HomeMy WebLinkAboutDecember 11, 2001 Agenda CITY OF DENTON CITY COUNCIL ~)ate_., /~
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December 11,2001
After determining that a quorum is present, the City Council will convene in a Special Called
Session of the City of Denton City Council on Tuesday, December 11,2001 at 6 00 p m in the
Council Work Session Room in City Hall, 215 E McKlnney Street, Denton, Texas at whmh the
following items will be considered
1 Consider adoption of an ordinance of the City of Denton, Texas authorizing the Mayor to
execute a mutual release of all clmms in litigation styled Mumc~pal Admtmstrat~ve
Services, Inc v C~ty of Denton, Cause No 99-50263-367
Following the completion of the Special Called Session, the Council will convene into a Work
Session at which the following items wall be considered
NOTE A Work Session is used to explore matters of interest to one or more City Council
Members or the City Manager for the purpose of giving staff dlrectmn into whether or not such
matters should be placed on a future regular or special meeting of the Council for citizen input,
City Council deliberation and formal City action At a Work Session, the City Council generally
receives informal and preliminary reports and information from City staff, officials, members of
City committees, and the individual or organization proposing council action, if invited by City
Council or City Manager to participate in the session Part~c~pauon by lndtwduals and members
of orgamzatlons invited to speak ceases when the Mayor announces the session is being closed to
public input Although Work Sessions are public meetings, and citizens have a legal right to
attend, they are not public hearings, so citizens are not allowed to participate in the session
unless invited to do so by the Mayor Any citizen may supply to the City Council, prior to the
beginning of the session, a written report regarding the citizen's opinion on the matter being
explored Should the Council direct the matter be placed on a regular meeting agenda, the staff
will generally prepare a final report defining the proposed action, which wdl be made avmlable
to all citizens prior to the regular meeting at which citizen input ~s sought The purpose of th~s
procedure is to allow citizens attending the regular meeting the opportunity to hear the views of
their fellow citizens without having to attend two meetings
1 Receive a report, hold a discussion, and give staff direction regarding a comprehensive
management study
2 Receive a report, hold discussion, and give staff direction concerning the development of
pmrata fee charges for the installation of wastewater collection infrastructure for City of
Kmm and the Vintage Development
3 Receive a report, and hold a discussion regarding the City of Denton cable television
franchise renewal with Charter Communications
4 Official Action on Closed Meeting Item(s) under Sections 551 071-551 086 of the Texas
Open Meetings Act
5 New Business
This item provides a section for Council Members to request information or suggest
~tems for future agendas
Cay of D~nton City Council Agenda
December 11, 2001
Page 2
CERTIFICATE
I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the
City of Denton, Texas, on the day of , 2001 at o'clock
(am)(pm)
CITY SECRETARY
NOTE THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT THE CITY WILL PROVIDE SIGN
LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN
ADVANCE OF THE SCHEDULED MEETING PLEASE CALL THE C1TY SECRETARY'SOFFICE AT 349-8309
OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO
THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S
OFFICE
DEPARTMENT Legal Department
CM/DCM/ACM Jerry E Drake, Jr, Senior Assistant City Attorney/Litigation Chief
SUB.IIgCT; AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE
MAYOR TO EXECUTE A MUTUAL RELEASE OF ALL CLAIMS IN LITIGATION
STYLED MUNICIPAL ADMINISTRATIVE SERVICES, INC V CITY OF DENTON, CAUSE
NO 99-50263-367
BACKGROUND: On 1999, Mume~pal AdmunstraUve Services, Inc ("MAS") filed stat agamst
the City of Denton m an attempt to collect what ~t felt was ~ts pomon of the settlement the City
received m the GTE litigation In April 2000, MAS received a jury verdict of $251,272 The
City appealed the judgment In September 2001, the Court of Appeals reversed the judgment
The City's Motion for Rehearing was denied, and the C~ty and MAS entered Into settlement
negotiations
OPTIONS: Execute the Mutual Release of All Clmms or try to pursue collection against MAS
on the remanded judgment
RECOMMENDATION: The Legal Department recommends that the C~ty Council authorize
the Mayor to execute the Mutual Release of All Claims for reasons previously addressed m
closed session
PRIOR ACTION/REVIEW (Council. Boards. Commissions): Thxs matter was presented to
the Council in executive session m September and October 2001
FISCAL ]NFORMATION: None
ORDINANCE NO
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO
EXECUTE A MUTUAL RELEASE OF ALL CLAIMS 1N LITIGATION STYLED
MUNICIPAL ADMINISTRATIVE SERVICES INC g CITY OF DENTON, CAUSE NO 99-
50263-367, AND PROVIDING AN EFFECTIVE DATE
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the C~ty Cotmcfl hereby approves the Mutual Release of All Claims ~n
ht~gat~on styled Mumctpal Adm~ntstrat~ve Servtces, Inc v City of Denton, Cause No 99-50263-
367, a copy of which ~s attached hereto and tncorporated by reference hereto, and the Mayor, or
m her absence the Mayor Pro Tern, ~s hereby authorized to execute smd Release on behalf of the
CW
SECTION 2 That th~s ordinance shall become effective tmmed~ately upon ~ts passage
and approval
PASSED AND APPROVED thzs the day of ., 2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERB~D~ORNEY
CAUSE NO 99-50263-367
MUNICIPAL ADMINISTRATIVE § IN THE DISTRICT COURT
SERVICES, INC §
VS § OF DENTON COUNTY, TEXAS
CITY OF DENTON § 367TM DISTRICT COURT
MUTUAL RELEASE OF ALL CLAIMS
It is hereby agreed between Plaintiff in the above-styled and numbered cause, Municipal
Administrative Services, Inc (MAS), acting by and through its duly authonzed representative,
and Defendant, City of Denton (Denton), acting by and through its duly authonzed
representative, as follows
1 In or about t987 MAS and Denton entered into a contract for MAS to perform a
franchise compliance audit to determine whether General Telephone Company was complying
with the terms of its franchise agreement with Denton In 1999 MAS brought suit against the
City of Denton based upon clmms arising out of said contract and work performed by MAS for
the City of Denton The City of Denton counterclmmed for payment of money paid by Denton
to MAS m connection with smd contract Reference is made to the pleadings and papers on file
tn this suit for a more complete descnptlon of the events
2 The above-styled case was tried and a judgment was rendered The Court of
Appeals reversed and remanded said judgment MAS and Denton have determined that neither
wishes to pursue their respective claims further in this matter
3 Denton hereby fully releases, discharges, and acquits MAS from all actions,
clatms, and demands, including, but not limited to, claims for money prod, breach of any express
or ~mphed contract, quantum mermt, illegality, voldness of contract, lost profits, attorneys' fees,
court costs, pre- and post-judgment interest, and all other claims, causes of action, and damages,
MUTUAL RELEASE OF ALL CLAIMS PAGE 1
AUSL[BI\EFFq44154 01(144154_1 IX)C)
whether known or unknown and whether heretofore asserted or not, owned er possessed by
Denton against MAS growing out of or ~n any way connected with the contract, or work
performed by MAS for Denton, or any event or agreement which occurred prior to the date of
this release
4 MAS hereby fully releases, d~scharges, and acqmts Denton from all actions,
clmms, and demands, including, but not limited to, clmms for money prod, breach of any express
or ~mphed contract, quantum mermt, illegality, vo~dness of contract, lost profits, attorneys' fees,
court costs, pre- and post-judgment interest, and all other claims, causes of action, and damages,
whether known or unknown and whether heretofore asserted or not, owned or possessed by MAS
agmnst Denton growing out of or ~n any way connected w~th the contract, or work performed by
MAS for Denton, or any event or agreement whmh occurred pnor to the date of this release
5 MAS and Denton hereby represent and warrant to each ether that no promises,
representations, or agreements not set out here~n have been made to each other, and that th~s
Mutual Release of All Clmms ~s executed without rehance upon any statement or representation
of any person or part~es released or their representatives, concerning the nature and extent of any
damages and/or legal habthty therefor, that acceptance of this Mutual Release ~s a full accord
and satlsfactmn of d~sputed clmms
6 It ~s further agreed that the above-styled stat wall be d~sm~ssed w~th prejudice to
refihng the same, and that costs of court w~ll be taxed to the party mcurnng the same
7 Th~s Mutual Release of All Clmms is a contract which ~s the product of
negotlatmns between the part~es and attorneys for the parties and which shall, ~n the event of any
d~spute over ~ts meamng or apphcatmn, be interpreted fmrly and reasonably, and neither more
MUTUAL RELEASE OF ALL CLAIMS PAGE 2
AUSLIBIIEFFX144154 01(144154_1 DOC)
strongly for or against either party This document contains the entire agreement of the parties
hereto
THE PROVISIONS OF THIS MUTUAL RELEASE OF ALL CLAIMS ARE
CONTRACTUAL AND NOT MERE RECITALS
WITNESS OUR HANDS this 7~Q day of ~D~.-~Xb~-~L~ ,2001
President, Municipal Administrative
Services, Inc
./S ec~et ary ,// ..~ u
STATE OF TEXAS §
COUNTY OF ~b~'f ~ §
This instrument was acknowledged before me on the ~ day of ~J%m'Dlf .,
2001, by George T White, President of Municipal Administrative Services, Inc, a
(state of incorporation) corporation, on behalf of smd corporation
f ~"¢~t~t~ '~ .............. ~.~l~
Notary Public, State o
Mayor, City of Denton
ATTEST
(SEAL)
C~ty Secretary
MUTUAL RELEASE OF ALL CLAIMS PAGE 3
STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the day of ,
2001, by_ as Mayor of the C~ty of Denton
Notary Pubhc, State of Texas
MUTUAL RELEASE OF ALL CLAIMS PAGE 4
AUSLlBi/EFI~I44154 01(14415t[_1 DOC}
AGENDA INFORMATION SHEET Oa~. / _
AGENDA DATE. December 11, 2001
DEPARTMENT City Manager's Office
CM/DCM/ACM: Michael A Conduff, City Manager
SUBJECT.
Receive a report, hold a dascusslon, and gave staff direction regar&ng a comprehensive
management study
BACKGROUND:
Per Councllmember McNeall's request, staff has investigated procedures and vendors to conduct
a comprehensive management study In an effort to achieve greater efficiency, productivity, and
effectaveness in supplying services to our cmzens, management studies are a source of provadlng
an independent evaluataon of the current level of service and staffing along w~th ldentafylng
changes and the fiscal ampacts of the recommended changes
Several firms have the knowledge and skills available to conduct such a study The attached
vendors last (Attachment 1) was developed through a comblnataon of vendors sohclted by the
Utility Department of the Caty of Denton in 1997 and the Caty of Greenville's list used for their
management studies conducted in 1999 and 2000 All firms have been contacted to determine
thear abthty and interest an providing the service
The management study can be conducted an a variety of ways A study can be done of the entire
orgamzatlon, the non-utthty departments, or one department at a time The Caty Charter
prescribes that "at antervals not exceeding ten (10) years the council shall at the expense of the
utdltms involved cause a general management survey to be made of all utthtaes under the
junsthctaon of the board by a competent management consulting or industrial engineering finns,
the report and recommendations of whach shall be made public" The most recent management
study of the utthty department was conducted an 1997 This study included the administration,
electric, water, wastewater, dramage, solid waste, and fleet services Therefore, staff does not
recommend that utthtaes be included an a new study
The other optaons provade a study of non-utility departments, either all at one time or
individually There are several pros and cons of each of these approaches that have been outlined
an Attachment 2 Probably the most sagmficant factors to influence the decision would be time
and cost Both of these factors are significant and must be consadered carefully Based on our
knowledge of the recent study done ~n the utthty department, we estimate that a study of all non-
utthty departments will take at least SlX months to complete and the cost wall be ~n excess of
$160,000 Based on the City of Greenville's recent studies, we estimate that mdamdual
Comprehensive Management Study
December 11, 2001
Page 2
departmental studies will vary in length and cost depending on the size and complexity of
operations
Additionally, two draft request for serwce proposals have been provided The first (Attachment
3) IS a Request for Services Proposal for a Comprehensive Management Study of a specific
department, and the second (Attachment 4) is a Request for Services Proposal for a
Comprehensive Management Study for the City of Denton for all non-utility deparmaents Both
proposals will include the standard professional services agreement (Attachment 5)
FISCAL 'INFORMATION'
The cost of the contracted proposal for the 1997 utlhty study was $160,000 The C~ty of
Greenville's (population 23,960) ~ndlvldual studies costs were $60,500 for a police study In
1999, $35,000 for a commumty development study in 2000, and $20,000 for the city manager's
office in 2000 Garland Power & Light recently contracted a study of their operattons at a cost
of $160,000 Since the City of Denton has not tncluded funding for a comprehensive
management study in the 2001/2002 fiscal year budget, an alternative method of financing needs
to be identified If a study of all the non-utility departments was conducted, ccmficates of
obligation could be issued to fund the study Any rccommendatmns for future improvements
could be addressed In future budgets
If the study were conducted one department at a time, dependent on cost, the first round of
funding could be funded from the manager's contingency account with subsequent studies and
priority recommendations funded in future budgets
OPTIONS'
1 Conduct a management study of the entire city
2 Conduct a management study of all non-utility departments
3 Conduct a management study of each department, one at a time, over multiple budget
years
RECOI~MENDATIONS:
Staff recommends conducting a comprehensive management study of non-utility departments
(Option 2) A funding source must be ldemlfied
Respectfully submitted
Betty Williams
Director of Management & Public
Information
Comprehensive Management Study
December [ 1, 2001
Page 3
Attachment 1 Vendors List
Attachment 2 Pros & Cons
Attachment 3 Request for Proposal for Comprehensive Management Study for a
Department
Attachment 4 Request for Proposal for Comprehensive Management Study for the C~ty
of Denton
Attachment 5 Professional Serwces Agreement
ATTACHMENT 1
Management Study
Bidder's List
Steve Parker James Mercer
DMG Max~mus Mercer Group, Inc
13601 Preston Rd, State 400W 551 W Cordova Rd, State 726
Dallas, TX 75240 Santa Fe, NM 87501
972-490-9990 505-466-9500
Fax 972-990-3040 Fax 770-399-9749
Deloitte & Touche PMW Assocmtes
Attn Jay R~ley Attn Paul Wh~senand
2200 Ross Ave, State 1600 232 West Avemda Gawota
Dallas, TX 75201 San Clemente, CA 92672
214-777-7000 949-498-7085
Fax 214-777-7625 Fax 949-498-8262
Arthur Anderson Katser Pubhc
Attn Dawd E~senlor Ed Boyce
901 Matn Street, State 5600 1595 Spnnghdl Rd, State 700
Dallas, TX 75202-3799 Vienna, VA 22182
214-741-8084 703 -827-9400
Fax 214-741-8383 Fax 703-827-9498
KPMG Vmtor R Prybutok, CQP
Attn Wflham P Hanley College ofBus~ness Adm~mstrat~on
200 Crescent Court, State 300 Center for Quahty & Productivity
Dallas, TX 75201 BCIS Department
214-840-2000 Umvers~ty of North Texas
Fax 214-840-2297 P O Box 305249
Denton, TX 76203
Center for Executive Development 940-565-3110
College of Business Adm~mstrat~on
Wehner Bldg, Room 201 Price Waterhouse Coopers
College Station, TX 77843-4114 2001 Ross Ave, State 1800
979-845-1216 Dallas, TX 75201
Fax 979-862-2025 214-754-5000
Fax 214-754-7991
Henderson, Young & Co
16700 NE 79th St, State 202 Ernest & Young
Redmond, WA 98052-4465 2121 San Jac~nto Street, State 1500
Attn Randy Young Dallas, TX 75201
425-869-1786 214-969-8000
Fax 425-869-5669 Fax 214-969-8481
ryounghyco~aol corn
4
Tnbndge, Inc
Attn Brian K Dem~ng
600 North West Shore Boulevard, Suite 800
Tampa, FL 33609
813-287-8887
Fax 813-287-8688
Stone & Webster Management Consultants
Attn Rmhard Kuczkowsk~
One Penn Plaza
250 West 34th Street
New York, NY 10119
212-290-7190
Professional Servmes Group, Inc
14950 Heathrow Forrest Parkway, Suite 2000
Houston, TX 77032
713-449-1500
R~chard Metzler & Assocmtes
400 Skok~e Boulevard
Northbrook, IL 60062
847-291-1414
Raftells Environmental Consulting Group, Inc
6100 Falrvlew Tower, State 615
Charlotte, NC 28210
704-556-1936
ATTACHMENT2
ATTACHMENT3
REQUEST FOR SERVICES PROPOSAL
FOR COMPREHENSIVE MANAGEMENT STUDY
OF THE PARKS & RECREATION DEPARTMENT
The City of Denton, Texas is requesting proposals from qualified consulting firms to conduct a
management review of its Parks & Recreatmn Department (Department Name)
BACKGROUND:
The City of Denton is located m north central Texas m Denton County, about 30 miles north of
Dallas and Fort Worth, and is home to approximately 80,500 people w~th an expected 21%
increase m population by the year 2005 The City is a home-rule c~ty under Texas law wth a
city manager form of government Four Assistant City Managers (Planning & Development
Services, Fiscal and Mumc~pal Services, Utthties, and Public Safety and Transportatmn
Operations) report to the City Manager Overall, the City has about 1,030 full-time and 200 part-
t~me and seasonal/temporary employees
