Loading...
HomeMy WebLinkAboutJune 12, 2001 Agenda ^genda No AGENDA A0enda Item. .- _ . . CItY OF DENTON CItY COUNCIL 0ate June 12, 2001 -- The City ~ .2ounell of the City of Denton, Texas will observe a demonstration of decibel levels on Tuesday, June 12, 2001 at 5 00 pm In the parking lot behind Muther's at 113 Avenue A, Denton, ~xas Followln[ completion of the demonstration and after determining that a quorum is present, the City Corn .mi of the City of Denton, Texas will convene in a Work Session on Tuesday, June 12, 2001 at 6100 pm in the Council Work Session Room in City Hall, 215 E McKmney Street, Denton, Texas at which the followang items will be considered / NOTE~ Work Session is used to explore matters of interest to one or more City Counc~ Memberslor the City Manager for the purpose of giving staff direction into whether or not suc matters st~ould be placed on a future regular or special meeting of the Council for cmzen input, City Corn tcll deliberation and formal City action At a Work Session, the City Council generally receives 1 lformal and preliminary reports and lnformataon from City staff, officials, members of City eom mtteas, and the individual or organization proposing council action, if invited by City Council c City Manager to participate in the session Partmlpat~on by ln&vlduals and members of organl: atlous invited to speak ceases when the Mayor announces the session is being closed to public in ~ut Although Work Sessions are public meetings, and citizens have a legal right to attend, th ~y are not public hearings, so citizens are not allowed to participate in the session unless lw 'lied to do so by the Mayor Any citizen may supply to the City Council, prior to the begmnm~ 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 gene 'ally prepare a final report defining the proposed action, which will be made available to all Cltl: ~ens prior to the regular meetmg at which citizen input is sought The purpose of this procedun is to allow citizens attending the regular meeting the opportunity to hear the views of their fellc w citizens wathout having to attend two meetings 1 R, ~celve a report, hold a discussion, and give staff direction regarding proposed revisions to Section 20-1 of the Code of Ordinances regulating noise 2 R ,'eelve a report, hold a discussion and give staff direction concerning the development ota drmnage fee 3 R ,'celve a report and hold a discussion on conversion of the overhead electric lines to u~darground along University Boulevard 4 N~w Business T~ls Item prowdes a section for Council Members to suggest items for future agendas Immediately following completion of the Work Session, and after determining that a quorum of the Council~ is present, the Denton City Council will convene a Special Called Closed Meeting on June 12,12001, and contmmng thereafter until completed, in the City of Denton Work Session Room, l~enton City Hall, at 215 East McKluney, Denton, Texas to consider the following speclficgems set forth below (The City Council further reserves the right to adjourn Into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Glvemment Code, as amended, as set forth below ) l City of Denton C~ty Council Agenda June 12, 2001 Page 2 1 Closed Meeting [**Before the Denton C~ty Council may deliberate, vote, or take final action on each of the agenda items posted as a competitive matter in a Closed Meeting under the provisions of TEX GOV'T CODE Section 551 086(c), the City Council must first make a good faith determination, by ma. lorlty vote of ~ts members, that the particular agenda item is a competitive matter that satisfies the requirements of Section 551 086(b)(3) The vote shall be taken during the Closed Meeting and shall be included in the certified agenda of the Closed Meeting If the C~ty Council fails to determine by a majority vote that the particular agenda item satisfies the reqmrements of Section 551 086(b)(3), the City Council may not deliberate or take any further action on that agenda Item m the Closed Meeting ] A Dehberattons Regarding Certain Pubhc Power Utilities Competitive Matters --- Under TEX GOV'T CODE Section 551 086 **Consultation with Attorney --- Under TEX GOV'T CODE Section 551 071 (1) Receive competitive electric market information and direct questions to potential purchasers, discuss and deliberate the same Receive a confidential competitive electric utlhty presentation and receive competitive electric market information from Staff and City's consultants, dlsctlss, deliberate, consider, provide Staff with direction, vote, and take final aeUon as necessary, regarding future wholesale power purchase transactions and strategies including, but not hmlted to the replacement of electric generatton resources, and the proposed sale, transfer, assignment, or other &vestIture ora part of the City of Denton's electric utility system, ~neluding, without hm~tation the Spencer generation facility located on Spencer Road ~n the City of Denton, Denton County, Texas, and the two hydroelectric faeflmes owned by the C~ty located an Denton Coanty, Texas Conduct a consultation with the C~ty's attorneys and its outside legal counsel in order to obtain the advice and recommendations of the City's attorneys concerning the above-referenced issues, where to discuss such issues and matters m a pubhc meeting would conflict with the attorney's duties and professional responsibilities to their ehent under the Texas D~sclphnary Rules of Professional Conduct, or any other applicable D~sc~phnary Rules of Professional Conduct ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT 1S HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF SECTION 551 086 OF THE TEXAS GOVERNMENT CODE (THE "PUBLIC POWER EXCEPTION") THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED, MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX GOV'T CODE, SECTIONS 551 001, ET SEQ (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE 1N A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION SECTIONS 551 071-551 086 OF THE TEXAS OPEN MEETINGS ACT City of Denton City Council Agenda June 12, 2001 Page 3 Immediately following the Special Called Closed Meeting of the City Council, and after determining that a quorum of the Council is present, the City Council shall consider the following specific Items set forth below, in a Special Called Open Meeting of the City Council at the City of Denton Work Session Room, Denton City Hall, 215 East McKlnney, Denton, Texas, to wit 1 Consider adoption of an ordinance of the City of Denton, Texas providing for, anthonzing, and approving the execution by the City manager of an Asset Purchase Agreement by and among the City of Denton, Spencer Station Generating Company, L P, a Delaware limited partnership, and PG&E Generating Company, LLC, a Delaware limited liability company, authonmng and approving the execution by the City Manager of a Transition Power Agreement by and between the City of Denton and PG&E Energy Trading - Power, L P, a Delaware limited partnership, approving and authorizing the execution by the City Manager of a Transition Power Agreement Guarantee by and between the City of Denton and PG&E Trading Holdings, LLC, a Delaware limited liability company, authorizing and approving the execution by the City Manager of a Bill of Sale by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the City Manager of an Assignment and Assumption Agreement by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the C~ty Manager of a Contlnmng Slte/Interconnectlon Agreement by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the City Manager of an Easement, License and Attachment Agreement by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the City Manager of a Guarantee by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the City Manager of a Water Rights Agreement by and between the City of Denton and Spencer Station Oenerating Company, L P, authorizing and approving the execution by the City Manager of a Reclaimed Water Service and Wastewater Return Agreement by and between the City of Denton and Spencer Station Generating Company, L P, anthOnzlng and approving the execution by the City Manager of a Power Transfer Agreement by and between the City of Denton and PG&E Energy Trading - Power, L P, authorizing and approving the execution by the City Manager of a Special Warranty Deed by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution by the City Manager of Blanket Conveyances by and between the City of Denton and Spencer Station Generating Company, L P, authorizing and approving the execution of such other agreements and other documents, including, vathout limitation, certificates, contracts, assignments, heenses, leases, directions, instruments, and statements by the city manager, which are incident or related thereto, as shall be reasonably determined by the city attorney or his designee, confirming and ratafylng that the City of Denton, its mayor, its city council, its city manager, and its city attorney shall be authorized and empowered to perform such acts and obligations as are reasonably required to consummate this transaction, ratifying all prior actions taken by the city council in furtherance of the foregoing transactions, making such findings as are required by the Public Utlhty Holding Company Act of 1935, as amended, and the Federal Energy Regulatory Commission implementing regulations, finding and determining that several of said agreements pertain to a competitive electric matter as set forth under the provisions of Section 551 086 and City of Denton City Council Agenda June 12, 2001 Page 4 Section 552 131 of the Texas Government Code, as amended, findang and determlmng that Texas Government Code Section 252 022(a)(15) and Section 272 001(J) apply, adoptang slgmficant findings, conclusions, and recttatlons as are set forth m the preamble of th~s ordinance, finding that the sale of these electric generataon resources owned by the city m connection w~th its electric utthty under the asset purchase agreement are not essentml to continued effective utility service when cons~denng the purchase of capacity and energy, and other arrangements made by the city under the terms of the transition power agreement and other agreements, authonzang the expendature of funds therefor, and prowdmg an effective date 2 Consider adoption of an ordinance approving a letter real estate agreement between the Cxty of Denton and Umon Pacffic Rmlroad Company relating to the purchase of approximately 190,400 square feet of land located between E McKlnney and Prame and adjacent to Umon Pacific rml lines for use as parking and hake and bake trails and related purposes, authonzang the expenditure of funds therefor, and provldang an effective date 3 Consider adoption of an ordtnance approving a correctmn deed between the Caty of Denton and Union Pacific Railroad Company relating to a hne sale agreement dated July 2, 1993 for Umon Pacffic's Denton Branch Rml Lane between Milepost 721 72 at Denton, Texas, and Milepost 729 5 at Coors, Texas, and providing an effective date 4 Officml actaon on Closed Meeting Item(s) under Sectaons 551 071-551 086 of the Texas Open Meetings Act CERTIFICATE I certafy that the above notice of meeting was posted on the bulletm board at the Caty 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 CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY- TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE AGENDA INFORMATION SHEET AGENDA DATE: June 12, 2001 DEPARTMENT: Police ACM~ Jon Fortune~ Public Safety and Transportation Operatmns SUBJECT Receive a staff report, hold a dlscUsmon, and gave staff darectlon regarding proposed revaslons to Sectmn 20-1 of the Code of Orchnances regulatang no,se BACKGROUND On April 24, 2001, staff presented a background packet on proposed revasmns to our current nmse ordinance After Council dascussmn, staff was requested to do further research in several areas The following is a (hscuss~on of the research in the areas Outdoor Music Festivals (20-1-5) The proposed revasaons outhne a spemfic section to control the amount of nmse emitted from on outdoor musac festival The caty has several annual functions that are the subject of complmnts for no,se by area neaghborhoods Staff ongmally proposed setting a maximum dembel level of 70 dba at the estabhshed perimeter of the event, such as a fence 6r the natural bamers of the locataon Dunng Councal dlscussaon, staffwas asked to consader rmsmg the hmlt to 75 dba to match the dembel levels allowed under the sections govermng amphfied sound, etc In researching the assue and settmg the decabel level, staff found that the amount of perceaved sound, as measured m decabels on the A-weighting scale, decreases by 6 decab{ls each time the d~stance from the source is doubled Thus, a measurement of 70 dba at 25 feet would regaster as 64 dba at 50 feet (theoretmally, and w~thout conslderataon to the effects of natural and manmade bamers to the sound waves) On ~ts face, the difference of 5 dembels does not seem s~gmficant However, the assue that should be considered is not samply the decabel level, but the decabel level ~n conJunCtion wath the dmtance at whach at ~s measured A reading of 75 dembels taken 50 feet from a source of sound mdmates a slgmficantly lower amount of sound than the same decibel reading taken Iai 100 feet from the source Many of our outdoor festivals take place in large areas (Fmr~rounds, C~wc Center, etc) The distance from the stage to the perimeter as often more than 100 feet If we apply the reverse to dembel levels over dastance, a reachng of 75 decibels at 100 feet would equate to 81 decabels at 50 feet Further, staff research and~cates that a 10-decibel ~nerease as the eqmvalent of a doubhng of the sound output at the source Therefore, the addatton of 5 more decibels of sound at the perimeter of an outdoor event makes a sagmficant dafference an the amount of sound being produced at the source At the, Cmco de Mayo event held this year at the North Texas Fairgrounds, the stage was placed 425 feet from the closest perimeter fence (south side) The organizer was instructed by Council to stay wltinn the confines set forth in this noise revision (75 dba at the penmeter) Stafftook penorhc readings from the fence on all sides of the Fairgrounds Overall, stafftook sixty-four readings over a seven-hour period of the event F~ve of these readings exceeded 70 dba, and only one exceeded 75 dba No citizen complmnts were reported to the police for loud noise or music from the event Outdoor Performances Staff was asked to research ways to control the amount of noise produced by bands or other music sources m outdoor settings, such as patios or decks of clubs Staff was Instructed to look specifically at the exclusion of amplified sound m such settings after 10 O0 pm, as outlined