM HOURLY SERVICE CHARGE, PROVIDING A SEVERABILITY CLAUSE,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton ("City") is the Grantor of a Franchise Ordinance
executed on or about November 15, 1988, by and between the City and Sammons
Commtmlcatlons, Inc ("Sammons"), which the City, by ordinance on September 19, 1995,
approved the transfer of the Franchise Ordinance along with attached amendments to Marcus
Cable Associates, L L P ("Marcus"), and
WHEREAS, on May 17, 1994, the City Council passed Resolution No R94-019
authorizing the regulation of basic service tier rates and related equipment, installation, and
service charges for any cable television system operating within the City in accordance with the
applicable Federal Communications Commission ("FCC") regulations, and
WHEREAS, on July 18, 1997, the City Council passed Resolution No R97-027
authorizing changes in the rates that Marcus may charge its Denton cable television subscribers
for the basic service tier, associated equipment, and installation charges, and
WHEREAS, the City, pursuant to the Cable Consumer Protection and Competition Act of
1992 ("Cable Act") and the rules and regulations adopted thereunder by the FCC and other
applicable laws, is certified as a franctusmg authority to regulate the rates for the basic cable
service, equipment, and installation rates, and
WHEREAS, in accordance with Section 8-136 "Rates", of the Code o f Ordinances of the
City of Denton, Texas and in accordance with Section XXI "Rates" of the Franchise, Marcus
filed a petition with the City on or about February 27, 1998, along with FCC Forms 1205 and
1240, in conformance with this section and all applicable laws, requesting a change in its basic
cable service, equipment, and installation rates as above described, which the City is certified to
regulate, and
WHEREAS, the City held a public heanng in conformance with Section 8-136 of the
Code of Ordinances of the City of Denton on May 26, 1998, after all interested citizens had been
properly notified in accordance with the law, and all interested members of the public had an
opportunity to be heard, and
WHEREAS, as the local regulator of rates for the basic service tier, the City desires to
make a rate ruling on the proposed rates submitted by Marcus to be charged to subscribers of the
basic service tier, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
~ Findings
(1) The City ~s the Grantor of a Franchise Ordinance executed on or about November 15,
1988, by and between the C~ty and Sammons
(2) The Franchise Ordinance, as amended, was transferred to Marcus, in accordance with
the terms and conditions of that ordinance on or about September 19, 1995
(3) In accordance with the apphcable provisions of the Cable Act, the rules adopted by
the FCC, Chapter 8 of the Code of Orthnances of the C~ty of Denton, Resolutmn No R94-019,
and other applicable laws, the City has undertaken all appropriate procedural steps to regulate the
basic cable service tier, related equipment, and installation charges
(4) In accordance with the applicable FCC regulations, on or about January 7, 1994, the
C~ty filed FCC Form 328 - Certfficatlon of Franchising Authority to Regulate Basle Cable
Service Rates and Imtlal Finding of Lack of Effective Competition - with the FCC
(5) In accordance w~th applicable FCC regulations, on or about May 17, 1994, the City
passed and adopted a resolution providing for the regulation of rates charged by cable television
operators within the City for the basic service tier and related equipment and Installation charges
(6) On or about February 27, 1998, Marcus submitted FCC Form 1205 and Form 1240 to
the City
(7) On or about May 26, 1998, the City Council heard recommendations from the
consultant, C2 Consulting, at a pubhc meeting, concerning Marcus' rate request
(8) Pursuant to FCC regulations and applicable law, on or about May 26, 1998, the City
held a pubhc heanng and gave the public adequate opportunity to comment on the proposed rate
request Prior to the pubhc hearing, the City regularly conducted meetings which were open to
the pubhc, m accordance with the Texas Open Meetings Act, TEX GOV'T CODE ch 551, and
provided an opporttunty for interested parties to present information to the City during the
meeting of May 26, 1998, or at prior public meetings
(9) The City must act upon the pending rate request consistent with current FCC rules
and regulations and other applicable laws
~ Conclusions
(1) That for the period beginning June 1, 1998, until May 31, 1999, the maximum
permitted rate for basic cable service (these numbers do not include the 5% franchise fee) of
$9 44 per month, is approved
Page 2
(2) That for the period beginning June 1, 1998, untd May 31, 1999, the maximum
permitted charge for ~nstallatlon and hourly serwce (these numbers do not ~nclude the 5%
franchise fee) of $26 81, is approved
(3) For the period beginning June 1, 1998, until May 31, 1999, the maximum fee (these
numbers do not include the 5% franchise fee) for leased customer eqmpment of remote control
- $0 18, non-addressable converter - $1 19, addressable converter - $3 22, advanced analogue
converter - $3 43 per month, and changing tiers - $2 00, ~s approved
~ Incorporation of Findings and Conclusions That the Findings and
Conclusions set forth ~n Sections I and II of th~s resolution are found to be true and correct and
are made a part of tfus resolution for all purposes
~ Orders for Action Based on the foregmng Findings and Conclusions, the
City Council hereby enters the following orders adopting the rates
(1) Pursuant to current FCC regulations and apphcable law, for the period commencing
June 1, 1998, until May 31, 1999, or until further order of the City, Marcus w~ll be permitted to
charge a maximum rate for the basic cable service of $9 44 per month (these numbers do not
include the 5% franchise fee)
(2) Pursuant to current FCC regulations and apphcable law, for the period commencing
June 1, 1998, until May 31, 1999, or until further order of the C~ty, Marcus w~ll be permitted to
charge maximum equipment and installation rates (these numbers do not ~nclude the 5%
francfuse fee)
Ea_umment & Installation Maximum Permitted Rate
Hourly Service Charge $26 81
Remote Control $ 0 18
Converter (Addressable) $ 3 22
Converter (Non-Addressable) $ 1 19
Advanced Analogue Converter $ 3 43
Changing Tiers $ 2 00
(3) TI'ns resolution shall not be reconsidered should any further analysis pursuant to
future FCC rules and regulations result ~n or indicate fugher rates to subscribers, unless such
future FCC Rules and regulations mandate that the C~ty order such an upward adjustment
(4) The Cay Manager and the C~ty Attorney, or their designees, are hereby authorized
and directed to take action necessary to enforce the orders contmned ~n th~s resolution, ~ncludlng,
w~thout hm~tatlon, to execute and file w~th the FCC such certfficat~on form documents or other
Page 3
~nstmments or take any other actions as are now or hereafter may be reqmred by the FCC rate
regulations or applicable laws to enforce the rate mhng set forth herein, to defend this rate mhng
in any appeal to the FCC, administrative proceeding or ht~gaUon involving this matter
(5) That the City Secretary is hereby d~rected to send a certified copy of this resolution to
Marcus
~ That ~f any section, subsection, paragraph, sentence, clause, phrase or
word m tl~s resolution, or apphcatlon thereof to any person or c~mumstances ~s held lnvahd by
any court ~of competent junsdmtlon, such holding shall not affect the vahdlty of the remmmng
portions of this orchnance, and the City Council of the C~ty of Denton, Texas hereby declares it
would have enacted such rem~umng portions despite any such vahdlty
~ That the City Council has found and determined that the meeting at wtuch
thts resolution is considered is open to the public and that notice thereof was given in accordance
with the provisions of the Texas Open Meetings Act, TEX GOV'T CODE ch 551, as amended
~ That this resolution shall become effective ~mmedmtely upon its passage
and approval
PASSED AND APPROVED thls the /~'~ dayof ~~ ,1998
ATTEST,
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CIT~ ATTg~RNEY
Page 4
A RESOLUTION CANCELING THE REGULAR CITY COUNCIL MEETING OF JULY 7,
1998 AND THE CITY COUNCIL WORK SESSIONS OF JUNE 23, 1998 AND JULY 14,
1998, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, Section 4 1 of the C~ty Council Rules of Procedure (Or&nanee No 94-183)
reqmres that the Council meet at 7 00 p m on the first and third Tuesday of each month, or at
any other t~mes set by the Cotmefl, unless postponed or canceled for vahd reasons, and
WHEREAS, Section 2 05 of the C~ty Charter reqmres the C~ty Council to meet no less
frequently than once a month, and
WHEREAS, the Council deares to cancel the regular Council meeUng of July 7, 1998
and the Council work sessions of June 23, 1998 and July 14, 1998, due to the need for the
Council to have some time off from their very heavy work schedule at a time when a number of
members of the C~ty Council and the C~ty staff will be on vacatmn, and
WHEREAS, for the reasons indicated above, the C~ty Council deems ~t m the pubhc
interest that the regular Council meeting of the C~ty of Denton, Texas, scheduled for July 7, 1998
and the work sessions of the City of Denton, Texas scheduled for June 23, 1998 and July 14,
1998, be canceled, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
~ That the C~ty Council meetings of June 23, 1998, July 7, 1998, and July 14,
1998 are hereby canceled
~ That th~s resolution shall become effective ~mmedmtely upon ~ts passage
and approval
PASSED AND APPROVED th~s the day of ,1998
ATTEST
JENNIFIIR WALTERS, CITY SECRETARY
APPROVI~D AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
S \Our Documents~.esolutlons\98~eancel council meetm$8 doc
Page 2
A RESOLUTION NOMINATING A MEMBER TO THE BOARD OF MANAGERS OF THE
DENCO AREA 9-1-1 DISTRICT, AND DECLARING AN EFFECTIVE DATE
WHEREAS, the term of office of Pohce Cbaef Don Frankhn, a member of the Board of
Managers of the Deneo 9-1-1 D~stnct, will exptre on September 30, 1998, and
WHEREAS, Artmle 1432e, Seetton 5, V A C S prowdes that two voting members of the
Board of Managers of an Emergency Commumcataon D~stnct shall be appointed jointly by all c~t~es
and towns lying wholly or partly with the chstnct, and
WHEREAS, the C~ty of Denton, Texas w~shes to nominate a member to smd Board, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY RESOLVES
SECTION I 'l;hat the C~ty of Denton, Texas hereby nominates David Fowler as a member to
the Board of Managers of the Emergency Commumcat~on D~stnct of Denton County for a two year
term to commence October 1, 1998
SECTION II That ttus msolutaon shall become effectave lmmedmtely upon ~ts passage and
approval
J~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Next D oeument
RESOLUTION NO ~OqJ)_/~3~L
A RESOLUTION OF THE CITY OF DENTON, TEXAS AUTHORIZING THE SUBMISSION
OF AN APPLICATION TO THE CRIMINAL JUSTICE DIVISION OF THE OFFICE OF THE
GOVERNOR, STATE OF TEXAS, REQUESTING CONTINUED FUNDING FOR ONE (1)
JUVENILE/DOMESTIC VIOLENCE INVESTIGATOR AND ASSOCIATED TRAINING
AND SUPPLIES FOR A FAMILY SERVICES UNIT, AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, the City of Denton is ehgible to receive funds fi.om the Criminal Justice
Division of the Office of the Governor, State of Texas, and desires to increase the effectiveness
of the Denton Police Department's efforts to resolve problems associated with juvenile crime
and family violence, and
WHEREAS, in order to receive such funds, it is necessary for the Council of the City of
Denton to anthonze the submission of an application to the Criminal Justice Division of the
Office of the Governor, State of Texas, requesting continued funding for one (1)
juvenile/domestic violence investigator and associated triunmg and supplies to be dedicated to
the investigation of criminal offenses involving juveniles and family violence, and
WHEREAS, the Council of the City of Denton finds it in the best interests of the citizens
of the City of Denton, that the Family Services Unit be operated from 09/01/98 through
08/31/99, and
WHEREAS, the Council of the City of Denton has considered the proposed apphcatlon
for State and Federal Assistance for said project, in the amount of $37,867 to be submitted to the
Office of the Governor, Criminal Justice Division, and
WHEREAS, the Council of the City of Denton has agreed to provide matching moneys
for the said project in the amount of $24,750, or an amount equal to one-fourth of the total
project cost as required by the grant application, and
WHEREAS, the Council of the City of Denton has agreed that in the event of loss or
misuse of the Criminal Justice Division funds, the City Council assures that the funds will be
returned to the Criminal Justice Division in full, ?,IOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
ET~ The City Council of the City of Denton approves submission of the grant
application for the Family Services Unit to the Office of the Governor, Criminal Justice Division
(CJP 421) Program in the amount of $37,867 00
SECTION II. That the City of Denton, Texas, certifies that it is eligible to continue to
receive a funding allocation from the Criminal Justice Division of the Office of the Governor,
State of Texas, for one (1) investigator to be used in the ~nvestigat~on of criminal offenses
revolving juveniles and famdy v~olence and assocmted trmmng and supphes,
~ That the City Councd authorizes and d~rects the C~ty Manager, or his
demgnee, to represent and act on behalf of the C~ty of Denton m applying for and worlang w~th
the Criminal Justice D~vmlon of the Office of the Governor, State of Texas, m regard to such
grant apphcat~on
~ That the Chief of Pohce shall forward a copy of this resolution to the
Cmmmal JusUce Diwmon of the Office of the Governor, State of Texas
~ That thru Resolution shall become effective ~mmedmtely upon its passage
and approval
PASSED AND APPROVED th,s the~/°f'f day~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
RESOLUTION NO ~qJ7.- O.~'-
A RESOLUTION URGING THE 76TM TEXAS LEGISLATURE TO INCREASE APPRO-
PRIATIONS FOR ROADWAY MAINTENANCE AND IMPROVEMENTS, AND PROVID-
ING AN EFFECTIVE DATE
WHEREAS, roadway mmntenance and improvement is a core function of government,
and
WHEREAS, a functional surface transportation system is critical to the quality of life and
economic vitality of Texas, and
WHEREAS, current-level appropriations enable the Texas Department of Transportation
(TxDOT) to meet only about one-third of the maintenance, rehabilitation, and expansion needs
of Texas' roadways, and
WHEREAS, Texas ranks 47th nattonally m per capita highway spending and 1st m the
number of substandard bridges, and
WHEREAS, seventy eight percent of Texas roadways are ~n need of repmr or moderni-
zation, and
WHEREAS, the relative share of the state budget devoted to surface transportation has
incrementally declined from approximately 33% m 1960 to approximately 8% in 1997, and
WHEREAS, Texas should be increasing its level of ~nvestment in roads and bridges be-
cause this infrastructure is deteriorating from age and from increasingly heavy truck traffic and
because of greater demand from vehicle miles traveled growing faster than population, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
~ That the 76th Texas Legislature be and hereby is urged to increase the an-
nual appropnaUon to TxDOT for road and bridge maintenance, rehabilitation, and expansion by
$1 5 billion, approximately $800 million of which is estimated to be available from the new fed-
eral surface transportation program
~ That the 76th Texas Legislature be and hereby is urged to carefully exam-
me all options for providing the needed additional transportation funding, including increased
motor vehicle fuel tax collection efficiencies, indexing the motor vehicle fuel tax to track infla-
tion, dedicating to TxDOT all user fee revenues deposited to State Highway Fund No 006, im-
posing a,surcharge on newcomers through first time registration of a motor vehicle in Texas,
adjusting fees and taxes on heavy commercial vehicles to reflect more accurately the cost they
~mpose on matntmmng roads and bridges, and if necessary increasing the motor vehicle registra-
tion fee and/or fuel tax
~ That the City Manager is d~rected to transmit a copy of th~s resolution to
the offices of the Governor, Lieutenant Governor, Speaker of the House of Representatives, the
Chmrman of the Texas Transportation Commission, and chmrs of the following legislative com-
mittees Senate Committee on Finance, Senate Committee on State Affairs, House Committee
on Appropriations, House Committee on Transportation, House Committee on Ways and Means,
and House Select Committee on Revenue and Pubhc Education Funding, and to Congressman
Wflham Thomberry, Congressman Dick Armey, Senator Jane Nelson, Senator David Slbley,
Representative Mary Denny, Representative Jim Horn, and Representative Burt Solomons
~ That this resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED thls the ~]~ day of ~a' ~t ~. ,1998
JA~/IVlILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
~ COMMISSION MEMBE~''1
th~ G~_Co~¢fl,~ho~to co~d the memb~s of tho C~ ~ Bo~ds ~d
ho~
~o~iss~ons, NOW~ T~E~O~,
HE.BY ~SOL~S:
~ ~e re~g members of ~e Cl~$ Bo~ds ~d
,,Cx~ of Denton, be focally conv~yed to them
m a ~s fResolut~on upon the offic~E minutes of ~e CI~ of
Denton;
~doe~ ~hereby offict~ly ~d ~mcerely o~tond ~t~ be~t
1998
CI~g, SEC~T~Y
"D c ment
RESOLUTION NO
A RESOLUTION ADOPTING A FLOOD MITIGATION PLAN FOR THE CITY OF
DENTON, TEXAS, IN COMPLIANCE WITH THE NATIONAL FLOOD INSURANCE
REFORM ACT OF 1994 AS ADMINISTERED BY THE FEDERAL EMERGENCY
MANAGEMENT AGENCY FOR THE PURPOSE OF IMPLEMENTING A PLAN OF
ACTION FOR UPGRADING OR IMPROVING FLOODPLAIN MANAGEMENT AND
QUALIFYING FOR FEDERAL FINANCIAL ASSISTANCE, AND DECLARING AN
EFFECTIVE DATE
WHEREAS, on October 3, 1997, the Caty of Denton, Texas, entered anto a professaonal
servmes agreement wath Teague Nail and Perkins, Inc to prepare a City-wade Flood M~t~gatton
Plan in concert wath the City's Eng~neenng and Transportation Department to assast the Caty an
applying for federal grants admmastered by the Federal Emergency Management Agency
(FEMA) for flood mat~gataon actavmes, and
WHEREAS, Teague Nail and Perkins, Inc was d~rected to prepare a Flood M~t~gat~on
Plan an compliance w~th the standard planmng process set forth an the Commumty Ratmg System
(CRS) Apphcat~on, FIA 154 (July 1996 edataon), and
WHEREAS, the Denton Caty Council held a pubhc heanng on August ~/ , 1998 to
receive addataonal input from the pubhc regarding the adequacy of the proposed flood matlgat~on
plan, and
WHEREAS, the Denton Caty Counml finds that the Flood Matlgatmn Plan attached to thru
resolutaon has been prepared in comphance wath the CRS Apphcat~on, FIA 154, gmdehnes and
the adoption of the plan as essentml to protect and ~mprove the qualaty of life in the City of
Denton, Texas, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Flood Matlgataon Plan prepared by Teague Nall and Perkins, Inc an
concert w~th the Caty Engmeenng and Transportataon Department, whmh as attached hereto and
made a part hereof for all purposes, ~s hereby adopted as the Flood M~tagataon Plan for the Caty
of Denton, Texas, and such plan shall be utflazed by the Caty ~n (a) upgrading or lmprowng
floodplmn management w~than the Caty and (b) quahfyang for federal financml assistance an
comphanee wath the Nataonal Flood Insurance Reform Act of 1994 as admamstered by the
Federal Emergency Management Agency
SECTION II. That thas resolution shall become effectavely ~mmedmtely upon its passage
and approval
PASSEDAND APPROVED thlsth¢ ~/'~ day of ~~ ,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
CITY OF DENTON
FLOOD MITIGATION PLAN
1998
MAYOR CITY COUNCIL
Jack M~ller Euhne Brock
Carl O Young, Sr
Ned Durrance
CITY MANAGER M~ke Cochran
Ted Benawdes Sandy Knstoferson
Rom Bensley
Prepared by
Ten~ue Nail and Perhns, Inc
915 Florence Street
Fo~ Wor~, rem ?6]02 ~11 ¢ ~1 Il ~ ~[~
J U L 1 6 1998
CITY OF DENTON
LE(3AL DEPT
CITY OF DENTON
FLOOD MITIGATION PLAN
1998
TABLE OF CONTENTS
INTRODUCTION 3
PLAN PREPARATION PROCESS 3
EVALUATION OF EXISTING HAZARDS
PLAN GOALS 6
EVALUATION OF EXISTING FLOODPLAIN MANAGEMENT PROGRAM 7
EVALUATION OF POTENTIAL REMEDIES 11
ACTION PLAN 1
CITY COUNCIL ACTION 19
DOCUMENTS INCORPORATED AS APPENDICES 20
APPENDrx X - EROSION CONTROL GUIDELINES 21
CITY OF DENTON
FLOOD MITIGATION PLAN
INTRODUCTION
The City of Denton has untlated preparaUon of tbs Flood M~tlgntion Plan (FMP) as part of its
long term and ongoing effort to provide the cittzens of the City of Denton w~th the best possible
flood prote~on With passage of the National Flood Insurance Reform Act of 1994, Congress
authorized the Federal Emergency Management A~ency (FEMA) to estabhsh a federal program
for prowdln~ financial assistance to States and commumtles for food rmtigation planning and
actiwties One of the requirements for partlcip~on m the program is preparauon of the FMP
The plan includes an evaluation ofex~stmg flood hazards, rewew ofex~stmg floodplain
management actlwties,-and a plan of action for upgrading or improving floodplain management
where necessary
The City of Denton is a moderately sized (pop 70,000+), growing commumty in North Central
Texas, Spread around a strdoag county courthouse and iustonc central business distr~ct, Denton
occupies a strate~¢ location at the north end of the Dallas-Fort Worth Metroplex area Denton is
home to two ma~or umversitles, the Umverslty of North Texas and Texas Woman's Umverslty,
and a h~ghly regarded pubhc school system Lake Ray Roberts and Lake Lew~sv~lle adJoin the
eastern side of the city, providing recreational opportumtles as well as water supply
The City of Denton is traversed by three major watersheds, namely, Cooper Creek, Pecan Creek
and I-l~ckory Creek Major flooding is generally produced by frontal type thunderstorms
especially prevalent during the spnng and summer
Considerable effort has been expended over the years to numnuze flood damage Two Soil
Conservation Semce (SCS) reservoirs have been constructed on Pecan Creek and ~ts major
tributary, North Pecan Creek Slgmficant portions of Pecan Creek, North Pecan Creek and
Cooper Creek have been unproved to increase the capacity to convey flood water Several flood
control projects are m the design phase at th~s t~me
The City has been very active m management of the floodplain, including part~cipat~on m the
Commumty Rating System (CPS) adrmmstered by FEMA Wltlun the last eight years, all three
major streams have been studied m detail, addressing both ex~stmg conditions and future full
developmant ofthe respective watersheds Additionally, a Master Drainage Plan for the entire
city has been developed to address storm drmnagn needs on a more localized basis It is used m
the development process to ensure that dratna~e issues are adequately addressed
A Flood Damage Prevention Ordinance, a detaded Drainage Design Criteria manual and
comprehensive Subdiv~slun and Land Development Regulations are all used to ~uide new
development m such a way as to numnuze mcreesed flooding risks due to new development
Page -1-
In ad&uon, a recently updated Emergency Management Program provides a comprehensive plan
for dealing w~th a variety of emergencies, including flooding situations
The City of Danton has been, and continues to be, proactive m its effort to provide a
comprehensive watershed management program Preparation and use of the Flood Mitigation
Plan is expected to bnng an even higher level of cohesion and/hrection to watershed management
in Denton
Page -2-
PLAN PREPARATION PROCESS
Preparataon of the ~ IS pnmanly a joint effort between the consultant (Tea~ue Nail and
Perkins, Inc ) and the staffofthe En~ncenng & Transportauon Department of the City Input
and Information will be sohcited throughout the plamung process from a number of sources,
mclu&ng the City ofDanton's Execuuve Staff, the public, other agenaes involved In floodplmn
management, the Plannmg & Zoning Comnusslon, and the City Councd The following is an
outline of tho planmng process
A. Compilation of Brastmg Data
The City of Denton has already prepared numerous documents that are directly related to
the preparation of the FlVlP These documents are referenced as Appendices and are hstad
m the Table of Contants They include drmnage studies, ordinances, regulations and
des~sn criteria
B Not~qcatlon of Other Floodplmn Management Agenaes
Early m the plamung process, the following agencies have been not~fied of the intent of the
City to develop a Flood 1~htlgatlon Plan They have been offered the opportumty to make
any su~esUons or promde any Input they may have related to floodplmn management m
Denton
Diane Calhoun
Federal Emergency Management Agency
Re, on VI, Federal Center
800 North Loop 288
Denton, Texas 76201-3698
TNRCC
Mr Samos M~rabal
State NFIP Coordinator
Texas Natural Resource Conservation Comnusslon
Dam & Flood Safety Section
P O Box 13087
Au~n, TX 78711
Denton County
Mr Steve Rolhns, D~rector of County Planmng
Denton County
306 North Loop 288
Denton, TX 76201
Page-3-
Public Notices and Advertisements
An advertisement was placed m the Denton Re¢ord-Chromcle on Sunday, December 28,
1997, providing general reformation to the pubhc and sohcmng information and feedback,
especially related to erastlng flooding problems Pomts of contact have been provided for
interested citizens to call or write w~th su~esuons, eyasting flooding information, or for
further information Mr David Salmon, the City Floodplain Adnumstrator, has been the
primary point of contact A copy of tins advertisement is attached No comments were
received by the City staff'as a result of this advemzement
Analysis of Erasting Problems and preparation of a draft FMP
Using input and information from the sources outhned above, an evaluation of erasting
flooding hazards and problems was undertaken Because the City of Denton has been
lughly active in floodpimn management, many flood rmtlgatlon activities are already in use
These were evaluated to assess their effectiveness, and numerous other possible actlwties
