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September 2, 2003 Agenda
AGENDA CITY OF DENTON CITY COUNCIL September 2, 2003 After determining that a quorum is presem, the City Council of the City of DeNon, Texas will convene in a Work Session on Tuesday, September 2, 2003 at 5:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of September 2, 2003. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the City Council will not conduct a Closed Meeting and will convene at the time listed below for its regular or special called meeting. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Governmem Code, as amended, as set forth below. 1. Closed Meeting: mo Consultation with Attorney - Under TEXAS GOVERNMENT CODE Section 551.071. Discuss and consider legal issues concerning Charter Communications d/b/a Marcus Cable Associates, L.L.C, ("Charter") as follows: a. Application for Review filed by the City of DeNon of the FCC Bureau Chief Order granting Charter's Petition for Effective Competition, b. Charter Franchise Fee Audit, c. Notice to Charter of Customer Service Violations and assessment of Liquidated Damages, d. Non-paymem of Cable Modem Franchise Fees, e. Charter Franchise Renewal; where to discuss these legal issues concerning the above stated matters with the attorneys in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and would jeopardize the City's position in administrative proceedings or in potential litigation. Discuss and consider the status of legal issues concerning an Interim Grant of Authority to Denton Telecom Partners I, LP d/b/a Advantex Communications to construct, reconstruct, operate and maintain a cable television system in the City of DeNon where to discuss these legal issues concerning the above stated matters with the attorneys in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and would jeopardize the City's position in administrative proceedings or in potential litigation. City of DeNon City Council Agenda September 2, 2003 Page 2 ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE "PUBLIC POWER EXCEPTION"). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §§551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §§551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Demon City Council on Tuesday, September 2, 2003 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE mo U.S. Flag Texas Flag "Honor the Texas Flag -- i pledge allegiance to thee, Texas, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards B. Recognition of staff accomplishments 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consem Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consem Agenda (Agenda items A-AA). This listing is provided on the Consem Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consem Agenda. if no items are pulled, Consem Agenda items A-AA below will be approved with one motion, if items are pulled for separate discussion, they will be considered as the first items following approval of the Consent Agenda. mo Consider approval of the minutes of July 25, August 5, August 7, August 12, and August 19, 2003. Bo Consider an exception to the noise ordinance for Church on Fire Revival Cemer for Sundays during the momh of September from 11:00 a.m. to 2:30 p.m. and from 7:30 p.m. to 10:00 p.m. City of DeNon City Council Agenda September 2, 2003 Page 3 Co Consider adoption of an ordinance accepting competitive bids by way of an INerlocal AgreemeN with the City of Garland and awarding a job order coNract for Denton Municipal Electric for construction, maintenance, and repair of the Denton Municipal Electric Overhead Distribution System; providing for the expenditure of funds therefor; and providing an effective date (File 3082 - Interlocal Agreement for construction, maintenance, and repair of the Denton Municipal Electric Overhead Distribution System with the City of Garland, coNract awarded to South-Win, Inc. in the estimated annual amouN of $250,000). Do Consider adoption of an ordinance accepting sealed competitive proposals and awarding a contract for construction services for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFSCP 3016 - Purchasing Office Renovation awarded to Smith Contractors, Inc. in the amount of $157,000). mo Consider adoption of an ordinance approving the expenditure of funds for the purchase of epoxy coatings available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3078 - Purchase of Epoxy Coatings to Raven Lining Systems in the estimated amouN of $60,000). (Items F-AA are items that support the proposed 2003-2004 budget and have been previously considered in budget work sessions.) Fo Consider adoption of an ordinance of the City of DeNon, Texas amending the Schedule of Rates coNained in Ordinance No. 2002-267 for Electric service; including all provisions of Ordinance No. 2002-331 as a part of the Rate Ordinance (Schedule EP); providing for a repealer; providing for a severability clause; and providing for an effective date. Go Consider adoption of an ordinance amending the Schedule of Water Rates contained in Ordinance No. 2002-268 for Water Service and Water Rates; amending the wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); adding a fee for pass-through raw water sen from Lake Chapman to Lake Lewisville for the Upper Trinity Regional Water District (Schedule WCL); amending the water tap and meter fees; amending the fire hydraN installation fees; providing for a repealer; providing for a severability clause; and providing for an effective date. Ho Consider adoption of an ordinance amending the Schedule of Wastewater Rates coNained in Ordinance No. 2002-269 for Wastewater Service; amending the resideNial facility charge and volume rate (Schedule SR); amending the mobile home park facility charge and volume rate (Schedule SMH); amending the commercial/industrial facility charge and volume rate (Schedule SC); amending the commercial/industrial (sub-meters) water for wastewater billing volume rate (Schedule SCD); amending the commercial/industrial (sub-meters) water excluded from wastewater facility charge (Schedule SCS); amending the equipmeN services facilities and restauraNs & food facility charge and volume City of Demon City Council Agenda September 2, 2003 Page 4 rate (Schedule SEE); amending the metered wastewater inside and outside corporate limits facility charge and volume rate (Schedule SM); amending the wholesale treatmem service for a govemmemal agency, division, or subdivision facility charge and volume rate (Schedule SSC); amending the existing compost and wood mulch schedule to be named "Dyno Dirt Products" and to add new compost products (Schedule CWM); amending the charges for grass/brush/leaves and amending the minimum charge (Schedule GBL); amending the wastewater tap fees (Schedule ST); amending the on-site sewage facility charge as set forth by separate ordinance and including the charge in the wastewater rate ordinance (Schedule OSSF); providing for a repealer; providing for a severability clause; and providing for an effective date. Consider adoption of an ordinance of the City of Demon, Texas amending the Schedule of Rates for Solid Waste Service comained in Ordinance Number 2002- 270 as authorized by Chapter 24 of the Code of Ordinances of the City of Demon, Texas; providing that the provisions of sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Demon, Texas shall expressly apply to City of Demon Solid Waste service; amending the manual residemial rate charge; amending the comainerized collection service charge (Schedule SWR); amending the residemial curbside recycling and processing service charge; amending the charges for minimum billing/base rate service upon condition and application (Schedule SWRR); amending the momhly rates for commercial & institutional solid waste collection services; increasing service charges for commercial from-load and side-load comainers; amending the charges for container extra service; adding a nominal charge to provide semi-automated commercial cart service; amending the hand collected commercial service charge; amending the charges for temporary front load container service; amending the charge for roll-off open top service; adding increased charges for refuse equal to or greater than 700 pounds per cubic yard - overweight loads; amending the roll- off compactor container services charges; amending the six cubic yard compactor charges; amending the shared commercial container charges; amending the comainer delivery fee and relocation charges; amending the inaccessible comainer charges; adding a difficult comainer access fee charge; amending the lock charges (Schedule SWC); adding the commercial recycling services schedule with application, qualification and momhly rate (Schedule SWCR); adding the solid waste collection and transportation services permit schedule, with application, granting of permit, exclusions, fees, term and renewal, and revocation or non- renewal of permits (Schedule SWP); amending the municipal solid waste disposal rate; deleting the outside the city landfill rate; adding a landfill volume charge; amending the minimum landfill charge; amending the landscape waste charge; amending the landfill bulky items charge; amending the inert materials charge; amending the unsecured loads charge (Schedule SWL); providing for a repealer; providing for a severability clause; and providing for an effective date. Jo Consider adoption of an ordinance of the City of Demon, Texas providing for the Schedule of Miscellaneous Fees, deposits, billings and procedures for administrative services to City customers and taxpayers comained in Ordinance No. 2002-271; amending the electric meter installation charge; amending the City of DeNon City Council Agenda September 2, 2003 Page 5 electric and water meter connection charge; amending the delinquent service charge; amending the unauthorized usage penalty; amending the additional meter reading charge; amending the meter testing charge; amending the meter tampering and/or damage charge; amending the meter inaccessibility charge; amending the returned payment charge; amending the credit report charge; providing for a repealer; providing for a severability clause; and providing for an effective date. Ko Consider adoption of an ordinance amending Section 22-38 of Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of DeNon, Texas, relating to facility and program fees by adopting a Schedule of Fees; repealing all fees in conflict with such Schedule; repealing Ordinance No. 2002-275 and all ordinances in conflict with the new Schedule of Fees; and providing an effective date. Lo Consider adoption of an ordinance of the City Council of the City of Denton revising and establishing certain fees for the I.O.O.F. and Oakwood Cemeteries in the City of DeNon; and providing an effective date. Mo Consider adoption of an ordinance of the City of DeNon, Texas providing for the paymem of administrative public works developmem review and inspection fees to the City for Engineering Review and Inspection Services provided by the City for public improvements constructed by developers related to private developmem; superceding ordinances in conflict with this ordinance; and providing for an effective date. No Consider adoption of an ordinance authorizing the Mayor to execute an Agreement between the City of Denton and the Denton Kiwanis Club for the payment and use of hotel tax revenue; and providing an effective date. Oo Consider adoption of an ordinance authorizing the Mayor to execute an Agreemem between the City of DeNon and the Tejas Storytelling Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. iD, Consider adoption of an ordinance authorizing the Mayor to execute an Interlocal Agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Bayless-Selby House and the Courthouse-on-the-Square Museums; and providing an effective date. Qo Consider adoption of an ordinance authorizing the Mayor to execute an Agreemem between the City of DeNon and the DeNon Chamber of Commerce (Convemion & Visitor Bureau) for the paymem and use of hotel tax revenue; and providing an effective date. Ro Consider adoption of an ordinance authorizing the Mayor to execute an Agreement between the City of Denton and the Denton Black Chamber of Commerce for the paymem and use of hotel tax revenue; and providing an effective date. City of Demon City Council Agenda September 2, 2003 Page 6 So Consider adoption Agreement between the payment and use of an ordinance authorizing the Mayor to execute an the City of Demon and the Demon Community Theatre for of hotel tax revenue; and providing an effective date. To Consider adoption Agreement between the payment and use of an ordinance authorizing the Mayor to execute an the City of Denton and the Denton Festival Foundation for of hotel tax revenue; and providing an effective date. Uo Consider adoption Agreement between the payment and use of an ordinance authorizing the Mayor to execute an the City of Denton and the Greater Denton Arts Council for of hotel tax revenue; and providing an effective date. go Consider adoption of an ordinance authorizing the Mayor to execute an Agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. Wo Consider adoption of an ordinance authorizing the Mayor to execute an Agreement between the City of Denton and the North Texas State Fair for the payment and use of hotel tax revenue; and providing an effective date. Xo Consider adoption of an ordinance of the City of Demon, Texas, amending Ordinance No. 2002-227 prescribing the number of positions in each classification of Police Officer; prescribing the number of positions in each classification of Fire Fighter; providing a savings clause; providing a severability clause; and declaring an effective date. Yo Consider adoption of an ordinance adopting the budget and the first year of the Capital Improvement Plan of the City of Denton, Texas for the fiscal year beginning October 1, 2003, and ending September 30, 2004; and declaring an effective date. go Consider adoption of an ordinance levying the ad valorem tax of the City of Denton, Texas, for the year 2003, on all taxable property within the corporate limits of the city on January 1, 2003, not exempt by law; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. Consider adoption of an ordinance of the City of Demon, Texas, approving the 2003 Tax Rolls; and providing an effective date. 4. PUBLIC HEARINGS mo Hold a public hearing and consider adoption of an ordinance regarding the rezoning of approximately 0.34-acre tract from a Neighborhood Residemial 3 (NR-3) zoning district to a Neighborhood Residemial 4 (NR-4) zoning district. City of DeNon City Council Agenda September 2, 2003 Page 7 The property is generally located at the southwest comer of Fain Street and Bolivar Street. The applicant is proposing to subdivide the existing lot. The Planning and Zoning Commission recommends approval (6-0). (Z03-0018) Bo Hold a public hearing and consider adoption of ordinances allowing the negotiation of the best bid for a lease for an Oil and Gas Non-Drill Site/Pooling AgreemeN with the bidders and city owned land listed below: Consider adoption of an ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling AgreemeN with Trio Consulting & Management Company, L.L.C. for the Hickory Creek Substation in the City of DeNon, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substantially same form as the City's Standard Lease; and providing an effective date. Consider adoption of an ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling AgreemeN with Join Resources Company for Bid # 1 for the North Lakes Park in the City of DeNon, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substaNially same form as the City's Standard Lease; and providing an effective date. o Consider adoption of an ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling Agreement with R.L. Adkins Corporation for the South Lake Park in the City of DeNon, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substaNially same form as the City's Standard Lease; and providing an effective date. Co Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating a certain area within the city limits of Denton as Reinvestment Zone No. VI for Commercial/Industrial Tax Abatement; establishing the boundaries of such zone; making findings required in accordance with Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto; providing a severability clause; providing for repeal; and providing an effective date. 5. ITEMS FOR INDIVIDUAL CONSIDERATION mo Consider adoption of an ordinance authorizing the Mayor to execute a Tax Abatement Agreement with Flowers Baking Co. of Denton, LLC, setting forth all the required terms of the Tax Abatement Agreement in accordance with the terms of Chapter 312 of the Texas Tax Code; setting forth the various conditions precedent to Flowers Baking Co. of Denton, LLC, receiving the Tax Abatement; providing for a severability clause; and providing an effective date. City of DeNon City Council Agenda September 2, 2003 Page 8 Bo Consider approval of a resolution of the City of DeNon, Texas encouraging residents of the City of Denton to vote at the Sales and Use Tax Election for the Denton County Transportation Authority; and providing an effective date. Co Consider a motion to reconsider nominations/appoimmems made to the City's boards and commissions at the August 5, 2003 council meeting. Do Consider nominations/appoimmems to the City's boards and commissions including but not limited to the Community Developmem Advisory Board, Historic Landmark Commission, Library Board, and the Public Utilities Board. mo New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. Fo Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Go Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Ho Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of DeNon, Texas, on the day of ,2003 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. CITY OF DENTON CITY COUNCIL MINUTES Annual Planning Session Agenda Friday, July 25, 2003 Wild Horse Golf Club, Robson Ranch 9400 Ed Robson Blvd., Bldg. A The Annual Planning Session of the City of DeNon City Council on Friday, July 25, 2003, convened at 8:00 a.m. The following items were considered: The following Council Members attended the meeting: Mayor Euline Brock Mayor pro Tem Mark Burroughs Council Member Raymond Redmon, District 1 Council Member Pete Kamp, District 2 Council Member Jack Thomson, District 3 Council Member Perry McNeill, District 4 Council Member Bob Momgomery, At-large Mayor Brock called the meeting to order. Council discussed norms and expectations and reviewed 2002 Council commitmems: Council Member McNeill: get more facts before deciding Mayor Brock: organize field trips for council Mayor pro Tem Burroughs: provide better feedback re: what involved in Council Member Phillips: keep open mind Council Member Momgomery: become resource about solutions other cities have discovered Council imeracted in a team building exercise. Council made the following commitmems to team building: Mayor pro Tem Burroughs: Creative ideas contributed with humor Council Member Redmond: Communicate other viewpoims effectively, w/out attacking Council Member Momgomery: Make life better/easier for citizens today. Take long-range view. Council Member McNeill: Get information before acting. Draw on full resources of Council, staff. Mayor Brock: Communicate better, and be more collegial and cooperative. Council Member Thomson: Be open, welcome diversity and inclusiveness. Council Member Kamp: Effectively use all available resources. Communicate better. Council discussed the following major leadership strengths: Proud of Denton Visionary: future-focused Operational efficiency/ability to target issues Quality leadership: elected & staff - Imelligem, analytical - Experienced, skilled - Professional City of Demon City Council Minutes July 25, 2003 Page 2 - Balanced - Ethical Respect for each other - Cooperation/consensus oriented - No dogma - Collegial, likable, value humor - Dependable Council identifies the following barriers to team effectiveness: Internal Processes External political and legal constraints Internal and external communications Special interest groups Pressure of time/efficient use Limited resources Need for better citizen involvement Internal attitudes - Complacency - Inertia - Trust - Reluctance to raise adverse views - Staff dedication to community Council participated in a focus group and determined the following commitments: 1. More council luncheons: retreat follow up-implementation; structuring Council agenda 2. Focus on increasing tax base, increase retail sales 3. Beef up monitoring of outcome policies to assure incremental progress 4. Streamline/expedite outcome statements, focus Council time on them 5. Keep special interests in proper perspective 6. Better citizen communication 7. Improve relationships with legislators, feds, county commission, school districts 8. Encourage overall dialog among all Council members (informal settings) 9. improve Council role in external communications Staff members also participated in a focus group and determined the following commitments: 1. Reciprocal support - staff and council - throughout community 2. Charter amendment: more effective term stagger - greater stability - amend term limits 3. Design informal imeractions with Council 4. Support Council's role in maimaining effective boards and commissions 5. Citizen academies to encourage community leadership 6. involve and demonstrate support for neighborhoods 7. Council take lead in external relations 8. More/continued "face-time" with each other City of Demon City Council Minutes July 25, 2003 Page 3 The meeting adjourned at 4:30 p.m. Euline Brock Mayor City of Demon Robert Hanna Assistant to the City Council City of Demon CITY OF DENTON CITY COUNCIL MINUTES August 5, 2003 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 5, 2003 at 5:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Kamp, McNeill, Montgomery, Redmon and Thomson. ABSENT: None 1. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for the regular meeting of August 5, 2003. Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the following: 1. Closed Meeting: mo Deliberations regarding personnel matters - Under TEXAS GOVERNMENT CODE Section 551.074. Deliberated and discussed the appointment, evaluation and the duties of the public officers listed below to the following City boards or commissions having discretionary powers as opposed to purely advisory powers: ao Planning and Zoning Commission (Bob Powell, George Watkins, Joe Roy) Zoning Board of Adjustment (Judy Willis, Lee Ann Nutt) Bo Deliberations regarding economic development negotiations - Under TEXAS GOVERNMENT CODE Section 551.087 and Consultation with the City Attorney - Under TEXAS GOVERNMENT CODE Section 551.071. Deliberated and discussed commercial or financial information received from a business prospect and offers of financial or other incentives to the business prospect for the purposes of economic development negotiations relating to the development of Clear Creek Ranch being approximately 749 acres of land located north of Loop 288 and west of FM 2164 in the Morris May Survey, Abstract No. 807, the J.S. Collard Survey, Abstract No. 297, the Alexander White Survey, Abstract No. 1406, and the Victor Gailor Survey, Abstract No. 453, in the City of Denton, Denton County, Texas. Also, receipt of legal advice from the City Attorney on matters in which his professional responsibility to the City Council requires private legal consultation. Regular Meeting of the City of Denton City Council on Tuesday, August 5, 2003 at 6:30 p.m. in the Council Chambers at City Hall. City of DeNon City Council Minutes August 5, 2003 Page 2 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards Mayor Brock presented a proclamation for Denton Record-Chronicle Week. B. Recognition of staff accomplishments City Manager Conduffpresemed staff accomplishmems to Council. 3. CITIZEN REPORTS A. The Council received citizen reports from the following: 1. Peternia Washington regarding concerns of Southeast Denton. Ms. Washington stated that she did not wish to speak at this meeting. 2. Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth was not present at the meeting. 3. Bob Clifton regarding the Consumer Health Department. Mr. Clifton was not present at the meeting. 4. CONSENT AGENDA City Manager Conduff stated that the petitioner had requested to withdraw Item J from consideration. Burroughs motioned, McNeill seconded to approve the Consem Agenda and accompanying ordinances and resolutions with the exception of Item J. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. A. 2003-233 - An ordinance accepting competitive bids and awarding a public works contract for the construction of Mayhill Road improvements at Pecan Creek; providing for the expenditure of funds therefor; and providing an effective date (Bid 3035 - Mayhill Road Improvemems at Pecan Creek awarded to AUI Comractors L.P. in the amoum of $1,064,064.90). City of Demon City Council Minutes August 5, 2003 Page 3 Bo 2003-234 - An ordinance accepting competitive bids and awarding a comract for the purchase of a Mobile Catch Basin and Sewer Cleaning Truck for the City of Denton Water and Sewer Department; providing for the expenditure of funds therefor; and providing an effective date (Bid 3036 - Mobile Catch Basin and Sewer Cleaning Truck awarded to Dallas Peterbilt, L.P. in the amount of $167,689). Co 2003-235 - An ordinance amending ordinance 2001-204 to amend section 6.1 of the Council appointees to the Agenda Committee; providing a savings clause; and providing an effective date. D. Approved the minutes of July 15, July 16, and July 22, 2003. mo 2003-236 - An ordinance approving an agreemem between the City of Demon and Teasley Denton CVS, L.P. for the abandonment of certain public utility easements recorded in Volume 1421, Page 168 and Volume 2978, Page 915 of the Real Property Records of Demon County, Texas and being in the Poulallier Survey, Abstract No. 1006; authorizing the City Manager or his designee to execute said agreemem on behalf of the City of Demon; and providing an effective date. Fo 2003-237 An ordinance authorizing the Mayor to execute an Interlocal Cooperation Agreement between the City Of Denton, Texas and Denton County, Texas for the Texas Department of Transportation Off System-Bridge Replacement Program; authorizing the expenditure of funds therefor; and providing an effective date. Go R2003-016 - A resolution of the City Council of the City of Demon, Texas placing a proposal on the September 2, 2003 City Council public meeting agenda to adopt a 2003 tax rate that will exceed the lower of the rollback rate or 103 percent of the effective tax rate; calling a public hearing on a tax increase to be held on August 19, 2003, requiring publication of a Notice of Public Hearing on a tax increase in accordance with the law; and providing an effective date. Ho 2003-238 - An ordinance approving an Alternative Developmem Plan for C.H. Collins Athletic Complex. The proposed 42.575-acre site is located north of Loop 288, south of Long Road and between Sherman Drive and Stuart Road. The subject site is within a Neighborhood Residemial 4 (NR-4) zoning district. A stadium and parking lot are proposed. The Planning and Zoning Commission recommend approval (6-0). (:tDP03-0002, C.H. Collins Athletic Complex) R2003-017 - A resolution to approve and authorize the City of Demon to file an amicus curiae brief in Denton County v. Tarrant County, Cause No. 02-0795, in the Supreme Court of Texas; establishing a public purpose, authorizing retention of counsel and providing an effective date. J. This item was pulled from consideration. City of Demon City Council Minutes August 5, 2003 Page 4 R2003-018 - A resolution of the City of Demon, Texas adopting the City of Denton's 2003 State Legislative Program for the 78th Second Called Legislative Session; providing a repealer; and providing an effective date. 5. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance amending the Mobility Plan Component of The Denton Plan to revise the location of Lakeview Blvd, to change the classifications of Trinity Road between Mills Road and FM 426 route #1 for Lakeview Blvd. as shown on the mobility plan, FM 426 between proposed route #5 of Lakeview Blvd and the intersection of the current Route #1 of Lakeview Blvd., and Edwards Road between Swisher Road and Lakeview Blvd.; and providing an effective date. The Planning & Zoning Commission recommended approval (6-1) (SI02-0013, Lakeview Mobility Plan AmendmenO Dave Salmon, Assistam Director of Engineering, presented the history of the proposal. He reviewed the proposed locations for Route 4 and Route 5. Several neighborhood meetings were held to receive public input on the proposed routes plus public hearings were held at the Planning and Zoning Commission meetings. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Darryle Petters, 4301 Boxwood Drive, Denton, 76208 - opposed to Route 5 Paige Walker, 6302 Hawthorne Drive, Denton, 76208 - opposed to Route 5 Hugh O'Neil, 4602 Trumpet Vine, Denton, 76208 - opposed to Route 5 Jackie Bruce, 4215 Boxwood Drive, Denton, 76208 -opposed to Route 5 Jo Olson, 6298 Hawthorne Drive, Denton, 76208 - opposed to Route 5 Sandy Duttan, 6300 Hawthorne Drive, Demon, 76208 - opposed to Route 5 Serena Eckert, 6600 Lantana Drive, Denton, 76208 - opposed to Route 5 Scott Lent, 6509 Daisy Drive, Denton, 76208 - opposed to Route 5 Maureen Jamail, 4208 Boxwood Drive, Denton, 76208 - opposed to Route 5 Scott Ewing, 6313 Barberry Ave., Denton, 76208 - opposed to Route 5 Van Scott, 4605 Bay Tree Ave., Denton, 76208 - opposed to Route 5 Troy Jamail, 4208 Boxwood Drive, Denton, 76208 - opposed to Route 5 Heather Bobo, 4144 Boxwood Drive, Denton, 76208 - opposed to Route 5 Bob Bobo, 4144 Boxwood Drive, Denton, 76208 - opposed to Route 5 Marc Leeds, 6506 Lantana Drive, Denton, 76208 - opposed to Route 5 Mike Eckert, 6600 Lantana Drive, Denton, 76208 - opposed to Route 5 Carrie Stoeckert, 6500 Lantana Drive, Denton, 76208 - opposed to Route 5 Marc Footlik, 5300 Town and Country Blvd., Frisco, 75034 - opposed to Route 5 Susan Mayo, 5493 Edwards Road, Demon, 76208 - favor of Route 5 Wade Willis, 5367 Edwards Road, Demon, 76208 - favor of Route 5 Cyann Looney, 5493 Edwards Road, Demon, 76208 - favor of Route 5 Kevin McCormack, 3031 Swisher, Road, Demon, 76208 - favor of original Route 5 Gina Nunez, 3325 Swisher Road, Demon, 76208 - not in favor of either route City of Demon City Council Minutes August 5, 2003 Page 5 Commem Cards were received from the following: Shailesh Kulkarni, 4211 Boxwood, Denton, 76208 - opposed to Route 5 Yong Yi, 6312 Hawthorne Drive, Denton, 76208 - opposed to Route 5 Jeremy Swearengin, 6312 Hawthorne Drive, 76208 - opposed to Route 5 Sam Sutherland, 4702 Indian Paint Way, Denton, 7208 - opposed to Route 5 Frank and Delores Simon, 4605 Trumpet Vine, Denton, 6208 - opposed to Route 5 Rebecca Scott, 4605 Bay Tree, Denton, 76208 - opposed to Route 5 Ginger O'Neil, 4602 Trumpet Vine, Denton, 76208 - opposed to Route 5 Jay Walker, 6402 Hawthorne Drive, Denton, 76208 - opposed to Route 5 Cindi Buckingham, 6503 Lantana Drive, Denton, 76208 - opposed to Route 5 Gary and Carol Paul, 6506 Daisy Drive, Denton, 76208 - opposed to Route 5 Laura Leeds, 6506 Lantana Drive, Denton, 76208 - opposed to Route 5 Riti Bruce, 4215 Boxwood Drive, Denton, 76208 - opposed to Route 5 Kelly and Kevin Mahannah, 4214 Boxwood Drive, Denton, 76208 - opposed to Route 5 Donise Lent, 6509 Daisy Drive, Denton, 76208 - opposed to Route 5 Daphne Mundt, 4212 Boxwood, Denton, 76208 - opposed to Route 5 Janice Randel, 4508 Trumpet Vine, Denton, 76208 - opposed to Route 5 Mike and Dawn Smith, 4511 Bay Tree, Denton, 76208 - opposed to Route 5 Rita and Clayton Newman, 6406 Daisy Drive, Demon, 76208 - opposed to Route 5 Grace Keene, 6405 Daisy Drive, Denton, 76208 - opposed to Route 5 Misty and Troy Hilton, 6316 Hawthorne, Denton, 76208 - opposed to Route 5 Donetta Petters, 4201 Boxwood Drive, Denton, 76208 -opposed to Route 5 Jeffrey Jasuta, 4229 Boxwood Drive, Denton, 76208 - opposed to Route 5 Lynette Higgins, 4229 Boxwood Drive, Denton, 76208 - opposed to Route 5 Sharon Follis, 6510 Daisy Drive, Denton, 76208 - opposed to Route 5 Jan Faubion, 3609 Macbey, Corinth, 76208 - opposed to Route 5 Lori and Toby Schafer, 4147 Boxwood, Denton, 76208 - opposed to Route 5 The following individuals also spoke during the public hearing: Jan Faubion, 3609 Macbey, Corimh, 76208 - favor of Route 4 Carold Nunez, 3025 Swisher Road, Demon, 76208 - not in favor of either route John Devries, 4099 Swisher Road, opposed to Route 4 Jay Walker 6402 Hawthorne, Denton, - not in favor of either route Clayton Newman, 6406 Daisy Drive, Demon, 76208 - opposed to Route 5 The Mayor closed the public hearing. Council discussed the pros and cons of the proposed routes with the following poims raised: · Possibly performing traffic studies of the two routes · Whether there would be school zone sites on both routes · Would there be hazmat routes on either route · Would there be truck routes on either route · Connectivity to east/west roads · Police/fire protection in the community/support of either route City of DeNon City Council Minutes August 5, 2003 Page 6 · Reasoning for the abandonmeN of Routes 1 and 2 relative to Corps of Engineers property Council Member Kamp indicated that she was not in favor of Route 5. Council Member McNeill expressed concern with overturning the vote from the Planning and Zoning Commission. He was not in favor of redesigning projects at the podium. He felt that the Planning and Zoning Commission did not have all the same information the Council had received and perhaps needed another look at the proposal. McNeill motioned to remand the issue back to the Planning and Zoning Commission to take another look at the recommendation. He based his decision on the vote by the Commission and the new information presented at this meeting. He suggested that the Commission look again at the feasibility of Route 4. Council Member Redmon seconded the motion and asked that the Commission also study Mayhill Road for a route determination. Mayor Pro Tem Burroughs requested a short time frame for reconsideration by the Planning and Zoning Commission. He suggested giving direction to the Commission as to why the Council requested it look at the proposal again. Those reasons included looking again at Route 4, looking at Mayhill Road, and the cost differeNial between the two proposed routes. He requested that the Commission include reasoning for voting on a particular route. Council Member MoNgomery indicated that he waned the opportunity to better look at the neighborhood in order to make a better decision. He felt he needed more time to look at this issue. Council Member Thomson stated that he had looked quite extensively at the area and the neighboring roads. While he was hesitaN to override the Planning and Zoning Commission vote, he felt there was a need delay the decision. Mayor Brock felt that the Planning and Zoning Commission should look at this issue as soon as possible. She also felt it was difficult to get hard figures for the cost of the projects at this point in time. She did not want to use the cost factor alone for a decision. Council Members McNeill and Redmon accepted the Council's commeNs as friendly amendments to the motion and second. On roll vote on the motion to remand back to the Planning and Zoning Commission, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered approval of a resolution of the City of DeNon, Texas supporting the creation of a historic marker that recognizes historic black communities of DeNon, including Freedman's Town and Quakertown, and to recognize the creation of the black City of Demon City Council Minutes August 5, 2003 Page 7 community in Solomon Hill after the Quakertown community was dispersed by the creation of what is now known as the Civic Center Park; authorizing the placement of the marker on city property; and providing an effective date. Julie Glover, Main Street Manager, presented the history and details of the historic marker. The following individuals spoke regarding the issue: Carolyn Phillips, 722 Lakey Street, Denton, 76205 - favor Redmon motioned, Kamp seconded to approve the resolution. Charlye Heggins, 422 Audra Lane, Demon, 76209 - favor The following resolution was considered: NO. R2003-019 A RESOLUTION OF THE CITY OF DENTON, TEXAS SUPPORTING THE CREATION OF A HISTORIC MARKER THAT RECOGNIZES HISTORIC BLACK COMMUNITIES OF DENTON, INCLUDING FREEDMAN'S TOWN AND QUAKERTOWN, AND TO RECOGNIZE THE CREATION OF THE BLACK COMMUNITY IN SOLOMON HILL AFTER THE QUAKERTOWN COMMUNITY WAS DISPERSED BY THE CREATION OF WHAT IS NOW KNOWN AS THE CIVIC CENTER PARK; AUTHORIZING THE PLACEMENT OF THE MARKER ON CITY PROPERTY; AND PROVIDING AN EFFECTIVE DATE. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. The Council considered adoption of an ordinance on final reading, establishing the extension of the cable television franchise between the City of Denton and Charter Communications; providing a severability clause; and providing an effective date. John Cabrales, Public Information Officer, presented the details on the extension of the franchise agreement with Charter Communications. The following ordinance was considered: NO. 2003-239 AN ORDINANCE ON FINAL READING, ESTABLISHING THE EXTENSION OF THE CABLE TELEVISION FRANCHISE BETWEEN THE CITY OF DENTON AND CHARTER COMMUNICATIONS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. City of DeNon City Council Minutes August 5, 2003 Page 8 Burroughs motioned, Montgomery seconded to adopt the ordinance. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Co commissions: The Council considered nominations/appoimmems to the following boards and Human Services Advisory Committee Library Board Planning and Zoning Commission (Bob Powell, George Roy) Public Utilities Board Zoning Board of Adjustmem (Judy Willis, Lee Ann Nutt) Watkins, Joe Burroughs motioned, McNeill seconded to suspend the rules to consider a list of names as a group. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Burroughs motioned, McNeill seconded to consider nominations as follows: Human Services - Lilia Bynum; Sonja Ball Planning and Zoning Commission-Bob Powell, George Watkins, Virgil Strange, Joe Roy Public Utilities Board - Cassandra Berry, Bill Cheek, Dick Smith, Yolanda Guzman Zoning Board ofAdjustmem - (Alternates) Judy Willis, Lee Ann Nutt Council discussed the motion relative to methods of nominations, qualifications for membership on the Planning and Zoning Commission and the Public Utilities Board, bringing diversity to the Public Utilities Board and the method in which these nominations were being handled. On roll vote on the motion to approve these nominations, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "nay", Thomson "aye" and Mayor Brock "aye". Motion carried with a 6-1 vote. D. New Business There were no items of New Business suggested by Council for future agendas: Council Member Redmon left the meeting mo Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff did not have any items for Council. F. There was no cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. City of Demon City Council Minutes August 5, 2003 Page 9 G. There was no official action on Closed Meeting Item(s) under Sections 551.071- 551.086 of the Texas Open Meetings Act. With no further business, the meeting was adjourned at 10:05 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 7, 2003 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Thursday, August 7, 2003 at 8:30 a.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Kamp, McNeill, Montgomery, and Thomson. ABSENT: Council Member Redmon 1. The Council received a report, held a discussion, and gave staff direction regarding the 2003-2004 Budget and the 2003-2008 Capital Improvement Program. Kathy DuBose, Assistant City Manager for Finance, presented the details of the budget proposal. Those included a no property tax rate increase; the current year's sales tax was estimated at 1% under last year's actual; the FY 03-04 base sales tax was projected at 3% over the current estimate; there would be no merit pay for employees (only Civil Service step plan increases) and the reserve level would be maintained at 13%. DuBose presented appraisal roll comparisons for the past 10 years. Council Member Redmon arrived at the meeting. Council discussion included anticipated sales tax with new stores opening; revenue to be received from gas wells located in the city; and the employment situation in regards to the no pay increases for two years. DuBose indicated that staff was looking at ambulance service revenues with Argyle and Krum and a change in inspection fees. Council discussed the public works inspection fee, how it was determined and what the cost would cover. DuBose stated that the proposed budget included funding to purchase land and design a Fire Department Training Facility. In addition, the Police Department had available bond money to renovate the existing firearms facility. The CIP also included expansion of the jail facility and the increase of ten crossing guards due to the change in the policy of bussing by the DISD. The DISD paid for the crossing guards and were administered by the Police Department. She continued with a review of the funding recommendations for human services agencies. She detailed the Enhanced Local Assistance Program that would be 25% of the DCTA sales and use tax collection generated from the city to be used for eligible transportation projects. Council discussed the obligation by the DCTA for the assistance program. DuBose reviewed the new FTA regulations regarding funding for the LINK system, the legislative efforts for rectifying the impact of the new regulations and proposed initiatives to cover the overall cost of the service. The Airport continued to grow and DuBose reviewed the grant projects associated with the Airport including taxiway realignment, taxiway lighting system, a new terminal building and a terminal apron/auxiliary taxiway. There were several service reductions that would be necessary with this budget. Those included a reduction in the mowing cycle of the parkland property, a reduction in the recreation center hours and a deferring City of DeNon City Council Minutes August 7, 2003 Page 2 of the resurfacing of two tennis courts for one year. Personnel costs associated with the North Branch Library would be delayed by using currem personnel housed at the Fowler facility that was closed for renovations and South Branch Library staff would supplement the rotation of personnel assigned to Sunday service. The South Branch Library would no longer be open on Sunday afternoons with only the North Branch Library open on Sunday afternoons. Discussion by Council dealt with the mowing of park property; a publicity campaign as to the reasons for the reductions; and a suggestion for local groups to "adopt a park" to assist with the maimenance of the park property. DuBose stated that the Council contingency accounts would be eliminated this year, there would be no vehicle replacement and the outreach grant for the Books-to-Share Outreach Coordinator would be recorded in the Youth Services Division of the Library Services Departmem. Council discussion dealt with the elimination of the council contingency accounts and the possibility of cutting the amount in half rather than total elimination of the accounts. City Manager Conduff stated that staff would look at ways to provide funds for the contingency accoums. DuBose presemed an overview of the Lalor Fund Committee's recommendation for funding of the hotel occupancy tax funds. She detailed a breakdown of the proposed funding. Council discussed the proposed funding allocations and the change in allocation policy. DuBose detailed the proposed funding for the Aquatic Cemer and the Civic Cemer Pool. She reviewed the major issues associated with the utility portion of the budget. There would be no base rate increase in the electric rate and the ECA would be budgeted at $.035/KWH; water would have no base rate increase, wastewater would have a retail rate increase of 4% and solid waste would have a residemial rate increase of $.70 for base service and commercial collection service rate increases. Following the completion of the Work Session, the Council convened in a Closed Meeting in the City Hall Conference Room at City Hall. 1. The following was considered in Closed Meeting: Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under TEX. GOV'T. CODE Section 551.086.** (1) Received a presentation and information from Staff pertaining to the DeNon Municipal Electric ("DME") Proposed Annual Budget for the Fiscal Year 2003-2004, consisting of competitive electric and commercial information respecting the details of the present and future operational and financial plans and strategies of DME; and discuss, deliberate, consider, and provided Staff with direction regarding such matters. City of Demon City Council Minutes August 7, 2003 Page 2 Following the completion of the Closed Meeting, the Council participated in a luncheon with WFAA Executives. With no further business, the meeting was adjourned at 12:30 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL August 12, 2003 After determining that a quorum was present, the City Council convened in a Planning Session on Tuesday, August 12, 2003 at 4:00 p.m. in the City Council Work Session Room. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Kamp, McNeill, Montgomery, and Thomson. ABSENT: Council Member Redmon 1. The Council received an outcome statement and held a discussion regarding Denton's image in regard to Historic Preservation. Jon Fortune, Assistant City Manager, presented to the Council a working document relative to the outcome statement for historic preservation. Council reviewed the document and made suggestions for changes in wording that staff would incorporate into the document. 2. The Council received a report, held a discussion and gave staff direction regarding Balanced and Sustainable Growth. Kelly Carpenter, Director of Planning and Development, briefed the Council on balanced and sustainable growth. She reviewed the history of the Denton growth management strategy. She stated that the Denton Plan was built on the policies and assumption of the growth management strategy. Urban sprawl and the costs of sprawl were discussed. Trends in development included more empty nests, condominium boom and transportation frustration. Next steps would include comprehensive plan policy tracking including infill/redevelopment policy; transit oriented design; sustainable neighborhood planning; and smart growth. John Promise, NCTCOG, presented ideas on regional initiatives for balanced and sustainable growth. He stated that there were issues connected with projected growth and the water supply that included projected growth and the environment; projected growth and air quality; projected growth and transportation. The Center was working on the theory of development excellence. He reviewed accomplishments of the COG including reducing outdoor watering and air quality. Council discussion included: · Feedback on what was actually happening under the new code · Identification of milestones · Aggressive promotion of infill design standards · Revisit codes in relation to infill for downtown area · Obtain data from real estate agents on what type of housing was "in need" in Denton · Identify alternatives for transit-oriented development and look for private partnerships · Tie rewards to preferred development · Obtain information on green building requirements (sustainable building) · Create an overall plan of what Denton would like to have north of Loop 288 · Keep moving toward the 40/60 single vs. multi-family mix Potential outcome statements included: City of Demon City Council Minutes August 12, 2003 Page 2 · The City's developmem process aggressively encourages infill that is compatible with existing neighborhoods · Demon attracts developers who specialize in redevelopment/infill · Denton encourages developers/development that conserves resources, uses water and energy resources effectively and efficiently. · Demon has a reduced number of vehicles miles traveled · Denton has planned for, encouraged and invested in transit oriented development · A major portion of new developmem in Demon encompasses a mix of uses with a minimum of traffic impact to the rest of the community. With no further business, the meeting was adjourned at 6:40 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 19, 2003 After determining that a quorum was presem, the City Council convened in a Work Session on Tuesday, August 19, 2003 at 4:00 p.m. in the Council Chambers at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Kamp, McNeill, Montgomery, and Thomson. ABSENT: Council Member Redmon 1. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for the regular meeting of August 19, 2003. The City Council attended a reception for Board and Commission members at 4:30 p.m. in the Council Work Session Room at City Hall. The City Council convened in the Council Chambers at 6:00 p.m. at which the following item was considered: 1. The Council considered approval of a resolution of appreciation for retiring Board/Commission members. Burroughs motioned, McNeill seconded to approve the resolution. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Regular Meeting of the City of Demon City Council on Tuesday, August 19, 2003 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards Mayor Brock presemed a proclamation for Disabilities Awareness Week. B. August Yard-of-the-Momh Awards Mayor Brock presented Yard of the Month Awards to: Jon, Tanya and Hope Seibert The Simmons Street Church of Christ Carroll and Martha Goen Jim and Kay Murray Tom and Rebecca Harpool Raymond and Bobbie Coorpender Brian and Mary O'Connor-Water Smart Award City of Demon City Council Minutes August 19, 2003 Page 2 Eagleton Photography-Business Yard Award C. Recognition of staff accomplishments City Manager Conduffpresemed staff accomplishmems. 3. CITIZEN REPORTS A. The Council received citizen reports from the following: Robert Kam regarding public transportation and Demon Branch Rails to Trails. Mr. Kam stated more alternatives were needed for transportation in Denton. The LINK hours were not convenient for those citizens who depended on it to move about the city. He recently purchased a bike and enjoyed the Demon Branch Rails to Trails. Unfortunately the construction on Loop 288 had disrupted the flow of the trail and the alternate route had not been started yet. He offered a number of suggestions to improve the LINK and the transportation alternatives in Denton. 4. CONSENT AGENDA Mayor Brock indicated that Item R had been pulled from consideration. Burroughs motioned, Thomson seconded to approve the Consent Agenda and accompanying ordinances and resolution with the exception of Item R. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. R2003-020 - A resolution of the City of Demon, Texas announcing that it will vote on a tax rate at its regularly scheduled meeting of September 2, 2003; providing for publication of notice of such vote on the tax rate; and providing an effective date. 2003-240 - An ordinance authorizing the City Manager to execute an addendum to contract between the City of Denton, Upper Trinity Regional Water District and the City of Lewisville concerning Reuse of Water from Cooper (Chapman) Lake; providing for the expenditure of funds therefor; and providing for an effective date. 2003-241 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of electric distribution cables; providing for the expenditure of funds therefor; and providing an effective date (Bid 3043 - Annual Price Agreement for Electric Distribution Cables awarded to Techline, Inc. in the estimated amoum of $471,050). 2003-242 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of front load refuse containers; providing for the expenditure of funds therefor; and providing an effective date (Bid 3044 - Annual City of DeNon City Council Minutes August 19, 2003 Page 3 Price Agreement for Front Load Refuse Containers awarded to Wastequip May Fab in the estimated amouN of $110,000). mo 2003-243 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of electric distribution conductors; providing for the expenditure of funds therefor; and providing an effective date (Bid 3046 - Annual Price Agreement for Electric Distribution Conductors awarded to Priester Supply in the estimated amouN of $200,000). Fo 2003-244 - An ordinance accepting competitive bids and awarding an annual contract for the rental of heavy equipment; providing for the expenditure of funds therefor; and providing an effective date (Bid 3053 - Annual Price AgreemeN for ReNal of Heavy EquipmeN awarded in the estimated amouN of $500,000). Go 2003-245 - An ordinance accepting competitive bids by way of an INerlocal Agreement with Tarrant County and awarding a contract for the purchase of cellular phone services; providing for the expenditure of funds therefor; and providing an effective date (File 3064 - INerlocal AgreemeN with Tartan County for the purchase of cellular phone services, contract awarded to Progressive Concepts, Inc. in the amouN of $175,000). Ho 2003-246 - An ordinance awarding a coNract for the purchase of wireless communication services as awarded by the State of Texas Building and ProcuremeN Commission; providing for the expenditure of funds therefor; and providing an effective date (File 3063 to Nextel Communications in the annual estimated amouN of $99,600). 2003-247 - An ordinance authorizing the City Manager or his designee to eNer into an agreement with Bank One, NA and to participate in an agreement between Bank One, NA and the Texas Building and Procurement Commission relating to the use of purchasing cards; repealing Ordinance 99-285; authorizing the City Manager or his designee to make expenditures set forth in the contract; and providing an effective date (File 3068 - AgreemeN 946-AI between the State of Texas Building and ProcuremeN Commission/Bank One NA, and the City of DeNon for a Purchasing Card System). Jo 2003-248 - Consider adoption of an ordinance of the City of DeNon, Texas approving an agreement between the City of Denton and the Denton Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source in accordance with the provisions of the state law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3065 - AgreemeN with the DeNon Record Chronicle in the amouN of $7.60 per column inch for an estimated award of $30,400). Ko 2003-249 - An ordinance of the City of DeNon, Texas authorizing the City Manager to execute an agreemeN for professional legal services with Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., for legal services pertaining to represeNation of the City before the Public Utility Commission of City of Demon City Council Minutes August 19, 2003 Page 4 Texas, in the areas of public utility regulatory law and administrative law, respecting Demon's compliance with Public Utility Commission of Texas Electric Transmission Service Rules; authorizing the expenditure of funds therefor; providing for retroactive effect of the agreement; and providing an effective date. Lo 2003-250 - An ordinance of the City of Demon, Texas authorizing the City Manager to execute an agreement for Professional Legal Services with Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., for legal services pertaining to represemation of the City before the Public Utility Commission of Texas, in the areas of Public Utility Regulatory Law and Administrative Law, respecting the protection of the City's interests relating to competition transition charges and transition charges by municipally owned utilities or by customers of municipally owned utilities; authorizing the expenditure of funds therefor; providing for retroactive effect of the agreement; and providing an effective date. Mo 2003-251 - An ordinance of the City of Demon, Texas authorizing the City Manager to execute an Agreemem for Professional Legal Services with Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., for legal services pertaining to represemation of the City before the Public Utility Commission of Texas, in the areas of Public Utility Regulatory Law and Administrative Law, respecting the protection of the City's interests relating to efforts by the Public Utility Commission of Texas to change the currem design of the Electric Reliability Council of Texas wholesale power market in Texas; authorizing the expenditure of funds therefor; providing for retroactive effect of the agreement; and providing an effective date. 2003-252 - An ordinance of the City Council of the City of Demon, Texas authorizing the City Manager to execute a Professional Services Agreement with R. J. Covington Consulting, LLC for consulting services relating to Task Order No. 03-H, regarding the market design issue of moving the Electric Reliability Council of Texas to a nodal transmission pricing system, relating to Denton Municipal Electric; authorizing the expenditure of funds therefor; and providing an effective date. No 2003-253 - An ordinance of the City of Demon, Texas authorizing the City Manager to execute a Professional Services Agreement with R.J. Covington, LLC for consulting services relating to Task Order No. 03-G, for services pertaining to represemation of Demon Municipal Electric before Electric Reliability Council of Texas, provision of analysis and technical support related to regulatory and competitive issues, monitoring and evaluation of electric industry activities; authorizing the expenditure of funds therefore; providing for retroactive effect of the agreement and providing an effective date. Oo 2003-254 - An ordinance authorizing the City Manager, or his designee, to file an application, execute grants, and subsequent amendments with the U.S. Department of Transportation Federal Transit Administration and the Texas City of DeNon City Council Minutes August 19, 2003 Page 5 Department of Transportation for grants authorized by 49 U.S.C. §5307, and other applicable laws; and providing for an effective date. iD, 2003-255 - An ordinance establishing the fares to be charged for motor carrier passenger service provided by LINK; superceding ordinances in conflict with this ordinance; and providing for an effective date. Qo 2003-256 - An ordinance of the City of DeNon, Texas approving the City's participation for itself, and on behalf of DeNon County under an imerlocal Agreement between the City and Denton County, in the Texas Department of Transportation Off-System Bridge Replacement Program as authorized by Texas Administrative Code, Title 43, Section 15.55(d); authorizing the City Manager or his designee to execute on behalf of the City and County all documems or agreements necessary to carry out the program; and providing an effective date. R. This item was pulled from consideration. So R2003- 021 - A resolution of the City Council of the City of DeNon, Texas, replacing a policy for tax abatemem for the City of DeNon to establish guidelines and criteria governing tax abatement agreements; and declaring an effective date. To 2003-257 - An ordinance approving a license agreemem between the City of Denton and the First United Methodist Church of Denton, Inc. to continue to allow use of a building at Evers Park for Boy Scout activities; and providing an effective date. Uo R2003-022 - A resolution of the City of DeNon, Texas calling a public hearing to consider establishing a reinvestmem Zone Vi for Flowers Foods Bakeries Group, LLC; and declaring an effective date. go Approved three exaction variances for a parcel containing approximately 12 acres and was located on the north side of Jim Christal Road west of the GC & SF Railroad. The property was curremly in an industrial Cemer-Employmem (lC-E) zoning district. The property was curremly developed and no new construction was proposed. The Planning and Zoning Commission recommended approval of the variances as proposed by the applicam and conditioned by City staff. Planning and Zoning recommended approval (7-0). (T03-0018) Section 35.20.2(L.3.a.) of the Code of Ordinance concerning improvements to a perimeter street; Section 35.20.3(B.) of the Code of Ordinance concerning perimeter sidewalks; and Section 35.20.2(H. 1 .) of the Code of Ordinance concerning the dedication of right of way for all streets that serve a commercial lot (regarding ROW for a cul-de-sac at the end of Jim Christal Road at its intersection with the GC & SF Railroad). City of Demon City Council Minutes August 19, 2003 Page 6 5. PUBLIC HEARINGS A. The Council held a public hearing on a proposal to adopt a tax rate of .54815 per $100 valuation, which will exceed the lower of the rollback rate or 103 percem of the effective tax rate. Kathy DuBose, Assistant City Manager for Finance, presented the details of the proposed tax rate. The tax rate would remain the same as last year. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. B. The Council held a public hearing and received citizen input on the 2003-2004 proposed budget. Kathy DuBose, Assistam City Manager for Finance, stated the Council had received the proposed budget on July 31 st. The Mayor opened the public hearing. No one spoke during the public hearing. John Johnson, 1517 Linden, Denton, 76201 submitted a card in opposition to the increase of the tax rate above the effective tax rate. The Mayor closed the public hearing. C. The Council held a public hearing to afford the public appropriate notice and participation for the purpose of commenting on the cable television franchise application filed by Denton Telecom Partners I, LP d/b/a Advantex Communications, with the City of Denton. John Cabrales, Public Information Officer, stated that this was an application from Advantex Communications for a cable television franchise in Denton. The company currently served the Robson Ranch area. This would be a one-year agreemem. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance of the City of Denton, Texas establishing an Economic Development Partnership Board; and providing an effective date. Linda Ratliff, Director of Economic Development, presented the details of the proposal. City of DeNon City Council Minutes August 19, 2003 Page 7 The following ordinance was considered: No. 2002-258 AN ORDINANCE OF THE CITY OF DENTON, TEXAS ESTABLISHING AN ECONOMIC DEVELOPMENT PARTNERSHIP BOARD; AND PROVIDING AN EFFECTIVE DATE. McNeill motioned, Kamp seconded to adopt the ordinance. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. The Council considered appointment of two Chamber of Commerce board member to the Economic Nominating Committee. City Council members and one Development Partnership Board McNeill motioned, Burroughs seconded to appoint Council Members Kamp and Montgomery from Council and Dale Kimball from the Chamber of Commerce to the nominating committee. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. C. The Council considered nominations/appoiNmeNs to the following boards and commissions: 1. Community DevelopmeN Advisory Committee 2. Library Board 3. Parks, Recreation and Beautification Board Council Member Redmon nominated Cassandra Berry to the Community DevelopmeN Advisory Board and Shea Norris to the Library Board. Council Member Kamp motioned to reconsider the appointment made at the last regular meeting for Place One for the Public Utilities Board and to place the reconsideration on the next regular agenda. D. New Business The following items of New Business were suggested by Council for future agendas: 1. Council Member McNeill requested an update on the status of the rental ordinance dealing with the number of resideNs allowed in renal property units. 