in the current ordinance Staff recommends that Council consider using the provisions set out for amplified sound m the ordinance rewsions to cover all venues and properties employing amplified sound or any other source delineated in the specific section of the ordinance The fact that a venue is outdoors, on a roof, or otherwise open to the environment should serve to limit the amount of sound that can be emitted at the source Without walls or other sound damp~mng sources, the sound produced at these locations would need to be much less to stay WIthm the reqmrements of the ordinance Using this provision would also preclude the need to specify any differences in residential parties, or other settings where amplified sound might be desired, but would be prohibited by ordinance Decibel levels and Industrial Performance Standards Staff was asked to research the decibel standards in the no~se ordinance revisions as compared to the decibel standards outhned m the Draft Denton Development Code for Industrial Performance Standards Staff did extensive research on ~ndustnal performance standards Staff found that these standards are estabhshed for two reasons 1) To protect the heanng of the employees of these industrial properties, and 2) To control the emission of noise into surrounding neighborhoods, when the location coexists with other non-industrial sites Industrial performance standards use A-weighted decibel readings, combined with an analysis of the octave ranges of the nmse Tins is based on the fact that sounds at higher frequencies take less exposure time to be irritable than sounds in a lower octave range Tins is especially true when dealing with the wide variations of octaves produced by machinery However, in dealing with amplified sounds involving stereos, recorded music, and live bands, there is not a significant change in octave ranges to warrant the extensive measurement t~mes and the expense of the measurement eqmpment In looking at the performance standards in the Draft Denton Development Code, the range of acceptable decibel levels covers a high of 90 decibels for lower frequency sounds, and a low of 58 decibhls for high frequency sounds The mid-level octaves, where most of the sounds covered m the noise revision occur, allow 65 to 69 decibels These levels are measured at the bounding property line Depending on the lot size for the industrial facility, this could be well m excess of 50 feet Therefore, a reading of 70 decibels at 50 feet s~grnfies less 2 nome than a reachng of 65 - 69 decibels at a greater measurement thstance Overall, the standards set forth m the no,se revisions are m keeping w~th those m the Development Code, but due to the varying types and octave ranges created m ~ndustnal settings, these locatmns reqmre a more m-depth measurement standard Amphfied sound for musmal mstruments, stereos, etc, can be controlled effectively w~th the use of a relattvely mexpans~ve Type II sound level meter OPTIONS 1 The Couned can threct staffto place the ordinance on a future Councd agenda for adoption 2 The Council can d~rect staff to make revisions or prowde further mformat~on and present adthtmnal rews~on optmns for consideration at a later date 3 The Couned can choose not to consider any rews~ons to the current ordinance RECOMMENDATION Staff recommends Council consider adoption of the ordanance as written PRIOR ACTION/REVIEW At the Cotmcfl Work Session on January 23, 2001 staff rewewed current ordinances from more than 30 c~tles m Texas and New Mexico The proposed ordinance was written by the C~ty Legal staff, m consultatmn w~th the Pohce Department FISCAL IMPACT The ereatmn of such an ordinance will require the City to purchase approximately 8-10 Sound Level Meters at a cost of $59 95 per unit for a total of less than $600 00 EXHIBITS Sound Level Reathngs Report Revised Ordmance Respectfully submitted, Gary L Matheson Chief of Pohce Prepared by Lt Scott Fletcher F~eld Operations - East 0000 ORDINANCE NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING CHAPTER 20 RELATING TO NOISE VIOLATIONS BY AMENDING SECTION 20-1 IN ITS ENTIRETY, PROVIDING A SEVERABILITY CLAUSE, PROVIDING A SAVINGS CLAUSE, PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS SECTION 1 That Chapter 20 "Nuisances" of the Code of Ordinances of Denton, Texas is hereby amended by replacing Section 20-1 titled "Noise" m ,ts entirety to read as follows Section 20-1. Noise 1 Declaration of Intent. It is hereby declared to be the policy of the C,ty to mmumze the exposure to cmzens to the potential physiological and psychological harm of excess,ve no,se and to protect, promote, and preserve the public health, comfort, convenience, safety, and welfare It is the express lment of the City Council to control the level of no,se ,n a manner that promotes commerce, protects the sleep and repose of cmzens, promotes the use, value, and anjoymant of property, and preserves the quality of the environment 2 Sound Measurement Criteria For purposes of flus ordinance, sound measurements will be made using the A-we,ghtmg scale on an approved sound-level meter, based on the reference sound pressure (0 dba) Measurement t~mes will be no less than 2 minutes m length, and violations will be determined based on the highest registered reading in that measurement period All measurement levels will be inclusive of any ambient no,se that exists at the time of the measurement 3 Definitions and standards The following defimtlons shall apply m the intcrpretat,on and enforcement of the section Approved Sound-Level Meter An instrument sensitive to pressure fluctuations that provides a digital decibel reading indicating the level of sound based on a referance of 0 db (0 0002 Micro Bar) The instrument must be rated by the manufacturer to be w~thm + 2 db at 114 db SPL The instrument must also be capable of taking measurements on thc A-weighted scale and on a slow response .4-We,ghted Sound Pressure Level The sound pressure level as measured on an approved sound-level meter using the a-weighting network Page 1 of 6 Clearly Audible Any sound for which the information coment of that sound 1s unambiguously communicated to the listener, such as, but not limited to, understandable spoken speech which need not be wholly dlscemable, or comprehension of whether a voice is rinsed or normal, bass reverberatlons, or comprehensible musical rhythms Daytime From7 00am to 1000pm Estabhshed Perimeter The established perimeter of an event will be the permanent or temporary fencing in place for the event, or the natural boundaries of a specific location or address Motor Vehwle Any vehicle propelled by mechanical power, such as, but not limited to, any passenger car, truck, truek-trmler, seml4rafler, camper, motorcycle, mlmb~ke, go- cart, dune buggy, or racing vehicle N~ghtt~me From 10 O0 p m to 7 O0 a m No,se Any sound which is unwanted or which causes, or tends to cause, an adverse psychological or physiological effect on human beings Outdoor Musw Festtval Any form of musical entertmument provided by live performances if (1) More than 200 persons are m attendance at any one performance, or (2) The event reqmres pa~d admission, and (3) Any of the performers or performance are not w~thln a permanent, enclosed structure, and (4) Any of the performance involves thc use of amplified sound Sound Am£l~fymg Equipment Any mactune or device for the sound amplification of the human voice, music, musical eqmpment, or any other sound "Sound amphfymg equipment" shall not include warning devices on anthonzed emergency vehicles or horns or other warning devices on any vehicles used only for traffic safety purposes Vtbratzon (Bass Reverberation) A temporal and spatial oscillation of (hsplacement, velocity, or acceleration in a solid material created by the use or operation of a stationary loudspeaker, amplifier, musmal instrument, or any other sound amphfymg eqmpment Any ground or structure-borne vibrational motion that is perceptible by sensation by touch, visual observation of mowng objects, or means other than through the sense of heanng 6 Page 2 of 6 4 General noise violations. (a) It shall be unlawful for a person to make or cause any unreasonably loud, dlsturbmg, or unnecessary noise, which causes material d~stress, discomfort or injury to persons of ordinary senslblhtles in the immediate Vlclmty thereof (b) It shall be unlawful for any person to make or cause any nmse of such character, intensity and continued durataon as to substantmlly interfere with the comfortable enjoyment of private homes by persons of ordinary sensibilities (c) The followmg acts, among others, are declared to be nmse nmsances ~n wolat~on of thts Code, but such enumeration shall not be deemed to be exclusave (I) The playing of any phonograph, televaslon, radao, or any musacal instrument m such manner or with such volume, so as to be clearly audable to a person m their residence, and (a) Dunng the daytime, measure more than 85 dba on the A-weaghtmg scale on an approved sound-level meter at more than 50 feet fi:om the source, or (b) Durmg the mghttame, measure more than 70 dba on the A- welghtang scale on an approved sound-level meter at more than 50 feet from the source, or (c) Dunng tho daytime, an a muln-famfly dwelling, measure more than 50 dba on the A-weighting scale on an approved sound-level meter m any adjacent umt, or (d) Dunng the mghttame, an a multa-famfly dwelling, be clearly audible within any unit that ~s not the source on the sound (2) The use of any stationary loudspeaker, amphfier, musmal Instrument, or sound amphfymg eqmpment an such a manner or wath such volume so as to be clearly audible to a person m their residence, and (a) Dunng the daytime, be of such ~ntensaty and volume so as to measure more than 85 dba on the A-scale on a sound-level measunng dewce at more than 50 feet from the source, or (b) Dunng the mghmme, be of such antenslty and volume so as to measure more than 70 dba on the A-scale on a sound-level ~ measunng devine at more than 50 feet from the source, or 7 Page 3 of 6 (c) Dunng the daytime, in a multi-family dwelhng, measure more than 50 dba on the A-weighting scale on an approved sound-level meter in any adjacent umt, or (d) Dunng the mghttime, in a multi-family dwelling, be clearly audible witlun any unit that as not the source on the sound, or (e) At any time on Sunday, (f) Provided, however, that the city council may make exceptions upon apphcation for sound levels or hours of operation when the pubhc interest will be served thereby, (3) The creaUon of vibration or bass reverberations at any tame that is perceptible reside a complaining person's residence, through the sense of touch, visual observation of moving objects, or through a means other than the sense of hearing (4) The use of any radio, stereo, amplifier, sound amphfymg equipment, or other musical dewee installed or contmned m a motor vehmle at a volume such that it is clearly audible to any person from more than 35 feet from the vehicle (5) The blowing of any steam wtustle attached to any stationary boiler or the blowing of any other loud or far-reactung steam whistle witban the city hrmts, except to give notice of the time to begin or stop work or as a warmng of danger, (6) The erection, excavation, demohtaon, alteration, or repair work on any building at anytime other than between the hours of 6 00 am and 8 30 pm Monday through Friday from June 1 to September 30, between 7 00 am and 8 30 pm Monday through Friday from October 1 to May 31, between 8 00 am and 8 30 pm on Saturday, and between 1 00 pm and 8 30 pm on Sunday, provided, however, that the city council may issue special permits for such work at other hours in case of urgent necessity and in the interest ofpubhc safety and convemence, (7) The creation of any loud and excessive noise an connection with the loading or unloadmg of any vehicle or the opening or destruction of bales, boxes, crates or contmners, (8) The use of any drum, loudspeaker, or other ~nstrument or device for the purpose of attractmg attentton by the creation of noises to any performance, show, theatre, motion picture house, sale of merchandise, or 8 Page 4 of 6 display which causes crowds or people to block or congregate upon the sidewalks or streets near or adjacent thereto 5 Outdoor Music Festivals. (a) At any outdoor music festival, it shall be unlawful for any person or group sponsonng the event to make, cause, allow, or permit any noise that (1) Exceeds 70 dba on an approved sound-level meter when measured at the established perimeter of the event (2) Provided, the city council may make exceptions upon apphcatlon for sound levels or hours of operation when the public interest will be served thereby 6 Criminal Penalty (a) A person commits an offense if he violates or attempts to violate a provision ofttus chapter applicable to him A culpable mental state is not reqmred for the commission of an offense under flus chapter unless the provision defining the conduct expressly reqmres a culpable mental state A separate offense is committed each day in which an offense occurs An offense committed under th~s chapter is punishable by a fine of not more than $500 (b) Prosecution for an offense under Subsection (a) does not prevent the use of other enforcement remedies or procedures apphcable to the person charged with or the conduct involved m the offense SECTION 3 If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent junsdtctiun, such holding shall not affect the vahd~ty of the remmmng portions of this orthnance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remmmng portions despite any invalidity SECTION 4 Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect SECTION 5 This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of tfus ordinance to be published twice m the Denton Record-Chromcle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of~ts passage 9 Page 5 of 6 PASSED AND APPROVED this the day of ., 2001 EULINEBROCK, MAYOR ATTEST JENNIFER WALTERS, C~Y SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PKOUTY, CITY ATTORNEY 10 Page 6 of 6 AGENDA DATE: June 12, 2001 DEPARTMENT Wastwater Admmistration ACM. Howard Martin, ACM/Utfl~ties 349-8232 SUBJECT' Receive a report, hold a d~scusslon and give staff direction concerning the development of a drmnage fee BACKGROUND' In FY 1999, the drmnage program was transferred to the Wastewater Department Funding m FY 2000 for ti'us program was prowded 65% from Water transfers and 35% from Wastewater transfers FY 2001 funding will be provided 55% from Water and 45% from Wastewater Future projections indicate the need for a 10% Wastewater rate increase and a 7% Water rate increase in FY 2002 to m~untam current funding levels for drmuage (Exhibit I and Exhibit II) Water and Wastewater rates were not demgned to carry the funding for the drainage program