(This paragraph should outline the quahficat~ons of the Director, number of employees In the
department, operations of the department, and major operational responsibtht~es )
The current Dtrector of Parks and Recreatton has been w~th the City of Denton Parks and
Recreation Department since April 1995 The Dtrector of Parks and Recreation reports to the
Assistant C~ty Manager for Planning & Development Services and the deparh~ent consists of
approximately 86 employees The deparhuent matntains 17 parks, including three major parks,
North Lakes Park, Civic Center Park, and South Lakes Park, open space, and hundreds of acres
of yet-to-be-developed land The department operates 10 facilities including the following
American Legion Braiding, Denton Civic Center, Civic Center Pool, Dema Recreation Center,
Goldfield Tenms Center, McMath Gymnasium, Martin Luther I(dng Jr Recreation Center, North
Lakes Reereat~on Canter, North Lakes Annex and Semor Center The depath.ent is currently
working in parmerslup w~th the Denton Independent School District for the construction and
operaUon of an aquatics center to be located m north Denton In addation, the department
operates many leisure programs, commumty education programs, and therapeutic recreation
SCOPE OF WORK:
The objective of flus management rewew is to assess the efficiency and effectiveness with which
the Parks & Recreat:on Department (Department Name) performs ~ts most critical roles and
respons~biht~es To assess the efficiency and effectiveness, we would expect the consulting firm
to conduct any fact-f'mdmg and analysis reqmred to ~dentify both strengths and weaknesses
associated w:th current management practices The study vnll include, but not necessarily be
limited to, the following
(Ind~wduahze the points for each department )
7
Request for S~VlCes Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 2
· Examlmng and revlewm§ the City of Denton orgamzatlon, City Council goals and
objectives, and the Parks & Recreation Depa~h~ent's (Depatht~ent Name) role
Examining and evaluating the commumcatlon and execution of the departmental mission
statement and sffateglc goals
· Evaluating nnplementaUon of performance targets outlmed m the Parks Master Plan tn a
t~mely and fiscally responsible manner and takdng any necessary actions
· Evaluating management and their functions along w~th their tnteractlon w~th cxtlzens, the
Parks & Recreation Board, and the C~ty Council
· Exammmg all field operations to determine their effic~ancy and effectiveness
· Examining all leisure activity operaUons to determme their efficiency and effectiveness
· Evaluattng all support services
· Evaluating community factors which affect the demand for parks and recreation services
· Producmg a report that w~ll include the followtng
1 Strengths and weaknesses tn the exlstmg operations
2 The effecttveness of recent measures
3 Recommend changes and anticipated financial Impacts of such changes
4 Identify any Impediments or constrmnts to ~mplementtng recommended process
Improvements
5 Identify priorities and processes for maktng recommended changes
6 Recommendations for ongoing momtonng and ~dentlfy adjustments
7 Recommendations for estabhshmg appropriate performance measures for tracking
efficient and effecttve department operations
To assess the efficiency and effectiveness of the Parks & Reereatlon Depathuant,
(Department Name) we would expect the consulting firm to conduct any fact-fin~hng and
analysis reqmred to ~dentxfy both strengths and weaknesses associated w~th current
management practices The tasks to be conducted would mclude, but would not necessary be
hm~ted to, the following
8
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 3
· Interview City Council members, City Manager, Assistant City Manager for
Planning & Development Services, Director of Parks & Recreation, Assistant
D~rector of Parks & Recreation, (Department specific) supenntendents and
staff members to obtain their perspective of the Parks & Recreation
Department (Department Name) operations
· Intennew a mmamum of 20 external stakeholders in order to ascertain the
perceived strengths, weaknesses, and threats of the Parks & Recreation
Department (Department Name) All interviews with the elected officials will
be led by the Consultant's Project Manager and'or Partner-In-Charge Other
interviews may be conducted by members of the Consultant's team most
familiar with park and recreation operations
· Review relevant reports (e g, master plans, operating budgets, strategic plans,
annual financial reports, and internal correspondence) to obtmn an
understanding of the Parks & Recreation Department (Department Name)
daemon-making process, management practices and other operating
characteristics
· Summarize the department's mission, strategies, annual goals and
performance object,vas, review the manner m which the objectives are set and
performance data is used to evaluate overall efficiency and effectiveness, and
assess compliance with established management goals
· Validate the current orgamzat~on charts, reporting relat~oush~ps, staff'mg levels
and workload assignments, analyze the current organizational structure (e g
accountability, alignment, and pans of control) and evaluate the extent of
centrallzatlon and dalegatlon of authority to supervisors
· Assess the allocation of the Parks & Recreation Department's (Department
Name) resources, review the overall adequacy of staff capabllmes and review
the department's use of available technology
The consultant's fact-f'mchng and analytical work should result in the identification of critical
management issues and i~mdmgs concerning the strengths of the Parks & Recreation
Department (Department Name) as well as any opportunities for improvement The
consult~mt should then recommend appropriate strategies for addressing these opportumtles
m the ~ontext of the important strategic issues facing the City As a result, the Parks &
Racreat~on DeparUnent (Depa~h~ent Name) should have a specific implementation plan for
the improvement opportunities m the dehvery of services, communications mechanisms,
operational procedures and systems, and related findings and recommendations to improve
the efficiency and effectiveness of the department and its manner and level of community
Interaction
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 4
All findings and recommendations should be presented in a draft report to the City Manager
and Council After reviewing the report draft wath City officials, the consultant w~ll then be
expected to provide twenty (20) bound copies of the fmal report to the City The final report
should include findings, recommendations and a short-term and long-term action plan for
implementing the recommended improvement strategies
SUBMITTAL REQUIREMENTS:
The responses should address each of the following areas m the same order in which they are set
forth below
A Transrmttal letter
B Statement of mterest pertaining, to fins specific project, mcludang a statement of
availability to undertake fins project w~th respect to personnel proposed for the protect
team
C General Organization of Respondent
1 Name and Address of respondent and each sub-consultant firm 0f apphcable)
2 Data and General qualifications for each firm
3 Fu, m profile, including
(a) Number of years m business
(b) Type of firm (e g partnershap, professional corporation, etc )
(c) Fmn bastory
(d) Finn size (professionals by discipline)
(e) Areas of specialty/concentration
(f) Telephone number and fax number
D Description of the team
1, Identification of the smgle point of contact for the team
2 Identafication of key personnel for respondent and sub-consultants to be
assigned to the project
3 Orgamzatlonal chart lllustratmg reporting lines and names and titles for key
pamclpants proposed by the respondent and each sub-consultant, if
applicable
E Resumes for each key md~vidual on the team and definition of that person's role in
conducting the evaluation
q0
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 5
F Provide a schedule for the completion of all services reqmred for the conlract Provide a
timeline chart outlining the days reqmred to complete each task as outlined the RFP
G Provide a reference list of at least three (3) similar projects completed by the firm m the
last three to five years, including
1 a brief description of the project,
2 the city for which the study was prepared (Include reference names and phone
numbers, they may be contacted),
3 the date and length of time during which the study was prepared, and
4 the cost of the project
H The proposal must be signed by an official anthonzed to hind the fn'm, and shall contain
a statement to the effect that the proposal Is valid for ninety (90) days
SERVICES FURNISHED BY THE CITY OF DENTON:
The City voll furnish the followang to assist the consultant m the project
1 A single m&vidual designated as the ProJect Coordinator
2 All readily avmlable reformation from the City's existing records mclu&ng prior
management sm&es, financial analysis, operational guidelines, budgets, master plans,
future reqmrements, annual reports and any other data currently available from the
City
3 The Project Coordinator w~ll act as a h0ason to the consultant In requesting
reformation from other municipal, state or other orgamzatlons upon request of the
consultant The city wffi obtain form other parties such m-formation as the consultants
determine necessary for conducting the management study
SUBMITTAL DEADLINES
All submission of interest not received by 2 00 p m (local time) on Tuesday/Thursday XXXXX,
2002, will not be considered
1 SUBMITTAL OF PROPOSALS One original copy signed by an officer authorized to brad
the company, and SlX (6) copies of your completed proposal must be submitted m a sealed
envelope by 2 00 p m on (date), 2002 Proposal may be mailed or hand delivered However, if
sent by mall, the responsibility of timely delivery is enUrely up to the bidder/proposer Proposals
shall be no more than 20 pages (excluding project staff resumes)
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 6
Each sealed proposal shall be properly addressed w~th the name of the firm/proposer and the
Item dascrlptlon "RFSP #;?!~;~ for Professional Serwces - Comprehensive Management Study of
the Parks & Recreation Department" (Department Name) written on the outside of the package
and delivered or mmled to
Dehver to Mml to
City of Denton SAME AS "DELIVER TO" ADDRESS
Materials Management/PURCHASING
901-B Texas Street
Denton, TX 76209
Arm Tom Shaw
Proposals received after 2 00 p m on (date), 2002 will not be considered, and any proposal
received after the scheduled closing t~me shall be returned to the proposer unopened Questions
concerning the proposal should be d~rected to the following
Tom Shaw, 940-349-7100
2 PROPOSAL WITHDRAWAL No proposal may be w~thdrawn aider having been formally
opened by the City of Denton
3 LEGAL DISPUTES Proposer agrees and stipulates that ~n the event any ht~gatlon should
occur concarnmg or arising out of any proposals submitted ~n response to a Request For Proposal
the sole venue of any such legal action shall be in Denton County Texas
4 LICENSES Fnwa must be licensed to do business m the State of Texas, lfapphcable Any and
all fees and taxes are the responsibility of the proposer
5 REJECTION OF PROPOSALS The C~ty of Dentun reserves the right to 1) reject any and all
proposals, and 2) issue subsequent Requests For Proposal
6 PROPOSER RESPONSIBILITY - PROPOSAL COSTS It is to be understood and agreed by
proposer that this Request For Proposal does not obligate the City of Denton to pay any costs
Incurred by proposer m the preparation and submlss~on of a proposal, or oral interview
7 PROPOSALS After evaluation and Award by the City of Denton, the unsuccessful
proposer(s) may request a debriefing regar(hng their proposal Please contact Tom Shaw at the
above telephone number
8 PROPOSAL FORMAT Telecopy (facsimile) and e-mad proposals will not be accepted by the
C~ty of Denton
9 EQUAL OPPORTUNITY/AFFIRMATIVE ACTION All Equal Employment Oppormmty
laws apply to tins project
Request for Services Proposal City of Denton
Comprehensive Management Study of thc Issued Date, 2001
p ,
arks & Recreation Department Proposals Due Date, 2001
Page 7
10 STANDARD REQUIREMENTS Any resulting contract will be subject to the standard
reqmrements, terms and conditions of the City of Denton covenng such contracts An Official
and signed copy of the contract reqmrements (Agreement) will be furnished to the firm awarded
this contract Attached is the City of Denton's Standard Agreement Any objection or
modificatiOns to the Agreement, other than the reformation needed to consummate it, need to be
addressed m the proposal The City of Denton reserves the right to consider these objections or
modlficat~ons
11 SUB-CONSULTANTS The City of Denton reserves the right to approve any sub-
consultants proposed for work under this proposal
12 CANCELLATION The City of Denton reserves the right to cancel the contract if the
services provided are not meeting the City of Denton's needs Notification will be provided in
writing Payment will only be provided on those services that are performed prior to possible
cancellation of the contract
EVALUATION AND SELECTION PROCESS
A Proposals will be reviewed by a Selection Team The Selection Team will include members
from wittun the staff of the City of Denton The Team shall also serve as a steering committee
throughout the duration of the review process Selection for the professional services in tins
Request will be made on the basis of demonstrated competence and qualifications to perform the
service and for a fmr and reasonable price The professional fees under the contract must be
consistent with and not tugher than the recommended practices and fees published by the
applicable associations These fees may not exceed any maximum provided by law The firms
most highly qualified and responsive to the City of Denton's need may be invited for an oral
interview, if necessary Evaluation of proposals will be based on the following
1 Identification and understanding of the City of Denton's reqmrements for this project
FACTOR 10%
2 Firm's past performance and experience on similar projects of this magnitude and
complexity
FACTOR 25%
3 Flrm!s experience with specific Parks & Recreation Department (Department Name)
issues related to fins project
FACTOR 30%
4 Experience and qualifications of key personnel avmlable for this project
FACTOR 20%
Request for Sennces Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks & Recreation Department Proposals Due Date, 2001
Page 8
5 An m&cation that the firm has the capability to meet the schedule for the scope of work
del'reed m thas proposal
FACTOR 15%
B The City of Denton has the option to request that further information be provided by a firm in
order to complete the evaluation
C The selected firm will be offered a contract (w~th possible extensions for future phases, if
applicable) although the City of Denton reserves the right to select other fLrms for future phases
The City of Denton prefers to contract wqth a smgle finn, although the City of Denton reserves
the right to select port~ons of proposals fi.om more than one firm, if deemed appropriate
D All proposers will be notified, upon final determination by the Procunng Official of the City
of Denton, of the fn*ra selected to perform the requested work
E Following is the proposed schedule for the selection
Date Issue RFSP December 21, 2001
Date Proposal due January 22 or 24, 2002
2 00 pm (local time)
Evaluations Complete by January 31, 2002
Selection Date and begin contract negot~ations February 1, 2002
Date Notification of selection and contract approval February 20, 2002
Date Begqn work February 21, 2002
These are proposed and estimated dates only.
Project Begins February 21, 2002
Interim Reports (monthly)
Presentation of Preliminary Report (4 months)
Presentation of Final Report ($ months)
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
Parks &Recreatton Department Proposals Due Date, 2001
Page 9
City of Denton Profile
Type of Government Home Rule City - Council/Manager
Population 80,500
Land Area 62 Square Miles
Miles of Streets 335
Population Demograptucs 76% White
9% Black
12% Hispanic
Pubhc Schools 2 High Schools
3 Middle Schools
12 Elementary Schools
Umversit~es 2
Libraries 2
City Parks 17
Recreational Fatalities 10
Mumclpal Tennis Courts 8
Golf Courses 2 (private)
Major Industries Manufactunng, Dmtnbutlon Centers,
Corporate & Regional Headquarters, Call
Centers, Telecommunications
F~re Stattons 6 Stations
Certified F~refighters 131
Other Employees 19
Police Stations 1 Station, 3 Community Oriented Offices
Certified Officers 135
Other Employees 45
ATTACHMENT4
REQUEST FOR SERVICES PROPOSAL
FOR COMPREHENSIVE MANAGEMENT STUDY
OF THE CITY OF DENTON
The C~ty of Denton, Texas is requesting proposals from qualified consulting firms to conduct a
management review of the City of Denton non-utlhty departments
BACKGROUND.
The C~ty of Denton is located in north central Texas m Denton County, about 30 miles north of
Dallas and Fort Worth, and ~s home to apprommately 80,500 people with an expected 21%
~ncrease m population by the year 2005 The City of Denton is the county seat for Denton
County The county populatmn ~s 432,976 The city hmits of Denton encompass 62 square
miles of which only 40% is developed
Denton ~s home to two major state universities, the Umverslty of North Texas wath
approximately 27,000 students and Texas Woman's Umverslty wath approximately 9,000
students In addition, Denton benefits from the North American Free Trade Agreement
(NAFTA) because Interstates 35E and 35W converge ~n Denton and continue north to Canada
becmnmg the "NAFTA Superhighway"
The City Is a home-rule city under Texas law with a city manager form of government Four
Assistant City Managers (Planmng & Development Services, Fiscal and Man~ctpal Services,
Utilities, and Pubhc Safety and Transportation Operations) report to the City Manager Overall,
the City has about 1,030 full-time and 200 part-time and seasonal/temporary employees
SCOPE OF WORK.