2. Council Member Redmon requested information on the penalty and iNerest of utility billing system. City of Demon City Council Minutes August 19, 2003 Page 8 mo Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff did not have any items for Council. F. There was no cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. G. There was no official action on Closed Meeting Item(s) under Sections 551.071- 551.086 of the Texas Open Meetings Act. With no further business, the meeting was adjourned 7:10 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS Jennifer Walters City Secretary City of Demon, Texas AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM: September 2, 2003 City Manager's Office Michael Conduff, City Manager SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of a tent revival conducted by Church on Fire Revival Center, at 1900 W. University, U.S. 380, on Sunday's during the month of September from 11:00 a.m. to 2:30 p.m. and 7:30 p.m. to 10:00 p.m. The exception is specifically requested for the day of the week. BACKGROUND Michael Powell, Events Coordinator for the Church on Fire Revival Center, has submitted a request allowing them to use amplified sound on Sunday's during the month of September for their tent revivals. These are community events to which everyone is invited. They will be using amplification for both music and speakers. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None FISCAL INFORMATION None Betty Williams Director of Management and Public Information Prepared By: Pamela Rambo-Estill, Assistant to the City Manager Attachment: Letter from Michael Powell 8-19-03 Denton City Council: This is a recluest to the City Council of Denton. TX that we would obtain exemption from the noise ordinance On Sundays in the month of September, 2003. We are a =hutch in town at ~30~ S. Locust and we are condueUng a tent revival at 1900 W. University (U.S. 580). The schedule is Monday - Saturday 7:30 p,m. Ix) t0:00 p.m, nightly. And then Sundays at t 1:00 a.m. to 2:30 p.m., and 7:30 p.m. to 10:00 p.m. This is a community event in which everyone is invited. We are already having many youth at risk attend, as well as many families from the community are participating In this special event. We will be using microphones, a keyboard, and occasionally drums. Thank you for taking this request into oon$1deraUon ~nd plea~ oonLaot u, for any additional information needed by the Council. Sincerely, Michael Powell - Events coordinator - C.O.F.R,C. (940) 243-4469 Fax= (940) ~20-0433 ~ 3G9 ~. Locust Denton, TX 78201 ~ www.oofrc.com AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Questions concerning this acquisition may be directed Materials Management to Sharon Mays 349-8487 Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance accepting competitive bids by way of an Imerlocal Agreemem with the City of Garland and awarding a job order contract for DeNon Municipal Electric for construction, maintenance, and repair of the Denton Municipal Electric Overhead Distribution System; providing for the expenditure of funds therefore; and providing an effective date (File 3082-Imerlocal Agreemem for construction, maimenance, and repair of the DeNon Municipal Electric Overhead Distribution System with the City of Garland, contract awarded to South-Win, Inc. in the estimated annual amoum of $250,000). FILE INFORMATION On May 14, 2002, Council approved an Imerlocal Agreemem with the City of Garland authorizing participation in various City of Garland comracts. On February 27, 2003, the City of Garland received competitive bids and emered imo a job order comract for work on overhead distribution lines with South-Win, Inc. The City of Denton is proposing to utilize this contract through the Imerlocal agreemem for the same services. Each project price will be based upon the unit prices listed on the proposal pages attached to the ordinance. RECOMMENDATION We recommend that the City of Denton enter into this job order contract with South-Win, Inc. in the annual estimated amoum of $250,000. PRINCIPAL PLACE OF BUSINESS South-Win, Inc. Nevada, TX ESTIMATED SCHEDULE OF PROJECT This is an annual comract for services and will remain in effect through September 2, 2004. FISCAL INFORMATION The estimated annual expenditure for this comract is $250,000. Each project will be funded from the appropriate DME budget account. Agenda Information Sheet September 2, 2003 Page 2 1-AlS-File 3082 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS BY WAY OF AN INTERLOCAL AGREEMENT WITH THE CITY OF GARLAND AND AWARDING A JOB ORDER CONTRACT FOR DENTON MUNICIPAL ELECTRIC FOR CONSTRUCTION, MAINTENANCE, AND REPAIR OF THE DENTON MUNICIPAL ELECTRIC OVERHEAD DISTRIBUTION SYSTEM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 3082-INTERLOCAL AGREEMENT FOR CONSTRUCTION, MAINTENANCE, AND REPAIR OF THE DENTON MUNICIPAL ELECTRIC OVERHEAD DISTRIBUTION SYSTEM WITH THE CITY OF GARLAND,, CONTRACT AWARDED TO SOUTH-WIN, INC. IN THE ANNUAL ESTIMATED AMOUNT OF $250,000). WHEREAS, pursuant to Ordinance 2002-128, The City of Garland, Texas has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedure of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the City of Garland Cooperative Purchasing programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the numbered items in the following numbered file for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent are hereby accepted and approved as being the lowest responsible bids for such items: FILE NUMBER VENDOR AMOUNT 3082 South-Win, Inc. Exhibit A SECTION 2. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the City of Garland for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the City of Garland (Bid 465-01), and the purchase orders issued by the City. SECTION 3. That should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the City of Garland, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the City of Garland, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approval purchase orders or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: , F~hibit A By the execution'i'!~'nd submission of this bid, bidder acknowledges that bidder has received a copy of City Councit PoiiCy OPNS-04 and bidder represents and warrants that bidder complies with the requirements of the City Council Poticy OPNS-04 and is in no manner disqualified from doing ~siness with the City under that policy. SPEC # OH-925 OH-lC OH,.1100 OH-1105 011-1110 01-1-11 PROPOSAL SUMMARY OVERHEAD ___--- DESCRIPTION ___------- THREE POINT RACK ONE POINT RACK 3 pHASE__PRIMARY METERING TRANSFORMER PLATFORM CAPACFI'OR CLUSTER 1200 KVAR 3 PHASE HORIZONTAL AiR SWITCH RISER AIR AWITCH RISER ,AIR SWITCH SINGLE PHASE TRANSFO~, ER ON MULTI PHASE LINE 2 TRI~SFORMERS ON MULTI PHASE LINE TRANSFORMERS ON MULTI PHASE UNE SINGLE TRANSFORMER ON SINGLE SINGLE INLINE DOUBLE PRIMARY SUPPORT OH-t295 OH-1300 SINGLE PHASE SLACK SPAN 2 PHASE ON WOOD 2 PHASE DOUBLE PRIMARY SUPPORT ON WOOD 2 PHASE DEADEND ON WOOD ,. 2 PHASE DOUBLE DEAOEND ONWOOD 2 PHASE DEADEND SI_ACt(SPAN 2 PHASE i: 2 PHASE DEADEND ON 5FT OH-1311 'OH-1315 OH-1345 OH-1400 OH-1410 2 PHASE DOUBLE DEADEND ON OH-1415 5FT FIBERARM C..iTY OF GARLAND Bid #140-03 Bid close:3 om on ?227/03 REMOVE OH-1E OH-151 OH-151{ OH-1 ! OH-Ii OH-15 OH-l! OH-11 2 PHASE DEADEND SLACKSPAN ON 5FT F~ 3 3 PHASE INLINE DOUBLE pRiMARY SUPPORT 3 PHASE DEADEND ON WOOD # 6TO4/0 3 PHASE DEADEND ON WOOD # 336 TO 477 3 PHASE,DOUBLE DEADEND ON WOOD #6 TO 4~0 RE~ 3 PHASE DOUBLE DEADEND ON WOOD # 3 PHASE DOU~4.E OEADENO ON WOOD 3 PHASE DF_.ADENO SLACKSPAN ON WOOD 3 PHASE DEADENO SLACKSPAN ON wOOD # ~477 OH-1646 B OH-li 3 3 3 PHASE DOUBLE DEADENO ON i TO 4/0 3 PHASE DOUBLE DEADEND ON 5FT FIBER ARM TO 477 3 PHASE DEADEND ON 5F~ FIBER 3 PHASE DEADEND ON 5FT FIBER ARM # $36 TO 477 3 PHASE DEAl)ENO SLACKSPAN ON 6TO 3 PHASE DEADENO SLACKSPAN ON ~ TO 477 3 PHASE VERTICAL DOUBLE DEAD END # 6TO, 3 PHASE DOUI~LE DEADEND # 336 3 PHASE UNDERBUILD ON DUAL PHASE SUPERVISORY CABLE INLINE C .ONSTRUCTION SUPERVISORY CABLE OH-1720 OH-i~ SIDEWALK GUY POLE BAND DOWN GUY & 10" ANCHOR WITH GUY TP.A~ OH-t730 1~" OH-1765 EXPANDING POLE KF_Y REMOVE su~c~ sP~ POLE ,. SPEC # DE,S..CRIPTION .., iNSTALL ,. REMOVE : O!-1..50 ~.,FT WOOD POLE. C~ oH-e5 eeFT wooo POLE · OH-70 70FT WOOD POLE ,. ~ WiRE ......... WIRE $!?~ DESC, RIPTION ~ INSTALL. PER FT REMOVE ~.~.R FT #4 A¢-_~ OVERHEAD CONDUCTOR , ,, .... #2ACSR ., O~CONO~. OR '~.O # 4~ A,CSR O.V. E~HEAD COND. UCT~.. #3~6 ,CSR O, VERHE~. CQNDUCTOR # 47,7 AC,SR ,OVERHEAD CONDUCTOR '# 2 TRiPLE~. ...... SERV!CE W~E ^~UM~,,"U."-. # t/0 TRIPLEX .,. SERVi.CE WI.RE ALUMINUM , . # 2/0 iAiPe ~=X SERVICE WIRE ALUMINUM . .. ~- [~C~} .-. ~, ~ [~ -- # 2/0 QUADRAPLEX SERVICE. WtRE ~£UMINUM,. # soo cu ~_~oo, MCa ,CO. PER -- #2/0 15KVJ UNDERG._ROUNDCONCEFTTRIC,~JACKET, PRIMARY CITY OF GARLAND Bid #140-03 Bid close:3 mn on 2127103 SPEC UGo2700 UG-2705 UG-271 LJC~2715 UG-271 ~ UG-2720 UG-2725 UG-2740A UG-2425 T25PM240 UNDERGROUND DESCRIPTION SINGLE PHASE RISER IN FIBER OR WOOD #2OR2/0 SINGLE 2 PHASE RISER ON FIBER OR WOOD #2 OR2/0 SINGLE 3 PHASE RISER ON FIBER ORWOOD # 2 TO 2/0 IN 4" CONDUIT DUAL SINGLE PHASE RISER ON FIBER ORWOOD # 2 TO 2/0 iN 3' CONOUIT · TWO SINGLE PHASE RISERS ON FIBER ORWOOD # 2 TO 2/0 IN 3" CONDUIT DUAL 2 PHASE RISER ON FIBER OR WOOD # 2 TO 2]0 IN 4' CONDUIT DUAL $ PHASE RISER ON F~BER ORWOOD # 2 TO 2/0 IN 4' CONDUIT 600 AMP :3 PHASE RISERWI't'H SOLID BLADE DISCONNECT ON FIBER ORWOOD 600 AMP 3 PHASE RISER WITI'{ SOLID BLADE ON FEiER OR WOQD CHANGE OUT SUBSURFACE TRANSFORMER TO PADMOUNT 25-100 KVA PADMOUNT TRANSFORMER INSTALLATION 25 KVA PADMOUNT TRANSFORMER 50 KVA PAOMOUNT TRANSFORMER REMOVE TT5PM240 75 KVA PADMOUNT 1' 100 KVA PADMOUNYTRANSFOFUdER INSTALL 2" OR 3" CONDUIT WiTH PULL STRING PROMPT PAYMENT DISCOUNT c,~ % FOR PAYMENT MADE WITHIN ~DAYS OF ACCEPTANCE OF GOODS 'OR SERVICES. Payment~Terms: Net 30 If PROMPT PAYMENTS .are not offered or accepted, payments shall be made 30 days after receipt and acceptance of goods or services or after the date of receipt of the invOiCe, ~_~. whichever is later. CITY OF GARLAND Bid #140-03 Bid close:3 rim on 2/27/03 2O AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 2, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Tom Shaw 349-7100 SUBJECT Consider adoption of an Ordinance accepting sealed competitive proposals and awarding a comract for construction services for the City of DeNon; providing for the expenditure of funds therefore; and providing an effective date (RFSCP 3016-Purchasing Office Renovation awarded to Smith Comractors, Inc. in the amoum of $157,000). BID INFORMATION This competitive sealed proposal is for the renovation of the Purchasing Division offices at 901 B Texas Street, DeNon, Texas. The project includes renovation of the second floor space, construction of an office complex with conference room and compliance with ADA requiremems. Access to the Purchasing Offices will be changed from a stairway inside the Warehouse to a reception area near the Service Center Training Room. Four competitive sealed proposals were received and evaluated by team members from Purchasing, Facilities Management, and Utility Administration. Smith Contractors, Inc. was chosen as the best and most responsive bidder. RECOMMENDATION We recommend this competitive sealed proposal contract be awarded to Smith Contractors, Inc. in the amoum of $157,000 subject to further investigation of value engineering suggestions. PRINCIPAL PLACE OF BUSINESS Smith Contractors, Inc. Garland, TX STAFF COST ESTIMATE This project was estimated to be approximately $172,000 including furniture. ESTIMATED SCHEDULE OF PROJECT Construction is estimated to take 100-125 days. Agenda Information Sheet September 2, 2003 Page 2 FISCAL INFORMATION Funding for this project is budgeted in project number 100053441 and from the Materials Management budget. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AIS-RFCSP 3016 Z ORDINANCE NO. AN ORDINANCE ACCEPTING SEALED COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR CONSTRUCTION SERVICES FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (RFSCP 3016-PURCHASING OFFICE RENOVATION AWARDED TO SMITH CONTRACTORS, 1NC. IN THE AMOUNT OF $157,000). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of Construction Services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFSCP NUMBER CONTRACTOR AMOUNT 3016 Smith Contractors, Inc. $157,000 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. That by acceptance and approval of the above numbered items of the submitted proposals, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved proposals or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-RFSCP 3016 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 2, 2003 Materials Management Questions concerning this acquisition may be directed to Jim Coulter 349-7194 Kathy DuBose, Fiscal and Municipal Services=~''~ SUBJECT Consider adoption of an Ordinance approving expenditure of funds for the purchase of epoxy coatings available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3078-Purchase of Epoxy Coatings to Raven Lining Systems, inc. in the estimated amount of $60,000). BID INFORMATION The City of Denton is currently under an EPA Administrative Order to correct infiltration/inflow problems in its wastewater collection system to prevent wastewater overflows during wet weather conditions. Deteriorated manholes are one of the major components that allow run off to enter the wastewater collection system. The manholes are rehabilitated either by constructing new manholes or lining the walls of existing manholes to stop the leakage. The city has been using Raven Lining since the year 2000 to rehabilitate its manholes. The city has a dedicated crew that has been trained and certified as a Raven Lining applicator and has made an investment of over $90,000 to purchase Raven Lining equipment to perform the repairs. This purchase for epoxy coatings is to continue the repair process from September 1, 2003 through September 30, 2004. Raven Linings Systems, inc. is the sole manufacturer of the Raven 405 and AquataPoxy A-10 epoxy coatings that are currently being used. RECOMMENDATION We recommend award of this item to Raven Lining Systems in the estimated amount of $60,000. PRINCIPAL PLACE OF BUSINESS Raven Lining Systems Tulsa, OK ESTIMATED SCHEDULE OF PROJECT This purchase is to continue the manhole lining repair process from September 1, 2003 through September 30, 2004. Agenda Information Sheet September 2, 2003 Page 2 FISCAL INFORMATION This item will be funded from account 640038541.1350.40100. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Sole Source Letter from Raven Lining Systems 1-AlS-File 3078 Attachm~ni .! For a lifetime of protection, Wednesday, August 06, 2003 City of Denton Tom shaw 901.B Texas Street' · Denton, TX 76209 Dear T0m: -. Please accept this letter as a statement of. sole source for Raven 405 and.AquataPoxy A~10, technical data sheets attached. Raven Lining Systems, Inc._is'the s01e manufacturer of these two products. Their. formulations, are protected as a trade secret belonging .to Raven Lining Systems, Inc. Raven 405 is available exclusively to · Certified_Applicators, such as City of Denton, who have purchased certified equipment for its proper spra~/.apptication, If there is any further information or documentation necessarY, please contact'me at 800-324-2810, Sincerely, Vice-President 1024 No[th Lansing Avenue, Tulsa, OK 74106 * 800-324-2810 * 918-584-2810- Fax: 918-582-4311 www. rayen[ining.com *'emait: contact@ravenJining.com ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF EPOXY COATINGS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3078-PURCHASE OF EPOXY COATINGS TO RAVEN LINING SYSTEMS, INC. IN THE ESTIMATED AMOUNT OF $60,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the following purchase of materials, equipment or supplies, as described in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached hereto are hereby approved: FILE NUMBER VENDOR AMOUNT 3078 Raven Lining Systems $60,000 SECTION 2. That the acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. That the City Manager is hereby authorized to execute any contracts relating to the items specified in Section I and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. EULINEBROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 1 PUB Minutes for Consent Agenda Items # 3F, 3G, 3H, 3I and 3J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 DRAFT CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING MINUTES August 18, 2003 9:00 A.M. After determining that a quorum of the Public Utilities Board of the City of DeNon, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 18, 2003 at 9:00 a.m. in the Service Cemer Training Room, City of DeNon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: EXCUSED: Bill Cheek, Charldean Newell, Dick Norton, Rob Rayner, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities George Hopkins 6) Consider approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2004. Smith asked for an explanation of a semence in the electric summary, which stated that DME will now pay franchise fees and ROI on gross revenues from billings; therefore, those fees that did not previously have a franchise fee or ROI componem will be increased to include these costs. Sharon Mays, Director of Electric Utilities, explained that up until the past year, DME did not claim the fees as rate revenue. This greater inclusiveness would also apply to any other miscellaneous charges that affect all of the utilities, such as turn-on and turn-offs. Smith asked how much of an increase would be based on this year's changes. Mays explained that it would amount to approximately $64,000. Board Member Charldean Newell asked if the Board had any changes to the electric rate recommendations. There were none. Newell then asked for the Board's comments regarding water rate recommendations. White expressed concern regarding an increase in franchise fees without an amendment to the City Charter. He stated that the Charter states that up to 6% return on net invested capital shall be transferred to the General Fund (Sec. 12.03 (1) page 31). White commented that the method Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is using does not abide by the Charter. White explained that the City should adopt a charter amendment to address franchise fees and ROI transfers to the General Fund. Newell asked if the Board had any changes to the water rate recommendations. There were none. Newell then opened the discussion to the wastewater rate recommendations. White explained that an increase in the minimum load charge for grass, brush and weeds from $5.00 to $7.50 is too high for individuals living on a fixed income, and stated that, consequently, the City could experience an increase in roadside debris. Cheek wanted to know how many loads of grass and brush does the City receive a year. Jim Coulter, Director of Water Utilities, estimated that the City receives approximately 2,500 to 3,000 small loads per year. He explained that a pickup load of brush might cost less than $1.00 based on the weight of the brush. Coulter explained that the administrative handling and processing costs and grinding costs were not being recorded. Smith wanted to know if these revenues had been paying franchise fees and Return on Investments. Martin said they had not. Smith also asked for clarification regarding establishment of a permit fee for aerobic septic systems. Coulter informed the Board that the City currently charges $125, which includes permit review and inspection of the system, but the fee is approximately 13 years old. White asked if alterations to the aerobic treatment system would cost the same amount. Martin responded that fees for alterations would cost $50. The discussion then turned to the solid waste rate recommendations. Newell asked why DMU needed to establish a rate for customers requesting two 60-gallon waste containers. Martin explained that the City does not currently have a rate for two containers. White commented that the residential rate for manual collection service with pick ups twice per week will increase from $17.50 to $18.20, and asked how many bulky items would the City allow with those collections. Vance Kemler, Director of Solid Waste, explained that, if the bulky items are set out with the regular trash, four items per week would be included in the $18.20 per month. White then asked, if two three-yard dumpsters were picked up three times a week, how many bulky items could be included in that pickup? Kemler explained that for apartments, bulky items are collected on the first Thursday of the month, or the bulky item can be taken to the landfill up to eight times per month at no cost. White stated his concern that multi-family dwellings are becoming dumping grounds for bulky items and would run the risk of being charged the extra $50, plus $10 for each bulky item in excess of the four allowed per month. Scott Lebsack, Assistant Director of Solid Waste, informed the Board that staff would reword page 11, the last paragraph in the Solid Waste Rate Ordinance, making it clear that the $50 charge would apply only if DMU is making an extra trip to pick up a bulky item, and that, if Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is already on -site, the charge would not apply. However, a service fee of $10 per bulky item will be charged for each bulky item in excess of four per month. White expressed several concerns regarding policies associated with utility billing. · Bills are due within 14 days after the date of issue. (Some bills are received in the mail four days before the due date). · Equity concerns regarding residents' bills that may be only $50, but the customer is expected to pay a $10 late fee, which is 25% of their entire bill. · 55-day billing cycles. Martin informed the Board that staff would consider straight 30 days billing instead of prorating. Mays explained that fixed charges (demand charges) can be billed on a 30-day cycle, but the meters have to be grouped geographically and read in cycles. Mays also informed the Board that, in general, bills are calculated on a 28-day or 31-day cycle, and explained that a 55-day cycle is not normal. Smith asked if the discount rate for State universities and colleges was based on legislative mandates. Mays responded by explaining that the discount is a result of State legislation. White referred to the Miscellaneous Rate Ordinance, page 17, section C. He stated that the paragraph leads one to believe that a motion to accept outside solid waste passed, when the motion to accept outside solid waste was defeated at the last PUB meeting by a vote of 3 to 3. Rayner wanted to know if, since that vote was taken, the City Council had the opportunity to review the PUB minutes and had they made a decision. Martin responded that no formal decision was made at the Budget Workshop on August 7, 2003. He informed the Board that Mayor Pro Tem Mark Burroughs did make a statement that any revenue from outside solid waste should be set aside to provide for future landfill and solid waste services for the City of Denton. Martin explained that the City Council in general was supportive of accepting outside solid waste, although there has been no formal decision made. He assured the Board that staff had provided all of the minutes and comments to the City Council prior to the workshop. White raised the landfill air quality issue, which he believes affects quality of life along Mayhill Road and commented that the subject had not been discussed at previous Board meetings. Newell affirmed that the Board would be interested in periodic progress reports regarding the amount of outside solid waste received and the impact on the landfill. White also raised concern that an amendment to the City Charter in 1999 failed to change, and thereby reaffirmed that the City should not enter into a new utility without the vote of the people. Smith asked what section of the City Charter contained the statement. White said he would fax Smith a copy (Sec. 12.04) Newell asked for a vote on each of the rate ordinances: Page 3 of 4 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 Electric Rate Ordinance Water Rate Ordinance Wastewater Rate Ordinance Solid Waste Rate Ordinance Miscellaneous Rate Ordinance Cheek moved to approve, with a second from White. The motion was approved unanimously. Norton moved to approve, with a second from Smith. The motion was approved unanimously. Smith moved to approve, with a second from Cheek. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Page 4 of 4 ORDINANCE NO. 2003- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 2002-267 FOR ELECTRIC SERVICE; INCLUDING ALL PROVISIONS OF ORDINANCE NO. 2002-331 AS A PART OF THE RATE ORDINANCE (SCHEDULE EP); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABiLiTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: ELECTRIC RATE SCHEDULES PAGE R1 Residential Service Rate 2 R2 Residential Service Rate 4 TR Residential Time of Use Rate 6 GSL General Service Large 8 GSS General Service Small 11 TGS General Service Time of Use Rate 14 WK Weekend Rate 18 G1 Local Government Lighting & Power Service Rate 21 [City, County, Independent School District] LS Street Lighting 23 LT Traffic Lighting 25 LO Other Lighting 26 DD Dusk-to-Dawn Lighting [Security Light] 27 DDL Downtown Decorative Lighting 29 DGL Decorative Ground Lighting 30 T 1 Temporary Service Schedule 32 P l interruptible Primary Service 34 ES Standby, Supplementary and Maintenance Service 36 AF Athletic Field 40 iDR Industrial Development Rate 42 EP EnergySave Program 43 MTR Premium-Efficiency Motor Rebate 47 UPS Uninterruptible Power Supply 49 ECA Energy Cost Adjustment 51 Special Facilities Rider 52 Discount Rider for State Universities and Colleges 53 EXHIBIT I SCHEDULE RI RESIDENTIAI~ SERVICE R ATE (Effective 10/01/03) APPIJCATION Applicable to all electric service used for residential purposes in a single family dwelling or an individually metered apartment; supplied at one point of delivery and measured through one meter where usage is not in excess of 700 KWH per 30-day month during the billing months of May through October. If usage in any such month exceeds 700 KWH, billing will be rendered that month under Rate Schedule R2 and thereafter for a period extending through the 12 billing months of the next year ending with the October billing. Annually, in November, the customer may again qualify for the R1 rate provided that consumption has not exceeded 700 KWH per 30-day month during the previous six summer months. Where individual dwelling units are being served through the same meter and the KWH in the billing months of May through October exceed 700 KWH times the number of dwelling units, the billing for that month and thereafter will be rendered under Rate Schedule R2. NET MONTHLY RATE (1) Facility Charge $6.70 / 30 days (2) Energy Charge 3.85¢ / KWH (3) Energy Cost Adjustment Schedule ECA MINIMI JM BII J,1NG Facility Charge TYPE OF SERVICE The City will supply single-phase service at any standard voltages available from the City's distribution system through one standard transformation. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF UTILITY BILLS Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula. Formula: Actual days in readin~ neriod ~ ~ × Customer Facility Charge 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH x KWH rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. SCHEDULE R2 RESIDENTIAl, SERVICE R ATE (Effective 10/01/03) APPLICATION Applicable to any customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. Also applicable to any customer heating with electric energy, resistance or heat pump. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with the applicable rider. NET MONTHI~Y R ATE (1) Facility Charge Single-Phase Three-Phase (2) Energy Charge First 1,000 KWH Additional KWH First 3,000 KWH Additional KWH (3) Energy Cost Adjustment MINIMUM BILLING Single-Phase Three-Phase WINTER SI JMMER Billing months of NOV. through APRIL $ 7.73 / 30 days $15.45 / 30 days 4.34¢ / KWH 3.94¢ / KWH Schedule ECA Facility Charge Facility Charge Billing months of MAY through OCT. $ 7.73 / 30 days $15.45 / 30 days 5.61¢/KWH 6.21¢/KWH Schedule ECA TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required in advance. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF l JTII,ITY BIIJ~S Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading period 30 days x Customer Facility Charge ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block × Rate per KWH in rate block ENERGY COST ADJUSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. SCHEDULE TR RESIDENTIAl, TIME OF 1JSE RATE (Effective 10/01/03) APPLICATION Applicable to any customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. Customers applying for the TR rate must remain on this rate for twelve (12) continuous billing periods. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with the applicable rider. NET MONTHI,Y R ATE (1) Facility Charge Single-Phase Three-Phase $15.45 / 30 days $20.60 / 30 days (2) Energy Charge On-Peak Hours Off-Peak Hours 25.55¢ / KWH 1.41¢ / KWH (3) Energy Cost Adjustment Schedule ECA MINIMUM BILLING Facility Charge TYPE OF SERVICE Single-phase or three-phase at sixty (60) cycles at secondary distribution voltage. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may first be required. DEFINITION OF ON-PEAK HOI JRS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, starting on June 1 and continuing through September 30 each year. The City's on-peak hours may be changed from time to time and the customer will be notified twelve (12) months before such changes become effective. DEFINITION OF OFF-PEAK HOI JRS The City's off-pea~k hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. SPECIAI, FACII]TIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF l JTII]TY BIIJ~S Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Actual days in readine neriod - ~ ~ × Customer Facility Charge 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block × Rate per KWH in rate block ENERGY COST AD.Il JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SCHEDULE GSL GENER AI~ SERVICE I~ARGE (Effective 10/01/03) APPI,ICATION The GSL Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 KVA or 225 KW for all electric service supplied at one point of delivery and measured through one meter. Customers with an average actual demand equal to or greater than 200 KVA or 180 KW during the previous twelve month period may be allowed service under this rate, subject to the minimum billing provision. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with the applicable rider. NET MONTHI,Y R ATE (1) Facility Charge (2) Demand Charge (3) Energy Charge (GL 1) (4) $60.60 / 30 days $8.64 / KVA (Minimum of 250 KVA billed) 1.41¢ / KWH Energy Cost Adjustment: Schedule ECA MINIMI JM BII,I,ING An amount equal to the facility charge, plus a demand charge billed at the above KVA rate, where demand is determined by whichever of the following methods yields the greatest result numerically: (1) the actual monthly KVA demand; (2) 250 KVA; or (3) seventy percent (70%) of the maximum monthly KW/KVA actual demand for any month during the previous billing months of May through October in the twelve months ending with the current month. TYPE OF SERVICE Secondary or primary service available to commercial and industrial customers. Primary service is rendered at one point on the customer's premises at a nominal voltage of 13,200 volts. PRIMARY SERVICE DISCOI JNT Customers who own, operate, and maintain all facilities necessary to receive three phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive a discount of 0.3C/KWH (GL3). Primary service customers utilizing City owned and operated facility and transformation equipment necessary to receive primary voltage service shall receive a discount of 0.1C/KWH (GL2). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. DETERMINATION OF DEMAND The demand shall be determined by the KVA supplied during the fifteen (15)-minute period of maximum use during the current month as determined by City's demand meter, but shall not be less than 70% of the highest monthly KW/KVA actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. If the current monthly demand is less than 250 KVA, and 70% of the actual demand determined during the previous months of May through October is less than either 250 KVA or 225 KW, a minimum of 250 KVA demand will be billed for the month. In all cases, 250 KVA is the minimum demand billable under rate GSL. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readin2 neriod 30 days x Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading r~eriod ~ ~ ~ × KVA Demand × Rate 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH × KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy ta3cen for fuel cost calculated in accordance with Schedule ECA. SCHEDULE GSS GENER Al, SERVICE SMAI,I, (Effective 10/01/03) APPLICATION The GSS rate is applicable to any commercial or industrial customer having a maximum demand less than 225 KW for all electric service supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with the applicable rider. NET MONTHI,Y R ATE (1) Facility Charge Single Phase Three Phase $15.15 / 30 days $20.20 / 30 days (2) Demand Charge $8.00 / KW (First 20 KW not Billed) (3) Energy Charge (GS 1) Customer with 20 KW or below: Block 1 - First 2,500 KWH Block 2 - All Additional KWH 6.75¢ / KWH 3.00¢ / KWH Customer above 20 KW: Block 1 - First 2,500 KWH Block 2 - Next 3,500 + B2T* KWH Block 3 - All Additional KWH 6.75¢ / KWH 3.00¢ / KWH 2.65¢ / KWH * The Block 2 Threshold (B2T) establishes the upper threshold for the Block 2 billing rate above 6,000 KWH as a function of demand, and is determined by the following formula: B2T KWH = [(Actual KW Demand - 20) x 190] No customer shall be billed for KWH not actually consumed. (4) Energy Cost Adjustment Current ECA Schedule M1NIMI ~VI gll ~l An amount equal to the facility charge plus the greater off (1) the actual monthly KW demand charge, or (2) seventy percent (70%) of the maximum monthly actual demand charge for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. TYPE OF SERVICE Secondary service available to commercial and industrial customers. The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may first be required. PRIMARY SERVICE DISCOI JNT Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive a discount of 0.3C/KWH (GS3). Primary service customers utilizing City owned and operated facility and transformation equipment necessary to receive primary voltage service shall receive a discount of 0.1C/KWH (GS2). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. DETERMINATION OF DEMAND The demand shall be determined by the KW supplied during the fifteen (15)-minute period of maximum use during the current month as determined by City's demand meter, but shall not be less than 70% of the highest monthly actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. Billing demand shall be based on an adjusted KW demand which is the highest of the actual monthly demand, less 20 KW or 70% of the maximum monthly actual demand during the preceding months of May through October, less 20 KW. In no case, shall billed demand be less than 0 KW. In cases where the connected load is constant, the City may, at its option, estimate the KW demand. For neon signs, one volt ampere shall be considered the equivalent of 3/4 watt. 12 SPECIAl, FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF l JTII]TY BIIJ~S (a) Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Formula: Actual days in readin~ neriod 30 days × Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading period 30 days × Adjusted KW Demand × Rate ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block × Rate per KWH in rate block ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. SCHEDULE TGS GENER Al, SERVICE TIME OF 1 JSE RATE (Effective 10/01/03) APPLICATION Applicable to any customer having a minimum demand of 250 KVA for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Supplementary service will be available subject to the applicable rider. Not applicable to resale or temporary service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. NET MONTHI,Y R ATE (1) Facility Charge $70.70 / 30 days (2) On-Peak Demand Charge $10.98 / KVA On-Pea& Demand (3) Off-Pea& (System) Demand $ 2.16 / KVA System Demand Charge (4) Energy Charge 0.51 ¢ / KWH (5) Energy Cost Adjustment: Per Schedule ECA MINIMI JM BII,I,ING The minimum monthly bill shall be the sum of the Customer Facility Charge, the Off-Peak Demand Charge, and the On-Peak Demand Charge. The October through May demand charge shall be the measured system demand, plus not less than 100% of the actual maximum monthly on-peak demand for any month during the months of June through September in the twelve (12) months immediately preceding the current month. TYPE OF SERVICE Secondary or primary service available to commercial and industrial customers. Primary service is rendered at one point on the customer's premises at a nominal voltage of 13,200 volts. The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required. PRIMARY SERVICE DISCOI JNT Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage shall receive a discount of 0.3C/KWH (TG5 and TG6). If primary service is provided and the City owns and operates all facilities and transformation equipment necessary to receive primary voltage service, a discount of 0.1 C/KWH will be applied to the customer's bill (TG3 and TG4). The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage, at the City's option. DEFINITION OF ON-PEAK HOI JRS The City's on-pea& hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September. The City's on-pea& hours may be changed from time to time and the customer will be notified twelve (12) months before such changes become effective. DEFINITION OF OFF-PEAK HOURS The City's system (off-pea&) hours, for the purpose of this rate schedule, shall be all hours not designated as on-pea& hours. DETERMINATION OF ON-PEAK DEMAND The on-peak demand shall be determined by the KVA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-pea& hours as recorded by the City's demand meter, but not less than one hundred percent (100%) of the actual maximum on-pea& demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. DETERMINATION OF OFF-PEAK (SYSTEM) DEMAND The off-peak demand shall be determined by the maximum KVA actual demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The off-peak demand will be billed every month. DETERMINATION OF DEMAND BII,I,1NG FOR CIJSTOMERS WITH NO PEAK DEMAND HISTORY DURING OFF-PEAK MONTHS If the customer is new or does not have a history of on-peak use for June through September, and elects to come on the TGS rate, the customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. SI ~PPI,EMENTAI, POWER RIDER Customers requesting standby or supplementary power shall be allowed service under this rate schedule; however, the determination of off-peak demand shall be adjusted to read: The off-peak demand shall be the sum of the maximum KVA demand supplied during the fifteen (15) minute period of maximum use as recorded by the City's demand meter plus the KVA nameplate rating(s) of the customer's generator(s). In the event the customer's generator(s) is/are off-line at the time of the establishment of the maximum off-peak demand, the KVA nameplate rating of the generator(s) unavailable for service shall be removed from the determination of the off- peak demand. SPECIAl, FACILITIES All services which require special facilities in order to meet the customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Actual days in reading period 30 days × Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30)-day-per-month basis and prorated for longer or shorter billing periods using the following formula: Actual days in readin~ neriod 30 days × KVA Billed Demand × Rate ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH × KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. Z7 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SCHEDULE WK WEEKEND R ATE (EFFECTIVE 10/01/03) Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. Not applicable to resale service in any event, nor to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase $20.00 / 30 days $25.00 / 30 days (2) Demand Charge $ 6.40 / KW (First 20 KW not Billed) (3) Energy Charge (GS 1) Customer with 20 KW or below: Block 1 - First 2,500 KWH Block 2 - All Additional KWH 6.75¢ / KWH 3.00¢ / KWH Customer above 20 KW: Block 1 - First 2,500 KWH Block 2 - Next 3,500 + B2T* KWH Block 3 - All Additional KWH 6.75¢ / KWH 3.00¢ / KWH 2.65¢ / KWH * The Block 2 Threshold (B2T) establishes the upper threshold for the Block 2 billing rate above 6,000 KWH as a function of demand, and is determined by the following formula: B2T KWH = [(Actual KW Demand - 20) x 190] No customer shall be billed for KWH not actually consumed. (4) Energy Cost Adjustment Per Schedule ECA 19 M1NIMI JM FIII,I An amount equal to the demand charge as calculated below plus $20.00/month for single -phase service or $25.00/month for three-phase service, per thirty (30) day billing. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required. PAYMENT Bills are due when rendered and become past due if not paid within fifteen (15) calendar days from date of issuance. DETERMINATION OF DEMAND The demand shall be determined by the KW supplied during the fifteen (15) minute period of maximum use during the current month as determined by the City's demand meter. Billing shall be based on an adjusted KW demand, which is the actual demand less 20 KW. The adjusted KW demand will subsequently be used for billing the demand portion of the utility bill. In no case, shall billed demand be less than 0 KW. SPECIAl, FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF UTILITY BILLS Billing for customer facility charge and demand shall be calculated on a thirty (30) day basis and prorated for longer or shorter billing periods using the following formula: (a) Billing - Customer Facility Charge shall be based on twelve (12) billings annually. Formula: Actnal days in reading period × Customer Facility Charge 20 (b) 30 days Billing - Demand Charge shall be based on twelve (12) billings annually. Formula: Actual days in reading period 30 days ENERGY CHARGE x Adjusted KW Demand x Rate Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block x Rate per KWH in rate block ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 21 SCHEDULE G1 I,OCAI, GOVERNMENT IJGHTING & POWER SERVICE RATE [CITY; COl JNTY; AND INDEPENDENT SCHOOI~ DISTRICT] (Effective 10/01/03) APPIJCATION Applicable to any local City, County or School District for all electric service supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, nor to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHI~Y R ATE (1) Facility Charge Single-Phase Three-Phase $15.15 / 30 days $20.20 / 30 days (2) Demand Charge $6.31 / KW (3) Energy Charge 3.03¢ / KWH (4) Energy Cost AdjustmentCurrent ECA Schedule MINIMI JM BII J,ING An amount equal to the demand charge as calculated below, but not less than fifty percent (50%) of the maximum monthly demand charge for any month during the previous billing months of May through October in the twelve (12) months ending with the current month, plus the applicable facility charge per thirty (30) day billing period. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 22 DETERMINATION OF DEMAND The demand shall be determined by the KW supplied during the fifteen (15)-minute period of maximum use during the current month as determined by City's demand meter, but not less than 50% of the highest monthly actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF UTILITY BILLS (a) Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readin2 neriod 30 days x Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readin2 neriod 30 days x KW Billed Demand x Rate ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH x KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 23 SCHEDULE LS STREET 1JGHTING (Effective 10/01/03) APPI JCATION Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHI,Y R ATE (1) F2r, ilJlgg2harge See table (2) Energy Cost A~ustment Current ECA × Monthly Bulb Wattage Factor Facility Charee Bulb Wattaee Factor LSA 100 W Sodium Vapor $ 4.90 / 30 Days 48KWH LSB 250 W Sodium Vapor $ 6.95 / 30 Days 105 KWH LSC 400 W Sodium Vapor $ 8.75 / 30 Days 159KWH LMA LMB LMC LMD 175 W Mercury Vapor $5.65 / 30 Days 70 KWH 250 W Mercury Vapor $6.70 / 30 Days 98 KWH 400 W Mercury Vapor $8.50 / 30 Days 153 KWH 1,000 W Mercury Vapor $15.45 / 30 Days/380 KWH TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may first be required. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 24 PRORATION OF l JTII,ITY BIIJ~S a) Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Actual days in readin~ r~eriod ~ ~ - × # of lights per type × 30 days Customer Facilities Charge ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 25 SCHEDULE LT TRAFFIC 1JGHT1NG (Effective 10/01/03) Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHI,Y R ATE All KWH 5.30¢ / KWH TYPE OF SERVICE At the City's available secondary voltage and phase. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. MAINTENANCE CHARGE Maintenance expenses billed at cost. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH × KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 26 SCHEDULE LO OTHER 1JGHTING (Effective 10/01/03) APPIJCATION Applicable to State and Local Government agencies that install and maintain their own street lights, other than the City of Denton. NET MONTHI,Y R ATE LS l 250 W Sodium Vapor 5.30¢ / KWH LS2 400 W Sodium Vapor 5.30¢ / KWH LM1 400 W Mercury Vapor 5.30¢ / KWH LM2 1,000 W Mercury Vapor 5.30¢ / KWH I DB AP2LICAIJD~ Applicable to other unmetered lighting services. NET MONTHLY RATE Total Watts 1,000 TYPE OF SERVICE At the City's available secondary voltage and phase. x Hours used per Month x KWH Rate BULB WATTAGE FACTOR 105 KWH 159 KWH 153 KWH 380 KWH Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. MAINTENANCE CHARGE Maintenance expenses billed at cost. SPECIAI, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accord with Schedule ECA. 27 SCHEDULE DD JSK TO DAWN 1JGHTING [SECURITY LIGHT] (Effective 10/01/03) APPIJCATION Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHLY RATE (1) See table (2) Energy Cost AdjustmentCurrent ECA × Monthly Bulb Wattage Factor Bulb Wattage Factor DSA tOO W Sodium Vapor $7.75 / 30 Days 48 KWH DSB 250 W Sodium Vapor $10.05 / 30 Days 105 KWH DSC 400 W Sodium Vapor $12.35 / 30 Days 159 KWH DHA 250 W Metal Halide $12.05 / 30 Days 105 KWH DHB 400 W Metal Halide $14.35 / 30 Days 159 KWH Restricted 10/1/97: DMA 175 W Mercury Vapor $6.45 / 30 Days 70 KWH DMB 250 W Mercury Vapor $7.50 / 30 Days 98 KWH DMC 400 W Mercury Vapor $8.35 / 30 Days 153 KWH TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled, mercury or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (t) pole for each installed light, at a distance not to exceed eighty (80') feet from said existing lines, at no charge to the customer. Each additional pole span shall not exceed a span spacing of one hundred (tOO') feet. Additional poles required to install a light in a customer's specifically desired location, and not having a light installed on same, shall bear the cost. 28 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF CONTR ACT A two (2) year contract shall be agreed to and signed by each customer desiring Dusk-to-Dawn Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the monthly municipal utilities bill. In the event that a customer desired the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month- to-month basis and may be canceled by either party upon thirty (30) days notice. SPECIAL FACILITIES All service which requires special facilities in order to meet the customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF l JTIIJTY BIIJ~S Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readin2 neriod 30 days x Customer Facility Charge ENERGY COST ADJUSTMENT A charge per KWH of energy ta&en for fuel cost calculated in accordance with Schedule ECA. 29 SCHEDULE DDL DOWNTOWN DECOR A TIVE 1 JGHT1NG (Effective 10/01/03) Applicable to any customer on the perimeter of the square served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHI,Y R ATE (1) Facility Charge $3.85 / 30 Days (2) Energy Cost AdjustmentCurrent ECA x Monthly Bulb Wattage Factor, based on 415 KWH per Customer TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City's standards and subject to its published rules and regulations. The service is provided between dusk and midnight. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All service which requires special facilities in order to meet the customer's service requirements shall be provided subject to Special Facilities Rider. PRORATION OF l JTIIJTY BIIJ~S Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading period 30 days x Facility Charge ENERGY COST AD.II JSTMENT A charge per KWH of energy ta&en for fuel cost calculated in accordance with Schedule ECA. 3O SCHEDULE DGL DECORATIVE GROI JND IJGHT1NG (Effective 10/01/03) Applicable to any customer using ground lighting served by the City's electric distribution system for outdoor area lighting. The customer owns, operates, and maintains the decorative ground lighting upon installation by the City of Denton. NET MONTHI,Y R ATE (1) Facility Charge (Meter) $6.70 / 30 Days Facility Charge (Per Light) 50 W Sodium Vapor Beacon 50 W Spot 70 W Sodium Vapor Ballard 100 W Sodium Vapor Ballard (2) Energy Charge $2.15 / 30 Days $1.70 / 30 Days $4.50 / 30 Days $4.50 / 30 Days 3.79 cents / KWH TYPE OF SERVICE The City shall furnish and install light fixtures, and deliver electric service to automatically controlled lighting fixtures conforming to the City of Denton's standards and subject to its published rules and regulations. The service is provided between dusk and dawn. TERM OF PER IJGHT FACIIJTY CHARGES At the end often (10) years, the facility charges per light will be discontinued. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 1NSTAI J~ATION COSTS The installation costs will be calculated by the City. The customer is responsible for installation costs at the City's discretion. ~PECIAI~ FACII]TIE~ All service which requires special facilities in order to meet the customer's service requirements shall be provided subject to the Special Facilities Rider. TERM OF CONTR ACT A ten (10) year contract shall be agreed to and signed by the customer desiring Decorative Ground Lighting Service authorizing fixed monthly meter charges, which may be reviewed annually, and to be applied to the monthly municipal utilities bill. The monthly per light facility charge will not change during the ten (t0) year contract period. In the event that a customer desired the removal of the unit or discontinuance of the service prior to completion of ten (t0) years, the remainder of the contract period shall become due and payable. After the end of the initial ten (t0) year contract, service shall continue on a month- to-month basis and may be canceled by either party upon thirty (30) days notice. PRORATION OF l JTII,ITY BIIJ~S Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readine neriod 30 days x Customer Facility Charge 32 SCHEDULE TI TEMPORARY SERVICE SCHEDULE (Effective 10/01/03) APPI,ICATION Applicable when a customer requests electric service on a short term or temporary basis where a customer has received a permit from the City of Denton's Building Inspections Department. This rate is not applicable after the certificate of occupancy has been issued. NET MONTHLY RATE (1) Facility Charge Single-Phase Three-Phase (2) Energy Charge (3) Energy Cost Adjustment $15.15 / 30 days $20.20 / 30 days 6.77¢ / KWH Current ECA Schedule MINIMUM BILLING Facility Charge. TYPE OF SERVICE At the City's available secondary supply. ADDITIONAL TEMPORARY SERVICE CHARGES Labor (Regular Time) $60.00 minimum up to 1 hour. $60.00 for each additional hour (to be measured to the nearest one-quarter hour). Labor (Overtime) $75.00 minimum up to 1 hour. $75.00 for each additional hour (to be measured to the nearest one-quarter hour). Premium time to be added where applicable. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the equipment. Material Material that cannot be salvaged to be billed at stores cost plus 25% plus applicable sales tax. At the time a temporary service is removed or converted, any loss in the material installed due to negligence or willful action by the customer will be billed separately to the customer at replacement cost plus 25% and sales tax. SPECIAl, FACILITIES All services which require special facilities in order to meet the customer's service requirements shall be provided subject to the Special Facilities Rider. See Section 25-23(e) for the standard requirements. FLAT RATE TEMPORARY SERVICE Applicable to new construction of underground residential electric service only. Rate: A flat fee of $195 per lot payable when the customer applies for temporary service. PRORATION OF l JTII]TY BII,I,S Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Formula: Actnal days in readin~ neriod ~ ~ x Customer Facility Charge 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH x KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. SCHEDULE PI 1NTERRI JPTIBI,E PRIMARY SERVICE (Effective 10/01/03) APPLICATION Applicable to all customers taking primary service at a firm power load exceeding 1,000 KVA during the months of June, July, August and September and is, by contract, provided service subject to load interruptions. The City retains the right to limit the number of customers on this rate if the City's load reduction goals are met. NET MONTHLY CHARGE (Estimated Transmission Firm) (1) Facility Charge (2) Energy Charge (3) Demand Charge (4) Energy Cost Adjustment $70.70 / 30 days 0.20¢ / KWH $3.78 / KVA Current ECA Schedule MINIMI JM BII,I,ING An amount equal to the demand charge as calculated below but not less than one hundred percent (100%) of the maximum monthly KVA similarly determined during the previous billing months of May through October in the twelve months ending with the current month, nor less than 1,000 KVA. TYPE OF SERVICE Interruptible primary voltage service (transformation equipment owned by customer) is available to any customer with a twelve (12)-month minimum monthly demand of 1,000 KVA or greater. Interruptible primary service rendered at one point on the customer's premises at a nominal voltage of 13,200 volts or 69,000 volts three-phase at the option of the utility. The primary voltage service customer shall own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage, at the City's option. Where the City elects to meter at secondary voltage, two percent shall be added to the demand charge, the energy charge, and the energy cost adjustment charge to account for transformer losses. 35 DETERMINATION OF DEMAND The demand shall be determined by the KVA supplied during the fifteen (15) minute period of maximum use during the current month as determined by City's demand meter, but not less than 100% of the maximum monthly KVA similarly determined during the billing months of May through October in the twelve months immediately preceding the current month, nor less than 1,000 KVA. SPECIAL FACILITIES All service which requires special facilities in order to meet the customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF l JTIIJTY BIIJ~S (a) Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading period 30 days x Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Formula: Aclnlal days in readin2 neriod - ~ ~ x KVA Demand x KVA Rate 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH x KWH Rate ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 36 SCHEDULE ES STANDBY~ SI JPPI~EMENTARY AND MAINTENANCE SERVICE (Effective 10/01/03) APPIJCATION Applicable in all areas served by the City to customers who: Own and/or operate an electric power generation facility mainly used for non- emergency uses and which has a total nameplate or effective capacity (whichever is lesser) of fifty (50) KVA or more in parallel with the City's electric system for the purpose of generating power for the customer's own consumption, and (2) Employ equipment which is compatible with the City's electric system at the customer's delivery point and which will cause no damage to the City's electric system or equipment or present undue hazards to City personnel, and (3) Own and/or operate an electrical generating facility which has been certified annually by a registered professional engineer practicing in the utility or independent Power Production industry to be a functioning and reliable generating facility. (4) Operate an electrical power generating system at least 6,500 hours annually. (5) Execute an agreement for interconnection and parallel operation with the City. 1NTERCONNECTION COSTS The customer shall reimburse the City for any equipment or facilities required as a result of the installation by the customer of generation in parallel with the City's electric system. The customer shall pay all costs of the City to extend its facilities or modify them at the time of interconnection, or at some future time in order to permit parallel operation of the customer's facility. TYPE OF SERVICE The City shall supply alternating current at sixty (60) cycles and at the voltage and phase of the City's electric system most available to the location of the customer. The primary voltage customer shall own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage, at the City's option. Where the City elects to meter at secondary voltage, the secondary energy and on-pea& demand charges shall apply. 37 NET MONTHLY RATE Primary Service Secondary Service (1) Facility Charge $60.60 / 30 days $25.25 / 30 days (2) Demand Charges: On-Peak Demand Off-Pea& Demand $10.30 / KVA $3.80 / KVA $10.30 / KVA $3.80 / KVA (3) Energy Charges: Non-Emergency Energy Emergency Energy 0.20¢ / KWH 5.25¢ / KWH 0.51¢ / KWH 5.35¢ / KWH (5) Energy Cost AdjustmentCurrent ECA Current ECA If the sum of the Customer Facility Charge, the On-Peak Demand Charge, and the Off-Pea& Demand Charge is less than $1.00 per KVA of installed transformer capacity, $1.00 per KVA of installed transformer capacity will be the monthly charge. M1NIMI JM BII,I lNG The minimum monthly billing shall be the higher of the following: (1) The sum of the Customer Facility Charge, the On-Peak Demand Charge, and the Off- Pea& Demand Charge; or (2) A charge of $1.00 per KVA of installed transformer capacity. DETERMINATION OF ON-PEAK DEMAND The on-pea& demand shall be determined by the KW demand supplied by the City during the fifteen (15) minute period of maximum use during the on-peak hours as recorded by the City's demand meter, but not less than one hundred percent (100%) of the maximum on-peak demand which occurred during the billing months of June through September in the twelve (12) months immediately preceding the current month. 38 DETERMINATION OF ON-PEAK DEMAND - COGENERATION IJNITS NOT OPERATING AND CUSTOMER'S PEAK DID NOT CONTRIBUTE TO CITY'S ANNUAL SYSTEM PEAK If a customer's cogeneration unit(s) is/am off during peak hours, and the customer's peak did not contribute to the City's annual off-peak demand, and the cogeneration unit is one (1) MW or larger, then the nameplate rating of the customer's unit(s) shall be deducted from the peak demand. The customer shall be charged the appropriate on-peak demand charges for the KW supplied by the City for the succeeding twelve (12) months. DETERMINATION OF OFF-PEAK (SYSTEM) DEMAND The off-peak demand shall be determined by the sum of the KW demand supplied during the fifteen (15) minute period of maximum use as recorded by the City's demand meter, plus the KW nameplate rating(s) of the customers generator(s). In no event shall the off-peak demand be less than seventy percent (70%) of the maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. DETERMINATION OF NON-EMERGENCY ENERGY All energy supplied to customers whose generating units are less than one (1) MW capacity. DETERMINATION OF EMERGENCY ENERGY Emergency energy is all energy supplied by the City during peak hours of operation to displace energy normally supplied by the customer's one (1) MW or larger unit. DEFINITION OF ON-PEAK HOI JRS The City's on-pea& hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday. DEFINITION OF OFF-PEAK HOURS The City's off-pea& hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. 39 PRORATION OF l JTIIJTY BIIJ~S (a) Billing for demand shall be calculated on a 30 day per month basis and prorated for longer or shorter billing periods using the following formula: Actual days in reading period 30 days x Customer Facility Charge (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Actual days in readin~ neriod 30 days × KW Billing Demand × Rate ENERGY CHARGE Billing for energy shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block × Rate per KWH in rate block CREDIT FOR ENERGY DEIJVERED INTO CITY'S SYSTEM DIJRING ON-PEAK HOI JR S If Customer-produced energy is fed back into the City's system during on-peak hours, an amount equal to fuel cost calculated in accordance with Schedule ECA, as applicable to such energy is credited monthly, provided that Customer has paid the City for necessary added metering, protective and other equipment as determined by the City. CREDIT FOR ENERGY DEIJVERED INTO CITY'S SYSTEM DI JRING OFF-PEAK HOI JRS If Customer-produced energy is fed back into the City's system during off-peak hours, an amount equal to 70% of the billed ECA charge per KWH (for each KWH delivered back into the City's system) will be credited monthly, provided that Customer has paid the City for necessary added metering, protective and other equipment as determined by the City. ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 4O SCHEDULE AF ATHI,ETIC FIELD (Effective 10/01/03) Applicable to all electric service metered at one point for use to light specified areas for athletic events where such electrical use will not occur between the hours of 2:00 P.M. and 7:00 P.M. for the months of June through September. NET MONTHI~Y R ATE (1) Facility Charge Single-Phase Three-Phase (2) Energy Charge $20.20 / 30 days $30.30 / 30 days Billing months of June through September: 2:00 PM to 7:00 PM (Peak) 7.58¢ / KWH All Other Hours (OffPeak) 3.79¢ KWH Billin2 months of October throu2h May: All hours 3.79¢ KWH (3) Demand Charge Billin2 months of June throu2h Sentember: Peak (2:00 PM - 7:00 PM) $4.70 All Other Hours (OffPeak) $1.11 Billing months of October through May: All hours $1.11 KW KW KW (4) Energy Cost Adjustment Current ECA Schedule 4~_ MINIMI JM FIII,I,1NG Facility Charge TYPE OF SERVICE At the City's available secondary voltage and available phase. For use only between the hours of 7:00 P.M. and 2:00 P.M. from June through September and all hours from October through May. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF l JTII]TY BIIJ,S (a) Billing for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter periods using the following formula: Formula: Actual days in readin~ r~eriod ~ ~ - × Customer Facility Charge 30 days (b) Billing for demand shall be calculated on a thirty (30) day per month basis and prorated for longer or shorter billing periods using the following formula: Formula: Actnal days in readin~ neriod - ~ × KW Demand × Rate 30 days ENERGY CHARGE Billing for the energy charge shall be based on actual KWH consumption during the billing period. Formula: KWH in rate block × Rate per KWH in rate block ENERGY COST AD.II JSTMENT A charge per KWH of energy taken for fuel cost calculated in accordance with Schedule ECA. 42 SCHEDULE IDR INDI JS TR 1A 1, DEVEl DPMENT R ATE (Effective 10/01/03) AVAILABILITY This rider is available to the customers who receive service from Rate Schedules GSS, GSL, or TGS. APPIJCATION This rider is available to electric service supplied at any one location. It is for firm electric service applicable to new and existing customers as described below, over a five-(5) year period. This rider is available to the following classes of customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 225 KVA or 200 KW, as estimated and mutually agreed upon by the Director of Electric Utilities and the customer. (2) Existing customers served under Rate Schedules GSS, GSL or TGS who increase their prior existing metered demand by 225 KVA or 200 KW. This increase shall be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the Director of Electric Utilities and the customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. NET MONTHLY RATE The customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (For GSS and GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period Reduction to Billing Demand or System Demand First Year 50% Second Year 40% Third Year 30% Fourth Year 20% Fifth Year 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 43 SCHEDULE EP ENERGYSAVE PROGRM (Effective 10/01/03) APPLICATION/PROGRAM SUMMARY Demon Municipal Electric ("DME") through this program, called "EnergySave", is offering cash payments as incentives in the form of rebates to customers who purchase and install high-efficiency air conditioners or heat pumps for existing residemial or commercial facilities. This program will also provide structure incemives in the form of rebates, in the amoum of $2,000 per qualifying structure, to residemial builders of single-family residences for meeting specific DME structure requirements. Satisfying these construction requirements will improve a residential structure's heating and cooling systems' operating efficiency. Apartmems and multiple unit residemial structures will qualify for the air conditioner rebates, but will not qualify for the structure incemive, if they meet the applicable EnergySave Program Guidelines. The EnergySave Program's objectives are primarily to reduce energy demand and consumption, thereby allowing the customers of DME to save dollars on their utility bills, reducing the peak load of the City of DeMon's electric system, and promoting energy efficiem heating and cooling. The EnergySave Program will be in effect each fiscal year beginning on October 1, umil the allotted funding is depleted. At the time the funds are depleted, no additional applications for participation will be accepted umil the next fiscal year. PROGRAM GUIDELINES I. Qualification Guidelines for HVAC Eoyipment A. All installations must be for accounts served by the DME and must meet all applicable national, local, and manufacturers' codes and specifications. B. To qualify for the equipmem incemive, the equipmem must be new when installed. C. All equipmem must be purchased. No leased or lease/purchased equipmem will qualify for a cash rebate. D. Installations must be made by licensed contractors and/or dealers. E. No rebate will be paid on a partial replacemem of an air conditioner. The condenser unit and the evaporator coil must be replaced to qualify for a rebate. F. Requests for paymem must be received by DME within thirty (30) days of installation. G. Equipmem and installation must be permitted and inspected by the City's Building Inspection Department before final approval for payment is issued. 44 The EnergySave Program guidelines and paymems are subject to change by DME without prior notice. DME may, at any time, discontinue the EnergySave Program without prior notice. Paymems shall be credited to the recipiems' utility account with DME. II. Qualification Guidelines for Structure Incentive A. $2,000.00 per qualifying structure is offered to a builder or authorized agem. B. Builder, or authorized agem, must be enrolled in the DeNon Municipal Electric EnergySave Program (EnergySave). Each home participating in the EnergySave program must be registered with DME prior to construction and must also comply with the 2000 IECC requirements relating to residential structures. D. Install a 1.5-ton or above central air conditioner or heat pump having a minimum efficiency rating of 14 SEER. E. Install minimum insulation off R49 - ceiling (uniform application) R30 - under decking R30 - cathedral or vaulted ceiling R30 - floor R13 - wall cavity Insulation should not contact radiant barrier roof decking. F. Exterior glass must meet minimum high efficiency standards 0.4 or below - solar heat-gain coefficiem 0.4 or below - U-factor G. Programmable Thermostat- EnergyStar approved H. Radiant Barrier Decking Must maintain air gap between insulation and decking I. Acceptable attic ventilation One square inch of ventilation per square foot of attic floor, or rate of air exchange of entire volume of attic air once at per minute Structure Incentives for new homebuilders must also comply with the respective restrictions and guidelines set forth by the international Residential Code (iRC). iii. General Procedures A. Application 1. Equipment: An application for equipment incentive must be completed and sent to Denton Municipal Electric within sixty (60) days of installation of new or replacement equipment. Participating dealers have application forms and will complete these forms for the purchaser. It is the purchaser's responsibility to see that the dealer completes the form and submits it to DME. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. 2. Structure Incentive: To qualify for residential structure incentives, a builder/developer or authorized agent must be registered as an authorized Denton Municipal Electric EnergySave Authorized Builder. To become a recognized EnergySave builder, applicant must complete and submit a Denton Municipal Electric EnergySave Builder Application form to the Director of Electric Utilities. Applicant must also meet the requirements listed in the iECC and EnergySave guidelines. B. Inspections Installations of central air-conditioning systems must be permitted and will be inspected by the City's Building inspection Department, and must be approved before rebates will be processed. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. New structures will be randomly audited to insure adherence to the required energy efficient construction specifications. C. Payments to Participants 1. Equipment Retrofit (Existing residences) Cash payments will be made to the purchaser of the qualifying replacement equipment. Participating retail equipment dealers will receive a cash payment of $20 per unit for the sale of window units, central air conditioning systems, or heat pumps to offset their cost for properly filling out the applications for purchasers of retrofit equipment. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by Denton Municipal Electric. 2. New equipment and structure incentive Program participants are responsible for submitting the correct information. DME will not issue any additional payment unless the payment was incorrect due to a mistake in processing by a City employee. The twenty-dollar ($20.00) payments to dealers will be made only if they supply the qualifying equipment to the customer or builder who is paying for the installation of the equipment. Dealers and purchasers may be denied payment for failure to follow program guidelines such as: failing to supply correct SEER/EER figures; installing equipment which is not new; replacing part of a split system; or failure to fill out rebate forms properly. All submissions are subject to lawful verification of identification and entitlement to the EnergySave credit by DME. Payments will be made to customers who purchase and install new qualifying equipment. If a tenant purchases and installs qualifying equipment, the payment is made to the tenant. If the owner of rental property purchases and installs qualifying equipment, the payment is made to the owner. IV. Payment Sche&lle Tyne ofl Jnit Central Air Conditioning Central Heat Pumps Geothermal Heat Pump Room Air Conditioners Room Heat Pumps SEER/EER 14.0 + 14.0 + 14.0 + 12.0 + 12.0 + Incentive $600/unit $700/unit $700/unit $50/unit $50/unit SCHEDULE MTR PREMII ~VI-EFFICIENCY MOTOR REBATE (Effective 10/01/03) APPI,ICATION/PROGR AM SI JMMARY The City of Demon Utility Departmem is offering cash paymems to customers who purchase and install premium-efficiency motors and adjustable speed drives in facilities serviced by Demon Electric Utility. The program's objective is to reduce energy demand and consumption, thereby saving customers dollars on their utility bills and reducing the peak load of the City of Demon's electric system, thereby conserving energy and improving the power factor. PROGR AM Gl JIDEI JNES All installations must be for accounts served by the City of Demon Electric Utility and must meet all applicable national, local, and manufacturers' codes and specifications. To qualify for a rebate, equipmem must be new when installed. All equipmem must be purchased. No leased or lease/purchased equipmem will qualify for a cash rebate. Removed motors must be properly disposed of after inspection and not re-used with the Denton Electric Utility system. Method of disposal must be stated. The City will pay the rebate to the purchaser of the qualifying equipmem upon verification of compliance with program guidelines. Equipmem and installation are subject to inspection by the City's Electric Utility before final approval for paymem is issued. Replacement motors must be the same horsepower or lower than the original motor. Exceptions must be approved in writing by the City's Electric Utility. Only motors 20 horsepower and above are eligible for the program. All information must be complete on the Motor Rebate Application in order for a rebate to be issued (see Motor Rebate Application). The Premium-Efficiency Motor Rebate program guidelines and paymems are subject to change without notice. This program may be discontinued with prior notice, at any time by the City of Demon Electric Utility. REBATE METH©D©I,©GY Rebates for the Premium-Efficiency Motor Rebate Program will be based on the following methodology: REPLACEMENT MOTORS: The Demon Electric Utility staff will visit the site to determine the existing motor's efficiency. If the existing motor is non-operational, an estimate will be made. The customer must provide all information on the rebate application concerning the proposed motor purchase. A new motor must not exceed the horsepower of the existing motor without express written consem by the Demon Electric Utility, which consem shall be given only if the utility finds an increased efficiency. The information concerning the existing and the proposed motors will be emered imo the Motor Master software program to calculate the kilowatt (KW) or kilovolt amperes (KVA) savings yield. The calculation is based on horsepower, efficiency, RPM, and load information. The KW or KVA yield will be multiplied times the rebate incemive amoum of $100/KW or $90/KVA: KW yield x $100 / KW or KVA yield x $ 90 / KVA The Demon Electric Utility will to the site to verify installation, and following successful installation, a rebate check will be mailed to the customer. NEW MOTORS: New motors will follow the procedure outlined above for replacemem motors but the efficiency comparison will be made against a standard new motor, to be determined by the Motor Master software program used by the City, Department of Energy standards, or the Demon Electric Utility. ADJUSTABLE SPEED DRIVES: The Demon Electric Utility will visit the customer site to determine KW/KVA savings from the proposed Adjustable/Variable Speed Drive. Those savings will be awarded on a $100/KW or $90/KVA basis. A watt-meter will be used before and after installation. KW / KVA SAVINGS: Rebates in excess of $1,000.00 require advance approval of the Director of Electric Utilities. 49 SCHEDULE UPS ~NINTERRI ~PTIBI ~E PO~VER SI ~PPI ~Y (Effective 10/01/03) APPIJCATION Applicable to any customer who, by written agreement, receives service for an uninterruptible power supply for a computer or other electrical equipment. Uninterruptible Power Supplies provided by the City of Denton are of the standby type. NET MONTHLY RATE (1) Facility Charge: 0 - 300 Watts Uninterruptible Power Supply 301 - 700 Watts Uninterruptible Power Supply 701 - 1,200 Watts Uninterruptible Power Supply (2) Installation Charge $7.80 / 30 days $14.90 / 30 days $31.85 / 30 days $25.75 For any Uninterruptible Power Supply other than above, the monthly customer charge will be based on the following formula: (1) Monthly Charge: 5% of Annual Maintenance Cost 12 months 6% Annual Return of Investment 12 months 8% Interest on a 5 Year Life PLUS PLUS TYPE OF SERVICE The City shall furnish, install, maintain an automatically controlled alternating current power backup unit conforming to the City's standards and subject to its published rules and regulations. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 50 SPECIAl, FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF 1 JTII]TY BII~I~ (a) Billings for the Facility charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actnal days in readin~ neriod ~ ~ × Customer Facility Charge 30 days SCHEDULE ECA ENERGY COST ADJI JSTMENT (Effective 10/01/03) ENERGY COST AD.II JSTMENT All monthly KWH charges shall be increased or decreased by an amount equal to "X" cents per KWH, to be known as the energy cost adjustment (ECA). The ECA shall be computed during the last month of each fiscal year quarter (December, March, June and September) to be applied to the quarter immediately following. The City shall in no case change the energy cost adjustment more than once in any three (3) month period. The ECA shall be calculated using the following formula: Proiected energy cost for next retorter ECA .... Projected KWH sales for next quarter In the event that actual plus estimated cumulative costs of fuel, variable costs of Texas Municipal Power Agency (TMPA) energy and purchased energy (excluding TMPA's fixed charges) are greater than or less than the actual and projected ECA revenues by $500,000 or more during the next quarter, the Director of Electric Utilities or her designate shall recompute the Energy Cost Adjustment and, with Public Utilities Board approval, may establish an ECA that collects or returns such difference over the next three month period. Such change in ECA shall be applied evenly to each month during the three-month period. 52 (1) (2) SPECIAL FACILITIES RIDER (Effective 10/01/03) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices which are not normally and readily available at the location which the customer requests service, then the City shall provide the service subject to paragraph (2) of this rider. The total cost of all facilities reburied to meet the customer's load characteristics which are incurred by the City shall be subject to a special contract entered into between the Utility and the customer. This contract shall be signed by both parties prior to the City providing service to the customer. DISCOUNT RIDER FOR STATE UNIVERSITIES AND COI,I,EGES (Effective 10/01/03) APPIJCATION Service provided herein is applicable to electric service billed under the otherwise applicable tariffed rate for service supplied to a facility of a "four year state university upper level institution, the University of North Texas, Texas Woman's University or college" as provided in Section 2.2141, under Subtitle E, Title II, Public Utility Regulatory Act of 1995. CREDIT TO MONTHLY BILL OR MONTHLY RATE Customer's monthly bill and/or monthly rate shall be in accordance with the applicable rate schedule(s) in effect on July 1, 1997, shall be reduced by 20%. "Base Rates" are defined as the sum of the following charges: the Facility Charge, the Demand Charge, the Energy Charge and/or the adjustment for short/extended read cycles of the applicable rate schedules. Base rates do not include recovery of fuel and purchased energy costs, including, without limitation, energy cost adjustments (the ECA rate or its successors). All other charges and calculations in the rate schedule are unchanged. The rates initially established on July 1, 1997 by this Discount Rider shall be the maximum or ceiling rate charged to the University of North Texas ("UNT") and Texas Woman's University ("TWU") during the term of the seven (7) year power supply agreement. If during the term of the power supply agreement any applicable tariffed "Base Rates" are reduced by more than 10%, the discounted rates for UNT and TWU will be reduced such that the discounted "Base Rates" are always at least 10% below any tariffs that will otherwise be applicable to the universities. At no time shall tariffed base rate decrease cause the rate discount to the two (2) universities to decrease by more than 50% over the term of the power supply agreement. 54 SEC. ff2D2~Z That the Assistam City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedules EP and MTR, as the use of more efficiem air conditioning compressors, heat pumps, motors, and thermal storage is in the best imerest of the City of Demon, as such will reduce the pea_k-load and conserve energy, which are public purposes of the City. SECTION 3. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 4. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 5. That this ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric on and after October 1, 2003; and a copy of said rates shall be maintained on file in the Office of the City Secretary. PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: 55 1 PUB Minutes for Consent Agenda Items # 3F, 3G, 3H, 3I and 3J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 DRAFT CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING MINUTES August 18, 2003 9:00 A.M. After determining that a quorum of the Public Utilities Board of the City of DeNon, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 18, 2003 at 9:00 a.m. in the Service Cemer Training Room, City of DeNon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: EXCUSED: Bill Cheek, Charldean Newell, Dick Norton, Rob Rayner, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities George Hopkins 6) Consider approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2004. Smith asked for an explanation of a semence in the electric summary, which stated that DME will now pay franchise fees and ROI on gross revenues from billings; therefore, those fees that did not previously have a franchise fee or ROI componem will be increased to include these costs. Sharon Mays, Director of Electric Utilities, explained that up until the past year, DME did not claim the fees as rate revenue. This greater inclusiveness would also apply to any other miscellaneous charges that affect all of the utilities, such as turn-on and turn-offs. Smith asked how much of an increase would be based on this year's changes. Mays explained that it would amount to approximately $64,000. Board Member Charldean Newell asked if the Board had any changes to the electric rate recommendations. There were none. Newell then asked for the Board's comments regarding water rate recommendations. White expressed concern regarding an increase in franchise fees without an amendment to the City Charter. He stated that the Charter states that up to 6% return on net invested capital shall be transferred to the General Fund (Sec. 12.03 (1) page 31). White commented that the method Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is using does not abide by the Charter. White explained that the City should adopt a charter amendment to address franchise fees and ROI transfers to the General Fund. Newell asked if the Board had any changes to the water rate recommendations. There were none. Newell then opened the discussion to the wastewater rate recommendations. White explained that an increase in the minimum load charge for grass, brush and weeds from $5.00 to $7.50 is too high for individuals living on a fixed income, and stated that, consequently, the City could experience an increase in roadside debris. Cheek wanted to know how many loads of grass and brush does the City receive a year. Jim Coulter, Director of Water Utilities, estimated that the City receives approximately 2,500 to 3,000 small loads per year. He explained that a pickup load of brush might cost less than $1.00 based on the weight of the brush. Coulter explained that the administrative handling and processing costs and grinding costs were not being recorded. Smith wanted to know if these revenues had been paying franchise fees and Return on Investments. Martin said they had not. Smith also asked for clarification regarding establishment of a permit fee for aerobic septic systems. Coulter informed the Board that the City currently charges $125, which includes permit review and inspection of the system, but the fee is approximately 13 years old. White asked if alterations to the aerobic treatment system would cost the same amount. Martin responded that fees for alterations would cost $50. The discussion then turned to the solid waste rate recommendations. Newell asked why DMU needed to establish a rate for customers requesting two 60-gallon waste containers. Martin explained that the City does not currently have a rate for two containers. White commented that the residential rate for manual collection service with pick ups twice per week will increase from $17.50 to $18.20, and asked how many bulky items would the City allow with those collections. Vance Kemler, Director of Solid Waste, explained that, if the bulky items are set out with the regular trash, four items per week would be included in the $18.20 per month. White then asked, if two three-yard dumpsters were picked up three times a week, how many bulky items could be included in that pickup? Kemler explained that for apartments, bulky items are collected on the first Thursday of the month, or the bulky item can be taken to the landfill up to eight times per month at no cost. White stated his concern that multi-family dwellings are becoming dumping grounds for bulky items and would run the risk of being charged the extra $50, plus $10 for each bulky item in excess of the four allowed per month. Scott Lebsack, Assistant Director of Solid Waste, informed the Board that staff would reword page 11, the last paragraph in the Solid Waste Rate Ordinance, making it clear that the $50 charge would apply only if DMU is making an extra trip to pick up a bulky item, and that, if Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is already on -site, the charge would not apply. However, a service fee of $10 per bulky item will be charged for each bulky item in excess of four per month. White expressed several concerns regarding policies associated with utility billing. · Bills are due within 14 days after the date of issue. (Some bills are received in the mail four days before the due date). · Equity concerns regarding residents' bills that may be only $50, but the customer is expected to pay a $10 late fee, which is 25% of their entire bill. · 55-day billing cycles. Martin informed the Board that staff would consider straight 30 days billing instead of prorating. Mays explained that fixed charges (demand charges) can be billed on a 30-day cycle, but the meters have to be grouped geographically and read in cycles. Mays also informed the Board that, in general, bills are calculated on a 28-day or 31-day cycle, and explained that a 55-day cycle is not normal. Smith asked if the discount rate for State universities and colleges was based on legislative mandates. Mays responded by explaining that the discount is a result of State legislation. White referred to the Miscellaneous Rate Ordinance, page 17, section C. He stated that the paragraph leads one to believe that a motion to accept outside solid waste passed, when the motion to accept outside solid waste was defeated at the last PUB meeting by a vote of 3 to 3. Rayner wanted to know if, since that vote was taken, the City Council had the opportunity to review the PUB minutes and had they made a decision. Martin responded that no formal decision was made at the Budget Workshop on August 7, 2003. He informed the Board that Mayor Pro Tem Mark Burroughs did make a statement that any revenue from outside solid waste should be set aside to provide for future landfill and solid waste services for the City of Denton. Martin explained that the City Council in general was supportive of accepting outside solid waste, although there has been no formal decision made. He assured the Board that staff had provided all of the minutes and comments to the City Council prior to the workshop. White raised the landfill air quality issue, which he believes affects quality of life along Mayhill Road and commented that the subject had not been discussed at previous Board meetings. Newell affirmed that the Board would be interested in periodic progress reports regarding the amount of outside solid waste received and the impact on the landfill. White also raised concern that an amendment to the City Charter in 1999 failed to change, and thereby reaffirmed that the City should not enter into a new utility without the vote of the people. Smith asked what section of the City Charter contained the statement. White said he would fax Smith a copy (Sec. 12.04) Newell asked for a vote on each of the rate ordinances: Page 3 of 4 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 Electric Rate Ordinance Water Rate Ordinance Wastewater Rate Ordinance Solid Waste Rate Ordinance Miscellaneous Rate Ordinance Cheek moved to approve, with a second from White. The motion was approved unanimously. Norton moved to approve, with a second from Smith. The motion was approved unanimously. Smith moved to approve, with a second from Cheek. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Page 4 of 4 ORDINANCE NO. 2003- AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED iN ORDINANCE NO. 2002-268 FOR WATER SERVICE AND WATER RATES; AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); ADDING A FEE FOR PASS-THROUGH RAW WATER SENT FROM LAKE CHAPMAN TO LAKE LEWiSViLLE FOR THE UPPER TRINITY REGIONAL WATER DiSTRiCT (SCHEDULE WCL); AMENDING THE WATER TAP AND METER FEES; AMENDING THE FIRE HYDRANT INSTALLATION FEES; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABiLiTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES Residential Water Service PAGE 2 WC Commercial/Industrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 10 WW2 Wholesale Treated Water Service to Upper Trinity Regional Water District 11 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 13 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District From Lake Chapman into Lake Lewisville 14 Water Tap and Meter Fees 15 Fire Hydrant Installation 17 Special Facilities Rider 18 EXHIBIT II SCHEDULE WR RESIDENTIAl, WATER SERVICE (Effective 10/01/03) Applicable for single family residential service, and individually metered apartments, mobile homes, or multi-family facilities with less than four units, with or without wastewater service. (WR) Applicable for single family residential service, and individually metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, with or without wastewater service. (WRO) The rate is also applicable where the metered water is not returned to the wastewater system for collection and treatment, i.e. lawn sprinkler or septic system. (WRN) Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHLY RATE (WR) - RESIDENTIAL WATER SERVICE; AND MONTHI,Y RATE (WRN~ -METERED WATER NOT RETIJRNED TO WASTEWATER SYSTEM FOR COLLECTION AND TREATMENT (1) Facility Charge Billing Per 30 Days 3/4" Meter $ 9.55 1" Meter $11.40 1-1/2" Meter $16.25 2" Meter $18.10 (2) Volume Charge Rate Per 1 ~000 Gallons RATE BIDCK PER 30 DAYS WINTER SI JMMER Billing months of NOV. through APRII, Billing months of MAY through OCT. 0-15,000 gals $2.60 15,001-30,000 gals $2.60 Over 30,000 gals $2.60 $2.60 $3.50 $4.35 MONTHI,Y RATES (VVRO) - WATER SERVICE Ol JTSIDE CORPOR ATE IJMITS MONTHLY RATE (1) Facility Charge Billing Per 30 Days 3/4" Meter $11.00 1" Meter $13.10 1-1/2" Meter $18.65 2" Meter $20.80 (2) Volume Charge Rate Per 1,000 Gallons RATE BIDCK PER 30 DAYS WINTER SI JMMER Billing months NOV through APRIl, Billing months MAY through OCT 0-15,000 gals $3.00 $3.00 15,001-30,000 gals $3.00 $4.05 Over 30,000 gals $3.00 $5.00 MINIMUM BILLING Facility Charge. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAI, FACIIJTIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACIIJTY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in billin~ neriod ~ ~ x customer charge 30 days VOII JME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: Gallons in rate block × rate per 1,000 gal. in rate block 1000 gallons PRORATION OF VOI,I JME BIDCKS Billing for the summer period volume charges shall be based on water consumption in each rate block and prorated using the following formula. Formula: Actual days in billin2 nefiod - ~ * x Volume in the rate block 30 days RETAIl, WATER RATES IJNDER DROIJGHT CONTINGENCY PI,AN CONDITIONS - ORDINANCE 2000-006. Under Stage 3 drought conditions, the following residential water rates shall apply for retail customers. Residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. STAGE 3 WR RATE BLOCKS PER THIRTY (30) DAYS l JNDER DROI JGHT CONTINGENCY PI,AN WINTER Billing months of NOV. throueh APRIl, SI JMMER Billing months of MAY throueh OCT. 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $2.60 $2.60 $2.60 $2.60 $3.50 $5.22 STAGE 3 WRO RATE BLOCKS PER THIRTY (30) DAYS UNDER DROUGHT CONTINGENCY PLAN WINTER Billing months of NOV. through APRIL SI JMMER Billing months of MAY through OCT. 0-15,000 gals $3.00 $3.00 15,001-30,000 gals $3.00 $4.05 Over 30,000 gals $3.00 $6.00 Under Stage 4 drought conditions, the following residential water rates shall apply for retail customers. Residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. STAGE 4 WR RATE BLOCKS PER THIRTY (30) DAYS UNDER DROUGHT CONTINGENCY PLAN WINTER Billing months of NOV. through APRIL SI JMMER Billing months of MAY through OCT. 0-15,000 gals $2.60 15,001-30,000 gals $2.60 Over 30,000 gals $2.60 $2.60 $4.2O $5.22 STAGE 4 WRO RATE BLOCKS PER THIRTY (30) DAYS UNDER DROUGHT CONTINGENCY PLAN WINTER Billing months of NOV. through APRIL 0-15,000 gals 15,001-30,000 gals Over 30,000 gals $3.00 $3.00 $3.00 SI JMMER Billing months of MAY through OCT. $3.00 $4.86 $6.00 SCHEDULE WC COMMERCIAl,fiND[ JSTRIAI, WATER SERVICE R ATE (Effective 10/01/03) APPIJCATION Applicable to all commercial and industrial users, or other water users not otherwise classified under this ordinance, for all water provided at one point of delivery and measured through one meter. (WC) Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one point of delivery and measured through one meter, with or without wastewater service. (WCO) Also applicable where the metered water is not returned to the wastewater system for collection and treatment, i.e. water used in production or irrigation or where the wastewater flow is measured separately. (WCN) Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. MONTHI~Y RATE (WC) and (WCN) (1) Facility Charge Billing Per 30 Days 3/4" Meter $20.20 1" Meter $22.20 1-1/2" Meter $25.75 2" Meter $31.65 3" Meter $66.25 4" Meter $122.50 6" Meter $153.00 8" Meter $178.00 10" Meter $214.00 (2) Volume Charge $2.87 per 1,000 gallons MONTHLY RATE .CWCO) - OUTSIDE CORPORATE LIMITS (1) Facility Charge Billing Per 30 Days 3/4" Meter $21.50 1" Meter $23.50 1-1/2" Meter $29.60 2" Meter $34.50 6 3" Meter $75.00 4" Meter $141.00 6" Meter $176.00 8" Meter $205.00 10" Meter $247.00 (2) Volume Charge $3.25 per 1,000 gallons MINIM[JM BILLING Facility Charge. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAI, FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACII]TY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and prorated for longer or shorter billing periods using the following formula: Formula: Actual days in reading period x Customer Charge 30 days VOI I IMF, CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption × Rate per 1,000 gallons 1,000 COMMERCIAL / INDUSTRIAL WATER RATES (WC / WCN) UNDER DROUGHT CONTINGENCY PI,AN CONDITIONS - ORDINANCE 2000-006. Under Stage 3 drought conditions, the following commercial / industrial water rates shall apply for retail customers. Commercial / industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. STAGE 3 WC / WCN RATE BLOCKS PER THIRTY (30) DAYS UNDER DROUGHT CONTINGENCY PLAN Volume Rate for under 80% volumes $2.87 / 1,000 Gallons Volume Rate for volume over 80% of Prior Billing Volumes $3.44 / 1,000 Gallons Under Stage 4 drought conditions, the following commercial / industrial water rates shall apply for retail customers. Commercial / industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. STAGE 4 WC / WCN RATE BLOCKS PER THIRTY (30) DAYS l JNDER DROI JGHT CONTINGENCY PI,AN Volume Rate for under 70% volumes $2.87 / 1,000 Gallons Volume Rate for volume over 70% of Prior Billing Volumes $3.44 / 1,000 Gallons COMMERCIAl, / INDI JSTRIAI, WATER RATES (WCO) l JNDER DROI JGHT CONTINGENCY PI,AN CONDITIONS - ORDINANCE 2000-006. Under Stage 3 drought conditions, the following commercial / industrial water rates shall apply for retail customers. Commercial / industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. STAGE 3 WCO RATE BLOCKS PER THIRTY (30) DAYS l JNDER DROI JGHT CONTINGENCY PI,AN Volume Rate for under 80% volumes $3.25 / 1,000 Gallons Volume Rate for volume over 80% of Prior Billing Volumes $3.90 / 1,000 Gallons Under Stage 4 drought conditions, the following commercial / industrial water rates shall apply for retail customers. Commercial / Industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. STAGE 4 WCO RATE BLOCKS PER THIRTY (30) DAYS UNDER DROUGHT CONTINGENCY PLAN Volume Rate for under 70% volumes $3.25 / 1,000 Gallons Volume Rate for volume over 70% of Prior Billing Volumes $3.90 / 1,000 Gallons SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 10/01/03) APPIJCATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the "Fire Hydrant Meter Use Agreement." ~ $800.00 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. Deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $2.87 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the "Fire Hydrant Meter Use Agreement", failure by the customer to return the meter to water utilities by the 3rd day of each month for reading, results in acceptance by the customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $32.50 per 30 days Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. Z0 SCHEDULE WW2 WHOLESALE TREATED WATER SERVICE TO l JPPER TRINITY REGIONAI, WATER DISTRICT (Effective 10/01/03) APPIJCATION Applicable to all wholesale treated water sales to the Upper Trinity Regional Water District (UTRWD). Not applicable for temporary, standby, or supplementary service. MONTHI~Y CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2) (1) Facility Charge $176.00 per month (2) Water Volume Rate $0.25 per 1,000 gallons (WD2) (3) Subscribed Demand Rate $348:900.00 per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in full, in accordance with the bill payment delinquency provisions provided for below. MINIMI JM BII J ~ING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for any one day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. If the actual peak demand has an increased daily volume between .05 and .10 MGD from the subscribed demand (50,000 - 100,000 gallons per day), the annual water demand charge will be adjusted up and billed at the actual peak demand level. BII,I, PAYMENT DEI]NQI JF, NCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO 1JPPER TRINITY REGIONAl, WATER DISTRICT (Effective 10/01/03) APPIJCATION Applicable to all raw water sales to the Upper Trinity Regional Water District (UTRWD) per the Interim Sale of Wholesale Raw Water Contract. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.3288 per 1,000 gallons PAYMENT Denton shall render bills by the tenth (10th) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. PAYMENT DEl JNQI JENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. SCHEDULE WCL WHOLESALE RAW WATER PASS-THROUGH UPPER TRINITY REGIONAL WATER DISTRICT FROM I,AKE CHAPMAN INTO I,AKE I~EWlSVlIJ~E (Effective 10/01/03) APPIJCATION Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.02 per 1,000 gallons PAYMENT Denton shall render bills monthly. bill for service is rendered. Bills shall be due and payable within 20 calendar days of the date a BIIJ~ PAYMENT DEI~INQI JENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 14 WATER TAP AND METER FEES (Effective 10/01/03) APPIJCATION This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Size of Tan and Meter Paved Street l Jnnaved Street 3/4 inch $1,410.00 $595.00 1 inch $1,625.00 $730.00 1 1/2 inch $2,055.00 $1,085.00 2 inch $2,275.00 $1,410.00 WATER METER FEES Size of Meter 3/4 inch $305.00 1 inch$375.00 1 ½ inch$490.00 2 inch$630.00 WATER METER REI,OCATIONS Size of Meter Relocation of 10 Feet or l,ess 3/4 inch $285.00 1 inch$285.00 1 ½ inch $340.00 2 inch$390.00 Z5 WATER IJNE TAPS Size of Tan Paved Street I Jnnaved Street 4 inch $2,705.00 $1,625.00 6 inch $2,920.00 $1,895.00 8 inch $3,895.00 $2,815.00 12 inch $4,865.00 $3,730.00 FEES FOR 1NSTAIJ~ATIONS NOT IJSTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinkler systems. FIRE HYDRANT INSTAI,I,ATION (Effective 10/01/03) APPIJCATION This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDRANT INSTAIJ~ATION FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hydrant Installation Paved Street I lnnaved Street Installation Fee $5,030.00 $3,085.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. SPECIAL FACILITIES RIDER (Effective 10/01/03) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the customer. This contract shall be signed by both parties prior to the City providing the requested service to the customer. ~ That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistem or in conflict with the terms of provisions comained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. ~ECfflO2~L That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competem jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Demon, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. That the Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on or after October 1, 2003; and a copy of said rates, fees, and charges shall be maimained on file in the Office of the City Secretary. PASSED AND APPROVED this the day of 2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Documents\Ordinances\03\Water Rate Ordinance - 2003.doc 19 1 PUB Minutes for Consent Agenda Items # 3F, 3G, 3H, 3I and 3J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 DRAFT CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING MINUTES August 18, 2003 9:00 A.M. After determining that a quorum of the Public Utilities Board of the City of DeNon, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 18, 2003 at 9:00 a.m. in the Service Cemer Training Room, City of DeNon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: EXCUSED: Bill Cheek, Charldean Newell, Dick Norton, Rob Rayner, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities George Hopkins 6) Consider approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2004. Smith asked for an explanation of a semence in the electric summary, which stated that DME will now pay franchise fees and ROI on gross revenues from billings; therefore, those fees that did not previously have a franchise fee or ROI componem will be increased to include these costs. Sharon Mays, Director of Electric Utilities, explained that up until the past year, DME did not claim the fees as rate revenue. This greater inclusiveness would also apply to any other miscellaneous charges that affect all of the utilities, such as turn-on and turn-offs. Smith asked how much of an increase would be based on this year's changes. Mays explained that it would amount to approximately $64,000. Board Member Charldean Newell asked if the Board had any changes to the electric rate recommendations. There were none. Newell then asked for the Board's comments regarding water rate recommendations. White expressed concern regarding an increase in franchise fees without an amendment to the City Charter. He stated that the Charter states that up to 6% return on net invested capital shall be transferred to the General Fund (Sec. 12.03 (1) page 31). White commented that the method Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is using does not abide by the Charter. White explained that the City should adopt a charter amendment to address franchise fees and ROI transfers to the General Fund. Newell asked if the Board had any changes to the water rate recommendations. There were none. Newell then opened the discussion to the wastewater rate recommendations. White explained that an increase in the minimum load charge for grass, brush and weeds from $5.00 to $7.50 is too high for individuals living on a fixed income, and stated that, consequently, the City could experience an increase in roadside debris. Cheek wanted to know how many loads of grass and brush does the City receive a year. Jim Coulter, Director of Water Utilities, estimated that the City receives approximately 2,500 to 3,000 small loads per year. He explained that a pickup load of brush might cost less than $1.00 based on the weight of the brush. Coulter explained that the administrative handling and processing costs and grinding costs were not being recorded. Smith wanted to know if these revenues had been paying franchise fees and Return on Investments. Martin said they had not. Smith also asked for clarification regarding establishment of a permit fee for aerobic septic systems. Coulter informed the Board that the City currently charges $125, which includes permit review and inspection of the system, but the fee is approximately 13 years old. White asked if alterations to the aerobic treatment system would cost the same amount. Martin responded that fees for alterations would cost $50. The discussion then turned to the solid waste rate recommendations. Newell asked why DMU needed to establish a rate for customers requesting two 60-gallon waste containers. Martin explained that the City does not currently have a rate for two containers. White commented that the residential rate for manual collection service with pick ups twice per week will increase from $17.50 to $18.20, and asked how many bulky items would the City allow with those collections. Vance Kemler, Director of Solid Waste, explained that, if the bulky items are set out with the regular trash, four items per week would be included in the $18.20 per month. White then asked, if two three-yard dumpsters were picked up three times a week, how many bulky items could be included in that pickup? Kemler explained that for apartments, bulky items are collected on the first Thursday of the month, or the bulky item can be taken to the landfill up to eight times per month at no cost. White stated his concern that multi-family dwellings are becoming dumping grounds for bulky items and would run the risk of being charged the extra $50, plus $10 for each bulky item in excess of the four allowed per month. Scott Lebsack, Assistant Director of Solid Waste, informed the Board that staff would reword page 11, the last paragraph in the Solid Waste Rate Ordinance, making it clear that the $50 charge would apply only if DMU is making an extra trip to pick up a bulky item, and that, if Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is already on -site, the charge would not apply. However, a service fee of $10 per bulky item will be charged for each bulky item in excess of four per month. White expressed several concerns regarding policies associated with utility billing. · Bills are due within 14 days after the date of issue. (Some bills are received in the mail four days before the due date). · Equity concerns regarding residents' bills that may be only $50, but the customer is expected to pay a $10 late fee, which is 25% of their entire bill. · 55-day billing cycles. Martin informed the Board that staff would consider straight 30 days billing instead of prorating. Mays explained that fixed charges (demand charges) can be billed on a 30-day cycle, but the meters have to be grouped geographically and read in cycles. Mays also informed the Board that, in general, bills are calculated on a 28-day or 31-day cycle, and explained that a 55-day cycle is not normal. Smith asked if the discount rate for State universities and colleges was based on legislative mandates. Mays responded by explaining that the discount is a result of State legislation. White referred to the Miscellaneous Rate Ordinance, page 17, section C. He stated that the paragraph leads one to believe that a motion to accept outside solid waste passed, when the motion to accept outside solid waste was defeated at the last PUB meeting by a vote of 3 to 3. Rayner wanted to know if, since that vote was taken, the City Council had the opportunity to review the PUB minutes and had they made a decision. Martin responded that no formal decision was made at the Budget Workshop on August 7, 2003. He informed the Board that Mayor Pro Tem Mark Burroughs did make a statement that any revenue from outside solid waste should be set aside to provide for future landfill and solid waste services for the City of Denton. Martin explained that the City Council in general was supportive of accepting outside solid waste, although there has been no formal decision made. He assured the Board that staff had provided all of the minutes and comments to the City Council prior to the workshop. White raised the landfill air quality issue, which he believes affects quality of life along Mayhill Road and commented that the subject had not been discussed at previous Board meetings. Newell affirmed that the Board would be interested in periodic progress reports regarding the amount of outside solid waste received and the impact on the landfill. White also raised concern that an amendment to the City Charter in 1999 failed to change, and thereby reaffirmed that the City should not enter into a new utility without the vote of the people. Smith asked what section of the City Charter contained the statement. White said he would fax Smith a copy (Sec. 12.04) Newell asked for a vote on each of the rate ordinances: Page 3 of 4 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 Electric Rate Ordinance Water Rate Ordinance Wastewater Rate Ordinance Solid Waste Rate Ordinance Miscellaneous Rate Ordinance Cheek moved to approve, with a second from White. The motion was approved unanimously. Norton moved to approve, with a second from Smith. The motion was approved unanimously. Smith moved to approve, with a second from Cheek. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Page 4 of 4 ORDINANCE NO. 2003- AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 2002-269 FOR WASTEWATER SERVICE; AMENDING THE RESIDENTIAL FACILITY CHARGE AND VOLUME RATE (SCHEDULE SR); AMENDING THE MOBILE HOME PARK FACILITY CHARGE AND VOLUME RATE (SCHEDULE SMH); AMENDING THE COMMERCIAL/INDUSTRIAL FACILITY CHARGE AND VOLUME RATE (SCHEDULE SC); AMENDING THE COMMERCIAL/INDUSTRIAL (SUB-METERS) WATER FOR WASTEWATER BILLING VOLUME RATE (SCHEDULE SCD); AMENDING THE COMMERCIAL/INDUSTRIAL (SUB-METERS) WATER EXCLUDED FROM WASTEWATER FACILITY CHARGE (SCHEDULE SCS); AMENDING THE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD FACILITY CHARGE AND VOLUME RATE (SCHEDULE SEE); AMENDING THE METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS FACILTY CHARGE AND VOLUME RATE (SCHEDULE SM); AMENDING THE WHOLESALE TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION FACILITY CHARGE AND VOLUME RATE (SCHEDULE SSC); AMENDING THE EXIST1NG COMPOST AND WOOD MULCH SCHEDULE TO BE NAMED "DYNO DIRT PRODUCTS" AND TO ADD NEW COMPOST PRODUCTS (SCHEDULE CWM); AMENDING THE CHARGES FOR GRASS/BRUSH/LEAVES AND AMENDING THE MINIMUM CHARGE (SCHEDULE GBL); AMENDING THE WASTEWATER TAP FEES (SCHEDULE ST); AMENDING THE ON-SITE SEWAGE FACILITY CHARGE AS SET FORTH BY SEPARATE ORDINANCE AND INCLUDING THE CHARGE IN THE WASTEWATER RATE ORDINANCE (SCHEDULE OSSF); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: ~ That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WASTEWATER RATE SCHEDULES SR Residential Wastewater Service 3 SMH Mobile Home Park Wastewater Service 6 SC Commercial and Industrial Wastewater Service 9 SCD Commercial/Industrial Wastewater Service Which Measures With 13 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing EXHIBIT III Page 1 SCS Commercial/Industrial Wastewater Service Which Measures With 15 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SEE Equipment Services Facilities and Restaurants & Food 17 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 20 SGE Sale of Treated Wastewater Effluent 22 SSC Wholesale Wastewater Treatment Service for a 24 Governmental Agency, Division or Subdivision CWM DYNO Dirt Products 26 GLB Grass, Brush, and Leaves 28 ST Wastewater Tap Fees 29 OSSF On-Site Sewage Facility Fees 30 SD Storm Drainage Fees 31 Special Facilities Rider 33 Page 2 SCHEDULE SR RESIDENTIAI~ WASTEWATER SERVICE (Effective 10/1/03) APPI,ICATION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton water service. Not applicable for sub-billing or other utility billing by service user in any event. MONTHI,Y RATES (SR) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $6.45 / 30 days (2) Volume Charge $2.47 / 1,000 gallons effluent MONTHLY RATES (SRO) - OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $7.44 / 30 days (2) Volume Charge $2.84 / 1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of 6,500 gallons. MINIMI JM BIIJ]NG - WITH CITY OF DENTON WATER SERVICE Facility Charge. Page 3 VOI,I JME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily l Jsage x 98% × Rate per 1,000 gallons 1,000 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6~500 Gallons x 98% × Rate per 1,000 gallons 1,000 Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACILITY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Aclnlal days in reading period x Customer Charge 30 days MONTHI,Y RATES (,qRNI/,qRNO) - WITHOI JT CITY OF DENTON WATER SERVICE SRNI SRNO Inside Corporate Outside Corporate 15mits 15mits (1) Facility Charge $6.45 / 30 days (2) Volume Charge The customer shall pay a minimum volume charge thousand (5,000) gallons per month. $7.44 / 30 days $2.47 / 1,000 gals $2.84 / 1,000 gals on the established billable volume of five Page 4 M1NIMIJM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The facility charge plus five thousand (5,000) gallons ofwastewater. VOl,l JME CHARGE - WITHOI JT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume × Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACIIJTY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period x Customer Charge 30 days Page 5 SCHEDULE SMH MOBII,E HOME PARK WASTEWATER SERVICE (Effective 10/01/03) Applicable for mobile home parks which are master water metered to provide residential wastewater service. Wastewater service is billed based on the customer's winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHI,Y RATE (SMH) - WiTH CITY OF DENTON WATER SERVICE (1) Facility Charge $16.85 / 30 days (2) Volume Charge $2.47 / 1,000 gallons effluent MONTHI~Y RATE (SMHO) - OIJTSIDE CORPORATE lIMITS WiTH CITY OF DENTON WATER SERVlCE (1) Facility Charge $18.72 / 30 days (2) Volume Charge $2.84 / 1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. Page 6 MINIM[ JM BII,I,ING - WITH CITY OF DENTON WATER SERVICE Facility Charge. VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily l Jsage x 98% × Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Established Billable Volume x Rate per 1,000 gallons x Number of Mobile Homes 1,000 Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the special facilities rider. PRORATION OF FACIIJTY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period × Facility Charge 30 days MONTHI,Y RATE (~qMNI/~qMNO) - WITHOI JT CITY OF DENTON WATER SERVICE SMNI SMNO Inside Corporate Outside Corporate l,knits l,knits (1) Facility Charge $16.85 / 30 days $18.72 / 30 days (2) Volume Charge $2.47 / 1,000 gals $2.84 / 1,000 gals Page 7 The Customer shall pay a minimum volume charge on the established billable volume of five thousand (5,000) gallons per month. MINIMI JM BII,I,ING - WITHal JT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons ofwastewater per mobile home. vail JME CHARGE - WITHal JT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume × Rate per 1,000 gallons × Number of Mobile Homes 1,000 Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRaRATIaN OF FACIIJTY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period × Facility Charge 30 days Page 8 SCHEDULE SC COMMERCIAl, AND 1ND[ JSTRIAI, WASTEWATER SERVICE (Effective 10/01/03) REGULAR COMMERCIAL APPIJCATION Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. MONTHLY RATE (SC) - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $16.85 / 30 days (2) Volume Charge $3.20 / 1,000 gallons effluent Billing based on eighty (80%) percent of monthly water consumption. Plus PRETREATMENT /PROGRAM CHARGES (As Applicable) (SCA) (A) Categorical Customer (SCB) (B) Non-categorical Customer $375.00 / 30 days $ 46.00 / 30 days SAMPLING AND ANALYSIS CHARGES (As applicable) (A) Sampling charge (each) $35.00 (B) Analysis charge (per test) $15.00 MONTHI,Y RATE WATER SERVICE (1) Facility Charge (2) Volume Charge - OIJTSIDE CORPORATE IJMITS WITH CITY $18.72 / 30 days $3.69 / 1,000 gallons effluent Billing based on eighty (80%) percent of monthly water consumption. OF DENTON Page 9 M1NIMI ~VI gll ~l JNG Facility Charge. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume ~ .8 × Rate per 1,000 gallons 1,000 COMMERCIAI, AND INDI JSTRIAI, SI JRCHARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Gu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. MONTHI~Y RATE (SCNI/SCNO) - WITHOI JT CITY OF DENTON WATER SERVICE (1) Facility Charge SCNI SCNO Inside Corporate Outside Corporate l,imits l,imits $16.85 / 30 days $18.72 / 30 days (2) Volume Charge $3.20 / 1,000 gals $3.69 / 1,000 gals The minimum apartment volume charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. Page 10 M1NIMI ~VI gll J JNG (1) Facility charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility charge plus other commercial user estimated monthly wastewater volume. VOl,l JME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume × Rate per 1,000 gallons 1,000 Phis PRETREATMENT / PROGRAM CHARGES (As applicable) (1) Categorical Customer (2) Non-categorical Customer $375.00 / 30 days $46.00 / 30 days SAMPLING AND ANAI,YSIS CHARGES (As applicable) (1) Sampling charge (each) $35.00 (2) Analysis charge (pertest) $15.00 COMMERCIAl, AND INDI JSTRIAI, SI JRCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Gu Vu Bu B is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. Page 11 Su is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACII,ITY CHARGE Billings for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actnal days in reading period × Customer Charge 30 days Page 12 SCHEDULE SCD COMMERCiAL/iNDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUBMETERS), WATER FOR WASTEWATER BILLING (Effective 10/01/03) APPIJCATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this Ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD submetered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHI,Y R ATE (1) Facility Charge Billing Per 30 Days 3/4" Meter $22.36 1" Meter $24.44 1-1/2" Meter $30.78 2" Meter $35.88 3" Meter $78.00 4" Meter $146.64 6" Meter $183.04 8" Meter $213.20 10" Meter $256.88 (2) Volume Charge $3.20 / 1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MINIMI JM BII J,lNG Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet customer's service requirements shall be Page 13 provided subject to the Special Facilities Rider. COMMERCIAI, AND 1NDI JSTRIAI, SI JRCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Gu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. PRORATION OF FACILITY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actnal days in reading period x Customer Charge 30 days VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume ~ .98 x Rate per 1,000 gallons 1,000 Page 14 SCHEDULE SCS COMMERCiAL/iNDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUBMETERS), WATER EXCLUDED FROM WASTEWATER BILLING (Effective 10/01/03) APPIJCATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this Ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer's processes, not returned to the wastewater system, and are therefore excluded from the customer's wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHI,Y R ATE (1) Facility Charge Billing Per 30 Days 3/4" Meter $22.36 1" Meter $24.44 1-1/2" Meter $30.78 2" Meter $35.88 3" Meter $78.00 4" Meter $146.64 6" Meter $183.04 8" Meter $213.20 10" Meter $256.88 (2) Volume Charge - None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume submetered. MINIMUM BILLING Facility Charge. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. Page 15 ~PECIAI~ FACII]TIE~ All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. WASTEWATER SI JRCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Gu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. PRORATION OF FACII,ITY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period x Customer Charge 30 days VOIl JME CHARGE EXCII JSION The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, i.e. removed, from the master meter water volume prior to the wastewater billing volume calculation. Page 16 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 10/01/03) APPI,ICATION Applicable to facilities which perform washing, cleaning or servicing of automobiles, trucks, busses or similar equipment and are categorized by Standard industrial Code Numbers 5541, 7549, 7542, and/or similar code classifications. Applicable to all restaurants and food service establishments which prepare and serve food directly to customers and are categorized by Standard industrial Code Numbers 5812, 5813 and/or similar code classifications. MONTHI,Y RATE (SEE) (1) Facility Charge $16.85 / 30 days (2) Volume Charge $4.42 / 1,000 gallons effluent Billing based on eighty (80%) percent of monthly water consumption. Phis PRETREATMENT / PROGRAM CHARGES (As applicable) (SEA) (A) Categorical (30 days) $375.00 (SEB) (B) Non-categorical (30 days) $46.00 The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING / ANAI~YSIS CHARGES (As Applicable) (1) Sampling charge (each) (2) Analysis charge (per test) $35.00 $15.00 SEE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the Page 17 sanitary sewer. The exemption for the SEE class shall be determined by the City of Denton Environmental Health Services Food Inspection Division. (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BAD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/1 of BaD and 550 TSS as determined by the monitoring performed in Section 2(b). MINlM[JM BlLLING Facility Charge. WASTEWATER SI JRCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-500] B + [Su-600] S]) Where: Gu Vu Bu B Su S is the surcharge for customer X. is the billing volume per 1000 gallons for customer X. is the tested BaD level for user X or 500 mg/1, whichever is greater. is the unit cost factor for treating one unit BaD per 1,000 gallons. is the tested TSS level for user X or 600 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAI~ FACILITIES Page 18 All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACILITY CHARGE Billings for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actnal days in reading period × Customer Charge 30 days VOI,I JME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume ~ .8 × Rate per 1,000 gallons 1,000 Page 19 APPIJCATION SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE IJMITS (Effective 10/01/03) Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. MONTHLY RATE Plus (1) Facility Charge (2) Volume Charge SMI SMO Inside Corporate Outside Corporate l,imits l~imits $208.00 / 30 days $3.20 / 1,000 gals $239.20 / 30 days $3.69 / 1,000 gals (3) Pretreatment/Program Charge (As applicable) (SMA) (A) Categorical (30 days) $375.00 (SMB) (B) Non-categorical (30 days) $46.00 The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPI]NG/ANAI~YSIS CHARGE (As Applicable) (1) Sampling charge (each) $35.00 (2) Analysis charge (per test) $15.00 WASTEWATER SI JRCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Page 2 0 Cu = Vu ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. gu Bu B Su S is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. MINIMI JM BII,I,ING Facility Charge, plus the appropriate Pretreatment / Program Charge, if applicable. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACILITY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period × customer charge 30 days VOI I JME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 Page 21 AP2LICAIZQ~ Applicable for sales SCHEDULE SGE SAI,E OF TREATED WASTEWATER EFFI,I JRNT (Effective 10/1/03) of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODI JCT AVAII,ABII JTY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHI,Y R A TES (1) Facility Charge (2) Volume Charge $16.20 / 30 days $1.35/1,000 gallons MINIM[JM BILLING Facility Charge. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACIIJTIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACIIJTY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Page 22 Actual days in reading period × Customer Charge 30 days VOLUME CHARGE Billing for the wastewater volume shall be based on the effluem volume calculated during the billing period. Formula: Efflaeat3x)Janm × Rate per 1,000 gallons 1,000 Page 23 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY: DIVISION: OR SI JBDIVISION (Effective 10/01/03) APPI,ICATION Applicable to any operates a wastewater collection treatment service. MONTHLY RATES (1) (2) (3) municipal corporation, or other governmental agency or subdivision which system and contracts with the City of Denton for wastewater Facility Charge $187.20 / 30 days Pretreatment/Program Charge (As Applicable) (A) Categorical (B) Non-categorical Volume Charge $375.00 / 30 days $46.00 / 30 days $2.08 / 1,000 gallons Billing shall be based on one-hundred (100%) percent of actual gallons measured. SAMPI]NG/ANAI~YSIS CHARGE (As Applicable) (1) Sampling Charge (each) $35.00 (2) Analysis Charge (per test) $15.00 MINIMUM BILLING Facility Charge. WHOLESALE SURCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.004228 mg/1 of Biochemical Oxygen Demand (BOD) $0.002317 mg/1 of Total Suspended Solids (TSS) Cu = Vu ([Bu-250] B + [Su-250] S]) Page 24 Where: Cu is the surcharge for customer X. gu Bu B Su S is the billing volume per 1000 gallons for customer X. is the tested BOD level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit BOD per 1,000 gallons. is the tested TSS level for user X or 250 mg/1, whichever is greater. is the unit cost factor for treating one unit of TSS per 1,000 gallons. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAl, FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. PRORATION OF FACILITY CHARGE Billing for the Facility Charge shall be based on twelve (12) billings annually and shall be prorated based on the following formula: Actual days in reading period x customer charge 30 days VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume x Rate per 1,000 gallons 1,000 Page 25 SCHEDULE CWM DYNO DIRT PRODI JCTS (Effective 10/1/03) Applicable to any and all customers, whether residemial, commercial, or wholesale, which elect to acquire the City of Demon's Dyno Dirt products for their use. The City of Demon reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. R A TES Dyne Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyne Soil (Top Soil Blend) (2) Dyne Dirt (3) Dyne Lite $27.50 Cubic Yard $22.50 Cubic Yard $30.00 Cubic Yard (B) Wood Mulch (1) Dyno Brown Mini Mulch (2) Dyne Chips (3) Dyne Deco Colored Mulch (4) Dyne Double Grind $17.50 Cubic Yard $10.00 Cubic Yard $30.00 Cubic Yard $17.50 Cubic Yard Purchases, for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discoum, purchases greater than one hundred (100) cubic yards will receive a 40% discount, and purchases greater than 2,000 yards will receive a 50% discoum. (C) City of Demon departmems will receive a 50% discount on all purchases of Dyne Dirt products. (D) One cubic foot bags of Dyno Dirt $1.50 / bag (50 Bag Minimum Purchase) PRODUCT AVAILABILITY The City of Demon produces Dyno Dirt products throughout the year in varying limited quamities. The City of Demon does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. I,OCATION All Dyno Dirt products may be purchased from the City of Demon at the following location: Page 2 6 l,ocafion Address Compost Sales Bldg. Water Reclamation Plant 11 O0 Mayhill Rd. WHOI,ESAI ~E PI JRCHASES All Dyno Dirt products purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is requested. Page 27 SCHEDULE GBL GR ASS / FIR[ hqH / I~EAVES (Effective 10/1/03) APPIJCATION Applicable to all City of Demon residems who submit for deposit at the landfill grass clippings, leaves, and brush, shall pay the following rates: GR ASS / BRI JSH / I,EAVES: Product Characteristics 1. Uncomaminated bagged or un-bagged $16.25 / ton grass, brush, or leaves in less than twelve foot (12') lengths. 2. Uncomaminated bagged or un-bagged $27.00 / ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Comaminated grass, brush, or leaves of any length. $35.00 / ton 4. Whole trees and stumps $48.75 / ton MINIMI JM CHARGE $7.50 per load. Professional landscapers, tree trimmers, and yard maimenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer's location. Grass, brush, and leaves shall not be assessed the City of Demon solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not landfilled. Page 28 SCHEDULE ST WASTEWATER TAP FEES (Effective 10/01/03) This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WITH CLEANOUT Size of Tan Paved Street l lnnaved Street 4 inch $2,000.00 $1,410.00 6 inch 2,110.00 1,570.00 8 inch 2,220.00 1,730.00 10 inch 2,380.00 1,865.00 MANHOI,E BREAKOI JT FEE 6"- 12"Line $165.00 FEES FOR INSTAIJ~ATIONS NOT lISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. Page 2 9 SCHEDULE OSSF ON-SITE SEWAGE FACII,TV PERMIT FEES (Effective 10/01/03) This schedule applies to the new construction of aerobic treatment systems, new construction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Construction of aerobic treatment systems New Construction of non-aerobic treatment systems Repair or Alteration fees (All types of OSSF's) $410.00 $210.00 $5O.OO Page 3 0 SCHEDULE SD STORM DR A1NAGE FEES (Effective 10/01/03) Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of DeNon, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amoum of impervious surface cover that results in water runoff imo the City of DeNon drainage system. MONTHI~Y FEE - RESIDENTIAI~ (~qDR) The residemial fee is applicable to all single-family through fourplex real properties located within the incorporated limits of the City of DeNon, Texas, for which impervious surfaces can be individually idemified. The residemial fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: FEE BI,OCK BIIJ]NG PER 30 DAYS 0 - 600 Square Feet 601 - 1,000 Square Feet 1,001 - 2,000 Square Feet 2,001 - 3,000 Square Feet 3,001 - 4,000 Square Feet 4,001 - 5,000 Square Feet 5,001 - 6,000 Square Feet Over 6,000 Square Feet $ 0.50 $ 1.00 $ 3.35 $ 5.45 $ 7.60 $ 9.75 $12.00 $15.50 MONTHLY FEE - NON-RESIDENTIAL (SDN) The non-residemial fee is applicable to all other real property owned and located within the incorporated limits of the City of Demon, Texas, except as exempted below. The non-residemial fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per 30 days Page 31 PRORATION OF MONTHI,Y FEE Billing for the Storm Drainage Fee shall be based upon twelve (12) billings annually and shall be prorated based on the following formula: Actual Days In Billing Period x Monthly Fee 30 days The following real property owned and located within the incorporated limits of the City of Demon, Texas shall be exempt from imposition of the residemial fee or the non-residemial fee: 1. Real property with proper construction and maimenance of a wholly sufficiem and privately- owned drainage system, not draining imo the City of Demon drainage system, upon the real property's inspection and certification by the City; or 2. Real property held and maimained in its natural state, umil such time that the real property is developed, and all of the public infrastructure constructed thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a structure has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residemial fees or the non-residemial fees are applicable. Page 32 SPECIAL FACILITIES RIDER (Effective 10/01/03) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this Rider. The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. Page 33 SEC_IIDSS_Z That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECILO25L~ That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. That the Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on or after October 1, 2003, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary. PASSED AND APPROVED this the __day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S:\Our Documents\Ordinances\03\Wastewater Rate Ordinance - 2003.doc Page 3 4 1 PUB Minutes for Consent Agenda Items # 3F, 3G, 3H, 3I and 3J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 DRAFT CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING MINUTES August 18, 2003 9:00 A.M. After determining that a quorum of the Public Utilities Board of the City of DeNon, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 18, 2003 at 9:00 a.m. in the Service Cemer Training Room, City of DeNon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: EXCUSED: Bill Cheek, Charldean Newell, Dick Norton, Rob Rayner, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities George Hopkins 6) Consider approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2004. Smith asked for an explanation of a semence in the electric summary, which stated that DME will now pay franchise fees and ROI on gross revenues from billings; therefore, those fees that did not previously have a franchise fee or ROI componem will be increased to include these costs. Sharon Mays, Director of Electric Utilities, explained that up until the past year, DME did not claim the fees as rate revenue. This greater inclusiveness would also apply to any other miscellaneous charges that affect all of the utilities, such as turn-on and turn-offs. Smith asked how much of an increase would be based on this year's changes. Mays explained that it would amount to approximately $64,000. Board Member Charldean Newell asked if the Board had any changes to the electric rate recommendations. There were none. Newell then asked for the Board's comments regarding water rate recommendations. White expressed concern regarding an increase in franchise fees without an amendment to the City Charter. He stated that the Charter states that up to 6% return on net invested capital shall be transferred to the General Fund (Sec. 12.03 (1) page 31). White commented that the method Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is using does not abide by the Charter. White explained that the City should adopt a charter amendment to address franchise fees and ROI transfers to the General Fund. Newell asked if the Board had any changes to the water rate recommendations. There were none. Newell then opened the discussion to the wastewater rate recommendations. White explained that an increase in the minimum load charge for grass, brush and weeds from $5.00 to $7.50 is too high for individuals living on a fixed income, and stated that, consequently, the City could experience an increase in roadside debris. Cheek wanted to know how many loads of grass and brush does the City receive a year. Jim Coulter, Director of Water Utilities, estimated that the City receives approximately 2,500 to 3,000 small loads per year. He explained that a pickup load of brush might cost less than $1.00 based on the weight of the brush. Coulter explained that the administrative handling and processing costs and grinding costs were not being recorded. Smith wanted to know if these revenues had been paying franchise fees and Return on Investments. Martin said they had not. Smith also asked for clarification regarding establishment of a permit fee for aerobic septic systems. Coulter informed the Board that the City currently charges $125, which includes permit review and inspection of the system, but the fee is approximately 13 years old. White asked if alterations to the aerobic treatment system would cost the same amount. Martin responded that fees for alterations would cost $50. The discussion then turned to the solid waste rate recommendations. Newell asked why DMU needed to establish a rate for customers requesting two 60-gallon waste containers. Martin explained that the City does not currently have a rate for two containers. White commented that the residential rate for manual collection service with pick ups twice per week will increase from $17.50 to $18.20, and asked how many bulky items would the City allow with those collections. Vance Kemler, Director of Solid Waste, explained that, if the bulky items are set out with the regular trash, four items per week would be included in the $18.20 per month. White then asked, if two three-yard dumpsters were picked up three times a week, how many bulky items could be included in that pickup? Kemler explained that for apartments, bulky items are collected on the first Thursday of the month, or the bulky item can be taken to the landfill up to eight times per month at no cost. White stated his concern that multi-family dwellings are becoming dumping grounds for bulky items and would run the risk of being charged the extra $50, plus $10 for each bulky item in excess of the four allowed per month. Scott Lebsack, Assistant Director of Solid Waste, informed the Board that staff would reword page 11, the last paragraph in the Solid Waste Rate Ordinance, making it clear that the $50 charge would apply only if DMU is making an extra trip to pick up a bulky item, and that, if Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is already on -site, the charge would not apply. However, a service fee of $10 per bulky item will be charged for each bulky item in excess of four per month. White expressed several concerns regarding policies associated with utility billing. · Bills are due within 14 days after the date of issue. (Some bills are received in the mail four days before the due date). · Equity concerns regarding residents' bills that may be only $50, but the customer is expected to pay a $10 late fee, which is 25% of their entire bill. · 55-day billing cycles. Martin informed the Board that staff would consider straight 30 days billing instead of prorating. Mays explained that fixed charges (demand charges) can be billed on a 30-day cycle, but the meters have to be grouped geographically and read in cycles. Mays also informed the Board that, in general, bills are calculated on a 28-day or 31-day cycle, and explained that a 55-day cycle is not normal. Smith asked if the discount rate for State universities and colleges was based on legislative mandates. Mays responded by explaining that the discount is a result of State legislation. White referred to the Miscellaneous Rate Ordinance, page 17, section C. He stated that the paragraph leads one to believe that a motion to accept outside solid waste passed, when the motion to accept outside solid waste was defeated at the last PUB meeting by a vote of 3 to 3. Rayner wanted to know if, since that vote was taken, the City Council had the opportunity to review the PUB minutes and had they made a decision. Martin responded that no formal decision was made at the Budget Workshop on August 7, 2003. He informed the Board that Mayor Pro Tem Mark Burroughs did make a statement that any revenue from outside solid waste should be set aside to provide for future landfill and solid waste services for the City of Denton. Martin explained that the City Council in general was supportive of accepting outside solid waste, although there has been no formal decision made. He assured the Board that staff had provided all of the minutes and comments to the City Council prior to the workshop. White raised the landfill air quality issue, which he believes affects quality of life along Mayhill Road and commented that the subject had not been discussed at previous Board meetings. Newell affirmed that the Board would be interested in periodic progress reports regarding the amount of outside solid waste received and the impact on the landfill. White also raised concern that an amendment to the City Charter in 1999 failed to change, and thereby reaffirmed that the City should not enter into a new utility without the vote of the people. Smith asked what section of the City Charter contained the statement. White said he would fax Smith a copy (Sec. 12.04) Newell asked for a vote on each of the rate ordinances: Page 3 of 4 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 Electric Rate Ordinance Water Rate Ordinance Wastewater Rate Ordinance Solid Waste Rate Ordinance Miscellaneous Rate Ordinance Cheek moved to approve, with a second from White. The motion was approved unanimously. Norton moved to approve, with a second from Smith. The motion was approved unanimously. Smith moved to approve, with a second from Cheek. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Page 4 of 4 ORDINANCE NO. 2003- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED iN ORDINANCE NUMBERS 2002-270 AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CiTY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; AMENDING THE MANUAL RESIDENTIAL RATE CHARGE; AMENDING THE CONTAINERIZED COLLECTION SERVICE CHARGE (SCHEDULE SWR); AMENDING THE RESIDENTIAL CURBSiDE RECYCLING AND PROCESSING SERVICE CHARGE; AMENDING THE CHARGES FOR MINIMUM BILLING/BASE RATE SERVICE UPON CONDiTiON AND APPLiCATiON (SCHEDULE SWRR); AMENDING THE MONTHLY RATES FOR COMMERCIAL & INSTITUTIONAL SOLID WASTE COLLECTION SERVICES; INCREASING SERVICE CHARGES FOR COMMERCIAL FRONT-LOAD AND SIDE-LOAD CONTAINERS; AMENDING THE CHARGES FOR CONTAINER EXTRA SERVICE; ADDING A NOMINAL CHARGE TO PROVIDE SEMI-AUTOMATED COMMERCIAL CART SERVICE; AMENDING THE HAND COLLECTED COMMERCIAL SERVICE CHARGE; AMENDING THE CHARGES FOR TEMPORARY FRONT LOAD CONTAINER SERVICE; AMENDING THE CHARGE FOR ROLL-OFF OPEN TOP SERVICE; ADDING INCREASED CHARGES FOR REFUSE EQUAL TO OR GREATER THAN 700 POUNDS PER CUBIC YARD - OVERWEIGHT LOADS; AMENDING THE ROLL-OFF COMPACTOR CONTAINER SERVICES CHARGES; AMENDING THE SIX CUBIC YARD COMPACTOR CHARGES; AMENDING THE SHARED COMMERCIAL CONTAINER CHARGES; AMENDING THE CONTAINER DELIVERY FEE AND RELOCATION CHARGES; AMENDING THE INACCESSIBLE CONTAINER CHARGES; ADDING A DIFFICULT CONTAINER ACCESS FEE CHARGE; AMENDING THE LOCK CHARGES (SCHEDULE SWC); ADDING THE COMMERCIAL RECYCLING SERVICES SCHEDULE WITH APPLICATION, QUALiFiCATiON AND MONTHLY RATE (SCHEDULE SWCR); ADDING THE SOLID WASTE COLLECTION AND TRANSPORTATION SERVICES PERMIT SCHEDULE, WITH APPLICATION, GRANTING OF PERMIT, EXCLUSIONS, FEES, TERM AND RENEWAL, AND REVOCATION OR NON-RENEWAL OF PERMITS (SCHEDULE SWP); AMENDING THE MUNICIPAL SOLID WASTE DISPOSAL RATE; DELETING THE OUTSIDE THE CITY LANDFILL RATE; ADDING A LANDFILL VOLUME CHARGE; AMENDING THE MINIMUM LANDFILL CHARGE; AMENDING THE LANDSCAPE WASTE CHARGE; AMENDING THE LANDFILL BULKY ITEMS CHARGE; AMENDING THE INERT MATERIALS CHARGE; AMENDING THE UNSECURED LOADS CHARGE (SCHEDULE SWL); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABiLiTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the charges for Solid Waste collection services as authorized by Section 24-42(b) of Article ii, Section 24-66 of Article iii and Section 24-4 of Article i of Chapter 24; and by Section 32-90 of Article iV of Chapter 32 of the Code of Ordinances of the City of Demon, Texas, are hereby established as follows: EXHIBIT IV SWR SWRR SWRD SWC SWCR SWP SWL SOLID WASTE RATE SCHEDULES Residemial Solid Waste Collection Services Residemial Curbside Recycling and Processing Services Residemial Financial Need Service Discoum Commercial and Institutional Solid Waste Collection Services Commercial Recycling Services Solid Waste Collection and Transportation Services Permit Sanitary Landfill Services PAGE 3 5 6 7 13 15 17 SCHEDULE SWR RESIDENTIAl, SOIJD WASTE COIJ,ECTION SERVICES (Effective 10/01/03) Applicable for residential family-unit solid waste collection service. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any unit or living space in which a person or single family resides. MONTHI,Y R A TES · Manual Collection Service: 2 pickups per week $18.20 per thirty (30) days The City will provide up to two (2) free rolls of plastic garbage bags per calendar year for the residential manual service customer's primary residence. · Containerized Collection Service 1 pickup per Week Nominal Size of Containers 90-gallon container (nominal) 60-gallon container (nominal) 35-gallon container (nominal) 1 Container $15.00 $13.00 $12.00 2 Containers $28.00 per thirty (30) days $25.00 per thirty (30) days per thirty (30) days MINIMI JM BIIJJNG / BASE RATE SERVICE $11.70 per thirty (30) days applicable for residential solid waste service for an unoccupied residential family unit which remains vacant for a period for greater than sixty (60) days. This minimum billing rate shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of one hundred eighty (180) days per calendar year. OTHER CHARGES There is no additional charge for the collection of bagged grass clippings and leaves, or brush and tree limbs which are cut and stacked in less than four foot (4') lengths, if the combined grass/leaves/brush total volume is not over eight cubic yards per collection day. If over eight (8) cubic yards of combined bagged grass clippings, brush, or leaves are placed out for collection on a collection day, charges will be assessed at $5.00 per cubic yard for all cubic yards in excess of eight (8) cubic yards. Residential customers may be provided metal containers and service at the published commercial rates. Residential customers may place out for collection up to four bulky items per week for no additional 3 charge. Bulky items are residemial household type items that are consistem with residemial household use, such as furniture and selected appliances. Bulky items exclude non-household type items, fencing, remodeling, construction and demolition materials, and those appliances manufactured to comain polychlorinated biphenyls (PCB's) or chlorofluorocarbons (CFC's). Residemial construction materials (including but not limited to lumber, brick, fencing, and drywall) will be collected at the rate of $35.00 per service charge plus $5.00 per cubic yard or part of a cubic yard collected. Materials must not exceed eight (8') feet in length. Customers should comact Solid Waste Customer Service during normal business hours (at 940-349-8210) to request the collection of residential construction materials. Appliances manufactured to contain PCB's or CFC's, for which the customer provides no certified removal documemation of the PCB's or CFC's, will be charged $50.00 for the collection and disposal of each appliance and/or the associated materials. There is no charge for the collection of appliances which were manufactured to comain either PCB's or CFC's, if the customer provides a certificate of documentation from an approved business qualified to remove these products indicating that the PCB's or CFC's have been properly removed for disposal. If the Solid Waste Departmem is not provided a certificate of removal, the $50.00 charge per item will be assessed if the customer requests services through the Solid Waste Department. Residems may deliver household bulky items (not appliances manufactured to comain CFCs or PCBs) to the landfill for disposal at no charge, if they are not in paymem arrears with their utility services accoum and provide proof of DeNon residency. Other residemial services may be provided at fees established by the departmem, and approved by the Director. The fees established will recoup the special and administrative services provided. When initiating new service, a residemial Solid Waste service deposit may be charged. SCHEDULE SWRR RESIDENTIAl, CI JRBSIDE RECYCIJNG AND PROCESSING SERVICES (Effective 10/01/03) APPIJCATION Applicable for residemial family-unit recycling materials collection and processing services. A family unit includes each unit of a duplex or triplex, each living unit of a residemial lot, and any unit or living space in which a person or single family resides. MONTHLY RATE $2.07 per thirty (30) days. [The "pass through" amoum, forwarded monthly to the Curbside Recycling Contractor is $1.47 per residemial family unit. The City of DeNon Recycling Support Fee cost is $0.60 per thirty (30) days and funds container purchases, contract management, administrative costs, franchise fees, and other similar items.] Should any other fees be established by an authorized govemmemal emity, those fees will be added to the monthly rate to recover those costs. M1NIMI JM BII J lNG $2.07 per thirty (30) days. If any other fees are established by an authorized govemmemal emity, the minimum billing would adjust to include those costs. EXCEPTION TO IMPOSITION OF RATE The residemial curbside recycling and processing services rate will not be charged for an unoccupied residemial family unit that applies for and is grained the Minimum Billing/Base Rate Service as described in Schedule SWR. This exception shall be effective so long as the Minimum Billing/Base Rate Service rate is applicable to the unoccupied residemial family unit. SCHEDULE SWRD RESIDENTIAl, FINANCIAl, NEED SERVICE DISCOI JNT (Effective 10/01/03) APPLICATION Applicable for residential family-unit solid waste collection and for recycling collection and processing services. A family unit includes each unit of a duplex or triplex, each living unit of a residential lot, and any unit or living space in which a person or single family resides. QUALIFICATION Residents who wish to apply for the Residential Financial Need Service Discount shall qualify for the discount by meeting the established guidelines for the existing Plus One Program. DISCOI JNT TERM The discount is effective for a period of no longer than twelve (12) months. The discount requires re-application annually. MONTHLY DISCOUNT RATE Reduction of Residential Solid Waste Service charges by $3.50 per thirty (30) days. SCHEDULE SWC COMMERCIAl, AND 1NSTIT[ JTIONAI, SOlJD WASTE COIJ,ECTION SERVICES (Effective 10/01/03) APPIJCATION Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of DeNon. New commercial business developmem and redevelopmem requires that commercial solid waste service requiremems be reevaluated and services be provided under currem service requiremems. Business developmem includes, but is not limited to any of the following: new business construction, existing business expansions or remodeling, and existing business site revisions. With these occurrences, the Planning Departmem's General Guidelines for Commercial Solid Waste Services documem and requiremems will apply. MONTHI,Y R ATE PERMANENT FRONT LOAD CONTAINER SERVICE (Long Term Scheduled Service) In addition to the comainer service listed in this subsection, these rates also include the demand response collection of up to four (4) bulky items per month, per customer accoum, and demand response yard waste collection services. 1. 8 CIJBIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week 30 Days 1 8 $103.47 2 16 $206.72 3 24 $312.69 2. 6 CIJBIC YARD CONTAINER Front Load Pickups Cubic Yards Rate Per Per Week Per Week 30 Days 1 6 $84.66 2 12 $169.50 3 18 $255.52 3. 4 CUBIC YARD CONTAINER From Load Side Load Pickups Cubic Yards Rate Per Rate Per Per Week Per Week 30 Days 30 Days 1 4 $65.29 $75.26 2 8 $130.58 $150.43 3 12 $196.22 $226.32 4. 2 & 3 CUBIC YARD CONTAINER From Load Side Load Pickups Cubic Yards Rate Per Rate Per Per Week Per Week Z0_Dmys Z0_Dmys 1 3 $53.34 $61.51 2 6 $107.02 $123.46 3 9 $161.50 $185.53 The Solid Waste Department will establish rates to recover the cost of service for collection services at frequencies greater than three times per week. New two yard and side load comainer services are no longer available. Customers curremly receiving two yard or side load comainer services that discominue these services may not reinstate them in the future. 5. CONTAINER EXTRA SERVICE (For a comainer reload and extra empty) Container Size 2 & 3 CY container 4 CY container 6 CY container 8 CY container Collection Service Fee $29.35 per pickup $34.80 per pickup $45.65 per pickup $56.50 per pickup These extra service fees apply if the truck, while on route, remains on-site to provide the additional service. The driver waits while the customer reloads the container. On-site waiting time in excess of fifteen (15) minutes will be charged to the customer at the rate of $85.00 per hour. Waiting time will be billed in fifteen- minute incremems. If the driver is called in from off-site to provide same day extra service, there is a $50.00 same day service charge. CART SERVICE Commercial cart service is not available city-wide. In those areas where cart collection is available, small quantity waste generators may contract for once a week cart service. Bulky item collection and yard waste collection services are not provided with commercial cart service. One (1) pickup per week service: Cart Canacitv 1 Cart 2Cans 90 gallon (nominal) $15.00 $28.00 60 gallon (nominal) $15.00 $25.00 Extra empties performed while on-site will be provided at the one-cart rates listed above. Customers on commercial cart service where fully automated collection service cannot be provided will be charged an additional $2.00 per month per cart for providing semi- automated (manual) collection service. HAND COLLECTED COMMERCIAL SERVlCE The rate for hand collected commercial accounts will be the rate charged for a three (3) cubic yard container serviced one time per week; or a rate established to recover the cost of service, whichever is greater. Bulky Item and Yard Waste collection services are not provided with hand collected commercial service. TEMPORARY FRONT LOAD CONTAINER SERVICE Container Size 4 CY container 8 CY container Monthly Container Rental $32.90 $54.10 Collection Service Fee $62.35 perpickup $84.55 perpickup Temporary service accounts incur container delivery charges to initially place the containers. The use of a temporary container requires minimum service and/or billing a minimum of once a month. ROI,I,-OFF OPEN TOP SERVICE Container Size 20 CY container 30 CY container Mon~ly Container Rental $81.70 $94.05 Collection Service Fee $238.10 per pickup $291.85 per pickup Customers that request the driver wait while they reload the container, in order for the City to provide an additional empty(s), will be charged the collection service fee and on- site waiting time in 15 minutes increments at the rate of $85.00 per hour. The use of a temporary roll-off container requires minimum service and/or billing a minimum of once a month. The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. Construction and demolition material (C & D) collections will be provided using 20 cubic yard containers. For disposal weights equal or greater than 700 pounds per cubic yard, an additional disposal charge of $15.00 per ton for all container net weight will be charged. For disposal weights equal or greater than 1,000 pounds per cubic yard, $15.00 per ton for all container net weight will be charged plus an overweight penalty of $300.00 per container load will be charged. ROI,I,-OFF COMPACTOR/CONTAINER SERVICE Container Size Collection Service Fee 20 CY compactor $299.50 30 CY compactor $340.05 42 CY compactor $389.60 Monthly Container Rental $261.45 per pickup $295.55 per pickup $337.65 per pickup The Solid Waste Department will establish rates to recover the cost of service for unlisted container sizes. For disposal weights equal or greater than 700 pounds per cubic yard, an additional disposal charge of $15.00 per ton for all container net weight will be charged. For disposal weights equal or greater than 1,000 pounds per cubic yard, $15.00 per ton for all container net weight will be charged plus an overweight penalty of $300.00 per container load will be charged. 6 CI JBIC YARD COMPACTOR SERVICE Pickups Rate Per Per Week 30 Days 1 $246.03 2 $493.16 3 $759.66 SHARED COMMERCIAl, CONTAINERS Shared commercial container customers must have at least one (1) cubic yard of service per customer. Rates associated with this service will be calculated based cost of service for each occurrence. Rates will recover the cost of service. MINIM[ JM COMMERCIAl, CHARGE A minimum charge of $15.00 per thirty (30) days will be charged to all commercial solid waste customers. Z0 SPECIAl, WASTE Denton's acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the waste requested for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the Director of Solid Waste, for the collection and disposal of special waste will be established based on the type of special waste, and the requirements for collection and disposal of the waste. OTHER CHARGES A delivery fee of $75.00 per comainer will be charged to all customers for roll-off comainers. A delivery fee of $50.00 per comainer will be charged to all customers for from load or side load comainers. A relocation fee of $50.00 will be charged for each roll-off comainer that is relocated at the customer's site, unless relocation occurs following a service. A $50.00 fee will be charged for each request for same day collection by on-demand roll-off customers. The Solid Waste Department Customer Service Personnel must receive on- demand service requests prior to 11:00 A.M. on the day service is requested in order to provide same day collection service. An access fee will be charged for comainers that presem accessibility problems, and/or additional services or time. Comainers that are inaccessible at the time of collection will be charged an inaccessible fee of $75.00 for roll-off comainers and $50.00 for all other comainers. On-site waiting time will be charged in fifteen (15) minute incremems at the rate of $85.00 per hour. A $125.00 fee will be charged to install or remove comainer locks. Loaded side load comainers shall not exceed a total weight of one ton. Loaded from load containers shall not exceed a total weight of two tons. Roll-off container materials shall weigh less than 700 pounds per cubic yard. Additional customer charges are incurred for each excess weight comainer. Tickets and/or fines for overweight loads, and the City's administrative costs, are the responsibility of the customer. A minimum of once per week pickup service is required for comainers in which putrescible (food) waste is placed. Up to four (4) bulky items per customer, per momh, will be picked up from each permanent commercial account customer at no additional charge. For this service, commercial customers must call Solid Waste Customer Service personnel (940-349- 8210) by 5:00 p.m. on the Wednesday before the first Thursday pickup. Bulky items shall not be placed near or adjacem to comainers prior to 48 hours before the scheduled first Thursday pickup. A service fee of $10.00 per bulky item will be charged for each bulky item in excess of four (4) bulky items collected. Special bulky item collection services and charges will be implememed for customers desiring permanem services beyond the level provided. Demand response bulky item collection services will be charged a $50.00 service fee, plus a fee of $10.00 per bulky item collected. Eight bulky items per month may be delivered by Demon's solid waste customers to the landfill for disposal at no charge, except for items manufactured to comain PCB's or CFC's. Appliances manufactured to contain PCB's or CFC's, for which the customer provides no certified removal documemation of the PCB's or CFC's, will be charged $50.00 for the collection and disposal of each appliance and/or the associated materials. There is no charge for the collection of appliances which were manufactured to comain either PCB's or CFC's, if the customer provides a certificate of documemation from an approved business qualified to remove these products indicating that the PCB's or CFC's have been properly removed for disposal. If the Solid Waste Department is not provided a certificate of removal, the $50.00 charge per item will be assessed if the customer requests services through the Solid Waste Department. Overflowing and excess waste collections will be charged a $50.00 service fee, plus a $35.00 charge per cubic yard for overflowing and excess waste outside the container, which is collected, comainerized, and serviced by solid waste personnel. Other commercial services may be provided at fees established by the Solid Waste Departmem, and approved by the Director of Solid Waste. The fees established will recoup the costs and administration of the special services provided. For permanem comainers, a commercial solid waste service deposit, if required, will be charged based on two months of the projected billing amoum. Following a service review, if the deposit is determined to be under-projected, additional deposit funds are required to cominue receiving service. For temporary comainers, a commercial solid waste service deposit is required. It will be charged at 50% of the estimated billing amount, or two months of estimated service, whichever is less. Following a service review, if the deposit is determined to be under- projected, additional deposit funds are required to cominue receiving service. 12 SCHEDULE SWCR COMMERCIAl, RECYCIJNG SERVICES (Effective 10/01/03) APPIJCATION Owners and managers of various multi-family living units, businesses, commercial and institutional businesses, and properties receiving commercial solid waste collection services may potentially participate in commercial recycling. QUALIFICATION Commercial recycling is not available for all multi-family living units and commercial and institutional businesses operating within the City of Denton. Solid Waste Department management will evaluate the commercial business and projected recyclable materials of interested and solicited businesses to determine if commercial recycling services should be provided. MONTHI,Y R ATE Rates will recover the cost of service. Rates will vary by container size and the frequency of collection service provided. Based on the recyclable volumes projected, and the City's recommendation, collection services will be provided using either a fixed or demand response collection schedule. M1NIMI JM BII J lNG The minimum billing required is the amount of service provided and applicable for billing each month. ACCEPTABLE RECYCLABLE MATERIALS · All classes of Paper including but not limited to; newspaper, office paper, junk mail, mail, magazines, telephone books, catalogs. · Corrugated cardboard and chipboard · Aluminum, tin, and steel food and beverage cans · Glass bottles, jars, and jugs · Plastic bottles, jars and jugs NON-ACCEPTABI,E MATERIAI,S The City will provide information listing non-acceptable materials. The multi-family owner or manager, or business owner or manager is the responsible person required to inform all personnel having access to and using the recycling container and all business recycling personnel of the non- acceptable materials. RIGHT OF I,OAD REFI JSAI, The City reserves the right to refuse loads as recycling loads due to the amount of contamination in the load. If a load is refused by the City, and determined not to contain sufficient recyclable materials, it will be handled as municipal solid waste (MSW) and incur the associated rates. OTHER CHARGES All other solid waste services performed will be charged at listed solid waste rates. 14 SCHEDULE SWP SOl,IDS WASTE COIJ,ECTION AND TRANSPORTATION SERVICES PERMIT (Effective 10/01/03) APPIJCATION Any person, emity, or business engaged in the collection and transport of waste or recyclables must possess a currem permit issued from the City prior to providing collection and transportation services in the city limits of Demon. A permit is required for all private emities operating within the city limits of Denton to collect and transport the following materials: · Construction and Demolition (C & D) · Commercial Recycling · Medical Waste · Hazardous Waste · Special Waste · Residemial Recycling The person applying for a permit will make application through the City's Solid Waste Departmem on forms provided for that purpose, and pay the required fees. Permits are non-transferrable and non-exclusive. The permit applicant must execute a service agreement prior to the issuance of a permit. GRANTING OF PERMIT As a condition of granting of a permit, permittees agree to complete a service agreemem, carry specific types and amoums of insurance, submit reports, and pay the necessary fees. Following the graining of a permit, permit decals will be issued and placed on all vehicles operating within the City limits of Demon. Vehicles operating in Demon are required to display a currem permit decal. The Director of Solid Waste (or his designee), after reviewing the permit application and conducting the necessary review, may issue the permit, issue the permit with conditions, or deny the issuance of the permit. EXCI l JSIONS Individuals hauling personal materials from their residence, and who are not conducting commercial hauling as part ora business emerprise, or as a sole business emerprise, are exempt from this requirement. FEES Application fees are payable at the time of application submittal and shall be submitted to the Director of Solid Waste, 1527 S. Mayhill Road, Demon, Texas. Application fees are non-refundable. Permits are issued annually and are effective from October 1st or the date of issuance, whichever is later, through September 30~h of the following year, the City of Demon's fiscal year. Fees paid are 15 applicable only for the fiscal year for which they are paid. A. Construction and Demolition (C & D) Collection and Transportation Permit 1. Application Fee: $100 annually 2. Vehicle Fee: $50 per vehicle annually Commercial Recycling Collection and Transportation Permit 1. Application Fee: $1,000 annually 2. Vehicle Fee: $1,000 per vehicle annually Medical Waste Collection and Transportation Permit 3. Application Fee: $2,000 annually 4. Vehicle Fee: $1,000 per vehicle annually Hazardous Waste Collection and Transportation Permit 1. Application Fee: $2,000 annually 2. Vehicle Fee: $1,000 per vehicle annually Special Waste Collection and Transportation Permit 1. Application Fee: $2,000 annually 2. Vehicle Fee: $1,000 per vehicle annually Private Municipal Solid Waste (MSW) Collection and Transportation Permit Available only to companies that provide services in newly annexed areas for specific periods of time. 1. Application Fee: $1,000 annually 2. Vehicle Fee: $1,000 per vehicle annually 3. 4% of Gross Revenue from services provided within the City limits Residential Recycling Collection and Transportation Permit 1. Application Fee: $1,000 annually 2. Vehicle Fee: $500 per vehicle annually 3. 4% of Gross Revenue from services provided within the City limits TERM AND RENEWAl, All permits for commercial solid waste hauling services shall be valid for not more than one (1) year from the date of issuance. Permittees may make a written application for renewal sixty (60) days prior to the permit expiration. The renewal application will update the information provided in the initial application. Applications for renewal shall be processed in the same manner as an initial application. REVOCATION OR NON-RENEWAl, OF PERMITS If the Director of Solid Waste (or his designee) finds any requirement of the permit to have not been met, he may revoke or not renew the permit and require the entity to cease operations within the City limits of Denton. SCHEDULE SWL SANITARY I,ANDFII,I, SERVICES (Effective 10/01/03) MI JNICIPAI, SOLID WASTE (MSW) DISPOSAI, R ATE: $35.00 per ton APPLICATION Customers bringing mixed loads of solid waste, yard waste, and bulky items to the landfill will be charged this rate. The current State of Texas landfill surcharge of $1.25 per ton, or any such fee as a governmental entity may assess, will be included in the MSW disposal rate. Such additional assessment will be added to the disposal rate and assessed on all waste delivered to the landfill. VOLUME RATES When the scales are inoperative, or accurate weights cannot be determined, volume rates will be charged based on the gross volume capacity of the vehicle and/or trailer. Uncompacted Refuse Compacted Refuse $6.00 per cubic yard $8.50 per cubic yard MINIMI JM I,ANDFII,I, CHARGE There shall be a $7.50 minimum charge for all materials delivered to the landfill. SOLID WASTE DISPOSAI, SERVICES The City Manager or his designee may enter into agreements or contracts with solid waste haulers for the disposal of waste, at various negotiated rates. All such contracts may contain conditions of operation, disposal, and delivery as determined necessary for the efficient operation of the landfill and the method of billing and collection for such services. The current State of Texas landfill surcharge of $1.25 per ton, or any such fee as a governmental entity may assess, will be included in the MSW disposal rate. Such additional assessment will be added to the disposal rate and assessed on all waste delivered to the landfill. 3_7 TIRES Charges for tires not shredded or quartered: 1. Automobile and Pickup tires 2. Commercial and Industrial truck tires 3. Off-road tires with larger than a 24.5" wheel diameter Charge Per Whole Tire $5.00 $7.00 $15.00 I,ANDSCAPE WASTE 1. Whole trees and stumps. 2. Clean bagged or un-bagged grass, leaves or brush in less than twelve (12') foot lengths 3. Clean bagged or un-bagged grass, leaves, or brush greater than twelve (12') lengths $48.75 per ton $16.25 per ton $27.00 per ton All comaminated landscape waste will be charged at the landfill disposal rate. $35.00 per ton Eight bulky items per customer, per month, may be delivered by Demon's solid waste customers to the landfill for disposal for no additional charge, except for appliances manufactured to contain PCB's or CFC's. For appliances, which were manufactured to comain PCB's or CFC's, and for which no certified removal documemation is provided, there will be a $50.00 charge per appliance. INERT MATERIALS $10.00 per ton A SPHAI ,T/CONCR ETE/BRlCK/BI DCK Inert materials include clean and uncomaminated loads of brick, block, millings, concrete, asphalt, and road-base, which may be recycled. Periodically these materials may be sold to Denton's citizens. SPECIAl, WASTE Denton's acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the waste requested for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the Director of Solid Waste, for the collection and disposal of special waste will be established based on the type of special waste, and the requirements for collection and disposal of the waste. 1JNSECI JRED 1 DADS In compliance with State regulations, solid waste loads that are not adequately secured with a tarpaulin or other tie-downs that prevem the material from spilling will be charged an Unsecured Load Charge of $20.00 for each load. SEC_IIDSS_Z That the Director of Solid Waste of the City of Demon is authorized to deny the use of the City of Demon landfill to customers for providing false information regarding the origin or composition of the solid waste delivered for disposal. SECTION 3. That it is in the public interest that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. SECTION 4. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. ~. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competem jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Demon, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6. That this ordinance shall become effective, charged, and applied to all solid waste services rendered on and after October 1, 2003; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary. PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S :\Our Documents\Ordinances\03\Solid Waste Rate Ordinance - 2003.doc 19 1 PUB Minutes for Consent Agenda Items # 3F, 3G, 3H, 3I and 3J 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 DRAFT CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING MINUTES August 18, 2003 9:00 A.M. After determining that a quorum of the Public Utilities Board of the City of DeNon, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 18, 2003 at 9:00 a.m. in the Service Cemer Training Room, City of DeNon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: EXCUSED: Bill Cheek, Charldean Newell, Dick Norton, Rob Rayner, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities George Hopkins 6) Consider approval of the Electric, Water, Wastewater, Solid Waste, and Miscellaneous Rate Ordinances for FY 2004. Smith asked for an explanation of a semence in the electric summary, which stated that DME will now pay franchise fees and ROI on gross revenues from billings; therefore, those fees that did not previously have a franchise fee or ROI componem will be increased to include these costs. Sharon Mays, Director of Electric Utilities, explained that up until the past year, DME did not claim the fees as rate revenue. This greater inclusiveness would also apply to any other miscellaneous charges that affect all of the utilities, such as turn-on and turn-offs. Smith asked how much of an increase would be based on this year's changes. Mays explained that it would amount to approximately $64,000. Board Member Charldean Newell asked if the Board had any changes to the electric rate recommendations. There were none. Newell then asked for the Board's comments regarding water rate recommendations. White expressed concern regarding an increase in franchise fees without an amendment to the City Charter. He stated that the Charter states that up to 6% return on net invested capital shall be transferred to the General Fund (Sec. 12.03 (1) page 31). White commented that the method Page 1 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is using does not abide by the Charter. White explained that the City should adopt a charter amendment to address franchise fees and ROI transfers to the General Fund. Newell asked if the Board had any changes to the water rate recommendations. There were none. Newell then opened the discussion to the wastewater rate recommendations. White explained that an increase in the minimum load charge for grass, brush and weeds from $5.00 to $7.50 is too high for individuals living on a fixed income, and stated that, consequently, the City could experience an increase in roadside debris. Cheek wanted to know how many loads of grass and brush does the City receive a year. Jim Coulter, Director of Water Utilities, estimated that the City receives approximately 2,500 to 3,000 small loads per year. He explained that a pickup load of brush might cost less than $1.00 based on the weight of the brush. Coulter explained that the administrative handling and processing costs and grinding costs were not being recorded. Smith wanted to know if these revenues had been paying franchise fees and Return on Investments. Martin said they had not. Smith also asked for clarification regarding establishment of a permit fee for aerobic septic systems. Coulter informed the Board that the City currently charges $125, which includes permit review and inspection of the system, but the fee is approximately 13 years old. White asked if alterations to the aerobic treatment system would cost the same amount. Martin responded that fees for alterations would cost $50. The discussion then turned to the solid waste rate recommendations. Newell asked why DMU needed to establish a rate for customers requesting two 60-gallon waste containers. Martin explained that the City does not currently have a rate for two containers. White commented that the residential rate for manual collection service with pick ups twice per week will increase from $17.50 to $18.20, and asked how many bulky items would the City allow with those collections. Vance Kemler, Director of Solid Waste, explained that, if the bulky items are set out with the regular trash, four items per week would be included in the $18.20 per month. White then asked, if two three-yard dumpsters were picked up three times a week, how many bulky items could be included in that pickup? Kemler explained that for apartments, bulky items are collected on the first Thursday of the month, or the bulky item can be taken to the landfill up to eight times per month at no cost. White stated his concern that multi-family dwellings are becoming dumping grounds for bulky items and would run the risk of being charged the extra $50, plus $10 for each bulky item in excess of the four allowed per month. Scott Lebsack, Assistant Director of Solid Waste, informed the Board that staff would reword page 11, the last paragraph in the Solid Waste Rate Ordinance, making it clear that the $50 charge would apply only if DMU is making an extra trip to pick up a bulky item, and that, if Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 the City is already on -site, the charge would not apply. However, a service fee of $10 per bulky item will be charged for each bulky item in excess of four per month. White expressed several concerns regarding policies associated with utility billing. · Bills are due within 14 days after the date of issue. (Some bills are received in the mail four days before the due date). · Equity concerns regarding residents' bills that may be only $50, but the customer is expected to pay a $10 late fee, which is 25% of their entire bill. · 55-day billing cycles. Martin informed the Board that staff would consider straight 30 days billing instead of prorating. Mays explained that fixed charges (demand charges) can be billed on a 30-day cycle, but the meters have to be grouped geographically and read in cycles. Mays also informed the Board that, in general, bills are calculated on a 28-day or 31-day cycle, and explained that a 55-day cycle is not normal. Smith asked if the discount rate for State universities and colleges was based on legislative mandates. Mays responded by explaining that the discount is a result of State legislation. White referred to the Miscellaneous Rate Ordinance, page 17, section C. He stated that the paragraph leads one to believe that a motion to accept outside solid waste passed, when the motion to accept outside solid waste was defeated at the last PUB meeting by a vote of 3 to 3. Rayner wanted to know if, since that vote was taken, the City Council had the opportunity to review the PUB minutes and had they made a decision. Martin responded that no formal decision was made at the Budget Workshop on August 7, 2003. He informed the Board that Mayor Pro Tem Mark Burroughs did make a statement that any revenue from outside solid waste should be set aside to provide for future landfill and solid waste services for the City of Denton. Martin explained that the City Council in general was supportive of accepting outside solid waste, although there has been no formal decision made. He assured the Board that staff had provided all of the minutes and comments to the City Council prior to the workshop. White raised the landfill air quality issue, which he believes affects quality of life along Mayhill Road and commented that the subject had not been discussed at previous Board meetings. Newell affirmed that the Board would be interested in periodic progress reports regarding the amount of outside solid waste received and the impact on the landfill. White also raised concern that an amendment to the City Charter in 1999 failed to change, and thereby reaffirmed that the City should not enter into a new utility without the vote of the people. Smith asked what section of the City Charter contained the statement. White said he would fax Smith a copy (Sec. 12.04) Newell asked for a vote on each of the rate ordinances: Page 3 of 4 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 Electric Rate Ordinance Water Rate Ordinance Wastewater Rate Ordinance Solid Waste Rate Ordinance Miscellaneous Rate Ordinance Cheek moved to approve, with a second from White. The motion was approved unanimously. Norton moved to approve, with a second from Smith. The motion was approved unanimously. Smith moved to approve, with a second from Cheek. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Smith moved to approve, with a second from Norton. The motion was approved unanimously. Page 4 of 4 ORDINANCE NO. 2003- AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY CUSTOMERS AND TAXPAYERS CONTAINED IN ORDINANCE NO. 2002-271; AMENDING THE ELECTRIC METER INSTALLATION CHARGE; AMENDING THE ELECTRIC AND WATER METER CONNECTION CHARGE; AMENDING THE DELINQUENT SERVICE CHARGE; AMENDING THE UNAUTHORIZED USAGE PENALTY; AMENDING THE ADDITIONAL METER READING CHARGE; AMENDING THE METER TESTING CHARGE; AMENDING THE METER TAMPERING AND/OR DAMAGE CHARGE; AMENDING THE METER INACCESSIBILITY CHARGE; AMENDING THE RETURNED PAYMENT CHARGE; AMENDING THE CREDIT REPORT CHARGE; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Demon customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Electric Meter Installation Charge Electric and Water Meter Connection Charge Delinquem Service Charge Unauthorized Usage Penalty 3 3 4 4 Bo METER CHARGES Meter Reading Meter Testing 5 5 EXHIBIT V Meter Tampering and/or Damage Charge Meter Inaccessibility Charge 5 6 Co MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge Service Deposits Late Payment Charge Due on Delinquent Balances Interest Charge on Past Due Account Balance Credit Report Charge Interest Earned on Contract Retainage 7 7 8 8 9 9 Page 2 ACCOUNT CONNECTION AND RECONNECTION CHARGES (Effective 10/01/03) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. ELECTRIC METER INSTALLATION CHARGE APPLICATION Applicable when a customer requests electric service on a first time basis where no permanent service previously existed and where a new account number is established. CHARGE First Service Requested First Service Requested, after business hours $22.00 $35.00 ELECTRIC AND WATER METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service at an address which has existing or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE Electric Service Requested Water Service Requested $11.00 $11.00 Electric Service Requested, after Business Hours $25.00 Water Service Requested, after Business Hours $25.00 Page 3 DELINQUENT SERVICE CHARGE APPLICATION Applicable when a customer's account is processed for disconnection due to nonpayment. CHARGE Delinquent Service Charge Reconnect Charge, after Business Hours $22.00 $55.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails occupancy in a new service location. CHARGE Unauthorized Usage Penalty to request connection of services within 24 hours of $30.00 Page 4 METER CHARGES (Effective 10/01/03) METER READING APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $25.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test ACCURACY STANDARDS $27.00/KWH Electric Meter $38.00/KW/KWH Electric Meter A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $200.00 minimum per connection per system Page 5 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $38.00 Page 6 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 10/01/03) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer's or taxpayer's check, or money order, or bank draft for paymem of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker's bank and returned to the City of Demon unpaid. CHARGE Per Check $27.00 SERVICE DEPOSITS APPLICATION Applicable when a residemial customer requests utility service in the City of DeNon service area and does not have twelve (12) momhs of good credit standing with the City of DeNon or another utility system for the type of service requested, or does not have a co-signer with twelve (12) months of good credit standing with the City of Denton, or does not request and demonstrate a passing credit rating through a credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) momhs of good credit standing with the City of DeNon, or a commercial letter of good credit from another utility system. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of DeNon as security for paymem. CHARGE Residemial Customer $150.00 or an amoum equal to 1/6 of the last 12 momhs of billing at the service location. If utility service is disconnected for non- paymem, then the customer will be required to pay a deposit sum up to but not greater than 1/6 of the last 12 momhs of billing at the service location. Commercial Customer $300.00 or an amoum equal to 1/6 of the last 12 momhs of billing at the service location, whichever is greater. If utility service is disconnected for non-paymem, then the customer will be required to pay a deposit Page 7 sum equal to 1/6 of the last 12 months of billing at the service location. Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer's account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer's account. LATE PAYMENT CHARGE DUE ON DELINQUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $10.00 late payment charge INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month's billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month's billing statement. CHARGE 1% / month on all past due charges and account balances unpaid at the time of the current month's billing calculation. * * **Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. Page 8 CREDIT REPORT CHARGE APPLICATION This fee is applicable if the customer (a) cannot provide a satisfactory credit rating through previous service history with Demon Municipal Utilities or another utility service; or (b) cannot provide the city with a qualified co-signer, and (c) provides written authorization for the city to obtain a credit rating from a credit source available to the city. CHARGE Charge per credit report $13.00 INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX. REV. CIV. STAT. ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of imerest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. Page 9 SECTION 2. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Demon, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. That this ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 2003; and a copy of said fees and charges shall be maimained on file in the office of the City Secretary. PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S:\Our Documents\Ordinances\03\Miscellaneous Rate Charges - Ordinance - 2003.doc Page 10 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/ACM: September 2, 2003 Parks and Recreation Howard Martin ~ SUBJECT Consider approval of an ordinance amending Section 22-38 of Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of Demon, Texas, relating to facility and program fees by adopting a Schedule of Fees; repealing all fees in conflict with such schedule; repealing Ordinance No. 2002-275 and all ordinances in conflict with the new Schedule of Fees; and providing an effective date. BACKGROUND This ordinance makes changes to the schedule of fees for parks and recreation services that are included in the proposed FY 2003-04 budget. Specifically, fees are adjusted as follows: · All swimming pool fees for Civic Cemer Pool are removed from the General Fund and will now be established in the Recreation Fund based on the cost of providing the service, as allowed by ordinance. · All athletic field fees and adult team registration fees are removed from the General Fund and will now be established in the Recreation Fund and will be based on the cost of providing the service, as allowed by ordinance. This change in fee structure will reduce the General Fund subsidy of all athletic programs and will recover 75% of the Athletic Coordinator salary. · A new Youth Sports Impact Fee will generate approximately $56,000 in revenue for General Fund. This equates to $10.00 per participant/per season. This fee will recover 10% of the cost to operate and maintain youth athletic fields. OPTIONS Council options include the approval or denial of the ordinance as submitted. Council may also opt to modify the Schedule of Fees to include additional or modified requiremems. RECOMMENDATION Staff recommends approval of this ordinance and agreemem. ESTIMATED SCHEDULE OF PROJECT If approved, the changes to fees will be effective October 1, 2003. PRIOR ACTION/REVIEW These increases have been previously reviewed as part of the budget review process. FISCAL INFORMATION The increases will generate $66,890 in additional revenue to offset General Fund operating expenses. EXHIBITS 1. Ordinance Respectfully submitted: Janet Simpson Interim Director of Parks and Recreation F:\admin\City Council\2003\Fees Approval.doc S:Our Docunlelt ~Ordhlmlce~0 3 Parks Facility and Program Fees doc ORDINANCE NO. AN ORDINANCE AMENDING SECTION 22-38 OF CHAPTER 22 (PARKS AND RECREATION) OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, RELATING TO FACILITY AND PROGRAM FEES BY ADOPTING A SCHEDULE OF FEES; REPEALING ALL FEES IN CONFLICT WITH SUCH SCHEDULE; REPEALING ORDINANCE NO. 2002-275 AND ALL ORDINANCES IN CONFLICT WITH THE NEW SCHEDULE OF FEES; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY DENTON HEREBY ORDAINS: SECTION 1. Sec. 22-28 of the Code of Ordinances of the City of Denton, Texas is amended to read as follows: Sec. 22-28. Facility and program fees. The department of parks and recreation shall charge and collect the fees for the use of buildings and facilities and for recreational programs, services, and merchandise offered by the department in the amounts established in a "Schedule of Fees" adopted from time to time by ordinance of the city council. The director of the department may set, charge and collect fees for classes, trips, equipment, merchandise, police or supervisory services, and other programs, services, events and merchandise provided or offered by the department where no fee is established in the "Schedule of Fees". The fee or charge shall be based on the costs of providing the event, service, equipment or goods. SECTION 2. The "Schedule of Fees" for FY 2003-2004 and until such time as such schedule is amended is set forth in Exhibit "A", which is attached hereto and made a part hereof for all purposes. SECTION 3. Ordinance No. 2002-275 and all ordinances, parts of ordinances, fee schedules or fees in force when the provisions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed. Ordinance No. 2002-275 excepted, all ordinances, parts of ordinances, fee schedules or fees not inconsistent or in conflict with the terms or provisions contained in this ordinance shall remain in full force and effect. SECTION 4. The provisions of this ordinance are separable, and the invalidity of any phrase or part of this ordinance shall not affect the validity or effectiveness of the remainder of this ordinance. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. EXHIBIT 1 S:Our Doctunelt ~Ordhlmlce~0 3 Parks Facility and Program Fees doc PASSED AND APPROVED this the __day of .,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 Facility Rentals TYPE Exhibit A PARKS AND RECREATION FEES General Fund Only Effective October 1, 2003 FEE (resident/non-resident) Full gym .................................................... 