The reason that Water and Wastewater have been able to prowde drainage funding was the result of drought conditions that existed from the fall of 1998 to the fall of 2000 Dtmng drought conditions, revenues for water increase, wastewater treatment costs go down bccanse of reduced inflow/infiltration to the eolleetlon system and drainage system complmnts and the overtime costs associated w~th road closures also go down When the drainage responsibility was transferred responslb~hty for, bridges and creek crossings were also transferred The current funding levels for drainage are not adequate to cover the costs of bridge and crossing maintenance Since 1980 the drmnage expenses have mereased (Exhibit III) Enactment of the Storm Water Phase II Final Rule has placed the responsibility of comphance v~th stormwater regulations on cities of populations less than 100,000 (Exlublt IV) Annual costs of comphanee and management can range from approximately $300,000 to well over $1,000,000 (Exlublt V) Many cities are implementing dramage fees to help fund dramagc costs and the new Stormwater Regulations A survey of other cities that have developed drainage fees indicates m most cases, these eltles have developed some form of impervious coverage bas~s for the calculation of fees (Exlublt VI) The impervious coverage bas~s appears to be the most eqmtable means of assessmg a drainage fee For example, in those areas of drmnage basins that have not been developed the c~ty recurs very little expense associated with drainage channels It zs those areas that have been developed with structures eneroacfung into floodplains where the drainage costs are recurred We have compared the financial cost eqmty of an impervious coverage basis with that of a water/wastewater percentage basis and that of a tax-based percentage approach (Exhibits VII and VIII) In relation to the water and wastewater bill, the rasldentlal customers are paying a Ingher percentage of drainage costs than, for example, a storage famhty winch uses very little water and would pay a lower percentage towards dratnage funding Using the tax-based approach, undeveloped properties are also paying for drmnage but they do not place a proportionate demand on the system The Water Department is m the process of verifying amounts of lmpervmus cover associated with developed properties in the City of Denton Calculations as of 5/29/01 mdmate areas of impervious coverage broken down into three customer classes resldant~al, commercial and government totaling 156,753,362 square feet (sq ft ) We have used tins square footage as the basis for calculating the cost per 1,000 sq ft of ~mpervlous coverage Using the projected drmnage costs of $3 50 million, (Extublt IX) the monthly cost for 1,000 sq ft of impervious cover would be $1 86 A customer with 2000 sq ft would pay $3 72 per month and one voth 3000 sq ft would pay $5 58 per month A customer with one acre (43,560 sq ft ) of impervious coverage would pay $81 05 per month The Drainage D~vls~on ~s scheduling a series of pubhc meetings to discuss drainage issues including future funding issues (Exlublt X) The meetings will provide an oppomm~ty for mt~zens and mty staff to provide input to the Public Utilities Board and Council on future drmnage pohe~es OPTIONS' · Contanue funding from water and wastewater, and increase wastewater rates m 6% in FY 2001 · Provide funding fi:om a tax-based approach · Develop a drmnage fee based on impervious surface calculataons RECOMMENDATIONS: Staff recommends the continued development of a drmnage fee based on impervious surface area calculataons Ttus approach ~s the most eqmtable because it places a proportionate cost of the drainage ~mpacts on the customers wluch place the greatest load on the system ESTIMATED SCHEDULE OF PROJECT The dramage fee based on the impervious area would be designed and a phased implementation will begin October of 2001 PRIOR ACTIONfREVIEW (Council, Boards, Comrmss,ons) The Drainage fee has been discussed at several PUB meetings Respectfully submitted Howard Mart~n Assistant City Manager for Utllmes Prepared by Jim Coulter, Du:ector Water/Wastewater EXHIBITS: I Wastewater Proforma 10% increase II Water Proforma 7% increase IH Dratnage Expense History IV Storm Water Phase II Rule Information V Financial Strategies for Stormwater Management VI Survey from other emes (Lmpervlous Coverage) VII Draanage Costs as a ftmct~on of WW bill VIII Dr~unage costs as a funcUon of property tax IX CalculaUons of drainage fee costs for $3 50 rmlhon ftmdmg X Pubhc Meetangs Schedule 3 WASTEWATER + DRAIN Impact Fees @ 75% ACTUAL BUDGST 6STIMATE BUDGET FY FY FY FY ] Denton Volume Billed (MG) 3359 3116 3200 3464 3751 3940 4136 4350 a Res Ann Cust Bills 206 755 189 956 222 000 230 687 242 221 254 332 267 049 277 ooo 4 Avg Mth Bdl/Res 26 16 21 89 20 72 22 33 22 83 22 83 22 82 24 56 Rate Revenues 5 Residential s [25 4 [57 A 600 5 182 $5 531 $5 SOS $5 085 $5 S03 7 Coy/Effluent Irrigation (2002) 175 35 0 52 I04 111 114 117 6 Drainage Fee o o o o o o o o [o Wholesale ZA?. ~ Z~ ~ ~ ~,~ s~o Other Revenues 12 Other Fees (Tipping Fee) o 140 148 141 143 [44 145 147 is Line Extensions o o o o o o o o 14 Aid in Construction/Taps 93 50 50 ao 70 80 82 83 is Other Wastewater 14 s 5 6 6 6 7 7 17 Compost Revenue JJzT. ]a~ [26 ~44 ~Lt /~ 202 18 Total Operating & Other 12.280 12.198 12.590 514,639 $15,877 516.694 517,488 $19.347 ODerabn~ Exoenses [S Payroll 8 327 4- ~.61 3 510 $4 034 $4 207 $4 471 $4 695 $4 929 20 Supplies 275 39O 467 $773 $817 $875 901 928 21 Maintenance 5[6 573 671 $667 $717 $756 778 802 22 Seduces [ 043 [ [75 [ [75 $1 525 $1 495 $[ 616 i 664 i 7~4 24 Sundry 186 30 30 $32 $37 $43 44 45 25 Purchased Power ~s 492 497 $658 $750 $800 824 849 26 Motor Pool 694 682 531 $949 $1 012 $96[ 990 ! 020 27 Bad Debt 23 26 26 $26 $39 $41 43 47 28 Aid in Construction/Taps 0 50 0 $60 $70 $80 82 aa 30 Resales Contingency 0 250 0 $250 250 250 250 250 31 Cap~tabzed Exp 0 (463) (250) ($345) (230) ([58) (362) (380) 34 Operatlng/Rese~a Interest 6OS S[7 500 $472 $5~2 $538 $564 $625 56 Utlhty Transfers In 234 235 235 237 240 242 245 247 37 Transfer In/Drainage Costs 1 476 1 503 1 503 ! 752 I 536 1 936 2 036 2 213 35 Resales Contingency 0 250 0 250 250 250 250 250 45 ROI Transfer (3 5% Rev) (398) (416) (429) (500) ($542) ($569) ($557) ($662) ~ Street Rental (4% Rev) (455) (475) (491) (572) ($619) ($651) (682) (756) 53 Reserves Rate Stabilization ~ 200 ~ ~ 200 ~ soo so Cash Net Income 2.52e ts2 ~ s~s s2s 82~ sst WATER RRWTp 3 Raw Water (MG) 3.287 2000 2.000 2.024 ~[ ~ Q ~ 5 Denton Cust Rev/1000 Gals $3 55 $3 27 $3 27 $3 28 ~3 43 $3 62 $3 62 $3 64 Other Revenues [7 Utdlty Relocation so $3 SZ $1 000 ] 1 I 1 Ooeratm~ Trans(ers (Out3 se Rese~es Rate Stabhzation ~ ~ ~ 4,3~ ~ ~ ~ ~ 62 Accrual Adjustment ~ ~ ~ ~ g ~ ~ ~ es Cash Net Income s~.ag9 ~ ~ ~ ~ ~ ~ ~ ~.llOQ 6 Umted States Office of Water EPA 833 F 00 002 Environmental Protection (4203) January 2000 Agency Fact Sheet 2 0 EPA Storm Water Phase II Final Rule SmalI.MS4Storm Water Program Overv,ew Storm Water Phase II Do]luted storm water runoff is often transported to mumclpa] separate storm sewer systems Rnal Rule Fact Sheet Sones I(MS4a) and ultimately thscharged rote local rivers and streams without tmatmant EPA's Storm Water Phase II Rule establishes an MS4 storm water management program that Is Overvmw mtended to tmprove tho Nation's waterways by reducing the quanluty of pollutants that storm 1 0 - Storm Water Phase II Final water picks up and comes Into storm sewer systems dunng storm events Con-anon pollutants Rule An Ovemew Include ell and grease from roadways, pesticides from lawns, sedrment from construction srtes, and carelessly discarded trash, such as cigarette butts, paper wrappers, and plastic bottles Small MS4 Program When deposited into nearby waterways through MS4 discharges, these pollutants can impair 2 0 - Small MS4 Storm Water the waterways, thereby thscourag~ng recreational use of the resource, contannnatmg dnnkmg Program Overview water supplies, and lnterfenng with the habitat for fish, other aquatic organisms, and wildlife 21 - Who s Covered? Designation and Wmvers of Regulated Small In 1990, EPA promulgated rules estabhshing Phase I of the National Pollutant Drscharge MS4s Ehnunation System (NPDES) storm water program The Phase I program for MS4s requires 2 2 - Urbanized Areas Deflm~on operators of "medium" and "large" MS4s, that is, those that generally serve populations of and Desonptmn 100,000 or greater, to implement a storm water management program as a means to control polluted discharges from these MS4s The Storm Water Phase II Rule extends coverage of the 1lgntmum Coneolll~ssuras NPDES storm water program to certain "small" MS4s but takes a slightly different approach to 2 3 - Public Educabon and how the storm water management program is developed and implemented Outreach 2 4 - Pubhc Pamc~paaon/ What Is a Phase H Small MS49 Involvement 2 5 - Ilhce Discharge Detection Aemail MS4 is any MS4 not already covered by the Phase I program as a medium or large and Elmnabon --'-~MS4 The Phase II Rule automatically covers on a nationwide basis all small MS4s located in "urbamzed areas" COAs) as defined by the Bureau of the Census (unless waived by Control2 6 - Constmcbon S~te Runoff the NPDES permrttmg authonty), and on a case-by-case basis those small MS4s located outside of UAe that the NPDES pemut~mg authority designates For more mformatron on Phase II 2 7 - Post ConstrucUon Runoff small MS4 coverage, see Fact Sheets 2 1 and 2 2 Control 2 8 - Pollubon Prevent~on/Good What Are the Phase II Small MS4 Program Reqmrements* Housekeeping ~"~perators of regulated small MS4s are required to design their programs to 2 9 Permttbng and Repomng The Process and Requirements O Reduce the thscharge of pollutants to the "maximum extent practicable" (MEP), 210 - Federar and State Operated O Protect water quahty, and MS4s Program Implementation O Satisfy the appropriate water quality requirements of the Clean Water Act Construction Program 3 0 - Construction Program Implementation of the MEP standard will typically require the development and Ovemew implementation of BMPs and the achrevement of measurable goals to satisfy each of the six rmmmum control measures 31 - ConstmOon Rmnfa[I EraslVlty Waiver The Phase II Rule defines a small MS4 storm water management program as a program Industrial "No Exposure" compnmng six elements that, when implemented rn concert, are expected to result m 4 0 - Cond~bonal No Ex0osure mgnrficant reducO, ons of pollutants discharged into receiving waterbodms Exclusion for Industrml AcUv~Ly 7 EXHIBIT IV Fact Sheet 2 0 - An Overview of the Small MS4 Storm Water Pro~[ram Pa~e 2 The s~x MS4 pmgrum elements, termed "nummum control or NOI, ~ts chosen BMPs and measurable goals for each measures," are outlined below For more reformation on each rmmmum control measure To help permittees identify thc of these required control measures, see Fact Sheets 2 3 - 2 8 most appropriate BMPs for their programs, EPA will ~ssue a "menu,' of BMPs to serve as guidance NPDES pernuttmg 0 Pubhc Education and Outreach authorities can modify the EPA menu or develop their own hst For more mformatmn on application requirements, see D~stnbut~ng educational materials and perfonmng Fact Sheet 2 9 outreach to inform mt~zans about the impacts polluted storm water runoff discharges can have on water quality What Are the Implementation Options9 ~ PubhcParticipatton/Involvement The role tdentffies a number of ~mplementation options for Providing opportunities for citizens to participate m l. regulated small MS4 operators These mclude shanng program development and ~mplemantation, including responsththty for program development 'anth a nearby effectively pubhctzmg public heanngs and/or mgulatad small MS4, tahng advantage of existmg local or encouraging citizen mpmsantat~ves on a storm water State programs, or partmlpat~ng m the ~mplementation of an management panel existing Phase I MS4's storm water program as a co-perrmttee These opUons are intended to promote a regmnal approach to ~ Ilhctt Discharge Detection and Ehmmatwn storm water management coordinated on a watershed basis Developing and ~mplement~ng a plan to detect and ehmmate flhmt discharges to the storm sewer system What KJnd of Program Evaluation/Assessment Is (includes developing a system map and mfomung the Reqmred9 commumty about hazards assocmted w~th illegal discharges and improper disposal of waste) Derrmttees need to evaluate the effectiveness of their chosen .It. BMPs to detenmne whether the BMPs are reducing the 0 Construction Site Runoff Control discharge of pollutants from their systems to the "maximum Developing, implementing, and anfurcmg an erosion and extent practicable" and to determine if the BMP rmx is sed~mant control program for coma'action act~wt~es that asmfHng the water quality reqmrements of the Clean Water chstorb 1 or more acres of land (controls could mcluda Act Perrmttees also are mqu~md to assess their progress silt fences and temporary storm water deteetmn ponds) m achlevmg their program's measurable goals Wlule momtonng ~s not required under the rele, the NPDES ~ Post-Construct~on Runoff Control perrmthng authority has the d~scmtmn to reqmre momtonng Developing, implementing, and enforcmg a program to if deemed necessary If there is an md~catton of a need for address dtschergus of post-construct~on storm water ~mproved controls, perrmtteas can revise their nux of BMPs runoff from new developmant and redevelopmeet areas to creete a more effective program For more information Apphcable controls could include preventative actmns on program evaluatmn/assessment, see Fact Sheet 2 9 such as protecting sensiUve areas (e g, wetlands) or the use of structural BMPs such as grassed swales or porous pavement For Addmonal Information Contact · Pollutwn Preventton/Goodttousel~eepmg ~ U S EPA Office of Wastewater Management Developing and lmplemantmg a program with the goal of Phone 202 260-5816 prevenUng or reducing pollutant runoff from munanpal E-mad SW2~epa gev operations The program must mclude municipal staff trammg on pollutmn preventton measures and techniques Interact www epa gov/owm/sw/phase2 (e g, regular street sweeping, mductmn m the use of Reference Documents pesticides or street salt, or frequent catch-basin cleaning) ~ Storm Water Phase I1 Final Rule Fact Sheet Series Internet www cpa gov/owm/sw/phase2 What Information Must the NPDES Permit Application Include9 ~* Storm Water Phase 1I Final Rule (64 FR 68722) Interact www epa gov/owm/sw/phase2 Contact the U S EPA Water Resource Center The Phase II program for MS4s is designed to accommodate a general penmt approach using a Not~ee Phone 202 260-7786 oflntent(NOI)asthepemutapphcatton Theoperaturofa E-mad eenterwater-rcsource~epaguv regulated small MS4 must include