The objective of this management rewew is to assess the efficiency and effectiveness wath which
the City of Denton non-utlhty departments perform their most cntmal roles and responslbd~ties
To assess the efficiency and effectiveness, we would expect the consulting firm to conduct any
fact-finding and analysis required to identify both strengths and weaknesses associated with
current management practices The study wall include, but not be hmlted to, the followang
· Examining and reviewing the C~ty of Denton organlzatmn, City Council goals and
objectives, and each department's role See hst of department's in Attachment A
· Examunng and evaluating the communication mad execution of the departmental mission
statements and strategic goals
· Evaluating management and their functions along with their lnteractlon with citizens,
other city departments, boards and commissions, and the City Council
· Evaluating implementation of performance targets outlined in all master plans in a t~mely
manner and taking any necessary actions
Request for Services Proposal C~ty of Denton
Comprehensive Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 2
· Examining all operations to determine their effimency and effectiveness regarding legal
reqmrements, financml respons~bthty, planmng, and functions
· Examining all personnel and processes to determine their efficiency and effectiveness
and appropriate reporting structure
· Evaluating all support serwces
· Evaluating commtm~ty factors which affect the demand for c~ty servmes
· Producing a report that wall ~nclude the following
1 Strengths and weaknesses m the emstmg operations
2 The effectiveness of recent measures
3 Recommended changes and anticipated financial ~mpacts of such changes
4 Identify any ~mped~ments or constrmnts to ~mplementmg recommended process
Improvements
5 Identify priorities and processes for makang recommended changes
6 Recommendations for ongoing momtonng and ~dennfy adjustments
7 Recommendations for estabhsh~ng approprmte performance measures for tracking the
efficiency and effectiveness of department operations
To assess the efficiency and effectiveness of the C~ty of Denton, we would expect the
consulting firm to conduct any fact-finding and analys~s reqmred to ~dent~fy both strengths
and weaknesses assocmted uath current management pmctmes The tasks to be conducted
would include, but would not necessary be hm~ted to, the following
· Interview C~ty Council members, C~ty Manager, all Assistant C~ty Managers,
&rectors, assistant d~rectors, supenntendents and staff members to obtmn their
perspective of C~ty of Denton operations
· Interview a m~mmum of 20 external stakeholders m order to ascertain the
perceived strengths, weaknesses, and threats of the c~ty All ~nterv~ews w~th
the elected officmls will be led by the Consultant's Project Manager and/or
Partner-In-Charge Other ~ntervlews may be conducted by members of the
Consultant's team most famdmr w~th local government operatmns
Request for Services Proposal
C~ty of Denton
Comprehensive Management Study of the
C~ty of Denton Issued Date, 2001
Page 3 Proposals Due Date, 2001
· Review relevant reports (e g, master pla~s, operating budgets, strategm plans,
annual financml reports, and ~nternal correspondence) to obtmn an
understanding of the C~ty of Denton dec~mon-mak~ng process, development of
management practmes and other operating characteristics
· Sttmmanze all department m~sslon statements, strategies, goals and
performance objectives, rewew the manner ~n which the objectives are set and
performance data ~s used to evaluate overall efficiency and effectiveness, and
assess comphance wtth established management goals
· Validate the current orgamzat~on charts, reporting relationships, staffing levels
and workload assignments, analyze the current organizational structure (e g
accotmtabfllty, ahgnment, and pans of control) and evaluate the extent of
centrahzat~on and delegation of authority to supervisors
· Assess the allocation of the Ctty of Denton's resources, review the overall
adequacy of staff capab~htms and rewew the department's use of avmlable
technology
The consultant's fact-finding and analytmal work should result m the ~denttficatlon of cntmal
management ~ssues and findings concermng the strengths of the C~ty of Denton as well as any
opportuntt~es for ~mprovement The consultant should then recommend approprmte strategies
for addressing these opportumt~es m the context of the ~mportant strategm ~ssues facing the City
As a result, the Ctty of Denton should have a spemfic ~mplementatmn plan for the ~mprovement
opporttm~t~es ~n the delivery of servmes, commumcat~ons mechanisms, operational procedures
and systems, and related findings and recommendations to improve the effictency and
effectiveness of each department and ~ts manner and level of community lnteractton
All fin&ngs and recommendations should be presented in a draft report to the Ctty Manager and
Council After rewewmg the report draft w~th C~ty officials, the consultant will then be expected
to prowde twenty (20) bound cop~es of the final report to the C~ty The final report should
~nclude findings, recommendations and a short-term and long-term action plan for Implementing
the recommended Improvement strategies
SUBMITTAL REQUIREMENTS
The responses should address each of the following areas ~n the same order ~n whmh they are set
forth below
A Transmittal letter
Request for Servmes Proposal Clty of Denton
Comprehensive Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 4
B Statement of ~nterest pertaining to th~s spectfic project, ~nclud~ng a statement of
avmlabd~ty to undertake th~s project vath respect to personnel proposed for the project
team
C General Organ~zatlon of Respondent
1 Name and Address of respondent and each sub-consultant firm 0f apphcable)
2 Data and General quahficat~ons for each firm
3 F~rm profile, ~ncludlng
(a) Number of years m bus~ness
(b) Type of firm (e g partnership, professional corporatmn, etc )
(c) F~rm h~story
(d) F~rm s~ze (professionals by dlsc~phne)
(e) Areas of spemalty/concentratmn
(f) Telephone number and fax number
D Description of the team
1 Identfficat~on of the single point of contact for the team
2 Identification of key personnel for respondent and sub-consultants to be
assigned to the project
3 Organizational chart dlustrat~ng reporting hnes and names and t~tles for key
participants proposed by the respondent and each sub-consultant, ff
apphcable
E Resumes for each key ~nd~v~dual on the team and defimt~on of that person's role ~n
conducting the evaluation
F Prowde a schedule for the completion of all serwces reqmred for the contract Provide a
t~mehne chart outhnlng the days reqmred to complete each task as outhned the RFSP
G Prowde a reference hst of at least three (3) s~mdar projects completed by the firm ~n the
last three to five years, ~ncludmg
1 a brief description of the project,
2 the mty for whmh the study was prepared (xnclude reference names and phone
numbers, they may be contacted),
3 the date and length oft~me dunng whmh the study was prepared, and
4 the cost of the project
H The proposal must be s~gned by an offimal authorized to b~nd the firm, and shall contmn
a statement to the effect that the proposal is valid for mnety (90) days
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
City of Danton Proposals Due Date, 2001
Page 5
SERVICES FURNISHED BY THE CITY OF DENTON'
The City will furnish the following to assist the consultant in the project
1 A single mdlvldual designated as the Project Coordinator
2 All readily available information from the City's existing records mcludlng prior
management studies, financial analysis, operational guidelines, budgets, master
plans, future requirements, annual reports and any other data currently available
from the City
3 The Project Coordinator vall act as a halson to the consultant in requesting
mformation from other municipal, state or other organizations upon request of the
consultant The city will obtain from other parties such reformation as the
consultants determme necessary for conducting the management study
SUBMITTAL DEADLINES
All submission of proposals not received by 2 00 p m (local time) on Tuesday/Thursday
XXXXX, 2002, will not be considered
1 SUBMITTAL OF PROPOSALS One ongmal copy signed by an officer authonzed to bind
the company, and SlX (6) copies of your completed proposal must be submitted in a sealed
envelope by 2 00 p m on (date), 2002 Proposal may be mailed or hand delivered However, if
sent by marl, the responsibility of timely dehvery is entirely up to the bidder/proposer Proposals
shall be no more than 20 pages (excluding project staff resumes)
Each sealed proposal shall be properly addressed with the name of the firm/proposer and the
item description "RFSP #### for Professional Services - Comprehensive Management Study of
the City of Denton Non-Utlhty Departments" written on the outside of the package and dehvered
or mailed to
Dehver to Mall to
City of Denton SAME AS "DELIVER TO" ADDRESS
Materials Management/PURCHASING
901-B Texas Street
Denton, TX 76209
Attn Tom Shaw
Proposals received after 2 00 p m on (date), 2002 will not be considered, and any proposal
received after the scheduled closing time shall be returned to the proposer unopened Questions
concerning the proposal should be directed only to the following
Tom Shaw, 940-349~7100
2O
Request for Services Proposal City of Denton
Comprehensave Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 6
2 PROPOSAL WITHDRAWAL No proposal may be w~thdrawn after hawng been formally
opened by the City of Denton
3 LEGAL DISPUTES Proposer agrees and stipulates that ~n the event any htlgat~on should
occur concermng or arising out of any proposals submitted m response to a Request For Proposal
the sole venue of any such legal action shall be ~n Denton County, Texas
4 LICENSES Firm must be licensed to do business ~n the State of Texas, ~f applicable Any and
all fees and taxes are the responsibility of the proposer
5 REJECTION OF PROPOSALS The City of Denton reserves the right to 1) reject any and all
proposals, and 2) ~ssue subsequent Requests For Proposal
6 PROPOSER RESPONSIBILITY - PROPOSAL COSTS It is to be understood and agreed by
proposer that flus Request For Proposal does not obhgate the C~ty of Denton to pay any costs
~ncurred by proposer m the preparation and submission of a proposal, or oral ~ntervlew
7 PROPOSALS After evaluation and Award by the C~ty of Denton, the unsuccessful
proposer(s) may request a debriefing regarding their proposal Please contact Tom Shaw at the
above telephone number
8 PROPOSAL FORMAT Telecopy (facs~rmle) and e-marl proposals will not be accepted by the
C~ty of Denton
9 EQUAL OPPORTUNITY/AFFIRMATIVE ACTION All Equal Employment Opportumty
laws apply to th~s project
10 STANDARD REQUIREMENTS Any resulting contract will be subject to the standard
requirements, terms and conditions of the City of Denton covenng such contracts An Official
and signed copy of the contract requirements (Agreement) will be furnished to the firm awarded
this contract Attached is the City of Denton's Standard Agreement Any object~on or
modfficatmns to the Agreement, other than the mformat~on needed to consummate It, need to be
addressed in the proposal The C~ty of Denton reserves the right to consider these ob. lect~ons or
modfficatl0ns
11 SUB-CONSULTANTS The City of Denton reserves the right to approve any sub-
consultants proposed for work under th~s proposal
12 CANCELLATION The C~ty of Denton reserves the right to cancel the contract ~f the
serwces provided do not meet the City of Denton's needs Notfficat~on will be prowded in
writing Payment will only be provtded on those serwces that are performed prior to possible
cancellation of the contract
Request for Services Proposal C~ty of Denton
Comprehensive Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 7
EVALUATION AND SELECTION PROCESS
A Proposals wall be rewewed by a Select,on Team The Select~on Team w~ll ,nclude members
from w,thin the staff of the C~ty of Denton The Team shall also serve as a steering comnnttee
throughout the duration of the rev,ew process Select,on for the profess,onal serv,ces ,n th,s
Request wall be made on the bas,s of demonstrated competence and quahficatlons to perform the
servme and for a fa,r and reasonable pr,ce The professional fees under the contract must be
consistent wath and not h~gher than the recommended practices and fees pubhshed by the
apphcable assocmt,ons These fees may not exceed any maximum promded by law The firms
most h~ghly quahfied and responsive to the C~ty of Denton's need may be invited for an oral
interview Evaluat,on of proposals will be based on the followang
1 Identfficatmn and understanding of the City of Denton's reqmrements for this project
FACTOR 10%
2 F~rm's past performance and expenance on s,m,lar projects of th,s magmtude and
complexity
FACTOR 25%
3 F~rm's experience w,th spec,ftc local government organ~zat,on ,ssues related to th,s
project
FACTOR 30%
4 Experience and quahficat~ons of key personnel avmlable for th,s project
FACTOR 20%
5 An mdmatton that the firm has the capab~llty to meet the schedule for the scope of work
defined m th~s proposal
FACTOR 15%
B The C,ty of Denton has the optaon to request that further ,nformat,on be prov,ded by a firm in
order to complete the evaluat,on
C The selected finn wall be offered a contract (w,th possible extensions for future phases, if
apphcable) although the City of Denton reserves the right to select other firms for future phases
The C~ty of Denton prefers to contract with a s~ngle firm, although the C~ty of Denton reserves
the right to select portions of proposals from more than one firm, ,f deemed appropriate
D All proposers will be notified, upon final determlnat,on by the Procunng Officxal of the C,ty
of Denton, of the firm selected to perform the requested work
E Following is the proposed schedule for the select,on
Request for Services Proposal C~ty of Denton
Comprehensive Management Study of the Issued Date, 2001
City of Detnton Proposals Due Date, 2001
Page 8
Date Issue RFSP December 21, 2001
Date Proposal due January 22 or 24, 2002
2 00 pm (local time)
Evaluations Complete by January 31, 2002
Select~on Date and begin contract negotiations February 1, 2002
Date Notification of selection and contract approval February 20, 2002
Date Begin work February 21, 2002
These are proposed and estimated dates only.
ProJect Begins February 21,2002
Interim Reports (monthly)
Presentation of Prehm~nary Report (6-7 months)
Presentation of Final Report (1 month later)
Request for Services Proposal C~ty of Denton
Comprehensive Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 9
City of Denton Profile
Type of Government Home Rule C~ty- Councd/Manager
Population 80,500
Land Area 62 Square Males
M~les of Streets 335
Population Demographms 76% White
9% Black
12% H~spamc
Pubhc Schools 2 High Schools
3 M~ddle Schools
12 Elementary Schools
Unlvers~tms 2
L~braries 2
C~ty Parks 17
Recreational Factht~es 10
Mumc~pal Tenms Courts 8
Golf Courses 2 (pnvate)
Major Industries Manufacturing, Distribution Centers,
Corporate & Regional Headquarters, Call
Centers, Telecommumcat~ons
F~re Stations 6 Stations
Certffied Flrefighters 131
Other Employees 19
Pohce Stations 1 Statmn, 3 Commumty Oriented Offices
Certffied Officers 135
Other Employees 45
Request for Serwces Proposal City of Denton
Comprehensave Management Study of the Issued Date, 2001
C~ty of Denton Proposals Due Date, 2001
Page 10
ATTACHMENT A
Caty Manager
Caty Manager's Office
C~ty Secretary's Office
Internal Audit
Pubhc Infonnataon Office
Reprograplucs
Caty Attorney
Legal
Mumeapal Judge
Assistant C~ty Manager of Pubhc Safety & Transportation
Pohee Departmem · Ammal Control
· Code Enforcement
F~re Department · Admmastratlon
· Operations
· Prevention
· Emergency Medmal Servmes
Transportataon · A~rport
· LINK
· Fleet Servmes
Request for Services Proposal C~ty of Denton
Comprehensive Management Study of the Issued Date, 2001
City of Denton Proposals Due Date, 2001
Page 11
Assistant City Manager of Utilities
Streets
* Traffic Control
Assistant City Manager of Planning & Development Services
Planning
· Building Inspection
Engineering
Facilities Management
Econounc Development · Community Development
· Main Street
Parks & Recreation · Keep Denton Beautiful
· Park Mmntenance
· Leisure Services
Assistant City Manager of Fiscal & Municipal Services
Fiscal Operations · Tax
· Municipal Court
· R~sk Management
· Cash and Debt Management
Management & Budget · Accounting
· Budget
· Materials Management
Library
Human Resources
Request for Services Proposal City of Denton
Comprehensive Management Study of the Issued Date, 2001
City of Denton Proposals Due Date, 2001
Page 12
Tech Services · GIS
· Phones
ATTACHMENT $
PROFESSIONAL SERVICES AGREEMENT
]FOR
STATE OF TEXAS §
COUNTY OF DENTON §
THIS AGREEMENT is made and entered into as of the day of
,20__, by and between the City of Denton, Texas, a Texas municipal
corporation, with its principal office at 215 East McKlnney Street, Denton, Denton County,
Texas 76201, hereinafter called "OWNER" and , with its
corporate office at _, hereinafter called "CONSULTANT,"
acting herein, by and through their duly authorized representatives
WITNESSETH, that m consideration of the covenants and agreements herein contained,
the parties hereto do mutually agree as follows
ARTICLE I
EMPLOYMENT OF CONSULTANT
The OWNER hereby contracts w~th the CONSULTANT, as an independent contractor,
and the CONSULTANT hereby agrees to perform the serwces herein in connection with the
Project as stated in the sections to follow, with diligence and ~n accordance with the h~ghest
professional standards customarily obtmned for such services ~n the State of Texas The
professional services set out herein are m connection with the following described project
The Project shall include, without limitation, (herein describe project)
ARTICLE II
SCOPE OF SERVICES
The CONSULTANT shall perform the following servmes in a professional manner
A The CONSULTANT shall perform all those serwces as necessary and as described in the
OWNER's (describe any request for proposal which the
OWNER has utilized to sohclt the CONSULTANT's services), which is attached hereto
and made a part hereof as Exlublt "A" as ~f written word for word herein
B To perform all those services set forth in CONSULTANT's
(describe any proposal of CONSULTANT which has been provided ~ncluding the date of
said proposal), which proposal ~s attached hereto and made a part hereof as Exhibit "B"
as if written word for word herein
C CONSULTANT shall perform all those services set forth in ~ndiwdual task orders which
shall be attached to this Agreement and made a part hereof for all purposes as separate
28
agreements (If CONSULTANT is a professional engineer and you wish to list specific
servtces of the CONSULTANT, please hst all specific engineering services to be
provided, tncludlng the preparation of detailed plans and specifications )
D If there is any conflict between the terms of this Agreement and the exhthlts attached to
this Agreement, the terms and condlttons of this Agreement will control over the terms
and condttlons of the attached exhibits or task orders
ARTICLE III
ADDITIONAL SERVICES
(To be used is CONSULTANT ts an engineer ) Additional services to be performed by
the CONSULTANT, if authorized by the OWNER, which are not included m the above-
described Bame Services, are described as follows
A During the course of the ProJect, as requested by OWNER, the CONSULTANT will be
avmlable to accompany OWNER's personnel when meeting with the Texas Natural
Resource Conservation Commission, U S Environmental Protection Agency, or other
regulatory agencies The CONSULTANT will assist OWNER's personnel on an as-
needed basts tn preparing compliance schedules, progress reports, and providing general
techmcal support for the OWNER's compliance efforts
B Asststmg OWNER or contractor in the defense or prosecution of litigation in connection
with or in addition to those servtces contemplated by this Agreement Such services, if
any, shall be furnished by CONSULTANT on a fee bas~s negotiated by the respective
parOes outside of and in addition to thts Agreement
C Sampling, testing, or analysis beyond that spectfically included in Basle Services
D Preparing copies of computer reded drafting (CAD) electronic data bases, drawings, or
files for the OWNER's use m a future CAD system
E Prepanng applications and supporting documents for government grants, loans, or
planning advances and provtdmg data for detailed applications
F Appeanng before regulatory agencies or courts as an expert witness ~n any htlgat~on with
third parties or condemnation proceedings arising from the development or construction
of the Project, including the preparation of engineering data and reports for assistance to
the OWNER
G Providing geotechmcal investigations for the s~te, including soil borings, related analyses,
and recommendations
H (List any additional services not included ~n Basic Services )
Page 2
29
ARTICLE IV
PERIOD OF SERVICE
Thts Agreement shall become effecttve upon executton of thts Agreement by the
OWNER and the CONSULTANT and upon tssue of a notme to proceed by the OWNER, and
shall remmn m force for the period wiueh may reasonably be reqmred for the completton of the
Project, tncludmg Addtt~onal Servmes, tf any, and any reqmred extenstons approved by the
OWNER Th~s Agreement may be sooner termmated tn accordance w~th the provtstons hereof
Ttme ~s of the essence m thts Agreement The CONSULTANT shall make all reasonable efforts
to complete the servmes set forth herem as expedtttously as possthle and to meet the schedule
estabhshed by the OWNER, acting through ~ts City Manager or hts destgnee
ARTICLE V
COMPENSATION
A COMPENSATION TERMS
1 "Subcontract Expense" ~s defined as expenses tncurred by the CONSULTANT in
employment of others in outstde firms for servtces tn the nature of
2 "Dtrect Non-Labor Expense" ts defined as that expense for any asstgnment
recurred by the CONSULTANT for supphes, transportatton and eqmpment,
travel, commtmtcattons, subsistence, and lodgtng away from home, and s~mtlar
lnctdental expenses tn cormectton w~th that asstgnment
B BILLING AND PAYMENT For and m constderatton of the professtonal services to be
performed by the CONSULTANT heretn, the OWNER agrees to pay, based on the cost
esttmate detad at an hourly rate shown m Exhtbtt "C" which ts attached hereto and made
a part of th~s Agreement as ff written word for word hereto, a total fee, xncludmg
retmbursement for dtrect non-labor expenses not to exceed
Parttal payments to the CONSULTANT wtll be made on the bas~s of detmled monthly
statements rendered to and approved by the OWNER through tts Ctty Manager or h~s
designee, however, under no mrcumstances shall any monthly statement for servmes
exceed the value of the work performed at the ttme a statement ts rendered The
OWNER may wtthhold the final five percent (5%) of the contract amount until
completton of the ProJect
Nothing contmned m th~s Arttcle shall reqmre the OWNER to pay for any work whmh ts
unsatisfactory, as reasonably determined by the Ctty Manager or hts designee, or whmh ts
not submitted tn comphance w~th the terms ofth~s Agreement The OWNER shall not be
reqmred to make any payments to the CONSULTANT when the CONSULTANT ts tn
default under thts Agreement
Page 3
a0
It as specifically understood and agreed that the CONSULTANT shall not be authorized
to undertake any work pursuant to this Agreement which would require addit~onal
payments by the OWNER for any charge, expense, or relmbursemem above the
maximum not to exceed fee as stated, w~thout first hawng obtmned written authorization
from the OWNER The CONSULTANT shall not proceed to perform the services hsted
an Article III "Additional Services," w~thout obtmnmg prior written authorization from
the OWNER
C ADDITIONAL SERVICES For additional services authorized in writing by the
OWNER in Article III, the CONSULTANT shall be prod based on the Schedule of
Charges at an hourly rate shown in Exhibit "C" Payments for additional services shall
be due and payable upon submission by the CONSULTANT, and shall be ~n accordance