60.00/70.00 (per hour) Half gym ................................................... 30.00/35.00 (per hour) Recreation center meeting rooms ....................... 20.00/25.00 (per hour) Civic Center: · Per hour ................................................ 50.00 · Per day .................................................. 500.00 Senior Center multipurpose room ....................... 17.50/22.50 per quadrant ....................... 70.00/90.00 entire mom Tennis: · Group court rental (w/o lights) ...................... 3.00/4.50 (per hour) · Group court rental (w/lights) ......................... 6.00/9.00 (per hour) Admissions Tennis: · Individual court use fee ............................... 1.75 (1 ½ hours) during posted hours only · Individual season pass ................................. 35.00/40.00 · Family season pass .................................... 75.00/80.00 Youth Sports Youth Sports Impact Fee ................................. 10.00 per participant/per season Park Vendor Sales One-day booth permit: · Non-profit vendor ..................................... 15.00 · For-profit ............................................... 25.00 EXHIBIT A TYPE FEE (resident/non-residenO Park Shelter Reservations Four-hour reservation: · Small shelter (capacity: 25 persons) o Individual/non-profit ........................ 15.00 o Commercial ................................... 50.00/60.00 · Large shelter (capacity: 50 persons) o Individual/non-profit ........................ 50.00/60.00 o Commercial ................................... 100.00/120.00 Civic Center Garden Reservation · Individual (4 hours) ................................... 25.00/30.00 · Commercial (4 hours) ................................. 50.00/60.00 Civic Center Park Amphitheater · Unlighted (1 hour) .................................... 5.00/10.00 · Lighted (1 hour) ....................................... 10.00/20.00 Program Administration Fee ................ 4.50 (assessed for each program/class registration per individual, both resident and non-resident). Non-resident Program Fee ................... 5.00 (assessed for each program/class registration per individual, non-resident only). Page 2 Facility Rentals TYPE Exhibit A PARKS AND RECREATION FEES General Fund Only Effective October 1, 2003 FEE (resident/non-resident) Full gym .................................................... 60.00/70.00 (per hour) Half gym ................................................... 30.00/35.00 (per hour) Recreation center meeting rooms ....................... 20.00/25.00 (per hour) Civic Center: · Per hour ................................................ 50.00 · Per day .................................................. 500.00 Senior Center multipurpose room ....................... 17.50/22.50 per quadrant ....................... 70.00/90.00 entire mom Tennis: · Group court rental (w/o lights) ...................... 3.00/4.50 (per hour) · Group court rental (w/lights) ......................... 6.00/9.00 (per hour) Admissions Tennis: · Individual court use fee ............................... 1.75 (1 ½ hours) during posted hours only · Individual season pass ................................. 35.00/40.00 · Family season pass .................................... 75.00/80.00 Youth Sports Youth Sports Impact Fee ................................. 10.00 per participant/per season Park Vendor Sales One-day booth permit: · Non-profit vendor ..................................... 15.00 · For-profit ............................................... 25.00 EXHIBIT A TYPE FEE (resident/non-residenO Park Shelter Reservations Four-hour reservation: · Small shelter (capacity: 25 persons) o Individual/non-profit ........................ 15.00 o Commercial ................................... 50.00/60.00 · Large shelter (capacity: 50 persons) o Individual/non-profit ........................ 50.00/60.00 o Commercial ................................... 100.00/120.00 Civic Center Garden Reservation · Individual (4 hours) ................................... 25.00/30.00 · Commercial (4 hours) ................................. 50.00/60.00 Civic Center Park Amphitheater · Unlighted (1 hour) .................................... 5.00/10.00 · Lighted (1 hour) ....................................... 10.00/20.00 Program Administration Fee ................ 4.50 (assessed for each program/class registration per individual, both resident and non-resident). Non-resident Program Fee ................... 5.00 (assessed for each program/class registration per individual, non-resident only). Page 2 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Parks and Recreation Howard Martin ~ SUBJECT Consider approval of an ordinance of the City Council of the City of DeNon revising and establishing certain fees for the I.O.O.F. and Oakwood Cemeteries in the City of DeNon; and providing an effective date. BACKGROUND This ordinance makes changes to the fees charged at City of DeNon cemeteries that are included in the proposed FY 2003-04 budget. Specifically, fees are adjusted as follows: · The Concrete Work Permit that relates to setting monuments increased from $25 to $50. · The Imernmem Permit increased from $25 to $50. OPTIONS Council options include the approval or denial of the ordinance as submitted. opt to modify the fees to include additional or modified requiremems. Council may also RECOMMENDATION Staff recommends approval of this ordinance and agreemem. ESTIMATED SCHEDULE OF PROJECT If approved, the changes to fees will be effective October 1, 2003. PRIOR ACTION/REVIEW These increases have been previously reviewed as part of the budget review process. FISCAL INFORMATION The increases will generate $7,500 in additional revenue to offset General Fund operating expenses. EXHIBITS 1. Ordinance Respectfully submitted: Janet Simpson Interim Director of Parks and Recreation ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON REVISING AND ESTABLISHING CERTAIN FEES FOR THE I.O.O.F. AND OAKWOOD CEMETERIES IN THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Article III of Chapter 25 of the Code of Ordinances of the City of Denton authorizes the City Council to establish certain fees charged at City of Denton cemeteries; and WHEREAS, the City Council finds that the fees established by this ordinance are reasonable and in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The City Council hereby establishes the following fees to be charged at City of Denton I.O.O.F. and Oakwood cemeteries: Sale of Adult Lot .......................................................... $350 Sale of Infant Lot .......................................................... $75 Concrete Work Permit ..................................................... $50 Internment Permit .......................................................... $50 SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY EULINE BROCK, MAYOR EXHIBIT 1 AGENDA INFORMATION SHEET AGENDA DATE: September 2, 2003 DEPARTMENT: CM/DCM/ACM: Engineering Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an Ordinance of the City of DeNon, Texas providing for the paymem of administrative public works development review and inspection fees to the City for Engineering Review and inspection Services provided by the City for public improvemems constructed by developers related to private developmem; superceding ordinances in conflict with this ordinance; and providing for an effective date. BACKGROUND The primary purpose for the proposed ordinance revisions is to recover a portion of the cost incurred by the City reviewing construction plans for developer required infrastructure improvemems. The City curremly absorbs 100% of this cost, which is passed on to the citizens through utility rates and taxes. The developer does not pay for any of the engineering review costs. This proposed Developmem Review fee would cover a portion of the cost (approximately 15% in the first year) for engineering services to review and commem on the adequacy of the proposed infrastructure to meet the city standards outlined in the Criteria manuals. The proposed developmem fee will collect 1% of the bonded construction value of the proposed public infrastructure, in addition, the Overtime inspection fee will increase from the currem $50/hour to $60/hour. The Right-of-Way inspection fee will be increased from $35 to $50 per hours. This fee reflects the full cost of providing Right-of-Way inspection services. RECOMMENDATIONS Staff recommends adoption of the ordinance. PRIOR ACTION/REVIEW This item was presemed at the City Council Budget Workshop on August 7 ,2003 Agenda Information Sheet September 2, 2003 Page 2 FISCAL INFORMATION The City of Demon will recover an estimated additional $110,000 for the Developmem Review fee, an estimated additional $20,000 for the Right-of-Way inspection fee, and an estimated additional $1,000 for the Overtime inspection fee during the first year. EXHIBITS Ordinance Respectfully submitted: Charles Fiedler Director, Engineering S:\Our Documents\Ordinances\03~Development Review Fee Ordinance-Final.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE PAYMENT OF ADMINISTRATIVE PUBLIC WORKS DEVELOPMENT REVIEW AND INSPECTION FEES TO THE CITY FOR ENGINEERING REVIEW AND INSPECTION SERVICES PROVIDED BY THE CITY FOR PUBLIC IMPROVEMENTS CONSTRUCTED BY DEVELOPERS RELATED TO PRIVATE DEVELOPMENT; SUPERCEDING ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in some instances developers construct public improvements which are related to private development, including without limitation, when such public improvements are required by Subchapter 16 of Chapter 35 of the Code of Ordinances (the "Development Code") as condition of subdivision or development approval; and WHEREAS, the City incurs administrative expenses in providing an engineering review of the plans and inspecting such public improvements which should be properly born by the developer; and WHEREAS, when contractors or utilities perform work within City right-of-way the City incurs right-of-way inspection expenses which should be properly born by the contractor or utility; and WHEREAS, the City Council finds that it is in the public interest to require that the developer/applicant pay to the City an administrative development review and inspection fees as provided in this ordinance and that the contractor or utility pay to the City the right-of-way inspection fees as provided in this ordinance; and WHEREAS, the City Council finds that such fees bear a reasonable relationship to the actual administrative costs incurred by the City to conduct such development review and inspections; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and' recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. An inspection fee is hereby established in an amount equal to 3.5% of the cost to construct public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City's authorization to proceed with construction of the public improvements. The cost to construct the public improvements is the cost set forth in the public improvements agreement between the City and the developer. The inspection fee covers inspection services by the City for weekday, Monday through Friday fi.om 8:00 a.m. to 5:00 p.m.. Should the developer request inspections during any other time period including weekends, an additional over time fee (the "Overtime Fee") shall be paid to the City · based on the following hourly rate: $60 per hour as of the effective date of this ordinance. A minimum Overtime Fee shall be deposited with the City based on four hours at least 24 hours before the overtime inspection is to start, except that the weekend overtime deposit must be received on or before 12:00 p.m. on the Friday immediately before the weekend overtime period. If there are more than four overtime inspection hours, developer will be billed for such additional hours which shall be paid no later than 15 days after the date of the billing and prior to incurring additional overtime inspections. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees are paid in full. SECTION 3. A development review fee is hereby established in the following mount: 1% of the cost to construct public improvements by developers as of the effective date of this ordinance. The cost to construct the public improvements is the cost set forth in the public improvements agreement between the City and the developer. The development review fee shall be paid by the developer prior to the City's authorization to proceed with construction of the of the public improvements by the City. Authorization to proceed with construction of the public improvements will be withheld until all outstanding development review fees are paid in full. SECTION 4. A right-of-way inspection fee is hereby established in an mount equal to $50.00 per hour with a minimum of one hour for each inspection conducted. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking construction or repairs with the City right-of-way no later than fifteen days after the date of the invoice. Failure to pay the fee in full may result in the City's terminating the contractor's or utility's right to work within the City right-of-way. SECTION 5. All ordinances, including Ordinance Nos. 1999-299 and 2000-300, in conflict with this ordinance are hereby superceded by this ordinance to the extent of conflict. This ordinance and Ordinance Nos. 1999-299 and 2000-300 are controlling over anything contained in the Construction Design Criteria Manual (the "Criteria Manual") pertaining to inspection fees, including without limitation Section 1.C. of the Criteria Manual entitled "Inspection Fees"; it never being the intent of the City Council to exempt private developments from paying the inspection fee where the effective preliminary plat was approved prior to October 1, 2000. The fees established by this ordinance and Ordinance Nos. 1999-299 and 2000-300 are applicable to all developments regardless of when the effective preliminary plat was approved. SECTION 6. This ordinance shall become effective immediately fi:om and after its passage and approval. Page 2 PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~ Page3 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Fiscal Operations/Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Kiwanis Club of Denton, Texas, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax Funds. The contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $3,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO, AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE KIWANIS CLUB OF DENTON, TEXAS, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Kiwanis Club of Denton, Texas, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPRO, VI}{D AS TO LJEG.AL FORM ? AGREEMENT BETWEEN THE CITY OF DENTON AND KIWANIS CLUB OF DENTON, TEXAS, INC. (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Kiwanis Club of Denton, Texas, Inc., a legal entity incorporated on September 6, 1939 under the laws of the State of Texas (the "CLUB"): WHEREAS, T~x. Tax CODE §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, IEX. TAX CODE §351.101(a) authorizes the CITY to use revenue fi:om its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the CLUB is well equipped to perform those activities; and WHEREAS, TEX. TAX COD~ §351.101(c) authorizes the CITY to delegate by contract with the CLUB, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue bom the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the CLUB agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the CLUB under this Agreement, the CITY agrees to pay to the CLUB a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the CLUB sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) meanings: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attomey and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax fi'om taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this A~eement is in force. Contract quarters will end on March 31st, June 30*, September 30 TM, and December 31st of each contract year. CO) In retum for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to CLUB an amount of money in each contract year equal to the lesser amount of Thirty Seven One Hundredths percent (0.37%) of the annual base payment amount or the fixed contract amount of Three Thousand Dollars ($3,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment mount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 0.37% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the CLUB of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. CO) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the C1TY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the CLUB. Co) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. Page 2 (c) CITY may withhold further allocations if CITY determines that CLUB's expenditures deviate materially fi:om their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the CLUB of the agreed payments of hotel tax funds specified above, the CLUB agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates as authorized by T~x. TAX CODE §351.10i(a). Funds for any calendar year which are unused by midnight December 3 l~t of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from the C1TY by the CLUB may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(0, only if they are directly attributable to work on programs which promote tourism and the hotel and convention industry, which also promote at least one of the six statutory purposes enumerated within TEx. TAX CODE §351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion oftutal administrative costs of the CLUB for which hotel tax funds may be used shall not exceed that portion of the CLUB's administrative costs aetuatly incurred in conducting the activities specified in ¶2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. Hi. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The CLUB shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the CLUB in which the hotel tax funds shall be used by the CLUB. This budget shall specifically identify proposed expenditures of hotel tax funds by the CLUB. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the CLUB any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) The CLUB acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the CLUB with respect to the hotel tax funds paid by the CITY to the CLUB under this Agreement. The CLUB shall expend hotel tax funds only in the manner Page 3 and for the purposes specified in this Agreement, T~x. TAX CODE §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The CLUB shall maintain any hotel tax funds paid to the CLUB by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The CLUB shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the CLUB. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. CLUB understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, T~x. GOV'T CODE, ch. 552, as hereat~er amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to the CITY, CLUB shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of invoices or receipts made with regard to hotel tax funds pursuant to T~x. TAX CODE §351.101(e), and (3) a copy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The CLUB shall respond promptly to any request fi:om the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The CLUB shall give the City Manager of the CITY reasonable advance written notice of the time and place of all meetings of CLUB's Board of Directors, as well as any other meeting of any constituency of the CLUB at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the CLUB to give notice of any executive session of the Executive Committee of the CLUB. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guide'hues, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. Page 4 Co) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the CLUB for any contractual obligations of the CLUB undertaken by the CLUB in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the CLUB or to assume the performance of any contractual obligations of the CLUB for or under any contract entered into by the CLUB as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the CLUB will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within i0 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The CLUB will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the CLUB after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the CLUB; Co) The insolvency of the CLUB, the filing cfa petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the CLUB for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the CLUB for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of the CLUB to submit a financial quarterly report which compiles with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial Page 5 determination, either party shall have the right to terminate this Agreement upon mediate notice to the other party in the event that any person has instituted litigation conceming the actvifies of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, CLUB agrees to refund any and all unused funds, or funds determined by the CiTY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the CLUB with another private entity, person, or organi- zation for the performance of those services described in ¶2.1 above. In the event that the CLUB enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the CLUB shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to T~x. TAx Coos ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions perta/ning to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The CLUB shall operate as an independent contractor as to ail services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The CLUB shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the CLUB shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The CLUB shall not be considered a partner or joint venturer with the CITY, nor shall the CLUB be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE CLUB AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE CLUB OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF CLUB, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. The CLUB shall not assign this Agreement without first obta/ning the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: Page 6 CITY CLUB City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Kiwanis Club, Inc. Robin Olsen 1701 N. Elm St. Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the CLUB and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to ail applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. The CLUB shall provide insurance as follows: $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) The CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED th/s __ day of ,2003. Page 7 TI~ CITY OF DENTON, TEXAS EtK2NE BROCK, MAYOR ATTEST: By: JENNIFER WALTERS, CITY SECRETARY ATrEST: APPROVED AS TO LI/GAL FORM: By: Secretary By: Page 8 Denton Kiwanis Club 4th of July Fireworks Show Program Year 2004 Exhibit A Advertising Advertising / Promotion Total Budget $ $ 3,000 3,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Demon and the Tejas Storytelling Association, Inc. for the paymem and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This comract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependem upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $26,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEJAS STORYTELLING ASSOCIATION, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Tejas Storytelling Association, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAyoR BY AF'PROVID AS TO LEGkL FOR?v: tlERBER F L. AGREEMENT BETWEEN THE CITY OF DENTON AND TEJAS STORYTELLING ASSOCIATION, INC. (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between thc City of Denton, Texas, a municipal corporation (the "CITY"), and the Tejas Storytelling Association, Inc., a legal entity incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, T~x. TAX CODE §351.002 authol'iZCS the CITY to levy by ordinance a municipal hotel occupancy tax C'hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicini~r, and WHEREAS, the ASSOCIATION is well equipped to perform those activities; and WHEREAS, T~x. T~,x Cooc §351.101(c) authorizes the CITY to delegate by conWact with the ASSOCIATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained he.in, the CITY and the ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the ASSOCIATION under this Agreement, the CITY agrees to pay to the ASSOCIATION a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the ASSOCIATION sometimes herein referred to as thc "ogreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. R will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of thc relevant fisc~ year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period oft/me (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in thc regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31st, June 30th, September 30th, and December 31 ~ of each coritract year. Co) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of Three and Twenty Three One Hundredths percent (3.23%) of the annual base payment amount or the fixed contract amount of Twenty Six Thousand Dollars ($26,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that thc annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 2:5% of the fixed contract amount or the unpaid remainder of 3.23% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and thc receipt of the required quarterly reports. 1.3 Dates of Payments to ASSOCIATION. (a) The term "quarterly payments" shall mcan payments by the CITY to thc ASSOCIATION of thosc amounts specified in ¶1.2, above, as dctermincd by the hotel tax revenue collected. Co) Each quarterly payment shall be paid upon receipt of the required reports and after the 25~ day following the last day of the contract quarter, ff thc quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be hcld in brcach of this Agrccmcnt. The CITY may withhold the quarterly payment(s) until the appropriate reports arc received and approved, which approval shall not unreasonably be withheld. Tejas HOT Funding CY 2004 - Page 2 1.4 Other limitations regardin_g consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the ASSOCIATION. CO) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the ASSOCIATION of the agreed payments of hotel tax funds specified above, the ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as well as the encouragement, promotion, improvement, and application of the arts including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craR arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms as authorized by TEX. TAX CODE §351.101(a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) 2.2 Administrative Costs. The hotel tax funds received from the CITY by the ASSOCIATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101 (0, only if they are directly attributable to work on programs which promote tourimn and the hotel and convention industry, which also promote at least one of the six statutory purposes enumerated within T~x. TAX CODE §351.101(a). 2.3 Specific Restrictions on Use of Fund~ (a) That portion of total administrative costs of the ASSOCIATION for which hotel tax funds may be used shall not exceed that portion of the ASSOCIATION's administrative costs actually incurred in conducting the activities specified in ¶2.1 above. Co) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the perform ce of the person's job in an efficient and professional manner. Tcjas HOT Funding CY 2004 - Page 3 HI. RECORDI~EPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The ASSOCIATION shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the ASSOCIATION in which the hotel tax funds shall be used by the ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by the ASSOCIATION. In other words, the C1TY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the ASSOCIATION any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) The ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the ASSOCIATION with respect to the hotel tax funds paid by the CITY to the ASSOCIATION under this Agreement. The ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The ASSOCIATION shall maintain any hotel tax funds paid to the ASSOCIATION by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The ASSOCIATION shall maintain complete and accurate financial records of each expenditure of thc hotel tax funds made by the ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the patty making the request. ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, 'lEx. GOV'T CODE, ch. $52, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of the hotel tax funds, and within thirty days after the end ofevery contract quarter, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of thc expenditures or copies of thc invoices or receipts made with regard to hotel tax funds pursuant to TEx. TAX CODE §351.101(c), and (3) a copy of all financial records (e.g., copies of front and back of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate .The ASSOCIATION shall respond promptly to any request from the City Manager of the C1TY, or designate, for additional information relating to the activities performed under this Agreement. Tejas HOT Fun_a.~_n_E CY 2004. Page 4 3.5 Notice of Meetings. The ASSOCIATION shall give the City Manager or its desi~ate of the CITY reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of the ASSOCIATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the ASSOCIATION to give notice of any executive session of the Executive Committee of the ASSOCIATION. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on. January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon temxinafion of the Agreement. 4.2 Termination Without Cause, (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In thc event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the ASSOCIATION for any contractual obligations of the ASSOCIATION undertaken by the ASSOCIATION in satisfactory performance of those activities specified in ~[~2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in thc good faith performance of those services contemplated in ¶*[2. l and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the ASSOCIATION or to assume the performance of any contractual obligations of the ASSOCIATION for or under any contract entered into by the ASSOCIATION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the ASSOCIATION will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the CitF, 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The ASSOCIATION will be obligated to return any unused fimds or funds determined to be used improperly. Any use of remaining funds by the Tejas HOT Funding CY 2004 - Page 5 ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the ASSOCIATION; (b) The insolvency of the ASSOCIATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the ASSOCIATION for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or thc ASSOCIATION for more than thirty (30) days after written notice of SUCh breach is given to the breaching party by the other party, or (d) The failure of the ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or qum'terly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the mating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~4.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the ASSOCIATION with another private entity, person, or organization for thc performance of those services described in ¶2.1 above. In the event that the ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the ASSOCIATION shall cause such other entity, person, or oxgmfizafion to adhere to, conform to, and be subject to all provisions, terr~, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including repor~g requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same Tejas HOT Funding CY 2004 - Page 6 and the ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The ASSOCIATION shall not be considered a partner or joint venturer with the CITY, nor shah the ASSOCIATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE ASSOCIATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE ASSOCIATION OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON AL!.RGATIONS OF NEGLIGENT OR INTENTIONAL Acrs OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. The ASSOCIATION shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Tejas Storytelling Association, Inc. Karen Morgan P.O. Box 2806 Denton, Texas 76202-2806 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the ASSOCIATION and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thepeto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, anm~gements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. Tejas HOT Fundiag CY 2004 - Page 7 5.10 Headings. The hesdings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, de6nition, or extermion of the specific terms of the section and paragraph so desi~ 5.11 Severabllity. If any section, subsection, paragr~h, s~tence, clause, phrase or word in this Agreement, or ~pplicafion thereof to any pe~on or circ~ is held invalid by my court of competm~ jurisdiction, such holding shall not afl%ct the validity of the remaining portions of this Agreement, and the parties h~reby declzre they would have ev~ted such remaining portions despi~ any such invalidity. S.12 Insurane~e. The ASSOCIATION sh_-I. 1 provide insurance as follows: $500,000 Cornmeal Cren~ Liability, or $1,000,000 Event Insurance, cov~'ing all events taking place on City-owned property Statutory Workers' Compensalion and Employs' Liability (SI00,000/$500,000/$100,000) The CITY must b~ named as an additional insured on all poficies (except Workers' ~on) and proof of coverage shall be submitted prior to my paym~mt by ~he CITY. EXF.,CUTN~ ~ __ day of ,2003 TH~ CITY OF DENTON, TEXAS By: EUI2NE BROCK, MAYOR ATTEST: By:. /ENNIFER WALTERS, CITY SECRETARY TEIAS STORYTELLING/ASSOCIATION,~ By:, C~dm~a/Dil~lor c~ Tejas HOT F~,_.M.i.E CY 2003 - Page 8 ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary Tejas HOT Funding CY 2004 - Page 9 Tejas Storytelling Association Tejas Storytelling Festival Program Year 2004 AdVertising Radio Website Video Total Advertising Art Performers / Site Operations Total Art Exhibit A $ 10,000 6O0 4OO $ 11,000 $ 15,000 $ 15,000 Total Budget $ 26,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an interlocal agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Bayless-Selby House and the Courthouse-on-the-Square Museums; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $93,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE IN SUPPORT OF THE BAYLESS- SELBY HOUSE AND THE COURTHOUSE-ON-THE-SQUARE MUSEUMS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Tex. Tax Code §351.101(a) authorizes the City of Denton, Texas to use revenue fi:om its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity to visit preserved historic sites and museums; and WHEREAS, the County of Denton, Texas is well equipped to perform those activities by its operation of the Bayless-Selby House and Courthouse-on-the-Square Museums; and WHEREAS, Tex. Tax Code §351.101(c) authorizes the City of Denton, Texas to delegate by contract with the County of Denton, Texas, as a govemmental entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; and WHEREAS, both the City of Denton, Texas and the County of Denton, Texas have a secondary source of authority to enter into an interlocal cooperation agreement, pursuant to Chapter 791 of the Texas Government Code, as: the agreement is authorized by both governmental bodies; the agreement states the purpose, terms, fights, and duties of the contracting parties; the consideration is being paid by City of Denton, Texas out of current revenues; the compensation is fair; and the services to be performed are "museum services" authorized under §791.003(3)(F) of the Texas Govemment Code, which each party is authorized to perform individually; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an interlocal agreement between the City of Denton and Denton County for the payment and use of hotel tax revenue in support of the Bayless-Selby House and Courthouse-On-The Square Museums, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. Page 1 PASSED AND APPROVED this the 2003, day of ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERB~TORNEY S:\Our Documents\Ordinances\03~IOTXcounty museum ord. DOC Page 2 AGREEMENT BETWEEN THE~ CITY OF DENTON AND DENTON COUNTY, TEXAS (COURTHOUSE ON THE SQUARE AND THE BAYLESS-SELBY HOUSE MUSEUMS) (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and County of Denton, Texas, a governmental entity existing under the laws of the State of Texas, contracting on behalf of its Courthouse-on-the-Square and the Bayle~s-Selby House Museums (collectively, the "MUSEUMS"): WHEREAS, T~x. TAX CODE §351.002 authorizes the CITY to levy by ordinauce a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of soven percent (7%); and WI-IF~AS, TEx. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote touri.~rn and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;, as well as to engage in historical restoration and preservation projects and activities and advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic' sites and museums; and '~VHEREAS, TEX. TAX CODE §351.101(c) authorizes the CITY to delegate by contract with the MUSEUMS, as a governmeffufl entity, the m~nagement and supervision of programs and activities of the type described hercinabove funded with revenue from the municipal hotel occupancy tax; and WI _~.__ ._._R.EAS, the MUSEUMS are well equipped to perform those activities; and WHEREAS, both CITY and MUSEUMS have a secondary som'ce of authority to enter into this Agreement as an interlocal cooperation agreement, pursuant to Chapter 791 of the Texas Government Code, as: the Agreement is authorized by both governmental bodies; the Agreement states the purpose, terms, rights, and duties of the contracting parties; the conside~ion is being paid by CITY out of current revenues; the compensation is fair, and the services to be performed are "museum services" authorized under §791.003(3)(F) of the Texas Government Code, which each party is authorized to perform individually;, NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the MUSEUMS agree and contract as follows:' I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the MUSEUMS under this Agreement, the CITY agrees to pay to the MUSEUMS a portion of the hotel tax r~enue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the MUSEUMS sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanings: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room~in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to th~ late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the C1TY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the C1TY during any relevant period of t/me (re., fiscal year or fiscal quarter), less (1) attorney and auditing costs-inctm~ during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31't, June 30tu, September 30m, and December 31st of each contract year. (b) In return for satisfactory performance of the activities set forth/n this Agreement and all attachments hereto, the CITY shall pay to MUSEUMS an amount of money in each contract year equal to the lesser amount of Eleven and Fifty Seven One Hundredths percent (I 1.57%) of the _annual base payment amount or the fixed contract amount of Ninety Three Thousand Dollars ($93,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unlcss the CITY can show with reasonable certainty that thc annual base payment amount will be less than originally estimated for the fiscal year. Thc fourth quarterly payment will.represent 25% of the fixed contract amount or the unpaid remainder of 11.57% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of thc required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments'' shall mean payments by the CITY to the MUSEUMS of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. HOT Funds CY 2004 Denton County Museums Page 2 Co) Each quarterly payment shall be paid upon receipt of the required reports and after the 25t~ day following the last day of the contract quarter, ff the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld.. 1.4 Other limitations regard;ag consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any 'future funding is solely the. responsibility of the MUSEUMS. Co) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may wit_._h, hold further allocations if CITY determines that MUSEUMS' expenditures deviate materially from their approved budget. H. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the C1TY to the MUSEUMS of the agreed payments of hotel tax funds specified above, the MUSEUMS agree to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as well as to engage in historical restoration and preservation pwjects and activities and advertising and conducting solicitations and promotional pwgrams to encourage tourists and convention delegates to visit preserved historic sites and museums, as authorized by TEX. TAX CODE §351.101(a)(3) and (a)(5). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days.' 2.2 Administrative Costs. The hotel tax funds received from the CITY by the MUSEUMS may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrat/ve costs allowed by TEX. TAX CODE §351:101 (f), only if they are directly attributable to work on pwgrams, which promote tourism and the hotel and convention industry, and which also pwmote at least one of the six statutory purposes enumerated within TEX. TAX CODE §351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) MUSEUMS agree to demonstrate strict comphance with the record keeping and apportionment limitations imposed by 'lEx. TAX CODE §351.101(f) and §351.108 (c) and (d). MUSEUM shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in ~2.l and 2.2 above. Co) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the pr/mary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. HOT Funds CY 2004 Denton County Museums Page 3 m. RECORDKEEPiNG AND REPORTING REQUIREMENTS 3.1 Badger. (a) The MUSEUMS shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the MUSEUMS in which the hotel tax funds shall be used by the MUSEUMS. This budget shall specifically identify proposed expenditures of hotel tax funds by the MUSEUMS. In other words, the CITY' should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the MUSEUMS any hotel. tax revenues as set forth in Section I of this contract during any fiscal year ofthi~ Agreement unless a budget for such respective fiscal year has been approved in writing by tl~ Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated ia paragraph 4.2. Co) The MUSEUMS acknowledge that the approval of such budget by the Denton City Council creates a fiduciary duty in the MUSEUMS with respect to the hotel tax funds paid by the CITY to the MUSEUMS under this Agreement. The MUSEUMS shall expend hotel tax funds only in the manner and for the purposes specified.in this Agreement,.TF.x. TAX CODE §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The MUSEUMS shall maintain any hotel tax funds paid to the MUSEUMS by the CITY in a separate checking account or with'segregated fund accounting, such that any reasonable pc'rson can review the source of expenditures of tax funds. 3.3 lemaneial Records. The MUSEUMS shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the MUSEUMS. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. MUSEUMS understand and accept that all such financial records, and any other records rela..,_'ng to this Agreement shall be subject to the Public Information Act, TEX. GOV'T CODE, ch. 552, as hereafter amended. 3,4 Quarterly Reports. ARer initial receipt of hotel tax funds, and within thirty days after the end of every contract quarter, MUSEUMS shall furnish to C1TY: (1} a completed financial ~port, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to 'rEX. TAX CODE §351.101(c), and (3) acopy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation), MUSEUMS sb~ll prepare and deliver all reports in a form and manner appwved by the City Manager or designate. The MUSEUMS shall respond promptly to any request from th~ City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. HOT Funds CY 2004 Denton County Musenm.~ Page 4 3.5 Notice of Meetings. The MUSEUMS shall give the City Manager or its designate of the, CITY reasonable advance written notice of the time and place of all meetings of MUSEUMS' Board of Directors, as well as any other meeting of any constituency of the MUSEUMS at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the MUSEUMS to give notice of any executive session of the Executive Committee of the MUSEUMS. IV. TERM AND TERMINATION 4.1 Term, The term of this Agreement shall commence on January 1, 2004 and termina~ at midnight on January31, 2005. However, the program period shall commence'on January I, 2004 and terminate at midnight on December 31, 2004. Only those expenditure~ authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incun'ed during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unbent funds sh~ll be forfeited to CITY upon termination of tho Agreement. 4.2 Termination Without Cause. (a) .This Agreement may be terminat~ by either party, with or without eause~ by giving the other party sixty (60) days advance written notice. Co) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the MUSEUMS for any contractual obligations of the MUSEUMS undertaken by the MUSEUMS in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further' conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the MUSEUMS or to assume the performance of any conm~etual obligations of the MUSEUMS for or under any contract entered into by the MUSEUMS as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the MUSEUMS will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The MUSEUMS will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the MUSEUMS after notification of termination is conditioned upon such contractual obligations having been incurred HOT Funds CY 2004 Denton County Museums Page 5 and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Ag ent. shall'automatically terminate upon the occurrence of any of~e following events: (a) The termination of the legal existence of the MUSEUMS; Co) The insolvency of the MUSEUMS, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the MUSELgvIS for the benefit of creditors; (c) The continuatibn of a breach of any of the terms or,conditions of this Agreement by either the CITY or the MUSEUMS for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party;, or (d) The failure of the MUSEUMS to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next eonU'act term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~4.3 or 4.4, MUSEUMS agree to. refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the MUSEUMS with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the MUSEUMS enter into any m'rangement, contractual or otherwise, with such other entity, person or organization, the MUSEUMS shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and Conditions of this Agreement and to lex. TAx CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed paymeiats and hotel tax funds. 5.2 Independent Contractor. The MUSEUMS shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of thc CITY. The MUSEUMS shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the MUSEUMS shall be solely responsible for the acts and omissions of its directors, officers, HOT Funds CY 2004 Denton County Museums Page 6 employees, agents, and subcontractors. The MUSEUMS shall not be considered a partner or joint venturer with the CITY, nor shall the MUSEUMS be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. TO ~ EXTENT AUTHORIZED BY LAW, THE MUSEUMS AGREE TO INDEMNIFY, HOLD HARMLESS, AND DEFEND ~ CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUrfS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR cHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE MUSEUMS OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF MUSEUM, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. S.4 Assignment. The MUSEUMS shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY MUSLROMS City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton County Courthouse-On-The Square and the Bayless-Selby House Museums Georgia Caraway, Director 110 W. Hickory St. Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein ~_a.!! be b~ding upon and inure to the benefit and obligation of the CITY and the MUSEUMS and their respective successors and assi~ons. 5.7 Application of Laws. All terms, conditions, and pwvisions of this Agreement are subject to all applicable federal laws, state laws, the Char. er of the City of Denton, ~l ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There axe no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or .among the parties hereto, relating to the subject matter of this Agre~nent, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the tenm and conditions of any other document relating to this transaction or these transactions. HOT Funds CY 2004 Denton County Museums Page 7 ~.9 Duplicate Originals. This Agreement is executed in duplicate 5.10 Headings. The headings and subheadin~ of the various sections and paragraphs of this Agrexn~t are ins~l mci'ely, for lhe purpose of conv~aimce and do not xlprmm or in?ly,any limilation, defi~ilion, or extra.on of the speoific terms of tho section and paragraph so clesi~-tixl. S,11 Severabllit~. If any section, ~on, pm'alFaph, sente~, clause, pttrase or word in this Agreement, or application thereof to any person or ci~mmtance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties h~eby declare they would have enacted such remaining portions deapite $.12 Insurance. The MUSEUMS shallprovide insurance ns follows: Proof of coverago shall bo submittod prior to any payment by tho CITY. $.13 Wsiver of hnm~ for Suit ~o Enforce. By axecuting ~ autho~ the ~xecmion of this contract, DENTON COUNTY, TBXAS expressly waives immunity from any suit brought by CiTY f~r the ~forcement of tho provim'o~s contained he~a, and further ~u'ossly waives. ~o premmtmeut r~luired of T~x. Loc. Gov't Code sec. 89.004 as a l~requisite ~o such suit. BXItCI_rrED this ~ day of 2003. THB CIYY OF DENTON, TEXAS ATTF.,ST: ~ WALTERS, CITY SECRETARY sw_. im0cx, Dt~'TON CO~, TEXAS HOT Ntmds CY2003-0~ Det~m County Mvs~,~ Pag~ $ ATTEST: '~'~ '- 'U HOT Funds CY 2004 Denton County Museums Page 9 Denton County Courthouse-on-the-Square & Bayless-Selby House Museums Program Year 2004 Exhibit A Advertising Block Ads Brochures Newspapers Ma~lazines Total Advertising 1,886 · 3,000 12,000 8,420 $ 25,306 Historical Archival Suplies Reference Books Furnishings and Equipment Tourism Director (Partial) Curator of Collections (Partial) Contract Labor BSH Manager Office Supplies Membership Dues Total Historical 7,000 I 000 8 024 20 000~ 10 000 2 000 19 000 500 170 $ 67,694 Total Museum Budget $ 93,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of DeNon and the DeNon Chamber of Commerce (Convemion & Visitor Bureau) for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This comract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependem upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $371,783 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE (CONVENTION AND VISITOR BUREAU) FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Chamber of Commerce (Convention and Visitor Bureau) for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003, ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINEBROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF COMMERCE (CONVENTION & VISITOR BUREAU) (CY- 2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Chamber of Commerce (Convention & Visitor's Bureau), a non- profit corporation incorporated under the laws of the State of Texas (the "BUREAU"): WHEREAS, 'lEx. TAX CODE §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton &seven percent (7%); and WHEREAS, 'rex. Tax CODa §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the BUREAU is well equipped to perform those activities through its Denton Convention and Visitor's Bureau; and WHEREAS, T~x. TAx CODE §351.101(c) authorizes the CITY to delegate by contract with the BUREAU, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the BUREAU agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the BUREAU under this Agreement, the CITY agrees to pay to the BUREAU a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the BUREAU sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) meanings: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code §351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's. fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attomey and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31st, June 30th, September 30th, and December 31st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to BUREAU an amount of money in each contract year equal to the lesser amount of Forty Six and Twenty Six One Hundredths percent ~(__4_6_26%) of the annual base payment amount or the fixed contract amount of Three Hundred Seventy One Thousand Seven Hundred Eighty Three Dollars ($371,783).This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 46.26% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports.. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the BUREAU of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the C1TY to furore funding of this program beyond the current contract period. Any future funding is solely the responsibility of the BUREAU. Page 2 Co) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may withhold further allocations if CITY determines that BUREAU's expenditures deviate materially fi:om their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the BUREAU of the agreed payments of hotel tax funds specified above, the BUREAU agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tohrists and convention delegates or registrants to the municipality or its vicinity as authorized by TEx. T^x CODE §351.101(a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from CITY by BUREAU may be spent for day-to-day operations, office supplies, salaries, travel expenses and other administrative costs allowed by TEX. T^x CODE §351.101 (f), only if they are directly attributable to work on programs which promote tourism and the hotel and convention industry, and which also promote at least one of the six statutory purposes enumerated within TEX. TAX CODE §351.10 l(a). 2.3 Specific Restrictions on Use of Funds. (a) BUREAU agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by T~,x. TAx COD~, §351.101(0 and §351.108 (c) and (d). BUREAU shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in ¶¶2.1 and 2.2 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. IH. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The BUREAU shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the BUREAU in which the hotel tax funds shall be used by the BUREAU. This budget shall specifically identify proposed expenditures of hotel tax funds by the BUREAU. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the BUREAU any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. Page 3 (b) The BUREAU acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the BUREAU with respect to the hotel tax funds paid by the CITY to the BUREAU under this Agreement. The BUREAU shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, T~x. TAx CODE §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The BUREAU shall maintain any hotel tax funds paid to the BUREAU by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The BUREAU shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the BUREAU. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. BUREAU understands and accepts that all such financial records, and any other records .relating to this Agreement shall be subject to the Public Information Act, Tex. GOV'T CODE, eh. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of the hotel tax funds, and within thirty days after the end of every contract quarter, BUREAU shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures made or copies of the invoice or receipts with regard to hotel tax funds pursuant to T~X. T^x CODE §351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). BUREAU shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. BUREAU shall respond promptly to any request from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The BUREAU shall give the City Manager of the CITY reasonable advance written notice of the time and place of all meetings of BUREAU's Board of Directors, as well as any other meeting of any constituency of the BUREAU at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the BUREAU to give notice of any executive session of the Executive Committee of the BUREAU. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or 'unspent funds shall be forfeited to C1TY upon termination of the Agreement. Page 4 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the BUREAU for any contractual obligations of the BUREAU undertaken by the BUREAU in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the BUREAU or to assume the performance of any contractual obligations of the BUREAU for or under any contract entered into by the BUREAU as contemplated herein shail not exceed 66 2/3% of the current quarterly payment. (e) Further, upon termination pursuant to ¶4.2(a), the BUREAU will provide the CITY: l) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days aider receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request fi.om the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The BUREAU will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the BUREAU after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the BUREAU; (b) The insolvency of the BUREAU, the filing cfa petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the BUREAU for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the BUREAU for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or Page 5 (d) The failure of the BUREAU to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the fight to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, BUREAU agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS fi.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the BUREAU with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the BUREAU enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the BUREAU shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to T~.x. T^x Cote ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The BUREAU shall operate as an independent contractor as to ali services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The BUREAU shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the BUREAU shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The BUREAU shall not be considered a partner or joint venturer with the CITY, nor shall the BUREAU be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE BUREAU AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE BUREAU OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF BUREAU, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. Page 6 5.4 Assignment. The BUREAU shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY BUREAU City of Denton 21 $ E. McKinney Denton, TX 76201 Denton Chamber of Commerce Denton Convention & Visitor Bureau Kim Dillon-Phillips Vice President P.O. Box Drawer P Denton, Texas 76202-1719 5.6 Inurement. This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the C1TY and the BUREAU and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. Page 7 5.12 Insurance. Thc BUREAU shall, at a nfinimmn, provide insurance as follows: $500,000 Commercial General Liability Statutory Workom' Compensation ($1oo,ooo/$5oo, oo0/$1oo, o0o) $50o,000 Business Automobile Liability on vohiolea and Employers' Liability any owned, non-owned or hired The CITY must be mmetl as an additional insured on all policies (except Work.s' Compex~ation) and proofofcovorag~ slmll be submitt~ prior to any payment by the CITY. EXECUTED this __ day of ,2003. THE CITY OF DENTON, TEXAS ATTEST: JENNIFP_~ WALTERS, CITY SECRETARY ATTEST: By: EULINE BROCK, MAYOR PROUTY, ~ crrv ArrOam DENTON C OF COMMERCE By: ~ ~ . APPROVED AS TO LEGAL FORM: Seorotary By: Pag~ 8 Denton Chamber of Commerce Convention and Vistor Bureau Program Year 2004 Exhibit A Advertising Print Advertising Convention Advertising Tourism Promotional Material Brochures Travel Shows Tourism Services Special Projects Cooperative Advertising Air Fair Black Chamber of Commerce Cinco de Mayo Denton Community Theatre Denton Festival Foundation Denton Holiday Festival Juneteenth Kiwanis Club Main Street Association ....... Teias Storytelling Associaton Total Advertising 37,021 2 500 5 000 10 000 1 000 10 000 1 000 7,500 3,000 6,000 6,000 15,000 2,500 4,500 2,000 6,000 15,000 134,021 Administration Administration Salaries VP Retirement VP Car Allowance Accounting Salary Payroll Taxes Health Insurance Liability Insurance Travel and Training Computer Equipment Copy Machine Warehouse Storage Desktop Copier Lease Office Supplies Telephone Memberships Printing Postage Office Rent 98,000 2,500 5,500 5,337 11,000 9,070 800 5,000 3,500 500 700 750 1,500 7,500 2,100 1,000 3,500 14,055 Total Administration $ 172,312 CVB - 2 Sports Advertising Convention and Trade Shows 7,000 Total Sports Advertising 7,000 Sports Administration Sports Manager Sports Health Insurance Sports Payroll Taxes Managers Car Allowance Sports Postage Sports Printing Sports Travel and Training Sports Memberships 42,000 4,700 3,200 1,800 500 1,500 4,000 750 Total Sports Administration $ 58,450 Total CVB Budget $ 371,783 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 3, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of DeNon and the DeNon Black Chamber of Commerce for the paymem and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This comract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependem upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $6,400 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON BLACK CHAMBER OF COMMERCE FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Black Chamber of Commerce for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003, ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PRO~I~/~~KTYO~ S:\Our Documents\Ordinances~03'uqOTxbl~ber ord.doc AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON BLACK CHAMBER OF COMMERCE (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Black Chamber of Commerce, a legal entity existing under the laws of the State of Texas (the "CHAMBER"): WHEREAS, TEx. TAX CODE §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEKEAS, TEX. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;, and WHEREAS, the CHAMBER is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE §351.101(c) authorizes the CITY to delegate by contract with the CHAMBER, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEKEFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the CHAMBER agree and con~act as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the CHAMBER under this Agreement, thc CITY agrees to pay to the CHAMBER a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the CHAMBER sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) meanings: As used in this Agreement, the following terms shall have thc following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rote of seven percent (7%) of the price paid for a mom in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this A~eement is in force. Contract quarters will end on March 31~t, June 30th, September 30~', and December 31 st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to CHAMBER an amount of money in each contract year equal to the lesser amount of Eighty One Hundredths percent (.80%) of the annual base payment amount or the fixed contract amount of Six Thousand Four Hundred Dollars ($6,400). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the City can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract mount or the unpaid remainder of .80% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the CHAMBER of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. Black Chamber HOT Funding CT 2004 - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the CHAMBER. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may withhold further allocations if CITY determines that CHAMBER's expenditures deviate materially fi'om their approved budget. H. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the CHAMBER of the agreed payments of hotel tax funds specified above, the CHAMBER agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as well as the promotion of tourism through the encouragement, promotion, improvement, and application of the arts, including insmnnental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms, as authorized by T~x. TAX CODE §351.101(a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax ftmds received from the CITY by the CHAMBER may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(0, only if they are directly attributable to work on programs, which promote tourism and the hotel and convention industry, which also promote at least one of the six statutory purposes enumerated within TEX. TAX CODE 351.1.1 (a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the CHAMBER for which hotel tax funds may be used shall not exceed that portion of the CHAMBER's administrative costs actually incurred in conducting the activities specified in ¶2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hoteI industry or the performance of the person's job in an efficient and professional manner. m. RECORDKEEP1NG AND REPORTING REQUIREMENTS 3.1 Budget. Black Chamber HOT Funding CY 2004 - Page 3 (a) The CHAMBER shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A') as approved by the City Council for each calendar year, for such operations of the CHAMBER in which the hotel tax funds shall be used by the CHAMBER. This budget shall specifically identify proposed expenditures of hotel tax funds by the CHAMBER. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the CHAMBER any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) The CHAMBER acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the CHAMBER with respect to the hotel tax funds paid by the CITY to the CHAMBER under this Agreement. The CHAMBER shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, Tex. TAX CODE §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The CHAMBER shall maintain any hotel tax funds paid to the CHAMBER by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The CHAMBER shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the CHAMBER. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonably advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. CHAMBER understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, lex. GOV'T CODE, ch. 552, as hereat~er amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to the CITY, CHAMBER shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. TAX CODE §351.101(c), and (3) a copy of all financial records (e.g., front and back copies of cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The CHAMBER shall respond promptly to any request from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The CHAMBER shall give the City Manager or designate of the CITY reasonable advance written notice of the time and place of all meetings of CHAMBER's Board of Directors, as well as any other meeting of any constituency of the CHAMBER at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the CHAMBER to give notice of any executive session of the Executive Committee of the CHAMBER. Black Chamber HOT Funding CY 2004 - Page 4 IV. TERM AND TERMINATION 4.1 Term. Thc term of this Agreement shall commence on January 1, 2003 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and t~minate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the CHAMBER for any contractual obligations of the CHAMBER undertaken by the CHAMBER in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the CHAMBER or to assume the performance of any contractual obligations of the CHAMBER for or under any contract entered into by the CHAMBER as contemplated herein shaI1 not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the CHAMBER will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The CHAMBER will be obligated to remm any unused funds or funds determined to be used improperly. Any use of remaining funds by the CHAMBER after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 AutomaficTermlnation. This Agreement shall automatically terminate upon the occurrence of any of the following events: Black Chamber HOT Funding CY 2004 - Page 5 (a) The tem'fination of the legal existence of the CHAMBER; (b) The insolvency of the CHAMBER, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the CHAMBER for the benefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the CHAMBER for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of the CHAMBER to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beg~m~g of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the fight to termLrtate this Agreement upon L~nmediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, CHAMBER agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days aider termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the CHAMBER with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the CHAMBER enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the CHAMBER shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. T^x Cons ch. 35 l, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The CHAMBER shall operate as an independent contractor aa to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The CHAMBER shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the CHAMBER shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The CHAMBER shall not be considered a partner or joint venturer with the CITY, nor shall the CHAMBER be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE CHAMBER AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, Black Chamber HOT Funding CY 2004 - Page 6 LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE CHAMBER OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF CHAMBER, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. The CHAMBER shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when g/yen in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY CHAMBER City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Black Chamber of Commerce Elihu Gillespie P.O. Box 51026 Denton, Texas 76206 5.6 Inurement. This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the CHAMBER and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applieable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the tern and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Black Chamber HOT Funding CY 2004 - Page 7 5.12 Insurance. The CHAMBER shall, at a minimum, provide insuranco aa follows: $500,000 Commercial General Liability, or $I,000,000 Event Insurance, eovoring any event held on City property Statutory Workers' Compensation and Employers' Li~ility ($100,000/$500,000/$ t oo,ooo) $500,000 Business Automobile Liability on any owned, non-owned or hired vehicles The CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of eovorage shall be submitted prior to any payment by the CITY. EXECUTED tl~ __ day of ,2003, THE CITY OF DENTON, TEXAS ATTEST: JENNIFER WALTERS, CITY SECRETARY By: EULINE BROCK, MAYOR :-~C~~- 1~ ' . . ------' .-- HERBERT L. PROUTY ..... CITY ATTORNEY DENTON ~:X C K C~~ OF t. '(')M M E C~~tor Denton Black Chamber of Commerce Denton Blues Festival and Auto Show Program Year 2004 Exhibit A Advertising .... Radio, Website, Billboard, Newspapers $ 6,400 Total Budget $ 6,400 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Community Theatre for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and recommended allocations to the Council during the Council Work Session on August 7, 2003. FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $9,500 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COMMUNITY THEATRE FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between thc City of Denton and the Denton Community Theatre for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003 ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COMMUNITY THEATRE, INC. (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Community Theatre, Inc., a legal entity incorporated under the laws of the State of Texas (the "THEATRE"): WHEREAS, TEx. TAX CODE {}351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, T~x. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the THEATRE is well equipped to perform those activities; and WHEREAS, T~x. TAX CODE {}351.101 (c) authorizes the CITY to delegate by contract with the THEATRE, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the THEATRE agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the THEATRE under this Agreement, the CITY agrees to pay to the THEATRE a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the THEATRE sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment mount" shall mean a net mount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attomey and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this A~eement is in force. Contract quarters will end on March 31st, June 30th, September 30 , and December 31 of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to THEATRE an mount of money in each contract year equal to the lesser amount of One and Eighteen One Hundredths percent (1.18%) of the annual base payment amount or the fixed contract amount of Nine Thousand Five Hundred Dollars ($9,500). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 1.18% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the THEATRE of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. DCT HOT Funding CY 2004 - Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the THEATRE. Co) It is expressly understood that tl'ds contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may withhold further allocations if CITY determines that THEATRE's expenditures deviate mater/ally fi:om their approved budget. II. USE OF HOTEL TAX REVENUE 2.I Use of Funds. For and in consideration of the payment by the CITY to the THEATRE of the agreed payments of hotel tax funds specified above, the THEATRE agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by T~x. TAx COOk. §351.101 (a) (3). Funds for any calendar year which are unused by midnight December 31 ~t of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received from the CITY by the THEATRE may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(f), only if they are directly attributable to work on programs which promote tourism and the hotel and convention industry, and which also promote at least one of the six statutory purposes enumerated within TEX. TAX CODE 351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the THEATRE for which hotel tax funds may be used shall not exceed that portion of the THEATRE's administrative costs actually incurred in conducting the activities specified in ¶2.1 above. Co) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. IH. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The THEATRE shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the THEATRE in which the hotel tax funds shall be used by the THEATRE. This budget shall specifically identify proposed expenditures of hotel tax funds by the THEATRE. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall, not pay to the THEA~ any hotel DCT HOT Funding CY 2004 - Page 3 tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) The THEATRE acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the THEATRE with respect to the hotel tax funds paid by the CITY to the THEATRE under this Agreement. The THEATRE shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, T~x. T^x CODE §351.101(a) and in the budget as approved by the CITY. 3,2 Separate Accounts. The THEATRE shall maintain any hotel tax funds paid to the THEATRE by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The THEATRE shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the THEATRE. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. THEATRE understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEx. GOV'T CODE, eh. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to the CITY, THEATRE shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEx. TAX CODE §35 I. 10 l(c), and (3) a copy of ail financial records (e.g., copies of front and back of cleared cheeks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The THEATRE shall respond promptly to any request from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The THEATRE shall give the City Manager or its designate of the CITY reasonable advance written notice of the time and place of all meetings of THEATRE's Board of Directors, as well as any other meeting of any constituency of the THEATRE at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the THEATRE to give notice of any executive session of the Executive Committee of the THEATRE. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 DCT HOT Fuading CY 2004 - Page 4 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the THEATRE for any contractual obligations of the THEATRE undertaken by the THEATRE in satisfactory performance of those activities specified in ¶¶2.1 and' 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the THEATRE or to assume the performance of any contractual obligations of the THEATRE for or under any contract entered into by the THEATRE as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the THEATRE will provide the CITY: l) Within 10 business days fi.om the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within l0 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request fi.om the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The THEATRE will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the THEATRE after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the THEATRE; (b) The insolvency of the THEATRE, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the THEATRE for the benefit of creditors; DCT HOT Funding CY 2004 - Page 5 (¢) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the THEATRE for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of the THEATRE to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next conlract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the fight to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities oftha non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, THEATRE agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the THEATRE with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the THEATRE enters into any arrangement, contractual or othenvise, with such other entity, person or organization, the THEATRE shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to T~x. TAx CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The THEATRE shall operate as an independent contractor as to ali services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The THEATRE shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the THEATRE shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The THEATRE shall not be considered a partner or joint venturer with the CITY, nor shall the THEATRE be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE THEATRE AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE THEATRE OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR DCT HOT Funding CY 2004 - Page 6 STATUTORY LAW, OR BASED, IN WItOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF THEATRE, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment The THEATRE shall not assign this Agreement without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mall, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY THEATRE City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Community Theatre, Inc. Scot Wilkinson P.O. Box 1931 Denton, Texas 76202-1931 5.6 Inurement This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the THEATRE and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, omi or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circmstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. DCT HOT Funding CY 2004 - Page 7 5.12 Insurance. Thc THEATRE shall provide insuranco as follows: $500,000 Commercial General Liability, or $1,000,000 Event Insuran~, covering all events taking place on City-owned property Statutory Workers' Compmsation and Employors' Liability ($ lOO,OOO/$5oo,ooo/$1oo, ooo) The CITY must be named as an additional insured on all policies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by the CITY. EXECUTED this ~ day of ,2003. THE CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: By: ~,NNIFER WALTERS, CITY SECKETARY ATTEST: DENTON CO~ THEATRE, INC. Chairman/D/rector APPROVED AS TO LEGAL FORM: By: S~ta~ B~ DCT HOT F,mr!i.g CY 2003 - Page 8 Denton Community Theatre Program Year 2004 Exhibit A Advertising DCT Cable Print Advertising Website Campus Theatre Cable Pied Pipers Cable Website 3,000 1,000 2,000 1,500 1,000 1,000 Total Budget $ 9,500.00 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Festival Foundation for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $55,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FESTIVAL FOUNDATION FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Festival Foundation for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY APPROVED AS T~ HERB~TY' C!T~Y~ ATTORN~ S:\Our Documents\Ordinances\03~IOT~festival ord. DOC AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FESTIVAL FOUNDATION (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Festival Foundation, Inc. a legal entity incorporated under the laws of the State of Texas (the "FOUNDATION"): WHEREAS, TEX. TAX CODE §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax (''hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, T~X. TAX COD~ §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the munic/pality or its vicinity;, and WHEREAS, the FOUNDATION is well equipped to perform those activities; and WHEREAS, TEX. TAX CODI~ §351.101(c) authorizes the CITY to delegate by contract with the FOUNDATION, as an independent entity, the management and sup~gision of pwgrams and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the FOUNDATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the FOUNDATION under this Agreement, the CITY agrees to pay to the FOUNDATION a portion of the hotel tax revenue collected by the CITY at thc rates and in the manner specified herein (such payments by thc CITY to the FOUNDATION sometimes hc~cin referred to as the "agreed payments" or "hotel tax funds''). 1.2 Amount of Payments. As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tak revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel m revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment mount" shall moan a net amount of money equal to the total hotel Wax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attomeys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel Wax from taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this A[Ire~ment is in force. Contract quarters will end on Mm'eh 31st, June 30~, September 30~', and December 31st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to FOUNDATION an amount of money in each coniract year equal to the lesser amount of Six and Eighty Four One Hundredths percent (6.84%) of the annual base payment amount or the fixed contract amount of Fifty Five Thousand Dollars ($55,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than ori~nally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 6.84% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to thc FOUNDATION of those amounts specified in ¶1.2, above, as determined by the hotel Wax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25~ day following the last day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and appwved, which approval shall not unreasonably be withheld. Festival Foundation HOT Funding CY2004 - Page 2 1.4 Other limitations regarding consideration. (a) The fimding of this project in no way commits the CITY to future fund. in.g of this program beyond the current contract period. Any future funding is solely the responsibility of the FOUNDATION. CO) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (¢) CITY may withhold further allocations if CITY determines that FOUNDATION's expenditures deviate materially from their approved budget. H. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of thc payment by the CITY to the FOUNDATION of the agreed payments of hotel tax funds specified above, the FOUNDATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinitT, as well as the promotion of tourism through the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, ereattive writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major arts forms, as authorized by T~x. TAX CODE §351.101(a). Funds for any calendar year which are unused by midnight December 31~t of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds receivod from the CITY by the FOUNDATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(0, only if tbey are directly attributable to work on programs which promote tourism and the hotel and convention industry, and which also promote at least one of the six statutory purposes enumerated within TEX. TAX CODE 351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the FOUNDATION for which hotel tax funds may be used shall not exceed that portion of the FOUNDATION's administrative costs actually incurred in conducting the activities specified in ~.1 above. Co) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. Festival Foundation HOT Funding CY2004 - Page HI. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The FOUNDATION shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A') as approved by the City Council for each calendar year, for such operations of the FOUNDATION in which the hotel tax funds shall be used by the FOUNDATION. This budget shall specifically identify proposed expenditures of hotel tax funds by the FOUNDATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the FOUNDATION any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. Co) The FOUNDATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the FOUNDATION with respect to the hotel tax funds paid by the CITY to the FOUNDATION under this Agreement. The FOUNDATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEx. TAX CODE §351.101 (a) and in the budget as appwved by the CITY. 3.2 Separate Accounts. The FOUNDATION shall maintain any hotel tax funds paid to the FOUNDATION by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The FOUNDATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the FOUNDATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. FOUNDATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOV'T CODE, ch. 552, as here~er amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds and within thirty days af,.er the end of every contract quarter, FOUNDATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. T~oc COD£ §351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The FOUNDATION shall respond promptly to any requem from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. Festival Foundation HOT Funding CY2004 - Page 4 3.5 Notice of Meetings. The FOUNDATION shall give the City Manager or its designate of the CITY reasonable advance written notice of the time and place of all meetings of FOUNDATION's Board of Directors, as well as any other meeting of any constituency of the FOUNDATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the FOUNDATION to give notice of any executive session of the Executive Committee of the FOUNDATION. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the pwgram guidelines, which are actually incurred during the program period, for events and activities taking place within the pwgram period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. Co) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the FOUNDATION for any contractual obligations of tho FOUNDATION undertaken by the FOUNDATION in satisfactory performance of those activities specified in ~2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the FOUNDATION or to assume the performance of any contractual obligations of the FOUNDATION for or under any contract entered into by the FOUNDATION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ~4.2(a), the FOUNDATION will provide the CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. ff formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. The FOUNDATION will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the Festival Foundation HOT Fun _a.~,g CY2004 - Page FOUNDATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically texminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the FOUNDATION; Co) The insolvency of the FOUNDATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the FOUNDATION for the beaefit of creditors; (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the FOUNDATION for more than thirty (30) days alter written notice of such breach is given to the breaching party by the other part~, or (d) The failure of the FOUNDATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial dctcnnination, either party shall have thc right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning thc activities of thc non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, FOUNDATION agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 8.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the FOUNDATION with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the FOUNDATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the FOUNDATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to T~x. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The FOUNDATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The FOUNDATION shall have exclusive control of its operations and performance of services hereunder, and such pemons, entities, or organizations performing the same Festival Foundation HOT Funding CY2004 - Page 6 and the FOUNDATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The FOUNDATION shall not be considered a partner or joint venturer with the CITY, nor shall thc FOUNDATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE FOUNDATION AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR iNJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISiNG OUT OF OR iN CONNECTION WITH THE PERFORMANCE BY THE FOUNDATION OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, iNCLUDiNG ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, iN WHOLE OR IN PART, IJPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF FOUNDATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. The FOUNDATION shall not assign this Agreement without first obtaining the written consent of thc CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY FOUNDATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Denton Festival Foundation, Inc. Carol Short Festival Coordinator P.O. Box 2104 Denton, Texas 76202-2104 5.6 Inurement. This Agreement and each provision hereof~ and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the FOUNDATION and their respective successors and assigns. 5.7 Application of Laws. All tem~, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial detelllainstions relative thel'eto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreeing'hr, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. Festival Foundation HOT Funding CY2004 - Page 7 $.9 Duplkate Orl~msls. This Agreemmt is exoouted in duplicate ofighuds. 5.10 HeadlinEs. The headings and subheadings of tho various sections and paragraphs of this Agre~mmt are in,sorted merely for the purpose of convmi~ce and do not expross or imply any limitation, definition, or c~sion of the specifi~ terms of the section nnd paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, ~, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect tho validity of tlm romaining portions of this Agreement, and the parties hereby declnre ihey would have erected such remaining portions despite nny such invalidity, $.12 Insurance. The FOUNDATION shall provide insurance as follows: $500,000 Commercial Cumeral Liability, or $1,000,000 Event Insurance, covering all events t~king place on City-owned property Statutory Workers' Compensation and Bmployers' Liability (Si O0,O00/SSO0,O00/$ ~ 00,000) The CITY must be named as an addifionsl insured on all policies (~xcept Worke~' Compensation) and proof of coverage shall be submitted prior to any payment by tho CITY. EXECqJTED thi~ ~ day o£ ,2003. THE CITY OF DENTON, TEXAS By; BROCK, MAYOR ATTEST: By: JENNIFER WALI'BP, S, CITY SECRETARY DENTON FF.,S~ FOUNDATION, iNC. Festival Fo~__~_a.~on HOT Fundi~ CY2003 - Page ATTEST: APPROVED AS TO LEGAL FORM: By: Secretary Festival Foundation HOT Funding CY2004 - Page 9 Denton Festival Foundation Arts and Jazz Festival Program Year 2004 Exhibit A Advertising Brochures Magazines Newspapers Tabloid Commercials Total Advertising 7,500 4,000 11,000 6,000 6,500 $ 35,000 Art Musicians / Stage & Equipment Total Art $ 20,000 $ 20,000 Total Festival Budget $ 55,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Greater Denton Arts Council for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $104,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE GREATER DENTON ARTS COLrNCIL FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Greater Denton Arts Council for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: S~Om' LX, cunmnl.s\Ordin~mces',,03~ltO V/GDAC (>rc~ d,x: f/ AGREEMENT BETWEEN THE CITY OF DENTON AND THE GREATER DENTON ARTS COUNCIL (CY- 2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Greater Denton Arts Council, a non-profit corporation incorporated under the laws of the State of Texas (the "GDAC"): WHEREAS, T~x. TAX CODE §351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the city of Denton of seven pement (7%); and WHEREAS, TEX. TAX CODE §351.101 (a) authorizes CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or reg/strants to the municipality or its vicinity; and WHEREAS, GDAC is well equipped to p~form those activities; and WHEREAS, T~x. TAX CODE §351.101(C) authorizes CITY to delegate by contract with GDAC; as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and GDAC agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be pm'formed by GDAC under this Agreement, CITY agrees to pay to GDAC a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to GDAC sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanings: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code §351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. Page 1 (ii) The term "Collection period" will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (i/i) The term "base payment mount" shall mean a net mount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the reguIar employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incun'ed in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31st, June 30th, September 30th, and December 31st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to GDAC an mount of money in each contract year equal to the lesser amount of Twelve and Ninety Four One Hundredths percent (i 2.94%) of the annual base payment amount or the fixed contract amount of One Hundred Four Thousand Dollars ($104,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of I2.94 % of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by CITY to GDAC of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the Iast day of the contract quarter. If the quarterly financial report is not received within thirty (30) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. Page 2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of GDAC. (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that GDAC's expenditures deviate materially from their approved budget. H. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to GDAC of the agreed payments of hotel tax funds specified above, GDAC agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; by the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and cra~ arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms and the acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information center, or both as authorized by TEX. TAX CODE §351.101 Funds for any calendar year which are unused by midnight December 31 st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received fi.om CITY by GDAC may be spent for day-to-day operations, office supplies, salaries, travel expenses and other administrative costs allowed by TEX. TAX CODE §351.101 (f), only if they are directly attributable to work on programs which promote tourism and the hotel and convention industry, and which also promote at least one of the six statutory purposes enumerated within T~x. TAX CODE §351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) GDAC agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TI~x. TAX CODE §351.101 (f) and §351.108 (c) and (d). GDAC shall not utilize hotel tax funds for any expenditure, which has not been specifically documented to satisfy the purposes set forth in ¶¶2.1 and 2.2 above. Co) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. Page 3 m. RECORDKEEHNG AND REPORTING REQUIREMENTS 3.1 Budget. (a) GDAC shall prepare and submit to the City Manager of CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of GDAC in which the hotel tax funds shall be used by GDAC. This budget shall specifically identify proposed expenditures of hotel tax funds by GDAC. In other words, CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. CITY shall not pay to GDAC any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure &funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. (b) GDAC acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in GDAC with respect to the hotel tax funds paid by CITY to GDAC under this Agreement. GDAC shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEx. TAX COOE §351.101(a) and in the budget as approved by CITY. 3.2 Separate Accounts. GDAC shall maintain any hotel tax funds paid to GDAC by C1TY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. GDAC shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by GDAC. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. GDAC understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, T~x. Gov"r CooE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every contract quarter, GDAC shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEX. T^x COD~. §351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). GDAC shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. GDAC shall respond promptly to any request fi'om the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. GDAC shall give the City Manager of CITY reasonable advance written notice of the time and place of all meetings of GDAC's Board of Directors, Page 4 as well as any other meeting of any constituency of GDAC at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require GDAC to give notice of any executive session of the Executive Committee of GDAC. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January i, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. Co) In the event this contract is terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse GDAC for any contractual obligations of GDAC undertaken by GDAC in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse GDAC or to assme the performance of any contractual obligations of GDAC for or under any contract entered into by GDAC as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), GDAC will provide CITY: 1) Within 10 business days from the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by CITY; 3) Within 5 business days of a request from CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of all expenditures and tax funds on the day of termination. GDAC will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by GDAC after notification of termination is Page 5 conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of GDAC; Co) The insolvency of GDAC, the filing cfa petition in bankruptcy, either voluntarily or involuntarily, or an assignment by GDAC for the benefit of creditors; (c) The continuation ofabreach of any of the terms or conditions of this Agreement by either CiTY or GDAC for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d) The failure of GDAC to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, GDAC agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by GDAC with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that GDAC enters into any an'angement, contractual or otherwise, with such other entity, person or organization, GDAC shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX COVE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. GDAC shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of CITY. GDAC shall have exclusive control of its operations and performance Page 6 of services hereunder, and such persons, entities, or organizations performing the same and GDAC shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. GDAC shall not be considered a partner or joint venture with CITY, nor shall GDAC be considered nor in any manner hold itself out as an agent or official representative of CITY. 5.3 Indemnification. GDAC AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY GDAC OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF GDAC, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. GDAC shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY GDAC City of Denton 215 E. McKinney Denton, TX 76201 Greater Denton Arts Council Herbert Holl Executive Director 207 South Bell Denton, Texas 76201 5.6 Inurement. This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of CITY and GDAC and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and alt judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, Page 7 relating to thc subj~t matter of this Agreement, which are not fully express~ h~in. Tho t~ns and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the tenm and conditions of any other document relating to this transaction or these transactions. $.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted rna'ely for the purpose of convenienc~ and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. ff any section, subsection, paragraph, sentence, clm~se, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of tho remaining portions of this Agreement, and tho parti~ hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. GDAC shall, at a minimum, provide insurance as follows: $500,000 Comm~'cial General Liability Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000) $500,000 Business Automobile Liability on any owned, non-owned or 1%ired vehicles CITY must be named as an additional/nsured on all policies (except Workers' Compensation) and proof of coverage shall bo submitted pr/or to any payment by CITY. t~XECUTED this __ day of ,2003. THE CITY OF DENTON, TEXAS By: EULINE BROCK, IVIAYOR ATTEST: By: Pa~e 8 CITY SECRETARY CITY ATTORNEY GREATER DENTON ARTS COUNCIL ATTEST: By: President [ APPROVED AS TO LEGAL FORM: Secretary F:~MM~'kLOLKhlt Docunm~mlm~02~HOT~GDAC. doc By: Page 9 Greater Denton Arts Council Program Year 2004 Exhibit A Advertising Co-ops with Convention and Visitor Bureau Direct Promotion Website Salary Total Advertising 6,000 5,000 10,000 $ 2t,000 Art Exhibitions and Programs Administration Salary Exhibition and Program Salary Office Supplies Total Art 10,000 35,000 30,000 8,000 $ 83,000 Total GDAC Budget $ 104,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $4,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO, AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON HOLIDAY FESTIVAL ASSOCIATION, INC. FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the Denton Holiday Festival Association, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the dayof ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LE~ HERBEX'_ ~CITy .ATTORNEY) S:\Our Documents\Ordinances\03\HOT',holiday festival ord. DOC AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON HOLIDAY FESTIVAL ASSOCIATION, INC. (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Holiday Festival Association, Inc., a legal entity incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, T~x. TAx COD~. §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, Tax. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the ASSOCIATION is well equipped to perform those activities; and WHEREAS, Tax. TAX CODE §351.101(C) authorizes the CITY to delegate by contract with the ASSOCIATION, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the ASSOCIATION under this Agreement, the CITY agrees to pay to the ASSOCIATION a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the ASSOCIATION sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) meanings: As used in this Agreement, the following terms shall have the following specific (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code 351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attorney and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax fi~om taxpayers; and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this A~eement is in force. Contract quarters will end on March 31~t, June 3ffh, September 30m, and December 31st of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to ASSOCIATION an mount of money in each contract year equal to the lesser amount of Fifty One Hundredths percent (.50%) of the annual base payment amount or the fixed contract amount of Four Thousand Dollars ($4,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of .50% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "payments" shall mean payments by the CiTY to the ASSOCIATION of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upon receipt of the required reports and after the 25th day following the last day of the contract quarter. If the quarterly financial report is not received within thirty 00) days of the end of the applicable contract quarter, the recipient may be held in breach of this Agreement. The CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the ASSOCIATION. Holiday Festival HOT Funding CY 2004 - Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. H. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the ASSOCIATION of the agreed payments of hotel tax funds specified above, the ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; as authorized by 'lex. T^x CODE §351,101 (a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within sixty (60) days. 2.2 Administrative Costs. The hotel tax funds received fi:om the CITY by the ASSOCIATION may be spent for day-to-day operations, office supplies, salaries, travel expenses, and other administrative costs allowed by TEX. TAX CODE 351.101(0, and only if they are direetly attributable to work on programs which promote tourism and the hotel and convention industry, and which also promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE 351.101(a). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the ASSOCIATION for which hotel tax funds may be used shall not exceed that portion of the ASSOCIATION's administrative costs actually incurred in conducting the activities specified in ¶2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. m. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The ASSOCIATION shall prepare and submit to the City Manager of the CITY an annual budget (see Exhibit "A") as approved by the City Council for each calendar year, for such operations of the ASSOCIATION in which the hotel tax funds shall be used by the ASSOCIATION. This budget shall specifically identify proposed expenditures of hotel tax funds by the ASSOCIATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the ASSOCIATION any hotel tax revenues as set forth in Section I of this contract daring any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an Holiday Festival HOT Funding CY 2004 - Page 3 annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. Co) The ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the ASSOCIATION with respect to the hotel tax funds paid by the CITY to the ASSOCIATION under this Agreement. The ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, T~x. Tax COD~ §351.101(a) and in the budget as approved by the CITY. 3.2 Separate Accounts. The ASSOCIATION shall maintain any hotel tax funds paid to the ASSOCIATION by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax funds. 3.3 Financial Records. The ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the ASSOCIATION. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonable advance written request of the Denton City Council, the City Manager or designate, or any other person, shall make such financial records available for inspection and review by the party making the request. ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOV'T COD~., ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of hotel tax funds, and within thirty days after the end of every quarter thereafter, until all funds have been expended and reported to the CITY, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of the invoices or receipts made with regard to hotel tax funds pursuant to TEx. T^x COD£ §351.101(c), and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). Both the financial and expenditure reports will be in a form either determined or approved by the City Manager or designate. The ASSOCIATION shall respond promptly to any request l~om the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The ASSOCIATION shall give the City Manager or its designate of the CITY reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of the ASSOCIATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the ASSOCIATION to give notice of any executive session of the Executive Committee of the ASSOCIATION. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the Holiday Festival HOT Funding CY 2004 - Page 4 program period, for events and activities taking place within the program period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the Agreement. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. Co) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the ASSOCIATION for any contractual obligations of the ASSOCIATION undertaken by the ASSOCIATION in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2. I and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the ASSOCIATION or to assume the performance of any contractual obligations of the ASSOCIATION for or under any contract entered into by the ASSOCIATION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the ASSOCIATION will provide the CITY: 1) Within 10 business days fi.om the termination notification, a short-term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be pres.ented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of alt expenditures and tax funds on the day of termination. The ASSOCIATION will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: (a) The termination of the legal existence of the ASSOCIATION; (b) The insolvency of the ASSOCIATION, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by the ASSOCIATION for the benefit of creditors; Holiday Festival HOT Funding CY 2004 - Page 5 (c) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breacking party by the other party; or (d) The failure of the ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the begS-ming of the next contract term, or quarterly as required by Section 1.3 hereof. 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to '~14.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by the ASSOCIATION with another private entity, person, or organization for the performance of those services described in ¶2.1 above. In the event that the ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the ASSOCIATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. The ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The ASSOCIATION shall not be considered a partner or joint venturer with the CITY, nor shall the ASSOCIATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE ASSOCIATiON AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE ASSOCIATION OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTiTUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF Holiday Festival HOT Funding CY 2004 - Page 6 NEGLIGENT OR INTENTIONAL ACTS OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES. 5.4 Assignment. The ASSOCIATION shall not assign this Agreement without first obtaining the written coment of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY ASSOCIATION City Manager City of Denton 215 E. McKinney Denton, TX 76201 Bob Moses Denton Holiday Festival Foundation, Inc. P.O. Box 2765 Denton, Texas 76202-2765 5.6 Inurement. This Agreement and each provision hereof, and each and every fight, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the ASSOCIATION and their respective successors and assigns. 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. if any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. Holiday Festival HOT Funding CY 2004 - Page 7 EXECUTED this ,2003. THE CITY OF DENTON, TEXAS By: EULINE BROCK MAYOR ATTBST: By: YI~INIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ASsoct rtoN, ATTEST: C~ircctor' - APPROVED AS TO LEGAL FORM: By: Hohday Festival HOT Funding CY 2003 - Page 8 Denton Holiday Festival Association, Inc Holiday Lighting Festival Program Year 2004 Exhibit A Advertising Newspapers and Magazines $ 4,000 Total Budget $ 4,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and the North Texas State Fair for the payment and use of hotel tax revenue; and providing an effective date. BACKGROUND This agency is recommended to receive funding from the Hotel Occupancy Tax funds. This contract is for a term beginning January 1, 2004, through midnight January 31, 2005. Allocations are dependent upon requests for funding as well as availability of revenues. PRIOR ACTION/REVIEW The Hotel Occupancy Tax Committee reviewed all budget applications and allocations to the Council during the Council Work Session on August 7, 2003. recommended FISCAL INFORMATION The Hotel Occupancy Tax allocation for this agency is $67,000 for FY 2003-2004 and has been included in the Annual Program of Services. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE NORTH TEXAS STATE FAIR ASSOCIATION FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor is hereby authorized to execute an agreement between the City of Denton and the North Texas State Fair Association for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: API:~ROVEI) AS FO [~EGA[. I:;'ORM:: t'l [~RB[!RT ~ AGREEMENT BETWEEN THE CITY OF DENTON AND THE NORTH TEXAS STATE FAIR ASSOCIATION (CY2004) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the North Texas State Fair Association, a non-profit corporation incorporated under the laws of the State of Texas (the "ASSOCIATION"): WHEREAS, 'lEx. TAX CODE §351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE §351.101(a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and WHEREAS, the ASSOCIATION is well equipped to perform those activities; and WHEREAS, T~x. TAX CODE §351.101(c) authorizes the CITY to delegate by contract with the ASSOCIATION, as an independent entity, the management and supe~Asion of progran~ and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the ASSOCIATION agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by the ASSOCIATION under this Agreement, the CITY agrees to pay to the ASSOCIATION a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the ASSOCIATION sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 Amount of Payments. (a) As used in this Agreement, the following terms shall have the following specific meanings: (i) The term "hotel tax revenue" shall mean the gross monies collected and received by the City as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Page 1 Code §351.002 and City Ordinance..Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term "Collection period" will mean the collection period for the CITY's fiscal year. It will include hotel tax revenue due to the City for the relevant fiscal year and collected through the 22nd day of the month following tho close of the relevant fiscal year. (iii) The term "base payment amount" shall mean a net amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter), less (1) attomey and auditing costs incurred during such relevant period of time for costs of collection or auditing of hotel taxpayers. Attorney and auditing costs include fees paid to attorneys or agents not in the regular employ of the CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers; and (2) court costs and other expenses incurred in litigation against or audi~g of such taxpayers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Conu'act quarters will end on March 3 I~, June 30*, September 30*, and December 31st of each contract year. Co) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, the CITY shall pay to ASSOCIATION an amount of money in each contract year equal to the lesser amount of Eight and Thirty Four One Hundredths percent (8.34%) of the annual base payment amount or the fixed contract amount of Sixty Seven Thousand Dollars ($67,000). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless the CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 8.34% of the base payment amount, whichever is less. Each quarterly payment is subject to receipt of unused funds from the prior contract period and the receipt of the required quarterly reports. 1.3 Dates of Payments. (a) The term "quarterly payments" shall mean payments by the CITY to the ASSOCIATION of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. Co) Bach quarterly payment shall be paid upon receipt of the required reports and aRer thc 25t~ day following the last day of the contract quarter, ff the quarterly financial report is not received within thirty (30) days of the end of the applicablc contract quarter, thc recipient may be hcld in breach of this Agreement The CITY may withhold thc quarterly payment(s) until the appropriate reports are received and approved, which approval shall not unreasonably be withheld. Pag¢2 1.4 Other limitations regarding consideration. (a) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the ASSOCIATION. Co) It is expressly understood that this contract in no way obligates the General Fund or any other monies or er~ts of thc CITY. (c) CITY may withhold further allocations if CITY determines that ASSOCIATION's expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by the CITY to the ASSOCIATION of the agreed payments of hotel tax funds specified above, the ASSOCIATION agrees to use such hotel tax funds only for advertising and conducting solicitations and pwmotional pwgrams to attract tourists and convention delegates or registrants to the municipality or its vicinity, as authorized by T~x. TAX CODE §351.101(a). Funds for any calendar year which are unused by midnight December 31~t of that year shall be refunded to CITY within sixty (60) days. 2.2 Specific Restrictions on Use of Funds. (a) ASSOCIATION agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by T~x. TAX CODE §351.101(f) and §351.108 (c) and (d). ASSOCIATION shall not utilize hotel tax funds for any expenditure, which has not been specifically documented to satisfy thc purposes set forth in ~2.1 and 2.2 above. Co) Hotel tax funds may not be spent for travel for a person to attend an ev~t or conduct an activity the primary purpose of which is not directly related to the promotion of local tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. IH. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) The ASSOCIATION shall pr~are and .submit to the City Manager of the CITY an annual budget (sec Exhibit "A") as approved by the City Council for each calendar year, for such operations of the ASSOCIATION in which the hotel tax funds shall be used by the ASSOCIATION. This budget shall specifically identify proposed expenditures 'of hotel tax funds by the ASSOCIATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the ASSOCIATION any hotel tax revenues as set forth in Section I of this contract during any fiscal year of this Agreement unless a budget Pnse~ for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds. Failure to submit an annual budget may be considered a breach of contract, and if not remedied is considered grounds for termination of this Agreement as stated in paragraph 4.2. Co) The ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the ASSOCIATION with respect to the hotel tax funds paid by the CITY to the ASSOCIATION under this Agreement. The ASSOCIATION shall expend hotel tax funds only in the manner and for the purposes specified in this Agreement, TEX. TAX CODE §351.101(a) and in the budget as approved by the crI"L 3.2 Separate Accounts. The ASSOCIATION shall maintain any hotel tax funds paid to the ASSOCIATION by the CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the source of expenditures of tax 33 Financial Records. The ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the ASSOCIATION. These fimds are required to be classified as restricted funds for audited fmaucial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney's fees. Upon reasonably advance written request of the Denton City Council, the City Manager or designate, or any other pgmon, shall make such financial records available for inspection and review by the party making the request.' ASSOCIATION understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. GOV'T CODE, ch. $$2, as hemafl~ amended. 3.4 Quarterly Reports. After initial receipt of hotel tax fund, and within thirty days after the end of every contract quarter, ASSOCIATION shall furnish to CITY: (1) a completed financial report, (2) a list of the expenditures or copies of invoices or receipts made with regard to hotel tax funds pursuant to TEx. TAX CODE §351.101(c), and (3) a copy of all financial rocor& (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). ASSOCIATION shall prepare and deliver all reports in a form and manner approved by the City Manager or designate. The ASSOCIATION ~hall respond promptly to any request from the City Manager of the CITY, or designate, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The ASSOCIATION shall give the City Manager of the CITY reasonable advance written notice of the time and place of all meetings of ASSOCIATION's Board of Directors, as well as any other meeting of any constituency of the ASSOCIATIONat which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the ASSOCIATION to give notice of any executive session of the Executive Committee of the ASSOCIATION. Page4 IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January I, 2004 and terminate at midnight on January 31, 2005. However, the program period shall commence on January 1, 2004 and terminate at midnight on December 31, 2004. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guideline, which are actually/neurred during the pwgram period, for events and activities taking place within the pwgram period, are eligible for funding under this agreement, and any ineligible expenditures or unspent funds shall be forfeited to CITY upon termination of the ~~tlt. 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or withom cause, by giving the other party sixty (60) days advance written notice. C°) In the event this contract is terminated by either party pursuant to Section 4.2(a), the CITY agrees to reimburse the ASSOCIATION for any contractual obligations of the ASSOCIATION undertaken by the ASSOCIATION in satisfactory performance of those activities specified in ~2.1 and 2.2 above and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any pwvision hereof to the contrary, the obligation of the CITY to reimburse the ASSOCIATION or to assume the performance of any contractual obligations of the ASSOCIATION for or under any contract entered into by the ASSOCIATION as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to ¶4.2(a), the ASSOCIATION will provide the CITY: 1) Within 10 business days from the termination notification, a short- term budget of probable expenditures for the remaining 60 day period between termination notification and contract termination. This budget will be presented to Council for approval within 10 business days after receipt by CITY. If formal approval is not given within 10 business days and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) Within 30 days, a full accounting of all expenditures not previously audited by the City; 3) Within 5 business days of a request from the CITY, a listing of expenditures that have occurred since the last required reporting period; 4) a final accounting of ali expendimrea and tax funds on the day of termination. The ASSOCIATION will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by the ASSOCIATION after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the ocamenco of any of the following events: (a) The termination of thc legal existence of the ASSOCIATION; Co) The insolvency of the ASSOCIATION, the filing of a petition/n bankruptcy, either voluntarily or involuntarily, or an assignment by the ASSOCIATION for the benefit ofereditor~; (e) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the ASSOCIATION for more than thirty (30) days at~er written notice of such breach is given to the breaching party by the other partT, or (d) The failure of the ASSOCIATION to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by Section 1.3 hereof, 4.4 Right to Immediate Termination Upon Litigation. Notwithstanding any other pwvision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the tenninal/ng party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ~4.3 or 4.4, ASSOCIATION agrees to refund any and all unused funds, or funds determined by the CITY to have been used improperly, within 30 days after termination of this Agreement. V. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to pwhibit, the agreement by the ASSOCIATION with another private entity, person, or organization for the performance of those s~ic~ de~,xibed in ¶2.1 above. In the event that the ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the ASSOCIATION shall cause such other ~ntity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEx. TAX CODE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of tho agreed payments and hotel tax funds. $.2 independent Contractor. The ASSOCIATION shall opiate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employ~ oftbe CITY. The ASSOCIATION shall have exclusive control of its operations and performance of senficos hereunder, and such persons, entities, or organizations performing the same and the ASSOCIATION shall be solely responsible for Page6 the acts and omissions of its directors, officers, employees, agents, and subcontractors. The ASSOCIATION shall not be considered a partner or joint venturer with the CITY, nor shall the ASSOCIATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 5.3 Indemnification. THE ASSOCIATION AGREES TO INDEMNIFY, HOLD HARMLES~ AND DEFEND THE CITY, ITS O~'ICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURH~S, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY THE ASSOCIATION OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF ASSOCIATION, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEESo 5.4 Assignment. The ASSOCIATION shall not assign this Agrecrnent without first obtaining the written consent of the CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: City of Denton 21 $ E. McKinney Denton, TX 76201 North Texas State Fair Association Ken Burdick Executive Director P.O. Box 1695 Denton, Texas 76202 5.