m its pen-mt apphnat~on, 8 Financial Strategies for tormwater Management By Elizabeth Treadway~ There is significant flexibility (2) estimating program costs through Senior Consultant, and within the regulatory structure for the the use of a hypothetmal stormwater Andrew L Reese, PE, regulators and fo~ the impacted program thought to comply w~th both Vice President communities With the flexlbdity mimmal and mine comprehensive Ogden Environmental and comes less certainty on cost impacts to expressions of the six minimum Engineering Services lnc potential permit holders Thc ~mpacted controls for several size citrus, (3) community estimated to be many survey mformanonofimpacted com- W~th the promulgation of the final thousands of towns, counties, c~ties, mumt~es, and (4) application of cost rules for NPDES Phase II Stormwate~ military bases, state h~ghway mformauon ~n a rule of-thumb context Permits on Decembel 8, 1999 (Federal departments, and umversittes is as On balance all of the methods mdmate Regtste~ Vol 64, No 235, pgs 68722- variable as the regulatory options, that there is a w~de range of potentml 68851), the questmn of programmatm making estimatmn of regulatory costs cost flora about $1 50 per person per and financial ~mpacts is clearly In the difficult year to about $8 00 However the costs forefront of those Pubhc Works offi- can go much higher depending on what cmls who will be challenged to comply Costs Of Stormwater components are considered prat of the As stated in a oompamon article, the Pl'ogram$ program EPAs cmmnt cost estimate approach tn this phase of the ptogiarn Stmmwatet pmglams are made np can be calculated lot any city as to ad&ess water,quahty is to focus on of the following components admires- Annual cost = $1,525 + s~x specific proglammatm elements fm tratton and fmancml management population/2 62*$8 93 lr0plementatlon of Best Management operations and maintenance regula Practices (BMPs) tion and enforcement engineering and planning, capital investment, watcl Funding Options quality, public involvement and educa- Currently, the typical funding ~ tmn, technology, and nther m~scella- option fo~ investment m the mature Six Minimum For advance nance and operation of the strum Control M~asur~s /gtormwater programs the three biggest drainage infrastructure within a public /cost items ;end to be operations and/ agency is through geneial tax revenues 1 Pubhc education and [I~ maintenance, c~ment ~'l The diamage system ts often managed outreach ~,.~ater quahty ~The cost o~t managing as prat of the overall street maintenance 2 Public involvement and stormwate.r-e.a~ be quantffied in terms system The challenge within the parflmpafion of cost per developed acre per year NPDES Phase II program is to rccog 3 llhc~t discharge detect~on Based on experience across the country, raze that not only ~s the trad~uonal and removal the table on the following page has infrastructure Impacted by the rules, but 4 Construction site runoff been developed by the authors to other areas of public agency manage- control describe umt costs associated with the ment will be mvolved This includes the 5 Post-construction level of service provided by typmal Planmng Department the Public stormwater controls for stormwater programs Informatmn operation many internal new development and Many communit~es are wondenng pubhc works divismns, sed~mentanon redevelopment what Phase II wall cost There have and erosion control programs, andother 6. Pollution preveution and been several attempts at estimating inspection services The rules have a good housekeeping for potential costs of the Phase II programs far reaching unpact on orgamzat~on as mummpa[ operations including (1) look~ng at Phase I costs well as the community as a whole 12 APWA REPORTEF~ Februar~ 2000 9 EXHIBIT V Typical Costs of Stormwater Management Programs Program cost per Program Level Acre per Year Typical Program Features Incidental $15 $30 Reacbve incidental maintenance, and regulation as part of other programs Minimum $30 $60 ADD rlghtof-way maintenance better regulation and inspection, more staff, and erosion control Moderate $60 - $90 ADD add~bonal maintenance programs and levels of ser- vice, better regulation and inspection, some planmng, m~nor capital programs, and general upgrade of capabd~t~es Advanced $90 $150 ADD maintenance (of some sort) of the whole system, master planning, regional treatment, some water quaht~, data collection, mulb obleCtlve planmng, strong control of development and other programs, and utility funding Exceptmnal over $150 ADD Stormwater quahty, advanced flood control, advanced levels of service for maintenance, aesthetics become more ~mportant, and public programs What Are My Options? Cho,ce of fundmg mechamsms ~s Each of these somces should be Stormwater programs m e funded best driven by the goal of the pt*gram evaluated against several tests to ensure with both primary methods and sec- to be implemented For example, ff a that when used they are the most appro- ondary methods Prtmaiy methods have capital ~mprovement program ts under- prtate chmce of funds Ask the folIow the characteustlc that they generally taken, utilizing genclal tax revenue ~s lng questions to ensure that the right have adequate capacity and flex~bd~ty probably not appropriate Debt financ- method ts utilized to fund the bulk of the st, troweler pt o- mg ts the mote likely method of ch*tee gram These can be lumped into two depending on the magnitude of the categories ge__ne~aI fund revenues improvement, but requires pohttcal I Whatisthe pohttcal (property tax, franchise fees-l~-cal support and can only be used for capt- acceptance of this funding mcome tax and/or general sales tax iai Assessments are a dedicated source method* based) and st~ormwater user fees (some- of funds that may be available, but they 2 is ~t eqmtable* Are the rimes called a stormwater utility) reqmre that the funds be spent ~n benefits accruing to those Secondary fundmg methods are advance and recovered from those who who pay* used to enhance equity ol stmphc~ty benefit Some agencies use plan rewew These include various kinds of fees and developer fees to assist tn funding 3 is ~t feasible to ~mpleme_nt~ (e g impact fees or p[aas review fees), operations and improvements however 4 Is ~t relatively easy to debt financing, grants or government these are highly variable and are genet- adm~mster* cost shate programs special assess- ally dedicated to specific operating ments, ~mprovement districts, connec- activities 5 Is tt legally defensible* tton charges, m lieu of fees etc Each of 6 Can It generate sufficmqt these secondary methods has condt funds to get the job done* lions and hm~tattons that restrict their 7 Will tt pro,nde a dethcated use to specially targeted parts of the source of funds or wall stormwater program others be competing for the same dollar~* Februaw 2000 APWA REPORTER t 3 1 0 Comparison of Two Included Impmvlous area is typically measuted o; estimated to account for peak Primary Methods flow mmeases and charges calculated accordingly IVlost locaI officials are famlhar A stormwater unhty is seen as eqmmble because the cost ~s borne by the user w~th general fund-based methods A on the basis of the user s demand placed on the drainage system A stormwater utd stmmwater utihty can be seen as an ~ty is seen as stable because ~t ~s not as dependent on the whims of the annual bud umbrella under which mdwldual corn- gatary process as taxes A stormwater uuhty is seen as adequate because a typmal mumtles address then own specific stormwater program can be financed w;th payments below what the normaI cus needs in a manner consistent with local tomer is wflhng to pay problems prlol]tles, and practmes In APWA's trmmng manual, Designing and lmpleme/mng an Effecm,e With the expected needs for increased Stmmwate~ Management Program, developed with the assistance of EPA, thele ts a sto]mwater management programs the comparison between these two mechamsms stablhty and adequacy of a utdlty pro vide a great advantage over ethel General Fund financing methods A stormwater unhty Revenues Stormwater Utility can be seen as PoliUcat Acceptance Many competing prc* Reqmred community grams for a resource support and the pohbcal · A ~undmg Method - a method or Jim,ted by the will of the wdl to create a new mix of methods for providing adequate elected officials to funding source based stable, and equltablc funding for the ~mpose taxes on fees comprehensive StOlmwatez program · A Program Concept a compre Equity or ~qst/Benefit Impacts only those who Fee for services hens[va stormwater quantity and quah- "~ pay GF revenues received and ~mposed ty program with an effectlve~alan~*'~l~ sources, and is not on all those who con- cap~tal ~' ~ related to the cost of tribute to need for ser- ,~opelat~onal, regulatory, eng~- neeung, planh~ng, and admmistraave services vices activities · An Orgamzatmnal Entity - a legal FeasibdKy Already ~n place ~n most Reqmres mechamsm for communities Need bdhng fees and entity with the authority to regulate pol~t~cal wdl admimstenng utthty stoimwater management, operate stm mwater management systems, and Easy to Administer System in place to man Once rate base and assess fees and charges age General Fund bdhng file is created rel abvely easy to mmnta~n At a mlmmum, a storrnwate~ util- ity ~s a method fOr obtaining funds /or Legal Structure Typically allowed and Need to verify that the stormwatel plogram Stormwatei functiomng already authority exists, and ~f utdmes typmally generate most of then not, authonty must be revenue through "use]" fees "Use of obtained the sto~mwater system is defined as the Funding Level Must compete w~th Dedicated source of demand a property places on tll~.t sys- other priontles of the funds for program, tern and the atolmwater setvmes and orgamzation and can be allowing the use of fees facflibes p]owded which protect the used for operating and for debt payment, oper property, downstream properties and capital costs sting costs, and capital the receiving waters Each property ~mprovements generates sto]mwater runoff that flows into the drainage system and each prop- Dedicated to Program Must compete for funds Dedicated to program arty owner benefits, in some way, fiom safer streets cleanel water, etc The demand a property places on a system Recogmzmg the need to have a stable funding source, several hundred commumttes is traditionally measured in terms of the have successfully implemented stormwater utilities acloss the nation Supplemented peak flow ofstolmwater runoffgenerat with revenues from tnspectmn ~ees plan review fees bonds developer partmlpat~on ed by the property The greater the flow and assessments a utflKy can provide a strong and stable source of revenue that will provide the means to meet the demands of the Phase II NPDES program goals as the greater the use and thus, the greater well as piovlde rehef to the Genelal Fund for those programs currently drawing on the user fee Sometimes volume of those resources That can even mean a tax cut depending on the strategy and will runoff and runoff pollution are also of the pohtmal body [] 14 APWA REPORTER February 2000 EXHIBIT Vii J~e,~ j~d ~J bs 000~ Jed ~,soo 14 EXHIBIT VIII EXHIBIT IX DRAINAGE 901-A Texas Street Denton, TX 76209 (940) 349-7150 Fax (940) 349-7334 City of Denton Utility Department Public Meetings Schedule Drainage Issues The City of Denton will conduct a sones of pubhc meetings to d~scuss future dlrectmn of the C~ty's drainage program These meetings will provide the opportumty for Ras~dents & City Staff to exchange reformation on drainage Issues, to dmcuss the crees long-term plan for improvements, and to develop a standard for operation and maintenance of the drainage system that balances funding with expectations of Denton Cl~zens These meetings are open to the general pubhc and everyone is welcome We will notify all WaterAVastewater customers tkrough the use of bill stuffers To reduce the posslbthty that we may miss some owners or residents who llve m the flood plato area, please share this notlficataon with your neighbors We would ask that you give of your precious time by attending one of these meetings The reformation prowded by citizens will be presented with City Council to help direct the City's future drmnage pohcy If you have photos of flooding m your area, or other relevant details please bnng them to share at the meetangs Topics to be discussed 1 Current Drainage Projects 2 Commumty expectations on flood prevention 3 Flood Insurance Program 4 Future Funding Meetings will be held in 6 central shes located m the 3 major drainage basins, Pecan Creek, Cooper Creek and Hickory Creek Spemfle reformation concermng the mchv~duaI Creek Basins will be dmcussed The attached map will help identify whmh basra you live m Pecan Creek Basin lt~ekory Creek Basin Cooper Creek Basin City Council Work Sam Houston Elementary Denton Bible Church 215 E McKmney St 3100 Teasley Ln 1910 E Umverslty Dr Sessmn Room City Hall Tkursday, June 28~h Thursday, July 12th Thursday, June 21st 7 00 - 8 30 p m 7 00 - 8 30 p m 700-830pm MLK Kec Center Dema Park Kec Center Asburv Methodist Church 1300 Wilson 1001 Parvln 117 W Hercules Ln Thursday, July 19t~ Thursday, July 26~ Thursday, August 2 ~ 700-830pm 700-830pm 700-830pm If you are unable to attend the meetings and would I~ke to comment on drainage issues, please send a letter to the following address City of Denton Drmnage Department 901- A Texas Street Denton Texas 76209 Or you can e-marl comments to ~dcoulte@¢~tyofdenton com If you have questions on any of these meetings please call the City of Denton Drmnage Department at 940-349-7150 EXHIBIT X AGENDA INFORMATION SHEET AGENDA DATE June 12, 2001 DEPARTMENT Electric Utffit~es ACM. Howard Martin, 349-8232 SUBJECT: Receive a report and hold a discussion on conversion of the overhead electric lines to underground along University Boulevard BACKGROUND' Conversion of the overhead lines along Umvermty Boulevard to underground has been a topic of concern for some time This report is to advise of the current status and to provide a brief overview of the project for the benefit of new Council members ESTIMATED SCHEDULE OF PROJECT. Loop 288 to Elm Street - 2001 Elm Street to 1-35 - 2002 - 03 Respectfully submatted Sharon Mays Director, Elecmc Utilities Prepared by Chuck Sears Engmeenng Admlmstrator Exlub]t I Umversaty Dnve Power Line Conversion AGENDA INFORMATION SHEET AGENDA DATE June 12, 2001 DEPARTMENT Electric Utility ACM Howard Martin, 349-8232 ~ SUBJECT. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSET PURCHASE AGREEMENT BY AND AMONG THE CITY OF DENTON, SPENCER STATION GENERATING COMPANY, L P, A DELAWARE LIMITED PARTNERSHIP, AND PG&E GENERATING COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ENERGY TRADING - POWER, L.P, A DELAWARE LIMITED PARTNERSHIP, APPROVING AND AUTHORIZING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND PG&E TRADING HOLDINGS, LLC; A DELAWARE LIMITED LIABILITY COMPANY; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A BILL OF SALE BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A CONTINUING SITE/INTERCONNECTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN EASEMENT, LICENSE AND ATTACHMENT AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P., AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P., AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A WATER RIGHTS AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P.; AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A RECLAIMED WATER SERVICE AND WASTEWATER RETURN AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A POWER TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ENERGY TRADING - POWER, L.P., AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A SPECIAL WARRANTY DEED BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L.P., AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF BLANKET CONVEYANCES BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P., AUTHORIZING AND APPROVING THE EXECUTION OF SUCH OTHER AGREEMENTS AND OTHER DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CERTIFICATES, CONTRACTS, ASSIGNMENTS, LICENSES, LEASES, DIRECTIONS, INSTRUMENTS, AND STATEMENTS BY THE CITY MANAGER, WHICH ARE INCIDENT OR RELATED THERETO, AS SHALL BE REASONABLY DETERMINED BY THE CITY ATTORNEY OR HIS DESIGNEE; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS MAYOR, ITS CITY COUNCIL, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION, RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL IN FURTHERANCE OF THE FOREGOING TRANSACTIONS, MAKING SUCH FINDINGS AS ARE REQUIRED BY THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, AS AMENDED, AND THE FEDERAL ENERGY REGULATORY COMMISSION IMPLEMENTING REGULATIONS; FINDING AND DETERMINING THAT SEVERAL OF SAID AGREEMENTS PERTAIN TO A COMPETITIVE ELECTRIC MATTER AS SET FORTH UNDER THE PROVISIONS OF SECTION 551 086 AND SECTION 552.131 OF THE TEXAS GOVERNMENT CODE, AS AMENDED, FINDING AND DETERMINING THAT TEXAS GOVERNMENT CODE SECTION 252 022(a)(15) AND SECTION 272.001(j) APPLY; ADOPTING SIGNIFICANT FINDINGS, CONCLUSIONS, AND RECITATIONS AS ARE SET FORTH IN THE PREAMBLE OF THIS ORDINANCE; FINDING THAT THE SALE OF THESE ELECTRIC GENERATION RESOURCES OWNED BY THE CITY IN CONNECTION WITH ITS ELECTRIC UTILITY UNDER THE ASSET PURCHASE AGREEMENT ARE NOT ESSENTIAL TO CONTINUED EFFECTIVE UTILITY SERVICE WHEN CONSIDERING THE PURCHASE OF CAPACITY AND ENERGY, AND OTHER ARRANGEMENTS MADE BY THE CITY UNDER THE TERMS OF THE TRANSITION POWER AGREEMENT AND OTHER AGREEMENTS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND: Negotiations for the sale of the Spencer Generating Plant and the Ray Roberts and Lew~svllle hydroelectric plants and replacement of these resources w~th a Trans~txon Power Agreement have been completed If, after cons~derataon of the confidentaal terms of these transactions m closed session, the Council determines ~t is interested m final cons~deratxon of the transactions, an open 2 session wall be convened Dunng the open session, the reasons for taking tbas step and the general concepts of the generation sale and transatlon Power Agreement will be presented Council will receive a briefing on the financial and techmcal abthtaes of the purchaser and will be able to discuss any envaronmental comphanee concerns OPTIONS: 1 Approve the transaction 2 Do not approve the transaetaon RECOMMENDATIONS. DME recommends approval of the transacUon ESTIMATED SCHEDULE OF PROJECT' Closing on the Spencer Generating Station sale and maplementat~on of the Translt~on Power Agreement by the end of June 2001 Closing on the Ray Roberts and Lewaswlle hydroelectric plants an the fourth quarter of 2001 PRIOR A~TIONfREVIEW (Council. Boards. Commass~onL The Pubhe Utilities Board voted to approve proceeding wath the transacuon at their June 4, 2001 meetang by a vote of 4 to I wath one member absent FISCAL INFORMATION Tlus mformataon wall be provided dunng the closed session Respectfully submxtted Sharon Mays D~rector of Electric Utfl~ttes Exl~blt I Ordinance 3 ORDINANCE NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSET PURCHASE AGREEMENT BY AND AMONG THE CITY OF DENTON, SPENCER STATION GENERATING COMPANY, L P, A DELAWARE LI2ViITED PARTNERSHIP, AND PG&E GENERATING COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ENERGY TRADING - POWER, L P, A DELAWARE LIMITED PARTNERSI-IIP, APPROVING AND AUTHORIZING THE EXECUTION BY THE CITY MANAGER OF A TRANSITION POWER AGREEMENT GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND PG&E TRADING HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A BILL OF SALE BY AND BETWEEN THE CITY OF DENTON A_ND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A CONTINUING SITE/INTERCONNECTION AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF AN EASEMENT, LICENSE AND ATTACHMENT AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING TI-rE EXECUTION BY THE CITY MANAGER OF A GUARANTEE BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A WATER RIGHTS AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCF_~ STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A RECLAIMED WATER SERVICE AND WASTBWATBR RETURN AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A POWER TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND PG&E ElXrERGY TRADING - POWER, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF A SPECIAL WARRANTY DEED BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION BY THE CITY MANAGER OF BLANKET CONVEYANCES BY AND BETWEEN THE CITY OF DENTON AND SPENCER STATION GENERATING COMPANY, L P, AUTHORIZING AND APPROVING THE EXECUTION OF SUCH OTHER AGREEMENTS AND OTHER DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CERTIFICATES, CONTRACTS, ASSIGNMENTS, LICENSES, LEASES, DIRECTIONS, INSTRUM~ENTS, AND STATEMENTS BY THE CITY MANAGER, WHICH ARE INCIDENT OR RELATED 4 EXHIBIT I THERETO, AS SHALL BE REASONABLY DETERMINED BY TI-lB CITY ATTORNEY OR HIS DESIGNEE, CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS MAYOR, ITS CITY COUNCIL, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL BE AUTHORIZED AND EMPOWBKBD TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARB REASONABLY REQUIRED TO CONSLrMM_ATE THIS TRANSACTION, RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL IN FURTHERANCE OF THE FOREGOING TRANSACTIONS, MAKING SUCH FINDINGS AS ARB REQUIRED BY TI-HI PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, AS AMENDED, AND THE FEDERAL ENERGY REGULATORY COMMISSION IMPLEMENTING REGULATIONS, FINDING AND DETERMINING THAT SEVERAL OF SAID AGREEMENTS PERTAIN TO A COMPETITIVE ELECTRIC MATTER AS SET FORTH UNDER THE PROVISIONS OF SECTION 551 086 AND SECTION 552 131 OF THE TEXAS GOVERNMENT CODE, AS AMENDED, FINDING AND DETERMINING THAT TEXAS GOVERNMENT CODE SECTION 252022(a)(15) AND SECTION 2720010) APPLY, ADOPTING SIGNIFICANT FINDINGS, CONCLUSIONS, AND RECITATIONS AS ARE SET FORTH IN THE PREAMBLE OF THIS ORDINANCE, FINDING THAT THE SALE OF THESE ELECTRIC GENERATION RESOURCES OWNED BY THE CITY IN CONNECTION WITH ITS ELECTRIC UTILITY UNDER THE ASSET PURCHASE AGREEMENT ARB NOT ESSENTIAL TO CONTINUED EFFECTIVE UTILITY SERVICE WHEN CONSIDERING THE PURCHASE OF CAPACITY AND ENERGY, AND OTHER ARRANGEMENTS M_ADB BY THE CITY UNDER THE TERMS OF THE TRANSITION POWER AGREEMENT AND OTHER AGREEIVEENTS, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the Caty of Denton, Texas ("Denton") ,s a Home-Rule Cl['y govemed by the consutunon and laws of the State of Texas, and WHEREAS, m accordance wath the provamons of Secuon 551 086 of the Texas Goverument Code, aider due pubhe not,ce being gwen, the Caty Council, a "Pubhc Power Utthty Govermng Body" under Senate Bill 7, has d~scussed, dehberated, and considered the matter, the subject of tins ordinance, m a Closed Meeting of the City Council on the 12th day of June, 2001, after detemmnng by a prelmuna_ty majonty vote of ,ts members, that the cons, deraUon of the ,terns winch are the subject of tins ordinance are related to the competmve acnwty, meindlng commercaal mformanon, winch ,f daselosed, would g,ve advantage to ,ts eompeUtors or prospective eompemors, and WHEREAS, thereafter, after due pubhe notate be,ng gaven, the C,ty Council, proceeded to dascuss~ dehberate, and consader the matter of the transacUons winch are the subject of tins ordmance, m ars Open Meeting on the 12th day of June, 2001, and the Oty Counc,1 proceeded to take final aeUon, and voted m favor of the transaetmns described m said ordinance, as set forth below, and WHEREAS, the Caty Council has further determined that several of those documents to be entered into by and between the Caty of Denton and Spencer StaUon Generating Company, L P, a Delaware Lumted Partnersinp, PG&E Generating Company, LLC, a Delaware Lnmted 5 Lminhty Company, PG&E Trading Holdings, a Delaware L~mlted Lminhty Company, PG&E Energy Trading - Power, L P, a Delaware Lnntted Partnersinp, and other affihates of these entitles, namely the Asset Purchase Agreement, the Transition Power Agreement, the Guarantees related to both of smd agreements, as well as the Contmmng Slte/Interconnectlon Agreement should be excepted from any pubhc d~sclosure, as penmtted by the provlsmns of Section 552 131 of the Texas Government Code, as documents that are reasonably related to a competmve electric matter, the disclosure of winch documents would provide an advantage to the competitors or prospective competitors of Denton Mumclpal Electnc, and WHEREAS, the C~ty Cotmcfl has further determined that it is m the pubhc interest that it should exercise ~ts right under the Texas Government Code to lawfully safeguard and keep certain of these documents sealed, as they are competitive documents and contain competilave elecmc mfonnatton, and WHEREAS, the C~ty Council finds that the sale or other dlsposltton of assets as provided by tins ordinance, does not constitute the entire assets of Denton Mumclpal Electric ("DME"), and WHEREAS, the Ctty Council finds that the sale or other disposition of electnc generation assets does not consist of any part essential to the contmuatmn of effective utility sermce by DME, and WItEREAS, the C~ty Council finds that those electric generation resources which are to be sold as provided by tins ordinance, are no longer needed by DME, and will be replaced by other sources of power, and WHEREAS, the C~ty Council finds that the generatmn resources winch are to be sold are obsolete and inefficient, and WHEREAS, the City Council finds that simultaneously with the conveyance of as eleetnc generation resources, that the City, by a Transition Power Agreement, and other agreementS, shall receive replacement power and energy that is advantageous, more rehable, and cost-effectlve, and WHEREAS, the City Council finds that the transaction as provided by tins ordinance, will not mapatr the ainhty of the City to comply w~th the provlsmns of any of ~ts utahty revenue bonds, as amended, winch are ~ssued and outstanding, and WHEREAS, the City Council constdenng the overall effect of the transactmns set forth w~ttun tins ordinance, is of the conclusion that no essentml pomon of the electric utahty, DME, is being coaveyed, but that the assets conveyed are being snnultaneously replaced by cost- effective, power and energy, m the form of a Transition Power Agreement, with a term of five (5) years, w~th no detriment to the DME eleetnc serrate ratepayers, and WHEREAS, the C~ty Council finds that Sectaon 252 022(a)(15) of the Texas Government Code m apphcable to ti'ns transaction and that competllave b~ddmg law ~s not apphcable to the purchase by the City of electnmty, and WHEREAS, the Caty Courted finds that See~on 272 001(j) of the Texas Government Code ~s apphcable to tins transactaon and that the prowslons of Sectaon 272 001(a) do not apply to ti'ns sale of real property, and WHEREAS, the Caty Counml finds that the sale or exchange of real property, as more pamcularly set forth w~thm flus ordinance, ~s m the best interests ofDME ratepayers, and WHEREAS, Denton desares to sell and asmgn to Spencer Station Generating Company, L P certain fossil fuel and hydro-elecmc generatxng facalmes and certain facahtles and other generating assets associated therewath and ancillary thereto, namely, the Spencer Statton, the Ray Roberts Station, and the Lew~smlle Station, WHEREAS, the C~ty of Denton and PG&E Energy Tradmg - Power, L P, an affihate of the Spencer Stataon Generating Company, L P, desare to enter into an agreement to provade energy capacaty and energy management for Denton, and WHEREAS, the City of Denton desmes to enter into such other agreements wath Spencer StaUon Generating Company, L P and PG&E Energy Tradmg - Power, L P (or their affihates) wluch are mmdent and related to the Asset Purchase Agreement and the Transltaon Power Agreement, and to take such addataonal actions as the Caty Manager shall deterrmne to be necessary and advisable to effectuate the matters set forth herean, NOW THERFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the C~ty Council, hereby approves and authonzes the Caty Manager and the Caty Secretary, to execute and attest respectively, the Asset Purchase Agreement, by and among the City of Denton, Spencer Statton Generating Company, L P, and PG&E Generating Company, LLC, under the terms and condattons being contained m substantaally the form whach is attached hereto as Extnbat A and made a part hereof, with such amendments, changes and add~tmns as the Caty Manager may approve, and the executmn and dehvery thereof on behalf of the C~ty of Denton by or at the dlrectaon of the C~ty Manager shall constitute such approval SECTION 2 That the Caty Council, hereby approves and anthonzes the C~ty Manager and City Secretary, to execute and attest respeettvely, the Trans~taon Power Agreement, by and between the C~ty of Denton and PG&E Energy Trading - Power, L P, under the terms and eonrhttons bemg contained m substauttally the form wl~ch ~s attached hereto as Exlub~t B and made a part hereof, w~th such amendments, changes and addmons as the C~ty Manager may approve, and the executaon and dehvery thereof on behalf of the Caty of Denton by or at the darect~on of the C~ty Manager shall constttute such approval SECTION 3 That the Caty Council, hereby approves and authorizes the Clty Manager and City Secreta~, to execute and attest respecttvely, the Transltaon Power Agreement Guarantee, by and between the City of Denton and PG&E Trading Holdings, LLC, under the terms and condmons being contained m substantially the form winch is attached hereto as Exinblt C and made a part hereof, with such amendments, changes and addmons as the