have been considered From the hst of emsting and potential rmtlgation actlwtles a draft
plan has been developed
Review of Draft NMP by Executive Staff
The draf~ FMP has been reviewed by the Executive Staff, wiuch consists of the City
Manager, the Deputy City Manager, and the Assistant City Managers of Operauons,
Finance and Utilities In addmon, a copy of the draft plan has been made avmlable for
public review and comment
Review of Draft FMP by Other Floodplain Management Agencies
A copy of the draft FMP has also been provided to the agencies notified above, for their
review and comment Their responses are attached where written
Revisions to DraR Plan
Based on comments by the staff, the pubh¢ and other agencies, the draft FMP has been
revised to its present form
Review and approval of FMP by Pianmng & Zomng Comnusslon
The FIVlP has been presented to the Planning & Zomng Comnussion for their review and
recommendations
Review and adoption of FMP by City Council
The FIVIP was presented to the City Counal on ,1998 and approved
ImPlementation of Plan by City Staff
In~plementation of the FMP will be primarily the responsibility of the Engineenng and
Transportation Department
Page-4-
DENTON COU~I~Y PLANN~G DEPARTMENT
306. N ~p 288 ~ T~ 76201 (940) 565-~24 F~ (940) 565-5657
Ap~ 24; 1998
Ten~e, N~ & Per~
915 ~or~ St
~t Wo~ ~ 76102
~ Propon~ Ci~ off.ton ~ood ~8~on
De~ ~. ~o~
I have ro~ ~o pl~s for ~o ~ovo ~pfion~ proj~ ~d have no cnttc~ cements I
appreciate yo~ ~n to include D~on CounW ~ &e pwcess ~d m avmlable for ~y ~s~
you may need ~ you
Sinc~ ly, ,
Stye RolHn~ C ~ ~
D~rector
Barry R McBee,
R B "RaJph" btarquez, ¢ommtsstoner
John M Baker,
Dan Pearson, gxecutt~Dtrector
TEXAS NATURAL I ESOURCE CONSERVATION
Protecting ?e. ras_bll Reductng and Pr~venhr~ Polluhon
l~ebruary I1, 1998
Mr Gary Vickery, P E
Teague Nail and Perkins
Consulting Engineers
915 Florence Street
Fort Worth, Texas 76102
Re City of Denton
Flood Mmgation Plan
TNT No DEN97217
Dear Mr Vickery
Thank you for sending the copy of the draft of the Denton FMP It appears that the plan addresses
the pertinent issues necessary for sound floodpl~un management
Thank you again for keeping us abreast of your progress
M~ke Howard
MC 160
State Coor&nator's Office
P 0 Box 13087 · Austin, Texaz 78711-3087 * 512/239-1000 * lntemet address www tnrcc state tx us
EVALUATION OF EXISTING HAZ~ARD$
Floodin~ m Denton occurs pnmanly along the ma~or streams, namely, Cooper Creek, Pecan
Creek and I-hckory Creek, as well as their vsaous tributaries In recent years, all three of these
major stream systems have been studied m detail (Cooper - 1996, Pecan - 1996, I-hckory - 1989)
The results of those studies have been pubhshed and made avmlable to the public They are
attached'as appsachces to this FMP As can be seen on the Flood Insurance Pate Map (FIRM),
sigmficant pomons of the city are mundated h a 100-year storm event The FIRM maps show
the extent of the floodmg m a 100-year storm. Even in lesser storms numerous roadways are
inundated, restricting trAmc and emergency access
Major floods have occurred m Denton on s~verel occasions Floodmg in 1957 inundated the
entire I~ckory Creek floodplam and caused e0~enslve damage Reportedly, several homes were
swept away in the onruslung flood water In 1974 rmnfall rangmg fi.om 3 to 10 inches fell in a 24
hour period, causing considerable floodmg, numerous road closings, flooded homes and derailed
rmiway engines A Pacific cold front brought vadespread heavy rmns to North Texas m
November of 1996 B~unfall of up to five roches in a few hours agam caused numerous road
closings sad uadaspread floodmg In addition to these and other major storms, lesser storms have
periodically caused isolated flooding and road closings
Based on the current F~ map, nearly 3000 acres wit[un the city hn~ts of Denton would be
inundated in a 100-year storm Tlus figure m based on oxlstlng development conditions As
further development in the watershed occurs, this figure w~ll increase Literally hundreds of
buildings fhll w~thln the floodpl~un, mcludmg residences, commercial buildings, mdustnal facilities,
and portions of the central busmess dlstnct, as well as City Hall In addition to the obwous
damage potential when floodmg occurs, as well as the danger to the health and safety of the
ciUzens of Denton, flooding has sa econonuc enpact as well Undeveloped property that lies
witinn the floodplain can not be developed mthout meeting strict guidelines for rasing the
proposed structures above the 100-yeer flood elevation or prowding extremely costly
floodproofin8 measures Existing structures mthin the floodplmn cannot undergo substantial
remodehn8 without meetmg the floodproofi~ requirements The econonuc result of these
potentlal, floochn8 condit~ons is that areas of the commumty w~t[un the floodplmn face sigmficantly
hn~ted prospects for redevelopment The potential for redevelopment is the key to mmntannng a
healthy bumness sad resldentml enwronmen~ The recent studies referenced above were
comnnssioned w~th precisely the intention ofdeternumn8 what must be done to alleviate flooding
conditions sad restore the potential for both new development and redevelopment
Winle s~gmficent portions of the Pecsa Creek watershed are already fully developed, both I-hckory
Creek and Cooper Creek are expected to mpenence contmued development The Denton Plan
uall address future development trends throughout the city, including in and near the floodplam
It is anticipated that future development w~ be required to take place m such a way that
roadways wdl parallel the floodplmns, prov/dmg access for mamtenance as well as an open space
to Init flood exposure and risk Channel and creek crossmgs will be numnuzed to reduce
potential hazards end flow restrictions
Page -5-
PLAN GOALS
It ~s the intent of the Cny of Denton to develop a comprehensive watershed management plan,
ustng existing studies and data, and updating procedures where necessary The follovnng excerpt
from the City Code summanzes well the ann of the City tn developing a Flood Mitigation Plan
Statement of Purpose of the Flood Damase Prevention Ord,nance (City Code, Chapter 30)
It Is the purpose oftlus chapter to promote the public health, safety and general
welfare and to numnuze public and private losses due to flood condtuons tn
spectflc areas by prov, stons designed to
a Protect human life and health,
b Mlmmlze expendtture ofpubhc money for costly flood control proJects,
c Mlmnuze the need for rescue and relief efforts associated w~th flooding and
generally undertaken at the expense of the general pubhc,
d Minimize prolonged busmess mtermpuons,
e M~mnuze damage to public facdtUes and utlhUes such as water and gas
reruns, electrm, telephone end sewer hnes, streets and bridges located in
floodplmns,
f Help ma~nt~un a stable tax base by providing for the sound use and
development offloodprone areas tn such a manner as to rmmrmze future
flood blight areas, and,
Insure that potenUal buyers are notified that property is tn a flood area
(Ord No 78-1, 1-3-78)
Page -6-
EVALUATION OF EXISTING FLOODPLAIN MANAGEMENT PROGRAM
A logical starting point for the evaluation of possible rmttgauon acuvmes is to rexoew the
floodplain management and nuttgaUon acUwtles already in place The City of Denton has been
quite proactive in its floodplmn management act~wtlas, through a program of commumty
education and notification, through ordinances regulating development, and through techmcal
evaluation ofex~stmg floodmg condlttons The following is a summary of the floodplmn
management and mitigation pro.am currently m operation
Community Rating System (CRS)
The City of Denton is acUvely involved in the CRS program admimstered by FEMA This
program is designed to encourage commumties to take an active role in floodpl/un management
The CR$ rewards commumtleS that voluntarily take steps to reduce the ask offloo&ng or to
increase the effectiveness of flood insurance protection that go beyond the mimmum requirements
ortho NFIP Such commumties are rewarded fur these flood prevantion and m~tigatlon actlwties
vath dls~ounts on flood insurance for policyholders These act~wties can range from commumty
educaUon to development regulatlon~ to drainage system maintenance Prenuum reductions
resulting from thaso CPS actlwt~es range from five to 45 percent A commumty rating of 9
receives a five percent discount, winle a commumty rating of 8 w~ll have premiums reduced 10
percent, and so on to a maximum discount of 45 percent, for a rating of 1 The City of Denton
currently has a rating of 9 on the CRS scale, and has made application for a rating of 8
To put th~s rating in~o perspective, there are more than 18,500 commumties currently
participating m tha NFIP natlonvade Of these, just over nme hundred are participating m the
CRS Ofthase participating CRS commumtlas, the lughest classfl]cation currently achieved is a
rating of 5 (by only t~vo commumtles), resulting m premium reductions of 25 percent
The actlwt~es considered for application for premium chscounts prowde substantial benefit to the
commumty, even apart from the potential insurance premium savtngs Flood Insurance Agency
Executive Admimstrator Spence W Perry pr/used the work of the commumues in the CRS
program, saying "They have earned the CRS' award of lower flood insurance premiums as well as
peace of mind Thanks to the efforts of their local officials, they should experience less flood
damage in the future"
Capital Improvements Program (CIP) Public Hennngs
The CIP consists ofpubhc improvements projects such as dr/unage improvements, parks facilities,
street construction or reconstruction, or other projects constructed by the City for the pubhc
benefit A 5 Year CIP Plan is developed and published annually Public heanngs on the CH~ are
held twice each year (in February end May) by the City Council, the Plamung and Zomng
Commission, and the Pubhc Utdlty Board Tbas recumng pubhc hannng provides cit~zans a forum
for input as well as a means for the City to cominumcate its intentaons to the public
Public Awareness Campaign
The City of Denton has used several means to keep its c~t~zens well reformed regarding floodplain
Page -7-
issues Each year the Engineenng Division mails floodplain information to all residents m the
floodplain This information includes instructions for flood protection measures, a description of
flood hazard areas, and information regarding flood insurance It also offers the assistance of the
Engmeartng Diwaion to property owners in ~nplementmg flood protection measures and in
de~ermmin~ the location of the floodplain Similar information has been distributed to residents
through the annual open house, through periodic newsletters, public serwce radio spots,
announcements m the Denton Record-Chromcle, and through utility bills
Development Regulations
The City,of Denton has adopted into its Development Code regulations designed to control
development In and adjacent to the floodptmn Chapter 34 (Subdlwslon and Land Development
Regulations) of the Denton Code requires new development to be designed to provide protection
from flooding In a 100-year storm Drainage improvements shall be constructed as necessary to
prowde adequate conveyance under fully developed conditions, as well as to properly control any
Increase In the downstream water surface due to the development In general, natural streams
serving drainage areas greater than one square mile are to remain natural unless improvements are
necessary to prowde adequate conveyance of storm waters AIl channel improvements are to be
designed to convoy the 100-year storm All new development must comply with tins Code as well
as Chapter 30, the Flood Damage Prevention Ordinance Both ordinances require mimmum
fimshed floor elevations to be 18 inches above the 100-year flood elevation based on encroached
stream conditions In addition, no development or land modification can be made in the
floodplain or floodway until construction plans have been rewewed by the City and a permit
Issued
Drainage Studies
Considerable effort and expense have been expended in recent years to perform detailed studies of
the major streams m Denton These include the following
Hickory Creek Watershed Flood Control Study - 1989
Tlus study was commissioned to investigate measures to be taken to maintain the existing
floodplain limits while accommodating future development in the watershed Several
options were considered, including channelization, but the report concluded that the most
cost effective flood control measure for this watershed is to construct a sones of regional
detention facilities
Cooper Creek and Pecan Creek Tributary PEC-4 Regional Drainage Studies - 1996
This study evaluated two Independent streams, both ofwh~ch expenence flooding under
existing conditions The purpose of the study was to identify the extent of flooding under
fully developed watershed conditions, and to recommend necessary Improvements to
control flooding and mmmuze flood damage The Cooper Creek study focused pnmanly
on the feaslblhty of construction nf regional detention facdltles Numerous alternatives
were considered, and costs versus benefits were analyzed The report recommended that
construction of at least two regional detention facilities be undertaken The PEC-4
portion of the study recommended that the existing concrete lined channel be enlarged to
Page -g-
accommodate the 100 year storm In addition, a bypass culvert is recommended to
provide sufficient conveyance under the T & P r~ulroed at Robertson and Bell This
increase m capacity at this key location will dramatically decrease the flood hazard
upstream of the mlroed
Pecan Creek Master Plan - 1996
This study was commissioned to analyze Pecan Creek, North Pecan Creek, and the upper
portion of tributary Pg.C-4 These streams traverse the highly urbamzed central portion of
the City of Danton, and are currently almost completely concrete lined channels Because
of the high degree ofexistang development, no additional detention beyond the erasting
SCS lakes was considered feasible In order to mimiraze flooding, improvements are
recommended to the erastmg channels to increase the conveyance of flood waters Due to
severely restricted space in this hghly developed area, concrete-lined vertical walled
channels were recommended throughout much of the study area
CIwc Center Park Master Plan - 1997
This study specifically addresses the Civic Center Park, and vnth regard to flood
mltagatlon is based on the Pecan Creek Master Plan Several possible means of comblmng
aesthetic park facilities unth flood control measures are considered in the study The
preferred plan calls for construction of a lake behind a leaf dam structure
Based on the two studies affecting Pecan Creek and tributary PEC-4, construction plans are
currently underway for portions of both streams It is expected that these proposed
miprovements will be completed in late 1998 or early 1999, and will remove some 200 acres and
approramately 130 insurable structures from the floodplain These improvement projects will also
prowde protection from flooding in the 100-year storm under fully developed conditions
Floodplain Management Data Repository
The Emily Fowler Public Library serves as a repository of floodplain management documents for
reference by the pubhc The documents avtulable at the library include current FIRM maps, flood
insurance information, gmdehnes for floodpruofmg and flood protection, as well as documents
descnhing the National Flood Insurance Program
Drainage System Maintenance
The Drainage Maintenance Divmon mmntams a routine inspection program of dr/unage facilities
throughout the sty Major concrete and earthen channels are inspected annually, and cleamng
and maintenance performed as necessary Rocks, sediment, tree hmbs, litter and debris are
removed ~and disposed of The Field Serwces Divmon is currently enlarging its mmntenance staff
from one, crew to three crews One crew is assigned to routine mmntenance projects, another to
small construction and rep~urs, and the third crew will function as a sw~ng crew to assist wherever
needed
Flood Response Plan
The City of Denton has developed "High Water & Severe Thunderstorm - Emergency Operations
Page -9-
Procedures" for use in responding to extreme rainfall conditions Tl~s h~ghly detmled component
of the Emergency Management Plan clearly outhnes responslbditlas, orgamzational structure and
procedm'as to be used in the event of flooding A book depicting lugh water barricade locations is
also employed to chrect crews to areas most susceptible to floodmg In addluon to flood
response, these procedures include guldehnes for post-flood recovery actlwtles and
responsibilities City staffhas recently conducted the first field test of the procedures outlined in
the Emergency Operations manual Tins field test was performed in an effort to prowde actual
practice as well as feedback regerdmg the effective operation of the procedures
Continuing Education of Staff
In an effort to keep abreast of the latest developments in floodplmn management, the Floodplain
Adnums~rator attends the annual Texas Floodplain Management Association conference Tlus
provides,the community with the opportumty to continue to learn new and improved floodplain
management techniques In addmon, a contmulng effort IS made to keep current with changes in
the NF~P The Field Serwces DlWSlon also sends drainage foremen and assistants to the
American Public Works Association and Texas Public Works Association conferences for
tra~mng
Flood Warning System
A flood warning system is currently m place to provide advance warmng of impending flooding
conditions Warmngs are issued by radio (KDNT AM 1440), cable TV (audio ovemde and
Bulletin Board), weather radio and Plectron warning radios Flood warnings can also be received
directly from tone activated alert radios tuned in to the Emergency Operations Center These
tone alert radios can be purchased for installation in privately owned buildings
Page -10-
EVALUATION OF POTENTIAL REMEDIES
The City of Denton is currently in the process of developing a Growth Management Policy and
Comprehensive Plan Entitled the "Denton Plan", tbs planmng effort wdl bnng together a
multitude of elements The Denton Plan will provide overall direction for development and
growth/kr into the next century Floodplam management will be based on indlwdual "watershed
plans," which will also address the entire scope oflssuas relevant to the watershed Such items as
stormwater quality and quantity, erosion control, floodplain management, enwronmental issues,
and control o£development activities will all be a part of these watershed plans Development
regulations will fall under the umbrella of the Denton Plan, as will the Flood IVhtigatlon Plan
Many, fi,not all, of the documents referenced es appendices to the FMP will be incorporated Into
the Denton Plan In addition, many nfthe actlvmes indicated below will be included in the
Denton Plan
Active regulation of development in and near the floodplain
Current regulations provide a high level of control over new development as it relates to
floodplain management The City may want to consider modifying the Flood Protection
Ordinenco to require that reconstruction of existing structures be such that the lowest floor and
adjacent parking areas be at least 12 Inches above the 100-year water surface based on fully
~v~]t;~ned conditions In addition, new construction would be built such that the lowest floor,
and the entire lot would be a minimum of 12" above the 100-year water surface based on fully
developed conditions Currently, Section 30-53 mdicates that the 100-year flood under existing
conditions is the benchmark event for streams vath desll~nated floodways Use of fully developed
models for estabhshmg the rmmmum finish floor elevation provides an additional level of
protection
Ongoing and reeurring public education program
The current public education pro,ram serves well in that it provides a number of opportumtles for
the commumty as a whole to receive information regarding flooding and flood protection This
program,n~sht well be expanded to include periodic advertisements in the local newspaper
These ads would be part cfa regular City of Denton ad campaign designed to commumcate w~th
and reform the general public Primarily, the ads eddressmg floodplain management would appear
dunng the normal storm season, namely March, Apnl and May In addition to prow&ng
important information regarding flood protection and warmng, this program can also be used to
encourage property owners to purchase flood insurance It has been estimated that there are m
excess of 600 insurable structures vothm the floodplains of the City of Denton, but according to
FEMA records there are only 312 flood insurance policies in force Construction of structural
unprovements identified below wdl remove a sigmficant number of these insurable structures from
the floodplain
Flood control structures and improvements
Based on the prewously discussed studies performed on the major streams in Denton, there is a
need for sllpuficant construction ofchennel unprovements, bridge and culvert crossing upgrades,
and re,penal detention fac~hties Construction of all the improvements recommended in the three
Page - 11-
studies would cost more than $37,000,000 as indicated below
I-hckory Creek $ 8,000,000
Conper Creek $ 3,100,000
Pecan Creek $26,600,000
These costs do not include land acqmslUon, and in the case of I-hckor~ Creek, are based on 1989
pncos Construction projects currently being designed will cost in excess of $3 million It is
obvious that construction of the recommended improvements will need to take place over an
extended period oftime Deternunetion of the priority of proposed construction is made by the
City Council, based on recommendations by the Engmecnng and Transportation Department, a
citizen's Bond Oversight Comimttee through a Drmnage Subcommittee, and the Drainage
Division of the Water Utdlty Department Priority Is based on the cost ofimprovements, available
funds, an evaluation of existing floodmg problems, and a cost-benefit analysis of the effect of
particular projects For example, as indicated previously, construction of the improvements
currently in design veil remove some 200 acres and 130 structures from the floodplain This
represents a sigmficant benefit to the City in terms of both potential econonuc impact and
decreased flood hazard
Master Drainage Plans
In addition to the studies that have been previously undertaken, there are several slgmficant
streams or portions of streams for which no Master Drainage Plan eyasts These streams are
identified,below, along with an estimated engineenng cost
Pecan Creek & North Pecan, Phase II $40,000
PI~C-I $70,000
Fletcher Branch $50,000
Cooper Creek $95,000
Pecan Creek (Woodrow to Lake Lewisvflle) $65,000
The Fletcher Branch study would extend the analysis already done on the detention ponds at
South Lakes Park The Pecan Creek & North Pecan, Phase II study would extend the Phase I
study completed in 1996 upstream to the SCS reservoirs The Cooper Creek study would
supplement the regional detention analym prawously completed Each ofthese streams are
potentlall~ sigmficant soumas offloodlng, especially as development continues in these
watersheds Once completed, these studies can be used to guide development along the streams
in such a way that flood protection can be incorporated into the design of proposed
developments To date then is no funding allocated for completion of these studies
Purchase of properties at a high risk of flooding
Numerous insurable structures are located in the floodplains of the major streams These
structures ,pose the most immediate flooding ask based on the FIRM maps In some cases these
structures ~lil eventually have to be removed to accommodate proposed channel construction In
Page -12-
other areas, the City may opt to purehaso such properties simply to demohsh or relocate them,
remowng them from the flood hazard area On Pecan Creek and its tnbutanes, at least 14 such
structures have been tdent~ed Several federal grant programs are available to assist the
commumty m such a property acqmsmon endeavor In general, it could be said that any
structures within the existing floodplain could be candidates for acquisition
Detention Requirements
Another possible flood mitigation activity is to require detention on all new developments,
restricting runoff fl'om the site to pre-development levels While this may help to nummize
increases in flood hazards due to new development, it has several drawbacks as well Extreme
care must be exercised m the design of small detention systems to ensure that these facilities do
not simply redistribute the peak discharges to a different ume frame Such a condition can
actually increase flooding risks downstream Relponal detention facilities can be designed and
constructed to avoid such negnttve consequences In fact, there are two SCS detention facilities
already in place on Pecan Creek and North Pecan Creek Further detention on Pecan Creek does
not appear to be practical due to the high degree of development However, regional detention
facditles have been recommended in the studies for both Cooper Creek and Hickory Creek It is
highly recommended that property for these detention facilities be purchased in the near future,
before new development either occupies the necessary land or dnves up its cost
Prohibit, new development in the floodplain
A naturally functioning floodpl~un can have many benefits to a commumty, including the storage
and conveyance of flood waters, the recharging of groundwater, the mmntenance of surface water
quality, the prowslon of habitat for both plent and ammal valdhfe, as well as providing
recreational opportumtles and scenic value New construction or development within any
floodplmn can be considered to have a negative effect on flood conveyance capacity In addition,
because floodpimns so frequently provide habitat for both w~ldhfe and plant species, such
development decreases the avmlable habitat Development regulations that completely prohibit
new dev01opment in the floodplain cnn serve to prowde many of the benefits derived by the
commumty from a naturally ~nctiomng floodpln,n Floodwater conveyance c~pacity can be