with subsection B hereof Statemems shall not be submitted more frequently than
monthly
D PAYMENT If the OWNER fails to make paymems due the CONSULTANT for
services and expenses w~tlun s~xty (60) days after receipt of the CONSULTANT's
undisputed statement thereof, the mounts due the CONSULTANT will be ~ncreased by
the rate of one percem (1%) per month from the said sixtieth (60th) day, and, in add~tion,
the CONSULTANT may, after giving seven (7) days' written notme to the OWNER,
suspend services under this Agreement until the CONSULTANT has been prod in full all
mounts due for services, expenses, and charges, prowded, however, nothing herein shall
reqmre the OWNER to pay the late charge of one percent (1%) set forth herein if the
OWNER reasonably determines that the work as unsatisfactory, m accordance with this
Article V, "Compensation"
ARTICLE VI
OBSERVATION AND REVIEW OF THE WORK
The CONSULTANT will exercise reasonable care and due diligence in discovering and
promptly reporting to the OWNER any defects or defimenmes ~n the work of the
CONSULTANT or any subcontractors or subconsultants
ARTICLE VII
OWNERSHIP OF DOCUMENTS
All documents prepared or furnished by the CONSULTANT (and CONSULTANT's
subcontractors or subconsultants) pursuant to this Agreement are instruments of servme, and
shall become the property of the OWNER upon the term~natmn of this Agreement The
CONSULTANT ~s entitled to retmn cop~es of all such documents The documents prepared and
furnished by the CONSULTANT are ~ntended only to be applicable to th~s ProJect, and
OWNER's use of these documents ~n other projects shall be at OWNER's sole risk and expense
In the event the OWNER uses any of the information or matermls developed pursuant to th~s
Agreement m another project or for other purposes than specified herein, CONSULTANT is
released from any and all habH~ty relating to their use in that project
Page 4
ARTICLE VIII
INDEPENDENT CONTRACTOR
CONSULTANT shall prowde services to OWNER as an independent contractor, not as
an employee of the OWNER CONSULTANT shall not have or claim any right arising from
employee status
ARTICLE IX
INDEMNITY AGREEMENT
The CONSULTANT shall ~ndemmfy and save and hold harmless the OWNER and ~ts
officers, agents, and employees from and against any and all hab~hty, clmms, demands, damages,
losses, and expenses, including, but not hm~ted to court costs and reasonable attorney fees
recurred by the OWNER, and ~ncludlng, without hmltat~on, damages for boddy and personal
injury, death and property damage, resulting from the neghgent acts or omissions of the
CONSULTANT or ~ts officers, shareholders, agents, or employees in the executmn, operatton, or
performance of this Agreement
Nothing m th~s Agreement shall be construed to create a hablhty to any person who ~s not
a party to th~s Agreement, and nothing herein shall waive any of the part,es' defenses, both at
law or eqmty, to any claim, cause of action, or ht~gatlon filed by anyone not a party to this
Agreement, including the defense of governmental ~mmumty, which defenses are hereby
expressly reserved
ARTICLE X
INSURANCE
During the performance of the services under this Agreement, CONSULTANT shall
malntmn the following insurance w~th an insurance company hcensed to do bus~ness m the State
of Texas by the State Insurance Commission or any successor agency that has a rating with Best
Rate Carriers of at least an A- or above
A Comprehensive General Lmbfllty Insurance w~th boddy injury hmlts of not less than
$500,000 for each occurrence and not less than $500,000 ~n the aggregate, and w~th
property damage hm~ts of not less than $100,000 for each occurrence and not less than
$100,000 in the aggregate
B Automobile Lmbfllty Insurance w~th bodily tnjury limits of not less than $500,000 for
each person and not less than $500,000 for each accident, and w~th property damage
hnltts of not less than $100,000 for each accident
C Worker's Compensation Insurance ~n accordance with statutory reqmrements, and
Employers' Lmbdlty Insurance with hmlts of not less than $100,000 for each accident
D Professional Lmb~llty Insurance with hm~ts of not less than $1,000,000 annual aggregate
P~e5
32
E The CONSULTANT shall furmsh ~nsurance certfficates or tnsurance pohc~es at the
OWNER's request to ewdence such coverages The ~nsurance pohmes shall name the
OWNER as an addmonal ~nsured on all such pohmes, and shall contmn a prows~on that
such insurance shall not be canceled or modified w~thout thirty (30) days' prior written
notice to OWNER and CONSULTANT In such event, the CONSULTANT shall, prior
to the effective date of the change or cancellation, serve substitute policies furnishing the
same coverage
ARTICLE XI
ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The part,es may agree to settle any d~sputes under th~s Agreement by submitting the
dispute to arbitration or other means of alternate d~spute resolutmn, such as medmt~on No
arbitration or alternate d~spute resolution arising out of or relating to this Agreement, ~nvolv~ng
one party's d~sagreement, may ~nclude the other party to the d~sagreement without the other's
approval
ARTICLE XII
TERMINATION OF AGREEMENT
A Notwithstanding any other provision of th~s Agreement, either party may terminate by
g~v~ng thirty (30) days' advance written not~ce to the other party
B Th~s Agreement may be terminated m whole or ~n part ~n the event of e~ther party
substantmlly fathng to fulfill ~ts obhgat~ons under th~s Agreement No such termination
vall be affected unless the other party ~s g~ven (1) written notme (dehvered by certffied
mall, return receipt requested) of intent to terminate and setting forth the reasons
spemfy~ng the non-performance, and not less than thirty (30) calendar days to cure the
failure, and (2) an opportumty for consultatmn w~th the terminating party prior to
termination
C If the Agreement ~s terminated prior to completion of the serwces to be prowded
hereunder, CONSULTANT shall ~mmedmtely cease all servmes and shall render a final
bill for servmes to the OWNER w~thm thirty (30) days after the date of term~natmn The
OWNER shall pay CONSULTANT for all serwces properly rendered and sat~sfactorlly
performed and for rmmbursable expenses to termlnatton ~ncurred prior to the date of
termination, ~n accordance w~th Artmle V "Compensation" Should the OWNER
subsequently contract w~th a new consultant for the continuation of serwces on the
ProJect, CONSULTANT shall cooperate ~n prowd~ng ~nformatmn The CONSULTANT
shall turn over all documents prepared or furmshed by CONSULTANT pursuant to th~s
Agreement to the OWNER on or before the date of termination, but may mmntmn cop~es
of such documents for ~ts use
ARTICLE XIII
RESPONSIBILITY FOR CLAIMS AND LIABILITIES
P~e6
33
Approval by the OWNER shall not constitute, nor be deemed a release of the
respons~b~hty and liability of the CONSULTANT, ~ts employees, assocmtes, agems,
subcontractors, and subconsultants for the accuracy and competency of their designs or other
work, nor shall such approval be deemed to be an assumptmn of such respons~bd~ty by the
OWNER for any defect m the design or other work prepared by the CONSULTANT, ~ts
employees, subcontractors, agents, and consultants
ARTICLE XIV
NOTICES
All notmes, commumcat~ons, and reports reqmred or permitted under this Agreement
shall be personally dehvered or mailed to the respective parties by depositing same m the Umted
States mall to the address shown below, certffied mall, return receipt requested, unless otherwise
specified here~n Mailed notices shall be deemed commumcated as of three (3) days after
malhng
To CONSULTANT To OWNER
C~ty of Demon
(Name and Title)
215 East McKmney
Denton, Texas 76201
All notices shall be deemed effective upon receipt by the party to whom such not~ce ~s
g~ven, or w~thm three (3) days after malhng
ARTICLE XV
ENTIRE AGREEMENT
This Agreement, consisting of pages and exhibits, constitutes the
complete and final expression of the agreement of the parties, and ~s ~ntended as a complete and
exclusive statement of the terms of their agreements, and supersedes all prior or
contemporaneous offers, promises, representations, negot~atmns, dlscussmns, commumcat~ons,
and agreements whmh may have been made in connection w~th the subject matter hereof
ARTICLE XVI
SEVERABILITY
If any prows~on of th~s Agreement is found or deemed by a court of competent
jurlsdmtmn to be mvahd or unenforceable, it shall be considered severable from the remainder of
th~s Agreement and shall not cause the remainder to be ~nvahd or unenforceable In such event,
the parties shall reform th~s Agreement to replace such stricken prows~on w~th a vahd and
enforceable provision whmh comes as close as possible to expressing the ~ntent~on of the stricken
provision
ARTICLE XVII
Page 7
$4
COMPLIANCE WITH LAWS
The CONSULTANT shall comply wtth all federal, state, and local laws, rules,
regulations, and ordmances apphcable to the work covered hereunder as they may now read or
heretnafter be amended
ARTICLE XVIII
DISCRIMINATION PROHIBITED
In performtng the servtces required hereunder, the CONSULTANT shall not dtscnrmnate
agatnst any person on the bas~s of race, color, rehgton, sex, national ongtn or ancestry, age, or
physmal handtcap
ARTICLE XIX
PERSONNEL
A The CONSULTANT represents that it has or wtll secure, at tts own expense, all
personnel reqmred to perform all the servmes required under thts Agreement Such
personnel shall not be employees or officers of, or have any contractual relattons vath the
OWNER CONSULTANT shall tnform the OWNER of any conflmt of tnterest or
potential conflict of interest that may arise dunng the term of thts Agreement
B All servmes reqmred hereunder wtll be performed by the CONSULTANT or under tts
supervision All personnel engaged ~n work shall be quahfied, and shall be authorized
and permitted under state and local laws to perform such services
ARTICLE XX
ASSIGNABILITY
The CONSULTANT shall not assign any tnterest tn thts Agreement, and shall not
transfer any ~ntarest m thxs Agreement (whether by assxgnment, novation, or otherwtse) wtthout
the prior written consent of the OWNER
ARTICLE XXI
MODIFICATION
No waiver or modification of thts Agreement or of any covenant, condttton, or hmttatton
here~n contmned shall be vahd unless m writing and duly executed by the party to be charged
therewtth, and no evidence of any waiver or modfficat~on shall be offered or recetved xn ewdence
in any proceeding anstng between the parties hereto out of or affecttng thts Agreement, or the
rights or 0bhgatlons of the part,es hereunder, and unless such watver or modfficat~on ts tn
wnttng and duly executed, and the parties further agree that the prowslons of thts section wall not
be watved unless as set forth here~n
ARTICLE XXII
MISCELLANEOUS
P~e8
A The following exhibits are attached to and made a part of th~s Agreement (hst exhibits)
B CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after
the final payment under th~s Agreement, have access to and the right to examine any
directly pertinent books, documents, papers, and records of the CONSULTANT
lnvolwng transactions relating to th~s Agreement CONSULTANT agrees that OWNER
shall have access during normal working hours to all necessary CONSULTANT fatalities
and shall be prowded adequate and appropriate working space ~n order to conduct audits
~n comphance w~th th~s section OWNER shall g~ve CONSULTANT reasonable advance
notice of ~ntended audits
C Venue of any suit or cause of action under th~s Agreement shall he exclusively ~n Denton
County, Texas This Agreement shall be construed in accordance w~th the laws of the
State of Texas
D For the purpose of th~s Agreement, the key persons who w~ll perform most of the work
hereunder shall be However, nothing here~n shall
hm~t CONSULTANT from using other quahfied and competent members of ~ts firm to
perform the servmes reqmred here~n
E CONSULTANT shall commence, carry on, and complete any and all projects with all
apphcable dispatch, ~n a sound, econommal, and efficient manner and in accordance with
the prows~ons hereof In accomplishing the projects, CONSULTANT shall take such
steps as are appropriate to ensure that the work involved ~s properly coordinated w~th
related work being carried on by the OWNER
F The OWNER shall assist the CONSULTANT by placing at the CONSULTANT's
d~sposal all available information pertinent to the ProJect, ~nclud~ng previous reports, any
other data relative to the ProJect, and arranging for the access thereto, and make all
provisions for the CONSULTANT to enter ~n or upon pubhc and prtvate property as
required for the CONSULTANT to perform servmes under th~s Agreement
G The captions of this Agreement are for ~nformatlonal purposes only, and shall not ~n any
way affect the substantive terms or conditions of this Agreement
IN WITNESS HEREOF, the C~ty of Denton, Texas has caused th~s Agreement to be
executed by its duly authorized City Manager, and CONSULTANT has executed this Agreement
through ~ts duly authorized undersigned officer on th~s the day of .,
20
CITY OF DENTON, TEXAS
Page 9
36
MICHAEL W JEZ, CITY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
CONSULTANT
WITNESS
BY
Page 10
~7
AGENDA INFORMATION SHEET ~,~'e. /~////0/.
AGENDA DATE: December 11, 2001
DEPARTMENT Utility Admlmstration
ACM: Howard Martin, 349-8232 ~
SUBJECT
Receive a report, hold a discussion and give staff direction concerning the development of
prorata fee charges for the installation of wastewater collection Infrastructure for City of Krum
and the Vintage Development.
BACKGROUND
The Public Utlhtles Board (PUB) and Water Utilities staff have been &scusslng the need for a
mechanism to recover installation costs associated with wastewater collection system infrastructure for
some time Recent amendments to Chapter 395 of the Texas Local Government Code prowde for a
prorata fee meehanmm for munlelpalmes to recover infrastructure costs
In September 1998, the City of Denton Implemented Phase I of the impact fees for the water and
wastewater utilities Phase I impact fees were established to recover capital expenditure by the city for
expansion/construction of water and wastewater treatment facilities, and elevated storage tanks and
pumping stations for water &stnbutlon Recovery of the city contnbnted capital towards overmzlng of
water/sewer lines and lift stations, construction of new water/sewer lines, and upslzlng of existing lines
to enhance existing eapamty were not included in the Phase I impact fees
Staff is presenting this item to &scuss the recovery of city-contributed capital for the wastewater
collection system Recovery of city expenditures for the water distribution system will be presented at
a later date Phase I impact fees were Implemented m advance of making substantial capital
expenditure for the expansion of the wastewater treatment facilities This prudent timing has allowed
the city to collect impact fees for a period of three years since 1998 for the wastewater plant expansion
With the construction of the treatment facilities under way, the cay now and in the near future needs to
make substantial investments m the wastewater collection system infrastructure to convey higher flows
resulting from growth in the city To recover this capital investment m the collection system, staff has
been reviewing available methods and their use by other entities
Chapter 395 of the Texas Local Government Code (Code) authorizes a city to adopt impact fees for the
purpose of financing capital improvements required by new development The Phase I impact fees
were Implemented under the authority of this Code For financing the treatment capacity expansion,
this Code is quite suitable for the following reasons
1 The treatment activity is limited to a confined area A development proposed anywhere in the
city will still convey flows to the treatment plant
Krum Vintage doc I
2 The future expansaon of the treatment capacaty as more easaly quantified Flow data for the
present and htstoncal condmons is avaalable, and vanous methods can be apphed to determine
future treatment capacaty needs and thereby the financing needs
3 Centralized treatment facflaty expansaon/constructaon costs can be equitably chstnbuted to all
new users that wall benefit from tins capatal project
The nuplementataon of mapact fees for wastewater collection system financing, however, this Code
presents some slgmficant challenges These are outlined below
1 Unhke the treatment faclhty, sewer lanes are not confined to a hrmted space A development
can be proposed anywhere m the c~ty
2 Tlns scenario can be repeated around the caty at various proposed developments
3 The collection of tmpact fees nnt~ally from these developments wall only pay a pomon of the
cap~tal expenditure reqmred to extend the sewer lines The c~ty wall have to fund the majority
share of the capital expenditure at the outset This may result in negaUve ~mpact on user rates
4 Ex,slang land apprmsals reflect current ut~hty lane extensaon pohcaes A pohcy stufl towards
c~ty extension of ut~htaes to new developments with end users paying only their share of ~mpact
fees encourages scattered development and does not encourage compact radaal growth pattems
Some entalaes have addressed some of the above challenges by estabhsbmg zones watlun the caty where
the caty would extend the sewer hnes Outsade tins zone/zones, the developer would extend sewer hnes
at thear cost The offs~te portaon of the sewer hne cost ~s then collected and reambursed to the developer
over a 10 or 20-year period based on the prorata agreement
The State of Texas has recently authorized collectaon ofprorata charges by the crees to recover capatal
expenchtures made by cat, es for the water/wastewater facflataes to accommodate growth (See Exhlbat I)
The nnplementataon ofth~s amendment to Chapter 395, Tex Loc Govt Code, opens up a s~gmficant
avenue to recover c~ty capatal expenditures Some of the benefits of accommodating growth m the c~ty
wath tins method are outhned below
I The C~ty of Denton currently prowdes for recovery of capatal expendature by developers for
offsate extensaon of sewer lines thru the prorata mechamsm (Chapter 34, Denton Code)
2 Staffhas experience m nnplementmg the prorata agreements
3 Unlike the nnp~a_c.[.fee ordinance, extensaon of sewer lines for a proposed development are the
responsabahty or'he developer per the prorata mechamsm If the c~ty chooses to oversaze the
proposed sewer hne, then based on amendments to the Code, the caty can now recover capatal
expenchture costs for the oversazmg
4 The caty has perpetual ttme to recover capnal expenditure costs
5 The developments can be proposed anywhere m the caty The eaty however ~s not obhgated to
extend the sewer lines to the proposed development It as a developer cost
6 The current C~ty of Denton prorata mechamsm wl~ch is based on property frontage on the
sewer 1me extension at Umes does not allow full recovery of the developer's cost There are
developments wlueh can access the sewer line that do not have development fronting the sewer
hne By amending Chapter 34, a more eqmtable prorata agreement can be ~mplemented
The Caty of Fort Worth went thru smular nnpact fee maplementauon as the C~ty of Denton Fort Worth
implemented the Phase I ~mpact fees for the treatment facahUes Now they are also m the stage of
maplementmg a mechamsm to recover capital expendrtares for wastewater enllecUon faclhtxes A copy
of the draft ordinance of the Caty of Fort Worth amending the prorata agreement as attached as Exlnbat
Knun Vintage doc
2
H Instead of using fi:ontage based prorata charges, Fort Worth ~s proposing charges based on acreage
developed The acreage of a contnbutmg sewer basra ~s easdy defined The cost of sewer line
extensmn ~s determined thru the b~d process Then tins cost along w~th engmeenng, easement
acqms~tmn, and constmctaon management costs can be distributed over the contributing acreage A
potontml drawback of acreage based prorata charges ~s the potentml use of land A large tract of land
could be used for purposes where very low wastewater flows are generated However, a large
apartment complex can contribute substantml wastewater flows from a small acreage Implementatmn
of the acreage based prorata charges however, ~s smaple
Another method that can be used to estabhsh prorata charges ~s capamty based A proposed
development tying to the sewer hne would be assessed prorata charges based on the capamty usage m
the sewer line Determination of capamty, however, ~s not an exact smence Tlus can sometimes result
m dasagreements Remew of prorata agreements adopted by other at, es mdmates that a variety of
methods may be used and some may be better stated for certain types of development scenarios than
others These methods include "latecomer reimbursement agreements", "delayed benefit charges"
based on zoning density and acreage, length of front footage per parcel, total number of lots, single
family eqmvalents etc Some crees have elected to use a flexible methodology that can be
incorporated into the developer's serwce agreement Ttus approach allows the city to evaluate and
determine the best method for any g~ven project and incorporate those terms and cond~taons m a
development service agreement Staff ~s currently evaluating these methods to determine what best
stats Denton's needs, and can be easily maplemented
Two projects winch reqmre mgmficant capital expendature by the c~ty to oversize sewer hnes are the
proposed Kmm Sewer Line and the Roark Branch Sewer Line projects (See Extub~ts Ili and IV) The
mty overmze partac~paUon costs are estmaated at $1,200,000 and $750,000 respectavely for the two
projects The Krum Sewer Line project was presented to the Cotmml m a Work Session on August 28,
2001 The Council directed the staff to negotiate the Wholesale Wastewater Trea~nent Servmes
Agreement w~th the C~ty of Krum Staff has worked w~th the C~ty of Krum and their engineer to
determine the proposed sewer ahgument, and project costs A financml analysm to determine the
feas~bthty was also conducted Exhibit I~ provides full detmls on the Krum project The Roark Branch
Sewer Line project wluch wall serve the Vintage development and the contnbutmg sewer basra was
presented to the PUB on November 12, 2001 (See Exhibit IV) PUB recommended approval to
construct the grav~zy sewer optaon in hen of the hf~ station proposed by the Vintage development The
prorata fee will allow ~ mty the mechamsm to recover wastewater collecUon costs and maxnmze
~nfrastructure develop~r~i at the lowest possible cost
OPTIONS
1 ?rowde d~rection to the staff to proceed on developing amendments to the Chapter 34 of the
Denton Code to implement adoption ofprorata charges to be collected by the C~ty of Denton
2 Prowde d~rection to the staff to proceed on developing mapact fee ordinance for wastewater
collection system
3 Do not adopt mapact fees for the wastewater collection system
4 Partimpate m the oversxze agreement for constmctaon of the Krum and Roark Branch Sewer
Line projects
Krum Vintage doc 3
RECOMMENDATION
Staff ~s presenting tins item for d~scusslon and d~rect~on from the council Based on the benefits and
snuphc~ty of nnplementatlon, staff recommends approval to proceed on Option 1 Staff also
recommends participation by the C~ty of Demon m thc I<nm~ and Roark Branch Sewer Line projects
prowdcd the c~ty adopts a funding mechamsm to recoup the mvesUnent m overs~zmg these sewer hnes
ATTAC~NTS
Exlub~t I Amendment to Chapter 395, Tex Loc Govt Code
Exhibit II City of Fort Worth Draft Prorata Amendments
Extub~t III C~ty of Krum PUB AgendaItem
Exlub~t IV Roark Branch PUB Agenda Item
Exlub~t V Draft minutes from the November 12, 2001 Pubhc Utflmes Board Meeting
Respectfully subnntted
J~m Coulter
D~rector Water Utilities
Prepared By
P S A.rora, P E
'* r
Assistant D~rector Watt. ate
Krum Vintage doc 4
2001 Impact Fee Legislation
Summary of Changes
Prepared by
Terry D Morgan
Morgan & McCool
As you know, the 2001 Le~slature passed some s~gmficant amendments to the State's
unpact fee law, T~x Loc Gov't Code ch 395 SB 243 modifies both standards and procedures
contained in ch. 395 It takes effect on September 1,2001 The major changes m the statute