City Manager may approve, and the executton and delivery thereof on behalf of the City of Denton by or at the d~rectaon of the C~ty Manager shall constitute such approval SECTION 4 That the C~ty Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respecttvely, the Bill of Sale, by and between the City of Denton and Spencer Statton Generating Company, L P, under the terms and conditions being contained m substantially the form winch ~s attached hereto as Exinint D and made a part hereof, with such amendments, changes and addmons as the City Manager may approve, and the execution and dehvery thereof on behalf of the City of Denton by or at the dtrectaon of the C~ty Manager shall consttmte such approval SECTION 5 That the Cgy Council, hereby approves and authorizes the Cl~y Manager and C~ty Secretary, to execute and attest respectavely, the Assignment and Assumptaon Agreement, by and between the City of Denton and Spencer Station Generating Company, L P, under the terms and concht~ons bemg contained m substantaally the form winch is attached hereto as Extnb~t E and made a part hereof, with such amendments, changes and addmons as the City Manager may approve, and the execulaon and delivery thereof on behalf of the City of Denton by or at the d~reetaon of the City Manager shall constitute such approval SECTION 6 That the City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respectively, the Contmmng Slte/Interconuectaon Agreement, by md between the City of Denton and Spencer Statton Generating Company, L P, under the terms and condattons bemg contained m substan'aally the form wlueh Is attached hereto as Exinblt F and made a part hereof, wuth such amendments, changes and ad(httons as the City Manager may approve, and the execution and delivery thereof on behalf of the City of Denton by or at the darectlon of the City Manager shall constitute such approval SECTION 7 That the City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respeeUvely, the Easement, License and Attachment Agreement, by and between the Cgy of Denton and Spencer StaUon Generating Company, L P, under the terms and eon&ttons being contained m substantially the form winch is attached hereto as Exhxblt G and made a part hereof, with such amendments, changes and addmons as the C~ty Manager may approve, and the execuUon and dehvery thereof on behalf of the City of Denton by or at the chrectton of the City Manager shall constitute such approval SECTION 8 That the City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respeelavely, the Guarantee, by and between the City of Denton and PG&E Generating Company, LLC, under the terms and condataons being contained m substanttally the form winch ~s attached hereto as Exinb~t H and made a part hereof, with such amendments, changes and addmons as the City Manager may approve, and the execution and dehvery thereof on behalf of the City of Denton by or at the dtrectlon of the City Manager shall constitute such approval SECTION 9 That the C~ty Council, hereby approves and authorizes the City Manager and C~ty Secretary, to execute and attest respectively, the Water Rights Agreement, by and between the C~ty of Dent~n and Spencer Station Generating Company, L P, under the terms and conchtions being contained m substantially the form winch is attached hereto as Exinblt I and made a part hereof, w~th such amendments, changes and adchtmns as the City Manager may approve, and the execution and delivery thereof on behalf of the City of Denton by or at the d~rection of the City Manager shall constitute such approval SECTION 10 That the City Council, hereby approves and authonzes the City Manager and City Secretary, to execute and attest respecttvely, the Reelanned Water Senate and Wastewater Return Agreement, by and between the City of Denton and Spencer Station Generating Company, L P, under the terms and eondmons being contamed m substantially the form winch is attached hereto as Exinbn J and made a part hereof, with such amendments, changes and additions as the City Manager may approve, and the execution and delivery thereof on behalf of the City of Denton by or at the dn'ectlon of the City Manager shall consUmte such approval SECTION 11 That the City Council, hereby approves and authonzes the City Manager and City Secretary, to execute and attest respectively, the Power Transfer Agreement, by and between the City of Denton and PG&E Energy Trachng - Power, L P, under the terms and concht~ons being contained m substantially the form winch is attached hereto as Exinblt K and made a part hereof, with such amendments, changes and adchtaons as the C~ty Manager may approve, and the execution and delivery thereof on behalf of the City of Denton by or at the d~rectien of the City Manager shall constitute such approval SECTION 12 That the City Council, hereby approves and authonzes the City Manager and City Secretary, to execute and attest respectively, the Special Warranty Deed, by and between the City of Denton and Spencer Station Generating Company, L P, under the t~ms and conditions contained m substantially the form winch is attached hereto as Exhibit L and made a part hereof, w~th such amendments, changes and adchtions as the City Manager may approve, and the execution and dehvery thereof on behalf of the City of Denton by or at the d~rection of the City Manager shall constitute such approval SECTION 13 That the City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respectively, the Blanket Conveyances, by and between the City of Denton and Spencer Station Generating Company, L P, under the terms and eondmons being contained m substantially the form winch is attached hereto as Exinint M and made a part hereof, w~th such amendments, changes and adchtaons as the City Manager may approve, and the execution and dehvery thereof on behalf of the City of Denton by or at the dtrection of the City Manager shall constitute such approval 6 9 SECTION 14 That the City Council, hereby approves and authonzes the City Manager and City Secretary to execute and attest respectively, all other documents wluch are incident and related to those agreements referenced above and to take such adchtlonal actaons as the City Manager shall determine to be necessary and advisable to effectuate the matters set forth above SECTION 15 That the City of Denton, the Mayor, the City Manager, the City Attorney or their designees be, and each of them mchvldually hereby m, authonzed and empowered to perform all such acts and obhgat~ons as required w~th respect to the agreements and documents descnbed hereto. ,~ECTION 16 That the City Council, hereby makes the following findings Sectmn 32 of the Public Uiahty Holding Company Act of 1935, as emended ("PUHCA"), and the Federal Energy Regulatory Comnusslon's nnplementmg regulatmns reqmre that the Denton City Council, aS the entity w~th exclusive junschctaon over rates for electricity m the City of Denton, make certain determ,natmns pnor to the transfer of ownersbap and/or operation of the Spencer Generating Plant, the Ray Roberts Dam Project and the Lew~svflle Dam Project to Spencer Station Generating Company, L P so that Spencer Station Generating Company, L P may obtain Exempt Wholesale Generator status 1 The City of Denton hereby determines that allowing the three electric generatang facflmes noted above to be Ehg~ble Facflmes will benefit consumers, is m the pubhc interest and does not vmlate State law SECTION 17 That the Mayor, the City Manager, the City Attorney or their designees be, and each of them mchvldually hereby is, authonzed, empowered and d~rected to negotiate, dehver and perform all such acts and ttungs and to sign all such documents, certificates, contracts, assignments, hcenses, leases, agreements, chrectmns, instruments and statements~ each together w~th such amendments, changes mad addltaons thereto as the Mayor, the City Manager, the City Attorney or thear designees shall determme to be necessary or adwsable to effectuate the matter set forth hereto, any such determmataon to be conclusively ewdenced [by the taking or cansmg to be taken of such action or the execution and dehvery of any such document, certificate, agreement, hcense, lease, chrectmn, lnsmmaent or statement by the Mayor, the City Manager, the City Attorney or their designees , SECTION 18 That all pnor actions taken by the Mayor, the City Manager, the City Attorney or their designees m furtherance of the foregoing matters be and hereby are ratified, approved and authorized m all respects as of the dates and tmaes such actions were taken SECTION 19 That nnmedaately following the execution and delivery of the documents described as the Asset Pumhase Agreement, the Transltaon Power Agreement, the Guarantees incident to both such agreements, and the Continuing Slte/Interconnectmn Agreement, as provzded for m thzs ordinance, the City Secretary is hereby chrected to seal and The terms "Exempt Wholesale Generator," "Ehgable Facflaty" and "State" as used hereto have the same meanm§s estabhshed m PUHCA ? lO maintain smd documents m her custody and control, as documents excepted fi.om pubhc disclosure under the provmmns of Sect~un 552 131 of the Texas Government Code (the "Public Power Exception"), unless otherwise lawfully ordered to disclose smd documents SECTION 20 That the expenchture of funds as prowded for m thts ordinance is hereby authonzed SECTION 21 That tins ordinance shall become effective zmme&ately upon its passage and approval PASSED AND APPROVBD tins the day of ,2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY By APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY S \Our Document\Ordinances\01 ~Eleetnc Partmt Dtvest~tu~ and A*qmsmon Ordmanco 5 doe 8 11 AGENDA DATE. June 12, 2001 DEPARTMENT' Engineering CM/DCM/ACM Dave Hill, 349-8314 SUBJECT Consider adoptmn an ordinance approwng a letter real estate agreement between the C~ty of Denton and Umon Pacffic R0alroad Company relating to the purchase of approximately 190,400 square feet of land located between E McK~uney and Prame and adjacent to Umon Pacffic raft hncs for use as parking and luke and b~ke trails and related purposes, authorizing the expenditure of funds therefore, and prowdmg an effective date BACKGROUND In December of 1990 the C~ty of Denton acqmrcd two tracts from Moore Business Forms, adjacent to the east hnc of the Umon Pacffic Railroad Company property A 4 483 acre tract on the north s~de of H~ckory Street wluch currently serves the Pohce Department, Munm~pal Court, Engineering, Human Resources, Technology Services, Customer Service and Momson Mflhng Also a 1 125 acre tract on the south s~de of Hmkory Street serves Facflmes Management and provides off-street parking for the northern famhty(C~ty Hall East) At the t~mc the C~ty took possessmn of the Moore property we were also assigned property leases that Moore Business Forms had of UP Railroad property Moore were usmg the tracts as off-street parking dunng their period of operation The C~ty has maintained the leases of the parking areas over the years and have focused our concerns on preserving off-street parking options for the building factht~es, espemally as their utthzat~on has steadily increased In addmon to purchasing parcels necessary to preserve our long-term parking interests we also have the opportumty to acqmre the underlying fee owncrslup interests m sections of Sycamore Street, H~ckory Street and w~th~n the entirety of Radroad Avenue As a component of the real estate transactmn we will also acqurre property along the north s~de of West Prame Street which will prowde an physmal hnk to the H~ke & B~ke trail and the C~ty owned parcels to the north, C~ty Hall East etc Tlus ~s ~mportant to the overall plans of a future trail head facthty m the area OPTIONS 1 Approve the letter real estate agreement, or 2 Demal, or 3 Table for future cons~deratmn RECOMMENDATION Staff recommends approval of the Letter Real Estate Agreement ESTIMATED PROJECT SCHEDULE Not apphcabl¢ PRIOR ACTION/REVIEW Briefing to C~ty Council - June 5, 2001 FISCAL INFORMATION Contract price of $201,700 for the various parcels plus closing costs ATTACHMENTS ~ Location map ~ Draft ordinance ~ Letter real estate agreement Prepared by Paul Wflhamson Real Estate & Capital Support Manager Respectfully submltted~/ Charles F~edler, D~rector Eng~neenng Department 2 , Location Map RU'rH ORDINANCE NO AN ORDINANCE APPROVING A LETTER REAL ESTATE AGREEMENT BETWEEN THE CITY OF DENTON AND UNION PACIFIC RAILROAD COMPANY RELATING TO THE PURCHASE OF APPROX]~ViATELY 190,400 SQUARE FEET OF LAND LOCATED BETWEEN E MCKINNEY AND PRAIRIE AND ADJACENT TO UNION PACIFIC RAIL LINES FOR USE AS PARKING AND HIKE AND BIKE TRAILS AND RELATED PURPOSES, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 The Ctty Manager, or bas designee, is hereby authorized to execute a Letter Real Estate Agreement between the City of Denton and the Union Pacific Rmlroad in substantially the form of the agreement which is attached to and made a part ofth~s ordinance for all purposes (the "Agreement"), for the purchase of approximately 190,400 square feet of land for use as parking and bake and bike trmls and related purposes SECTION 2 The City Manager is authorized to make the expendamres as set forth m the Agreement SECTION 3 Tbas ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED tins the day of ,2001 EULINE BROCK, MAYOR ATTEST, JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY ~TIJN O[a 'Bi 0~ ~2 FR IJPRR CONT AND R/E 402 99"? ~602 TO 31940~498951 P 0~70g UNION PACIFIC RAILROAD COMPANY Real Estate Department M W Cl~a=e~ T K Love June 7, 2001 Folder l S73.22 DUPUCATE ORIGINAl. CITY OF DENTON TEXAS 215 EAST MCKINNEY DENTON, TEXAS 76201 This letter ("Agreement") confirms our understandings covering the sale byUmon Pactfic Ra~koad Company ("Seller") to the City of Denton ("Buyer") of Seller's interest in certain real property ("ProperS'') s~tuated in the City of Denton, County of Denton, State of Texas Seller agrees to sell and Buyer agrees to buy the Property on the following terms and condmons D~cr~pt~on of Property 1 1 The Property ~s approximately 190,400 square feet as shown on the print attached hereto as Exhibit A and made a part hereof The legal description of the Property will be determined by an 'as budt' ALTA survey ("Survey") ot the Property Survey shall include a metes and bounds description of the Property and ~hall be performed by a Registered Profesetenal Surveyor heensed In the State of Texas In addmon, the Survey shall include a separate metes and bounds legal description of the easement area tdentlfied m section 6 and generally depIcted as "Track Easement Reservation" on thc attached Exhibit A Survey shall be arranged by Buyer at Buyer's sole expense 1 2 Before flnahzmg the Survey, Buyer shall submit the Survey to Seller for review and approval Buyer shall dehver a cemfied copy of the completed Survey to Seller w~thm St,.