preserved, ehmmatmg the creation of new flooding risks In addmon to reducing the loss ofhfa
and property, presarvat~on of the floodplain can also protect critical natural and cultural
resources, and provide a source of commumty pride and identity
More and more commumtles are choosing to change the behavior of people rather than trying to
change the behawor of a stream system Rather than trying to control floodwaters, these
communities are encouraging people to avoid flood hazard areas Such practices are primarily
earned out by means of development ordinances and regulations
Incentives
One way to lirmt development in and near the floodplain is to provide tax or other incentives to
make it more econoimcally feasible to leave undeveloped land dedicated for some open-space use
Such uses as agriculture, recreation, or conservation would preserve the floodplmns flood
Page -13-
conveyance capacity as well as the low-hazard land use Incentives could include special tax rates
for natural floodplain, or could even allow floodplain property to offset other property when
calculating tax obligations Dedication offloodplmn property to the public's use can also be used
to satisfy the requirements of the new City of Denton Park Dedication policy
Flood Warning System
The flood warmng system is currently being enhanced with the addition of automated gates that
wdl be tied to the Weter/Wastewater SCADA system This system wdl include automated gates
at Corbin Road over Hicko~ Creek and at Mayinll Road over Pecan Creek These gates will be
operated by automatic sensors, and will lower the gates, thus closing the road, when the water
surface in the streams reaches a predetermined elevation The system wall also automatically
contact the 911 emergency number and the appropriate Department Operations Center as
designated m the Emergency Management Prosrem
Funding has recently been made available for placement of stream and rain gages in strate~c
locations in the City of Denton These gages will momtor both rainfall and stream stage,
providing valuable information in the on-going effort to analyze drainage and flooding problems in
the major streams They will be used pnmaniy as part of the flood warning system to provide
real-time analysis of potential floodmg conditions The data collected from these guges vnll
provide an "early warning system" to predict potentially hazardous conditions before they happen,
allowing for proactive emergency response in some cases In addition, the gages can be used to
calibrate the accuracy of the computer models used to identify flood hazard areas More accurate
data reflecting actual rainfall events and their causative effect on stream flow makes possible more
accurate predictions of future potential flooding condluons
Eroaion Control
Another part of development of the Denton Plan will be an updating of the erosion control
re~ulations Eromoncontrollspart of an overall approachto watershed managemant, lnthatlt
affects the conveyance capacity of streams as well as water quality Attached as Exinbit X are
draft ~uldehnes and detads, based on the National Pollutant Discharge Elimination System
(T~PDES) program of the EPA Since the NPDES is currently in the process ofbaing changed,
the erosion control regulations will need to keep pace with EPA requirements Current EPA
regulations require submittal ora Notice of Intent prior to beginning construction on projects
disturbing more than 5 acres Current City of Denton regulations require submittal of erosion
control plans for all proposed construction projects
It will be the mtent of the erosion control regulations to go beyond simply erosion control to
include pollutIon prevention on construction rotes For example, discharge of hazardous
substances including waste concrete, petroleum products, and paints or other chermcals will be
addressed in the updated regulations The attached guidelines and details are only a draft, and will
be part of the review process for the Denton Plan
Page - 14-
ACTION PLAN
Because the City of Denton is already so active m management of its floodplains, in many ways
the plan of action wdl be a continuance ofex~stmg policies In addiuon, several new policies and
flood nufl~ttion a~tlvities are being put into place The City Council is considering several means
of funding for drama~e improvements and other nutigation measures, including implementation of
drainage impact fees and/or a Dramase Utdlty Fund
The following pohclas and nutigatlon aetivities have been successfully serving the citizens of
Denton, and will remain m place, many with improvements as noted below
Community Rating System (CRS)
The City of Danton will continue active participation in the CRS program Currently, the city
staffls working to achieve a CPS rating of 8, which would result in a 10% discount on flood
insurance prermums for the citizens of Denton This program is adnumstered by the Floodplain
Adrmmstrator, through the Enlpneering & Transportation Department
CIP Public Hearings
These hearings will continue to be held twice annually as part of the annual publication ofa $ year
Capital Improvements Program This activity is directed by the Finance Department, and includes
a number of departments throughout the city, as well as the Utility Board, the Plamung & Zoning
CornnussJon, and, of course, the citizens of Denton Final approval of the CIP program is given
by the City Council
Public Awareness Campaign
The City will continue to make annual contact with all residents whose properties lie within the
floodplain Current contact with the public at large through the annual open house and occasional
utility bill inserts will also be continued In addition, the City of Denton is beginning to take out
regular ads in the Denton Record-Chromcle to provide lllformetion and contact with the
cornmumty The Engmeenng & Transportation Department will provide floodplain related
materials,periodically for mclumon in these ads
Development Regulations
Current development regulations vail continue to be upgraded and improved as part of the
developmant of The Danton Plan These regulations will address development requirements,
eromun and pollution prevention, regional detention, environmental concerns and overall
guldehnes for development m the respective watersheds in the City of Denton
The City Council has recently adopted a new ordmance requlnng developers to dedicate land to
the City for neighborhood parks when platting a new development Floodplain properly can be
used to at least parUally satisfy these requirements
Page
In addition, The Denton Plan calls for dedication of floodplains to perform multiple functions,
such as flood protection, recreation, habitat protection and environmental preservation This
policy will be incorporated in dLfferent ways for different watersheds, based on the watershed
plans under development The watersheds m Denton rangn from high levels of developmant (such
as Pecan Creek), to very sparsely developed (such as Hickory Creek)
Floodplain Management Data Repository
The pubhc hbrery w~l continue to be a repository for floodplain management related documents,
such as FIRM maps, flood protection gnidehnes, and the various techmcal studies that have been
performed on behalf of the City This Flood M~tlgatlon Plan will also be avmlable at that location
Drainage, System Maintenance
Maintenance of the existing dramagn system wdl certainly continue, bolstered by the recent
acquisition of additional staff and equipment Two new maintenance crews are currently being
placed into service to provide si~mflcantly Improved maintenance service These crews are part
of the Drainage Division of the Water Utdity Department
Flood Response Plan
Emergency response activiUes have been carefully planned and orgamzed under the "High Water
& Severe Thunderstorm Emergency Operations Procedures" which is part of the broader
"Emergency Management Program" These procedures are being field tested and refined and
provide a comprehensive emergency response orgnmzatlon This program involves virtually every
department of the City of Denton
Continuing Education of Staff
This important program will continue to be used to ensure that key staff members are kept abreast
of the most current and effective methods available for incorporation into existing untlgntton
activities This program is undertaken by both the Engieeenng & Transportation Department and
the Drainage Division of the Water Utility Department
Flood Warning System
As indicated previously, the existing flood warmng system is currently being up~raded with the
addition of automated gates and gages at several key stream crossings These will provide
increased flood protection and will become an integral part oftha flood response program These
gates are to be controlled by radio signal from the Water/Wastewater treatment plant, but include
an ovemde that will operate the gate in the event ora shutdown or interruption at the plant A
loss of battery power at the gate will cause the gate to drop, and plant operators to be signaled by
radio so corrective action can be taken
In addition, a number of rain gngns and stream flow gages have been recently purchased by the
City of Denton These gages will be placed in strategic locations in the watersheds of Pecan,
Hickory and Cooper Creeks to provide real tune data for advance warrens of impending flooding
conditions The gages will transrmt data automatically by radio to a central computer at the
Page -16-
treatment plant Solar charged batteries wdl prowde power to these transnutters Tlus advance
warmng wall pernut preventattve measures to be taken to rmmnuze flood damage These gttges
wdi be monitored as part of the ex~sting flood warmng system
Construction of Structural Improvements
Based on the findings of the various detailed stream studies that have been developed recently,
one st~tflcent flood control constrocUon project ts currently m the destgn phase Tlus project
wall have a dramatic positive affect on the flood hazards assoctated wtth tributary PEC=4 m
southeast Denton This projeet wall have an estimated constructton cost m excess of $3,000,000
and wililbe financed by a combinatton of CH' ftmds, federal grant funds, end general funds Other
structural improvement projects are currently being destgned to prowde tmproved conveyance
flood waters at several key stream crosstngs These projects will prowde stgmficently ~mproved
emergency access during lush frequency storms The Ctty ts also m the process of developml~
construction plans to address major local drainage tssues not included m the prewous studies,
such as Eagle Drive and Colhns Dave
Master Drainage Plans
The City Council Is looking for tmmedmte funding for the addittonal Drainage Master Plans
referenced m an earlier section of this report The level of new and enttclpated development
actiwty in a g~ven watershed end the extent of ex~stmg flooding asks w~ll be key factors m
determimng the prtonty of the vnnous studies needed Currently, the hkely priority ranlong ts as
follows
Pecen Creek & North Pecan, Phase II
Development is wrtually complete along both of these streams, cons~stmg of both
residential and commercial propert'tes Current FIRM maps mdtcate s~gmficent potential
flooding, especially in the commercial areas
PEC- 1
Considerable new development, primartly residential, ~s currently underway m the upper
reaches of the watershed
Fletcher Branch
The upper tlurd of the watershed shows continued new development, the rmddle thtrd Is
already fully developed, end the lower tlurd ~s tughly undeveloped Increased discharges
due to upstream development have resulted m increased flooding concerns downstream
Cooper Creek
Tins ~s a lushly developed watershed, w~th the exceptton of the uppermost reaches of the
stream The recently completed re~onai detentton study mdicated tlutt detentton alone
will not eliminate all flooding The 1998-99 CH' has over $500,000 earmarked for
channel and culvert improvements needed to supplement the proposed detentton facthttes
Pecen Creek OVoodrow to Lake Lewtsville)
Page - 17-
There is relatively little ex~stmg development along th~s portion of Pecan Creek, but
sllgmflo~nt Industrial developmem is in the planmng stages just east o£Woodrow
Purchase of At-Risk PropeFffes
A number of insurable structures are located within the floodplain of the various streams w~tlmi
the City 0fDanton Using funding from the Nlood Mitigation Program administered by NEM_A,
the City intends to purchase several of these properties Af~er purchase by the City, the structures
will be removed The purchase ofthase properties will reduce flooding asks, resulting in reduced
claims tolthe NI~ At least 14 structures on Pecan Creek and its tributaries have been identified
as potential candidates for removal In most of these cases, these structures located in the
floodplaia must be removed not only to reduce ask, but also to accommodate future construction
of flood control structures
Mitigation Measures Not Enacted
It should be apparent from the various components of the action plan that the City of Denton
already has in place a comprehensive Nlood Mitigation Plan, and is continuing to take steps to
increase the effectiveness of the program tn providing flood protection to the citizens of Denton
To some de~rae, all but one of the mitigation measures considered have been or are berne
adopted and implemented Further study will be required pnor to adoption of tax or other
Incentives for preservation of the floodplain Such incentives may well be implemented in
conJunction with the floodplain dedication policy, or with thc Drainage Impact Fees or Drainage
Utility Fees currently under consideration
Page -18-
CITY OF DENTON
FLOOD MITIGATION PLAN
DOCUMENTS INCORPORATED AS APPENDICES
Flood Insurance Study. City of Denton. Denton County. T~xas. Federal Emergency Management
Agency, April 2, 1997
Drainage Desmn Cnten~ City of Denton, Texas, Freese and Nichols, Inc, 1990
Subdlws!on and Land Develooment Reaulat~ons, City of Denton, Planmng and Development
Department
Emeroencv Management Proaram, City of Denton
Comorehenslve Master Dramaae Plan. City of D~0ton. Freese and Nichols, Inc, 1975
Comorehensive Master Dramaoe Plan Uvdate. City of Denton. Freese and Nichols, Inc, 1990
I-hckorv Creek Watershed Flood Control Study. City of Denton. Freese and N~chols, Inc, 1989
Coooer Creek and Pecan Creek Tributary PEC-4 Reozonal Dramaue Studies. City of Denton~
Freese and Nichols, Inc, 1996
Pecan Creek Master Plan. City of Denton. Teague Nail and Perkans, Inc, 1996
The Denton plum (Growth Management Policy and Comprehensive Plan for Denton, Texas)
Parks De0artment Master Plar~ City of Denton
Denton Trails P[al~, City of Denton
Ooeratlons and Mmntenance Annual Plan, City of Denton, Field Services Division
Clwc Center park Master Plan, Parks and Recreation Department, City of Denton
Page -20-
EXNI~IIT X
EROSION CONTROL GUIDELINES
Sample Pollution Preventton Plan and Erosion Control Detads
Page -21-
SOUTH LAKES PARK
DETENTION POND No. 3
POLLUTION PREVENTION PLAN
ProJect Name and Location: (Latitude, Longitude, Owner Name and Address:
or Address) The City of Denton
South Lakes Park City Hall West
2100 Teasley Lane 221 N Elm
Denton, TX Denton, TX 76201
Description: (Purpose and Types of Sod Disturbing Activities)
This project will consist of construction of a detention/retention faclhty within South Lakes Park, a City of Denton
recreational area
Soil d~sturbmg actiwt~es wffi include excavation, embankment and final grading
Runoff Coefficient: The final coefficient of runoff for the proposed construction area will be c = 0 25
Site Area: The park is approximately 180 acres, of winch approximately 17 acres will be disturbed by
construction activities
Sequence of Major Activities
The order of activities will be as follows
1 Install erosion control structures as necessary
2 Clearing and grabbing
3 Excavation and grading
4 Construct ouffall structure
5 Stabdlzanon of unpaved areas
6 Remove erosion control structures
Name of ReceiVing Waters: The detentaon/retention facility is situated on Fletcher's Branch Discharge from
the site passes through an existing detent]on pond, then is conveyed by Fletcher's Branch, eventually reaching
Lake Lewlsvllle,
SWPP-1
Stabdization Practices
Silt fences end,other structural controls indicated on the plsn.~ will be mstalled prior to beginning the clearing
and grubbing and will remain m place until the contractor has completed construction of the particular phase
and has completed stab'flization. Vm'ually all of the construction area drams rote either the proposed
detention/retention pond or rote the existing detention pond As a result, these ponds will serve as sedunent
traps dunng construction, keeping temporary structural controls to a IDm~mLlm
Waste Materials:
All waste materials will be collected and stored m a smteble container The container will meet nil local and
State solid waste rannagement regulations All trash and construction debris from the site will be deposited m
the container, wluch will be emptied as necassery No construction waste materials will be buried on s~te
All personnel will be instructed regarding the correct procedure for waste disposal
Hazardous Waste:
All hazardous waste materials will be chsposed efta the manner specified by local or State regulntmon or by
the manu~'acturer Site personnel will be instructed m these practices and contractor will be responsible for
seeing that these practtces are followed
Samtnry Waste:
All samtary waste will be collected from portable units located on site and emptied by a hcensed samtery
waste management contractor, as necessary
Off Site Vehicle Tracking:
A stabilized construction exit shall be installed to help reduce vehicle tracking of sedunents The paved
streets adjacent to the site entrance will be swept as necessary to remove any excess mud, dm or rock tracked
form the site The contractor is responsible for ensunng that excess mud, dirt or rock are removed from all
adjacent streets
SWPP-2
TIMING OF CONTROLS/MEASURES
As mdwated m the Sequence of Major Act~wt~es, silt fences and stabilized construction exits will be
constructed prior to commencement of work under flus contract Areas where constructmn activity
temporarily ceases for more than 21 days will be stebfl~zed with a temporary seed and mulch witlun 14 days
of the last chsturhanoe Once construction aChvlty ceases permanently m the area, that area will be stablhzed
with permanent seed and mulch
MAINTENANCE/INSPECTION PROCEDURES
These are the mspectmn and mamtenence pracuces that will be used to mamtem erosmn and sechment
controls
· All control measures will be respected at least once each week and following any storm event of 0 $
roches or greater
· All measures will be mamtamed m good working order, if a repair is necessary, it will be mmated wahm
24 hours of report
· Bruit up sediment will be removed from silt fence when ~t has reached one-thzrd the height of the fence
· Slit fence w~ll be respected for depth of se&merit, tears, to see ~fthe fabric ~s securely attached to the
fence posts, and to see that the fence posts are firmly m the ground
· Bmlt up sedunent will be removed from the rock berm when it has reached one-thtrd the height of the
berm, or one foot, wluchever is less
· A maintenance mspection report will be made at~r each inspection
Material Management Practices
The following are the matenal management practices that wdl be used to reduce the nsk of spills or other
accidental exposure of matenals and substances to storm water runoff
· An effort will be made to store only enough product reqmred to do the job
· All materials stored on site will be stored m a neat, orderly manner m their appropnate containers and, if
possible, under a roofer other enclosure
· Products will be kept m thatr onguml contemers with the ongmal manufacturer's label
· Substances will not be rmxed with one another unless recommended by the manufacturer
· Whenever possible, all of a product will be used up before disposing of the contamer
· Manufacturer's recommendations for proper use and disposal will be followed
· The site supenntendent will respect clmly to ensure pwper use and disposal of materials on s~te
SWPP-3
Product Specific Practices
The materials or substances listed below are expected to be present on site during construction
· Petroleum Products
· Paint
· Concrete
Petroleum Products
All on site vetucles will be momtored for leaks and receive regular preventive maintenance to reduce the chance
of leakage Petroleum products will be stored m t~ghtly sealed containers whmh are clearly labeled
Pamts
All containers will be tightly sealed and stored when not requtred for usc Excess paint will not be discharged
to the storm drain system but will be properly disposed of according to manufacturer's instructions and/or State
and local regulations
Concrete
Concrete trucks will not be allowed to wash out or chscharge surplus concrete or drum wash water on thc site
except m bermed wash basins a minimum of 12" m height The wash basins will be will be cleaned out and
concrete and all concrete residue will be dmposed of properly off site
Spill Control Practices
In addition to the good housekeeping and material management practices d~scussed m the previous sections of
th~s plan, the following pract~cas will be followed for spill prevention and cleanup
· Manufacturers' recommended methods for spill cleanup will be clearly posted and site personnel will be made
aware of the procedures and the location of the reformation and cleanup supphes
· Materials and eqmpment necessary for spffi cleanup will be kept tn the matenal storage area on s~te
Eqmpment and materials will include but not be lumted to brooms, dust pans, mops, rags, gloves, goggles,
Patty htter, sand, sawdust, and plastic and metal trash containers specifically for thxs purpose
· All spills will be cleaned up munechately after discovery
· The spill area will be kept well ventilated and personnel will wear appropriate protective clothing to prevent
inJUry from contact with a hazardous substance
· Thc spill prevention plan will be adjusted to include measures to prevent this type of spill from reoccurnng
and how to clean up the spill ~fthere ~s another one A description ofthe spill, what caused ~t, and the cleanup
measures will also be mclucled
· The contractor will designate personnel to be the spill prevention and cleanup coordinator
SWPP-4
I cemfy under penalty of law that I understand the terms and conditions of the general National Pollutant Discharge
Elunmation System CN-PDES) penmt that authorizes the storm water discharges assocmted vath mdusmal activity
from the construction site ~dentified as part of this cemfication
Contractor Name and Address
Name
Date
SWPP-5
SILT FENCE NOTES
SILT FENCE MAY BE USED ~I-IERE THE GROUND SLOPES ACROSS A DITCH
OR SWALE
2 STEEL POSTS WHICH SUPPORT THE SILT FENCE SHALL BE INSTALLED ON
A SLIGHT ANGLE TOWARD 3HE ANTICIPATED RUNOFF SOURCE THE POST
MUST BE EMBEDDED A MINIMUM OF ONE FOOT
THE TOE OF THE SILT FENCE SHALL BE TRENCHED IN WITH A SPADE OR
MECHANICAL TRENCHER SO THAT THE DOWNSLOPE FACE OF THE
TRENCH IS FLAT AND PERPENDICULAR TO THE LINE OF THE FLOW
4 THE TRENCH MUST BE A MINIMUM OF 6" DEEP AND 6" WIDE TO ALLOW
FOR THE SILT FENCE FABRIC TO BE LAID IN THE GROUND AND
BACKFIll. ED WI~H COMPACTED MATERIAL
5 TI'IR SILT FENCE SHOULD BE SECURELY FASTENED TO EACH STEEL
SUPPORT POST ALTERNATIVELY, SILT FENCE SHALL BE FASTENED TO
WOVEN WIRE WHICH IS FASTENED TO THE STEEL POST THE ENDS OF
FABRIC SHALL OVERLAP THREE FEET
6 INSPECTION SHALL BE MADE WEEKLY AND AFTER EACH RAINFALL
REPAIR OR REPLACEMENT SHALL BE MADE PROMPTLY AS NEEDED
7 SiLT FENCE SHALL BE REMOVED WHEN THE SITE IS COMPLETELY
STABILIZED SO THAT NATURAL DRAINAGE IS NOT BLOCKED OR IMPEDED
8 ACCUMULATED SILT SHALL BE REMOVED WHEN IT REACHES A DEPTH OF
HALF THE EIGHT OF THE FENCE THE SILT SHALL BE DISPOSED OF AT A
SITE APPROVED BY THE OWNER AND IN SUCH A MANNER AS TO PREVENT
ADDITIONAL SILTATION
9 CONTRACTOR TO MAINTAIN SILT FENCING AND ALL OTHER EROSION CON-
TROL MEASURES AT ALL TIMES DURING THE DURATION OF THE PROJECT
STEEL FENCE POST (6 SPACING
MAX, 1' EMBEDMENT MIN) TYP
REINFORCED POLYPROPYLENE
FABRIC
'x4" WIRE MESH BACKING
FENCE (MtN HT 24"
ABOVE EXIST GROUND)
MIN
TOE-IN
TRENCH (BACKFILL & COMPACTED)
SILT FENCE
ROCK BERM NOTES
1 USE ONLY OPEN GRADED ROCK 4-8 INCHES IN DIAMETER FOR
STREAM FLOW CONDITION
2 THE ROCK BERM SHALL BE SECURED WITH A WOVEN WIRE SHEATHING
HAVING A MAXIMUM OPENING OF 1" AND A MINIMUM WIRE SIZE OF
20 GAUGE AND SHALL BE BURIED IN A TRENCH APPROXIMATELY
5 TO 4 INCHES DEEP
,3 THE ROCK BERM SHALL BE INSPECTED WEEKLY OR AFTER EACH RAIN
EVENT AND SHALL BE REPLACED WHEN THE STRUCTURE CEASES TO
FUNCTION AS INTENDED DUE TO SILT ACCUMULATION AMONG THE ROCKS,
WASHOUT, CONSTRUCTION TRAFFIC DAMAGE, ETC
4 WHEN SILT REACHES A DEPTH EQUAL TO ONE-THIRD OF THE HEIGHT OF
THE BERM OR ONE FOOT, WHICH EVER IS LESS, THE SILT SHALL BE
REMOVED AND DISPOSED OF PROPERLY
5 WHEN THE SITE IS COMPLETELY STABILIZED, THE BERM AND ACCUMULATED
SILT SNAJ. L BE REMOVED AND DISPOSED OF IN AN APPROVED MANNER
6 ROCK BERM SHOULD BE USED AS CHECK DAMS FOR CONCENTRATED
FLOW AND ARE NOT INTENDED FOR USE IN PERIMETER PROTECTION
= 24" MIN _ I
- l /-- WOVEN WIRE
V SHEATHING
' 24 3" TO 4"
CROS~ SECTION
WOVEN WIRE .i~
ISOMETRIC PLAN VIEW
ROCK BERM
~ -- EXISTING PAVED
4" DEPTH (MIN)
CONSTRUCTION CRUSHED STONE
ACCESS ROAD ' ROADWAY
--~ ~~:5,,~/,x' \ I
CONSTRUCTION
ACCESS ROAD
A STABILIZED CONSTRUCTION ENTRANCE APPLIES TO POINTS
OF CONSTRUCTION INGRESS AND EGRESS WHERE SEDIMENT MAY
TRACKED OR FLOW OFF THE CONSTRUCTION SITE
2 THE ENTRANCE SHALL BE MAINTAINED IN CONDITION WHICH WILL
PREVENT TRACKING OR FLOWING OF SEDIMENT ONTO PUBLIC
RIGHTS-OF-WAY THIS MAY REQUIRE PERIODIC TOP DRESSING
WITH ADDITIONAL STONE OR ADDITIONAL LENGTH AS CONDITIONS
DEMAND AND REPAIR AND/OR CLEANOUT OF ANY MEASURES
USED TO TRAP SEDIMENT ALL SEDIMENT SPILLED, DROPPED,
WASHED OR TRACKED ONTO PUBLIC RIGHTS-OF-WAY MUST BE
REMOVED IMMEDIATELY
STABILIZED CONSTRUCTION EXIT
STABEXIT
6" MIN
--CURB INLET
CURB INLET OPENING
PLACE HAY BALES SUCH
THAT NO FLOW SHORT
CIRCUITS DIKE
USE SUFFICIENT NUMBER
OF HAY BALES TO SURROUND
INLET OPENING
~5' MAX
HAY BALE DIKE
CURB INLET LAYOUT
4" VERTICAL___../ '~
FACE (TYP)