can be summmzed as follows
A. Substantive Changes.
1 Roedwav Imf)act Fees SB 243 has made it easier to work vath roadway unpact
fees by allowmg cities to include local share costs for state and federal lughways See defuut~on
of"roadway fac&t~es" in new sec 395 001(8) In many cases, these costs are a slgndicant
component of the city's capital improvements plan, but could not be recovered under unpact fees
under the former law The bill expressly provides that costs can be included for "utihty relocation
and the estabhslunent of curbs, gutters, sidewalks, drainage appurtenances and rights-of-way
The b~li also changes the size ora senace area for roadways f~om 3 to 6 nules Further the
provision requmng that the s~ze ora roadway service area be measured by average trip length also
has been removed from the definition of"serwce area" See rewsed sec 395 001(9) Tlus means
fewer sermce districts overall and fewer arbitrary divisions of faclhues costs between adjoining
serwce areas- In many cases, the maximum impact fee per senaca umt vaned slgmflcantly
between adjacent serwce areas due to the mandatory 3-rm]e s~ze of the service area The
enlargement of the maximum serwce area for roadways also means that the "trip length"for an
average trip w~thln the sermce area in many cases also may increased for parUcular types of]and
uses, translating into higher maximum fees
Despite these positive changes in the manner in which roadway zmpact fees may be
calculated, the Le~a~ure did not "fix" problems with charging roadway impact fees in newly
annexed areas Thus the law still provides that such fees can oaly be charged inside city Imuts
The practical effect of this ]mutation is that the city cannot charge fees ration newly annexed
areas until the serwce area boundary is amended to include the new territory and an update of the
unpact fee study has been prepared to encompass thc additional terntory
2 Water and ~wer Line ExemouQ~ Cities did not have authority to charge "pro
rata" fees for city-constructed water and wastewater mares w~thout going through impact fee
procedures under the former law, although an exempuon was prowded for "pass-through"
charges where the cnty merely collected pro rata fees to pay back the initial developer who
constructed such lines See sec 395 001(4)(C) The exemption for line charges now has been
mended to city-constructed facilities The defimtlon of an impact fee now excludes "other pro
rata fees for reimbursement of water or sewer mains or lines extended by the poimcal
5
I~XHIBIT I
subd~,ison" Tho praot~cal re~t is that the City can recoup most hne costs vnthout
through unpaot fee procedures, thus malnng it more likely that such fac~hties wdi not be included
in futuro wator and wastowater capital improvements plans Tho amendment also allows
to "spht" or apportion the costs of water and wastewater capital improvements between those
subject to unpaot fees and those subject to pro rata fees The 50% credit limit does not apply to
unprovement costs recouped through pro rata fees
3 Serwce umts SB 243 adds to the deflmtion of"sennce umt' a reqmrement that
service umts,must be"based on lastoncal data and trends applicable to the pohtical snlxhv~sion m
winch the md~wdual unit of development is located dunng the pre~nous 10 years ' See revised sec
395 001(10) Tins could effect the manner in which water and wnstewater fees are calculated
4 Overall Lmutatlon on Amount of Fees One negative change in the law is that the
capital improvements plan for impact fees now must include a schedule that discounts from the
maximum feo calculation as a "credit" the amount ofutihty set-nee revenues or ad valorem taxes
that are allocated to capital improvements that to be included in the CIP See revised sec
395 014(7) Alternatively. the city can omit this schedule and simply deduct 50% from the
maximum impact fee that othervase could be charged /d SB 243 also amends sec 395 015,
makin8 clear that the credit ts to be subtracted from the maximum impact fee calculated from the
CIP Crees that don't want to bother vath the fiscal analysts required by the first alternative wdl
probably select the second Tlus vail make a difference m a minority of cities where fees actually
collected exoeed 50°,4 of the maximum rate In these municipalities, the fiscal analysis may be
worth the effort Most commumtles, however, do not exceed 50°,4 of the maximum fee per
service umt, and consequently vail not be adversely affected by the change in the law, at least not
in the foreseeable titure
There is one "sleeper" m th~s formula relating to computation of credits and off-sets for
developer-cunstmcted facilities Ch 395 prohibits char~ng impact fees for any capital
improvement that the city requires a developer to dedicate or construct Thus most cities pro,nde
credtts agmnat lmpact fees for the proport~o.a/ value of developer contnbutions That is. ifthe
amount actually charteiL, property owners is 25% of the maximum ,mpact fee per serwce unit,
then only 25% of the "value" of the improvement would be credited against payment of impact
fees for the development This prevents dilution of the ,mpact fee program through prov~sion of
excess credits
Under SB 243. however, the maximum fee per service unit is (unless a t~scal analysis is
done) 500,4 of*the City's actual implementation costs Under the example above, must the City
credit the developer for rift) cents on the dollar instead oftwenty-fve for construction of'
improvements, since percentage of the maximum fee being charged itself has been hrmted~
B. Procedural Changes
I Annual R. enortmR Reeulrement A new procedure that must be followed under
the modiaed statute is an annual written cemflcatlon to the Attorney General "verifying
compliance ~ith this chapter, not later than the last day of the fiscal year" ~e new sec
395 082 Tim certification must be s~gned by "the pre.dins officer of tho govermn8 body"
Fadure to subnut the certification exposes the city to a 10% c~wl penalty that goes to the "housing
trust fired" An insult from the homebuddmg industry, vath the uutlal period for reporting
commencing September 30, 2001
2 Time of Collect~on at Bmldm_~ Perrmt SB 243 lurers collection of impact fees to
the time of budding permit for land that is platted after the effecave date of the onguml bdl ~e
revised sec ,395 016(d) Ths is a change that vail affect many mumc~paktles that collect at least
a poraon of water and wastewater impact fees at the time of final plat recordauon, as is
authorized under the exmtJng law A qualification is that "water and wastewater capacity" is
avadable, if not, the procedures m sec 395 019 still prevml Outside city hrmts, collectmn must
be at the tmle of apphcatmn for cofmectioo to the water or wastewater system The change
should have little effect on ex~stmg practices for collection of roadway impact fees, where the
current custom Is to collect fees at the time ofbulldmg permit
3 Simplified Adootlon Procedure The former laws preoccupation vath procedures
has been lessened under SB 243 First, the two-step hearing process for uutial adoption of fees
has been changed from a heanng on land use assumptions, followed by a hearing on the capital
unprovements plan and impact fee to be imposed, to a combined heanng on land use assumptions
and the capital improvements plan, followed by a heanng on the imposition of the impact fee
See rewsed secs 395 04:2, 395 047 This change makes sense, since land use assumptions
seldom are the focus of controversy in the impact fee adoption procedure
The second sl~mficant change is that the notice requirements have been simplified A
single, 30-day notice now suffices The oppressive language of the former statute relating to size
of type and the section of the newspaper in wluch the notice may appear also has been removed
.gee eg' revised sec 395 044 The new prowsion aisc dispenses vath the publication cfa serwce
area map On an accelerated schedule, an impact fee could be adopted once the land use
assumptions and capital ~mprovements plan has been prepared w~thin about/50 days It should be
noted, however, that ~'~ ordinance adopting the land use assumptions and capital improvements
plan still carmot be adopted as an emergency measure, see sec 395 045, which may slow down
the process where multiple readings are necessary by charter
4 ~ SB 243 also extends the mandatory update period for
adopted impact fees from 3 to $ years See rewsed sec 395 052 It is questionable whether this
change automatically extends a scheduled update that falls after September 1, 2001 (the effective
date oftbe new law) Even if it does, this does not mean that cities may iguore the substantive
changes in the law until the next update is due Thus the time of collection of fees, the amount
of the fees charged and potentially the amount of credit given for developer-constructed
improvements should be conformed to the new law ai~er September l, 2001 by ordinance and
practices should be rewsed accordingly
77(R) SB 243 Enrolled version - F~scal Note
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, ?Tth Regular Session
Revision 1
May 4, 2001
TO Honorable Bill Ratllff, Lieutenant Governor, Senate
FROM John Keel, Director, Legislative Budget Board
IN RE SB243 by Harris (Relating to financing capital
improvements and facility expansions through the
assessment of impact fees, providing a civil penalty ),
As Passed 2nd House
**************************************************************************
* NO significant fiscal implication to the State is anticipated *
The bill would change the methodology for determining the maximum impact
fee a city could charge to include calculation of a credit or discount
Provisions of the bill would allow a political subdivision that lacks
authority to issue building per. its in the area where the l~pact fee
applies to collect the fees at the time an appl~catlon is f~led for an
lndlv~dual meter connection to the political subdlvlslon's water or
wastewater system
The bill would require a city to project the total amoLu~t of ad valorem
tax and utility service revenue that would be generated by new
development that would be used to pay for facll~tles contained ~n the
capital Improvements plan This amount would be subtracted from the
total projected cost of the capital improvements plan prior to
calculating the maxi~m fee Alternatively, the bill would permit a city
to reduce the total cost of the capital improvements plan by 50 percent
The bill would also amend public hearing and reporting requirements
The b~ll would take effect on September 1, 2001
Local Government Impact
NO significant fiscal Implication to units of local government is
ant lclpated
Source Agencles
LBB Staff JK, CL, DB
/wewtext cmdgLEG=77&SESS=R&CHAMBER=S&BILLTYPE=B&BILLSUFFIX=OO243&V7/23/O1 8
S B No 243
AN ACT
relating to financing capital nnprovements and facility expansions through the assessment of
impact fees, prowdmg a civil penalty
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
TEXAS
SECTION 1 Subdivisions (4), (8), (9), and (10), Section 395 001,
Local Government Code, are amended to read as follows
(4) "Impact fee" means a charge or assessment imposed by a
pohtmal subdivision agmnst new development in order to generate revenue for funding or
recouping the costs of capital improvements or facility expansions necessitated by and
attributable to tho new development The term includes amortized charges, lump-sum charges,
cagntal recovery fees, contributions in md of construction, and any other fee that functions as
described by tbas defimtlon The term does not include
(A) de&cation of land for public parks or payment
in lieu of the dedmat~on to serve park needs,
(B) dedmat~on of rights-of-way or easements or
construction or de&cat~on of on-site or off-site water dismbution, wastewater collection or
drainage faciht~es, or streets, s~dewalks, or curbs if the dedication or constmcnon is required by a
valid ordinance and Is necessitated by and atmbutable to the new development, [o~]
(C) lot or acreage fees to be placed in trust funds
for the purpose of reimbursing developers for oversizlng or constmcnng water or sewer mains or
9
lines, or
(D) othec ~ro rata fees for rexmbursement of water
or s~w~ mmns or hnes ~xt~d~ by ~ poht~c~ subd~wsmn
How~v~, ~ ~t~ mclud~ m ~e cap~t~ ~mp~v~ts pl~ may not
b~ r~mr~ to b~ eons~et~ oxc~t m aecor~e w~ Secaon 395 019(2), ~d ~ own~ may
not be ~mr~ to cons~ or d~cato faeflm~ ~d to pay ~mpa~ fees for those faefl~t~
(8) "Roadway facdm~s" m~s ~al or ~llector s~e~ or
roads ~at have b~n des~at~ on ~ o~c~ally adopt~ roMway pl~ of~e poht~cal
subd~ws~on, tog~ w~ ~1 necess~ app~en~ces ~e te~ ~ncludes the poht~cal
subd~s~on's shoe of costs for [~] roadwa~ ~d [~] ~socmt~
~mprov~ts d~at~ on ~ f~er~ or Tex~ h~way syst~, ~nclud~n~ local match~n~
~nds ~d costs relat~ to utfl~ hno r~loeatmn ~d the ~tabhs~t of curbs~
s~dewalks, drmna~e app~en~ces, ~d n~ts-of-way
(9) "S~ce ~ea" me~s ~e ~ea ~th~n ~e co.orate
boodles or ex.at--tonal ~nsd~etmn, as detained ~der Chapt~ 42, of the ~lmcal
subdxwsmn to be s~ed by the cap~t~ ~mprov~ents or facilities expansions speofied ~n the
eap~t~ ~mprov~ents pl~. exert to.way facHmes ~d sto~ wat~, drmnage, ~d flood
consol facflmes ~e s~ce ~ea, for the p~oses ofth~s chapter, may ~nclude all or p~ of~e
l~d w~t~n ~e ~lmcal subd~vtsmn or ~ts ex~atemtonal 3~s&ct~on, exc~t for roadway
facilities ~d sto~ wat~, d~mage, ~d flood consol facflmes For roadway facilities, the
s~ce ~ea ~s hm~t~ to ~ ~ea wnhm the co.orate bounces of the poht~cal subd~ws~on ~d
shall not exce~ sl~ t .......... ~ .............. ~ .... ~ .~..~
~] miles[ "'~'"~ ........... ~.