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the ASSOCIATION and their respective successors and 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains thc entire understanding and constitutes the entire agreement between thc parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or Page7 undel~md/~s, oral or written, express or implied, between or amc~ the parties hereto, relating to the subject m_~..~ of this A/~meat, which are not fully expressed here/n. The terms and conditions of this A/reem~ shall prevsl notwithstanding any variance in this Agreem~t fi~m the terms and conditions of any other document relating to this transaction $.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headin/s and s~ of the various sections and ~ of this A~reeme~t are inserted merely for the purpose of convenicmce and do not express or imply any limitation, definition, or ext~sion of ~ specific terms of the section and parssraph so designated. fi. ll Severability. If any section, subsection, ~b, sentence, clau~, phrase or word in this Agreement, or application thereof to any person or circumstance is held inval/d by any court of co .ml~umt jurisdiction, such holding shall not affect the validity of the remain/n8 po~ons of this Agreement, and the parties hereby declare they would have ~.12 Insurance. The ASSOCIATION shall, at a minimum, provide insurance as follows: $500,000 Commercial C..~l~ral Liability Statutory Work, rs' Compemmtion and Employes' Liability ($100,000/$$00,000/$100,000) $500,000 Busines~ Automobile Liability on any owned, non-owned or hired vehicles The CITY mus~ be named as an adgifional imur~ on all polides (except Comp~usation) and proof of covera~ shall be submitted prior m any payment by the CITY. ,2003. THE CITY OF DENTON, TEXAS BROCK, MAYOR ATTEST: ~ WALTERS, CITY gN~CR~I'ARY NORTH TEXAS STATE FAIR. ASSOCIATION APPROVED AS TO LEGAL FORM: By: Page9 North Texas State Fair and Rodeo Assocation, Inc. North Texas State Fair and Rodeo Program Year 2004 Exhibit A Advertising Intemet Radio Newspaper Billboard Printin~l $ 6,000 27,000 20,000 10,000 4,OOO Total Budget $ 67,000 AGENDA INFORMATION SHEET AGENDA DATE: September 2, 2003 DEPARTMENT: CM/DCM/ACM: Police/Fire Jon Fortune, Assistant City Manager SUBJECT An Ordinance of the City of DeNon, Texas, amending Ordinance No. 2002-227 prescribing the number of positions in each classification of Police Officer; prescribing the number of positions in each classification of fire fighter; providing a savings clause; providing a severability clause; and declaring an effective date. BACKGROUND The Police Department applied for a Special Traffic Enforcement Program grant through the Department of Transportation that included the addition of one police officer to be dedicated to traffic enforcement. The Department was awarded the grant and the supplememal funding request for the officer salaries and benefits and associated equipmem and training was approved by the City Council in the 2002-2003 budget process. This ordinance increases the number of police officers by one (1) position, for a total of 137 sworn officers. Additionally, the City Council authorized one (1) additional Fire Battalion Chief during the 2002-2003 budget process to be assigned as the Fire Departmem's Training Chief. The position was scheduled to be implememed in September 2003. This ordinance increases the total number of authorized Fire Department Civil Service positions from 131 to 132. PRIOR ACTION/REVIEW: Both positions were approved by the City Council to be filled during the 2002-2003 fiscal year. The proposed changes in the classification of police officer has been reviewed and approved by the Civil Service Commission. FISCAL IMPACT The allocation of funds for these two positions was approved by the City Council in the 2002-03 budget and cominued funding is included in the proposed 2003-04 budget. Respectfully submitted, Joanie Housewright Captain Support Services Division Ross Chadwick Fire Chief Fire Department ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE NO. 2002-227 PRESCRIBING THE NUMBER OF POSITIONS IN EACH CLASSIFICATION OF POLICE OFFICER; PRESCRIBING THE NUMBER OF POSITIONS IN EACH CLASSIFICATION OF FIRE FIGHTER; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on July 23, 2002, the City Council passed Ordinance No. 2002-227 to implemem the recommendation of the Firefighters' and Police Officers' Civil Service Commission of the City of Denton, Texas, upon the recommendation and request of the Director of Civil Service, Denton Police Department and Denton Fire Department, adopting and approving a schedule of Authorized Positions which relates to compensation and classification of police officers and fire fighters; and WHEREAS, since the passage of Ordinance No. 2002-227, the Police Department has determined that this ordinance needs to be amended to more correctly reflect the total number of Police Departmem positions: adds one police officer (and Recruits) positions; and WHEREAS, since the passage of Ordinance No. 2002-227, the Fire Department has determined that this ordinance needs to be amended to more correctly reflect the total number of Fire Department positions: adds one Battalion Chief-Operations position; and NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Ordinance 2002-227 is hereby amended by adopting the schedule prescribing the number of positions for each classification of police officer and fire fighter in the City of Demon, attached hereto and incorporated by reference herein as Exhibit A, is hereby approved. SECTION 2. That Ordinance 2002-227 and all prior ordinances or resolutions of the City of Denton, Texas, in conflict herewith are repealed to the extent of any such conflict. S:\Our Documents\Ordinances\03\Position Ordinance 2003 Draft.doc SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 2 S:\Our Documents\Ordinances\03\Position Ordinance 2003 Draft.doc EXHIBIT A CITY OF DENTON SCHEDULE OF AUTHORIZED POSITIONS POLICE DEPARTMENT The Police Department is authorized 137 positions as follows: Chief of Police Captain Lieutenant Sergeant Police Officer (and Recruits) TOTAL 1 3 7 15 111 137 FIRE DEPARTMENT The Fire Department is authorized 132 positions as follows: Fire Chief Division Chief Battalion Chief-Operations Battalion Chief-EMS Manager Battalion Chief-Info Services Manager Captain Captain-Logistics Maintenance Officer Driver Fire Fighter (and Recruits) TOTAL 1 1 4 1 1 21 1 36 66 132 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Management and Budget Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance adopting the budget and first year of the Capital Improvemem Plan of the City of Demon, Texas for the fiscal year beginning October 1, 2003, and ending September 30, 2004; and declaring an effective date. BACKGROUND Please find attached an ordinance to adopt the 2003-2004 Budget as directed by City Council. The City Council received the 2003-2004 Proposed Budget on July 31, 2003. Budget workshop was held August 7, 2003. Finally, the Public Hearing on the 2003-2004 Proposed Budget was conducted on August 19, 2003. The tax rate used to balance the General Fund budget is $.54815 per $100 valuation. FISCAL INFORMATION The total 2003-2004 budget is listed below: General Fund Electric Fund Water Fund Wastewater Fund Solid Waste Fund Technology Services Fund Materials Management Fund Motor Pool Fund Fleet Services Fund Recreation Fund Tourist & Convention Fund Emily Fowler Library Fund Police Confiscation Fund General Debt Service Fund $ 64,179,252 166,033,700 33,119,183 22,235,351 13,479,108 6,806,927 10,232,916 4,334,289 4,112,407 3,263,220 803,749 112,000 62,000 10,424,589 $339,198,691 Respectfully submitted: Anna Mosqueda, Director Management and Budget ORDINANCE NO. AN ORDINANCE ADOPTING THE BUDGET AND THE FIRST YEAR OF THE CAPITAL IMPROVEMENT PLAN OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2003, AND ENDING ON SEPTEMBER 30, 2004; AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the budget for the City of Denton, Texas, for the fiscal year 2003-2004 was heretofore published at least ten days in advance of said public hearing; and WHEREAS, a public hearing on the said budget was duly held on August 19, 2003, and all interested persons were given an opportunity to be heard for or against any item thereof; NOW, THEREFORE, WHEREAS, on 21st day of July the Public Utilities Board recommended the utility operations budgets and capital improvements to be constructed during the coming year, and WHEREAS, the City Manager has furnished a copy of the Planning and Zoning Commission's recommended general obligation bond capital improvements to each member of the City Council more than sixty days prior to the beginning of the budget year, as provided by Section 10.03(6) of the City Charter; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The budget for the City of Denton, Texas for the fiscal year beginning on October 1, 2003, and ending on September 30, 2004 prepared by the City Manager and filed with the City Secretary, as amended by the City Council, is hereby approved and adopted, a copy of which budget is attached hereto and incorporated by reference herein. SECTION 3. The City Council hereby appropriates from available resources to the following funds: General Fund Electric Fund Water Fund Wastewater Fund Solid Waste Fund Technology Services Fund Materials Management Fund Motor Pool Fund Fleet Services Fund Recreation Fund Tourist & Convention Fund Emily Fowler Library Fund $64,179,252 166,033,700 33,119,183 22,235,351 13,479,108 6,806,927 10,232,916 4,334,289 4,112,407 3,263,220 803,749 112,000 Police Confiscation Fund General Debt Service Fund 62,000 10,424,589 Total $339,198,691 SECTION 4. The City Council approves the first year of the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2003-04 budget. SECTION 5. The budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2003-2004 budget as determined by the City Manager or his designee. SECTION 6. The City Manager, or his designee, is hereby authorized to transfer the amounts of money for employee benefit and salary adjustments as contained in the 2003-2004 budget to the various departments. SECTION 7. The City Manager, or his designee, shall cause copies of the budget to be filed with the City Secretary and County Clerk of Denton County. SECTION 8. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ., 2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: S:Our Documelt~Ordhlmlce~03 Budget 2003 O40rdinmlce doc PAGE 2 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 2, 2003 Fiscal Operations, Tax Department Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance levying the ad valorem tax of the City of Demon, Texas, for the year 2003, on all taxable property within the corporate limits of the city on January 1, 2003, not exempt by law; providing revenues for payment of current municipal expenses, and for imerest and sinking fund on outstanding City of Demon bonds; providing for limited exemptions of certain homesteads; providing for enforcemem of collections; providing for a severability clause; and providing an effective date. BACKGROUND Please find attached an ordinance to adopt the ad valorem tax rate for 2003. The proposed rate of $.54815 per $100 valuation is used to balance the 2003-04 budget. PRIOR ACTION/REVIEW A public hearing on this tax rate was held during the City Council meeting of August 19, 2003. The proposed tax rate is included in the proposed 2003-04 Annual Program of Services. FISCAL INFORMATION The proposed property tax rate should generate $22,157,335 of which $14,119,112 is budgeted to support General Fund Services and $8,038,223 is budgeted for Debt Service. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE LEVYING THE AD VALOREM TAX OF THE CITY OF DENTON, TEXAS, FOR TI-IE YEAR 2003, ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 2003, NOT EXEMPT BY LAW; PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL EXPENSES, AND FOR INTEREST AND SINKING FUND ON OUTSTANDING CITY OF DENTON BONDS; PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLECTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after notice of a public heating on a tax increase was published in accordance with the law, on August 19, 2003, the City Council held a public heating on a proposal to adopt a tax rote of $0.54815 per $100 valuation which would increase total tax revenues from property on the tax roll by 3.1%; and WHEREAS, at the end of this public hear/rig, the City Council passed a resolution setting the meeting on which it would vote on the tax rate and announcing that it would vote on the tax rate at its September 2, 2003 meeting, which resolution specified the time and place of this meeting; and WHEREAS, after the public hearing and before the September 2, 2003 meeting, the City Council published a Notice of Vote on Tax Rate in accordance with the law; and WHEREAS, the City Council deems it in the public interest to adopt a tax rote for the 2003 tax year; NOW, THEREFORE, TIlE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. By authority of the Charter of the City of Denton, Texas, and the Laws of the State of Texas, there is hereby levied for the year 2003, on all taxable property situated within the corporate limits of the City of Denton on January 1, 2003, and not exempt by the Constitution and laws of the State of Texas or mtmicipal ordinance or by Sections 4, 5, and 6 of this ordinance, a tax of $0.54815 on each $100 assessed value of all taxable property. This tax is expected to increase total revenue from properties on the tax roll by 3.1% over 2002 tax revenues. SECTION 2. Of the total tax, $0.35053 of each $100 of assessed value shall be distributed to the General Fund of the City to fund maintenance and operation expenditures of the City. SECTION 3. Of the total tax, $0.19762 of each $100 of assessed value shall be distributed to pay the City's debt service as provided by Section 26.04(e)(3) of the Texas Property Tax Code. SECTION 4. Pursuant to Article VIH, Section 1-b of the Texas Constitution, and pursuant to the provisions of Section 11.13(n) of the Texas Property Tax Code, one-half percent of the assessed value of residential homesteads, or $5,000 of the assessed value of residential homesteads, wh/chever amount shall be greater, shall be exempt from City ad valorem taxes. SECTION 5. Pursuant to Article VIII, Section 1-b of the Texas Constitution, $25,000 of the assessed value of residential homesteads of persons 65 years of age or older shall be exempt fi.om City ad valorem taxes. SECTION 6. Pursuant to Article VIg, Section 1-b of the Texas Constitution, $10,000 of the assessed value of residential homesteads of disabled persons shall be exempt from City ad valorem taxes. SECTION 7. For cnfforcement of the collection of taxes hereby levied, the City of Denton shall have available all rights and remedies provided by law. SECTION 8. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or the application t. hereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 9. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ~ 2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY PAGE 2 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 2, 2003 Fiscal Operations, Tax Department Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance of the City of Demon, Texas, approving the 2003 Tax Rolls; and providing an effective date. BACKGROUND Please find attached an ordinance to approve the 2003 tax roll. The approval of the tax roll is an annual process required by the Texas Property Tax Code. The Tax Roll is calculated by taking the 2003 Certified Appraisal Roll (excluding property under protest) and applying the 2003 adopted tax rate. The anticipated collection rate is 100%. FISCAL INFORMATION The approval of the Tax Roll will enable the City to mail tax bills October 1, 2003. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE 2003 TAX ROLLS; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the 2003 tax rolls of the City of Denton, Texas which will result in a tax levy in the mount of $22,157,335 based on the Certified Appraisal Roll as approved by the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: September 2, 2003 Planning and Developmem Departmem Jon Fortune, Assistam City Manager SUBJECT - Z03-0018 (Jack Lanham Subdivision) Hold a public hearing and consider adoption of an ordinance concerning the rezoning of approximately 0.34 acre from a Neighborhood Residemial 3 (NR-3) zoning district to a Neighborhood Residemial 4 (NR-4) zoning district. The property is generally located at the southwest corner of Fain Street and Bolivar Street. The applicant proposes to subdivide the existing lot for residential use. BACKGROUND Applicam: Joe Lanham, DeNon, TX The applicam is requesting the rezoning to allow for the subdivision of the lot that is curremly 15,000 square feet. The rezoning would allow the applicam to subdivide the property imo two lots. Public notification and property owner responses are provided in Attachmem 3. As of this writing, staff has received three (3) reply forms in favor and five (5) reply forms in opposition from property owners within 200 feet of the subject site. OPTIONS 1. Approve as submitted. 2. Deny. 3. Postpone consideration. 4. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of the zoning change as proposed by the applicam (6-0)(Holt Absem). ESTIMATED PROJECT SCHEDULE The property must be replatted to subdivide the property imo two lots. PRIOR ACTION/REVIEW The following is a chronology of Z03-0018, commonly known as 2307 Bolivar Street: · Ordinance 2002-040, adopted in February 2002 placed the subject property in the Neighborhood Residential-3 (NR-3) zoning district and land use classification. · Prior to the adoption of the Development Code, the property was zoned Single-Family 7 (SF-7) which allowed for 7,000 square foot lots. · The property is platted. · No Neighborhood meeting was held. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map) 4. 200 Foot Property Owner Responses 5. Surrounding Lot Sizes 6. Applicants Letter 7. Planning and Zoning Commission Minutes from August 13, 2003 meeting. 8. Draft Ordinance Prepared by: Wes Morrison Planner I Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development ATTACHMENT 1 Staff Analysis Summary_ of Zoning Request The applicant is requesting the rezoning of approximately 0.34-acres from its current Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential 4 (NR-4) zoning district. The requested zoning change would allow the applicant to subdivide the property into two lots. Existing Condition of Property The subject property is vacant and is not in a flood plain. Adjacent zoning: North: Neighborhood Residential 3 (NR-3) zoning district - single-family South: Neighborhood Residential 3 (NR-3) zoning district - single-family East: Neighborhood Residential 3 (NR-3) zoning district - single-family West: Neighborhood Residential 4 (NR-4) zoning district - duplex Comprehensive Plan Analysis The subject site is located in an "Existing Neighborhoods/Infill Compatibility" future land use area. New development in this district should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. The surrounding neighborhood has a variety of different lot sizes and has a mixture of duplexes and single-family homes throughout the area. On the outskirts of the neighborhood are some multifamily uses. The proposed zoning change does not appear to alter the current atmosphere of the existing neighborhood and would act as appropriate infill for the neighborhood. The proposed zoning change and use is consistent with the intent of the Denton Plan. Development Review Analysis Transportation A traffic impact analysis will not be required for a single-family use or duplex use. Access and Connectivity The site can be accessed by Fain Street and Bolivar Street. If approved, the new lot would be accessed by Bolivar Street. Public Infrastructure Existing water and sewer utilities are adequate to serve an additional lot. Development Code / Zoning Analysis The charts below illustrate the difference in residential land uses and development standards between the existing and proposed zoning districts. Single Family Dwellings P P Accessory Dwelling Units SUP (L1) SUP L(1) Attached Single Family Dwellings SUP SUP Dwellings Above Businesses N N Live/Work Units N P Duplexes N L(3) Community Homes for the Disabled P P Group Homes N N Multi-Family Dwellings N N Minimum Lot Area (square feet) 10,000 7,000 Minimum Lot Width 60 feet 50 feet Minimum Lot Depth 80 feet 80 feet Minimum Front Yard Setback 15 feet L(2) 20 feet L(2) Minimum Side Yard 6 feet 6 feet Minimum Side Yard Adjacent to a Street 10 feet 10 feet Minimum Rear Yard 10 feet 10 feet Maximum Lot Coverage 50% 60% Minimum Landscaped Area 50% 40% Maximum Building Height 40 feet 40 feet Limitations: L(1): Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform to the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000sq. ft. GHFA. 4. One additional parking space shall be provided that conforms to the off-street parking provisions of this Chapter. L(2): For infill lots, the front setback shall be an average of the adjacent lots. L(3): In part of a subdivision of 2 acres or more, up to 2 units may be attached by a common wall if the lots which contain the attached structures do not abut the perimeter lot lines of a subdivision, the individual common wall traits are on separate lots designed to be sold individually, and they comply with Subchapter 13. Additionally units must have the appearance of a single-family residence from the street. The limitations listed above regulate the specifics of each use allowed within the zoning district. The major differences between the two districts is that within the NR-4 district, duplexes are permitted in subdivisions greater than 2 acres (which is not the case with this property) and the minimum lot size decreases to 7,500 square feet. Prior to the adoption of the Development Code the subject property and the surrounding area was zoned SF-7. The majority of single-family lots south of Fain are approximately 7,200 square feet in size with a density of approximately 4.4 units per acre, which is consistent with the proposed NR-4 zoning district. Any proposed development on this site is required to be in compliance with the site design standards of the Development Code. An approved site plan for the proposed development will be required prior to the issuance of any building permit. Staff Findings The proposed zoning change is compatible with the existing neighborhood and with the intent of the Denton Plan. Staff Recommendation Based on the above finding, staff recommends approval of the requested zoning change. ATTACHMENT 2 Location/Zoning Map NORTH Future Land Use Map II Note: Highlighted parcels are current duplex uses in the surrounding area. 6 ATTACHMENT 3 Notification / Opposition Map NORTH Scale: None Public Notification Date August 1,2003 200' Legal Notices* sent via Certified Mail: Number of responses to 200' Legal Notice · In Opposition: 5 · In Favor: 3 · Neutral: 0 27 Percent of land within 200' in opposition: 15+% *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 ATTACHEMENT 4 200' Responses NAME ADDRESS COMMENTS Lindsey Beth Wenrich 2320 Bolivar Opposed Iris Amyx 2306 Bolivar Opposed Iris Amyx 2230 Bolivar Opposed Iris Amyx 213 Taliaferro Opposed Iris Amyx 2319 Bolivar Opposed Lorene Hill 2312 Bolivar Not opposed to one house. Favor - Joe Lanham has been a good Gene Truss 2300 Denison neighbor. A new house/duplex would be a welcomed improvement to the neighborhood, Eugene Hupp 2303 Bolivar Favor ATTACHMENT 5 Surrounding Lot Sizes NORTH 9840 10741 10354 10662 7887 7836 7793 7759 8643 9496 8605 9780 8822 9603 9128 9349 16832 7141 7439 7666 7201 14623 39065 8500 9552 31770 15263 To whom it may concern, 7-5-03 I own a piece of property know as 2307 Bolivar St. in Denton, Texas Denton, County. Also know as Lot 1 Blk. 1 of the D.H. Fry Addition. The lot is 100 feet wide and ~50 feet long. There is a house that sets on the north 50 feet of the 100 foot width. The lot is currently zoned NR 3 requiring 10,000 foot lots. I am seeking a zoning change to NR 4 which allows for 7,000 sq.ft, lots. My divided lots would be 7,500 sq.ft. The new zoning would also allow for a duplex on each lot. Although I would like to keep this option open I will abide by any directions given by the neighborhood. I am loyal to this neighborhood and still own the house at 306 Fain which faces 2307 Bolivar from the Fain side. Home 940-387-3633 940-243-5795 Truck 940-206-0988 Than,k You, / ~ Joe L~nham Residential · Commercial · New Construction Remodel · Insurance Claims 1 2 3 4 5 6 7 8 9 10 11 12 3 14 15 16 17 18 19 2(7 21 22 23 24 25 1 2 3 4 5 6 7 8 9 1 3 4 15 16 17 18 t9 20 21 22 23 24 25 CondenseltTM Page 1 ? COMMISSIONER APPLE: The next item on our Agenda is a public hearing, and Wes Morrison with the City 2 planning slaff will present, I'll open the public 3 hearing. 4 MR. MORI.tISON: Good cvcuing. The applicant 5 is rcqucsfing to rezone approximately .34 act'cs of a site 6 on 2307 Bolivar Street. IIc's asking to rezone it fi'om a 7 Neighborhood Resldonlial 3 zouing to a Neighborhood 8 Rcsidenlial 4 7;ol!ing, The applicant is proposing to 9 subdMdo thc lot liar a rcsidential use. 10 Thc notable difl"crcnce betwccn these two 1 zoning districts is the rextuirement fei' lot area. The 2 current lot ama of tbls 2307 is approximately 1(~00 3 square l~t. If dividexl like the applicant is proposing 14 to do, it would be approximately 8,000 square feet for 5 each lot. The NR-.~ zoning district t'c,q.uims a 10000 6 square foot lot as opposed to the t,,ti-a zoning district 17 which rcquims a 7,000 square foot lot. 18 As you can see iu your backup and on the 19 screen, the majority of the [ets in tlfis are~q are '20 approximately 7,500 to 8,000. Therefore, s~aff trois lbat 2 tl:c request is consistcnt wilh the exisling nclghborhaod. 22 At this time, staff bas receivexl five 23 letters in opposition. Earlier today, you rcceived six 24 letters and lhen right before thc bcginning of tile 25 Page 18 meeting, you received a third loiter. One person revoked Page 19 words in your moutb, make sure I understand, they can now build a duplex ou each of ~hesc new lots? MR. MOI>d~,[SON: NO~ sir. ['lll $orl'y~ COMMISSIONER POWI:LL: 'riley cannot. MI{. MORRr$ON: ~f they wcrc a :we-acre subdivision, 1bey could. This is nola two-acm subdivision.' therefore, lhey cant COMMrSSrONER I>OWI:LL: SO they Call build tben, if i understand con+ectly, a single-hmily house on each of the two new lots? MR. MORR[SON: Yes, sit*. COMMISSIONER POWI..'LI,: Thank you very much. COMMISS[ONI'!P, Al'PI,U: commissioner Jolussotl. COMMISS]~ONEI~. JOHNSON: The large red block lhere lbat's shown in opposition, what is that zoned? MR. MORRISON: That iS zo~led NI?`-3. COMMISSIf-)NF.I~. JOIINSON: NR-3. okay. And tile shaded at~ immediately cast of this site, is that, who's, NI,b4? MI),. MORR[SON: Yeah, that you're lot)king at right now, yes, that's NR-< the darker. COMMISSIONER JOHNSON: So it's all NI~.-4 itl lhe midst of an NR 3. MR. MORR[SON: YeS, sir. COMMISSIONER JOIINSON: }IOW did lhat happen? Mi?`. M©RR[$ON: [ can't answer that. Page 20 their letter o£ opposition and turned lhat into a letter 2 of in favor for the request, 3 So at this time wc have five letters in 4 opposSlon, tln'ce letters in favor of the request, and 5 that is approximately about 15 percent opposition, 15 6 percent. At this time if you have any questions, I'll be 7 glad to answer those. 8 COMMISSIONER APP[,I';: Commissioner Powell. 9 COMMISSIONER POWELL: Yes, sir, Give mo 10 thc practical realities here. What am they going to 1 bui]d on it, if we know, and what am thc differences in 12 COMMISSIONEI~. JOIINSON: okay. Thunk COMMISSIONI.:,I?` AI>PLF: (..'OlllllliSSiOllOl' Roy, COMMISSIONER ROY: WOtlk[ yo[~ stay tlmt again? Wlmre is NR-4 now? MR. bIORRISON: NR-4 is the, if yon'Il look on the sct~n, thc darker yellow tlmt's immediately or, I*111 sort~, west. 1'~11 solTy. COMMISSIONER ROY: That small piccc of property there is NR-4? MR. MORR[SON: Yes. There's two lots llsat are NR-4. what they could build on it and what they will be able to 13 build on it? 14 MR, MOlt. RISeN: In tlm Code, the Code allows 15 for, as tilt as NR-3 and NR-4, if' they were a two-acre 16 subdivision, they could build a duplex. That's the main 17 dilTemnce betwcen uses, But they're nola two-acm 18 subdivision in this case so they can't do that. So that's 19 a limitation that's placed in the Code, So in all 20 actuality, what they can do and what they can't do as far 2 a~ uses really does not change. The main difference that :22 is focusing on here is the lot ama. 23 COMMISSIONER POWEIJ,: okay. So let me make 24 sure i ~.mderstand. Tl~ey can build, and I'm not putting 25 COMMISSIONEI~.ROY: okay. Tbauk you. COMMISS]:ONEP, APPLE: NO fnrthcr questions. MP,, MORRISON: 't'hank you. COMM[SS[ONI,:R APPI,E: DOCS tho applicant wish to present? MI?,. MOI~.RISON: I think MI?`. LANHAM: Good cvenlng. My flaHle is Joc Lanham and I live at 4090 Souls Road 5~ Aobrey. The man right across the strcct tba~ has the large red Mock consists of three k)ts~ IIe has one house on it. And 1 had talked 1o him and his view ,,vas hc built a house or one duplex on it. But his coucom was if [ died or went away PLANNING & ZONING COMMISSION AUGUST 13, 2003 Page 17 - Page 20 Condenselt"'~I Page 21 I tomorrow, i could sell it to somebody and build two 2 duplexes on it. And i told him, no, whether I could or 3 not, that' was not my intent. My intent was just to build 4 one house. And so I hope to clear up his 5 misunderstanding. The geutteman that reversed lnis 6 decision today is the gcntlemm~ right next lo it wldch 7 would bc just south. And that was his understanding also 8 that it could be nmlti-family. 9 So, really, thc man that has, I guess, 10 maybe tho biggest power is the red -- he owns -- yeah, the 11 big red one is actually, he owns that one, the one south 12 of it on that comer, and then tho one to the north. Come 13 over to thc Id't, the one on thc comer of Fain. Hc owns 14 those three pieces of property. 15 I own the house to thc north of the ydlow 16 block behind thc rcd rect'angle on Fain+ All I really want 17 to do is to split this lot and put in another house. 18 COMMISSIONER APPLE: Thank you. 19 Commissioner Powcll. 20 COMM[SSIONFR POWEI,I,: sir, let me make sure 21 1 understand. You have one house on this lot now? 22 MR. I,ANI-tAM: Yes. 23 COMMISSIONER POWELL: And it's situated so 24 that you could build a second one if you subdivided'? 25 MR. LANHAM: YeS, sir. 5 fi 7 9 10 11 12 13 14 15 16 7 18 19 20 21 22 23 24 25 Page 22 COMMISS[ONEP, POWELL: Thank you very much. COMMISSIONER APP1,E: COlmnissioner Mukoy. COMMISSIONER MULROY: Yes. i have a question for thc applicm~t and staff jointly. If we could show us the plan again with all thc lots on it. What is thc, to either one of your knowledge, the average size of those lots iu-m-tediately to the south and immediately to the west and south on that block'? Mit.. LANItAM: All of these used to be basically thc same size and then they were all split. COMMISSIONER MULRO¥: Okay. I guess -- eon'ecl my impression, but if we splk the lot in question, you may still either -- both halves would be slightly larger than the surrounding lots, That's my impression. Is that the same way y'aIl see it'? MI{. MORRISON: Yes, sir. COMMISSIONER MULROY: Okay, Thank you+ COMM£SSIONER APPLE: Arc: there any further questions of the applicant before he sits down? Thank you. This is a public hearing. [s there anyone in the audience who wishes to address this issue'? Seeing no one coming forward, staff, do you have any f~nal comments? i'll close/he public hearing. Commissioner Johnson. COMMISSIONER JOIlNSON: 1'll move approval of the re×cuing of this to NR-4 to allow the division of 1 2 3 4 5 6 ? 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 23 1 the 1ot into two. 2 COMMISSIONER WATKINS: second. 3 COMMISSIONEP. APPLE: COlllllliSSiOllOr Watki~ls, 4 did you second? 5 COMMiSSI. ONER WATKINS: seeotld, please. 6 COMMISSIONER APPIJ~,: Thank you. We have a 7 motion and a second 1,o approve. Any discussion? llcm'ing 8 none, vote please. Motion carries 6-0, 9 Our next Agenda item No. 10~ Mr. 10 Reichhart would like to provide some information+ 1 Mil.. REICH[-IART: t. believe in your backup 2 you lmve a memo ~bat stat~xl that thc applicant has 3 requcsl~xt thai, this il,em be continucd for two weeks to 4 have further discassions with staff'. And we do rcc~munend 15 a continuance at lhis time. 16 COMM[SS[ONEII. APPLE: We will go ahead and 17 open the public hem'ing this evening. [s there anyone 18 here who wishes to addrcss this at this tlmc? Seeing no 19 one coming forward, we would nccd a motion and a scceud in 20 order 1,o continue it. 21 COMM[SSIONEP. MUI.II.OY: [ move [o (3oP. thluo 22 this. 23 COMMISSIONEP. I'OWli[,l,; second. 24 COMMiSSIONI,;ll. APPLE: WC (to have a illotion 25 and a second to contiuue. So lhis will be continued ~o Pagc 24 our August the 27th, 2003 meeting. COMMISSIONER MUI.ROY: VOte. COMMISSIONER APPLE: Oll, yeah. ! guess we do noe, d to vote on thal. Vote, ptm~se. Motion carries 6-0. Are there any il'cms for future, l;,t~ginc.,4sf? Commissioner Powell. COMMISSIONEP, POWI£LL: Does Mr. Reichhart know when the Lakevie,,v Boulevard will be brick before us? MR. RE[C[IIIAII.'I': NO, sir. And perhaps Mt'. Salmon could give us a little bit more informutkm on thal, but 1 don't think we have a sci dale. COMMiSSiONER POWFJJ,: I was figuring [ could fiud a way to bt: en vacation or somcthing. MR. SALMON: well, maybe i shouldn't tell you so that you can'l plan on it. We're anticipating maybe lhe second mooling in September, Although thc City Council dircctcd that we gcr thc issue back to Planning and Zoning Comudssion as qnickty as possible, we don't feel that it would be fruitful 1,o bring it back without having some additional information that, frankly, we've boot: waiting on, and that's the Mayhill Road capacity study. And we've bccn told by (mr traffic consultant that ;ye should have thc results of that Mayhill PLANNING & ZONING COMMISSION AUGUST 13, 2003 Page 21 - Page 24 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM NEIGHBORHOOD RESIDENTIAL - 3 (NR-3) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL-4 (NR- 4) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY .34 ACRE OF LAND LOCATED AT THE SOUTHWEST CORNER OF FAIN STREET AND BOLIVAR STREET IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z03-0018) WHEREAS, Joe Lanham has applied for a change in zoning for approximately .34 acre of land located at the southwest comer of Fain Street and Bolivar Street and more particularly described as Lot 1, Block 1 of the D.H. Fry Addition, an addition to the City of Denton, Texas and commonly known as 2307 Bolivar Street (the "Property") from Neighborhood Residential 3 (NR-3) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning district classification and use designation; and WHEREAS, on August 13, 2003, the Planning and Zoning Commission recommended approval of the requested change in zoning; and WHEREAS, the City Council finds that the change is consistent with the Comprehensive Plan; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The zoning district classification and use designation of the Property approximately is hereby changed from Neighborhood Residential 3 (NR-3) zoning district classification and use designation to Neighborhood Residential 4 (NR-4) zoning district classification and use. SECTION 3. The City's official zoning map is amended to show the change in zoning district classification. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the ____ day of ,2003. EUL1NE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Exhibit A 2307 Bolivar Street Legal Address is as follows: Lot 1 Block 1 of the D.H. Fry Addition AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET September 2, 2003 Legal Department Dorothy Palumbo, Senior Assistant City Attomey SUBJECT: Hold a public hearing and consider adoption of an Ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling Agreement with Trio Consulting & Management Company, L.L.C. for the Hickory Creek Substation in the City of Denton, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substantially same form as the City's Standard Lease; and providing an effective date. BACKGROUND: This bid is for a non-drill site/pooling agreement for approximately 3.13 acres at the Hickory Creek Substation. Trio Consulting & Management, L.L.C. submitted the only bid for these mineral interests. The City will receive $3,013.00 bonus and a 25% royalty interest. (See Attachment A of the attached Ordinance). No drilling will be allowed on the Hickory Creek Substation and this land will be pooled and drilled off a well on adjacent property located off Hickory Creek Road at Teasley, known as the Forester lease. Please see the City Attorney Status report. OPTIONS: The City Council may adopt the ordinance and authorize staff to negotiate with the best bidder or the Council may reject ail bids and re-advertise for additional bids. RECOMMENDATION: We recommend that this bid be negotiated with the best bidder, Trio Consulting & Management, L.L.C. and that the City Manager execute the mineral lease as long as the lease is in substantially the same form as the City's Standard Lease with no alteration of the material bid terms. Respectfully submitted, Dorothy Palu~bo, Sr. AsSt. City Attorney &\Our Docnment~\Oas Welt Docamen~age~da in f~rrn~ion she,*t-Hickory Creek Sul~t ation..doc S:\Our Documents\Ordinances\03\Hickory Creek Elec Substaton Oil and Gas Lease Ordinance Best Bid.doc ORDINANCE NO. AN ORDINANCE ALLOWING THE NEGOTIATION OF THE BEST BID FOR A CONTRACT FOR AN OIL AND GAS NON-DRILL SITE/POOLING AGREEMENT AT THE HICKORY CREEK ELECTRIC SUBSTATION WITH TRIO CONSULTING & MANAGEMENT COMPANY, L.L.C. AND ALLOWING THE CITY MANAGER TO EXECUTE A LEASE AS LONG AS THE LEASE IS IN SUBSTANTIALLY THE SAME FORM AS THE CITY'S STANDARD LEASE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The City Council of the City of Demon has heretofore determined that it is advisable to lease for oil and gas purposes certain real property located at Hickory Creek Electric Substation, Denton, Texas; and WHEREAS, in compliance with Chapter 71 of the Texas Natural Resources Code (the "Code") the City published notice of its imemion to lease such real property for oil and gas purposes once a week for three consecutive weeks in a newspaper with general circulation and published in Denton County, Texas; and WHEREAS, in compliance with the Code, the City Council of the City of DeNon held a public hearing under Chapter 26 of the Texas Parks and Wildlife Code and Chapter 71 of the Texas Natural Resources Code; and WHEREAS, Pursuam to the Code, the City of Demon desires to negotiate the lease of the property for oil and gas well developmem with the best bidder submitted by Trio Consulting & Management Company, L.L.C.; and WHEREAS, Trio Consulting & Management Company, L.L.C. desires to enter into lease negotiations for the land at Hickory Creek Electric Substation for a non-drill site/pooling agreemem for oil and gas well development and after negotiation, to emer imo a lease for the land for oil and gas well development and to agree to pay to the City the agreed upon amounts; and WHEREAS, after negotiation the City desires to authorize the City Manager to execute the lease as long as the lease is in substamially the same form as the City's standard lease agreemem for non- drill site/pooling agreemems. NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Incorporation of Preamble. The above and foregoing preamble is incorporated imo the body of this Ordinance as if copied herein in its emirety. SECTION 2. The City Manager or his designee are hereby authorized to negotiate a non- drill site/pooling oil and gas lease agreemem between the City of DeNon and Trio Consulting & Managemem Company, L.L.C. in return for the paymem(s) as outlined in Attachmem A for the approximately 3.13 acres at the Hickory Creek Electric Substation. SECTION 3. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ATTACHMENT ¢l'l~.f OF DENTON BID FORM ! (.]..sss 'WELL DEVELOPMENT ON HICKORY CREEK ELEC'I]J~IC SUBSTATION PROPERTY NON-DRILL SITE/POOLING AGREE1VIENT Description of property: The lease will be a non-drill site/pooling agreemenL · 3.13 acre:~, more or less, out of and part of the S, A. Ventexs Surve~ A~1315 and being tiao ~l~une land descril~l that cextain Warranty Deed dated Afl,gust 3, 2000 ~orr, l Gordon Meredith to the City of Denton, Texas m~d recorded in Volume 4647 Page~ 3452 of the Real Property ~vcords of Denton County, Texas. Minimum Standards of the Bid: Ple~s~ check each item that will be included~ in the lease. ~ A prim;~y term of not more than three (3) years ~om date of~xecuti~n. · A rc,yaity to lessor not los:~ than one-fourth (t/4) of all oil and gasl produced bom said land. (.~ f greal!¢r than 1/4, pl,.-ase sp~ify, i The royalty lo be, paid at ~he highest price in the area. A statement b~ tho Lessee that the royally to 1:~ paid the City is cqaal to tho highest price paid by tho I~see to any minexal own,:r ~n De~ton, County; ~md flat if the Lessee pays a mineral own ~er in Denton County, Tcx~m a hi~or royalty percentage d~ng the tem~ of this lease, the Lessce shall increase the royalty paid to the City so as to equal this higher mnount An ~rmaal delay rental ofno~: Ie~ than ten and no/100 dollars ($10.00) per acre. (If greater than $~0.00 per acre, specify.) (This is a 3 year Paid Up Lease) , · Shut-i~ pa~l~ent of no.t les:~ 3mn twenty and no/100 dollars ($20.00~ per acre (it' greater than $20.(~ per a~ro, speciiy)~__ I · Bonus money as specified by bidder. ~ ~.~ am'es X $ ~0oo -- total bonus money $~01~i00 For bon~s r. ao~ey as specified in ,~hc bid and with the minimum to be $175.00 per acre. A Dewflopment Plat or otto.er drawing showing a drill plan and submitted with this bid. Th~ City reserves thc right ~o award this bid and lhe mosl. adwmtageous k~ca6on &the drilling locations a~d sites The success:fir bidder shall pay ~he cost of the advertisement of the b: drill sites must be based on both price d= m BidS ch,; skill sub:mit information of the bidder's reputation and quality of the bidder's oil and ,gas se~Mccs including but not l/mired to the bidder's financial ability to provide the oil ttad gas ~.ervices, safety record, compliance history and any other relevant information that '~he bidder submits to rite city for tho determination of best value. The sm:c~afi~l bidder shall c~mply with all requirements in the Code of Ordinances for the City o1' Denton, Texas. A copy may bc obtained ~n the City 8~cretary's office or on the City of Denton's web,,~i'~e, ~mav~¢i~ofdent0n~om. The City of D~ton's Gas Well Ordinances; may be obtahmd from hh~ City Secretary, website or City Attorney's Office. bidder's conference wilt'be, hold on May 5, 2003. An c,il ;md (las lease, and llaght of Way Use Agreement, if any, will bo negotiated within thi~/(30) .days attar thc su,:c~ssful bidd~ is selected. The C'ity shall allow the sm:cessful bidder to pool tho lease, the land or minerals included in the l.:as~, or any part of ~hes¢ with any other land, leases, minerals estates or parts of any of those to f.'om~ a drJil]ing or spacing unit for the exploration, development, and prodat;l:ion of'oil .and gas. By submitting a bid, each bidder agrees to waive and does hereby waive any claim the bidd~x has or may have agtdnst tho City of Denton, Texas, and tho City's respective empl.oyees and representatives for the award of attorney fees, arising out of or in cormection with tho administration, evaluation, or recommendation of any bid, waiver of any :requin,,ments trader the Bid Documents, or the Contract Documents, aeesptance or rejection a~ any bids, and ~.waal of the Bid. By submitting a bid, the bidder specifically waives any' fight 'to recover or be paid attom,y's fees from the City of Denton, Texas, or any of~he ,"" ' o~ty s employee4~ ;md representatives under any of the provisions of the Texas Unitbm~ Deelaratory ludgmentl; Act (Texa~ Civil Practice and Remedies Code, Section 37,01)I. ct. seq., as amendeO. The bidder ag~ee.~ that this is the :intentional relinquishment of a presently existing known By one<:ut/on and subrrdssion of tiffs Bid, the Bidder hereby represents and warrants to the City of Denton that the Bidder has read and undo'stands the Bid Documents and the Contract Documents and ~hJs Bid is made in accordance with tho Bid Documents, Bidder acknowledges that it under:lands all terms within the bid documents, which include the waiver .provi~ions, and that it had the right to consult with counsel regarding all of the ahoy, docum~mts. By submitting a bid, each lfidder agrees to waive and does hereby waive any claim the bidder hag or may have agalns~*. the City of Denton, Texas and the City's employees, ag~lts, and olTieers, arising r~ut ofor in any way connected with the following: 1. the m:hnirdstration, ,~vahmtion or recommendation of any bid; m wah~,:~r or deletion 0,f any o f the requirements under the B id Documents or the Contract ]Documents; 3, acceptance or rejection of any bids; and award of the Bid or I,ease. By submitting a bid, tho bidder ackr~owteflgea that the bidder understands all ten~s of thc bidding doettments md ccnsmts to tho bicld.hg process and the possibility of a negative ~aessment, By submitting a bid, fl:to bidder aclolowledges ,and agrees that there: was and is no disparity of bm'gaining lX~We.r between the bi&let and the City of Denton, Texas. The bidder agrees that fi:ds is the intentional relinquishment of the above listed presently existing rights. The City re,serves the right to waive, delete or amend any of the requirements cormeeted with this laid and to rejec, t say and all bids. Trio Consulting It gmment, LLC -4- Questio~ ~:h~t aroso ~om th~ May 5, 2003 Pr~-Bic~: A 1~¥,~l~ tS'om the Railr0a,:~ Commission, or fi'om the bidd~s bank statinS tha! they ~ t~:iill;~- ita~61~, ',?ht~'wtll b~ stllYi~cJ~' for ~e l'~llllI'effle~lt TOf~edl~d tll last bfflle, t on pa~e 2. b, A l~,evdopme~nt Pla~f is not requital, but a drawing (must be logible) will Ther~ ~e no other cllanll~; i~t this tlmo, Plva~ inoludo thle addendum with your pro;,os~ll, Note: Thl;; ;~ddendura ~1 muzt be acknowledge'd, signed and returned ~vigtt your bid AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET September 2, 2003 Legal Department Dorothy Palumbo, Senior Assistant City Attorney SUBJECT: Hold a public hearing and consider adoption of an Ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling Agreement with Joint Resources Company for Bid # 1 for the North Lakes Park in the City of Denton, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substantially same form as the City's Standard Lease; and providing an effective date. BACKGROUND: This bid is for a non-drill site/pooling agreement for approximately '353 acres at the North Lakes Park. Joint Resources Company submitted the best bid for these mineral interests. The City will receive $72,365.50 bonus and a 2% royalty interest. (See Attachment A of the attached Ordinance). No drilling will be allowed on the North Lakes Park and this land will be pooled and drilled off a well on adjacent property located next to the Fire Station on North Lakes Park. Please see the City Attorney Status Report. OPTIONS: The City Council may .adopt the ordinance and authorize staff to negotiate with the best bidder or the Council may reject all bids and re-advertise for additional bids. RECOMMENDATION: We recommend that this bid be negotiated' with the best bidder, Joint Resources Company, and that the City Manager execute the mineral lease as long as the lease is in substantially the same form as the City's Standard Lease with no alteration of the material bid terms. Respectfully submitted, Dorothy Paluffabo, Sr. Asst. City Attorney $:\Ottr DocumcalsK~s Well Docmmms~agc~la inf'orm~on shcet-lqorlh Lakes Park.doc S:\Our Documents\Ordinances\03\North Lakes Oil and Gas Lease Ordinance .doc ORDINANCE NO. AN ORDINANCE ALLOWING THE NEGOTIATION OF THE BEST BID FOR A CONTRACT FOR AN OIL AND GAS NON-DRILL SITE/POOLING AGREEMENT AT THE NORTH LAKES PARK WITH JOINT RESOURCES COMPANY AND ALLOWING THE CITY MANAGER TO EXECUTE A LEASE AS LONG AS THE LEASE IS IN SUBSTANTIALLY THE SAME FORM AS THE CITY'S STANDARD LEASE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The City Council of the City of DeNon has heretofore determined that it is advisable to lease for oil and gas purposes certain real property located at North Lakes Park, DeNon, Texas; and WHEREAS, in compliance with Chapter 71 of the Texas Natural Resources Code (the "Code") the City published notice of its iNeNion to lease such real property for oil and gas purposes once a week for three consecutive weeks in a newspaper with general circulation and published in Denton County, Texas; and WHEREAS, in compliance with the Code, the City Council of the City of DeNon held a public hearing under Chapter 26 of the Texas Parks and Wildlife Code and Chapter 71 of the Texas Natural Resources Code; and WHEREAS, PursuaN to the Code, the City of DeNon desires to negotiate the lease of the property for oil and gas well development with the best bidder submitted by Join Resources Company; and WHEREAS, Joint Resources Company desires to enter into lease negotiations for the land at North Lakes Park for a non-drill site/pooling agreemeN for oil and gas well developmeN and after negotiation, to enter into a lease for the land for oil and gas well development and to agree to pay to the City the agreed upon amouNs; and WHEREAS, after negotiation the City desires to authorize the City Manager to execute the lease as long as the lease is in substaNially the same form as the City's standard lease agreemeN for non- drill site/pooling agreemeNs. NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Incorporation of Preamble. The above and foregoing preamble is incorporated iNo the body of this Ordinance as if copied herein in its eNirety. SECTION 2. The City Manager or his designee are hereby authorized to negotiate a non- drill site/pooling oil and gas lease agreemeN between the City of DeNon and Join Resources Company in return for the paymeN(s) as outlined in AttachmeN A for the approximately 353 acres of North Lakes Park. SECTION 3. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competeNjurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ATTACHMENT A CITY OF DENTON BID FORM GAS WELL DEVELOPiVIENT ON NORTH LAi~ES PARK PROPERTY NON-DRILL SITE/POOLING AGREE~NT Description of property: The lease will be a non-drill site/pooling agreement. Legal Description to be provided. Minimum Standards of thc Bid: Please check each item that will be included in thc Icasc. primary term of not more than ~ree-V~7 years from date of execution. royalty to lessor of ~ 1 ~$ ~ of ali oil and gas produced from said land. alan annual delay rental of -' Lease) YBonus money as specified by bidder. . ~ 3. acres X $ '~l~a,~'', ~ = total bonus money bonus money as spec/fled in the bid. ~/'A Development Plat or other drawing showing a drill The royalty to be paid at thc highest price in the area. k statement by thc Lessee that thc royalty to be paid the City is equal to the highest price paid by the Lessee to any mineral owner in Denton, County; and that if thc Lessee pays a mineral owner in Denton County, Texas a higher royalty percentage during the term of this lease, thc Lcsscc shall increase the royalty paid to the City so as to equal this higher mount. t~ --- per acre. (This is afl' year Paid Up .. per acre. plan and drill sites must be submitted w/th this bid. The City reserves the right to award this bid based on both price and the most,adyantagequs location ofth~ drilling locations and sites. / sucoessf bader shall rv the cost of the adve s z Bidders shall submit informafion'of the bidder's reputat/on and quality of the bidder's oil and gas services including but not limited to the bidder's financial ability to provide the oil and gas services, safety record, compliance history and any other relevant i~fonnation that the bidder submits to the city for the determination of best value. A letter from the P,,aikoad Commission that thc company is in good standing wilt suffice. The successful bidder shall comply with all requirements in the Code of Ordinances for -2- the City of Denton, Texas. A copy may be obtained in the City Secretary's office or on the City of Denton's website, www.citzofdento~c.o~ The City of Denton's Gas We11 Ordinances may be obtained from the CiV Secretary, website or City Attorney's Office. A bidder's conference will be held on Monday, July 28, 20~3 at 2:00 p.m, at the City of Denton Purchasing Office conference room, 901 B Texas Street, Denton, Texas.. m/ZAn oil and Oas lemse, and Right of Way Use Agreement, if any, will be negotiated within thirty (30) days alter the successful bidder is selected. affThe City shall allow the successful bidder to pool the lease, the land or minerals included in the lease, or any part of these with any other land, leases, minerals estates or pazts of any of these to form a drilling or spacing uuit for the exploratio.n, development, and production of oil and gas. By submitting a bid, each bidder agrees to wa/ye aad does hereby waive any clahn the bidder has or may have against the City of Denton, Texas, and the City's respective employees and representatives for the award of attorney fees, arising out of or in connection with the administration, evaluation, or recommendation of any bid, waiver of any requirements under the Bid Documents, or the Contract Documents, acceptance or rejection of any bids, and award of the Bid. By submitting a bid, the bidder specifically' waives any right to recover or be paid attorney's fees from the City of Denton, Texas, or any of the City's employees s_ad representatives under arty of the provisions of the Texas Uniform Declaratory ~udgments Act (Texas Civil Practice and Remedies Code, Section 37.00I, et. seq., as amended). The bidder agrees that this is the Lutentional relinquishment of a presently existing known right. By execution and submission of this Bid, the Bidder hereby represents and warrants to the City of Denton that the Bidder has read and understands the Bid Documents and the Contract Documents and this Bid is made in accordance with the Bid Documents. Bidder acknowledges that it understands ali terms within the bid documents, which include the waiver provisions, and that it had the right to consult with counsel regarding ail of the above documents. By submitting a bid, each bidder a~ees to wa/ye and does hereby waive any claim the bidder has or may have against the City of Denton, Texas md the City's employees, agents and officers, ar/sing out of or in any way cormected with the follow/rig: 1. the administration, evaluation or recommendation of any bid; 2. waiver or deletion of arty o f the requirements under the B id Documents or the -3- Contrzct Documents; ~cceptance or ~cjection of any bids; and 4. award o£the Bid or Lease. By submitting a bid, the bidder acknowledgem that the bidder understands all terms of the bidding documents and consents to the bidding process and the possibility of a negative assessment. By submitting a bid, the bidder acknowledges and agrees that there was and is no disparity of bargaining power between the bidder and the City of Denton, Texas. - The bidder agrees that this is the intentional relinquishment of the above listed presently existing rights. ,. The City reserves the fight to waive, delete or amend any of the requirements connected with this bid and to reject any and ali bids. Certification iddcr . Joint Resources Company is the Operator of the closest Wells to the North Lakes Property and is presently responsible for bringing in the only gas line to gather gas from this area and is a leaseholder owner of leases in very close proximity to the North Lakes Property. In addition, Joint Resources Company is presently negotiating t6 obtain additional leases directly offsetting the North Lakes Property from which additional directional and/or horizontal Wells can be drilled from, thereby allowing development of the minerals under the North Lakes Property without drillsites or operations thereon. Joint .Resources Company presently maintains all insurance and bonding commensurate with the Texas Railroad Commission and City of Denton requirements, and has successfully already drilled two (2) gas Wells in the immediate vicinity of the North Lakes Property, and operates in excess of 200 oil and/or gas Wells. TX Railroad Commission Letter of Good Standing attached. 03 08 04 Contact Information: Mark G. Kalpakis, President Joint Resources Company 770 N. Fielder Road Arlington, TX 76012 Tel # (817) 459-2570 xt. I Fax # (817) 459-1719 AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET September 2, 2003 Legal Department Dorothy Palumbo, Senior Assistant City Attorney SUBJECT: Hold a public hearing and consider adoption of an Ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling Agreement with R.L. Adkins Corporation for the South Lake Park in the City of Denton, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substantially same form as the City's Standard Lease; and providing an effective date. BACKGROUND: This bid is for a non-drill site/pooling agreement for approximately 187.33 acres at the South Lake Park. R. L. Adkins Corporation submitted the only bid for these mineral interests. The City will receive $18,733.00 bonus and a 17% royalty interest. (See Attachment A of the attached Ordinance). No drilling will be allowed on the South Lake Park and this land will be pooled and drilled off a well on adjacent property next to the Fire Station at South Lake Park where Acme Brick has a well that has been drilled. Please see the City Attorney Status Report. ,OPTIONS: The City Council may adopt the ordinance and authorize staff to negotiate with the best bidder or the Council may reject all bids and re-advertise for additional bids. RECOMMENDATION: We recommend that this bid be negotiated with the best bidder, R. L. Adkins Corporation and that the City Manager execute the mineral lease as long as the lease is in substantially the same form as the City's Standard Lease with no alteration of the material bid terms. Respectfully submitted, Dorothy PalmUbo, Sr. Asst. City Attorney S:\Our Documents\Gas Wall Docan~-ms~ageada ~formatirm sheot-South Lak~ Park..doe AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET September 2, 2003 Legal Department Dorothy Palumbo, Senior Assistant City Attorney SUBJECT: Hold a public hearing and consider adoption of an Ordinance allowing the negotiation of the best bid for an Oil and Gas Lease for a Non-drill Site/Pooling Agreement with R.L. Adkins Corporation for the South Lake Park in the City of Denton, Texas and allowing the City Manager to execute said Lease as long as the Lease is in the substantially same form as the City's Standard Lease; and providing an effective date. BACKGROUND: This bid is for a non-drill site/pooling agreement for approximately 187.33 acres at the South Lake Park. R. L. Adkins Corporation submitted the only bid for these mineral interests. The City will receive $18,733.00 bonus and a 17% royalty interest. (See Attachment A of the attached Ordinance). No drilling will be allowed on the South Lake Park and this land will be pooled and drilled off a well on adjacent property next to the Fire Station at South Lake Park where Acme Brick has a well that has been drilled. Please see the City Attorney Status Report. ,OPTIONS: The City Council may adopt the ordinance and authorize staff to negotiate with the best bidder or the Council may reject all bids and re-advertise for additional bids. RECOMMENDATION: We recommend that this bid be negotiated with the best bidder, R. L. Adkins Corporation and that the City Manager execute the mineral lease as long as the lease is in substantially the same form as the City's Standard Lease with no alteration of the material bid terms. Respectfully submitted, Dorothy PalmUbo, Sr. Asst. City Attorney S:\Our Documents\Gas Wall Docan~-ms~ageada ~formatirm sheot-South Lak~ Park..doe S:\Our Documents\Ordinances\03\South Lake Oil and Gas Lease Ordinance Best Bid.doc ORDINANCE NO. AN ORDINANCE ALLOWING THE NEGOTIATION OF THE BEST BID FOR A CONTRACT FOR AN OIL AND GAS NON-DRILL SITE/POOLING AGREEMENT AT THE SOUTH LAKE PARK WITH R. L. ADKINS CORPORATION AND ALLOWING THE CITY MANAGER TO EXECUTE A LEASE AS LONG AS THE LEASE IS IN SUBSTANTIALLY THE SAME FORM AS THE CITY'S STANDARD LEASE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The City Council of the City of Demon has heretofore determined that it is advisable to lease for oil and gas purposes certain real property located at South Lake Park, DeNon, Texas; and WHEREAS, in compliance with Chapter 71 of the Texas Natural Resources Code (the "Code") the City published notice of its imemion to lease such real property for oil and gas purposes once a week for three consecutive weeks in a newspaper with general circulation and published in Denton County, Texas; and WHEREAS, in compliance with the Code, the City Council of the City of DeNon held a public hearing under Chapter 26 of the Texas Parks and Wildlife Code and Chapter 71 of the Texas Natural Resources Code; and WHEREAS, Pursuam to the Code, the City of Demon desires to negotiate the lease of the property for oil and gas well developmem with the best bidder submitted by R. L. Adkins Corporation; and WHEREAS, R. L. Adkins Corporation desires to enter into lease negotiations for the land at South Lake Park for a non-drill site/pooling agreemem for oil and gas well developmem and after negotiation, to enter into a lease for the land for oil and gas well development and to agree to pay to the City the agreed upon amoums; and WHEREAS, after negotiation the City desires to authorize the City Manager to execute the lease as long as the lease is in substamially the same form as the City's standard lease agreemem for non- drill site/pooling agreemems. NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Incorporation of Preamble. The above and foregoing preamble is incorporated imo the body of this Ordinance as if copied herein in its emirety. SECTION 2. The City Manager or his designee are hereby authorized to negotiate a non- drill site/pooling oil and gas lease agreemem between the City of DeNon and R. L. Adkins Corporation in return for the paymem(s) as outlined in Attachmem A for the approximately 187.33 acres of South Lake Park. SECTION 3. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competemjurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ATTACHMENT "A" ~--~~[ Airport Open Leas.ed. ~to Ly. nx 0il' Cb?, Volume..4928,Page 714 ..... ~,91~.64 acres ~proved Gas'Well Dev'Pl.a~ )ace Bid 3059 Sept~er~ber 24,~ 2001, -V6 l-'lr~ ~4'9 2 8' F q:r ~, ~ ~ ~1-~ ...... 691 ;64 ~dres DISCLAIMER This data has been compiled for the City of Denton. Various official and unofficial sources were used to gather this information. Every effort was made to ensure the accuracy of this data, however, no guarantee Is given or implied as to the accuracy of said data. http://gisweb cityofdenton.corn/servlet/com.esri esrimap,Esrimap? ServiceName=overvi:w&.. 