--ty (60) days ("Survey Permd") Delay m obtaining or furnishing the survey to Seller shall m no event g~ve Buyer the nght to extend the Closing Date (as defined m Section $) 2 Snle Price 2 I The sale price ("Sale Prlce") for the Property shal! be Two Hundred One Thousand Seven Hundred ~nd 00/100ths Dollars ($201,700 00), computed as follows Sale Area A 34,400 SF x $0 00/SF -- $ 0 00 SaleAreaB 50,400 SF x $2 O0/SF = $100,S00 O0 SaleAreaC 27,600SF x $I 50/SF -- $ 41,40000 SaleAreaD 32,000 SF x $I 50/SF = $ 48,000 00 ROADWAYS 46,000 SF x $0 25/SF = $ 11,500 00 Sale Pace $201,700 00 ~IJN 08 '01 OB 33 FR IJPRR CONT AN~ R?E 402 ~97 3602 TO 919403498951 P 04/09 The sale pnee ("Sale Price") £or the property shall be Two Hundred One Thousand Seven l-lundred and 00/100tbs Dollars (:5201,700 00), regardJess of the area disclosed by the survey On the date Buyer signs this Agreement, Buyer w~ll deposit with a title company of Buy/r's selection ("Title Company"), the nonrefundable sum of :5100 00 as consideration for the Feasibility Review Period as prowdcd in Section 2, (the "Deposit") On or before the Closing Date (as defined it~ Section 8) Buyer shall deliver the balance of the Sale price, less the Deposit, to the Title Company Feaaibfltty Revlew/~l~ht of Entr~ For six~ (503 days from the date of execution o£ this Agreemen~ by Buyer ("Feastb]llty P, evlcw ?enod"), Buyer and its agents and contractors may enter upon the Property to perform enwro0mental audits, soil tests~ engineering and feasibfll~.y studies of the Proper~ Within thirt~ (30) days after thc Effective Date, Seller shall deliver to Buyer copies of all environmental audits, soil tests, engineering and feasib~hty s~udles, ~f any, which are contained m its currant Real ]~state files on the Property If the results of such audits, tests or studies, or Buyer'~ review of ~.ltle or any other mat~ers relating to the Prop~'~ are unsatisfactor~, Buyer may terminate this A~eement by g~wn§ Seller wr~tt~ nctwe before the end of the Feasibility Review Period If no such written nct~ce of termination ~s before the end of the ~'eastblh~ Review Period, ~e Property will be deemed suitable Buyer's pu~'poses in the event of such terminal. Ion by Buyer, then Buyer ~hal] surrender to Seller copies of all andlts, soils, engineering and any other reports prepnred for Buyer pertaining to the Property and such reports will become the sole property of Seller without cost or expense of Seller and this Agreement w~ll terminate without any £urther force and effect, and without further obhgatlon o~' either part~ to the other Buyer's right to enter upon d~e Property pursuant to Section 3 1 ~s subject to the following (a) 1o the extent allowable under Texas law, Buyer will indemnify, defend and save harmless Seller and/or Seller's affihates (Seller's affiliates means any corporation which directly or ntd~rectly controls or is con~rolled by or is under common control with Seller), their officers, agents and employees, against and from any and all liability, loss, costs and expense of whatsoever nature growing out of personal injury to or death of persons whomsoever, or loss or destruction of or damage to property whatsoever, where such personal ~ury, death, loss, destruction or damage arises m connection with the entry upon the Property by Buyer, Its agents or contractors prior tO Closing (b) To the extent allowable under Texas law, Buyer and Buyer's agents and contractors (collectively "Gontraclors") will maintain in confidence all information, reports, and evaluations generated in connection with any environmental assessments mid will not make disclosure without the prior written consent of Seller However, Seller understands that Buyer is subject 'to the Texas Pubhc Information Act, being ChapterS51 oftheTexasOovenunentCode IfBuyer dlscovers hazardous or toxic substances or materials, Buyer will immediately notify Seller If Buyer or Its consultants behaves that it is required under the law to report the results of any of its environmental audits to any local, state or federal agency regulating hazardous 2 ~'IJN 08 ~B1 B8 3~ ~R IJPRR CONT AND R?E 4[~2 997 ]602 TO 9194014989S1 P 05/09 materials, Buyer shall first prowde written not,ce to Seller, and Seller may elect to make such report ,t~elt (c) Buyer will promptly deliver to Seller the results and cop~e~ ofarly and all repofls, evaluations, tests and s~d~es generated m connection w~ any environmental asses~en~ ~or m the ~ssuaace of any final environmental r~o~, Seller have ~e op~mty to make ~ommen~, pose questions and offer recommendations to ~e C~actor pmp~m~ ~e repos (d) Buyer agrees to ]ndemm~, defend and hold ha~less Sell~ against ~d from ~y and all [m~s, alums, d~, costs a~d e~penses of whatsoever n~e m any way connected with or ~owmg out of ~y work done, labor peffo~ed or matertals ~mtshed st the Prope~ on behalf of Buyer prior to Closing (e) If ~e sale of the Property does not close, Buyer wall, ~ soon as possible ~d at Buyer's ~ole expense, restore the Prope~ to the zame condition tt w~ m tmmedmtely prior to the t~me Buyer ~tered ~e Prope~, fading m which Sell~ may pedorm the work of~storatlon ~d Buyer will re,tab.sc Seller w~m th~ (30) day~ a~er rend~on of bill by Seller 3 3 Abs~ce of m~ker~ ~s not a wa~nW by Seller of no subsudace ~ns~lat~ons Flb~ optic systems, pipehnes, mid o~ structures may be buried on the ~ope~ Before any d~ggm~drdhn~excavat~o~ ~e following procedures will be followed by Buyer and Buye/s Contractors (a) Pr~ec~on o~y fiber optic cable systems ~s of exUeme ~mpomce s~nce any br~ could d~srupt se~ to users resulting m bus~ness ~te~ptl~ ~d loss of revenue ~d profits Buyer w~ll telephone 1-800-336-9193 (a ~-hour, 7-day number for ~rgency ;ails) d~mg no.al business hours (7 A M to 9 P M, CT, Monday- Friday, except holidays) ~ dete~me ~f ~y fiber optic cable ~s buried on the Prope~ I~ ~t ~s detemm~ ~at fiber opUc cable ~s buried on fl~e ~ope~, Buyer shall promptly mfo~ Seller, at fl~e address at the top oF ~[s Agreemen~ of ~e results o~ ~ ~nve~lgation (b) Be[ore drdlmg o~ excavaung ~ mech~sz~ eqmpm~ng Buyer will ~xplore hand tools to a d~ of at least eight (8) f~t below the surface or w~ll use ~u~mble d~e~on eqmpment 3 4 No~{thst~ding ~y provis~ons in thug A~eement to the contr~, if this Agreement re.mated for ~y re.on whatsoev~, Buy~ w~i[ rema, n obhgated to comply w~th ~he provmons oi Sections 3 I ~d 3 2 and Seller wall retain all of its remedies for Buyer's default under Se~ons 3 1 and 3 2 4 As ~ Sale - Release 4 I Prior to the Closing Date, Buyer w,ll have the oppo~mW to m~ke such msp~t~ons of~e Prope~ ~d ma~ers related ~ereto as Buyer des~es, ~nclud~ng, w~thout hmitat~on, govemen~l hws and m~lat~ons ~o which the Prepay ~s subject, the ~tle to the Prop~, and the suitab~hW or fi~ess of the Prope~ for Buyer's pmposud use Buyer acknowledges and a~ees ~at ~e Prepay is to be sold and accepted by Buyer m ~ "AS IS" condition, 3 ~TU~ 01~ 'O'L 0~t ~ FR IIpRR CONT ~ND R?E 40~ ~? ~F~O~ TO ~.940~4~$~- P with all faults, and Buyer acknowledges that the Properly may have been used for railroad and/or ,ndustnal purposes, among other useq Buyer agrees that any reformation Buyer may receive from Seller or its agents concerning the Property (including, but not limited to, any lease or other document, engmecnng study or envtronmental asse~gment) is furnished on the eondmon that Buyer will make an independent verification et the accuracy of the m formation Seller does not make any representatmns or warrantms of any kind whatsoever, e,ther express or implied, with respect to the Property, m particular, without lnmtat~on, Seller makes no representations or warrant~es with respect to the use, condition, title, occupation or management of the Property, or comphance w~th appheab]e statutes, laws, codes, ordinances, regulations, requirements (collectively "Condition of the Property") Buyer acknowledges that ~t i~ entering rote this Agreement on the basis of Buyer's own independent investigation of the physmal and environmental condmons of the Property Buyer assumes the risk that adverse physical and environmental condmons may not have been revealed by its mvestlgatlou 4 2 FROM AND AFTER CLOSING, BUYER WILL RELEASE SELLER, 1TS AFFILIATES, TI-IEII~ EMPLOYEES, AGENTS, OFFICERS, SUCCESSORS AND ASSIGNS, FROM AND AGAINST ANY AND ALL SUITS, ACTIONS, CAUSES OF ACTION, LEGAL OR ADMII~STRATIVE PROCEEDINGS, CLAIMS, DEMANDS, FIN'ES, PUNITIVE DAMAGES, LOSSES, COSTS, LIABILITIES AND EXPENSES, INCLUDING ATTORNEYS' FEES, IN ANY WAY ARISING OUT OF OR CONNECTED WITH 'I'B'~ KNOWN OR UNKNOWN CONDITION OF THE PROPERTY (II~CLUDING, WITHOUT LIMITATION, ANY CONTAMINATION IN, ON, UNDIL~R OR ADJACENT TO TI-IE PROPERTY BY A.NY HAZARDOUS OR TOXIC SUBSTANCE OR MATERIAL), OR ANY FEDERAL, STATE OR LOCAL LAW, ORDINANCE, RULE OR REGULATION AFPLICABLE THERETO, INCLUDING, WITHOUT LIMITATION, THE TOXIC SUBSTANCES CON 1 ROL ACT, ~ COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT, AND TI-IE RESOURCE CONSERVATION AND RECOVERY ACT THE FOREGOING WILL APPLY REGARDLESS OF ANY NEGLIGENCE OR STRICT LIABILITY OF SELLER, ITS A.10'J~ltJ. ATES, OR THE~ EIVIPLOYEES, AGENTS OR OFFICERS 4 3 The provisions of this Section 4 will survive the delivery of the deed and will bind and inure to the benefit of the panics hereto, thetr hears, successors and assigns 5 Escrow, T~tle Insurance and Abstrnct of Title 5 l S~ller will not furnish title insurance or an abstraet oftttle to the Property Buyer may, at its sole optmn and expense, obtain a preltmmary title repels ("?TR') m order to revmw the status oft~tle to the Property during the Feas~bflmd Review Permd If Buyer obtains a P'i-R, a copy wall be dehvered to Seller Seller has no obhgat~on to cure any title defects or to a~,s~st Buyer m obtaining tltle ~nsurancc $ 2 If Buyer desires title insurance, Buyer shall pay the cost et any title insurance and any endorsemants or changes to the title pohcy desired by Buyer If an escrow is used, Buyer shall pay any and all fees relating to the eqcrow, including, but not limited to, any C,ty and/or County Transfer Taxes and recording fees 4 JUN I~B '01 08 34 FR LIPBR CONT AND R/B 402 99? 3E~02 TO 929483,498952 P 8?/'89 Form of Deed; Reservations 6 1 At Closing, Seller will Wans£er Seller's interest in the Proper~y to Buyer by Deed W~hout W~W, subje~ to ail ou~mndmg rights, whether or not o~ r~ord Sell~ wdl rese~e ~om the transfer all minerals ~d mme~l nghl~ w~thovt right of surface ent~ 6 2 Seller shall remm o~rah~p of all railroad ~ackage and track appurtenances now located upo~ ~ong ~d across ~c Sale Area A, ~d shall rescue to ~clf, ~ successors ~d a pe~etual easement ~ f~t (30') m w~d~ for the cons~on, r~ona~mn, operat*on, repmr, renewal and, ~f neces~, removal ot radroad ~mckaga ~d Wack appuaenances along, across, under and wxthm ~e '~rack Easem~ Re~atmn" ~ea ~hown on A, tog~er w~th a right of mgre~s and cgre~s to ~he rea~ed e~ement over and across Prope~ for pu~oses of maintenance ~d op~Tatmn, as re~onably necessa~ Ex~tmg Ag~ements If ~y lease or 'Use R ~u" (hcense or other rights to use the Prope~) aff~ only Prope~ (whe~er identified by Seller before or ~er execution or.ts A~eement), Seller's n~ts ~d obhga~ons und~ any such ~dennfied lease or Use ~ght wall be ~sl~ed lo ~d assumed by Buyer at or a~er Closing Closing - Default 8 1 Closing wall o~ on or before August 30, 2001 ("Closing Date") ~e Closing wall be deemed to ~cur upon payment oflhe 8fle Pn~ by eah~er's or cen~fi~ check ~d dehve~ of~e de~ All Closing eoas, including ~ansfer t~es ~d exe~se ~es, ffmy, will be pa~d by Buyeh except that each party shall pay ~ts own anomeys fees 8 2 If Closing fads m oc~r due to default by Seller or B~er, the non-defaulting p~ may e~ther enforce sp~ffie peffom~ce of th~s A~eement or te~mate ~s Ag~ement by ~en not,ce In ~e ev~t of temmatmn by ~zaen not,ce by the non-dffaultmg pa~, ne~er $ell~ nor Buyer will have any ~er habdlw hereund~ Pro~fiona Lo~l prope~ t~es, ffany, ~d other ~sessm~ts due ~d payable ~n ~c year of Closing, as well ~ renal under any le~es or Use ~gh~ that ~e being asst~ed, w~ll be prorated ~ of~e ~te of Closing However, Seller sh~l be re*pons~ble for ~y dehnquent local prop~y t~es Buyer w~ll assume any msmllm~ts of assessments not yet due and payable However, Seller rep~sen~ that m i~ ~owledge ~ere ~e no such assessments against ~e Property Negotiations - Brokers ~d ~mden Negotiations relative to ~s maroon have been c~ on by bo~ pm~es w~out ~e mte~ent~on of any person whmh will give nsc to ~y vfl~d elmm agmn~t e~ther of the p~es h~e:o, for bmkenge eomm~ssmn or o~er like payment Each p~ hereto shall mdmm~ ~d hold h~less · e o~er p~ against ~d from ~y and all clams for brokerage eomm~ssmn or o~ h~ pa~enm arming out of ~e ~nsactmn contemplated by ~s A~eem~t and o~oned by ~e mdemm~mg par~ JUN 00 ~01 08 ~ ~R UPRR CONT AND R/E ~02 99? B60~ TO 91940~4959~1 P OB×OB 11 Subdlvmon/Plarting Compliance It may be necessary to comply with local or state subdlvlsiou or platting laws or regulatinns prior to C!osmg All necessary apphcatlons, map~ and other requirements to comply with this requirement will be oompleted by Buyer at Buyer's sole cost and expense, and are subject to review and approval b~ Seller before fihng If Buyer falls to comply with subdivision requirements prior to the Closing D~te, or If ~y proposed subdivision plat or parcel map contains condmons affecting Seller, the P~operty prior to Closing, or other real property owned by Seller, then Seller, in its sole and absolute discretion, may terminate this Agreement Seller is not obligated to extend the Closing Date due to Buyer's failure to comply w~th subdivision or platting requirements prior to the Closing Date 12 Mortgage Release I£~he Property is subject to a blanket mortgage granted by Seller or a corporate predecessor of Seller, Seller will obtain a release within approximately slx (6) months after Closing Seller shall provide the Title Company an indemnification m order that that Title Company may issue a policy to Buyer without listing any mortgages put on the Property by Seller or its predecessors in interest 13 Efl'eetwe Date. The "Effective Date" of this Agreement is the date of signature of the parties as set forth below 14 Not~ee' A~y notice or other commumcatlon required or permitted to be given under this Agreement CNotiees") shall be in writing and shall be (0 personally delivered, (u) delivered by a reputable overnight courier, or (iii) delivered by certified mail, remm receipt requested and deposited In the U S Mall, pos~ge prepaid Teleeopy not~ces shah be deemed valid only to the extent they are (a) actually received by the individual to whom addressed and (b) followed by delivery of actual not, ce lnlthe manner daserlbed above within three (3) business days thereafter Notices shall be deemed received at the earlier of actual receipt or 0) one (1) business day after deposit with an overnight courier as evidenced by a receipt ofdeposg; or (ii) three (3) business days following deposit in the U S Mall, as evidenced by a return receipt Notlceb ~hall be directed to the parties at thmr respective adtltesses shown below, or such other addreas as either party may, from time to t~me, specify in writing to the other m the manner described above If m Seller ~q'ION PACIFIC RAILROAD COMPANY ATTN Tony Love Facsimile (402) 997-3601 1800 Farnam St Omaha, NE 68179 If to Buyer City of Denton, Texas ATTN Mike Conduff, City Mgr Facsimile (940) 382-7923 215 McKinney Denton, Texas 76201 6 21JN OB '02 08 34 FR IJPR~ CONT AND ~/E 402 ~? 