EMBEDDING DETAIL
WIRE OR NYLON BOUND BALES
PLACE ON THE CONTOUR
ANGLE FIRST STAKE TOWARD
PREVIOUSLY LAID BALE
2 RE-BARS, STEEL PICKETS OR
2"x2" STAKES 1-1/2' TO 2' IN
GROUND
FLOW ~
ANCHORING DETAIL
1 BALES SHALL BE PLACED IN A ROW WITH ENDS TIGHTLY ABUTTING
THE ADJACENT BALES
2 EACH BALE SHALL BE EMBEDDED IN THE SOIL A MINIMUM OF 4."
;3 BALES SHALL BE SECURELY ANCHORED IN PLACE BY STAKES OR
RE-BARS DRIVEN THROUGH THE BALES THE FIRST STAKE IN EACH
BALE SHALL BE ANGLED TOWARD THE PREVIOUSLY LAID BALE TO
FORCE THE BALES TOGETHER
4- INSPECTION SHALL BE FREQUENT AND REPAIR OR REPLACEMENT
SHALL BE MADE PROMPTLY AS NEEDED
5 BALES SHALL BE REMOVED WHEN THEY HAVE SERVED THEIR USE-
FULNESS SO AS NOT TO BLOCK OR IMPEDE STORM FLOW or DRAINAGE
SPECIFICATIONS FOR INSTALLATION
OF HAY BALE BARRIERS
L/DE TAILS/EROSION/HAYBALE DWG
A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING THE 1998-99
BUDGET OF THE DENTON CENTRAL APPRAISAL DISTRICT, AND DECLARING AN
EFFECTIVE DATE
WHEREAS, the 1998-99 proposed budget of the Denton Cen~al Appraxsal D~smct was
subm~ed to the C~ty of Denton before July 10, 1998, and
WHEREAS, fl~e Denton Can~al Appraisal D~smct adopted t~s proposed budget on July
9, 1998, and
WHEREAS, the proposed budget contmns a hst showing each proposed pos~t~on, the
proposed salary for the pos~t~on, all benefits proposed for flae pos~t~on, each proposed capital
expend~re, and an es~mate of flae mount of fl~e budget that will be allocated to flae C~ty of
Denton, Texas, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the C~ty Council, pursuant to A~cle 6 06 of the Texas Tax Code,
approves fl~e 1998-99 budget adopted by the Denton Cen~al Apprtusal Dxsmct
~ That th~s resolution shall become effective ~mmed~ately upon ~ts passage
and approval
PASSED AND APPROVED ~xs the ~T~.rc day of~,
1998
JA~ER~ MAYOR -
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
A RESOLUTION VOTING FOR A MEMBER TO THE BOARD OF MANAGERS OF THE
DENCO AREA 9-1-1 DISTRICT, AND DECLARING AN EFFECTIVE DATE
WHEREAS, the term o£ office of Police CNef Don Franklin, a member of the Board of
Managers of the Denoo 9-1-1 District, will expire on September 30, 1998, and
Vv~IEREAS, Section 772 306 of the Texas Health and Safety Code provides that two voting
members of the Board of Managers of an Emergency Commumcatlon Dmtnct shall be appointed
jointly by all cities and towns lying wholly or partly with the district, and
WHEREAS, the City of Denton, Texas wmhes to vote for a member to said Board, NOW,
THEREFORE,
OF CITY OF DENTON, TEX S, EREBY :SOLVES
SECTION I. That the City o£ Denton, Texas hereby votes for ~/~/L~z:~ ~
as a member to the Board of Managers of the Emergency Commumcatlon Dmm~'t o¥~enton
County for a two year term to commence October l, 1998
~ That tNs resolution shall become effeeUve mamedlately upon its passage and
approval
PASSED AND APPROVED tNs the Z/~day of ~1998
ATTEST,
JENNIFER WALTERS, CITY SECRETARY
App~VED~AS TO LEGAL FORM Y
A RESOLUTION OF THE CITY OF DENTON, TEXAS APPOINTING MICHAEL JEZ AS
CITY MANAGER FOR THE CITY OF DENTON, AUTHORIZING THE MAYOR TO
EXECUTE AN AGREEMENT FOR HIS TERMS OF EMPLOYMENT, AND DECLARING AN
EFFECTIVE DATE
WHEREAS, Section 2 08 and Section 5 02 of the Charter of the City of Denton authorize
the City Cotmml to appoint a City Manager, and
WHEREAS, Article V, Section 5 02 of the Charter authorizes Counml to set the
compensalaon for the City Manager
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That Mmhael Jez is hereby appmnted as C~ty Manager of the City of Denton,
Texas, effeclave on September 9, 1998
SECTION II. That the Mayor ~s authorized to execute an agreement with Michael Jez,
provlrhng for substantmlly the same terms of employment as prowded ~n the attached agreement, a
copy of winch ~s attached hereto and incorporated by reference herein
SECTION 1II. That tlus resolution shall become effecnve lmmechately upon ~ts passage and
approval
PASSED AND APPROVED this the f~_ day of~ 1998
J~MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
STATE OF TEXAS §
COUNTY OF DENTON §
EMPLOYMENT AGREEMENT
THIS AGREEMENT, made and entered into tins ~ day of ~
1998, by and between the C~ty of Denton, Texas, a mumc~pal corporation of the St~Je of Texas,
heremafier referred to as "C~ty" and M~chael Jez
WITNESSETH:
1 The C~ty Council of the C~ty of Denton hereby engages the employment services of M~chael
Jez as City Manager of the Ctty of Denton, Texas, to perform the functions and duties
specified m the City Charter, the Ctty Code, and the laws of the State of Texas, and to
perform such other legally permissible and proper duties and functions as the C~ty Council
shall from t~me to amc assign (Extub~t "A' - Job DescnpUon ) Michael Jez shall assume
the duties of C~ty Manager on September 9, 1998 and wdl serve as Acting C~ty Manager m
the absence of the current C~ty Manager, Teedoro Benawdes, untd that date
2a The C~ty Council agrees to pay for h~s services at the inmal salary of $115,000 per year, or
monthly base salary of $9,$83 33 ($55 29 per hour) payable m installments at the same t~me
as other employees of the C~ty are paid In add~tmn to the above salary, the Councd wdl
make an annual payment (at 4% of annual compensation) to the International C~ty
Management Association Rettrement CorporaUon (ICMA-RC) on h~s behalf For the 1997-
98 budget year, the payment wdl be prorated over the number of weeks from h~s
employment date The C~ty w~ll also provide the City Manager a car allowance of $6,000
per year
2b The C~ty Council agrees to pay for the benefits program of IVhchael Jez These benefits
include health ~nsurance, hfe insurance, long-term d~sab~hty ~nsurance, reUrement under the
Texas Mumc~pal l~et~rement System, and other benefits as provided to other Council
appomtees of the C~ty
3 An annual performance review wdl be conducted by the C~ty Council dunng the t~me set
aside each year for other executwe appointees C~ty Council agrees to ~ncrease sand base
salary, frmge, or other benefits in such amounts and to such an extent as the City Council
may determine w~thm the approved budget The C~ty Councxl may determxne that it is
das~rable to adjust salary on the bas~s of the annual performance rewew made at the same
ume as s~m~lar consideration ~s gwen to other Council appointees
4a It ~s recogntzed that the City Manager must devote a great deal of h~s time outside normal
office hours to bustness of the City, and m consideration of that respons~b~hty, the Cay
Manager w~ll be allowed to take compensatory t~me off as he shall deem appropriate dunng
said normal office hours The C~ty Manager shall be able to pamcxpate in teaching,
consulttng, or other non-Cxty connected bus~ness, mcludxng the teaching of exght seminars
for Sam Houston State Unwersxty m 1999, w~thout the prior approval of the C~ty Council,
provided that ttus does not conflict or xnterfere with hxs duties as City Manager
Page 1
4b The City Council hereby agrees to budget and pay the travel and subsistence expenses of the
City Manager for professional and official development and to adequately pursue necessary
official and other functions for the City
4c The City Council also agrees to budget and pay (with the approval of the annual budget) for
the travel and subsistence expenses of the City Manager for short courses, institutes, and
sommars that ere necessary for bas professional development and for the good of the City of
Denton
4d Tho Cay Council agrees to budget and pay (wtth the approval of the annual budget) the
professional dues and subscriptions of the Cay Manager necessary for bas continuat~on and
full participation, including the holding of responsible offices in national, regional, state, and
local associations and orgamzat~ons necessary and desirable for bas continued professional
participat~on, growth, and advancement, and for the good of the C~ty of Denton Tbas
includes allowmg M~chael Jez to maintain bas active peace officer status and allowing barn
to do the required training to mamtam tbas status
5a Before voluntarily resigning his posmon, the Cay Manager agrees to give the C~ty Councd
at least tbarty (30) days notice in writing of bas retention to resign, stating the reasons
therefor
5b The City Manager serves at the will and pleasure of the City Council In the event of bas
involuntary separation as Cay Manager, he shall be entitled to receive a lump sum payment
equal to slx months aggregated salary, proxnded, however, that in the event of bas
ternanatlon because of bas conviction for any offense involving moral turpitude or an illegal
aCt mvoMng personal gain to bam, or as prowded in Section 87013 of the Local
Government Code any act of incompetency, official misconduct, or intoxication on or off
duty caused by drinking an alcohohc beverage, then, m those events, the City shall have no
obligation to pay the aggregate severance sum designated here~n
5c Involuntary separation as used m tbas paragraph means (1) bas d~scharge or d~sm~ssal by
the City Councd, or (2) bas resignation following a reduction in salary or other financial
benefits of the City Manager m a greater percentage than an apphcable across-the-board
reduCtion for all City employees, or (3) m the event the C~ty refuses, following a written
notice, to comply with any other proxaslon benefiting the Cay Manager herein, or (4) the
City Manager resigns, following a suggestion, whether formal or informal, by the Cay
Council that he resign Then, m the event of one of these occurrences hsted above, the Cay
Manager may, at bas option, be deemed '~ermmated" at the date of such reduction ~n pay or
such refusal to comply w~tban the meaning and context of the hereto severance pay
provision
6 All provisions of the City Charter, C~ty Code, and Rules and Regulations of the City
adopted by the City Council relating to vacation and s~ck leave, rettrement and pension
system contributions, holidays, and other fnnge benefits and worlong cond~tmons as they
now eyast or hereai~er may be mended, shall apply to the Cmty Manager as they would to
Page 2
other employees of the City, in a&htlon to smd benefits enumerated specifically for the
benefit of the City Manager, except as prowded hereto The City Manager shall be entailed
to receive the same vacation and sick leave benefits ,as are accorded other City Council
appointees, and these benefits shall continue to accrue at the rate of accrual for employees
with bas same length of serwee, including provis~ons govermng accrual and payment
therefor on terrmnataon of employment
7 Tbas Agreement shall be effective commencing September 9, 1998, and shall continue until
terminated by either party as pmxaded hereto
IN WITNESS WHEREOF, the City has caused tbas Agreement to be signed m its name by
the Mayor, and its corporate seal to be hereunto affixed and attested by its City Secretary, and the
Mayor has hereunto set bas hand and seal the day and year first above written
CITY MANAGER CITY OF DENTON, TEXAS
ATTEST
Jenmfer Walters, Oty Secretary
AP/~OVED AS TO LEGAL FORM
Herbert L, Prouty, City Attorney
Page 3
APPROVAL DATEz
REVISION DATE'
PAY GRADE~
DEPARTMENT~ General Government DIVISION~ General Govt
JOB TITLE~ C~t¥ ~anaoer JOE NUMBER~ JN10
TITLE OF IMMEDIATE SUPERVISOR~ City Council
MAJOR DUTIES~
o Enforces and administers the provisions of the City Charter, City
ordinances, laws governing municipalities, and city council
o Plans, coordinates, and directs the work of City departments, including
City owned utilities, through delegation of authority and responsibility
to executive directors and department directors
o Attends regularly scheduled and special meetings and participates
actively in discussion of matters coming before the City Council and
recommends legislation and policies required in the public interest
o Negotiates and recommends awards of contracts for materials, equipment,
and services.
o Meets with directors and department heads to produce departmental budget
estimates, proposes an annual budget for the City with balanced revenues
and expenditures
o Represents the City in a variety of meetings and public functions.
o Appoints Executive Directors and oversees hiring of department heads,
subordinate officers, employees and is the final reviewing authority on
the termination of classified employees
o Meets with various subordinates individually and as a group to resolve
organizational problems and coordinate departmental work programs.
o Prepares or coordinates preparation of all background material in
connection with Council meetings; attends and represents staff at all
sessions.
o Reviews proposed budgets with the executive staff, makes recommendations
and presentations of budget items to Council and conducts budget work
sessions.
o Meets personally with or receives phone calls from citizens who desire
information or have a complaint; investigates and ensures adequate
responses. Reviews mail and proposes appropriate responses.
o Heads the Executive Committee, which addresses problem-solving issues
related to the municipality; facilitates problem resolutions; initiates
and approves policies.
APP009B5
CITY MANAGER
o Ensures that executive d£rectors motivate their subordinate departments
and divisions to the highest level of 9erformance, conducts annual
reviews for executive directors and subordinate supervisors' and
managers' appraisals
o Makes major changes in the structure, methods, procedures and work flows
of city departments to reflect changes in mission, operational demands
and relationships among departmental units
o Responsible for coordinating the short-range, long-range and strategic
planning of all city departments.
o coordinates the activities of City government with other government
agencies and performs other related duties as required
o Performs related duties as assigned by the City Council
MINIMUM OUALIFICATIONS~
o Five years of strong experience as a city manager, assistant city manager
or deputy city manager
o Master's degree in public administration, business administration or
related field.
o Valid Texas class "C" driver's license
APP009B§
THE CITY FOR ANY LIABILITY, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City of Denton ("City") is the owner of the Civic Center Park and
through the Park and Recreation Department co-sponsors a Blues Festival at the Clv,c Center
Park, and
WHEREAS, the consumption of aleohol,c beverages is allowed In the Civic Center Park
pursuant to C,ty of Denton Code, §22-32(b), and
WHEREAS, the Denton Black Chamber of Commerce ("DBCC") IS a major participant
m this event and will use this event as a fund raiser for its activities, and
WHEREAS, DBCC has requested that they be the sole part,cipant allowed to sell
alcoholic beverages at tl~s year's Blues Festival on August 22, 1998, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I. That DBCC shall be the sole participant allowed to sell alcoholic
beverages at the Blues Festival on August 22, 1998 at the Civic Center Park upon the following
conditions
1 That they shall be responsible for rental of the booth space,
2 That they obtain the temporary 1,eense and permit for selling alcoholic beverages,
3 That they provide the security necessary for the sale of alcoholic beverages,
4 That they prov,de general comprehensive hab,hty insurance from a responsible
surety with the City as an additional insured in the amount of $500,000 00,
5 Agrees to indemnify the City of Denton against any liability incident to the selling
of alcohoh¢ beverages at the Blues Fest,val
SECTION II. That the City Manager is authorized to execute any agreement to satisfy
these eond,tlons without further action by the City Council
SECTION III. Tint ttus resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED thlsthe /ff't~ay of~ 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
F \shared~dep~\LOL\Our Doeuments\Resolut~ons\98\Blues Festival doe
RESOLUTION NO f~ g-O~o
A RESOLUTION APPOINTING BOB COPLBN TO THE BOARD OF DIRECTORS OF THE
UPPER TRINITY REGIONAL WATER DISTRICT, AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, R E Nelson, a member of the Upper Tnmty Regional Water D~stnct
("UTRWD") Board of Directors since ars reception an 1987, has resigned has potation, and
WHEREAS, the City of Denton wmhes to appoint a member who ~s closely assocmted
w~th the day-to-day aet~wties of the water, wastewater, and environmental aspects of the City,
and
WHEREAS, the C~ty of Denton washes to appoint Bob Coplen as a member of smd
Board, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That Bob Coplen as hereby appointed as a member of the UTRWD Board
of Directors
~ That the City Manager, or has designee, ~s hereby directed to transmit a
true and correct copy of this resolution to appropriate officials of the UTRWI)
SECTION III. That th~s ordinance shall become effective ~mmediately upon ~ts passage
and approval
PASSED AND APPROVED thm the /~;~ day ofSj~.~_,1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HEIY. BERT L PROUTY, CITY ATT~ ~ ~
TEODORO ~ED) J BENAVIDES
to the C~ty Council annual budgets r~sultmg m property tax decreases, ~mt~ated work on the comprehensive
plan, diligently maturated state and fodoral attempts at elecmc utd~ty deregulation leglsla,on sho~ened ll~e
~mplementation schedule of the 1995 five year Capital lmprovemenl Program by one year m~t~ated and began
implementation of the sohd waste d~sposal system which will serve Denton well mia the 21s~ cen~ d~rected
staff m short and long range s~rateg~c planmng, successfully addressed employee compensahon ~ssues during
his tenure facihtated improved communication efforts between the C~ly and ibc Denlon Independent School
c~tlzen volunteers m dedicating their nme and effort to C~ty business and
WHEREAS the City of Denton has been extremely fortunate m hawng enjoyed the dedicated and
outstanding contributions of Ted Benavldes, and h~s efforts to make Denton a better c~ty and
WHEREAS, Ted Benawdes has always served above and beyond the efficient d~scharge ofh*s du(~es m
promoting the welfare and prospemy of the C~ly, and has earned the full respect of fl~e C~ty Councd, of his
WIIEREAS, although the C~ty Councd and the c~t~zens of Denton wdl keenly feel the loss of
chaltengmg professional oppormmty NOW, TtlEREFORE,
THE COUNCIL OF THE CIrv off DENTON HEREBY RESOLVES
That the City Council of lhe Cl~ of Denton for ~1self and on behalf of *ts cmzens and the staff of ihe
City of Denton wishes ~o acknowledge wfih smcere and grateful apprec~anon the serwce of Ted Benavldes
a pe~anent manner by reading this Resolution into the official minutes of the C~ty of Denton and making ~t a
pa~ of these minutes, and by presenting him with a t~e copy thereof as a token of our apprectat~on and
BE IT PURTHER RESOLVED
That the Cl~ of Denton does hereby officmfiy and sincerely extends ~ts tl~anks ~o Ted Benawdcs for h~s
PASSED AND APPROVED this the day of 1998
SACK MILLER, MAYOR RON[ BEASLEY
MARK BURROUGHS MIKE COCERAN
NEIL DURRANCE SANDY KRISTOFERSON
CARL O YOUNG SR
ATrESr
JENNIFER WALTERS, CITY SECRETARY HERBERT L PROU rY Cll Y ATTORNEY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE (TML) TO SUPPORT THE RECOMMENDATIONS
MADE BY THE TML LEGISLATIVE POLICY COMMITTEE ON COMMUNITY AND
ECONOMIC DEVELOPMENT REGARDING ANNEXATION, EXTRATERRITORIAL
JURISDICTION, EMINENT DOMAIN, SUBDIVISION, LAND USE, BUILDING CODES,
SALES TAX, LIBRARY DISTRICTS AND OTHER MUNICIPAL POWERS, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the Texas Municipal League holds an annual conference to d~scuss matters
of importance to local governing bodies around the state, and
WHEREAS, the Annual Conference is scheduled for October 28th -- 31st, 1998 in San
Antonio, and
WHEREAS, the Texas Legislature will review several proposals that will potentmlly
impact the anthonty of cities to govern matters such as annexation, extratemtonal jurisdiction,
eminent domain, subdivision, land use, building codes, sales tax, hbrary districts, and other
related topics, and
WHEREAS, the TML Legislative Pohcy Committee on Commumty and Economic
Development met on March 13th, 1998 and July 17th, 1998 and approved the recommendations
attached as Exhibit "A" for the purpose of protecting, mamtmmng, and enhancing mumclpal
authority in the state of Texas, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I. That the City Council supports the recommendations proposed by the
Legislative Policy Committee on Commumty and Economm Development as shown in the
attached Exhibit "A", and urges the TML Resolutions Committee to support these same
recommendations
SECTION II. That the City Manager is anthonzed to forward a copy ofth~s resolution to
Mr Frank Sturzl, Executive Director of the Texas Mummpal League
S]~CTION III That this resolution shall become effective ~mmedlately upon ~ts passage
and approval
PASSED AND APPROVED this the / ~- day of ~jr~/- , 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY t~ ~
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
Exhibit "A"
REPORT OF THE TML LEGISLATIVE POLICY COMMITTEE
ON COMMUNITY AND ECONOMIC DEVELOPMENT
I Seek lntroduet~on and passage of legislation that would
A allow a city to adopt the International Plumbing Code
B repeal the "five-acre exemption" in the platting statute
C direct the county clerk to require that deed-fihng include an affidavit verifying
compliance w~th subdivision reqmrements, as applicable
D provide that (1) ifa city does not collect records preservatxon funds, xt may prowde
access to geographic ~nformat~on data at low cost or no cost to requestors, (2) when a
city provides flus access, ~t may set charges for prowd~ng cop~es of the GIS database,
and (3) such charges may mclude data collection costs, system operation costs, and an
estimation of the value of the information on the commercial market
E create a Pubhc Library Assistance Fund, to be funded by the sales tax on books and
computer sofl~vare, the proceeds of which would be dmtnbuted on a geograptuc, per
capita, and "as needed" bas~s
II Sunnort legislation that would
A replace current regulatsons relating to plumbing ~nspectors, by estabhslung
quahficat~ons for taking the state plumbing ~nspector exam and mmntmnmg a
plumbing ~nspector license
B simplify the procedures reqmred for the development and rews~on of~mpact fees
C protect and strengthen reties' regulatory authority ~n the areas of annexation,
extratemtonal jurisdiction, alcohohc beverage sales and consmnpt~on, pawn shops,
group homes, manufactured housing, baghway logo s~gns, and property takmgs
D, clarify that c~ty zoning regulations enacted prior to June 11, 1987 are not preempted
under the Alcoholic Beverage Code
E allow cities m a county with a population of 750,000 or more to adopt a 4B sales tax
if the cumulative sales tax does not exceed 7 75 percent at the t~me of the elect~on
F allow public hbranes to become members of the TexShare program
G, amend the hbrary d~stnct statute to (1) reduce the population for counties ~n which
districts may be formed, (2) permit elections that would include a c~ty that operates a
library ~fthe city consents, and (3) permit reties to call an election to create a library
d~stnct
III Endorse legislation that would reqmre the seller of a property ~n a mummpal
extratemtonal jurisdiction (ET J) to fully d~sclose to the buyer the fact that the subject
property is m an ETJ and is therefore subject to annexation
IV Opnose legislation that would erode municipal authority in any way or that would
otherwise be demmental to cities, including legislation that would
A erode municipal annexatmn authority
B erode current mummpal economic development authority
C erode mumc~pal eminent domain authority
D re-enact Subehapter I of Chapter 481 of the Government Code (the so-called
"vesting" statute)
E erode mummpal authority m extratemtonal jurisdictions
F mandate the adoption of the Uniform Plumbing Code
G allow a school district, when engaged m a construction project, to comply with e~ther
the local bmldang code or another national or international model code
H impose a statew~de electrical licensing law
I detrimentally affect the current authority of emes to rewew and take action wxth
respect to subdlws~on plats
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO EXCLUDE NEW
GROWTEI FOR THE PURPOSE OF DETERMINING NOTICE AND HEARING
REQUIREMENTS TRIGGERED BY ADDITIONAL AD VALOREM TAX REVENUE, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the Texas Municipal League holds an annual conference to discuss matters
of importance to local governing bodies around the State, and
WHEREAS, the Annual Conference is scheduled for October 28-31, 1998 in San
Antomo, and
WlIEREAS, the 1997 Texas Legislature made changes to the truth in taxation
notification reqmrements, and
WHEREAS, the legislative changes require a governing body to publish notices and hold
a public heanng before adopting a tax rate that will result in any increase in total ad valorem
revenue over the prior year, and
WHEREAS, if the tax rate remmned the same or even decreased and the levy increased
over the prior year, proper notices must be published and a pubhc heanng held, and
WI-IERAS, the City of Denton believes that new growth should be excluded for the
purpose of determunng notice and heanng requirements triggered by additional ad valorem tax
revenue, arid
WiHEREAS, the City Council beheves that an amendment would be of b~nefit to local
govermng bodies around the State, NOW, THEREFORE,
THE CO ~IYNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
$]~CTION I That the City Council requests the Texas Municipal League support
legislation to exclude new growth for the purpose of determining notm¢ and heanng
requirements triggered by addltmnal ad valorem tax revenue
~ That the C;ty Manager is authorized to forward a copy of this resolution to
Mr Frank Sturzl, Executive Director of the Texas Mumclpal League
$~ECTION III That this resolution shall become effective immediately upon ~ts passage
and approval
PASSED AND APPROVED this the
JAC~LER, MAYOR
ATTESTI
JENNIFER WALTERS, CITY SECRETARY
APPR(SVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION REGARDING THE USE
OF LOGO READER BOARDS ALONG INTERSTATES LOCATED OUTSIDE URBANIZED
AREAS WITH A POPULATION OF 250,000 OR MORE, AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the Texas Mumelpal League holds an annual conference to discuss matters
of importance to local govem, ng bodies around the State, and
WHEREAS, the Annual Conference ~s scheduled for October 28-31, 1998 in San
Antonio, and
WHEREAS, the Texas legislature has prewously adopted legislation permitting the use
of logo reader boards along interstates m areas "located outside an urbanized area with a
population of 50,000 or more according to the most recent Federal census", and
WHEREAS, such logo reader boards provide a valuable service to motorists in order to