lO
.... r,. ............. t- ....... ~. ............ t-.-.-.] For storm water, drainage, and flood control
facilities, the service area may include all or part of the land w~thm the pohtical subdlwslon or Its
extraterritorial jurisdiction, but shall not exceed the area actually served by the storm water,
drainage, and flood control facilities designated in the capital Improvements plan and shall not
extend across watershed boundaries
(10) "Service unit" means a standardized measure of
consumption, use, generation, or discharge attributable to an individual unit of development
calculated in accordance with generally accepted eng~neenng or planning standards and based on
historical data and trends applicable to the political subdivision m which the individual unit of
develooment is located dunn~ the previous 10 years c
SECTION 2 Subsection (a), Section 395 014, Local Government
Code, is amended to read as follows
(a) The political subdivision shall use qualified professionals to
prepare the capital Improvements plan and to calculate the impact fee The capital improvements
plan must contain specific enumeration of the following aems
(1) a description of the existing capital improvements within
the service area and the costs to upgrade, update, improve, expand, or replace the ~mprovements
to meet existing needs and usage and stricter safety, efficiency, environmental, or regulatory
standards, which shall be prepared by a qualified professional engineer licensed to perform the
professional enganeenng services ~n this state,
(2) an analysis of the total capacity, the level of current
usage, and commitments for usage of capacity of the existing capital improvements, which shall
be prepared by a quahfied professional enloneer hcensed to perform the professional engmeenng
services In this state,
(3) a description of all or the parts of the capital
improvements or facility expansions and their costs necessitated by and attributable to new
development in the service area based on the approved land use assumptions, which shall be
prepared by a qualified professional engineer licensed to perform the professional engmeenng
sol'vices in this state,
(4) a definitive table establishing the specific level or
quantity of use, consumption, generation, or discharge of a service unit for each catego~ of
capital improvements or facility expansions and an equivalency or conversion table establishing
the ratio of a service unit to various types of land uses, including residential, commercial, and
mdusmal,
(5) the total number of projected service umts necessitated
by and attributable to new development within the service area based on the approved land use
assumptions and calculated in accordance with generally accepted engmeenng or planning
criteria, [and]
(6) the projected demand for capital improvements or facility
expansions required by new service units projected over a reasonable period of time, not to
exceed 10 years, and
(7~ a nlan for awarding
(A) a credit for the portion of ad valorem tax and
utility service revenues generated by new service units dunng the program period that is used for
the payment of lmnrovements, lncludm~ the navment of debt, that are included m the canltal
12
~m~rovements plan. or
(B~ m the alternative, a credit eaual to 50 percent of
the total pro~ected cost of lmplementm~ the camtal nnprovements plan
SECTION 3 Subsection (a), Section 395 015, Local Government
Code, is amended to read as follows
(a) The impact fee per service umt may not exceed the amount
determined by subtracting the amount in Section 395 014(a)(7) from [~:;':~:r.g,] the costs of the
capital improvements described by Section 395 014(a)(3) and dividing, that amount by the total
number ofpro.lected service umts described by Section 395 014(a)(5)
SECTION 4 Subsection (d), Section 395 016, Local Government
Code, is amended to read as follows
(d) Tlus subsection applies only to land platted in accordance with
Subehapter A, Chapter 212, or the subdiwsion or platting procedures of a political subdivision
after adoption of an impact fee adopted after June 20, 1987 The political subdivision shall
assess the impact fees before or at the time of recordation of a subdivision plat or other plat under
Subchapter A,'Chapter 212, or the subdivision or platting ordinance or procedures of any
polmeal subdivision in the official records of the county clerk of the county in which the tract is
located Except as provided by Section 395 019, if the political subdivision has water and
wastewater capac]W available
(1~ the pohtieal subdivision shall [may] collect the fees [at
~] at the time the political subdivision issues a [e::hcr ~c] building
permlt~
(2) for land platted outside the corporate boundaries of a
mumcmall[y, the mumc~pahtv shall collect the fees at the time an am>hcatmn for an individual
meter connection to the mumc~pahtv's water or wastewater system is filed, or
(3'~ a _oohtmal subdivision that lacks authont3' to issue
bmldmg oermlts m tile area where the tmoact fee applies shall collect the fees at the time an
application is filed for on individual meter connection to the political subdlvtsion's water or
wastewatex system a.~ ~.-..~,~ ~
SECTION 5 Subchapter C, Chapter 395, Local Government Code, is
amended by adding Section 395 0411 and amending Sections 395 042 through 395 045, 395 047,
395 049, 395 050, and 395 051 to read as follows
Sec 395 0411 CAPITAL IMPROVEMENTS PLAN The pohtmal
subdivision shall orowde for a capital lmorovements plan to be develooed by a_ualffied
professior~als using generally accepted en~mneenn~, and olannln~ ;~ractices in accordance vath
Sectmn 395.014
Sec 395 042 Hearing on Land Use Assumptions AND CAPITAL
IMPROVEMENTS PLAN To impose an impact fee, a pohtmal subdlwsion must adopt an
order, ordinance, or resolution astabhsbang a pubhc heanng date to consider th._~e land use
area [
assumptions and capital ~mprovaments plan for [w:._:..] the designated service ,u
Sec 395 043 INFORMATION ABOUT LAND USE
ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC On
or before the date of the first pubhcat~on of the not~ce of the heanng on th_~e land use assumptions
and capital ~mt~rovements ~lan. the pohtmal subdimsion shall make available to the public its
14
land use assumptions, the ttme penod of the project~ons, and a description of [
~ the capital ~mprovement facilities that may be proposed
Sec 395 044 Notxce of Heanng on Land Use Assumptions AND
CAPITAL IMPROVEMENTS PLAN (a) Before the 30th day before the date of the heanng on
the land use assumptmns and capital llllpmvements olan, the poht~cal subdiwsion shall send a
not, ce of the heanng by cerhfied mml to any person who has g~ven written not, ce by certified or
registered marl to the mumc~pal secretary or other designated officml of the poht~cal subd~ws~on
requesting notice of the heanng w~thm two years preceding the date of adoption of the order,
ordinance, or resolution se~ng the pubbc heanng
(b) The pohtlcal subdivision shall publish not~ce of the heann§ [cnce
...... ~. ~..u ..................... ~.. *u~ ~:..) .~) ........... ] b fo the 30th d y [bat-on-tn~
'.he ~'.h da;,'] before the date set for the heanng, m one or more newspapers of general c~rculat~on
~n each county in which the pohacal sub&wsmn hes However, a river authority that is
authonzed elsewhere by state law to charge fees that funehon as impact fees may pubhsh the
reqmred newspaper nottce only ~n each county in which the service area hes
(e) The not,ce must contain
(1) a headline to read as follows
15
"NOTICE OF PUBLIC HEARING ON LAND USE
ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN RELATING
TO POSSIBLE ADOPTION OF IMPACT FEES"
(2) the time, date, and location of the heanng,
(3) a statement that tho purpose of the heanng Is to consider
the land use assumptions and [~at '"" t~ ..... .~ ,~ ~.
.................. t- r.] capital improvements plan under
which an Impact fee may be imposed, and
[{-5-)] a statement that any member of the public has the nght
to appear at the heanng and present evidence for or against the land use assumptions and capital
improvements plan
Sec 395 045 Approval of Land Use Assumptions AND CAPITAL
IMPROVEMENTS PLAN REQUIRED (a) After the public heanng on the land use
assumptions and camtal improvements plan, the political subdivislon shall determine whether to
adopt or reJeCt'an ordinance, order, or resolution approving the land use assumptions and capital
improvements plan
(b) The political subdimsion, within 30 days after the date of the
public hearing, shall approve or disapprove the land use assumptmns and capital improvements
plan
(c) An ordinance, order, or resolution approwng th._xe land use
assumptmns and capital improvements plan may not be adopted as an emergency measure
Sec 395 047 HEARING ON [CA .......................
16
..... ] IMPACT FEE On ad0otlon of the land use assumot~ous and [ ..... v ............ ] capital
~mprovemants plan, the govermng body shalr adopt an order or resolution semng a pubhe heanng
to d~seuss the [mt~im~°J~ptm'~] Lmpos~tton of the impact fee The pubhe hearing must
be held by the govermng body of the pohtaeal sub&wston to d~scuss the proposed ordinance,
order, or resolut:on [.--.~v...-~ - v..v ..... v ........... v ......] ~mposmg an ~mpact fee
See 395 049 NOTICE OF HEARING ON [~
?..~.PP. OVE.M~.x~E PLaiN ?-x?2~] IMPACT FEE (a) Before the 30th day before the date of the
heanng on the trnpos~t~on of an [---v .... ....... "~ ......... v ........... '~ -~v ...... .... ~] tmpaet fee, the polmcal
subdtwslon shill sand a not~ee of the heanng by certified mall to any person who has gxven
written not~ce by certified or registered mall to the mumclpal secretary or other designated
offictal of the polmcal subd~vts~on requesting not,ce of the heanng w~tlun two years preeedmg
the date of adoption of the order or resolutton semng the pubhc heanng
(b) The pohtlcal subdtvlston shall pubhsh notxce of the heanng [c.r.~e.
...... t. e~. ,~. ........... · ......... ~.~ ,t.~ ~:~, ...... ,~ a~gv__-] before the 30th day ~"~ ..... a~
· &e. 6Q'.?. ~c.)'] before the date set for the hearing, tn one or more newspapers of ganeral c~rculat~on
tn each countyan wtuch the poht~cal subd~wmon hes However, a river anthonty that ~s
authorized elsewhere by state law to charge fees that functton as ~mpact fees may pubhsh the
[Tk ..........
reqmred newspaper not,ce only m each county tn whtch the servtce area hes ........ ~
(c) The notzee must co,taln the foliowm~
(1) a headline to read as follows
17
"NOTICE OF PUBLIC HEARING ON ADOPTION OF IMPACT FEES"
(2) the t~me, date, and location of the heanng,
(3) a statement that the purpose of the hearing ~s to consider
the adoptmn of an zmpact fee,
(4) [ ......' ..... ~ .... ~'" ..... ~'~
[{-5-)] the mount of the proposed zmpact fee per sermce mt,
and
(5) [{-6-)] a statement that any member of the pubhc has the
right to appear at the heanng and present ewdence for or agmnst the plan and proposed fee
Sec 395 050 ADVISORY COMMITTEE COMMENTS ON
~ ......... D] IMPACT FEES The advisory committee created
under Section 395 058 shall file ~ts written comments on the proposed ......
[~-t---- ;mFrz;'zr--znt:
. ......~ tmpact fees before the fii~h business day before the date of the pubhc heanng on the
zm~os~tton of the [7h:: u:~] fees
Sec 395 051 APPROVAL OF [
~] IMPACT FEE REQUIRED (a) The poht]cal subdivision, wzthm 30 days after the
...... ~ ....~. ............ eton and] ~mpact fee,
date of the pubh¢ heanng on the ]m~osmon of an [---v.~-. ' ...........
shall approve or d~sapprove the [-~r ..... ~c '~' ....... ~ ............. ~ ....
....... ~. ........ v ............ v ......] ~mpos~t~on of an
~mpact fee
(b) An ordmunce, order, or resolution approving the
.... v ............ v ......] ~mposmon of an ~mpact fee may not be adopted as an emergency
measBre
18
SECTION 6 Subsectton (a), Section 395 052, Local Government
Code, ts mended to read as follows
(a) A poht~cal subdw~slon imposing an tmpact fee shall update the
land use assumptions and capital ~mprovements plan at least every five [three] years The ~mtml
five-year [~..-'cz yc~.-] period begins on the day the capital ~mprovements plan ~s adopted
SECTION 7 Section 395 055, Local Government Code, is amended
to read as follows
Sec 395 055 Notme of Heanng on Amendments to Land Use
Assumptmns, Capital Improvements Plan, or Impact Fee (a) The notice and heanne orocedures
prescribed by Sect~0ns 395 044(a) and (b) apply to a heanng on the amendment of land use
assumptions, a capital improvements olan. or an impact fee
19
[(-o)] The notm¢ ofa heanng under thts section must eontmn the
following
(1) a headline to read as follows
"NOTICE OF PUBLIC HEARING ON AMENDMENT OF IMPACT FEES"
(2) the time, date, and location of the heanng,
(3) a statement that the purpose of the heanng is to consider
the amendment of land use assumptions and a capital improvements plan and the imposition of
an impact fee, and
[(-5-)] a statement that any member of the public has the right
to appear at the heanng and present evidence for or against the update
SECTION 8 Subchapter D, Chapter 395, Local Government Code, is
amended by adding Section 395 082 to read as follows
Sec 395 082 CERTIFICATION OF COMPLIANCE REQUIRED
(a) A pol!tlcal subdiv~sion that lmnoses an impact fee shall submit a written certification
venf~ng,compliance with this chanter to the attorney ~eneral each year not later than the last day
of the pohtmal sub&vision's fiscal year
Co) The certification must be sl~ned by the presiding officer of the
eovermng body of a l>olltlcal subdivision and include a statement that reads substantaall¥ similar
to the following "This statement certifies compliance with Chanter 395, Local Government
20
Code"
(c) A political subdivision that fmls to submit a certfficat~on as
required by th~s section is liable to the state for a ciwl penalty in an mount e~_ual to 10 ~-rcont of
the amount of tho lmpsct fees erroneously char~ed The attorney general shall collect the ciwl
penalty and denoslt the amount collected to the credit of thc housm~ txust fund
SECTION 9 Subsection (b), Section 395 025, and Secttons 395 046,
395 048, and 395 05t5, Local Government Code, are repealed
SECTION 10 This Act takes effect September 1, 2001
21
President of the Senate Speaker of the House
I hereby certify that S B No 243 passed the Senate on March 8, 2001,
by a wva-voce vote; and that the Senate concurred m House amendments on May 14, 2001, by a
wva-voce vote
Secretary of the Senate
I hereby certify that S B No 243 passed the House, with amendments,
on May 3, 2001, by a non-record vote
Chief Clerk of the House
Approved
Date
GovelIlor
22
FORTWORTH
October 23, 2001
C~ty of Denton
901 A Texas Street
Denton, Texas 76209
Attenbon Mr Dawd Hunter
RE Water and Waetewater Installation Pohcy
Dear Mr Hunter
Per your request, we are sending you the water and wastewater pohcy adapted
by the CRy of Fort Worth Please refer to front foot charge refunds on page II1-10
and front foot charge collection on page 111-14 Also, we are ~n process of
estabhsh~ng per acre charges so that Developer or C;ty can recover the cost of
samtary sewer hne We are sending you the" Draft "version as It has not been
approved by C~ty Council
If you need add~bonal ~nformat;on, please call me at (817) 871-8252
Xc file
WATER DEPARTMENT
ENGINEERING SERVICES
THE CITY OF FORT WORTH ~' 1000 THROCKMORTON STREET ~ FORT WORTH TEXAS 76102 2 3
(817) 871-8240 * F~ (817) 871-8195
EXHIBIT II O P..t.,~ ..... ¥cled paper
ORDnAnCE
AN ORDINANCE AMENDING CHAPTER 35, WATER AND
SEWERS, OF THE CODE OF THE CITY OF FORT WORTH (1986),
BY ADDING A DIVISION 3 TO ARTICLE III, PROVIDING FOR
DEFINITIONS, PROVIDING CRITERIA FOR PER ACRE CHARGES
FOR DEVELOPER INITIATED PROJECTS AND CITY INITIATED
PROJECTS, PROVIDING FOR THE CALCULATION OF A PER
ACRE CHARGE, PROVIDING FOR THE ASSESSMENT AND
PAYMENT OF A PER ACRE CHARGE, PROVIDING FOR REFUNDS
TO DEVELOPERS AND FOR THE ADMINISTRATION OF FINDS
COLLECTED FROM PER ACRE CHARGES, MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES,
REPEALING ALL ORDINANCES AND PROVISIONS OF THE FORT
WORTH CITY CODE IN CONFLICT HEREWITH, PROVIDING A
SAVINGS CLAUSE, PROVIDING A SEVERABILITY CLAUSE, AND
PROVIDING AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH
Section 1
Chapter 35, Water and Sewers, of the Code of the City of Fort Worth (1986) m
hereby amended by adding Division 3 to Article III, which shall be and read as follows
Sec Purpose
The purpose of this ordinance is to allow developers and the city to recoup some of the
costs mcurred that are associated wath the constmctmn of samtary sewer mare extensions
that meet the chtena contained hereto
Sec Defantmns
(a) "Approach sewer mare" shall mean a sewer mm constructed by a developer and
~s that pornon ora sewer mare from the connecuon an emstmg mare to the closest
outer perimeter of the proposed development
(b) "Trunk mare" shall mean a sewer mmn from point of connectton to the most
upstream I O00-aere sub-basins' outer perimeter
(c) "Lateral mare" shall mean a sewer mare from the most upstream lO00-acre sub-
basra to the outer perimeter of the proposed development
(4) "Sewer basra area" shall mean the acres within ~.e ~J.~"J~-t~d b~:n ~ea that ~e
+~ ~. ........ ,~ ......... ~. .... a natural drainage basra
24
(e) "Calculated sewer basin area" shall mean the acres vatlun a sewer basra area that
vail be subject to a per acre charge(s) The calculated basin area for the trunk
mann shall include the sewer sub-basins that are served by the capacity of the
mink mare, including sub-basins greater than I000 acres The calculated basin
area for the lateral mann shall include the sewer basins that are served by the
capacity of the lateral mare, excluchng sub-basins greater than 1000 acres
The calculated sewer basra area wall be determined using the natural basin area
bounded by emstang topograpbaes as shown on USGS maps Boundaries of the
area shall be provided by a metes and bounds description overland on a mty base
map The final calculated sewer basin area shall be subject to the review and
written approval by the clty
(f) "City anlaated sewer mare" shall mean any sewer mann constructed by the Olty
that is fifteen roches (15") or greater, regardless of the length of the pipe
constructed or the size of the sewer basra
(g) "Development cost - Developer nntaated project" shall mean the cost recurred by
the developer related to the consWactmn of an approach sewer mare based solely
on the cost of the constmctton contracts, reduced by the amount of any elt~
parhelpataon, awarded wathout regard to the final actual cost and may include the
cost of easement acqmsfaon and design, subject to mty written approval
Development cost excludes any developer recurred legal fees, real estate agent
fees, or condenmataon expenses mcurred m easement acqmmuon
(h) "Development cost - City matlated project" shall mean the cost recurred by the
city rdated to the constmctlon of a city matmted sewer mann based upon the cost
of the cons~ .tr~tlon contracts awarded wathout regard to the final actual cost, and
may include the reasonable cost of easement acqmsltlon, including costs and legal
fees associated w~th condemn~xon and daslgn
(1) "Other development" shall mean any property located wattnn the calculated basln
area that connects to an approach sewer mare constructed by a developer or a
sewer mare constructed by the city
(J) "Proposed development" shall mean property for wluch service is being requested
that reqmres the construction of an approach sewer mare The proposed
development must be delineated on a concept plan or a prelmamary plat 0f a
concept plan ~s not reqmred) that has been filed wath the mty's development
department
Sec Criteria for per acre charge sewer mares - Developer antlated project
25
For a per acre charge to be collected for an approach mmn constructed by a developer,
the approach sewer mare must
(a) Be a mlmmum of one (I) rmle m length,
(b) The proposed development to be served by the approach sewer mmn shall be less
than or equal to one-tlurd (1/3) of the calculated sewer basra area to be served by
the approach sewer mmn, and
(c) The sewer basra area to be served by the approach sewer mare shall be equal to or
greater than 1000 acres
(d) It is the developer's respons~bd~ty to prowde all necessary lnformatmn for a
determmatmn to be made ff a per acre charge ~s appropriate for any g~ven
construction project
Sec CalculaUon of the per acre charge
(a) In order for a per acre charge to be assessed, the mty counc~l must adopt an
orchnance for that purpose For approach mains constructed under a developer
~mtmted project, the per acre charge shall be calculated as follows
1 Development cost shall be determined consistent wath the reqmrements of
sec above
g, The developer m responsible for providing the calculated basin area,
together wxth any necessary extnb~ts as may be reasonably requested by
the mty An engineer hcensed to prasUce m the state of Texas shall
prepare the calculated basra area c,,~. h ...... ,e 1 nCla ............ h,,ll
net-b~-mol~ud~dma th,- ....... n ogth~s,w .......