3602 TO 9294B~4S8952 P 09/0~ 15 Offer Thls of.r~r shall continue m fi~ll force and until June 20, 2001 In the event this offer ,s not accepted by tho Buyer on or before June 20, 2001, then this offer shall be nu]l and void If you agree v~th the foregoing terms and condItions with respect to 'die purchase of the Property, please red,cate your acceptance of these terms and conditions by signing in the accepvance space provided below and returning the copy marked "Duplicate Original - Railroad Copy" to Dan Le~.~ at the address hsted at the top of this letter If you should have any questions, please call Dan Le~s at (402) 997.3574 Smcerely, Tony K Love D~reetor - Real Estate Dated J'oss~ ~ 25n0/ 1800 Famam ,Street Omaha, Nebraska 68102 ACCEPTED AND AGREED THIS __ DAY OF , 2001 CITY OF DENTON, TEXAS By Mike Conduff,"Clty Manager APPROVED AS TO FORM HERBERT L PROUTY, CITY ATTORNEY By. TOTAL PAGE 89 ~ Agenda No ~ AGENDA INFORMATION SHEET AGENDA DATE: June 12, 2001 DEPARTMI~NT: Englneenng CM/DCM/ACM: Dave Hall, 349-8314 SUBJECT Consider adoOtl0n of an ordinance approvang a correction deed between the C~ty of Denton and Umon Pacafic RailrOad Company relating to a hne sale agreement dated July 2, 1993 for Umon Paclfic's Denton BranCh Rml Line between Milepost 721 72 at Denton, Texas, and Milepost 729 5 at Coors, Texas, and prbvadang an effectave date BAC ZGaO__iL When the Umon Pacafic Railroad Company quatclalmed their surface mterest to the Coty of Denton in July of 19931 as part of the Interim Rail Banking Program they inadvertently ancluded a section of trackage that ~as still being actively used by their local train operations, switching and stormg raft cars etc In 1995,1 the UP Railroad d~scovered what they understood to be an error in the original grant~a.n, d since that tm~e have asked that the City of Denton correct the deed to support the original antent or'the 1993 transactaon S~nee 1995 the C~ty of Denton staff has also been pursmng a sale of UP Railroad parcels an ve~ close proxamlty to the tract granted to thc City by mast~ake In 1~995~ it was~our h~ope, s to reconcile these transactaons concurrently along wath related ~ssues in the ~mmccaate area ~le relocaung the turn-of-the-century warehouse to an area we would be purchasing from them along with relocating their stamne area and storage yard to another location) We entered ~nto some leasing arrangements to bridge t~ml~g and resouree"allocataon constraints as a short-term solution Recently, the UP Railroad has demonstrated a heaghtened interest to finahze these outstanding transactions OPTIONS 1 Approve the correction deed, or 2 Denial, or 3 Tabl~ for future cons~derataon RECOMMI~NDATION Staff recommends approval of the correetaon deed ESTIMATID PROJECT SCHEDULE Not appheal~le PRIOR ACTION/REVIEW Briefing to City Council - June 5, 2001 FISCAL INFORMATION Not applicable ATTACHMENTS ~ Location map ~ Draft ordinance ~ Correction deed Prepared by Paul Wllhamson Real Estate & Capital Support Manager Charles Fledler, Director Engineering Department Location Map - RUTH S \Our Docurn~nts\Ord~nance$\Ol\Ulllon Pacific Correction Deed Ordinance doc ORDINANCE NO AN ORDINANCE APPROVING A CORRECTION DEED BETWEEN THE CITY OF DENTON AND UNION PACIFIC RAILROAD COMPANY RELATING TO A LINE SALE AGREEMENT DATED JULY 2, 1993 FOR UNION PACIFIC'S DENTON BRANCH RAIL LINE BETWEEN MILEPOST 721 72 AT DENTON, TEXAS, AND MILEPOST 729 5 AT COORS, TEXAS, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 The Mayor, or Mayor Pro Tern, ~s hereby authorized to execute a correct~on deed between the C~ty of Denton and the Umon Pacffic Railroad in substanUally the form of the correct,on deed whach ~s attached to and made a part of flus ordinance for all purposes, which correct~on deed ~s related to a Line Sale Agreement dated July 2, 1993 for Umon Paeffic's Denton Branch raft lme between milepost 721 72 at Denton, Texas and milepost 729 5 at Coors, Texas SECTION 2 Th~s ordinance shall become effective immediately upon ~ts passage and approval PASSED AND APPROVED tlus the day of ., 2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY FROM ¢ITV OF DENTON ;ITTY FRX NO 940:~82792~ 08-04-81 STATE OF TEXAS ) ) ss COUNTY OF DENTON ) 1374-30 CORRECTION QUITCLAIM DEED UNION PACIFIC RAILROAD COMPANY, a Delaware corporabon, successor ~n ~nterest by merger to Umon Pacrfic Railroad Company, a Utah corporation and M~ssour[ Pacific Railroad Company, a Delaware corporabon, ("Grantor"), ~n consideration of the sum of One Dollar ($1 00) and other valuable constderat~on, to ~t duly pa~d, the receipt whereof is hereby acknowledged, does hereby REMISE, RELEASE and forever QUITCLAIM unto THE CITY OF DENTON, TEXAS, a Texas muntc~pahty, ("Grantee") and unto ~ts successors and assigns forever, all of Grantor's right t~tle, mterest, estate, claim and demand, both at law and ~n equity, of, m and to the real estate underlying the Grantor's Denton Branch between M~lepost 721 72 at Denton Texas, and Milepost 729 5 at Coors, Texas, as such property (the "Realty") ~s located ~n Denton County, Texas, and as more particularly described ~n Exhibit A, hereto attached and hereby made a part hereof RESERVING, unto the Grantor, ~ts successors and assigns, an EASEMENT on, along across and under the Realty for the construction, maintenance and operabon of existing or future coal slurry p~pehnes or fiber optic fac~llbes, together w~th the nght of ~ngress and egress thereto, for the maintenance, operation, repair, renewal, reconstruction, and, [f necessary, removal of such facihbes located on the Realty RESERVING ALSO unto Grantor, ~ts successors and assigns, forever, all minerals and all tumoral rights of every k~nd and character now known to ex~st or hereafter discovered underlying the Realty, ~nclud~ng w~thout bruiting the generality of the foregomg, o~1 and gas nghts thereto, together w~th the sole, exclusive and perpetual ngl~t to explore for, remove and d~spose of sa~d mmerals by any means or methods suitable to the Grantor its successors and assigns, but without entenng upon or using the surface of the Realty, and m such manner as not to damage the surface of the Realty, or to ~nterfere w~th the use thereof by the Grantee ~ts successors and asstgns, PROVIDED, however, that ~f ruling exploration or related acbwt~es or operations by the Grantor. or ~ts successors or assigns, result in cost or expenses to the Grantee In connection with Grantee's ownership of the Realty, such cost and expense shall be pa~d to Grantee within fifteen days of the receipt of the mineral interest owner(s) of a notice of the cost or expense, and PROVIDED, further, that m the event that such mlmng operations unreasonably ~nterfere w~th Grantee's use of the Realty, the Grantor, or ~ts successors and assigns, shall bear all reasonable costs that may be recurred by Grantee m order to facilitate Grantor's actlwtles Th~s Deed ~s made SUBJECT TO I All of the terms and cond~bons contained m that certain Line Sale Contract between Grantor and Grantee dated July 2, 1993 2 The condition that all taxes and all assessments lewed upon or assessed against the Realty for any period or time prior to and including the Gate of th~s deed shall be pa~d by the Grantor, that all taxes and all assessments levied upon or assessed against the Realty for any period or t~me after the date of th~s deed shall be payable by the Grantee, and that the Grantee assumes and agrees to pay, or to reimburse the Grantor for If pa~d by It all such taxes and assessments for the penod of brae after the date of th~s deed 3 The terms and conditions contained m the Order from the Interstate Commerce Commission in Docket No AB-3 (Sub-No 99X), that was decided April 15, 1992, and served April 27, 1992, that authorized the Grantor to d~scontmue operabon over the line of railroad described above As part of the aforesaid authonzat~on served by the Commission, the Commission ~mposed a rail-bank mtenm tra~l use condition pursuant to Section 8 (d) of the National Trails System Act, 1(i U S C § 1247 (d) 4 All other conditions, restrictions, covenants, reservations, easements, superior nghts and encumbrances affecting the Realty whether recorded or unrecorded 5 To the extent allowed by law, Grantor agrees to indemnify and hold harmless Grantee, ~ts officers, ~ts affihates and their officers, and Grantee's agents and employees, against and from any and all hab~hty, loss, damage, claims, demands, costs and expenses, of whatsoever nature. ~ncludmg court costs and attorney's fees, for which Grantor, or any third party which has or had a contractual relationship w~th Grantor, may be held liable or responsible under State and Federal enwronmental laws and which are associated in whole or m part w~th the hne and realty conveyed by Grantor to Grantee The above ~ndemnlficatlon is enforceable between Grantor and Grantee only, and shall not inure to the benefit of any third party, ~nclud~ng wltl~out limitation, subsequent purchasers, assignees, or lessees, and shall not run w~th the land G ~LAWADM~PAR~ML\1374-30 C~tyofOent=n TX QCD doc 2 FROM CITV OF DENTON ATTV FfiX NO 940~$2792~ ~$-04-01 01 $5P P 1L THIS QUITCLAIM IS MADE ON AN "AS IS WHERE IS" BASIS WITHOUT ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED, CONCERNING THE CONDITION OF THE REALTY, EXCEPT AS OTHERWISE STATED IN THE LINE SALE CONTRACT BETWEEN GRANTOR AND GRANTEE, DATED JULY 2, 1993, AND GRANTEE HEREBY SPECIFICALLY WAIVES ANY IMPLIED WARRANTIES PROVIDED FOR BY TEXAS LAW (IF ANY), INCLUDING ANY AND ALL WARRANTIES REGARDING FITNESS FOR ANY PARTICULAR USE OR PURPOSE WHATSOEVER Th~s Correct,on Quitclaim Deed ~s gwen in substitution for and correction of the Quitclaim Deed dated August 9, 1993 and filed for record on August 24, 1993 as County Clerk Number 93.R0058485 ~n the Real Property Records of Denton County, Texas Any ~ncons~stency between the terms of the deed dated August 9, 1993 and the terms of th~s Correction Quitclaim Deed shall be resolved ~n accordance w~th the terms of th~s Correct,on Quitclaim Deed This Correcbon Quitclaim Deed shall be deemed to be controlhng and to supersede the deed dated August 9, 1993 IN WlTiN~ES$ WHEREOF, the Grantor has caused this Deed to be duly executed as of the day of .._J ~, '~.. ,2001 Attest/, .., , / .~ UNION PACIFIC RAILROAD COMPANY A/ss~sta~t Secretary Title (Seal) THE CITY OF DENTON, TEXAS, a Texas mumc~pahty does hereby consent and agree to all of the terms of the foregoing Correction Quitclaim Deed and does hereby quitclaim and reconvey to Union Pacific Railroad Company, a DeLaware corporation, any interest inconsistent therewith conveyed to it by the QuitclaIm Deed dated August 9, 1993 Attest THE CITY OF DENTON TEXAS By -- City Clerk Mayor G ~J~,WADM~PAR~JML~1374-30 C~t¥ofDenton TX QCD doc 3 ACKNOWLEDGMENT STATE OF NEBRASKA ) ) ss COUNTY OF DOUGLAS ) On --~ '~'''~-'' I 2001, before me a Notary Pubhc in and for and ~..I Y'-t~o~, who are t and the Assistant Secretary, respectively, of Union Pacific Radroad Company, a Delaware corporabon, and who are personally known to me (or proved to me on the bas~s of sabsfactory ewdence) to be the persons whose names are subscribed to m the w~thin instrument, and acknowledged to me that they executed the same ~n their authonzed capaclbes, and that by their s~gnatures on the instrument the persons, or the enbty upon behalf of which the persons acted, executed the instrument WITNESS my hand and official seal (...) ~lotary Public (Seal)~ O ~I_AWADM~PAR~JML\1374.~0 C~tyofDenton TX QCD d=c 4 ACKNOWLEDGEMENT STATE OF TEXAS ) ) ss COUNTY OF DENTON ) The foregoing instrument was acknowledged on the . day of _, 2001, before me, a Nota~/Public duly commissioned, quahfied and acting, w~thtn and for the said County and State, by , to me personally known, who stated that he/she ~s the Mayor of the The C~ty of Denton, Texas and that he/she ~s duly authonzed ~n his/her capacity to execute the foregoing instrument for and m the name and behalf of sa~d C~ty 5 UNIONI PACIFIC RAILROAD COMPANY Denton County, Texas EXHIBIT "A" All right, btle and interest m and to the right of way, ballast and bridges of the al~ancloned portion of the Denton Branch of the Un~on Pacific Railroad Company ~n Denton County, Texas, as said ,line extends in a southeasterly direction from a hne being parallel w~th and northerly 50 00 feet, as measured at right angles, from the northerly line of Prame Street, 60 00 feet wide, as onglhally established, to a point 718 70 feet southerly of the north hne of H H Swisher Sudsy, as measured along the centerhne of sa~d abandoned lane, sa~cl point being at englneenng station 1509756 3, in, over and across the following legal subd~wslons Jasper Addition to/he City of Denton (H Sisco - H R Abst 1184') Moores ACldltlon to the City Of Denton ( H Slsco - H R Abst 1184') Alex Robertson Add~bon to the City of Denton (A Hill - H R Abst 623*) S C Hi.m-H R (Abst 616") W R Teague- H R (Abst 1266") Mary L Austin Gectmon 52 - M E & P R R Co (R Hopkins H R Abst 1694") J S Taft-H R (Abst 1256') Joseph White - H R (Abst 1433') Section46- M E & P R R Co (D Hough H R Abst 646') D Lambert-H R (Abst 784*) Secbon 47 - M E P & P R R Co (Abst 950*) Gideon Walker- H R (Abst 1330') s H Morgan-HR (Sectlon39-M E &PRR Co Abst 911') L H Bates-H R (Abst 204*) J P Walton- H R (Abst 1389') H Gamson- H R (Abst 507*) T W Jenkins - H R (Abet 1376') Thcs White Sr - H R (Abst 1375') Thcs White Suwey (Abst 1375') H H SwlaherSuwey(Abst 1220') *Names and/or Abstract Nos from State of Texas General Land Offi~ map compded 1945 Excepting therefrom those certain parcels of land as heretofore acquired by Dallas & Wichita Railroad Company (predecessor to Missouri Pacific Radroad Company) from W V Porkrus and w~fe and E A Garrison and wife by Warranty Deeds dated August 23, 1890, recorded August 26, 1890 m Book 44 at Pages 327 and 330, respectively, ~n the records of Denton County, Texas FROM CITY OF DENTON RTTY FAX NO 9405527925 06-~4-01 $1 $6P P 15 Office of Contracts and Real Estate Omaha, Nebraska May 3, lgg3 Revised June 29, 1993, May 30, 2001 Written by DDB dentonbr Folder No 1374-30