determine upcoming locations for food, lodging, and gasohne, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the City Council requests the Texas Municipal League support
leg~slaUon allowing the use of logo reader boards along ~nterstates located outside urbanized
areas w~th a population of 250,000 or more
SECTION II That the City Manager is authorized to forward a copy of this resolution to
Mr Frank Sturzl, Executive D~rector of the Texas Municipal League
SECTION III That this resolution shall become effective immediately upon its passage
and approval
?ASSED, , ?ROVEDthlsthe dayof G / m er
JAC~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO AMEND THE
OPEN MEETINGS AND THE OPEN RECORDS ACTS TO ALLOW CITY COUNCILS OF
CITIES OWN1NG AND OPERATING THEIR OWN ELECTRIC UTILITIES TO
NEGOTIATE AND DISCUSS POWER SALES AND OTHER CONTRACTS IN EXECUTIVE
SESSION AND TO WITHHOLD THOSE CONTRACTS OR PORTIONS OF CONTRACTS
WHERE TO DIVULGE THIS INFORMATION WOULD BE DETRIMENTAL TO THE
COMPETITIVE POSITION OF THE CITY, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the Texas Mumclpal League holds an annual conference to discuss matters
of importance to local govemrag bodies around the State, and
WHEREAS, the Annual Conference is scheduled for October 28-31, 1998 in San
Antonio, and
WHEREAS, dunng the last session of the Texas Legislature, several bills wlueh would
have deregulated the electric industry and have required mumclpally-owned electric utilities to
compete directly agmnst all other types of electric utilities, including investor-owned utilities
were introduced, but fmled to pass, and
WHEREAS, the Governor has appointed a committee which has been studying the whole
subject of electric utility deregulation, and
WI-IEREAS, the next session of the Legislature, which meets in 1999, will consider
passage of deregulation legislation wluch could reqmre mumc~pally-owned electric utd~t~es to
compete directly with the investor-owned electric uUht~es, and which could open up all
municipal service areas, which previously have been protected under the law or under certificates
of convenience and necessity, to the right of each mtad customer to choose their own electric
prowder, and
WHEREAS, investor-owned utilities are not required to hold their meetings or
discussions concerning their power sales and other electric contracts ~n pubhc, nor are their
contracts generally subjected to being disclosed to the general public, and
WHEREAS, mumc~palmes who own their own electric uUhtles are reqmred to hold
discussions and negotiations concerning electric power sales contracts and other contracts ~n
public and these contracts are subject to public disclosure through TEX LOC GOV'T CODE
§552, the Public Information Act, and
WHEREAS, in the event of deregulation which prowded d~rect competition between
municipally-owned and investor-owned utilities, municipally-owned electric utilities would be at
a great d~sadvantage over ravestor-owned uttht~es who would be able to determine the
negotmtton strategy and pos~t~on of the mumc~pally-owned utilities and to use that to their
competitive advantage, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the C~ty Council requests that the Texas Mumc~pal League support
legislation whmh would amend TEX LOC GOV'T CODE §551, the Texas Open Meeting s Act,
to authorize a mumc~pallty whmh owns an electric utlhty to d~scuss ~ts power sales contracts and
other elecmcal contracts, including price and other materml ~tems, in a closed meeting, where to
d~scuss this m an open meeting would detrimentally affect the competitive pos~t~on of the
mummpahty with a third party
SECTION II That the City Council requests the Texas Munlc~pal League to support
legislation which would amend TEX LOC GOV'T CODE §552, the Public Information Act,
whmh would create an exception to disclosure in the event of a pubhc request for ~nformatlon,
where to d~vulge the contents of all or port~on of the mumc~pahty's power sales or other
elecmcal contracts would detrimentally affect the competitive pos~t~on of the mumclpahty
SECTION III That the C~ty Manager is authorized to forward a copy of th~s resolution
to Mr Frank Sturzl, Executive D~rector of the Texas Mummpal League
SECTION IV That this resolution shall become effective ammedtately upon ~ts passage
and approval
PASSED AND APPROVED thls the //~--L/- dayof (~.~2~/.~/' , 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO AMEND THE
TEXAS LOCAL GOVERNMENT CODE §252 021 TO ALLOW ALL CITIES UNDER
100,000 POPULATION TO SOLICIT ALL INSURANCE BIDS THROUGH COMPETITIVE
SEALED PROPOSALS INSTEAD OF COMPETITIVE BIDDING, AND PROVIDING FOR
AN EFFECTIVE DATE
WI-IEREAS, the Texas Municipal League holds an annual conference to discuss matters
of ~mportance to local governing bodies around the State, and
WHEREAS, the Annual Conference is scheduled for October 28-31, 1998 in San
Antonio, and
WHEREAS, TEX LOC GOV'T CODE §252 021(b) reqmres a municipality w~th a
population of less than 100,000 to utilize the competltwe sealed bidding process before entenng
~nto a contract for insurance which reqmres any expenditure of more than $5,000 from one or
more mun~clpal funds, and
WHEREAS, TEX LOC GOV'T CODE §252 021(c) allows a munacapahty over 100,000
to use the competitive sealed proposal procedure for the purchase of all insurance, and
WHEREAS, the purchase of insurance today is a complex process ~nvolvlng many
techmcal factors other than price and a competitive sealed proposal process allows the
municipality to consider the relative importance of price and other evaluation factors ~neluded an
the request for proposals other than just price alone, and it would be of extreme pubhc benefit if
cities with populations under 100,000 were allowed to purchase insurance through the
competitive sealed proposal process rather than through the competitive sealed b~ddmg process,
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the City Council requests the Texas Municipal League support
legxslatlon whach would amend TEX LOC GOV'T CODE §252 021 to allow all cities to have
the option of purchamng all insurance through the competitive sealed proposal process
SECTION II That the City Manager ~s anthonzed to forward a copy of this resolution to
Mr Frank Sturzl, Executive Director of the Texas Mumclpal League
SECTION III That th~s resolutxon shall become effective lmmedmtely upon ~ts passage
and approval
JAC~.h~LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION REGARDING THE
REPEAL OF §3 251(d) OF THE PUBLIC UTILITY REGULATORY ACT TO ALLOW
CITIES TO COMPETE AGAINST LOCAL EXCHANGE TELEPHONE CARRIERS IN
COMMUNITIES WHERE THE QUALITY, SELECTION AND COST EFFECTIVE PRICING
OF TELECOMMUNICATION SERVICES ARE INADEQUATE, AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the Texas Municipal League holds an annual conference to discuss matters
of importance to local govemmg bodaes around the State, and
WHEREAS, the Annual Conference is scheduled for October 28-31, 1998 m San
Antomo, and
WHEREAS, the Texas legislature in 1995 enacted §3 251(d) of the Public Utility
Regulatory Act ("PURA") which proinblted municipalities or municipal electric systems from
competing with investor-owned telephone communication utilities by prolubltmg cities from
obtmnmg'certlficates of convenience and necessity to provide telecommunication services, and
WI-IEREAS, the City of Denton and other citrus around the State have fiber optic system
capabilities winch would promote economic development and reduce the cost of
telecommunication services to citizens and customers if such cities were allowed to compete
with local exchange telephone careers, and
WHEREAS, deregulation of the telecommunication industry by State and Federal laws
have not resulted m encouraging, in non urban areas, local exchange telephone careers to install
state of the art fiber optic systems to entice economic development and improve the quality,
selection ,and cost effective pricing of telecommunication services to the current customers
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the City Council requests the Texas Municipal League support
leglslatlofl winch would repeal §3 251(d) of the Public Regulatory Act so that cities will have the
option to compete with local exchange telephone careers who do not provide the level of
telecomrnumcatlons services desired by prospective and current industry and residential
customers in non urban Texas
SECTION II That the City Manager is authorized to forward a copy of tins resolution to
Mr Frank Sturzl, Executive Director of the Texas Municipal League
SI~CTION III That this resolution shall become effective ~mmed~ately upon 1ts passage
and approval
PASSED AND APPROVED this the / ~-~-~.day of (.~,~f~_/~t~,~'--, 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
SOL TION.O
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SEEK INTRODUCTION AND PASSAGE OF
LEGISLATION AMENDING TEXAS LOCAL GOVERNMENT CODE §551 074 (TEXAS
OPEN MEETINGS ACT) TO ALLOW MEMBERS OF GOVERNMENTAL BODIES TO
DELIBERATE BOARD AND COMMISSION APPOiNTMENTS IN EXECUTIVE SESSION,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Texas Mummpal League holds an annual conference to discuss matters
of ~mportance to local governing bodms around the State, and
WHEREAS, the Annual Conference m scheduled for October 28-31, 1998 ~n San
Antonio, and
WHEREAS, TEX LOC GOV'T CODE §551 074 allows governing bodies to deliberate
the appointment of a public officer or employee m executive sesmon, and
WltEREAS, opinions of the Attorney General have held that city councds are not
authorized to deliberate appmntments of adwsory board, commmmon, and committee members
because such persons are not officers or employees of the governing body, and
WHEREAS, the C~ty Council believe that confidential dehberatlons concerning city
boards and commlsmons should be allowed in executive session, regardless of whether the board
or commission is discretionary or advisory, and
WHEREAS, such action would reqmre an amendment to TEX LOC GOV'T CODE
§551 074, and
WHEREAS, the C~ty Councd beheves that such an amendment would be of benefit to
local govcrmng bodies around the State, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the City Council requests the Texas Mummpal League seek
~ntroduct~on and passage to amend TEX LOC GOV'T CODE §551 074 to allow governmental
bodies to ldlscuss appointments to boards, commlsmons, and committees, regardless of whether
the boardlor commmmon is dmcretlonary or adwsory, ~n executive session
SECTION II That the City Manager m anthonzed to forward a copy of this resolution to
Mr Frank Sturzl, Executive Director of the Texas Mumcipal League
SECTION III That this resolution shall become effective lmmed~ately upon its passage
and approyal
P^SSED ~ APPROVED ~s the /~__dayof (~~,~, ~998
JACK~I~I~ER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTiNG
THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO EXPAND THE
TEXAS LOCAL GOVERNMENT CODE §395 001 TO INCLUDE AUTHORITY FOR
IMPLEMENTATION OF IMPACT FEES FOR SCHOOL FACILITIES, AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the Texas Mummpal League holds an annual conference to d~scuss matters
of ~mportance to local governing bodies around the State, and
WHEREAS, the Annual Conference ~s scheduled for October 28-31, 1998 in San
Antomo, and
WHEREAS, TEX LOC GOV'T CODE §395 001 authorizes mummpalmes to charge
~mpact fees for such serv, ces as roads, water, sewer, storm sewer and flood control famlmes to
assist ~n the rapid growth demand for services, and
WHEREAS, states such as Cahforma, Maryland, Washington, Vermont, New
Hampshire, and West V~rg~ma authorize school ~mpact fees, and
WHEREAS, authorization of school ~mpact fees ~n h~gh growth commumt~es across the
state wall prowde needed revenue to bmld and sustmn school systems that provide our chddren
the education they will need to compete in global economy, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the C~ty Counml requests the Texas Mummpal League support
legislation wbach would amend TEX LOC GOV'T CODE §395 001 to expand the authority for
~mplementat~on of school ~mpact fees m lugh growth commumt~es
SECTION II That the C~ty Manager ~s authorized to forward a copy ofth~s resolution to
Mr Frank Sturzl, Executive D~rector of the Texas Mumcapal League
SECTION III That th~s resoluUon shall become effective ~mmedlately upon ~ts passage
and approval
PASSED AND APPROVED th~sthc / ~'~ day of (-~,~'e~, 1998
JAC~t~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
RESOLUTION NO ~- 0~'/9
A RESOLUTION APPROVING THE FISCAL YEAR 1999 BUDGET OF THE DENCO
AREA 9-1-1 DISTRICT, PURSUANT TO TEX HEALTH & SAFETY CODE §772 309, AND
PROV1DIJNG AN EFFECTIVE DATE
WHEREAS, the City Council of the C~ty of Denton has been presented the 1999 Budget
of the Denco Area 9-1-1 D~stnct for approval, ~n accordance with TEX HEALTH & SAFETY
CODE §772 309 (Vernon 1992), NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the City Council of the City of Denton hereby approves the 1999
fiscal year budget of the Denco Area 9-1-1 District
SECTION II. That this resolution shall become effective immediately upon ~ts passage
and approval
PASSED AND APPROVED this the ~7~ day of~, 1998
JA~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~O~'; ~S~TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
F \shared\depflLOL\Our Documcnts\Resolut~ons~98\1999 Denco Area 911 doc
RESOLUTION NO
A RESOLUTION ADOPTING THE CAPITAL IMPROVEMENT PLAN PROPOSED BY THE
PLANNING AND ZONING COMMISSION, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, on the 10th day of June, 1998, the Planmng and Zomng Comrmsmon recom-
mended the capital improvements to be constructed dunng the forthcoming year, and
WHEREAS, the City Manager furmshed a copy of the recommendations to the City Council
on the 16th day of June, 1998, and
WHEREAS, all of the above acttons were taken in comphance w~th the requirements of
Section 10 03(a)(6) of the City Charter, and
WHEREAS, the Cxty Council wmhes to formally adopt the recommendations of the
Commlsmon, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Council approves the hst of capital improvements proposed to be
constructed during the forthcoming year, whtch ~s attached hereto and ~ncorporated herein and made
a part of thru resolution for all purposes
~ That tins resolution shall become effecnve lmmedmtely upon its passage and
approval
ATTEST'
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE
NORTH TEXAS HIGHER EDUCATION AUTHORITY, AND DECLARING AN EFFECTIVE
DATE
WHEREAS, the term of office for Places 2 and 4 on the Board of D~rectors of the North
Texas Higher Education Authority, Inc, have expired, and
WHEREAS, the Board has nominated Dr Governor Jackson for Place 2 and Mr Dan Tonn
for Place 4 on the Board, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That Dr Governor Jackson is hereby reappointed to Place 2 on the Board of
Directors of the North Texas Higher Education Authority, Inc for a term commencing October 1,
1998 and eontmmng through September 30, 2000
SECTION II That Mr Dan Tonn is hereby appointed to Place 4 on the Board of Directors
of the North Texas H~gher Education Authority, Inc for a term commencing October 1, 1998 and
conttnumg through September 30, 2000
SECTION III That this resolution shall become effective ~mmedtately upon Its passage and
approval
PASSED AND APPROVED this the /~/6_~rC day of ~~,, 1998
JA~
ATTESTs
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
FILE REFERENCE FORM I R98-052 I
Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Amended by Resolution No. R2004-017 04/20/04
A RESOLUTION OF THE CITY OF DENTON ADOPTING A POLICY TO ESTABLISH AN
ECONOMIC DEVELOPMENT PROGRAM UNDER CHAPTER 380 OF THE TEXAS LOCAL
GOVERNMENT CODE TO PROVIDE INCENTIVES FOR NON-PROFIT CORPORATIONS TO
CONSTRUCT AFFORDABLE HOUSING, PROVIDING FOR FUNDING OF NOT MORE THAN
39 SINGLE FAMILY EQUIVALENT GRANTS FROM THE GENERAL FUND FOR THE 1998-99
FISCAL YEAR, PROVIDING FOR PROCEDURES TO ACCEPT APPLICATIONS FOR GRANTS
AND FOR PROCESSING THOSE APPLICATIONS, AND PROVIDING AN EFFECTIVE DATE
WHI~REAS, the C~ty Council desires to estabhsh a pohcy to prowde non-profit corporations
~ncent~ves to construct affordable housing w~thm the C~ty of Denton, and
WHEREAS, the C~ty Council deems ~t ~n the pubhc ~nterest to prowde for grants to encourage
the construcllon of affordable housing through an economic development program established under
chapter 380 df the Texas Local Government Code, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the C~ty Council makes the following findings
A The C~ty Council acknowledges the current shortage of affordable housing ~n the city and
the need for local government to encourage construction of add~tmnal affordable housing units
B The Caty's Commumty Development D~vtmon currently receives funding for affordable
housing assistance under the federal Community Development Block Grant Program and the federal
HOME Affordable Housing Program
C That grants of pubhc funds are necessary to prowde an ~ncent~ve for construction of addi-
tional affordable housing umts ~n Denton, and that ttus w~ll serve the pubhc ~nterest by expanding op-
pormmt~es for home ownersh,p and by encouraging further employment, ,ncreas~ng sales tax revenues,
expanding eaonom~c development, and enhancing the C~ty's property tax base
D The City Council has also determined that not-for-profit owners or developers are providing
most of the affordable housing un~ts being bmlt w~thln the City of Denton, and are especially an need
of these grants
E The C~ty Council desires to set forth terms and conditions under which grants w~ll be avml-
able to provide lncent~ves to construct affordable housing on 39 s~ngle family equivalents ("SFE")
during the 1998-99 fiscal year to qualifying not-for-profit entlt~es prowd~ng that the housing umts
comply w~thI criteria for hab~tabd~ty, affordabthty, accessibility, water conservation, energy effimency,
and other staiadards set forth here~n
F The City Council finds that Tex Loc Gov't Code §380 001 allows the govermng body ora
c~ty hke Denton to estabhsh and provide for the administration of one or more programs, including
programs for making loans and grants of pubhc money and prowd~ng personnel and servmes of the
munm~pahty, to promote state or local economic development and to stimulate business and commer-
cial activity m the mummpahty
G The C~ty Council finds that the provision of grants to pay for the construction of affordable
houmng by non-profit corporations to constitute a program for economm development w~th~n the
meaning of Tex Loc Gov't Code eh 380, smce ~t will expand affordable housing within the commu-
mty and promote local eeonomm development and stimulate bumness and commercml activity w~th~n
the C~ty
SECTION II. That the C~ty Council hereby approves the following pohcy to encourage the
construction ~of affordable housing by non-profit corporations w~th~n the C~ty for the 1998-99 fiscal
year
1. Purpose.
There ~s hereby estabhshed an affordable housing grants standard pohcy, sometimes hereinafter
referred to as "pohcy", for the following purposes
(a) To reduce the housing cost burden for low and moderate ~ncome households,
(b) To prow~le home ownership opportunmes for low ~ncome households,
(c) To prowfle affordable housing for low income elderly and d~sabled households, and
(d) To exp~d affordable housing umts within the corporate hm~ts of the City of Denton to encourage
further employment, ~ncrease sales tax revenues, to expand economm development, to enhance the
C~ty's property tax base
2. Definffions.
The following words, terms, and phrases, when used ~n thxs artmle, shall have the meanxngs as-
cubed to them m this section, except where the context clearly xndxcates a different meaning
Affordable housing means owner-occupied sxngle famdy homes that do not exceed Caty of
Denton Housing Assxstance Program cost guldehnes, or housing for low ~ncome renter households that
costs less than 30% of household xncome
Low ~ncorne household means a household that has an annual income less than 80% of the me-
dxan household income for the Dallas metropohtan area, adjusted for household size, as per the apph-
cable federal defimtlon or as per the findings of the Umted States Secretary of Housxng and Urban De-
velopment, m accordance wxth 42 USC § 12745
Non-profit corporation means the equivalent of a "not-for-profit" corporation It means a cor-
poration no l~art of the income of which ~s d~stnbutable to ~ts members, dtrectors, or officers and which
meets all th{ reqmrements of Artmle 1396 §1 01, et seq, the Non-Profit Corporatxon Act, Vernons An-
notated Cxwl Statutes
Smglefarmly eqmvalent (SFE) shall mean an eqmvalent factor, based on the demand assocxated
with the smallest water meter used ~n the C~ty utility system SFE s are utilized to estabhsh the num-
ber of service units to be allocated to various meter sizes used in the City Utdlty system
3. Grant standards.
Only new owner-occupied alngle family home construct, on and low income multi-family, eld-
erly, and/or disabled housing are eligible for grant status Only low ~ncome occupants are qualified for
grant status Only non-profit corporation owners or developers that meet the grant standards set forth
herein are ehg~ble to receive grants Any property within the corporate limits of the Caty of Denton
may be consadered ehglble for grant status
4. Maximum housing costs.
Housing costs may not exceed the current price cap of the dwelhng umt t~ed to the annual re-
quirements of the C~ty of Denton Homebuyers' Asslstance Program admlmstered by the Commumty
Development D~wsmn of the Plaunmg and Development Department
5 Administration.
The Caty of Denton Commumty Development Dlws~on will admlmster the grant standards pro-
gram, and ~s authorized to collect any ~nfonnatmn necessary to determine comphance w~th the grant
reqmrements The Commumty Development D~vlslOn will develop an apphcanon form for quahficd
non-profit ¢orporatmns that intend to construct affordable housing and to apply for a grant
6. Availability of grants.
Grants available for the encouragement of the construction of affordable housing shall be hm-
ired to a maxamum of 39 full (100%) sangle family eqmvalent (SFE) exemptions for the 1998-99 fiscal
year, from October 1, 1998 to September 30, 1999 Each SFE grant allowed may not exceed the
amount of $2,527 The SFE exemptmns shall be available on a first come, first served bas~s, based
upon the date of submittal of an apphcat~on for a grant to construct affordable housln§ w~th complete
reformation to be submitted ~n accordance w~th the reqmrements of the application and subject to the
followang cond~tions and hmltat~ons
(a) Each apphcant must execute a contract w~th the C~ty, which shall be approved as to form by the
C~ty Attorney's office, whtch, among other flungs, reqmres the apphcant/developer to construct a
certain number of affordable housing units wath~n a specified period of tame The contract wall
provldel for a recapture of any grant or other money advanced an the event the apphcant falls to
construct the affordable housing w~tlun the reqmred period or fails to comply with other condataons
set forth an the contract, and the obhganons of the apphcant may be secured by a hen on the prop-
erty
(b) Determination of ehgabthty ofSFE un~ts for grants for the 1998-99 fiscal year will be based on re-
v~ew of a written apphcat~on estabhshed by and submatted to the Caty of Denton Commumty De-
velopm~nt Davaslon The Commumty Development Davasaon may reqmre any ~nformat~on deemed
necessary to determine ~f the proposed housang umt(s) meet all grant standards
(c) Any ehglble multi-family housing umt shall meet the following criteria to quahfy for a grant
(1) Total housing costs may not exceed the fmr market rents established by the Denton Housxng
Authority (DHA), or may not exceed fair market rents estabhshed by HUD for the Dallas/Fort
Worth area ifDHA fair market rents are not available, and
(2) Ehglble mult~-famlly housing un~ts must not exceed total housing cost reqmrements for a pe-
riod of not less than ten (10) years The Commumty Development Division ~s spee~fically
anthonzed to estabhsh momtonng procedures to ensure comphanee w~th th~s standard
(d) Any eligible single family housing umt shall meet the following entena to quahfy for a grant
(1) Qualified owner occupants must maintain ownership and reside in the unit receiving the grant
for a mammum period of five (5) years
(e) The applicant must dehver to the C~ty of Denton Commumty Development D~vlslon a s~gned eon-
tract, deed of trust and promissory note if deemed necessary, and other documentatxon deemed
necessary by the City Attorney to estabhsh an enforceable obhgatxon by the appheant to repay to
the C~ty an amount equal to the total grant amount apphcable to the housmg un~ts ~f the apphcant
does not eunstmct and sell the affordable housing unit to a quahfymg low income family within
fifteen months of the execution of the documents, or rent the affordable housmg unit w~thm fifteen
months of the execution of the documents to a low ~ncome household
(f) The design and the eonstruct~un of the affordable housing unit must meet the entena estabhshed by
the C~ty of Denton Commumty Development Dlws~on for habltabfl~ty, affordablhty, accessibility,
water conservation, and energy efficiency
(g) The affordable housing umt must be served by ex~stmg City infrastructure and servxces
(h) Dunng the fiscal year, the City of Denton Community Development Division Manager must pro-
wde written certification to the C~ty of Denton Building Officml ~dentlfymg the service addresses
of the affordable housing units selected to receive any grant under th~s pohcy The wntten not,ce
from the Commumty Development D~v~s~on manager must be made before the issuance of a
building permit authorizing the start of construction of the housing unit
0) If the appheant fails to finish construction of the affordable housing unit within fifteen months after
cert~fication, the Community Development Division Manager may revoke the certification
(j) If the appheant constructs the affordable housing unit, but defaults w~th respect to its obhgatmns
under the contract or any documents, or any other obhgat~on of the documents dehvered to secure
the obhgat~ons of the apphcant, or fmls to perform m accordance with the conditions for the receipt
of this grant, the Conunun~ty Development Division Manager and the City Attorney may ~mt~ate
legal proceedmgs to recover the grant amount that would have apphed to the housing un~t, m addi-
tion to any costs recurred m recovenng those grants Any funds recovered shall be deposited to the
general fund
(k) The grant provided for by th~s sectaon may not be assigned or transferred by the apphcant to any