3 The development cost ~S chv~ded by the calculated basin area expressed in
acres to deterrmne the per acre charge If the calculated sewer basra area
includes sub-basins greater than 1000 acres, the per acre charge can be a
--combmat;on of the trunk mare and lateral mare per acre charge The per
acre charge for the mink mare porUon xs equal to the trunk marn
dev~lD~ment cost dxwded by the calculated sewer basra area for the trunk
mare The per acre charge for the lateral mmn pomon is equal to the
lateral mare development cost davxded by the calculated sewer basra area
for the lateral mare Therefore, w~thm a calculated basra area, d~fferent
per acre charge may be apphes at d~fferent sub-basins
4 An ordinance wall be presented to the mty council to estabhsh the per acre
charge
(b) For sewer mares constructed as a city nuUated project, the per acre charge shall be
calculated as follows
1 Development cost shall be determined consistent wath the reqmrements of
sec above
25
2 The city's consultant engineer shall determine the calculated bastn area or
the maps of the USGS may be used
3 The development cost ~s divided by ~e calculated basin area expressed m
acres to deterrmne the per acre charge If the calculated sewer basin area
includes sub-basins greater than 1000 acres, the per acre charge can be a
combination of the tnmk mmn and lateral mann per acre charge The per
acre charge for the trunk mann portion is equal to the trunk mann
development cost d~,nded by the calculated sewer basin area for the trunk
mare The per acre charge for the lateral mann pomon is equal to the
lateral mmn development cost divided by the calculated sewer basin area
for the lateral mare Therefore, w~thm a calculated basin area, dxfferent
per acre charge may be apphes at different sub-basins
4 An ordinance w~ll be presented to the city council to establish the per acre
charge
Sec Assessment and payment of the per acre charge, refund to a developer,
adrmmstraUon
(a) The Water Department shall be responsible for the collection, refund, and
maintenance of per acre charges collected
(b) W~thont exclusion or reduction, a per acre charge shall be assessed each acre
w~thm the calculated sewer basra area served by a sewer approach mare or by a
sewer mare constructed under a city mmated project
(c) The payment of the per acre charge assessed hereunder shall be pand at the Ume
the final plat for the proposed development ts ready to be filed, but the plat shall
not be filed unUl the per acre charge has been pa~d
(d) For developer nuuated projects, the developer shall make a written request for
refund during each November following the start of a developer matlated project
Refund_s shall be collected for a period of 10 years No further refunds shall be
made following one year after the date that the lat per acre charge was collected
by the c~ty _ ~-~
(e) CollecUon of per acre charges shall cease when the developer has recovered its
development cost
(f) R~funds shall be paid to the developer dunng the month of December
following the November written requests for refunds
(g) There is no tune hnnt for the mty to recover its development cost for city nutlated
projects
Sec Adoption of Ordinance
The city council may adopt an ordinance assessing a per acre charge calculated m
accordance vnth tins Dlvlsmn IH to be assessed w~thm a basin area
SECTION 2
27
Tins ordinance shall be cumulatave of all prov~saons of or&nantes and of the
Code of the C~ty of Fort Worth, Texas (1986), as amended, except where the provasmns
of tlus ordinance are in darect conflmt wath the provas~ons of such ordinance and such
Code, ~n winch event conflmtang promslons of such ordanances and such Code are hereby
repealed.
SECTION 3
It is hereby declared to be the antentlon of the City Council that the sections,
paragraphs, sentences, clauses and phrases of tl'ns ordinance are severable, and, af any
phrase, clause, sentence, paragraph or section of tins ordanance shall be declared
unconst~tulaonal by the valid judgment or decree of any court of competent junsdmtmn,
such unconst~tutmnal~ty shall not affect any remmnmg phrases, clauses, sentences,
paragraphs and sectmns of tins ordinance, since the same would have been enacted by the
Caty Councal vathout the ancorporatlon m tins ordinance of any such unconst~tutmnal
phrase, clause, sentence, paragraph or sectton
SECTION 4
Tins ordinance shall take effect upon adoptaon
APPKOVED AS TO FORM AND LEGALITY
Assastant Caty Attorney
Adopted
Effectave:
28
PUBLIC UTILITIES BOARD AGENDA INFORMATION SHEET
AGENDA DATE December 10,2001
DEPARTMENT UUhty Admnustratlon
ACM' Howard Martin, 349-8232
SUBJECT:
Receive a report, hold discussion, and recommend approval of the proposed oversize sewer
main cost part~cipation concept with the City of Krum.
BACKGROUND:
The City of Krum has proposed to construct a sewer mare to bnng wastewater flows from Krum
to the City of Denton wastowater collection system The proposed sewer hne from Krum will
discharge into the Hickory Creek Interceptor sewer in the Denton collection system Staff
presented the lmtlal proposal from the City of Krum for wastewater service to the PUB on
August 20, 2001, and to the City Council on August 28, 2001 The PUB and the Council
authorized staff to proceed on negotmtlons with the City of Khan to develop a Wholesale
Wastewater Treatment Services Contract patterned on the recently executed contract with the
City of Argyle
With tlus authonzatlon, staff has worked with the City of Kmm, and their engineer to develop
the alignment and cost of the proposed sewer man The sewer alignment was developed based
on natural drainage patterns and proxlnuty to the major roads to provide maximum connectivity
within the sewer basin (See Exl'nblt I) Cost for the proposed sewer line is shown in Exlublt II
This proposed sewer ahgnment provides the best combination of cost and access to the service
area wltinn the sewer .b~m The total cost of the proposed oversized sewer line is estimated at
3 2 mllhon dollars This cost includes engmeenng, survey, easement, construction, and
construction management costs The oversized sewer line diameter vanes between 27-tach m the
downstream reach of the sewer basin to 2 l-tach m the upstream reach
Sewer line s~ze to serve the projected future population of 8,000 people m the City of Krum is
estimated at 15-tach diameter pipe Initially Krum is proposing to discharge about 50,000 gallons
per day average flow and 200,000 gallons per day peak flow ~nto thc Denton system Tlns
magmtude of flows can be accommodated with an 8-inch sewer hne The flows will increase to
an estnnated 450,000 to 550,000 gallons per day average dmly flow, and 1 8 to 2 20 rmlhon
gallons per day peak flow as the population grows to the projected 8,000 people The cost of the
15-tach sewer to serve tlus future population is estimated at 1 8 rmlhon dollars The City of
Kmm is proposing to contribute lmtlally 1 4 million dollars towards the construction of the
29
EXHIBIT III
project Krum has th~s money avmlable from the proceeds of the bond sate for ~mprovements to
the c~ty's wastewater collection system
A financml analysis of the proposed funding for the project and cost recovery was done by staff
rehouse The total project cost is estimated at 3 2 mdllon dollars Kmm ~mtaal contnbutmn will
be 1 4 m~lhon dollars City of Denton w~ll carry the $400,000 City of Krum cost thru the bond
sale m the spnng of Year 2002 Ttus $400,000 dollars and the ~nterest cost ofthts money w~ll be
recovered from Krum thru prorata cost of $305 that Krum wall charge for each new connection to
it's sewer system The $305 prorata cost to be prod back to Denton w~ll cover the $400,000 plus
the interest cost from the new cormect~ons to the Knm~ sewer system over the next 20 years The
financial analys~s conducted to determine the feas~bd~ty of the project and the funding approach
~s included m Extab~t III In adcht~on to the cost recovery of tlus investment ~n the Krum sewer
system, the oversize cost part~mpaUon of 1 4 mxlhon dollars by the C~ty of Denton in ~t's own
collection system is proposed to be recovered by estabhshmg prorata charges for sewer capamty
Staff m preparing the amendments to the ex~st~ng mty prorata ordinance These amendments ~f
approved by the mty council will allow the City of Denton to recover the investment mty makes
m overslzmg the sewer lines
OPTIONS:
1 Part~clpate m the oversize of the sewer mare and authorize wholesale wastewater
treatment service for the C~ty of Krum
2 Elect not to anthonze wholesale wastewater treatment service for the C~ty of Krum
RECOMMENDATIONS
Staff recommends approval of the sewer main oversize parhclpat~on and wholesale wastewater
treatment servme for the C~ty of Krum
PRIOR ACTION/REVIEW (Courted, Boards, Commissions)
PUB August 20, 20..0[ .- Authorized staff to negotiate wholesale wastewater treatment sermces
agreement w~th Krum
C~ty Council August 28, 2001 -Authonzed staff to negotiate wholesale wastewater sermces
agreement w~th Krum
FISCAL INFORMATION
The Pecan Creek Water Reclamatmn Plant Expansion project b~ds were received on October 30,
2001 The project construction budget was 19 5 mdhon dollars From the b~ds received ~t ~s
estanated there wall be sawngs of 1 3 m~lhon dollars from the budgeted amount In the FY2002
$200,000 is included for sewer mare oversize partm~patmn These momes along w~th the bond
sale m spnng 2002 can be used to fund the Krum sewer lme project
BID INFORMATION
30
None
MAP
See Bxh~b~t I
Resp¢¢tfnlly submitted
J~m Coulter
Dtrector, Water Ut~ht~es
Prepared by
P S Arora, P B
Assistant D~rector Wastewater
Exhab~tI Map
Extub~t II Cost Estimate
Exhibit III Financial Analys~s
PROPOSED KRUM
INTERCEPTOR
WA -~ inch equals 2,000 feet
Ci~. of Krum
Oversize Sewer Line Cost Estimate
Item Quant~ .ty Umt Cost Extended Cost
27" Pipe 10,184 LF $70 $712,880
24" Pipe 3,500 LF 65 227,500
21" Pipe 11,500 LF 60 690,000
5' Manhole 68 3,200 217,600
Hwy 380 Crossing 200 LF 500 100,000
Minor Road Crossings 300 LF LS 60,000
Wash Crossings 4 10,000 40,000
Land Restoration 1 LS 50,000
Easement Purchase 12 Acre 10,000 120,000
Easmt Doc Prep 15 3,500 52,500
Meter Station LS 12,000 12,000
Tie- In LS 5,000 5,000
Silt Fence LS 5,000 5,000
Trench Safety 25,184 LF 1 00 25,184
Rock Excavation LS 200,000 200,000
Sub Total $2,567,664
Contingency 10% 256,766
Eng, Survey, Cost Mgmt ~12% 338,932
Total $3,163,362
Exlh~b~t II
33
Krum Wastewater Line Project
(Coat Option # 2)
Capltsl Costs 2001
Cao~tal Assets Un~ta Quantiv Unit cost Cost
27" Gravity Sewefllne LF 24,000 $133 35 $3 200 000
Less Denton Share for Oversiz~ng ($1,400~000)
Total Krum Capitol Cost Financing (1) $1 800 000
Krum In~tial Bond Financing $1,400,000
Krum Alternative Cost Financing Required (2)
Krum Treatment Requirements/Connections
Monthly Wastswater Volu (Excludos I / I)
Infiltration/ Inflow (I/I) %~
Annual Volume Growth (~(Years I-5)
~ (Years 6-20)
(Includes I/I) Krum
Annual (Metem) Customer Monthly Dally
Year Gallons Trestpd Customers Growth Customer Vol Volume
2002 0 535 0
2003 32 850,000 678 143 4 040 90 000
2004 40,150,000 828 151 4,040 110 000
2005 47 450,000 979 151 4,040 130 000
2006 54,750,000 I 129 151 4,040 150,000
2007 62,050 000 I 280 151 4,040 170 000
2008 67 525,000 1,393 113 4 040 185 000
2009 73 000,000 1,506 113 4 040 200 000
2010 78,475,000 1 619 113 4,040 215,000
2011 83,950,000 1 732 113 4,040 230,000
2012 89 425,000 1 845 113 4 040 245 000
2013 94,900,000 1,958 113 4,040 260,000
2014 100,375,000 2,070 113 4,040 275,000
2015 105840,000 2,183 113 4,040 290,000
2015 111,325,000 2,296 113 4 040 305 000
2017 116,800,000 2409 113 4,040 320,000
2018 122 275,000 2 522 113 4,040 335,000
2019 127,750,000 2,635 113 4,040 350,000
2020 131,400,000 2 710 75 4 040 360 000
2021 131 400,000 . 2710 4,040 360,000
2022 131 400,000 2 710 4,040 360 000
2023 131 400,000 2 710 4,040 360 000
EXHIBIT III 3 4
SUMMARY OF REVENUES AND COSTS
Cost Option # 2
Denton Wholesale Rate 2Q02
Facility Charge / 30 Days $180 00 Based on Total System Cost ($2 0011000 gal)
Volume Charge / 1,000 $2 00
Denton's
Denton's ProJected O & M
Annual Projected and Capital Cost Net Pro Rata Fees Net
F~scal Year Gallons Revenue ExPense Incurred Revenue $305 RevlExp
2002 0 $0 $0 $0 00
2003 32,850,000 $66,357 $97 376 ($31,019) $43,615 $12 596
2004 40,150,000 $81 103 $112527 ($31,424) $46055 $14,631
2005 47,450,000 $95,849 $127 354 ($31 505) $46 055 $14 550
2006 54750000 $111,690 $142731 ($31041) $46,055 $15014
2007 62,050,000 $126,582 $158,259 ($31,677) $46,055 $14,378
2008 87 525 000 $137,751 $170,178 ($32,427) $34,465 $2 038
2009 73,000,000 $150,380 $182,213 ($31,833) $34,465 $2,632
2010 78,475 000 $161,659 $193 581 ($31 923) $34,465 $2 542
2011 83,950 000 $172,937 $205 792 ($32,855) $34,465 $1,610
2012 89 425,000 $186,004 $218 121 ($32 117) $34 465 $2,348
2013 94900,000 $197,392 $230569 ($33 177) $34,465 $1,288
2014 100,375,000 $208,780 $243,137 ($34,357) $34,465 $108
2015 105,850,000 $222,285 $255,826 ($33,541) $34,465 $924
2016 111,325,000 $233,783 $267523 ($33740) $34,465 $725
2017 116,800,000 $245,280 $280,395 ($35,115) $34,465 ($650)
2018 122,275,000 $259,223 $292 167 ($32,944) $34 465 $1 521
2019 127,750,000 $270,830 $305,224 ($34,394) $34,465 $71
2020 131,400,000 $278,568 $313,155 ($34,587) $22,875 ($11,712)
2021 131,400,000 $281,196 $314 565 ($33 369) $0 ($33,369)
2022 131,400,000 $281,196 $315 983 ($34 787) $0 ($34 787)
2023 131,400 000 $283,824 $286 389 ($2 565) $0 ($2 565)
35
Krum Wastewater Line Project
(Cost Option # 1)
Capital Costs 2001
Cao~tal Assets Ur}itS Quarltiy Unit c~st Cost
1 27" Grawty Sewerllne LF 24,100 $141 00 $3,400 000
2 Less Denton Share for Ovem~zlng ($1~400~000)
3 Total KrumCapital Cost Financing (1) $2~000000
4 Krum Initial Bond Financing $%400r000
5 Krum Altarnatlve Cost Financing Required (2)
Krum Treatment Requirements/Connections
Monthly Wastewatsr Volume/Customer ~ (Excludes I/I)
Infiltrahon / Inflow (I / I) % ~
Annual Volume Growth (GPD) ~(Yeare 1-5)
~ (Years 6-20)
(Includes I/I) Krum
Annual (Meters) Customer Monthly Daily
Year Gallons Treated Customers Growth ust0mer Vol Volume
2002 0 535 0
2003 32,850,000 678 143 4 040 90,000
2004 40,150,000 828 151 4040 110000
2005 47,450,000 979 151 4 040 130,000
2006 54,750,000 1,129 151 4,040 150000
2007 62,050,000 1,280 151 4,040 170000
2008 67,525,000 1,393 113 4040 185000
2009 73,000,000 1,506 113 4,040 200 000
2010 78,475,000 1 619 113 4040 215,000
2011 83,950 000 1 732 113 4 040 230 000
2012 89,425,000 1,845 113 4,040 245 000
2013 94,900,000 1,958 113 4,040 260,000
2014 100,375,000 2,070 113 4,040 275000
2016 105,850,000 2 183 113 4 040 290 000
2016 111 325000 2296 113 4040 305,000
2017 116,800,000 2,409 113 4040 320,000
2018 122,275,000 2 522 113 4 040 335,000
2019 127,750,000 2 635 113 4 040 350 000
2020 131,400,000 2 710 75 4 040 360 000
2021 131 400 000 2 710 4 040 360,000
2022 131,400,000 2,710 4 040 360 000
2023 131,400,000 2,710 4,040 360000
36
Cost Option # 1
Denton Wholesale Rate 2002
Fac~hty Charge / 30 Days $180 00 Based on Total System Cost ($2 00/'1000 gal)
Volume Charge / 1,000 $2 00
Denton's
Denton's Projected O & M
Annual Projected and Capital Cost Net Pm Rata Fees Net
Frscal Year Gallons Revenue ExPense Incurred Revenue $450 Rev/Exp
2002 0 $0 $0 $0 00
2003 32,850,000 $66,357 $112,885 ($46,528) $64,350 $17,822
2004 40,150,000 $81,103 $128,037 ($46,934) $67,950 $21,016
2005 47,450,000 $95,849 $142,863 ($47 014) $67 950 $20,936
2006 54,750,000 $111,690 $158 240 ($46,550) $67,950 $21,400
2007 62,050,000 $126,582 $173 768 ($47,186) $67,950 $20,764
2008 67,525,000 $137,751 $185 687 ($47,936) $50,850 $2,914
2009 73,000,000 $150,380 $197,723 ($47,343) $50,850 $3,507
2010 78,475,000 $161,659 $209,090 ($47,432) $50,850 $3,418
2011 83,950,000 $172,937 $221,301 ($48,364) $50,850 $2,486
2012 89,425,000 $186,004 $233,631 ($47 627) $50 850 $3,223
2013 94,900,000 $197,392 $246,079 ($48,687) $50,850 $2,163
2014 100,375,000 $208,780 $258,646 ($49,866) $50 850 $984
2015 105,850,000 $222,285 $271,335 ($49,050) $50 850 $1,800
2016 111,325,000 $233,783 $283,032 ($49,249) $50,850 $1,601
2017 116,800,000 $245,280 $295,904 ($50,624) $50,850 $226
2018 122 275,000 $259,223 $307 676 ($48,453) $50,850 $2 397
2019 127,750,000 $270,830 $320 733 ($49,903) $50,850 $947
2020 131,400,000 $278,568 $328,664 ($50,096) $33,750 ($16,346)
2021 131,400,000 $281,196 $330,075 ($48,879) $0 ($48879)
2022 131,400,000 $281,196 $331,492 ($50,296) $0 ($50,296)
2023 131,400,000 $283,824 $286,389 ($2,565) $0 ($2 565)
Note Assumes costs and rates escalate over time
37
PUB AGENDA ITEM #12
PUBLIC UTILITIES BOARD AGENDA INFORMATION SgI'~ET
AGENDA DATE November 12, 2001
DE?ARTM~NT Ut~hty Admm~trat~on
ACM. Howard Martin, 349-8232 ~
SUBJECT.
Receive a report and hold a discussion to provide staff dwect~on on proposed and future
sewer service for the Roark Branch Sewershed.