other property
7 Establishment of budget for grants.
For the 1998-99 fiscal year, the City Council will establish m its annual budget, as adopted by
ordinance, an mount sufficient to cover the provision of grants to provide ~ncent~ves for the construc-
tion of affordable housing by non-profit corporations for a maximum of 39 full (100%) single family
eqmvalent exemptions in a total amount not to exceed $100,000 On or before thirty days before the
end of the 1998-99 fiscal year, the City Council will examine the policy to determine whether ~t will
continue the pohcy through additional fiscal years
SECTION III Th~s resolution shall take effect on September 29, 1998
PASSED AND APPROVED this the //ff~ f
~ dayo ~~1998
JAC~V'LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPI~VED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
A RESOLUTION SUPPORTING A GRANT FROM THE TEXAS FOREST SERVICE TO
KEEP DENTON BEAUTIFUL, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, trees clean the mr, produce oxygen, prowde a habitat for wddhfe, cut
heating and coohng costs, and can reduce the erosion of topsotl, and
WHEREAS, trees increase property value, enhance the economic wtahty of bus~ness
areas, and beautify our commumty, and
WHEREAS, the Keep Denton Beautiful Program has encouraged the planting and
maintenance of trees, promoted the eommumty forestry program, and orgamzed annual Arbor
Day celebrations, and
WHEREAS, the C~ty of Denton, upon recommendation by Texas foresters, has been
recogmzed as a 1997 Tree C~ty USA by the National Arbor Day Foundation, and
WHEREAS, the Texas Forest Serwce, m cooperation w~th the Umted States Forest
Service and the Texas Urban Forestry Council, Inc has estabhshed an urban and commumty
forestry challenge cost-share program, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I, That the C~ty Council hereby supports a grant to Keep Denton Beautiful
from the Texas Forest Service through ~ts America The Beautiful-Challenge Grants Program to
fund the Tree Inventory, Tree Keepers, and volunteer training project
SECTION II That th~s resolution shall become effective ~mmed~ately upon ~ts passage
and approval
PASSED AND APPROVED this the/,0"~----/~day of ~?~, 1998
JAC~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
S \Our Documents~Resolutaons\98\Texas Fore. st S~rvlce doc
Next Document
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING THE ASSIGNMENT BY ALAN RITCHEY, INC OF A COMMERCIAL
OPERATOR AIRPORT LEASE EXECUTED MAY 15, 1998 TO ROBBY RITCHEY, AND
PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City of Denton has leased an'port property to Alan l*dtchey, Inc, and
WHEREAS, Alan Pdtchey, Inc w~shes to assign its interest m the mrport lease to Robby
Ratchey, and
WHEREAS, Alan Ratchey, Inc is required to obtmn the C~ty's written consent to ttus
asagnment, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That under paragraph XI (Assignment of Lease) of the Commercial Operator
Airport lease between the City of Denton and Alan Pdtchey, Inc dated May 15, 1998, the City of
Denton gives its written consent to the assignment of such lease to Robby Pdtchey
SECTION II That consent to ttus asmgnment ~s subject to and shall be considered valid
only for so long as Robby Pdtchey complies w~th all temas of the lease agreement of May 15, 1998
between the Oty of Denton, Texas and Alan R~tchey, Inc
SECTION III That th~s resolution shall become effective ~mmedlately upon its passage and
approval
PASSED AND APPROVED thls the ~'b~-~ dayof (~-~c~/~- ,1998
JAC~ILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~t, OVED A~.~.D_LF~AL FORM
HERI~ PROUTY, C'I)TY ATTORNEY
RESOLUTION NO ~
A RESOLUTION RECOMMENDING THAT THE DENTON MAIN STREET PROGRAM BE
ENTERED INTO THE GREAT AMERICAN MAIN STREET AWARDS, AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the downtown area and the Square m Denton have been the focal point of the
commercial and social growth and success of Denton for nearly a century and a ha~, and continue to
hold a place of honor m our commumty, and
WHEREAS, the elt~ens of Denton and the merchants of Downtown Denton have endeavored
to preserve and promote the umque heritage of Denton, and many volunteers have unselfishly
contributed untold hours of their tune and effort to the econonuc revltahzaUon and development of the
Downtown Denton area and the Square, and
WHEREAS, the citizens of Denton, the merchants of the downtown area and the Square, and
the employees of the City of Denton Mmn Street have joined m a umque partnersbap ~n promoting
these objectives for the downtown area and Square by formang and supporting the Denton Mare Street
Program and they beheve that downtown rewtahzauon efforts ~n Denton represent the spent of our
pioneer forefathers and the xagor of our present day entrepreneurs, and
WHEREAS, tho success of the Denton Mare Street Program m restonng econonuc Vltahty,
preserv~n8 and restonng historic roes and the resulttng commercial and social success In the Denton
Downtown area and the Square is unsurpassed when compared to slrmlar commumues and should
quahf~ this program for a Great American M_mn Street Award, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the City Council of the C~ty of Denton fully supports the entry of the Denton
Mmn Street Program m the Great American Ma~n Street Awards competmon
SECTION II That th~s resolution shall become effective munechately upon its passage and
approval
PASSED AND APPROVED thts the ~ day of~998
JACY~LER, MAYOR
PAGE1
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
I
E q)OCSq~EShMAIN STREET PROORAM
PAGE 2
A RESOLUTION DIRECTING THE CITY MANAGER TO NOTIFY THE UPPER TRINITY
REGIONAL WATER DISTRICT OF THE CITY OF DENTON'S DESIRE TO NOT
CONTINUE ITS PARTICIPATION IN THE LAKE CHAPMAN (COOPER RESERVOIR)
WATER SUPPLY PROJECT, DISAPPROVING THE DISTRICT'S PROCEEDING WITH
THE PROJECT, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton entered into a contract with the Upper Tnmty Regional
Water District (UTRWD) on June 10, 1991 to purchase water supphes in Lake Chapman
(Cooper Reservoir) from the Town of Commerce and to develop strategies to transport this water
for the City of Denton, and
WHEREAS, the contract was divided into two separate phases Phase I ~ncluded the
acquisition of the water supply, the engmeenng planmng and feasibility stages of the project, and
obta~mng necessary governmental approvals to transport the water supply from Lake Chapman
(Cooper Reservoir) to the Part~clpatmg Members of the project Phase II of the project involved
the issuance of bonds by the UTRWD to finance the construction of p~pehnes to convey the
water from Lake Chapman (Cooper Reservoir) to the Participating Members of UTRWD's water
supply project or commenced when a construction contract is executed by UTRWD for these
purposes, and
WHEREAS, the contract specifies that prior to construction of plpehnes to convey water
from Lake Chapman (Cooper Reservoir), all of the part~elpanng members of the project must
give the UTRWD approval, and
WHEREAS, the UTRWD has provided the City of Denton with preliminary cost
estimates for the construction of the plpehnes necessary to convey the water supplies from Lake
Chapman (Cooper Reservoir) to Lake Lewlswlle, and
WHEREAS, the UTRWD Board of Directors passed Resolution 98-23 determimng the
cost and the feasibility of the project to convey water from Lake Chapman (Cooper Reservoir) to
UTRWD and its members, and
WHEREAS, by its letter of July 8, 1998, the UTRWD has notified the City of Denton of
their intention to proceed with Phase II of the Lake Chapman (Cooper Reservoir) Water Supply
ProJect and has requested that the City of Denton notify the UTRWD of their desire to continue
participation in the project and of the City's approval for UTRWD to proceed with the project,
and
WHEREAS, the City of Denton Water Utilities staff h~red an engmeenng consultant
(Freese and Nichols) and conducted supplemental studies to evaluate the City of Denton's long
range water supply needs and the merits of this water supply project in meeting those needs, and
WHEREAS, the City ofDenton's Pubhc Utilities Board and C~ty Council considered this
Information provided by staff at regularly scheduled meetmgs and work sessions and found that
it was not in the public interest to participate further in the project, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the City Council of the City of Denton hereby directs the C~ty
Manager to provide written notification to the Upper Trmity Regional Water D~smct of the City
of Denton's desire to not continue as participation m the Lake Chapman (Cooper Reservmr)
Water Supply Project and accordingly does not approve UTRWD's proceeding with the project
or the altemat~ve funding for the project The C~ty Manager shall provide wath the notice a
certified copy of this resolution
SECTION II That this resolution shall become effective ~mmedlately upon its passage
and approval
ATTEST,
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
OBLIGATION BONDS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") is a mumclpal corporatlon/poht~cal
subd~wslon of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures m connection with the upgrade of the
Spencer telephone switch to accommodate the move of Electric Distribution and Metenng
Davlslonsl to the Spencer complex described an Exhabat "A' attached hereto (the "Project"),
which Exhlbat "A" as attached hereto and made a part of thas resolution for all purposes, prior to
the issuance of obhgataons to finance the Project, and
WHEREAS, the Issuer finds, consaders, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consastent wath the lawful
object~vea of the Issuer and, as such, chooses to declare ~ts lntentmn, an accordance with the
prowslon$ of Seetaon 1 150-2 Treasury Regulataons, to reimburse itself for such payments at
such tame,as at assues the obhgat~ons to finance the Project, NOW, THEREFORE,
THE COWNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the Issuer reasonably expects to ~ncur debt, as one or more series of
obhgataous, wath an aggregate maxnnum pnneapal amount equal to $50,000 for the purpose of
paying the costs of the Project, as set forth ~n the attached Exhthat "A"
~ That all costs to be reimbursed pursuant hereto will be desagn and capital
expendatures No tax-exempt obhgatlons will be issued by the Issuer m furtherance of th~s
resolution after a date which is later than 18 months after the later of (1) the date the
expenditures are paid, or (2) the date on which the property, with respect to which such
expenditures were made, is placed an service
SECTION III. That the foregoing notwithstanding, no tax-exempt obhgatlon will be
~ssued pursuant to this resolution more than three years after the date any expenditure wluch as to
be relmbm'sed as prod
SECTION IV. That this resoluUon shall become effecUve ~mmedlately upon its passage
and approval
/~I'LLER MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
Page 2
EXHIBIT A
PROJECT Upgrade of Spencer telephone sw~tch to accommodate the move of the
Electrte Metenng and D~stnbut~on D~ws~ons to the Spencer complex
TOTAL $50,000
RESOLUTION NO /'~ ~-O~Y
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FOR
PUBLIC SAFETY EQUIPMENT (A QUINT AND A SNORKEL) WITH CERTIFICATES OF
OBLIGATION, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") ~s a mumclpal corporat~on/pohtmal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures In connection with the purchase of
the equipment described m Exhibit "A" hereto (the "Equipment"), winch Exinb~t "A" is attached
hereto and made a part of this resolution for all purposes, prior to the issuance of obhgat~ons to
finance the purchase ofpubhc safety equipment (a quint and a snorkel), and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consistent with the lawful
objectives of the Issuer and, as such, chooses to declare ~ts lntenUon, in accordance with the
prowslons of Section 1150 2 Treasury Regulations, to reimburse ~tself for such payments at such
t~me as it Issues the obligations to finance the Equipment, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
SECTION I That the Issuer reasonably expects to recur debt, as one or more series of
obhgatlons, with an aggregate maximum pnnclpal amount equal to $1,171,093 for the purpose of
paying the costs of the Equipment, as set forth m the attached Exinint "A"
SI~CTION II That all costs to be reimbursed pursuant hereto will be capital
expenditures No tax-exempt obligations will be issued by the Issuer ~n furtherance of tins
resolution after a date which is later than 18 months after the later of (1) the date the
expenditures are pa~d, or (2) the date on which the property, w~th respect to winch such
expenditures were made, ~s placed m service
SECTION III That the foregoing notwlthstanthng, no tax-exempt obligation will be
issued pursuant to tins resolution more than three years after the date any expenditure winch is to
be reimbursed ~s prod
SECTION IV That this resolution shall become effecUve ~mmedlately upon ~ts passage
and approval
PASSED AND APPROVED tinsthe ~/~--'~ dayof ~-~7~ ,1998
JAC~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP ED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
EXHIBIT A
Purchase Pubhc Safety Eqmpment $682,030 00 For a Snorkel E-One L105 full t~lt extruded
aluminum cab, tandem axle, extruded
aluminum body, aluminum aerial platform
$489,063 00 For a Quint E-One HP75 full t~lt exu'uded
aluminum cab, single axle, extruded aluminum
body, aluminum aerial ladder
Total $1,171,093 00
A RESOLUTION NOMINATING MEMBERS TO THE APPRAISAL REVIEW BOARD OF
THE DENTON CENTRAL APPRAISAL DISTRICT, AND DECLARING AN EFFECTIVE
DATE
WHEREAS, the term of office for various Appraisal Review Board members of the
Denton Central Appraisal District will expire on December 31, 1998, and
WHEREAS, the City of Denton, Texas wishes to nominate members to smd Board,
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES
S CT_S_~ That the City of Denton, Texas hereby nominates ~
A~Vrr~,~/> /~E~a/ ,,~t~-~l~///g~-, and as members to the
Appraisal Review Board of the Denton Central Appraisal District
~ That this resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the ~/~L/¢ day of ~2~7~/ ,1998
JACK~ ~' -
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY ~ia~l~-.-, .... ~
OVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Nyxt DoCument
A RESOLUTION APPOINTING CITY MANAGER MICHAEL W JEZ TO THE BOARD OF
DIRECTORS OF THE DENTON RETIREMENT AND NURSING CENTER FINANCE
AUTHORITY, AND DECLARING AN EFFECTIVE DATE
WHEREAS, Ted Benavldes has resigned h~s posltlon as a member of the Board of
D~mctors of the Denton Retlremant and Nursing Center Finance Authority, effective September
8, 1998, and
WHEREAS, the City Council wishes to appoint hm successor, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
S~CTION I That Mmhael W Jez is hereby appointed to the Board of D~rectors of the
Denton Retirement and Nursmg Center Finance Authority
SECTION II That the term of office for smd member shall be the remainder of Ted
Benawdes' term of office, which shall expire November 2, 1999
~ That this resolution shall become effective ~mmed~ately upon its passage
and approval
PASSED AND APPROVED this the ~ff_~_~day o f t/~//~ff]t ~-t~ff~ ,1998
J~a~MIIJLER~ IV~AYOR
ATTEST'
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
F \shared\dept\LGL\Our Doeuments~Resolut~on s\9 8~Jez Denton Retirement Appoint doc
A RESOLUTION APPOINTING CITY MANAGER MICHAEL W JEZ TO THE
BOARD OF DIRECTORS OF THE DENTON HEALTH FACILITIES
DEVELOPMENT CORPORATION, AND DECLARING AN EFFECTIVE DATE
WHEREAS, Ted Benavldes has resigned hm position as a member of the Board
of D!rectors of the Denton Health Facflitms Development Corporation, effective
September 8, 1998, and
WHEREAS, the City Council wishes to appoint hm successor, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That Mmhael W Jez m hereby appmnted to the Board of Directors
of the Denton Health Facflltms Development Corporation
SECTION II. That the term of office for smd member shall be the remamder of
Ted Benamdes term of office, wluch shall expire on November 2, 1999
SECTION III. That th~s resolution shall become effective ~mme&ately upon its
passage and approval
PASSED AND APPROVED this the~.~ ~/day of .~/~/r~r .1998
J .,' LLEi,-M^YOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
/
F \sharedklept~LOL\Our DocumontsW, esoluttons\98klez Health Fac Dev Appoint doc
A RESOLUTION APPOINTING CITY MANAGER MICHAEL W JEZ AS A MEMBER OF
THE BOARD OF DIRECTORS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY
BOARD, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City of Denton, Texas has approved the crealaon of the City of Denton
Industrial Development Authority (IDA) pursuant to the promslons of the Development Corporation
Act of 1979, and
WHEREAS, Ted Benawdes, one of the three members of the Board of D~rectors of the
Industrial Development Authority (IDA) has reslgned bas poslt~on as a D~rector as of September 8,
1998, and
WHEREAS, the City Cotmcfl deems it the pubhc interest to appoint the City Manager,
Michael W Jez, to the Board of D~rectors of the IDA, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the followmg person ~s hereby appmnted to the Board of Dtrectors of the
City of Denton Industrial Development Authority
NAME ADDRESS
Mlehael W Jez 215 East McKnmey
City Manager Denton, Texas 76201
Tba$ Director shall serve a term of office of slx years The renu of the foregomg member
shall expn'e on September 8, 2004
SECTION II That tins resolutnon shall become effective munedlately upon its passage and
approval
PASSED AND APPROVED flus the,ff~/day of
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2
F \shar~d\dept~LOL\Our D ooumenls~.e solutionsk9 8\Mayh111 Reimburse Ros doc
A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
UNRESERVED FUND BALANCE OF THE GENERAL FUND WITH GENERAL
OBLIGATION BONDS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") is a mumcipal corporation/pohtlcal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures in connection with the widening of
Mayhlll Road from Mills Road to McKmney Street as described in Exhibit "A" attached hereto
(the "Project"), which Exhibit "A" is attached hereto and made a part of this resolution for all
purposes, prior to the issuance of obhgatlons to finance the Project, and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consistent with the lawful
objectives of the Issuer and, as such, chooses to declare its lmention, in accordance with the
provisions of Section 1 150-2 Treasury Regulations, to reimburse itself for such payments at
such time as it issues the obhgatlons to finance the ProJect, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I, That the Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum principal amount equal to $300,000 for the purpose of
paying the costs of the ProJect, as set forth in the attached Exhibit "A"
SECTIONII That all costs to be reimbursed pursuant hereto will be capital
expenditures No tax-exempt obhgatlons will be issued by the Issuer in furtherance of this
resolution after a date which is later than 18 months after the later of (1) the date the
expenditures are paid, or (2) the date on which the property, with respect to which such
expenditures were made, is placed m service
SECTION III That the foregoing notwithstanding, no tax-exempt obligation will be
issued pursuant to this resolution more than three years after the date any expenditure which is to
be reimbursed is paid
SECTION IV That this resolution shall become effective immediately upon its passage
and approval
PASSED AND APPROVED th,sthe day of , 1998
F \shared\dept'~.OL\Our Doeumen~s~Resolut~o~s~98\Mayhfll Reimburse Res doc
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
EXHIBIT "A"
PROJECT, The wldemng of Mayhdl Road from McK~nney Street north to
400 feet south of M~lls Road, a 4-lane curbed and guttered
street Drainage ~mprovements as required by the C~ty's
Subdivision Rules and Regulations w~ll be ~ncluded ~n the
project, as well as all necessary surveying, engineering, and
construction
The C~ty has entered into an mterlocal agreement w~th the
Denton Independent School Dmtnct for the completion of thru
project The DISD w~ll prowde $377,000 of the funding for th~s
project, and the C~ty w~ll prowde $300,000
On August 7, 1998, the Oversight Committee recommended the use of
funds demgnated for the M~lls Road project m the general obhgat~on bonds to
be sold ~n fiscal year 1998-99 (Project No 001097) The C~ty Council
approved the use of these funds on April 21, 1998
TOTAL $300,000
2
A RESOLUTION OF THE CITY COUNCIL OPPOSING THE ISSUANCE OF A TEXAS
NATURAL RESOURCE CONSERVATION COMMISSION AIR QUALITY PERMIT TO
MAROCK INCORPORATED FOR AN ASPHALT/CONCRETE PLANT AT PROPERTY
LOCATED ON MASCH BRANCH ROAD, AUTHORIZING THE MAYOR TO WRITE A
LETTER OPPOSING THE GRANTING OF AN AIR QUALITY PERMIT FOR SUCH
PLANT, AND DECLARING AN EFFECTIVE DATE
WHEREAS, Denton County is the owner of a tract of real property located on Masch
Branch Road, and there are other neighborhoods, including Ranch Estates, m close proximity to
this location, and
WHEREAS, Maroek Incorporated ~s the owner of an adjacent tract of real estate upon
which Marock Incorporated proposes to construct and operate an asphalt/concrete plant, and has
submitted an application to the Texas Natural Resource Conservation Commission (the
"TNRCC") for Air Quality Permit #39266, and
WHEREAS, Denton County was determined to be a critical non-attainment area by the
U S Enwronmental Protection Agency, and
WHEREAS, today the Denton County Commissioners Court passed a resolutxon
opposing the issuance of Air Quality Permit #39266 to Marock Incorporated by the TNRCC (a
copy of which ~s attached to th~s resolutaun) beeanse they believe the operations of said plant will
result m the emissions of carbon dioxide gas and other pollutants which will pose a threat to the
health and safety of Denton County workers assigned to Denton County's future Road and
Bridge F~cllity Additionally, the proposed plant will pose a threat to ground water, and the
truck traffic from the plant will adversely impact the roads and safety of the residents of the area,
and
WHEREAS, the City Council believes that the impact of the plant will also detrimentally
affect neighborhoods near the proposed location of the plant, and deems it in the pubhe interest
to pass a resolution opposing Air Quality Permxt #39266, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the C~ty Council hereby opposes the issuance of Air Quality Permit
#39266 to Marock Incorporated by the Texas Natural Resource Conservation Commission
SECTION II That the Mayor IS hereby authorized to write a letter to appropriate
officials of the TNRCC opposing the issuance of Axr Quality Permit #39266 to Marock
Incorporated
SECTION III. That this resolution shall become effectxve xmmedmtely upon its passage
and approval
PASSED AND APPROVED this the .fl ~--t~/ clay of ////~pt~ff/~/~, 1998
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~V,ED 1
AS TO LEGAL FORM
HERBERT L PROUTY, CITY AT?J~RNEY
Page 2
NOTE. Amended by Resolution No R99-036
A RESOLUTION ADOPTING THE ROADWAY COMPONENT OF THE DENTON
MOBILITY PLAN FOR THE CITY OF DENTON, PROVIDING A SAVINOS AND A
REPEALING CLAUSE, AND PROVIDrNG AN EFFECTIVE DATE
WHEREAS, the Engmeenng and Transportation Department has prepared the Roadway
Component of the Denton Mobility Plan to replace the 1988 Thoroughfare Plan, and
WHEREAS, on December 2, 1998, the Plmmmg and Zomng Commmmon recommended
approval of the new plan, and
WHEREAS, the C~ty Council finds that the change from the 1988 Thoroughfare Plan to
the Roadway Component of the Denton Mobd~ty Plan as presented to the C~ty Councd at a
pubh¢ hearing on December 15, 1998, ~s m the best interests of the health, safety and general
welfare of the mt~zens of the C~ty of Denton, Texas, NOW, THEREFORE,
THE COLrNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the C~ty Counml has rewewed the attached Denton Mobd~ty Plan-
Roadway, Component, which illustrates the ahgnments and locatmn of ex~stmg and planned
roadways w~thm the C~ty of Denton, Texas, and hereby adopts such plan as the gmdehne to be
used by C~ty m planmng, funding and constructing roadways w~thm the C~ty of Denton, Texas
SECTION II That all resolutmns or parts of rcsolutmns m force when the prowmons of
th~s resolution became effective which are ~nconmstent or ~n conflict w~th the terms or provm~ons
contmned ~n ttus resolution are hereby repealed to the extent of any such conflmt only The non-
confl~ctlr[g sections, sentences, paragraphs, and phrases shall remmn ~n full force and effect
SECTION III That thru resolution shall become effective ~mmed~ately upon ~ts passage
and approval
PASSED AND APPROVED this the/~- _ day of ,1998
,
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
Memo
To Planmn~ and Zomng Cormmss]on
~From ~eny Clark, D~rector of En~ueenng and Transpor~aUon
Date 11/23/98
Re Approval of Roadway Component of the Denton Mobdity Plan
We presented the Roadway Component of the Denton Mobility Plan to you on
November 11, 1998 The presentation ~ncluded details of why we need to adopt the
1998 Denton Mobility Plan We are currently operating from the 1988 Thoroughfare
Plan which I~m~ts us ~n several ways We Nil have the presentation available to you
at the P& Z meeting ~f any further concerns or questions have ansen
We have added the connection of H~ckory Creek over to FM 2499 ~nstead of
stol~p~ng ~t at FM 2181 as shown to you The alignment on FM 2499 has been
adjusted to match ROW Dedicet~ons that exist today from platting ac'awt~es ~n the
recent past
A color copy of the Denton Mobility Plan Roadway Component ~s enclosed for your
use and reference The plan will go to C~ty Coun~l Nth your recommendations on
December 17, 1998 The Roadway Component has been labeled the Thoroughfare
Plan ~n the past It ~s labeled as the Roadway Component s~nce there are several
other components that will be coming to you for consideration ~n the near future
Those are, Transit, Walkways, Bikeways, Airport, and Ra~l We need to consider the
entire Trensportabon System ~n our planning for the future
Your consideration and approval of th~s Roadway Component Nil help create the
foundation for the "Comprehenave Plan" that ~s coming to you early ~n 1999 HOK
has ,cop~es of the Proposed Roadway Component and will be consldenng those ~n
the Growth Management Strategy based on P&Z and City Coun~l approvals
We~have also enclosed soma ~nformat~on from Mayor Jack M~ller on the Texas
Department of Trensportat~on Projects that are quickly mowng to construction in the
~mmed~ate future We have also enclosed the Trensportat~on Component of the five
year Cap,al Improvements Program of the C~ty of Denton
· Page 1 ]..
JACK MILLER CITY OF DENTON
MAYOR 215 EAST McKINNEY STREET
DENTON, TEXAS '/6201
MEMORANDUM
DATE November 20, 1998
TO Council Members
FROM Mayor Jack M~ller
SUBJECT TXDOT TRANSPORTATION IMPROVEMENT PLAN (TIP)
Last week dunng our discusmon on the Denton Mob~hty Plan I menboned the good news
we received from TXDOT concerning the new funding schedules based on the New
FederalI Transportation Eqmty Act of the 21st Century (TEA-21) We have numerous
projects In many d~fferent funding categones that w~ll help us over the next several years
Projects are ranked e~ther m pnonty one or two Pnonty two means that authonty for
preparation of plans, spemficabons and estimates (PS&E's), and nght-of-way acqu~s~bon
can ocour As TXDOT's design d~wmon fimshes plans the reqmred nght-of-way can be
acqmred That would allow distncts to propose a schedule for construcbon contract award
Pnonty one is the authonty to complete the PS&E's, adjust uttht~es, and let the b~ds for
construction contracts These projects are the h~ghest and best ranked and generally
have a Contract letting date assigned
The following projects have d~ract beanng on the cry I have hsted each one of them as
well as the level of authonty 0 e, pnonty one or two) They are as follows
Memo to Council Members
November 20, 1998
Page 2
ROAD & DESCRIPTION TYPE OF FACILITY COST
U S 380 from 1-35 to Six lane dlwded urban $ 3,800,000
U S 77 or Elm Street Priority Two
U S 380 from Loop 288 to Slx lane dlwded urban 10,400,000
U S 77 Pnonty Two
U S 380 from U S 377 to the Colhn Four lane d~v~ded rural 26,000,000
County line Prlor~ One - scheduled for the
year 2000
Loop 288 from U S 380 to F M 426 Six lane divided urban 4,820,000
Pr~onty one, b~d date 2002
Loop 288 from FM 426 to Widen to s~x lanes 8,900,000
1-35E Priority One, b~d date 2002
U S 77 from 1-35N to Fourlane urban 5,136,000
U S 380 Priority Two
Signal at 1-35E and State School Bid date 1999 90,000
Road
Reconstruct Carroll Boulevard from Refurb~shexlsbng streets 150,000
McK~nney Street south to Fort Worth (Urban Street Program)
Drive
Landscape project on Fort worth Interior medians 60,000
Dr~ve from 1-35 to Colhns Bid date Spring 1999
1-35W from 1-35E to the Tarrant Reconstruct shoulders and 5,000,000
County line w~den and bridge sectlons
1-35W from 1-35E to Tarrant County Mill, seal and overlay ma~n lanes 5,740,000
Letting date 2000
FM 1830 from Hickory Creek south Add shoulder and resurface 715,000
2 1 miles
TOTAL $60,811,000
Memo to Council Members
November 20, 1998
Page 3
After looking at the list you can see why I was so excited about the news from COG and
TXDOT We are very pleased We will continue to work with COG, TXDOT, the County
and other entlt~es to make improvements in the system Staff is working on a number of
other projects that will contribute to the system with the assistance of the County and the
ClP program The future of our mobility system is looking the best ~t has since I've been
on the council
If you have any questions, please give Rick or Jerry a call
JM af
Cc Michael W Jez, City Manager
R~ck Svehla, Deputy City Manager
Jerry Clark, Director of Engineering & Transportation
*" OI~FI¢IE OF THi ~ITY MANAG~.R
MEMORANDUM
DATE October '~ 6, 1008
TO Mayor and Members of the City Council
FROM Risk Svehla, Deputy CJty Manager
SUBJECT County Bond issues
The County s Citizens Bom3 Committee has been meehng on Wednesdays for the last oouple of
months. East Weclnesday night the Committee appn3ved the following eltached list of Projects
and will be recommending that to Cemmmmoners Court ~n the next couple of weeks The good
news ~s that the fist contains a lot of projeots that. will d~rectly affect end benefit the o~'ty Those
projects ars listed aa fOllOws
IH 38E Widenenlng $2.000,000
FM 2499-,~ectlon 5 $2,000.000
US 380 Safety Ymp $1,000.000
Lakevlew ~ouleverd $ 250,000
FM 218~ S1 650 000
FM 1173 Extension , . $ SOO.000
FM 2499~tlon 4 .... $3,,500,000
Lekeview Boulevard $ 500 000
US 377 (Fl Worth Dr) $ 930,000
Loo0288 Extension $ 500,000
BrlnkerRoed . $ 600.000
H~ckory Creel( Road $1,500,000
The county has esbmated that they will contnbule approximately 15 mdhon dollars to these
prelects These funds w~ll be used in conjunction with TxDOT funds or local matches from our
ClP Drograms Hats off to the Mayor for h~e efforts on the committee as well ea his work with
Judge Mo$1ey anci Commissioner Hill We are exc4ted about all of'the poss~bd~tm8 and we took
forward,to working w~th the county
Deputy City Manager ~
A~nl
CMO/P~,cket 051~i County ~nd t~ue$ RS duc
9.
I0.
--
A RESOLUTION AMENDING RESOLUTION 98-065 BY ADOPTING AN AMENDMENT
TO THE ROADWAY COMPONENT OF THE DENTON MOBILITY PLAN FOR THE CITY
OF DENTON AFFECTING THE SOUTHWEST DENTON IH35W / US 377 AREA,
PROVIDEXTG A SAVINGS AND A REPEALING CLAUSE, AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the C~ty of Denton adopted resolution 98-065~ adopting the roadway
component of the Denton Mobility Plan to replace the 1988 Thoroughfare Plan on December 15,
1998, and
WHEREAS, City of Denton Engineering and Transportatmn Department recommends
that the roadway component of the Denton Mobility Plan should be amended for the Southwest
Denton IH35W/US 377 area, and
WHEREAS, on August 11, 1999, the Planning and Zoning Commission recommended
approval of the amendment, and
WHEREAS, the City Council, after a public heanng on August 17, 1999, finds that the
recommended amendment is m the best interests of the health, safety and general welfare of the
citizens of the C~ty of Denton, Texas, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
S~ECTION 1 That the City Council has reviewed the attached amendment to the Denton
Mobdlty Plan-Roadway Component, whmh illustrates the alignments and location of ex~stmg
and plamaed roadways w~thln the C~ty of Denton, Texas along the Southwest Denton IH35W
/377 area, and hereby adopts such amendment to the plan to be used as the gmdehne by the City
in planning, funding and constructing roadways w~thln the City of Denton, Texas
~ECTION 2 That all resolutions or parts of resolutions in force when the provlsmns of
ttus resolution became effectxve which are inconsistent or ~n conflict with the terms or provisions
contmned m fins resolution are hereby repealed to the extent of any such conflict only The non-
conflicting sections, sentences, paragraphs, and phrases shall remmn in full force and effect
SECTION 3. That a copy of tfus resolution shall be attached to Resolution 98-065
showmgithe amendment hereto approved
SECTION 4. That th~s resolution shall become effective immediately upon its passage
and approval
JAC~I'I~LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
Ordinance
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTiNG
THAT THE 76TH TEXAS LEGISLATURE STRONGLY CONSIDER AND INCLUDE
WITHIN ,ANY PROPOSED ELECTRIC RESTRUCTURING LEGISLATION THE POSITION
ON ELECTRIC UTILITY RESTRUCTURING EXPRESSED BY AND JOINTLY ADOPTED
BY THI~ FOUR TEXAS MUNICIPAL POWER AGENCY MEMBER CITIES, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the Texas Municipal Power Agency ("TMPA") is a joint powers agency
which was created pursuant to state law, Article 1435a, V A T C S, which became effective on
May 8, 1975 TMPA was formed shortly thereafter, in July 1975, by concurrent city ordinances
of its fotlr member cities, the Cities of Bryan, Denton, Garland, and Greenville, Texas (the
"Member Cities") The Member Cities h~ave been long-term public power allies, who have
faithfully and reliably served the electric power needs of several hundred thousand of their
citizens while operating w~thin and pursuant to the~foregoing state law, and
WHEREAS, the Member Cities recognize and fully expect that the 76th Texas
Legislature will address electric utility deregulation and restructuring, and are mutually and
collectively concerned about the sigmficant stranded costs that each Member City of TMPA will
suffer in be event that electric restructunng legislation is enacted into law, and
WHEREAS, the four Member Cities, as a unified group, desire to clearly communicate to
the Texas Legislature their position and their recommendations respecting specffic legislative
actions whtch would address their stranded costs issues, and in furtherance of their desire, have
met and formulated their position and recommendations in the form of a two page document
entitled "TMPA Cities Position on Electric Utlhty Restructuring", which is attached hereto as
Exhibit "A" Exhibit "A" expresses the legislative position which the four TMPA Member
Cities collectively concur on at this time, and
WHEREAS, The City Council believes that it is in the best interests of the City of
Denton to hereby communicate to the Texas Legislature at least a minimum level of stranded
cost relief recommendations common to all four TMPA Member C~tles, and further believes that
from time-to-time in the near future, Denton should, as an individual TMPA Member City with
unique electric deregulation and restructuring problems and concerns, reserve the right to request
such othe~r and further additional relief from the 76th Texas Legislature, which is approprmte to
Denton, considering its own individual mmumstances, NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I That the City Counml of the C~ty of Denton hereby respectfully requests
that the 76th Texas Legislature strongly consider and ~nclude w~thin any proposed electric
restructtmng legislation, the position of the four TMPA Member Cities, as expressed by, and as
manifested in the document entitled "TMPA Cities Position on Electric Utility Restructuring"
whmh is attached hereto as Exhibit "A", and which is incorporated herewith by reference
S]~CTION II That the City Council of the City of Denton further recognizes that the
City of D~nton has certain nnlque circumstances which it believes are important to communicate
to the 76th Texas Legislature, and by this resolution, states its intention, from time-to-time in the
near future, to request additional stranded cost or other related rehef from the Texas Legislature,
which is specifically related to its own individual circumstances
SECTION III That the Mayor or the City Manager are hereby authorized to deliver this
Resolution to Senator David Slbley, Chmrman of the Senate Interim Committee on Electric
Utility Restructuring, whose constituency also is comprised of a part of the City of Denton
SECTION IV That the Mayor or the City Manager are hereby further authorized to
deliver tins Resolution to the remmnmg Texas Legislative Delegation representing the City of
Denton, to w~t
Senator Tom Haywood
Senator Jane Nelson
Representative Ronny Crownover
Representative Mary Denny
Representative Burt R Solomons
SECTION V That this Resolution shall become effective immediately upon its passage
and approval
PASSED ANDAPPROVEDthlsthe /~"~ day of ~.~J~/L// ,1998
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By ~ Y/~~~
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
76th '1X Lcg~S TMPA Pos R~solut~on doc
Page 2
TMPA CITIES POSITION ON ELECTRIC UTILITY RESTRUCTURING
The C~tles of Bryan, Denton, Garland, and Greenville (the uClties")
recognize thai the 76th Legislature will most likely address electric utility
restructuring The Citrus are padlcularly concerned about the s~gn~hcant stranded
cosls that each City will su[fer as a result of the restructunng As a group, lhe
C~tms support the following recommendations as speclhc actions lo address their
slranded costs
1 The ability of the Cities to phase-m compebbon in their service
areas
2 Authority to ~ssue taxable or tax exempt bonds through an agency of
the state or lhrough the Cibes to rehnance bonds issued by
municipal joint action agencms of Ihe state
3 The ab~lily to secure the payments of the bonds for the stranded
costs amounts through a non-bypassable charge ~ncluded ~n Ihe
Cities' locally determined w~res charge
4 Once compebtion is phased-~n, the Clbes may Include lhe following
amounts of stranded costs in the C~bes' dlstrlbuhon costs as a non-
bypassable charge as determined by the Cities' respective
governing bodies to be spread over 16 years
· C~ty o1' Bryan - $163 m~lhon
· City o1' Denton - $141 million
· City of Garland - $301 million
· City o1' Greenwlle - $69 milhon
These amounts of slranded costs were determined by the Public
Utlhty Commission In its April 1998 repod to the Senate Inlerim
Commltlee on Eleclric Uhhty Restructuring concerning Potenbal
Strandable Investmenl (ECOM)
5 The non-bypassable stranded cost amounts would not be included
in Ihe generabon costs In rates set by the Clbes' governing bodms
In addition, the Cities support the following "TPPA's position on Electric Ubl~ly
Deregulation"
TPPA recognizes that major changes are underway ~n the eleclr~c ubl~ty industry
However, public power systems in Texas have specific concerns about proposals
for retail deregulabon
Consumer Choice and Equity'
· Eleclrlc consumers of all types and sizes are enttlled I.o fair choices and
equitable bone[ils from any restructuring of Ihe industry
,, TPPA shares the concerns of many part,es Ihat relall deregulabon could mean
unequal access to energy services and affordable electricity Large industrial
and commercial cuslomers wiIh markel power may receive Ihe greatest
benefits to the detriment of small residential and business customers
Reliability:
· Reliable eleclrlc service must be assured in any compehbve market
Municipal Financial Integrity'
· Proposals !o restruclure the electric ulillly industry must protect Ihe financial
integrity of munlc~palibes
· Investments made by munmipal electric ubhlies to serve exlsbng retail
customers musl be fully recovered
Market Issues
· A heallhy wholesale market for eleclr~city is ~mportant and allows all customers
Io benefit from compeblion Truly compebbve eleclrlc markets musl not be
dominated by a handl'ul o1' powerful compelltors
Local Control
· Public power systems are commun~ly-owned, locally conlrolled, and have a
proven record of Iow electric rates and quahty service
· Additional state regulation of public power is not necessary
Any deregulation or restructuring of the electric industry must address Ihe
concerns outlined above and must prowde protections for municipal ubl~ty
consumers and their clbes Those prol. ectlons are best provided by continuing the
successful system of local conlrol for municipal electnc ut~hbes
2
FILE REFERENCE FORM R98-067
Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
JR
Amended by Resolution No. R99-047 09/21/99
JR
Amended by Resolution No. R2000-065 12/19/00
JR
Amended by Resolution No. R2001-072 12/18/01
JR
Amended by Resolution No. R2002-055 12/10/02
JR
Amended by Resolution No. R2004-008 02/03/04
JR
Amended by Resolution No. R2005-008 02/22/05
JR
Amended by Resolution No. R2005-047 11/15/05
JR
Amended by Resolution No. R2006-043 12/19/06
JR
Amended by Resolution No. R2007-028 09/25/07
JR
Amended by Resolution No. R2008-009 03/04/08
JR
Amended by Resolution No. R2009-006 03/03/09
JR
Amended by Resolution No. R2009-028 11/03/09
NOTE Amended by Resolution No R99-047
Amended by Resolution No. R2000-065
Amended by Resolution No R2001-072
RESOLUTION NO Jjf
A RESOLUTION REVIEWING AND ADOPTING THE INVESTMENT POLICY FOR
FUNDS FOR THE CITY OF DENTON, DESIGNATING AN INVESTMENT OFFICER,
PROVIDING A SAVINGS AND A REPEALING CLAUSE, AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City Council passed Resolution No 96-061 on October 15, 1996, whtch
adopted an Investment Policy for Funds for the City, in compliance with the Public Funds
Investment Act, 74th Leg, ch 402, 1995 Tex Sess Law Serv 2958 (Vernon) (TEX GOV'T
CODE Ann Ch 2256), and
WHEREAS, by Resolution No 97-026, passed by the City Council on June 10, 1997, the
City's Investment Policy was amended, and
WHEREAS, by Resolution No 97-077, passed by the City Council on December 16,
1997, the City's Investment Policy was amended, and
WHEREAS, the City Council desires to review the Investment Policy for compliance to
the Public Funds Investment Act, TEX GOV'T CODE ch 2256, by the 75th Legislature, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION I. That the City Council has rewewed the attached City of Denton
Investment Pohcy, wluch contmns the investment policies and strategies and hereby adopts the
attached Investment Pohcy with no recommended changes to the pohcy from the one amended
on December 16, 1997
SECTION II That the Assistant City Manager of Finance is hereby designated as the
chief financml officer for the City and the Director of Fiscal Operations ~s hereby designated as
the C~ty's investment officer to perform the functions required ofher/h~m The financml officer
is hereby authorized to perform the fimct~ons required of her/h~m under the Investment Pohcy
and m accordance with TEX GOV'T CODE ch 2256
SECTION III. That all ordinances or parts of ordinances in force when the provisions of
this resolt~tlon became effective which are inconsistent or ~n conflict w~th the terms or provisions
contmned in this resolution are hereby repealed to the extent of any such conflict only The non-
conflicting sections, sentences, paragraphs, and phrases shall remain in full force and effect
SECTION IV. That save and except as amended hereby, all the provisions, sections,
subsections, paragraphs, sentences, clauses, and phrases of Resolution No 96-061, Resolution
No 97-026, and Resolution No 97-077, shall remmn m full force and effect
~ That th~s resolution shall become effective lmmedmtely upon ~ts passage
and approval
PASSED AND APPROVED tbas the _/____~day o f ~, 1998
JAC~LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
\\CH LGL\VOLl~shared\dept~LOL\Our Documents\Resolutions\98\lnvestment Pohcy Review doc
CITY OF DENTONPage1 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
SECTION FINANCE POLICIES REFERENCE NUMBER
408 04
INITIAL EFFECTIVE DATE
SUBJECT INVESTMENTS 02/17/87
LAST REVISION DATE
TITLE INVESTMENT POLICY 06/97
11/97
I PURPOSE
This policy shall provide the guidelines by which the City of Denton "Clty" will maintain the
mlmmum amount of cash m 1ts bank accounts to meet daily needs, and to prowde protection for its
pnnclpal and hqmchty while receiving the highest yield possible from ~nvestlng all temporary
excess cash Th~s policy serves to satisfy the statutory reqmrements of defining and adopting a
formal investment policy The policy and strategy shall be reviewed annually by the Investment
Comrmttee and City Council who will formally approve any modffiCatlons This investment
policy as approved, is m compliance with the provisions of the Public Funds Investment Act of
Tex Gov't Code Ann Chapter 2256, hereinafter referred to as the "Act", as amended and effective
September 1, 1997
II SCOPE
A This Investment Policy applies to the investment activities of the City of Denton, Texas,
mcludmg, without hmltat~on The specific funds cited hereafter in Section liB, shall be
excluded from this Investment Policy [All financial assets of all funds, includmg the
General Fund and any other accounts of the City not specifically excluded in these policy
guidelines are included These funds are accounted for m the City's Comprehensive Annual
Fmanmal Report (CAFR) ] These funds, as well as funds that may be created from tlme-to-
t~me, shall be administered in accordance with the provisions of these policies All funds
will be pooled for investment purposes The strategy developed for this pooled fund group
will address the varying needs, goals, and objectives of each fund
B This policy shall not govern funds, which are managed under separate investment programs
m accordance with Section 2256 004 of the Act Such funds currently include, Employees'
Retirement Fund of the City of Denton, the Flremen's and Pohcemen's pension Funds of the
City of Denton, other funds established by the City for deferred employee compensation,
revenue bond reserve funds, and certam private donations The City shall and will maintain
responsibthty for these funds to the extent required by Federal and State Law, the City
Charter, and donor sUpulations
III INVESTMENT OBJECTIVE & STRATEGY
It is the policy of the "City" that, giving due regard to the safety and risk of mvestment, all
avmlable funds shall be invested m conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy
In accordance vnth the Public Funds Investment Act, the following prioritized objectives (in order
of importance in accordance with Section 2256 005(d) of the Act), apply for each of the City's
mvestment strategies
Page 2 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
REFERENCE NLFMBER
TITLE INVESTMENT POLICY 408 04
A Suttabdtty - Understanding the suitability of the investment to the financial requirements of
the City Any investment ehgible m the Investment Policy is suitable for all City funds
B Safety - Preservatmn and safety of pnnclpal All investments will shall be of high quality
securities with no perceived default risk Market price fluctuations will however occur, by
managing the weighted average days to maturity for each fund type as specified
C Ltqutd~ty - To enable the City to meet operating requirements that might be reasonably
anticipated, the City's investment portfoho will remain sufficiently hquld Llqmdity shall be
achieved by matching investment maturities with forecasted cash flow requirements and by
investing in securities with active secondary markets Short-term investment pools and
money market mutual funds provide daily hquldlty and may be utilized as a compentave
yield alternative to fixed maturity investments
D Marketabdtty - Securities with active and efficient secondary markets are necessary in the
event of an unant~clpated cash requirement Historical market "spreads" between the bid
and offer prices of a particular security-type of less than a quarter of a percentage point shall
define an efficient secondary market
E Dtvers~ficatton - Investment maturtues shall be staggered throughout the budget cycle to
provide cash flow based on the anticipated needs of the City Dlverslf3ang the appropriate
maturity structure will reduce market cycle risk
F Y~eM- Attaining a competitive market yield for comparable security-types and portfolio
restnctaons are the desired object,ye The yield of an equally weighted, rolling six-month
treasury bill portfolio shall be the minimum yield objective or "benchmark" A secondary
objective will be to obtain a yield equal to or in excess of a local government investment
pool, money market mutual fund or average Federal Reserve discount rate
The first measure of success in this area will be the attainment of enough income to offset
Inflationary increases Even though steps wtll be taken to obtain this goal, the Cxty's staff
shall constantly be cognizant of the standard of care and the investment object, yes pursuant
to the prowsluns of the amended Act, Section 2256 006(a)
The Director of Fiscal Operations shall avoid any transactions that might ~mpa~r public
confidence m the City's ability to govern effectively The governing body recognizes that in
dlvers~fymg the portfoho, occasional measured losses due to market volalahty are inevitable,
and must be considered w~thm the context of the overall portfoho's investment return,
provided that adequate d~versiflcatlon has been ;mplemented The prudence of the
investment decision shall be measured in accordance with the tests set forth in Section
2256 006(b) of the Act
IV INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS
Each major fund type has varying cash flow requirements and liquidity needs Therefore specific
strategies shall be implemented consldenng the fund's unique requirements and the followmg shall
be considered separate investment strategies for each of the funds men~oned below The C~ty's
funds shall be analyzed and invested according to the following major fund types
Page 3 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
REFERENCE NUMBER
TITLE INVESTMENT POLICY 408 04
A Operating Funds - Investment strategies for operating funds and commingled pools
containing operating funds have as their primary objective to assure that anhe~pated cash
flows are matched with adequate investment liquidity The secondary objeetlve is to
structure a portfolio, which will minimize volatility during economic cycles This may be
accomphshed by purchasing high quality, short-term securities, which will comphment each
other in a laddered maturity structure A dollar weighted average maturity of 365 days or
less will be maintained and calculated by using the stated final maturity date of each
B Debt Service Funds - Investment strategies for debt service funds shall have as the primary
object,ye the assurance of investment hqmd~ty adequate to cover the debt service obhgatlon
on the required payment date Securities purchased shall not have a stated final maturity
date, which exceeds the debt serwee payment date A dollar weighted average maturity of
550 days or less will be maintained and calculated by usmg the stated final maturity date of
each security
C Debt Service Reserve Funds - Investment strategies for debt service reserve emergency and
contingency funds shall have as the primary object, ye the abdlty to generate a dependable
revenue stream to the appropriate fund from securities with a low degree of volatility
Securities should be of high quality and, except as may be required by the bond ordinance
speelfic to an individual issue, of short to lntermedmte-term maturities w~th stated final
maturities not exceeding five (5) years Volatility shall be further controlled through the
purchase of securities carrying the highest coupon available, within the desired maturity and
quality range, without paying a premium, if at all possible Such securities will tend to hold
their value dunng economic cycles
D Construction and Special Purpose Funds - Investment strategies for construction projects or
special purpose fund portfolios will have as their primary objective to assure that anticipated
cash flows are matched with adequate investment liquidity These portfohos should include
at least 10% in h~ghly liquid securities to allow for flex~bfllty and unanticipated project
outlays The stated final maturity dates of securities held should not exceed the estimated
project completion date A dollar weighted average maturity of 365 days or less will be
maintained and calculated by using the stated final maturity of each security
E Market prices for all public fund investments will be obtained and monitored through the use
of Interactive Data Inc, an on-lme data service or a s~mflar quahfied successor agency
V INVESTMENT COMMITTEE
Members - There is hereby created an Investment Committee eonsls~lng of the C~ty Manager,
Assistant City Manager of Finance, Director of Fiscal Operations, Mayor, and one member of the
City Council
Scope - The Investment Committee shall meet at least quarterly to determine general sU'ategles and
to monitor results Included in its deliberations will be such top~cs as economic outlook, portfolio
d~vcrslficaUon, maturity structure, potenUal risk to the C~ty's funds, authorized brokers and dealers,
and the target rate of return on the ~nvestment portfoho
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Procedures - The Investment Committee shall prowde for minutes of ~ts meetings Any two
members of the Investment Committee may request a spemal meetmg, and four members shall
constitute a quorum The Investment Committee shall estabhsh its own rules of procedures
VI RESPONSIBILITY AND STANDARD OF CARE
A Delegation & Training - The management respons~bthty for the Investment program is
hereby delegated to the Assistant CIW Manager of Finance, who shall establish wmten
procedures for the operatmn of thc investment program, consistent w~th this ~nvestment
policy Such procedures shall include explicit delcgatmn of authority to the individual(s)