BACKGROUND:
Vaatage Development Corporataon (Developer) is develepaag the Vaatage Subchvason between
IH-35W and Bonme Brae Street aa southwest Denton (See Exhibit I) To serve the southern half
of the proposed development the Developer as preposmg a hft stataon to hft flows aato the
I-hckory Creek Interceptor sewer (See Exhibit Il) The lift staon v~ll serve the Vantage Phases
3, 4, 5, 6, proposed commercial area w~th,. Vaatage, the proposed school, and the multafam~ly
umts The capacity of the proposed h_~ stataon ~s 1 Malhon Gallons per Day (MGD) to serve t/us
part of the Vintage subchvason
The City of Denton sewer master plan shows a aaterceptor sewer wall be needed to serve the
Roark Branch Sewershed. Thas sewer will chscharge aato the I-heko~ Creek Inte~eptor sewer
about 6800 feet downstream of the chseharge from the proposed Vintage hit staUon Construetaon
of thas sewer [me m heu of the Vaatage ht station w~ll help preserve the capacity of the I-hcko~y
Creek Interceptor upstream of the Roark Branch upto the proposed Vintage hff staUon chseharge
into the Hackory Creek Interceptor Staff has evaluated the opUon of par~e~patmg aa the
constructton of the Roark Branch Interceptor m lieu of the Vaatage hft staUon Three optaons
were evaluated and costs were developed fox each These opttons are as follows
O~Uon 1 Construct Roark Branch Interceptor
The total sewershed area of Roark Branch exclud, ng the Robson Ranch porUon ~s 6 5 Square
rmles W~th the slopes ava~lshle, a 36 aach daameter pipe will be needed aa the downstream
portaon of the sewershed to convey approxamately 182 MGD peak flow for the ulnmate
development condttaon of the sewershed Froaa the Ue m wath the Hackory Creek Interceptor to
Vaatage subchv~son the total length of the 36 aach sewer ~s appro×~mately 5,396 feet (See Exhtblt
II) Cost esumate for ttns opUon is about 1 nulhon dollars (See Exhibit
38
EXHIBIT IV
For the Year 2020 conditions the sewer master plan shows a sewer slz¢ of 21 tach, compared
with the 36 tach needed for the ultmaate development of the sewershed If a 21 tach sewer lane
was built at tins time, then beyond the Year 2020 conchtlons a parallel 30 tach line vail be
needed to match the capacity of a 36 tach sewer lane The cost for the 21 tach sewer is estimated
at $736,000 The cost of the parallel 30 tach line at Year 2001 dollars is estimated at $850,000
If the cxty exerexses the option to bmld the sewer line aa heu of the Vintage hit stataon, the
developer will contribute $ 262,244 winch ~s the cost of constructing the lift staiaon option
Therefore, the net cost to the c~ty to bmld the ultmaate development condmon sewerlme is
approxmaately $ 750,000
Option 2 Construct Vintage Life Station
The hit station to serve only the Vintage subchvlson w~ll have a capacxty of 1 MGD The cost of
tins hit station system is estnnated at $ 262,244 (See Exinblt IV) Saace tins hil station vail
chscharge into the Hickory Creek Interceptor upstream of the Roark Branch Interceptor, c~ty will
have to spend adchtional momes to ups~ze the Hickory Creek Interceptor The master plan shows
the Year 2020 conchtion s~ze of the Hickory Creek Interceptor at 36 tach The addmonal cost of
ups~zaag 6800 feet of 36 tach sewer to 42 tach xs estmaated at $ 400,000 In axldmon to thas cost,
the electnctty and O&M costs for the hft station for 20 year penod are estxmated at $121,000
Beyond 20 years new pumps and other equipment that would need replacement is estmaated to
cost between $ 30,000 to $ 40,000 m Year 2001 dollars The cost to the city over a 50 year
period vail be approxmaately $ 775,000 However, there is still no sewer line avaalable to serve
the Roark Branch Sewershed except for the Vintage subchwson
Optxon 3 Oversize Vintage Lift Staiaon
The proposed Vintage lift station could be oversized to serve the enttre Roark Branch
Sewershed The projected peak flows are 18 2 MGD The construction cost of tlns hit station aa
Year 2001 dollars is estimated at $2 4 milhon The Hickory Creek Interceptor upstream of the
Roark Branch vail need to be ups~zed The adchtional costs over 50 year time would be
electnc~ty, O&M and equipment replacement costs The costs are very Ingh compared to
constructing the..ultlmate concht~on Roark Branch Interceptor So further cost development of
this optxon was not pursued
Oplaon 1 capxtal cost is $750,000, and xt will serve the entare sewershed for the ulttmate
development conchtion for a 50 year hfe of the sewer line Option 2 nntml cost is $400,000, and
$775,000 over 50 year penod However, w~th Opuon 2 there is no sewer line to serve the
remaining sewershed. Option 3 costs will exceed well above $ 3 rmlhon over 50 year penod
The Pecan Creek Water Keclamation Plant was bxd on October 30 The constructuon budget for
the plant is $19 1 nnlhon Wxth the bxds recetved xt is estimated we vail save $1 3 rmlhon fzom
the budgeted amount These momes can be used for the Roark Branch Interceptor, and also the
Krum sewer line oversize particxpation winch is under chscuss~on vath the City of Krum
39
OPTIONS.
1 Allow the Developer to bmld the hf~ station to serve V~ntage subdamson only
2 Construct the Roa~k Bnmch Interceptor to fac~htate growth m the Roark Branch
sewersb, ect
RECOMMENDATIONS
Based on the cost analysis, and for promdmg sewer serwce m the Roark Branch Sewershed,
Staff recommends construeUon of the Roark Branch interceptor Long term benefits financially,
and the economic development with nnplementaUon of fins opUon far exceed the benefits of
opUon 1
PRIOR ACTION/REVIEW (Council, Boards. Commassmns):
None
ESTIMATED SC~DULE OF PROJECT.
On approval fi:om the PUB and the C~ty Council the project ~s estmaated to be complete by
August 2002
FISCAL I/gFORMATION'
Savings fi:om the Pecan Creek Water Reclamalaon Plant consla'uctlon project can be used to fund
tins project
MAP
See Exlnblt I
Respectfully subnntted
Jan Coulter
D~rector Water Ut~ht~es
4O
Prepared by
P S Arora, P E
Assistant D~rcctor Wastewater
Extnblt I Map
Extnb~t 12I Map of 3 op'aons
Extnblt 1II Cost Estunate 36 tach sewer constructmn
Exhtblt IV Cost estnnate 1 MGD Lffi Sta'aon System
41
VINTAGE DEVELOPMENT
VfN~TA GE fDEVEL OPMENT
sc~o~.
CITY OF DENTON I EXHIBIT I
WA TER UTILITY + llnchequalsl,0OOf4ee2t
VINTAGE DEVELOPMENT
PROPOSED SEWER LINES
~ PROPOSED
/ ~ / ~ FORCE MAIN
/ ~ / OPTION 2
~ , /PROPOSED VINTAGE
> I ~LIFT STATION
/ OPTION 1
/ ROARK BRANCH ~/~ HICKORY CREEK ~
, INTERCEPTOR ,/ iNTERCEPTOR 27'
CITY C'F DENTO~t EXHIBIT Iii
WAT~IRUTILIT ~ llnchequalsl,000f~e~
'~ ~oooooooo~ ~
0 0 0 0 O0 0 ~0 ~ ~ ~
oooooo~o~o ~
om
~ZZ
44
Preliminary Off-site Sewer for Roark Branch
Lift Station
Item Descnpt~on Unit Qnty Unit Cost Total Cost
1 Equipment Costs - ra~ls, control panel, etc LS 1 $ 25,471 00 $ 25,471 00
2 Pump Costs EA 2 $ 10,000 00 $ 20,000 00
3 Wet Well Construction EA 1 $ 30,000 00 $ 30,000 00
4 Valve Vault Construction EA 1 $ 8,000 00 $ 8,000 00
5 Metenng Manhole Construction EA 1 $ 3,000 00 $ 3,000 00
6 Electrical Costs LS 1 $ 64,529 00 $ 64,529 00
7 SCADA System Costs LS 1 $ 30,000 00 $ 30,000 00
8 Fencing and Site Grading LS 1 $ 15,000 00 $ 15,000 00
9 Bonds LS 1 $ 5,000 00 $ 5,000 00
$ 201,000 00
Force Main
1 8" Force Main LF 1,930 $ 1600 $ 30,880 00
2 8" Check Valve & Box EA 1 $ 500 00 $ 500 00
3 2" Air Release Valve & Box EA 1 $ 800 00 $ 800 00
4 DI F~ttmgs TN 0225 $ 2,20000 $ 49500
5 Trench Safety LF 1,930 $ 2 00 $ 3,860 00
$ 36,535 00
Gravity Sanitary Sewer (out of Subdivision) ~
1 12" Sanitary Sewer Line (incl Trench depth) LF 456 $ 28 50 $ 12,084 00
2 4' D~a M H (incl extra depth) EA 2 $ 1,850 00 $ 3,700 00
$ 15,784 00
Oversize - Gravity Sanitary Sewer (In Subdivision)
1 12" Samtary Sewer L~ne (mci Trench depth) LF 1785 $ 28 50 $ 47,302 50
1 8" Samtary Sewer Line (incl Trench depth) LF 1785 $ 2'1 50 $ 38,377 50
$ 8,925 00
Summary - -"
South Residential Developer Costs
1 L~ff Station $ 201,000 00
2 Fome Main $ 36,535 00
3 Grawty Line - out of subdiws~on $ 15,784 00
4 Gravity L~ne - through subdlwslon $ 8,925 00
Developer Total $ 262,244 00
Prepared by
ClvllGrrt Engineering, Inc Page 4 of 4 11/5/01
1 DRAFT
2
3 PUBLIC UTILITIES BOARD MEETING MINUTES
4 November 12, 2001
5
6 After deterrmnmg that a quorum of the Public Utilities Board of the City of Denton, Texas was
7 present, the Public Utilities Board convened mto an Open Meeting on Monday, November 12,
8 2001 at 9.02 a m m the Servaee Center Trmmng Room, City of Denton Servme Center, 901-A
9 Texas Street, Denton, Texas
10
11 PRESENT: Dick Norton, George Hoplans, Dick Smith, J~m Wilson, and Don White
12
13 EX OFFICIO MEMBERS
14 Howard Martin, ACM/Utilities
15
16 EXCUSED: Charldean Newell
17 Bill Cheek
18
19 ITEMS FOR INDIVIDUAL CONSIDERATION
20
21 12) Receive a report and hold a discussion to provide Staff with direction on proposed and
22 future sewer service of the Roark Branch Sewer shed
23
24 Arora, also presented tins ~tem He explmned that Vintage Development Corporation is
25 developing the Vintage Subdivision between IH-35W and Bonme Brae Street m southwest
26 Denton To serve the southern half of the proposed development the Developer ~s proposing a
27 hft station to lift flows rote the Hickory Creek Interceptor The hft station will serve the Vintage
28 Phases 3, 4, 5, and 6, proposed commercial area wlthan V~ntage, the proposed school, and the
29 mult~famfly umts The capacity of the proposed lift station is 1 nulhon gallons per day (MGD)
30 to serve ttus part of the Vintage subdavlslon
31
32 Arora reported that the City of Denton sewer master plan shows an mterceptor sewer will be
33 needed to serve the Roark Branch Sewer shed T~s sewer will dascharge mto the Hickory Creek
34 Interceptor sewer about 6800 feet downstream of the discharge fi.om the proposed Vintage lift
35 station Constructaon of this sewer line m lieu of the Vantage lift station will help preserve the
36 capamty of the Hlek6~y Creek interceptor upstream of the Roark Branch up to the proposed
37 Vintage hft station chscharge rote the Hickory Creek Interceptor
38
39 The Board considered three options
40 1 Construct Roark Branch Interceptor
41 2 Construct Vintage Lffi Station
42 3 Oversize Vintage Lift Station
43
44 The Board expressed apprehension that the 21" gravity lme was not large enough to
45 accommodate future development along the route, and lengthy chscusslon followed The Board
46 also mentioned present econormc conchlaons and raised concern regarding improvements at C~ty
47 expense without current demand to justify the cost of installation
48
EXHIBIT V
46
1
2 Discussion then turned to the methodology of the pro rata cost recovery system Concerns were
3 rtused that the mapaet fee Is already sizeable and the owner will also face ~ncreased taxatxon
4
5 Hopkins made a motion to approve construction of the Roark Branch Interceptor w~th an
6 oversized 36" hne needed for the ultimate development of the sewer shed Wlute seconded
7 Motion was approved unammously
8
9
10
11
12
13
14
15
16
17
18
19
2O
21
22
23
24
25
26
27
28
EXHIBIT V
47
AGENDA INFORMATION SHEET
AGENDA DATE December 11, 2001
DEPARTMENT. General Government
CM/DCM/ACM Betty Wdhams, D~rector of Management & Pubhc Information
Mtke Conduff, Ctty Manager
SUBJECT.
Receive a report, and hold a d~scuss~on regarding the C~ty of Denton Cable Telewslon Franchise
Renewal wtth Charter Commumcatxons
BACKGROUND:
Our Current Cable Telews~on Franchxse Agreement w~th Charter Commumcatlons (Charter)
expires on November 15, 2003 The current 15-year franchise was ~mtlally granted to Sammons
Commumcat~ons on November 15, 1988, wxth the passage of ordinance #88-189 The franchise
was transferred to Marcus Cable Assomates ~n November 1995 (ordinance#95-191), and
transferred agmn to Charter Commumcattons ~n March 1999 (ordinance #99-094) The cable
telewsmn franchise ts regulated by the Denton Cable Telewslon Ordinance 88-182 (Chapter 8 of
the Code of Ordinances), the agreements stgned by all three cable operators over the years, and
by the Federal Cable Act
The procedures to follow for the renewal ora cable telewslon franchise are found ~n Section 8-57
of the Denton Cable Televmton Ordmance and xn the Umted States Cable Act There are two
processes that can be followed, formal and informal, in negotiating a franchtse renewal The
formal process has protections for both the C~ty and the cable operator The informal process
allows for more flex~bthty and ts the way most francbses are renewed Both processes can
occur concurrently
Charter submitted to the C~ty the required written notice on December 21, 2000, requesting the
commencement of the renewal process Th~s reqmres the Ctty to beg~n the future cable-related
commumty needs assessment, conduct a review of Charter's past performance, and make a
determination of Charter's financml, legal and techmcal capabd~t~es to meet our future needs
The Ctty then submtts a proposal, based on its findings, to Charter to beg~n negotiations
Dunng th~s franchise renewal, the C~ty has an enormous opportunity to make certmn gmns that
can advance the quahty of hfe tn th~s commumty Among other th~ngs, our new franchise
agreement can reqmre Charter to do the following
Enhance its pubbc communications ~nfrastructure
· Upgrade ~ts cable system
Improve the quahty of cable servme and customer service
Page I of 3
Cable Telews~on Franchise Renewal
· Contribute to the facthtles and eqmpment of local programming
· Ensure that construction of the cable system proceeds in an orderly fashion
Implement a subscriber fee that can be used for support of Public, Education, or
Government access channels
These benefits have been obtained ~n many communities without significantly increasing rates to
subscribers However, these requirements stand a better chance of becoming part of the new
cable franchise agreement ~f a thorough needs ascertmnment is conducted, and an effective team
is formed to negotmte w~th Charter It ~s for these reasons that the City must seriously consider
the professional assistance of consultants and attorneys to assist staff in this renewal process
The first stage of th~s renewal process requires the City to conduct one or more proceedings in
order to assess and identify the future cable-related community needs and interests of the
community, and to review the performance of Charter dunng the current franchise term The
City has s~x months to beg~n tbas assessment process and the duration of this can be as long as
needed w~thm the expirat~on date of the current franchise agreement The ascertmnment of the
community needs can be accomphshed through a variety of tools, including public heanngs,
surveys, focus groups, interviews, and reports and audits of the Charter's past performance
This process can be quite complex and will involve many stakeholders In order to conduct a
thorough determination of future cable-related commumty needs, a Cable Task Force will be
created Various stakeholders such as the Umvers~ty of North Texas, Texas Women's
University, Denton Independent School District, Denton County and others will be part of the
task force The task force will seek input from the community through the use of appropriate
methods such as public heanngs, surveys, focus groups, and interviews The formation of this
task force will be announced at a pubhc heanng in January 2002 There will also be an on-going
campmgn to sohmt input from the community through the use of our webslte, Channel 26, and
the media
An experienced telecommunmatlons consultant w~ll be contracted to assist staff and the task
force with, the first stage of the renewal process A telecommumcatlons law firm will also be
contracted, to assist staff with the formulation of a new cable franchise proposal and with the
negotmtion of the new franchise agreement with Charter
For planning purposes, the most hkely scenario is that the City and Charter will undertake good-
faith negotmt~ons using the mformal renewal process Based on that assumption, I have
developed a proposed schedule that should allow us time to complete the needs assessment
phase, revise our cable regulatory ordinance, write a new proposal, and conclude negot~ations by
Aug 2003 The proposed schedule promdes sufficient time to undertake and complete all
renewal-related servmes while leawng us adequate time to complete any formal renewal
proceedings before the franchise expires, should informal negotiations prove unsuccessful
Dec 2001 Contract with professionals to assist the City in the renewal process
Jan 2002 Hold public heanng and form the cable task force
Page 2 of 3
Cable Telews~on Franchise Renewal
Feb -June 2002 Carry out performance rewew and cable related needs assessment, Form
city staff committee to determine City needs, Seek ~nput from public
July-Sept 2002 Develop new franchise agreement and cable ordinance, Develop a strategy
to conduct renewal negotiations, Submit proposal to Charter
Oct 2002.May 2003 Conduct renewal negotlat~ons with Charter
June-July 2003 Hold public heanng on proposed cable ordinance and franchise agreement
Aug 2003 City approves cable ordinance and proposed franchise agreement
PRIOR ACTION/REVIEW (Council, Boards, Commission)'
None
FISCAL INFORMATION'
The exact cost for contracting with professional telecommumcat~on firms is difficult to
determine until a decision is made on the methods that will be used to ascertain the community's
future cable related needs From the proposals submitted, I anticipate the costs for these
professional services to be approximately $51,000-$71,000 While the use of outside
professionals means the City will recur expenses that are not required to be remabursed by
Charter, the benefits ginned from their knowledge and experience will far exceed the costs Bear
in mind that the final negotiated document will probably be used for the next ten (10) to 15
(fifteen) years, and can contmn financml contributions from Charter to elevate the quality of
local cable programming
Currently Charter pays the C~ty a quarterly 5% franchise fee on all gross revenues
Respectfully submitted
Betty Wflh~tms/ - t~ )
Director of Mahagement and Public Information
Prepared by A ex
]~ ~abrales Jr-
P~c Information Officer
Page 3 of 3
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