responsible for investment transactmns The primary individual who shall be mvolved m
investment actlwtles will be the Director of F~scal Operations Thc Treasury Analyst will
have a support role The Assistant City Manager of Finance and Director of F~scal
Operations are designated as investment officers, pursuant to seetlnn 2256 005 subsection f
of the Act Accordingly, the ~nvestment officers, who shall be the chief financial officer and
the investment officer of the City for the purposes of Section 2256 008 of the Act, shall
attend at least one training session relating to their responsibility under the Act within 12
months after assuming duties These sessions and additional investment trmmng sessions
must be completed no less often than once every two fiscal years commencing September 1,
1997 and these financial officers shall receive not less than 10 hours of instruction relating to
investment responslblhtles The training must ~nclude education ~n investment controls,
security risks, strategy risks, market risks, and compliance with the Public Funds Investment
Act The investment training session shall be prowded by an independent source approved
by the investment committee For purposes of th~s pobcy, an "independent source" from
which investment trmmng shall be obtained shall include a professional organization, an
~nstltute of h~gher learning or any other sponsor other than a Business Organization w~th
whom the City of Denton may engage m an mvestment transaction Thus, these ~ndependent
sources will be training sessions sponsored by Government Treasurers Organlzataon of
Texas (GTOT), Umvers~ty of North Texas (UNT), Government Finance Officers
Association of Texas (GFOAT) No persons may engage ~n investment transactions except
as provided under the terms of this policy and the procedures established by the Assistant
City Manager of Finance The Assistant City Manager of Finance shall be responsible for
all transactions undertaken, and shall establish a system of control to regulate the acttwtles
of the Director of Fiscal Operations The controls shall ~nclude a quarterly process of
Independent review by an lnd~wdual or firm designated by the Assistant City Manager of
Finance, and an annual rewew by an external auditor The rewews wall prowde internal
control by assunng compliance with pohmes and procedures The Assistant C~ty Manager
of Finance, Director of Fiscal Operations, Mayor, City Council, City Manager and other
Finance employees shall be personally indemnified ~n the event of investment loss prowded
the Investment Policies and Gmdelmes are followed
B Conflicts of Interest - All participants m the investment process shall seek to act responsibly
as custodians of public assets Officers and employees revolved in the mvestmant process
shall refrain from personal business activity that could conflict w~th proper execution of the
investment program, or which could lmpmr their ablhty to make ~mparttal ~nvestment
decisions
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C Disclosure - Anyone involved in mvest~ng City funds shall file with the Assistant City
Manager of Fmanee and the Investment Committee a statement disclosing any personal
business relaUonshlp and any material financial interest in a business organization that
handle C~ty of Denton investments An investment officer has a personal busmess
relationship with a business organization If
I The investment officer owns 10% or more of the voting stock or shares of the
business orgamzattun or owns $5,000 or more of the fair market value of the business
organization,
2 Funds received by the investment officer from the business organization exceed 10%
of the investment officers gross income for the prior year, or
3 The investment officer has acquired from the business organxzatmn during the prior
year investments with a book value of $2,500 or more for the personal account of the
investment officer
Any investment officer who ~s related within the second degree by affinity or consanguinity
as determined under the Tex Gov't Code Ann Ch 573 to an tndwtdual seehng to sell an
investment to the City shall file a statement disclosing that relationship with the City Council
and the Texas Ethics Commission
D Prudence - The standard of prudence to be used by the investment officials shall be the
"Prudent Person Rule", as set forth in Tex Gov't Code Ann Sec 2256 006 and *all be
applied in the context of managing an overall portfolio "Investments shall be made wxth
judgement and care under circumstances then prevmlmg - which persons of prudence,
discretion and intelligence exercise m the management of their own affairs, not for
speculation, but for investment, consldenng the probable safety of their capital as well as the
probable income to be derived"
Investment officials acting m accordance with written procedures and the investment policy
and exercising due diligence shall be relieved of personal responsibilities for an ~ndtwdual
security's credit risk or market price change, provided devmtlons from expectations are
reported In a timely fashion and appropriate action is taken to control adverse developments
E Reporting
Monthly - The Director of Fiscal Operations shall submit monthly an investment report, to
the Investment Committee, that summarizes recent market conditions, economic
developments and anticipated investment conditions The report shall summarize the
investment strategies employed, describe the portfolio in terms of investment securities,
matuntaes, risk characteristics and other features The report shall include total investment
return to date and compare the return with budgetary expectations or projections
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~uarterly - The Director of F~scal Operations shall prepare and present to the Investment
Committee and C~ty Counexl a written report on the City's investment transaetmns for the
preceding reporting period The report shall 1) describe m detail the investment pos~t~on of
the C~ty as of the end of the repo~ng period, 2) prepared jointly by all Investment officers,
3) s~gned by each ~nvestment officer, 4) contain a summary statelnent of each pooled fund
Including a) beginning 1narket value for the reporting period, b) additions and changes to thc
1narket value during the period, c) ending 1narket value for the period, and d) fully accrued
~ntercst for the repomng period The summary statement for each fund group must be
prepared 1n colnphanec w~th Generally Accepted Aceountmg Pnnc~ples (GAAP) 5) State
the book value and market value of each separately ~nvested asset at the beginning and end
of the reporting period by type of asset and fund type Invested, 6) state the 1natunty date of
each separately ~nvested asset that has a 1natunty date, 7) state the account or fund or pooled
group fund for which each ~nd~wdual Investment was acqmred, and 8) state the comphance
of the ~nvestment portfoho of the C~ty as it relates to thc Investment strategy of the C~ty and
w~th relevant provasaons of the Tex Gov't Code ch 2256
Annually - W~tban s~xty (60) days of the end of the F~seal Year, thc D~rector of F~scal
Operations shall present a colnprehcns~ve annual report to thc City Council on the
~nvestment prograln and mvestmant act~wty The annual report shall prowde a separate
quarterly colnpanson of returns and suggestions for ~1nprovemcnts that 1n~ght be made m the
Investment prograln The C~ty Council shall rewew and approve the investment pohcy and
investment strategies at least annually and be doculnanted by role, order, ordinance or
resolution which shall Include any changes made
Comphance Audlt - The C~ty's external, independent auditor w~ll conduct an annual rewew
of the quarterly reports ~n eonjunctmn w~th the annual financial audit Thc results of thc
audit will be reported to Caty Council upon receapt
The andat w~l] rewew comphance w~th 1nanagcment control on investments and adherence to
th~s pohcy
F Thc gmdcllnes of retaining records for seven years as recommanded m thc Texas State
L~brary Municipal Record~ Manual should be followed The D~rector of Fascal Operations
shall oversee the fihng and/or stonng of Investment records
VII SUITABLE AND AUTHORIZED INVESTMENT SECURITIES
A Active Portfolw Management - The C~ty intends to pursue an active versus a pass~ve
1nvestlnent management philosophy That is, securities may be sold before they mature
market eontht~ons present an opportulnty for the C~ty to benefit from the trade (Subsectmn
E)
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B ~luthonzed Investments (Per HB 2459 and Sections 2256 009 through 2256 017 of the Ac0 -
Assets of funds of the government of the City of Denton may be Invested in
1 Obligations of the United States of America, its agencies and mstrumantahty's
(matunng in less than five (5) years, which have a liquid market w~th a readily
determinable market value,
2 Investment - grade, direct obligations of the State of Texas (maturing in less than two
(2) years),
3 Obligations of the States, agencies thereof, Counties, Crees, and other polmeal
subdivisions of any state having been rated as investment quality by a nationally
reeogmzed investment rating firm, and having received a rating of not less than "AA"
or ~ts equivalent (matanng m less than two (2) years),
4 Fully insured or eollateralized Certificates of Deposit's issued by state and national
banks or savings bank or a state or federal credit union, domiciled m Texas,
guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or
the National Credit Union Share Insurance Fund or its successor, secured by
obligations described m 1 through 3 above, and that have a market value of not less
than the pnnelpal amount of the ce~fieates but excluding those mortgage backed
securities as described in the Tex Gov't Code Sec 2256 009(b) (matunng in less
than one (1) year),
5 Fully collatenzed direct repurchase agreements (whose underlying purchased
securities consist of the foregoing) with a defined termination date secured by
obligations of the United States or its agencies and lnstmmentabty's pledged w~th a
third party, selected and approved by the City through ~ts D~rector of Fiscal
Operations, other than an agency for the pledgor and deposited at the t~me the
investment is made w~th the City Repurchase agreements must be purchased through
a primary government securities dealer, as defined by the Federal Reserve, or a bank
domiciled in Texas Each issuer of repurchase agreements must sign a copy of the
City's Master Repurchase Agreement (termination date must be 30 days or less),
6 Commercial paper that has a stated maturity of 270 days or less from the date of
issuance and is rated A-1 or P-1 or an eqmvalent rating by at least two nationally,
recognized raturg agencies
7 a Public Fund Investment Pools with a weighted average maturity of 90 days or
less The pool must be approved (by resolution) by the City Council to provide
services to the City The pool must be contmuously rated no lower than AAA
or AAA-m or at an equivalent rating by at least one nationally recognized rating
serwce A pubhe funds investment pool created to funeUon as a money market
mutual fund must mark to market daily and, stabibze at a $1 net asset value
b To be eligible to receive funds from and revest funds on behalf of an entity
under this chapter, an investment pool must furnish to the investment officer or
other authorized representative of the entity an offenng circular or other similar
disclosure instrument that contains, at a minimum, the following information
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(1) the types of mvestments m whmh money is allowed to be invested,
(2) the maximum average dollar-we,ghted maturity allowed, based on the
stated maturity date, of the pool,
(3) the maximum stated maturity date any investment security w~thln the
porffoho has,
(4) the objectives of the pool,
(5) theslzeofthepool,
(6) the names of the members of the advisory board of the pool and the dates
their terms expire,
(7) the custothan bank that will safekeep the pool's assets,
(8) whether the intent of the pool ~s to maintain a net asset value of one
dollar and the risk of market price fluctuation,
(9) whether the only source of payment ~s the assets of the pool at market
value or whether there ~s a secondary source of payment, such as
insurance or guarantees, and a descnptton of the secondary source of
payment,
(10) the name and address of the ~ndependent auditor of the pool,
(11) the reqmrements to be satisfied for an entity to deposit funds ~n and
withdraw funds from the pool and any deadlines or other operating
pohcles required for the entity to ~nvest funds in and w~thdraw funds
from the pool, and
(12) the performance h~story of the pool, including yield, average dollar-
welghtad matuntaes, and expense ratios
c To maintain ehg~blhty to receive funds from and invest funds on behalf of an
enttty under flus chapter, an investment pool must fummh to the mvestment
officer or other anthonzed representative of the entity
(1) investment transaction confirmattons, and
(2) a monthly report that contmns, at a m~mmum, the following information
(A) the types and percentage breakdown of securities m which the
pool is invested,
(B) the current average dollar-weighted maturity, based on the stated
maturities of the pool,
(C) the current percentage of the pool's portfoho ~n investments that
have stated maturities of more than one year,
(D) the book value versus the market value of the pool's portfoho,
using amomzed cost valuauon,
(E) the size of the pool,
(F) the number of pamclpants ~n the pool,
(G) the custodian bank that ~s safekeeping the assets of the pool,
(H) a hst~ng of dmly transaction acttwty of the entity participating in
the pool,
(I) the y~eld and expense rahon of the pool,
(J) the portfolio managers of the pool, and
(K) any changes or addenda to the offenng circular
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8 An SEC-registered, no load money market mutual fund which has a dollar weighted
average stated maturity of 90 days or less whose assets consist exclusively of the
assets described m section B 1 and whose investment objectives includes the
mmntenance of a stable net asset value of $1 for each share Furthermore, it proxades
the City with a prospectus and other information required by the SEC Act of 1934 or
the Investment Advisor Act of 1940 and which provides the City with a prospectus
and other information required by the Securities Exchange Act of 1934 (15 USC
Section 78a et Seq ) or the Investment Company Act of 1990 (15 USC Section 80a-1
et Seq )
9 Other such securities or obligations which are authorized by the Act as approved by
City Council upon recommendation of the Investment Committee
C Prohtbtted Investments - The City's authorized investment options are more restrictive than
those allowed by State law Furthermore, this policy specifically prohibits investment in the
following investment secunttes
1 Obhgat~ons whose payment represents the coupon payments on the outstanding
pnnmpal balance of the underlying mortgage-backed security collateral and pays no
pnnmpal
2 Obligations whose payment represents the pnnclpal stream of cash flow from the
underlying mortgage-backed security collateral and bears no interest
3 Collaterahzed mortgage obhgattons that have a stated final maturity date of greater
than 10 years
4 Collaterahzed mortgage obligations the interest rate of which is determined by an
index that adjusts opposite to the changes in a market index
D D~verstficatton - It is the policy of the City to diversify its mvestment portfolios The
diversification will protect interest income from the volatility of interest rates and the
avoidance of undue concentration of assets in a specific maturity sector, therefore, portfolio
maturities shall be staggered Securities shall also be selected and revised periodmally by
the Investment Committee In estabhshmg specific diversfficaUon strategies, the two (2)
following general policies and constraints shall apply
1 Pusk of market price volatility shall be controlled through maturity diversification and
by controlling unacceptable maturity extensions and a mismatch of liabilities and
assets The maturity extension will be controlled by limiting the weighted average
maturity of the entire portfolio to 550 days All long-term maturities will be intended
to cover long-term liabilities In addition, five (5%) percent of the funds in the
portfolio will be hqmd at all t~mes
2 The Investment Committee shall establish strategies and guidelines for the pementage
of the total portfolio that may be mvested m U S Treasury Securities, federal agency
instrumentalities, repurchase agreements, and lnsured/collaterhzed certificates of
deposit and other securities or obligations The Investment Committee shall conduct a
quarterly review of these gmdehnes, and shall evaluate the probability of market and
default risk m various investment sectors as part of its considerations
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3 Risk of pnnclpal loss m the portfolio as a whole shall be minimized by diversifying
investment types according to the following limitations
Investment True % of Portfolio
· U S Treasury Notes/Bills 100%
· U S Agencies & Instmmentahties 100%
· State of Texas Obligations & Agencies 15%
· Local Government Investment Pools 50%
· Local Government Obhgations (AA) 10%
· Repurchase Agreements 25%
· Certificates of Deposit 100%
· U S Government Money Market Funds 50%
By Institution
Repurchase Agreements No more than 10%
All Other No more than 40%
Investment Pools No more than $10,000,000
E Security swaps may be considered as an investment option for the City A swap out of one
instrument into another is acceptable to increase yield, realign for disbursement dates,
extend or shorten maturity dates and improve market sector diversification Swaps may be
m~tmted by brokers/dealers who are on the City's approved list A horizon analysis is
reqmred for each swap prowng benefit to the City before the trade decision is made, which
will accompany the investment file for record keeping
F All investments (governments or bank C D 's) will be solicited on a competitive bas~s with
at least three (3) institutions The Investment Committee can approve exceptions on a case
by case bas~s or on a general basis in the form of guidehnes These gmdehnes shall take into
consideration the ~nvestmant type maturity date, amount, and potential disruptiveness to the
City's investment strategy The ~nvestment will be made with the broker/dealer offenng the
best yield/quality to the C~ty
The quotes may be accepted orally, in wrmng, electromcally, or any combination of those
methods
G Arbitrage - Due to the bond issuance sizes of which the City incurs on a regular basis,
arbitrage should be addressed
The Tax Reform Act of 1986 provided limitations restricting the City's investing of tax-
exempt General Obligation Bond proceeds and debt service income New arbitrage rebate
provisions require that the City compute earnings on investment from each issue of bonds on
an annual bas~s to determane if a rebate is required To detenmne the City's arbitrage
position, the City ~s reqarred to perform spemfic calculations relative to the actual yield
earned on the investment of the funds and the yield that could have been earned if the funds
had been invested at a rate equal to the yield on the bonds sold by the City The rebate
provision states that penodmally (not less than once every five years, and not later than sixty
days after maturity of the bonds), the City xs required to pay the U S Treasury a rebate of
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excess earnings based on the City being m a positive arbitrage position The Tax Reform
restnetaons reqmre extreme precision in the monitoring and recording facets of investments
as a whole, and particularly as relates to yields and computations so as to insure compliance
Failure to comply can dictate that the bonds become taxable, retroactively from the date of
issuance
The City's investment position relative to the new arbitrage restncUons is the continued
pursuit of maximizing y~eld on applicable investments while lnsunng the safety of capital
and liquidity It Is a fiscally sound position to continue maximization of yield and rebate
excess earnings, if necessary
VIII SELECTION OF BANKS AND DEALERS
A Depository - City Council shall, by ordinance, "select and designate one or more banking
restitutions as the depository for the monies and funds of the City" m accordance with the
reqmrement of Tex Loc Oov't Code ch 105 The bank shall be selected primarily on
"solvency and stability" and secondly, on rate of interest available
The Director of Fiscal Operataons shall conduct a comprehensive review of prospective
depositories credit charactenst~cs and financial history
The bank shall be selected through a formalized b~ddmg process m response to the City's
request for proposal (RFP) outlining all services required The Investment Committee shall
have the discretion to determine the t~me span for rebiddmg the banking services contract,
however, a two year period will be the minimum length of time between bidding with a 5
year maximum period
Banks and savings and loans associations seeking to establish ehg~bthty for the City's
competitive certificate of deposit purchase program, shall submit financial statements,
evidence of Federal insurance and other information as required by the Director of Fiscal
Operations
B Investment Brokers/Dealers - The Investment Committee shall be responsible for adopting
the hst of brokers and dealers of government securities Their selection shall be among only
primary government securities dealers that report directly to the New York Federal Reserve
Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are
adequately financed to conduct public business The Investment Committee shall base its
evaluation of security dealers and financial lnst~tutions upon
1 Financial conditions, strength and capability to fulfill commitments,
2 Overall reputation with other dealers or investors,
3 Regulatory status of the dealer,
4 Background and expertise of the individual representatives
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The Director of Fiscal Operations shall conduct business with securities dealers approved by
the Investment Committee or with banks selected as outhned in VIII Furthermore, the
committee must annually review this list of quahfied brokers authorized to engage m
investment transactions w~th the City Investment Officers shall not conduct business with
any firm with whom public entities have sustained losses on investments or whose name the
Investment Committee has removed from an approved list
C Comphance - A qualified representative from any firm offenng to engage ~n ~nvestment
transactions with the City is required to sign a written instrument This certifies that they
have received and reviewed a written copy of the City's Investment Policy The firm must
acknowledge that it has implemented reasonable procedures and controls m an effort to
preclude investments between the City and the firm that are not authorized by the City's
investment policy Approved brokers and dealers must complete Exhibit A and return it to
the Director of Fiscal Operations The City's investment officer(s) may not transact
business from a person who has not delivered the required written ~nstmment to the City
D Diversification - To guard against default posslbtht~es under these con&tions, and to assure
diversification of b~dders, business with any one issuer, or investment broker, should be
hmlted to (40%) percent of the total portfolio at any point in t~me In th~s way, bankruptcy,
receivership or legal action would not lmmobdize the C~ty's abdlty to meet payroll or other
expenses
IX PRINCIPAL PROTECTION AND SAFEKEEPING
A All banks' and savings and loan associations' deposits and investments of C~ty funds shall
be secured by pledged collateral w~th a market value equal to no less than 102 percent of the
pnnmpal plus accrued interest less an amount insured by FDIC or FSLIC Evidence of
proper collaterahzatlon in the form of original safekeepmg receipts held in institution's trust
department or at a third party institution not affiliated with the bank or bank holding
company will be maintained m the office of the Director of Fiscal Operations all time The
Assistant City Manager of Finance, Director of Fiscal Operations or other authorized City
Representative will approve and release all pledged collateral Collateral wdl be reviewed
monthly to assure the market value of the securmes pledged exceeds investments and/or the
related bank balances The Committee shall request addmonal collateral in the event they
deem that their deposits and investments are not sufficiently protected by the pledged
collateral
B Safekeeping procedures shall be established by the Investment Committee which clearly
define steps for gmmng access to the Collateral should the City determine that the City's
funds are in jeopardy Collateral safekeeping and substitution agreements wall be a part of
the procedure
C Collateral Defined - The City of Denton shall accept only the following securities as
collateral
1 FDIC and FSLIC insurance coverage
2 United States Treasuries & Agencies
3 Other securities as approved by the Investment Committee
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D Dehvery vs Payment - All transactions will be executed with authorized security dealers
and finanmal institutions on a dehvery-versus-payment (DVP) bas~s That ~s, funds shall not
be w~red or paid untd venfieatlon has been made that the Trustee received the collateral
The collateral shall be held m the name of the C~ty or held on behalf of the C~ty The
Trustee's records shall assure the notation of the C~ty's ownership of or exphmt claim on the
securities The original copy of all safekeeping receipts shall be dehvered to the City
Securities will be held by the C~ty's safekeeping agent, which shall be selected through a
competatave process (RFP) or that agent's representative m New York C~ty, or m ~t's account
at the Federal Reserve Bank
E SubJect to Audit - All collateral shall be subject to ~nspectlon and audit by the Director of
F~scal Operations, or designee, as well as, the C~ty's ~ndependent auditors
X MANAGEMENT AND INTERNAL CONTROLS
The D~rector of Fiscal Operations, or designee, shall estabhsh a system of internal controls, whmh
shall be rewewed by an ~ndependent auditor Thc controls shall be designed to prevent losses of
pubhc funds arising from fraud, employee error, and misrepresentation by third pa~cs,
unantm~pated changes m financial markets, or imprudent actions by employees or Investment
Officers of the C~ty
Controls and managerial emphasis deemed most important that shall be employed include the
following
Imneratlve Controls.
Custodmn safekeeping receipts records management
Avoidance of bearer-form securities
Documentatmn of investment b~ddmg events
Written confirmatmn of telephone transactmns
Reconcflement's and comparisons of security receipts with the investment subsidiary
records
Compliance with investment pohmes
Venficatton of all interest income and security purchase and sell computations
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Coptrols Where Practical.
Control of Collusion
Separation of duties
Separataon of transaction authority from Accounting and Record-keeping
Clear delegation of authority
Accurate and t~mely reports
Validation of investment maturity demslons w~th suppomng cash flow data
Adequate training and development of Investment Officials
Rewew of financial conch'nons of all brokers, dealers, and depository ~nstlmttons
Staying reformed about market conditions, changes and trends that reqmre
adjustments in ~nvestment strategies