8/1/2003 CITY OF DENTON BID FORM GAS WELL DEVELOPMENT ON AIRPORT OPEN SPACE PROPERTY NON-DRILL SITE/POOLING AGREENIENT Description of property: The lease will be a non-drill site/pooling agreement. Airport Open Space - to be provided. Minimum Standards of the Bid: Please check each item that will be included in the lease. ~/ A primary term of not more than three (3) years from date of execution. ~ Aroyaltyto lessor /8, 75/~r~ (~/f/~) ofl and gas proauced from said land. ~p.'aid jf thd hi'ghedt price m the area.'A statenlent' by tlxe L~ _owner in Denton, County; and~~1 ;~n-e~q~'in~o~ ~Tu~i An annual delay rental of_ _/[J/]~ per acre. (This is Lease) a 3 year Paid Up Shut-in payment of .... per acre. ~" Bonus money as specified by bidder. t~ ~ acres X $ / 0~ g'* = total bonus money .. -- For bon~ money ~ specified ~ the bid~o~ t~*L ~e~. ~ ~F ~Y 0~ ~ ~ IOO~, ~ A Development Plat or o~er ~a~g sho~g a ~11 pl~ ~d ~I1 sites m~t be subdued wi~ t~s bid. ~e CiW rese~es ~e h~t to awed t~s bid b~ed on bo~ phce ~d the most adv~tageous location of ~e ~I~g locatio~ ~d sites. Bidders shall submit information of the bidder's reputation and quality of the bidder's off and gas services including but not limited to the bidder's financial ability to provide the oil and gas services, safety record, compliance history and any other relevant information that the bidder submits to the city for the determination of best value. A letter from the Railroad Commission that the company is in good standing will suffice. The successful bidder shall comply with ali requirements in the Code of Ordinances for the City of Denton, Texas. A copy may be obtained in the City Secretary's office or on the City of Denton's website, www.eityofdenton.com.. The City of Denton's Gas Well Ordinances may be obtained from the City Secretary, website or City Attorney's Office. ~" A bidder's conference will be held on Monday July 28, 2003 at 2:00 p.m. at the City of Denton Purchasing Office conference room, 901 B Texas Street, Denton, Texas. ~f An oil and Gas lease, and Right of Way Use Agreement, if any, will be negotiated within ~~ d~ays after the successful bidder is selected. a'/The City shall allow the successful bidder to pool the lease, the land or minerals included fix the lease, or any part of these with any other land, leases, minerals estates or parts of any of these to form a drilling or spacing unit for the exploration, development, and production of oil and gas. By submitting a bid, each bidder agrees to waive and does hereby waive any claim the bidder has or may have against the City of Denton, Texas, and the City's respective employees and representatives for the award of attorney fees, arising out of or in connection with the administration, evaluation, or recommendation of any bid, waiver of any requirements under the Bid Documents, or the Contract Documents, acceptance or rejection of any bids, and award of the Bid. By submitting a bid, the bidder specifically waives any right to recover or be paid attorney's fees from the City of Denton, Texas, or any of the City's employees and representatives under any of the provisions of the Texas Uniform Declaratory Judgments Act (Texas Civil Practice and Remedies Code, Section 37.00i, et. seq., as amended). The bidder agrees that this is the intentional relinquishment of a presently existing known right. By execution and submission of this Bid, the Bidder hereby represents and warrants to the City of Denton that the Bidder has read and understands the Bid Documents and the Contract Documents and this Bid is made in accordance with the Bid Documents. Bidder acknowledges that it understands all terms within the bid documents, which include the waiver provisions, and that it had the right to consult with counsel regarding all of the above documents. By submitting a bid, each bidder agrees to waive and does hereby waive any claim the bidder has or may have against the City of Denton, Texas and the City's employees, agents and officers, arising out of or/n any way connected with the following: 1. the administration, evaluation or recommendation of any bid; waiver or deletion of any o f the requirements under the B id Documonts or the -3- Contract Documents; 3. acceptance or rejection of any bids; and 4. award of the Bid or Lease. By submitting a bid, the bidder acknowledges that the bidder understands ail terms of the bidding documents and consents to the bidd/ng process and the possibility of a negative assessment. By submitting a bid, the bidder acknowledges and agrees that there was and is no disparity of bargaining power between the bidder and the City of Denton, Texas. The bidder agrees that this is tke intentional relinquislunent of the above listed presently existing rigl~ts. The City reserves the right to waive, delete or amend any of the requirements connected with th/s bid and to reject any and ali bids. Certification of Bidder AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM: September 2, 2003 Economic Development Department Michael A. Conduff, City Manager ~/'~/~ SUBJECT HOLD A PUBLIC HEARING AND CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO. VI FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING OTHER MATTERS RELATING THERETO; PROVIDING A SEVERABiLiTY CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND The attached ordinance establishes Reinvestmem Zone VI. The property included within the boundaries represems 91.921 acres of the Andrew Corporation 143-acre site. City Council's adoption of the ordinance establishing the reinvestmem zone will allow Council to consider a tax abatement agreement with Flowers Baking Company of DeNon, LLC, a wholly owned subsidiary of Flowers Foods Bakeries Group, LLC of Georgia. The agreement provides 35% tax abatement on new valuation on improvements created at the facility for five years. Curremly, the company plans to phase in approximately $40 million in capital investmem over a three-year period - adding a shift of employees each of the 3 years. The $40 million investmem includes the purchase of the property, renovation of the plant into a state-of-the-art bakery, construction of additional square footage, and equipmem valued at approximately $33 million. The abatement agreement would provide five years of abatement for each of the three phases. The Joint Tax Abatement Committee reviewed the proposal and recommended the agreemem be drafted and brought before the City Council. if approved by Council on September 2nd, the County will consider a 30% abatement for five years. ESTIMATED SCHEDULE OF PROJECT If the reinvestment zone and tax abatement are approved, the company will purchase the property September 19 and begin renovations. PRIOR ACTION/REVIEW The Joint Tax Abatement Committee recommends approval. FISCAL INFORMATION Establishing the reinvestment zone has no fiscal impact. EXHIBITS Ordinance Exhibit A - Property Description Exhibit B - Site Map Respectfully submitted: Linda Ratliff, Director Economic Development Department ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO. VI FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING OTHER MATTERS RELATING THERETO; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality") desires to promote the development or redevelopment of a certain contiguous geographic area within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by Tex. Tax Code Ch. 312 (referred to as the "Property Redevelopment and Tax Abatement Act" or the "Act"); and WHEREAS, an industry or business known as Flowers Baking Co. of Denton, LLC has requested tax abatement to renovate an existing facility and build improvements within the area to be designated as Reinvestment Zone VI; and WHEREAS, the City Council desires to create a proper economic and social environment to induce investment of private resources and productive business enterprises in this area of the City, which meets the criteria established under §312.202 of the Act, and to expand primary em- ployment or to attract major investment; and WHEREAS, by resolution dated August 19, 2003, a public hearing before the City Coun- cil was called, set, and held at or after 6:00 p.m. on September 2, 2003, in the City Council Chambers of the City of Denton at 215 East McKinney Street in the City of Denton, such date being at least seven days after the date of publication of notice of such public hearing and the receipt of written notices of such public hearing by the presiding officer of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone, in accordance with §312.201 of the Act; and WHEREAS, such public hearing was held before the consideration and adoption of this ordinance; and WHEREAS, the City, at that hearing, invited any interested citizen or his representative to appear and offer testimony or evidence for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in the notice calling the public hearing should be included in the proposed reinvestment zone, and the concept of tax abatement; and WHEREAS, in accordance with such public notice, all owners of property within the proposed reinvestment zone and all other taxing units and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone; and WHEREAS, on the 19th day of August, 2003, on or before the holding of the above- mentioned public hearing, the City Council passed Resolution No. 2003-021 establishing guide- lines and criteria governing tax abatement agreements and stating that the City of Denton elects to become eligible to participate in tax abatement, in accordance with Tex. Tax Code §312.002and such Policy is now in effect and was in effect prior to the public hearing; and WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of- fered evidence in favor and against all matters relating to the creation of the reinvestment zone, and, after hearing this testimony and evidence, the City Council deems it in the public interest to create this reinvestment zone; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2. That for the purposes of this ordinance, the following terms and phrases shall have the following meanings ascribed to them: A. Improvements - Improvements shall include, for the purpose of establishing eligibility under the Act, any activity at the location, including, but not limited to, new construction, recon- struction, renovation and repairs. B. Taxable Real Property - Taxable real property shall be as defined in the Texas Property Tax Code and shall not include personal property as defined in the Code. C. Tangible Personal Property - Tangible Personal Property shall be defined as business per- sonal property, excluding inventory and supplies. D. Base Year - The base year for determining increased value shall be the taxable real property value assessed the year in which the Tax Abatement Agreement is executed. SECTION 3. That the City, through its City Council, after conducting the above- mentioned public hearing and having heard such evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it: A. That the public hearing on the adoption of the reinvestment zone has been properly called, held, and conducted in accordance with §312.201 of the Act and all other applicable laws, and that notice of such hearing has been published as required by law and mailed to the pre- siding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone as required by law; and Page 2 of 6 That prior to holding the public hearing, the City has adopted, by resolution, the guidelines and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate- ment Policy, as amended, and the City has elected to participate in tax abatement; and C. That the City had jurisdiction to hold and conduct the public hearing on the creation of the proposed the reinvestment zone, pursuant to chapter 312 of the Act; and D. That the boundaries of the reinvestment zone shall be the area described in the metes and bounds description attached hereto as Exhibit "A" and as shown on the diagram as the area outlined in red attached hereto as Exhibit "B" and being approximately 91.921 acres at or near 4210 Edwards Road in the corporate limits and/or in the extraterrestrial jurisdiction of the City of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of this ordinance as if written word for word herein; and That the creation of the reinvestment zone for commercial/industrial tax abatement with the improvements expected to be developed by Flowers Baking Company of Denton, LLC would be of benefit to the City and to the land to be included in the zone, with the boundaries as described in Exhibit "A," after the expiration of the tax abatement agreement entered into under §312.204 of the Act, and the improvements sought are feasible and practical; and That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation ofa reinvestment zone, as set forth in §312.202 of the Act, since it is, "reasonably likely, as a result of the designation, to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the Municipality;" and G. That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation of a reinvestment zone as set forth in the Denton Policy for Tax Abatement and the expected improvements in the boundaries of the zone are expected to en- hance significantly the value of all taxable real property and tangible personal property lo- cated within the reinvestment zone. SECTION 4. That pursuant to §312.201 of the Act, the City, through its City Council, hereby creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area described by the metes and bounds description in Exhibit "A" attached hereto and as shown on Exhibit "B" attached hereto and such reinvestment zone is hereby designated and shall hereinafter be designated as Reinvestment Zone No. VI, City of Denton, Texas. SECTION 5. That Reinvestment Zone No. VI shall be effective as of January 1, 2004, and shall terminate five years from that date, on December 31, 2009, unless extended for an ad- ditional five-year term or unless earlier terminated by action of the City Council in accordance with §312.203 of the Act. SECTION 6. That to be eligible for tax abatement, a commercial/industrial project shall: Page 3 of 6 A. Be located wholly within the zone established herein; B. Meet the requirements of the Denton Tax Abatement Policy; C. Not include property that is owned or leased by a member of the City Council of the City of Denton, or by a member of the Planning & Zoning Commission; D. Conform to the requirements of the City's zoning ordinance and all other applicable laws and regulations; and E. Have and maintain all land located within the designated zone, appraised at market value for tax purposes. SECTION 7. That written tax abatement agreements with property owners located within the zone shall provide the terms regarding duration of exemption and share of taxable real property and/or tangible personal property located on the real property for taxation as approved hereunder, as shown below: A. Duration of exemption from two years to ten years depending on the value of the structures and real property in accordance with the Denton Tax Abatement Policy, beginning with and including January 1, 2005; and Bo Share of taxes abated - in the maximum of 35% of taxes on the total value of appraised real property improvements and tangible personal property as more particularly described in the Tax Abatement Agreement between the City of Denton and Flowers Baking Co. of Denton, LLC, which are added, provided, however, nothing herein shall prevent any other taxing unit that includes in its boundaries real property that is included in the reinvestment zone from en- tering into a tax abatement agreement with a different share of taxes abated on the total value of appraised improvements which are added, in accordance with the requirements of chapter 312 of the Act. SECTION 8. That any written agreements authorized under this ordinance must include provisions for: A. Listing the kind, number, and location of all proposed improvements of the property; Bo Access to and authorizing the inspection of the property by municipal employees to ensure that the improvements or repairs are made in accordance with the specifications and condi- tions of the agreements; Co Limiting the uses of the property, consistent with the general purpose of encouraging devel- opment or redevelopment of the zone during the period that property tax exemptions are in effect; Page 4 of 6 D. Recapturing of property tax revenues lost as a result of the agreement if the owner of the property fails to make the improvements or repairs as provided by the agreement; E. Containing each term agreed to by the owner of the property; F. Requiring the owner of the property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement; G. Providing that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement; H. Contain any additional terms and conditions which the City Council deems are necessary, in accordance with §312.205 of the Act, and that are negotiated with the owner of the property. Provided, however, nothing herein shall prevent other taxing units, who include in their boundaries real property within the reinvestment zone, from negotiating terms and conditions that are different from any municipal tax abatement agreement, so long as the mandatory terms and conditions required by §312.205 of the Act are included. SECTION 9. That the City Council further directs and designates the City Manager and the Director of Economic Development as liaisons for communication with regard to all matters pertaining to the Zone, including, without limitation, the development of the amendment of the current Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements with industries, commercial enterprises, and other businesses eligible for tax abatement under the Tax Abatement Policy and for communication with other taxing entities and the Joint Tax Abatement Committee and/or the Economic Development Parmership Board. SECTION 10. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 11. That if any section, paragraph, clause, or provision in this ordinance, or application thereof to any person or circumstance is held invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the re- maining portions of this ordinance. SECTION 12. It is hereby found, determined, and declared that a sufficient written no- tice of the date, place, hour, and subject of the meeting of the City Council at which this ordi- nance was adopted was posted and placed and conveniently accessible at all times to the general public at the City Hall of the City for the time required by law, preceding this meeting, as re- quired by the Open Meetings Act, Tex. Gov't Code Ch. 551, and that this meeting was open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered, and formally acted upon. The City Council further rati- fies, approves, and confirms such written notice and contents posting thereof. The City Council further finds that a quorum was present at such meeting. Page 5 of 6 SECTION 13. That the contents of the notice of public hearing, which hearing was held before the City Council and before the passage of this ordinance on September 2, 2003, the pub- lication of said notice is hereby ratified, approved, and confirmed. SECTION 14. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of _, 2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 6 of 6 Exhibit "A" ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE G. WALKER SURVEY ABSTRACT NUMBER 1330, IN THE M.E.P. & P.R.R. CO. SURVEY ABSTRACT NUMBER 950, AND IN THE D. LAMBERT SURVEY ABSTRACT NUMBER 784, DENTON COUNTY, TEXAS, AND BEING PART OF THE CALLED 27.4367 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 790, DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 8.773 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 797 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 3.000 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 804 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 79.4992 ACRE TRACT, DESCRIBED IN A DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 821, DEED RECORDS, DENTON COUNTY, TEXAS, ALL OF THE 3.59 ACRES OF LAND DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED UNDER CLERKS FILE NUMBER 96-R0014833 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND PART OF ANDREW ADDITION PHASE ONE AS SHOWN BY THE PLAT THEREOF RECORDED IN CABINET B, PAGE 12 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A FOUND RAILROAD SPIKE AT THE NORTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT IN EDWARDS ROAD; THENCE SOUTH 02 DEGREES 40 MINUTES 55 SECONDS WEST WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 698.28 FEET TOA FOUND IRON PIN AT AN ANGLE POINT IN THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 02 DEGREES 43 MINUTES 42 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACTA DISTANCE OF 1249.03 FEET TO A FOUND IRON PIN AT THE SOUTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT ON THE NORTH LINE OF THE 22.967 ACRE TRACT TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 95-R0000602 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 87 DEGREES 33 MINUTES 17 SECONDS WEST WITH THE SOUTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 622.20 FEET TOA FOUND IRON PIN AT THE SOUTHWEST CORNER OF THE 27.4367 ACRE ANDREW TRACT, THE NORTHWEST CORNER OF THE 22.967 ACRE CLARK TRACT, THE NORTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT, AND THE EASTERN MOST SOUTHEAST CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 19 MINUTES 02 SECONDS WEST WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 22.967 ACRE CLARK TRACT A DISTANCE OF 472.97 FEET TO A FENCE CORNER POST AT AN ANGLE POINT IN THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHWEST CORNER OF THE CALLED 0.942 ACRE TRACT DESCRIBED IN THE DEED TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 99-R0000310 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 03 DEGREES 01 MINUTES 21 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 0.942 ACRE CLARK TRACT A DISTANCE OF 224.75 FEET TOASTEEL PIPE AT THE SOUTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 56 MINUTES 40 SECONDS WEST WITH THE SOUTH LINE OF THE 3.59 ACRE ANDREW TRACT A DISTANCE OF 218.61 FEET TOA FENCE CORNER POST AT THE SOUTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE SOUTHEAST CORNER OF THE TRACT OF LAND DESCRIBED IN THE DEED TO BETTY JOHN ROBERTSON RECORDED IN VOLUME 2423, PAGE 932 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 01 DEGREES 47 MINUTES 13 SECONDS EAST WITH THE WEST LINE OF THE 3.59 ANDREW TRACT AND THE EAST LINE OF THE ROBERTSON TRACT A DISTANCE OF 683.38 FEET TO AN IRON PIPE AT THE NORTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHEAST CORNER OF THE CALLED 3.980 ACRE TRACT TO KENNETH D. OWEN RECORDED IN VOLUME 763, PAGE 137 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS ON A SOUTH LINE OF ANDREW ADDITION; THENCE NORTH 87 DEGREES 39 MINUTES 54 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH LINE OF THE OWEN TRACTA DISTANCE OF 363.71 FEET TOA FOUND IRON PIN AT AN INNER ELL CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST WITH AN EAST LINE OF ANDREW ADDITION AND THE WEST LINE OF THE OWEN TRACTA DISTANCE OF 397.16 FEET TOA FOUND IRON PIN; THENCE SOUTH 39 DEGREES 11 MINUTES 57 SECONDS EAST WITH AN EAST LINE OF ANDREW ADDITION AND THE SOUTH LINE OF THE OWEN TRACTA DISTANCE OF 382.68 FEET TOA FOUND IRON PIN AT THE SOUTHERN MOST SOUTHEAST CORNER OF ANDREW ADDITION AND THE SOUTHERN MOST SOUTHWEST CORNER OF THE OWEN TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 46 MINUTES 12 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD A DISTANCE OF 26.57 FEET TOA FOUND IRON PIN AT THE SOUTHERN MOST SOUTHWEST CORNER OF ANDREW ADDITION ON THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD; THENCE NORTH 39 DEGREES 14 MINUTES 16 SECONDS WEST WITH A WEST LINE OF ANDREW ADDITION A DISTANCE OF 412.02 FEET TO A FOUND IRON PIN AT THE BEGINNING OF A CURVE TO THE RIGHT; THENCE WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 26 DEGREES 11 MINUTES 57 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 1287.10 FEET (CHORD OF NORTH 26 DEGREES 10 MINUTES 09 SECONDS WESTA DISTANCE OF 1275.92 FEET) TOA FOUND IRON PIN; THENCE NORTH 13 DEGREES 00 MINUTES 38 SECONDS WEST CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD AND THE WEST LINE OF ANDREW ADDITION A DISTANCE OF 1221.59 FEET TOA FOUND IRON PIN AT THE BEGINNING OF ACURVE TO THE LEFT; THENCE CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 09 DEGREES 53 MINUTES 43 SECONDS, A RADIUS OF 1959.24 FEET, AN ARC LENGTH OF 338.37 FEET (CHORD OF NORTH 17 DEGREES 58 MINUTES 31 SECONDS WESTA DISTANCE OF 337.99 FEET) TOA SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" ON THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD ALONG SAID CURVE HAVING A DELTA OF 01 DEGREES 17 MINUTES 13 SECONDS, A RADIUS OF 540.00 FEET, AN ARC LENGTH OF 12.13 FEET (CHORD OF NORTH 66 DEGREES 07 MINUTES 51 SECONDS EASTA DISTANCE OF 12.13 FEET) TO A SET "X" IN CONCRETE AT THE INTERSECTION OF THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AND THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 27 DEGREES 41 MINUTES 50 SECONDS EAST WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 147.27 FEET TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE CONTINUING WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD ALONG SAID CURVE HAVING A DELTA OF 59 DEGREES 01 MINUTES 36 SECONDS, A RADIUS OF 330.00 FEET, AN ARC LENGTH OF 339.97 FEET (CHORD OF SOUTH 57 DEGREES 12 MINUTES 38 SECONDS EAST A DISTANCE OF 325.13 FEET) TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE SOUTH 86 DEGREES 44 MINUTES 08 SECONDS EAST WITH THE SOUTH RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 1797.84 FEET TOA FOUND IRON PIN; THENCE NORTH 03 DEGREES 30 MINUTES 26 SECONDS EASTA DISTANCE OF 35.49 FEET TO A FOUND RAILROAD SPIKE IN EDWARDS ROAD ON THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 88 DEGREES 03 MINUTES 58 SECONDS EAST WITH THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 172.15 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 91.921 ACRES OF LAND. EXHIBIT "B" c~ c~ AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 2, 2003 Economic Development Mike Conduff, City Manager SUBJECT AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH FLOWERS BAKING CO. OF DENTON, LLC; SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDITIONS PRECEDENT TO FLOWERS BAKING CO. OF DENTON, LLC RECEIVING THE TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BACKGROUND Representatives of Flowers Foods Bakeries Group of Georgia requested a tax abatement for their proposed DeNon project. This project would represeN the fourth plan to open in Texas. Products sold in this area are Nature's Own, Cobblestone Mill and Sunbeam bread. The company has a contract on approximately 92 acres of the Andrew Corporation 143-acre site. The property includes the improvements now housing the Andrew plant. The Flowers company representatives visited the plant several times and were very impressed with the Andrew employees and have indicated an iNerest in hiring some of those folks who will not be moving with the company when Andrew closes. Also, Flowers indicated that their senior staffwill own homes and live within the Denton city limits. They plan to hire approximately 94 employees the first year, and would have a total of 216 employees by the end of the abatement agreement. Flowers Foods Bakeries Group, LLC. submitted a request for tax abatement on June 20, 2003, however, the signed and official copy was dated August 6, 2003. The application is attached as Exhibit B of the tax abatement agreement. You will note in the application that Flowers must obtain an air quality permit to control yeast emissions. The company informs us that state-of-the-art equipment is used and that they will fall far below emission thresholds. The company plans to renovate the existing facility and construct an additional 35,000 square feet, and install approximately $33 million of equipment. The tax abatement agreemeN provides for a three-year phase-in of the project. We estimate an increase of valuation over the three years of $35,750,000. The agreement requires a total threshold of $30 million, to be phased in as follows: Phase Estimated Increased Years Abated Valuation 1 $15,000,000 2005 - 2009 2 $5,000,000 2006 - 2010 3 $10,000,000 2007 - 2011 Should the new valuation of Phase 1 be less than $15 million, the term of the agreemem will be reduced to four years. Should the new valuation be less than $5 million, no abatemem shall be given. The agreement allows the company some flexibility in that they are required to meet the threshold of $15 million the first year, $20 million by Phase 2, and $30 million by Phase 3. Therefore, should the increased valuation be $17 million in Phase 1, only an increase of $3 million would be required by the Phase 2 date. Should the company fail to meet the thresholds, the abatement would be reduced by the percentage difference between the actual valuation and the threshold. For example, should the company meet the first threshold but only have a total increase in valuation in Phase 2 of $18 million (90% of $20 million), the company would received 90% of their 35% abatemem- or $31.5%. A portion of the Andrew property is not curremly located in our city limits. A requirement of the agreement is that the company voluntarily annex that portion into the city limits. ESTIMATED SCHEDULE OF PROJECT If approved, Flowers Foods expects to close on the property on September 19th. We anticipate that the company would complete its renovations and receive a certificate of occupancy in 2004, initiating the abatement in 2005. PRIOR ACTION/REVIEW The Joint Tax Abatement Committee recommended the Flowers request be forwarded to the City Council and DeNon County for consideration. The DeNon Chamber of Commerce Board of Directors also supports this project. A resolution in support is attached. FISCAL INFORMATION A five-year cost/benefit analysis indicates an overall impact to the community of $18,970,972. Estimated Wage Impact $11,467,123 Existing Taxes (excluding equipment) $415,065 $112,140 $55,439 $582,643 New Taxes (Based on increased valuation of $35,750,000) $3,331,900 $979,818 $445,034 $4,756,752 Abatement $0 ($342,036) ($133,510) ($475,546) Electric Utilities (five years)** $2,400,000 2,400,000 Water Utilities (five years) $60,000 60,000 Wastewater Utilities (five years) $180,000 $180,000 **Note: Electric utilities are currently being provided to the facility by TXU. Denton Municipal Electric staff has begun the process to determine whether or not this facility would become a DME customer under deregulation rules. EXHIBITS Resolution of Support - Denton Chamber of Commerce Ordinance Agreement Exhibit A - Property Description Exhibit B - Application for Tax Abatement Exhibit C - Ordinance Exhibit D - Board of Directors Authorization Respectfully submitted: Linda Ratliff, Director Economic Development Department RESOLUTION WHER~$, the board of dired:ors of the Denton Chamber of Commerce formally adopted a posidon on 3u!y i5~ igg9 favoring pub]!c-~nldatJd incentives tha~: encourage t:he expansion ~nd gro~ of new and ex[sting bu:s[:ness~" and WHEREAS, Fowers Fueds Bakeries Group, LLC has s:ubml~ed 8 request,: fo? a 35% tsx abatement from the City of DentOn and 30% from Den[on Counw for five years:¢ wi~h the additiona~ request that the aba~'ement be phased ~n for each of three annual expansion phases, for a to~ project: ]nve~ment of $4im~ltbn (~20 mBion the ~FSt year, Sz0 raimon the secoad year and az0 mf~l~:mn the t:hird: yea~}; and WHEREAS,, F[oweB Foods antic[pates; hiMng app, roxima~ely i00 employees the first yea~, and wB add another I20 by year three, with wages ranging from $29¢608 ~8~ing produ~;ion to 875,400 adminis~a(i!on; and WHER~S, ff the tax abatemen~ 8re approved¢ Flowers Foods will occupy and improve e×isSng loc:al faciB;ies, recently dosed daw:n bV a majo~ priV'a~e employe~ and WHERe, ~he Ci~, of Dent:on Ci:~, Co:uric:ii has set e pubii£ headn§ for the creation of a Reinve~ment Zone, and consideration of :said tsx ~ba~emen~~ ' ~ request on September 2~ 2003, NOW,, T'HE:REFO~, BE ~ RESOLVED that the Board of DireCts of ~2~e Den(on Chamber" of Commerce does hereby rei'~pa;te i~ odginaf podt[on regarding public incentives and encourage (he Cib' Counci! ~o estabi]sh Reinve~ment Zone ~q and grant ~he (ax abatement reque~ of F:lowe~ Foods 8akedes Group, LLC as originally submitted, Approved during i~ regular meeting on Aug'ust 21, 2003, Charles W, Carpenter/ Randy R:ob[hsor'~ Chair of the Board ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH FLOWERS BAKING CO. OF DENTON, LLC; SETTING FORTH ALL THE REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDITIONS PRECEDENT TO FLOWERS BAKING CO. OF DENTON, LLC RECEIVING THE TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 2nd day of September 2003, after a public hearing duly held in accor- dance with Tex. Tax Code §312.201 (the "Act"), the City Council passed Ordinance No. 2003- (the "Ordinance") establishing Reinvestment Zone No. VI, City of Denton, Texas as a commercial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chapter 312, Subchapter B of the Act; and WHEREAS, on the 6th day of August, 2003 Flowers Baking Co. of Denton, LLC submit- ted an application for tax abatement with various attachments to the City concerning the contem- plated use of certain property located within the Zone; and WHEREAS, the City Council finds that the contemplated use of the premises and the contemplated improvements to the premises, as indicated by Flowers Baking Co. of Denton, LLC are consistent with encouraging the development of the Zone in accordance with the pur- poses for its creation and are in compliance with the Denton Tax Abatement Policy; and WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate- ment Agreement with Flowers Baking Co. of Denton, LLC; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings contained in the preamble to this ordinance are true and correct and are adopted as a part of the whole ordinance. SECTION 2. That the City Council finds and determines the following: That the contemplated use of the premises and the contemplated improvements of the prem- ises, as indicated by Flowers Baking Co. of Denton, LLC are consistent with encouraging the development of the Zone in accordance with the purposes of its creation and are in compli- ance with the Denton Tax Abatement Policy. That the City Council finds that the improvements sought by Flowers Baking Co. of Denton, LLC within the Zone are feasible and practical and would be a benefit to the land to be in- cluded in the Zone and to the City after the expiration of the Tax Abatement Agreement to be entered into with Flowers Baking Co. of Denton, LLC. That the City Council finds that the Tax Abatement Agreement contains all the terms which are mandatorily required to be included in any tax abatement agreement under §312.205 of the Act. That, in accordance with §312.2041 of the Act, the City Council finds that not later than the date on which the City Council considered this ordinance, and not later than the seventh day before the date the City enters into a Tax Abatement Agreement with Flowers Baking Co. of Denton, LLC, that the City Manager, through the Director of Economic Development, who are hereby designated and authorized by the City Council to give such notice, delivered to the presiding officer of the Denton Independent School District and Denton County a written no- tice that the City intends to enter into this Tax Abatement Agreement with Flowers Baking Co. of Denton, LLC, and that this notice included a copy of the proposed Tax Abatement Agreement in substantially the form of the Tax Abatement Agreement attached to this ordi- nance. 5. That before the passage of this ordinance, the City Council held a public hearing in accor- dance with §312.201 of the Act and created Reinvestment Zone No. VI. The City Council finds that the project within Reinvestment Zone No. VI is a redevelopment of an existing business as defined in the Tax Abatement Policy and requires additional incen- tives to promote economic development that generally satisfies the requirements of the policy and the City Council hereby waives the minimum threshold requirement within the policy for tax abatement and authorizes a tax abatement of a maximum of 35% on the increased valua- tion of the Taxable Real Property improvements and tangible personal property as more par- ticularly described in the Tax Abatement Agreement attached hereto and made a part hereof by reference as Exhibit "A" (the "Tax Abatement Agreement").. SECTION 3. That the Mayor, or in her absence, the Mayor Pro Tem, is hereby author- ized to execute the Tax Abatement Agreement with Flowers Baking Co. of Denton LLC. in sub- stantially the same form as the Tax Abatement Agreement attached as Exhibit "A". SECTION 4. That the City Council hereby instructs and authorizes the City Manager to inspect, audit, and evaluate the progress of Flowers Baking Co. of Denton, LLC to determine if it has met all of the conditions of the attached Tax Abatement Agreement prior to the tax abate- ment going into effect. SECTION 5. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, the City Council of the City of Denton hereby declares that they would have enacted such remaining portions despite any such validity. Page 2 of 3 SECTION 6. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of _, 2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 3 of 3 TAX ABAFEMI!iNT AGREE?~,iEht' a.t¢~ccr[~cnis knm,'vn as t'~c l)cn1:~n !'ax Abs'A'r:~tcnt Polk:y; fi lc i'n i:llr,. C[%' oF ]l~m!o.n ~ conon'~ic Dc~cR:~pmcni OIiicc and ',,,]~ich is incoq:~o:'~cd, herein by R' ~[ l~ K [:. A S, h e ~o i i c y c o ~ s ~ ~ [ u.t. cs appro ? at c "~¢:~ i d cl. h'1 cs ~ n,J c ri [c ri a" go v c.rn ~ ~g ! a. x ~d:~alen'~cnt a~.rc'cme ~ts k, bc cntcrccl h'~o ? thc Ch,, as cc, r~,::.n:p[~[cd R'IiERI!.AS. on i!;"~c 2m:] day o1" Sct~tc.n~ber~ 200A thc Cit} (:omn'~crcial"industrial rcinvcsm~cr.r[ >'one fi,'~r tax ~fi')s:cmcm (lie 3, {'h::.pk:r S iA Subc!::[tptcr' B of' d:'~,z Code {~l~e "Act:"); Wit ERi~AS, ()wnc' ,al i! be ~i"~c o.~sncr~, as {:,C thc F:/f~'cctJvc Dale fas here[ha. Der define{:[), whk'h ov~n,a~sl'~ip is a conditk,] I)rC'.cc'dcnt, i~i"ceM:i.!in nmi I::,ropcr~y, more mcn~ ~}r al I p'uq)oscs (~i~c U~rcm,]ses'') located cn,.~rc~v w~l.h~n h, 1 s Zone ~:.s o[~}:c WHEREAS, o]: [he 6th d:a.'.,' oF ALL?:S:~ '2()()3., OWnC: subn:~:!cd at: appJ:icaLi(:m fbr thc %Wq:::1ical. i<:m lb' i:a:x: Ai::::tcmcnf'): which: is al[ached ]'~cre[o and' crone c a.s ]{: x h i b i :: 'W" sh:'lii:ar ~uidclincs sra.: cfi .::ria: "'~',: ...... ~ ' [:l ll:i has I::<::c:n l:'trn :si: c(: hv ~lc', C:i~:. ii: thc ]'::: m: :n e :r mid b: thc :imc ]:xxscr:ibod I 0~': [~bli!1OiTlCilt :;,SL J2~r[[1 L _~ : , . :-:. j ,-.: .<. ] A:n al')atc:!ilC:i:d cq u:~:i to ':: X :::, Of (7:i['?' .... ~" invc',stmc::Ls resulting: in an inc~c'.:u~c oF assessed ~aluc o:1' rca[ pro:>ertS' caicd on the P'rcm~ses bu~ oliiy i:[ sucl'~ 'increase is a~ ]cas~ $i 5~000 000 over ~hc as- sessed yahoo o~'thc Prcm~ses and tangible persOlll[l p~'op¢l[} (cxcJm[ n~ ~nventor}' ax] sL~ppl~es)Iota[cd o~'~ ~he Prcm~ses as oi~Jm~t~ar'y [., 2003, ~Sm'a period [t' such increasc in assessed value is ~ess ~hall S]5,000,000 thc rcdu. c~icm, bca:~s to Lhc comex-q)latcd 5i 5,(~,,00,000 increase oF assessed Fo~-cxm!p]c, shouk[ abe increase h assessed value be S]2.0[]ffL0(.u[} do!Jars [:)ilslaSC Oils Abatc:nsent w[!l be 80% o~" 35% or 28%. ['such inet,case m assessed perhx[ of' ~::',sr vcm-s. ~!c~ts b, and iall~}{b]c ps~sol/~al plopcrlx (oxcJ, udinS ~qvc[',~[o~,x ~xx~ $~,~?p]~cs) lo.- is loss ~l"::m 520,000,000 bt.:.~ more tha~ 515,000,000 the Phase 1"'we Aba[cmci~[ wil~ l::,c !'ed[!{:od by ~qe ?e~'¢c ~[ decrease thai thc reduc:ion bears ~o ~.hc como[x- Page 3 ill asses~cd value be S~8~0()0,0(}CI, dollars Lhe Phasc Tw<) Al:,atcmen~ ',A'i J be 90% oF35% <e' 31, Px~se ()~c Al",atem::mt and thc I~imSc 'l~wo :AbaK'mc:JL is a~ leasl S30 (~X'}, 'Cra(L fb~ Q,A ner~s [ssu,:u:x::c,. oC ~i'~c C:() ~br thc Pre. m scs ("Phase Th:fcc Aba~crr~cr~'). ~t;~ s~. c~ ~:' '~'' :)~, :J~: I)Ci7 COB; ~.cc.[~a,::C ~ ~ l~'~0 1?C(].LiC- ~,a.c ]"~c ~)7 f'r'(' FX':)I' cl<,)~ 's 110 ])]Iasc ~,]a,~.. ~ results ~[',i au: ~:n<::easc ~n d:8 assessed ",,:duos conten:p]atcd b'? Sec:t Jori t,A..3 'be made [o .... :m~,_.:: or any co-ndi: on l',cv,:>nd :l::c ccq:u-c,l of' Owner, as scl ::x':t '~ [::m Sc:c::on XX[ ~:'cqce aL,~O V C-Il'kC H tiO!lerl thrcsho~ dcscr[bc~l iu !he App[icatic:,~: br '!'~.x set Jb~i: :l [~ il~e App!Jca!ion fi.'?r Tax po. sc:-; set ~L)rth ~:~ thc /F~x Ahuttcmcr~: At~pli'c;;:~iol;. ]~::t thc event of ~;uch tcmfin:'~t~on li~c Ow~cr fi)cd ~ pclJt[on fur ',-oI;',mtary ai)~:cx[~tk~n ~nl;o ~;I:~c CJ~.y any areas oF die Zone that arc not currci~tJv Page 5 Govcntn' ent (?ode arid the City Charter. Ore!let shaii ful]y cooperaie ,.vhh thc City so that such propers5 is annexed as quickl7 aa the l~,.v 1~. FA~I L.~I'~E 1'O MEET CO'NDYi'K)NS ibc Owner wl"~ich is Iocat;cd in thc Improve. n;~ents, o~cd the C';it},' !:o bccemc delmqu:cm and :fidis vah,~rc~'n, r'cai I],ropcriy or Imlgib',e personal property taKe, S; o1: (ii) any ot'/o,r conditions of lhi:s curs, thc City sh,?[ll give ()whet writlon notice oF strcln Condition Fa. ihn-c and if' thc CT,:7, ndition ]'::al Im-c l'~as not been cured or sa'iisfiod x',,iil; i~= ~:dnety (90)days of s;aid wril~cl= noticz., lie: Abate.- ?,:c:n anti alii 17t. ilu]c years; provided, however, that if" such C;onditi<:m nor be fixfCi[cd or' rccaNurcd except: as h:uhcaLed under Section I1.B hcrco5 No!withstar~ding :ilLS.' Ibc [er~ of" :he Ah3~emct~L then ~l:~s Ats.,.r'ccn~cn:[ may be term~:~atcd hy the Cit,}', ~.F~ such cvc~L O',vr~e~ shx~i rcfi~d to [hc (.'J[y z~[I t;..tx zd:~:~!,eme~s !",rcvicms(~' ?"s?~ted a~d rccdvcd In ~1:6 eyelet ora C'om~d~tRt:,n F~filurc b}, ()~ ncr wl~ch ~s no{ c~Fcd or xsisf'ied as set [1[~ R [K'OR [DS AN D EVA ~lb:~,. I!ON O~' P ROi ROi A~:'n::cn"~c~[.Sucl~ ins['~eclio~:~ SMLII be doF:e ~'~ a ,,,.-:(>' r!':~i w~ll l'i. ot intcrIN'c with Owner's ~1 c:Ch)' (ouncil. (7: :X'I.{R,A]~, PR.()V ,S I sc.t f'?>q h !qo,,v<',is Foods BakeFies GF,oup, LLC L 9 I. ?? if,'l,,:-,,,~,'c~"s (..;ti~'cic ~: ] 5 East Fax No. 9 ~0.349, COL;NCT][. ~,,(. I H,,)!,.~ZA I. I()X e:~c:c ;Is F':x hil:::,Jt "(7'" VIi1. BOARD 01: ].'}iR[[(TI'ORS A,L I]()]:~.iZATION at~lx:,r'i:,:ed by coq:xx:',:~c ~'esoh.~tim~ to cxcc:~.[.c tl~is A~;rccmcm on 1oc:'l]=~lf o~7' Owner; ~ cer~',i:ficate IX. S [! %' I{ ]:',~ A [::!,'t [I '!' 5' In I]:c eye,si any secl:i,:m, st~bsec m:, p~:traa¢:'apl~, sumemx~, phrase oz' ',vc,~'d is held invalid, ;., x~clmncm app!~:e:s to a b]moa<:!e~' (iass fica c i;~ssiJicadm'~ of p~'oper~:y abated hcrcu:r'Mcr, and thc po:ri[oil (:,i'the ~eFm ~h,a~ is allowed i.~v law. :~s ibc oc~"::iJi:'atc is rcq~.~eslcd in co:mcctJo:: wiih ~ !)om: fide l:-,usi~'~css XI A.P'}'!i [( A i:}~:L E ]:.AW' A c cr'd [i ~d co p},' o ~" [l';ix A ?"cc m esi ~ ~;. z'c c oral ab it ~:'h ms s hail b c rcco~-d~'d h~ [:hc D ocd ]~<c-. c<x-~:~s oi" De~-~on ('o!.mt}', Texas., XI"\;, M UT L;'AL ASS ISTANC E icrnt~s ~tndi provis ohs o[-[]~,[s A?ccmeni: r, md to ~: ~d ~nd [.issisi tile]] ol.]!icr ~n c~u"ryin~, out such X No ~ h i n,~j~ ,c o,m i! ~ :,c:d [ n t I~ ~ s ,,~ ~j teem cn ~ ~ s ~ n t cr~ d ed b'/' ~ i~ c p art Jc s [oc rc ~lt e ~:~ i:' ~rmc :-s ~'~ i p o r AMENI) M ENT This Agreer~iel'~t may bc rnodi 6e<l by thc pa.r{.ies hereto io ir~clude odler provisio~s: which XXI. ~f~ because oF flood,. ~i,:c~ cxplosic~ '~s, ci~i~ disturbances, s~iil:~:es, ~,. a~'. acts o~ causes l:>cyo~s~d thc ccmt~'(:,l of ei~l:]e? P~Ir[y, c idler Parl:5' is II.o~. able ~o pe~:fo~m any or ~dl of :ils obli- "i'h ~; A~4rcc:mc:nt is cxccu, l~d eff:QclJi~c i. his Ii.;/~ day of'' Sc!>!ombcr, 2()(]3, (~:tlo ~E~'l'c:c~w: C1T 5.' ()F DFN'I ON. TI!X,?,$ ~: ~-t, BL:k, ] [,.. !q~,OI.:TY~ CITY ;VI:'I'(':)RN EY S'I ATE ON TEXAS C()~JNTY ON ~his day pcrsm",a~'~X sppeared Ii~u~h.~c Brock~ Ma}.o~' :liN-~l~c Clay of Dcmm~ kn~m..'n ~o me ~o bc ~l~c s[.rumcnl was cxccL~tcd ~hr !he ?L!q)OSCB al'itl consi{~ef's(j, oa1 thcrch~ expressed. Siatc o [" iox ss ~'[5 Commission ST ATE () F (:'JE 0 R G !A ~ Bci:brc mc:? thc undeI'sif:!.'ncd Karyi Dcn~on~ ]i...,LCL kn~}xs, n {o mo to bc thc Trcasu'cr of' Exhibit "A" ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE G. WALKER SURVEY ABSTRACT NUMBER 1330, IN THE M.E.P. & P.R.R. CO. SURVEY ABSTRACT NUMBER 950, AND IN THE D. LAMBERT SURVEY ABSTRACT NUMBER 784, DENTON COUNTY, TEXAS, AND BEING PART OF THE CALLED 27.4367 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 790, DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 8.773 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 797 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 3.000 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 804 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 79.4992 ACRE TRACT, DESCRIBED IN A DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 821, DEED RECORDS, DENTON COUNTY, TEXAS, ALL OF THE 3.59 ACRES OF LAND DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED UNDER CLERKS FILE NUMBER 96-R0014833 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND PART OF ANDREW ADDITION PHASE ONE AS SHOWN BY THE PLAT THEREOF RECORDED IN CABINET B, PAGE 12 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A FOUND RAILROAD SPIKE AT THE NORTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT IN EDWARDS ROAD; THENCE SOUTH 02 DEGREES 40 MINUTES 55 SECONDS WEST WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 698.28 FEET TOA FOUND IRON PIN AT AN ANGLE POINT IN THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 02 DEGREES 43 MINUTES 42 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACTA DISTANCE OF 1249.03 FEET TO A FOUND IRON PIN AT THE SOUTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT ON THE NORTH LINE OF THE 22.967 ACRE TRACT TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 95-R0000602 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 87 DEGREES 33 MINUTES 17 SECONDS WEST WITH THE SOUTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 622.20 FEET TOA FOUND IRON PIN AT THE SOUTHWEST CORNER OF THE 27.4367 ACRE ANDREW TRACT, THE NORTHWEST CORNER OF THE 22.967 ACRE CLARK TRACT, THE NORTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT, AND THE EASTERN MOST SOUTHEAST CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 19 MINUTES 02 SECONDS WEST WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 22.967 ACRE CLARK TRACT A DISTANCE OF 472.97 FEET TO A FENCE CORNER POST AT AN ANGLE POINT IN THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHWEST CORNER OF THE CALLED 0.942 ACRE TRACT DESCRIBED IN THE DEED TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 99-R0000310 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 03 DEGREES 01 MINUTES 21 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 0.942 ACRE CLARK TRACT A DISTANCE OF 224.75 FEET TOASTEEL PIPE AT THE SOUTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 56 MINUTES 40 SECONDS WEST WITH THE SOUTH LINE OF THE 3.59 ACRE ANDREW TRACT A DISTANCE OF 218.61 FEET TOA FENCE CORNER POST AT THE SOUTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE SOUTHEAST CORNER OF THE TRACT OF LAND DESCRIBED IN THE DEED TO BETTY JOHN ROBERTSON RECORDED IN VOLUME 2423, PAGE 932 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 01 DEGREES 47 MINUTES 13 SECONDS EAST WITH THE WEST LINE OF THE 3.59 ANDREW TRACT AND THE EAST LINE OF THE ROBERTSON TRACT A DISTANCE OF 683.38 FEET TO AN IRON PIPE AT THE NORTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHEAST CORNER OF THE CALLED 3.980 ACRE TRACT TO KENNETH D. OWEN RECORDED IN VOLUME 763, PAGE 137 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS ON A SOUTH LINE OF ANDREW ADDITION; THENCE NORTH 87 DEGREES 39 MINUTES 54 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH LINE OF THE OWEN TRACTA DISTANCE OF 363.71 FEET TOA FOUND IRON PIN AT AN INNER ELL CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST WITH AN EAST LINE OF ANDREW ADDITION AND THE WEST LINE OF THE OWEN TRACTA DISTANCE OF 397.16 FEET TOA FOUND IRON PIN; THENCE SOUTH 39 DEGREES 11 MINUTES 57 SECONDS EAST WITH AN EAST LINE OF ANDREW ADDITION AND THE SOUTH LINE OF THE OWEN TRACTA DISTANCE OF 382.68 FEET TOA FOUND IRON PIN AT THE SOUTHERN MOST SOUTHEAST CORNER OF ANDREW ADDITION AND THE SOUTHERN MOST SOUTHWEST CORNER OF THE OWEN TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 46 MINUTES 12 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD A DISTANCE OF 26.57 FEET TOA FOUND IRON PIN AT THE SOUTHERN MOST SOUTHWEST CORNER OF ANDREW ADDITION ON THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD; THENCE NORTH 39 DEGREES 14 MINUTES 16 SECONDS WEST WITH A WEST LINE OF ANDREW ADDITION A DISTANCE OF 412.02 FEET TO A FOUND IRON PIN AT THE BEGINNING OF A CURVE TO THE RIGHT; THENCE WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 26 DEGREES 11 MINUTES 57 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 1287.10 FEET (CHORD OF NORTH 26 DEGREES 10 MINUTES 09 SECONDS WESTA DISTANCE OF 1275.92 FEET) TOA FOUND IRON PIN; THENCE NORTH 13 DEGREES 00 MINUTES 38 SECONDS WEST CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD AND THE WEST LINE OF ANDREW ADDITION A DISTANCE OF 1221.59 FEET TOA FOUND IRON PIN AT THE BEGINNING OF ACURVE TO THE LEFT; THENCE CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 09 DEGREES 53 MINUTES 43 SECONDS, A RADIUS OF 1959.24 FEET, AN ARC LENGTH OF 338.37 FEET (CHORD OF NORTH 17 DEGREES 58 MINUTES 31 SECONDS WESTA DISTANCE OF 337.99 FEET) TOA SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" ON THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD ALONG SAID CURVE HAVING A DELTA OF 01 DEGREES 17 MINUTES 13 SECONDS, A RADIUS OF 540.00 FEET, AN ARC LENGTH OF 12.13 FEET (CHORD OF NORTH 66 DEGREES 07 MINUTES 51 SECONDS EASTA DISTANCE OF 12.13 FEET) TO A SET "X" IN CONCRETE AT THE INTERSECTION OF THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AND THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 27 DEGREES 41 MINUTES 50 SECONDS EAST WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 147.27 FEET TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE CONTINUING WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD ALONG SAID CURVE HAVING A DELTA OF 59 DEGREES 01 MINUTES 36 SECONDS, A RADIUS OF 330.00 FEET, AN ARC LENGTH OF 339.97 FEET (CHORD OF SOUTH 57 DEGREES 12 MINUTES 38 SECONDS EAST A DISTANCE OF 325.13 FEET) TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE SOUTH 86 DEGREES 44 MINUTES 08 SECONDS EAST WITH THE SOUTH RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 1797.84 FEET TOA FOUND IRON PIN; THENCE NORTH 03 DEGREES 30 MINUTES 26 SECONDS EASTA DISTANCE OF 35.49 FEET TO A FOUND RAILROAD SPIKE IN EDWARDS ROAD ON THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 88 DEGREES 03 MINUTES 58 SECONDS EAST WITH THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 172.15 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 91.921 ACRES OF LAND. C~ty of Denton A b ate me n t App'l~ca ('[TY OF DENT()N~, TEXAS 'ihun'm,~,:ill~, G& :?f: ~hovi :-e a d ~ox=ol,.b~? ,;::,I pi.:im ,,,:,l:~c:~hx: s. c:io:~ r.~:: ,~ ~:! !e ocar i~u'i..~ o',er Lh:c pas: !5 :,ca:rs. [Iem 2 - Piarlt C:tii i~i:'~[ i.c, ca io i EXH]Bi] A Legal Ce. scr'ipUon of Pro}sec' .......................... ; .......... __2__.: [ S i IL:) Exhibit "A" ALL Ti-IAT ,CERTAIN TRACT' OR PARCEL OF LAND LYING AND BEING SITUATED IN 'THE r~ .... :, bvALKER SURVEY ABSI"RACT NUMBER 1~.~, ~N THE ME.P.&P.R.R CO, SURVEY ABST'RACT NUMBER 950 AND LAMBERT SURVEY ABSTRACT NUMBER 784. DEN]'ON CQUNT,, ANDB~_IN: ¢.~ PART OF THE CALLED 27.4367 ACRE TRACT DESCRIBED iN THE DEED TO ANDREW CORPORA~I'iON, RECORDED IN VOLUME. ~9"~2, PAGE 790, DEED RE~.,O, RDS OF DENTON COUNTY TEXAS, PART OF THE b/~!,.LED 8.773 ¢,,,~¢RE TRACT DESCRIBED IN THE D~,, D TO ANDREW C. ORPORAT~ON RECORu- ~)ED IN VOLUME g, 12, PAGE 797 OF TI. ~E DEED RECORDS OF DENTON COUN'~'Y, iEX,<S, PART OF TH ACRE: TRACT DESCRIBED ~N THE DEED TO ANDREW CORPORAT'~ON, RECORDLD iN VOLUME 912. PAGE 804. O.F ~f'ie,.~E DEED RECORDS OF DENTO. NCOUNTY, TEXAS PART OF THE CA ] ED 79,4992 ACRE TRACT, DESCRI BED ~N A DEEE) T'O ANDREW CORPORA IT'ION, RECORDED VOLUME912, P~,,GE821. DEED RECORDS E. EN~ONCOUNTY, ;EXAS. ALL OF: TFIE d,5~, ACRES O1::: LAND DESCRIBED IN 'F~..iE D,:.. E D TO ANDREW CQRPORAT:ION, [-,ECORDED UNDER CLERK._ F~L.E NUMBER 96.-R0014833 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY. TEXAS, AND ,PART OF ANDREW ADDITION PHASE ONE AS SHOWN BY 'I'"I-.~E PLAT THEREOF REC~,r{D,._D ~N CABINET B, PAGE 12 OF TIdE :P;LAT RECORDS OF DEN'[ON COUNTY, TEXAS AND BEING MORE PARTICULARI. Y DESCRIBED AS FOLLOWS: B~:C,!NN! N,..: ~,,[ t..,,, FOUND RAILROAD SF'IKE A'I'" T~.,iE NOR'"' 77,~ FiEA.¥T' ~ CORNER. OF THE 27'.4367 ACRE ANDREW TRACT IN EDV'VARDS ROAD' THENCE SOUTH 02 DEGREES 40 MINUTES 55 SECONDS WEST WiTH THE E. AS'I' LINE OF THE 27.4367 ACRE ANDREW TRACT A DIS T'ANCE OF 698.28 FEET TQ A FOUND iRON PIN AT AN ANGLE ?OINT iN THE EAST LINE O1: TH,., 27,433.,,' >,~,RE ANDREW TRAC:T'; THENCE SQUTH i' '~ ,.}.,.. DEGREES 43 I'vIINU";' ES. 42 SEC:ONDS WES'] CONTINUING WITH TIdE EAST L;INE OF THE 27,4367 ACRE,-ANT';) TRACT A DISTAhlCE .O!:: 1249,03 FEET TO .A I:::O. UNEI iRON PIN AT THE SOUTFtEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT ON "f~ !E NORTH LIN;E O'F THE 22 P67 A.._,.RE TRACT TO .JULIE: K. CLARK RECORDED UNDER CLERKS FILE NUMBER 95-R0000602 OF 'T!~E REAL PRO, PERTY RECORDS OF DENTON C ' ' ~ "" ~,.,OU NTY. TEX/',,S, THENCE NOR'~ I,,t 87 DEGREES 33 MI'NUTES I7 SECONDS WEST WFI'H TI.dE SOUTH LINE OF THE 27,4367 ACRE. ANDREW TRACT' A D~STANCE OF 622.20 FEET TO A FOUND IRON PIN AT THE SOUTHWEST CORNER OF THE 27,4367 ACRE ANDREW TRACT, T.HE NORTtdWEST CORNER OF THE 22.967 ACRE CLARK TRACT, THE NORTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE EASTERN MOST SOU'FHEAST CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 19 MINUTES 02 SECONDS WEST WiTH THE EAST L!NE OF TI,~E 3,59 ACRE ANDREW TRACT AND TI,iE WEST LINE OF THE 22.967 ACRE CLARK TRACT A DISTANCE OF 472.,97 FEET TO A FENCE CORNER POST AT AN ANGLE ?OIN~F IN THE EAST LINE OF THE 3,59 ACRE AN~DREW TRACT AND THE NORTHWEST CORNER OF THE CALLED, 0.942 ACRE TRAC'T DESCRIBED iN THE DEED TO gULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 99-.R0000310 OF THE REAL PROPERTY RECORDS OF DENFON COUNTY, TEXAS; THENCE SOUTH'. 03 DEGREES 01 M!NUTES 21 SECONDS WEST CON~'iNU!NG WITH lilE EAST LINE OF TIdE 3.59 ACRE ANDREW ~'[RACT AND THE WES'T LINE OF THE 0.942 ACRE Ct, ARK TRACTA DISTANCE OF 224.75 FEET TO A STEEL PIPE A'I YHE SOUTHEAST' CORNER OF THE 3..59 ACRE ANDREW TRACT ON TI,~E NORTH RIGHT, OF-WAY I.,,INE OF POCKR;JS PAGE ROAD;: '"[t-..~ENCE NO, RTH 87 DEGREES 56 MINUTES 40 SECONDS WEST WITH THE SOUTH I,.~NE OF THE 3,59 ACRE ANDREW TRACT A D]S'I"ANCE OF 2!8.61 FEET TO A ~:ENCE CORNER POST AT Tide SOUTHWEST CORNER OF THE 3,59 ACRE ANDREW TRACt AND T!-4E SOUTHEAS'i' CORNER OF THE TRACT O1:' LAND DESC;RIBED iN THE DEED TO BETTY JOHN ROBER'I'SON RECORDED 1N VOLUME 2423, PAGE 932 OF T].IE REA[... PROPERTY RECORDS OF' DENTON COUNTY TEXAS: THENCE NORTI'I 01 DEGREES 47 MINU FES !3 SECONDS EA.S"f WTH THE WEST LINE OF TIdE 3,59 ANDREW TRAC'T AND THE EAST L!NE OF TIdE ROBERTSON TRACTA DISI'ANCE OF 683,38 FEEt TO AN !RON PiPE AT T!'4E NORTHWEST CORNER OF T½E 3,59 ACRE ANDREW TRACT AND THE NOR]HEAST CORN.ER OF THE CALLED 3.980 ACRE TRACT TO KENNETH D. OWEN RECORDED IN VOLUME 763, PAGE 137 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS ON A SOUTH ;LINE OF ANDREW ADD!;TION;: THENCE NORTH 87 DEGREES 39 MINUTES 54 SECONDS WEST WI'I-~,i A SOUTt-.-I LINE OF ANDREW ADD;ITION AND TI..,~E NORTH LINE OF' T!dE OWEN TRACT A D!STANCE OF 363.7I FEET TO A FOUND IRON PIN A'[' AN INNER ELL CORNER OF ANDREW ADD!T!ON; THENCE SOUTH 03 DEGREES 03, M~NUTES -"-~ ¢ .... ¢,¢ U',_ SECONDS ¥',?E,.~I ~ ~ JTH AN EAST LNE OF ANDREW ADDITION AND THE WEST L~NE OF THE OWEN I M.~,C I A DIu'~,,,Nk, E OF 3~,., .16 FEET TO A FOUND ~RON PIN; THENCE SOUTH 39 DEGREES ! 1 MINUTES 57' SECONDS EAST WiTH AN EAST LINE OF ANDREW ADDITION AND THE SOUTH LINE QF THE OWEN TRACT A DISTANCE OF' 382.68 FEET TO A FOUND iRON PIN AT THE SOUTHERN MOST SOUTt!EAST CORNER OF ANDREW ADDITION AND THE SOUTHERN MOS1' SOUTHWEST CORNER OF THE OWEN TRACT ON THE NORTH R~GHF-QF-WAY LINE QF POCKRU8 PAGE ROAD; '1"HENCE NORT~..I 87 DEGREES 46 MINUTES 12 SECONDS WEST W!TH A SOUTH LiNE OF ANDREW ADDITION AND THE NORTH R.L_~C"HT-OF'.~WAY LINE OF POCKRU'S PAGE ROAD A DISTANCE OF 26,57 FEET' TOA FOUND iRON PIN AT THE SOUTHERN MOST SOUTHWEST CORNER OF ANDREW ADDITION ON Tb!E EAST RIGI,-t-r. OF-WAY LINE OF THE OLD M,KT RAILROAD; '[~,tENCE NOR'IH 39 [._,E(::,RE~.,_ 14 MINUTES 16 SECONDS. WEST WIT½ A I WEST LINE OF ANDRE,,~ ,ADDITION A Di c~AN,,.,E OF 4!2.02 FEET'TO A FOUND iRON PIN AT'THE BEGINN~ '¢' A NL.:~ OF CURVE THE; R~GH'T; l HEN~,;E WITH TilE EAS'T R!GH I-.¢~ -¢.¢,~*,'~ LINE OF THE OLD M.K,'r. RAIl ROAD ALONG SAID CURVE h,.,'/' ',fflN C..; A DEtTA ,OF 26 DEGREES 1i MiNUT'ESS'7 ~''' ''~ , '' * ~s. EGCNDS, A RADIUS OF 2814,79 FEET', AN h~RG LENGTH OF 1287.10 FEET (CHORD OF NORTI.~ 26 DEGREES10 MINUTES 09 ,~ECONDc~S~ ' '~" WEST A DISTANCE OF i275.92 FEET) TO A FOUND IRON PIN THENCE NORTH 13 DEGREES O0 M!NUTES 38 SECONDS WEST CONTINUING W~TH '"lh. IE EAST R!GHT-OF..WAY L~NE OF THE OLD RAiLR()AD AND THE WEST [!NE ,OF' ANDREW ADDIT!ON A DIS'"iANCE OF '!221.59 FEET TO A FOUND IRON PIN AT i'liE BEGINNING OF A CURVE TO H~ LEFT TbIENCE CONTINUING WITH THE EAST RIGHT, OF-WAY LINE OF THE OL, D M.K..F RA!LRO.ADAL. ONG SAID CURVE HAVING A DELTA OF 09 DEGREES 53 MINUTES 43 SECONDS,~ A RADIUS GF 1959,24 FEET, AN ARC LENGTH OF 338.3'7 FEET (CHORD OF NOR']'I,{ I7 DEGREES 58 MINUTES 31 SECONDS WEST A DISTANCE OF 337,99 FEET) TO A SE'I~ iRON PIN WIl"t-I A YELLOW PLASTIC CAP STAMPED 'METROPLEX 1849"' ON THE SOUTH RIGt.,IT-OF-WAY LiNE OF MAYHILL ROAD AS DESCRIBED IN TIdE STREET RIGHT-OF..-WAY DEED TO THE CITY OF DENTON RECORDED .IN VOLUME 4936 ;PAGE !84! OF THE REAL PROPERTY RECORDS OF DEN;TON COUNTY, TEXAS A~'[ ]HE BEGINNING OF A CURVE TO THE LEFT; THEN ._,b WITH TFIE SOUTH R1GHT-OF:.-WAY LiNE OF: MAYH!LL ROAD A. LONG SAID GURVE HAVING A DELTA OF 01 DEGREES Ii~ MiNU'IES 13 SECONDS, A RADIUS OF 540..00 FEE"I, AN ARC LENGTt't OF: 12.13 FEET (CHORD OF Nb_ RTH 66 DEGREES 07 M!NLITES 51 oE(,OND,:..b ~>,,., A [~ STCNE, c OF 12.13 FEE:T)TO A SET 'X' iN CONCRETE AT THE INTERSECTION OF THE SOL, TH RIGHT-OF,,WAY LiNE OF MAYftlLL ROAD AND THE WEST RiGi~-IT-O.F-WAY LiNE OF EDWARDS ROAD A8 DESCRIBED IN THE STREET RiGHT-OF-WAY DEEE] TO THE CITY OF DENTON RECORDED iN VOLUME 4936, PAGE 18411 OF' THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXGAS; THENCE SOU l"H 27 DEGREES 41 MINUTES 50 SECONDS EAST WIT't--',I Tt'iE WES'"'I' RIGHT-OF-VVAY LINE OF EDWARDS ROAD A DISTANCE OF I47,27 FEET TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED 'METROPLEX 1849" AT THE BEGINNING OF A CURVE TO THE LEFT; 'THENCE C,ONTINUiNG WiTH THE WEST RIGHT-OF..WAY LINE OF ED%"ARDS ROAD ALONG SAID CLiRVE HAVING A DELTA OF' 59 DEGREES 0! MtNU"-I"ES 36 SECONDS, A RADIIjS OF 330.00 FEET, AN ARC LENGTi"I OF 339.97 FEET (CHORD OF SOUTH 67 DEGREES 12 MINUTES 38 SECONDS EA~:: r A DISTANCE OF ,-,r.. . 3zo 13 FEET), TO A SET IRON P!N WITH A YEI..._LO',,¥ PLASTIC CAP STAM PE D "M ETROPL. EX 184,9'; THENCE SOUTH 86 DEGREES 44 M!NUTES 08 SECONDS EAST WITH 'THE SOUTH RiGHT-OF.,WAY LINE OF ED'¢L¥~,RDS ROAD A D!STANCE OF 1797,84 FEET TO A FOUND IRON PIN THENCE NOR'iH 03 DEGREES 30 MINUTES 26 SECONDS EAST A DISTANCE OF 35,4,9 FEET TO A I'OUND RAIl ROAD SPIKE iN EDYVARDS ROAD ON "'l"i iE NORTH LINE OF "rile 274367 ACRE ANDREW TRACT; THENCE SOUTH 88 DEGREES 03 MINUTES 58 SECONDS EAST WIT'il NOR'Iki LINE OF THE 27.4367 ACRE ANDREW '~'I' RACT A DISTANCE OF ~72S5 FEET TO THE POINT OF BEGINNING AND CONTA!NING IN 91 92~1 ACRES OF and ['~i cl",~'~"~ Wo,rkforce ~ Corn party Payr0!! Sa!ark-;d Adminis~rsii~'e ;'"i o'4 ry To L::: Adm;nis ralive Shcp ng Superi'ah::nc eh{ Total WorkForc, e ~ Company Pay roi! Work force Contrac(Labor $ 8 ni'i8io,~ ']" o ~a., $;:~riilation ppi r: g H0u~ly Saiaried ['ota', Total 'Work~orce, Contract Labor Toial All Positions Flowers Bakir~g Co of Bent:on,, LLC Proposed Workforce At S~a r~,, u EL..~ ~¢ o: Ay9 Ar","~ual P<q;ected Posiio n s Saiary :'al:,* roll 3,6 S 29,640 S ~,06~' 040 4 $ ,E,6,250 225,030 I 2 4 ,21!2 040 4: ':~ 84 G 220,0C0 78 350,503 ,~S 34,320 2'6 030 '75,625 55,000 50,000 S 50 800 65 $2,4;39.380 'I $ 4 []. 0,',)3 40 880 i i 248080 !6 $ 24,960 $ 39(?,360 2 $ 45,000 98:0(x') 18 29 S 737,560 94 $ 3/1,4,5,740 1:08 S 29,64.[~ !2 ,?~ 52,900 120 20 S 34320 S (;867:,00 6 $ 51,6:?0 3:0,020 26 996,420 6 S 26080 8 a56000 4 $ 75625 $02,503 ! 0 45a,500 ! ;58 I S 55 0[)0 S i ¢ 50,030 ¢~ s.8 (:00 S 5,395.840 32 S 24,968 S 798,720 3 S 45,00© i35,000 35 933,720 58 $1 469,720 216 $ 6 865,580 20 S 28:S00 S 416.000 2 3 ,c ,,'~ ,::-":% ;,17 (u . lobs ~ba:~cd on las: rc?r~cd B:.~l<,a' ,~s Group is of~L'ff~n.~ t:o p,.rchas~ ~.]~..,~ buiidi~U4 m:d ad.jcdning rc, a~ l'X-~:l:x:rt), Ibc i:,uildJns: b:2<cr>, po:dfions ~o thc dr',. This ("oinn:~ss~,,>n (S.I,;C} f~[~:~s i',n' otlr parent c(x~?a~t). ~:'k>~crx ]::oods (.N¥~]{,: ~"],()L '~c arc comm~i:ted io bcintx ~l'x: I':¢crriicr b3k[rU~r company in tlic country. Ou~' phi]osop!~) is to I:m id and main!ai~ huffy ~mmm~':~:cd and c }i,ui,u r'; ;,::fi<cries. ~'hcs z op~rm o '~s rcquirc a ]'fishl> ski]lcd work Ib~cc in ca:rain m:'cas of :he opera,ion, !:},(:..m c,u~ I:)al<crics m'u ?ncraliy :'ccyclcd irilo ohcr ]]~'~:.<;]~<:'is~ such as anirna! J'ccds, dsereb} m~x:uJ.:~.cd h)mos~ :rc~ulal. ory ;.q.~cn,,:ic>~. ']"hcrc[bru., ~hc dr>: can cx?c[ a x~dlq~x.~, n air~ed and Foods ?,akcriss Group cxpcc[s to inili~:~[15 Lnvcst a!:~?roxinu!!ely S4t.O milli<.m ir', ibc hi:cai c~>nlnu:or~., ',',ix), m<:,r,: ] key '[]:~ar} ]t;:?~. ',,vi~ buy 'r(::,rn oca[ sttpp)icrs. 'l'h[s :l:)rqcc[ pro,,~[('lc s~z]:t~i]ca!'~ inco!:;"lc to [f:~c loc;~ s:~?p]).c]:iai[~. ,~:~ ~:cd.. ~c arc c<',mmi~cd to mx:cs i:n 'l. hc carl.} )car.¢ ~>l' opera~k)n will bc vha[ ~'~ this ncx~ bakco% ~u. cces. s. We es~ima~c~ using c(.,s~, as ,,alu¢, thc abatc.ruca, t to bc $ 272,7fi6 (S56,186 Ci.b', 82S,520 Co'u;my and $ 19[,050 beneJits to r. he Demon commurtity--~he e!in-ti~atio~:~ of an abandoned b'u [dh'~g; 8:~c crcatio, n of IJq,xl prides i tse!Sfo:t~ being a go~d cc,¥pm'ate of I)c.m. on. 'Ibc ~r~x aba~:c.mcm ,,vt arc rc'cBtes~ing ~il boil0 ensu='c a slz'ong stari-up (bt our D Exhibit C AN ORDIiNANCi:' AUilIIORiZ[NG THE MAYOR ]'© EXECU]E A TAX AI3ATi!Mti:i;N]' AGR[~EMF~N'i Wi'l I-[ FLOWERS BAKING CO~ OF DEN'i"O~ LLC: SETTING FORTq:I TI:-iE REQUIRED TERMS O1; i'tlE I"AX ABATliMi}N'I; AGRF;I:;Mi'iNT IN AC(T)Ri)ANCF, W[';["ll; ]'lIE 'H;I'iMS OF CIiAFI'ER 312 OF' TIlE ']'EX AS FAX COD]::.; SE,'I i!NG TIlE VA, R]01./S CC)NDI]'IONS PRECi]D[[N"[ TO FI.OWERS BAK!NCi CO, OF i,LC !:tECEiVING file TAX ABATEMENT: PE'i, OVIDINCi FOR A Si~.VBRABiI.ITY Cl. AUSE; AND ]qiOVt DING AN IZF[;EC]'I V E DA l'E, d~'~ nee ~ il h 'I'ex, Tax C ode~.,~ ~ ~ 2,201 {.th e ~,Ac(')_ ll~e C it~. Ct>L~n c i passed O rd immce 'N~ ~ 20[)[~ ~ commercial/industr'ial rei=lvesm"~ent zo~e for tax abat,z, men[ {Ibc "Zone"). as a.,.ahori:xcd b5:1: tie 3,. Ciiapter 312. Subcl'apter I~ of thc Act; and ted aa'~ applieaio~, br t~'~x abalemem ~,ilh ~aritms a~mcJm"icn~s to Ihe, ( ? coi~.cernii~p I!'x~ cc,,ntem- [.15 (.; are cons[stent v, iXi~. encore-aging the deve[opllleJ"~[ of 1:he Zone kl accordance ,,~il.h ~i~c. p!=r. poses !:'m' ~s, crea'i:iio ~ and are il compliance with the [)entre] Tax Abatement Policy; and merit ,A?ee:l~ei~t ',,~i8~ b'lo;,,ers Bakirtg Co, of I)e~!t:on, [..[.C:; NC)W. l'tiE COLNC L Of' TI Il; C1"]'¥' O1:' DI],NI'ON I,[I I.:~! BY ()Ri)Al NS: SBCT[ON i, Th:'lt the ii:ridings contained in tho preamble ~o his ordi!'iat'!ce are !!'m,;t a;TxJ COl'rt~:ci arid ar<.: adopted ,as a i'x,.a of Ii~e wlJole m'tii mince.. iscs.: a.s irJ<iic:~i:ed by ~: lowers Baki~'~g Co. o1:' i),:mom IJ.,C are co~sistest dcx elofimcn[ o[' d~e Zo:n~ in aCCOlX:Jal:lCe with d~e lxlrposes of ks creation aad are in compli- 'ihat tile Cii,', C('amcit :iiads ii'mi, l:he in~p~'ovements smagha bY Flowers Bakkg Co, of [)ct'lioli. er~tered imo v~h;!~ bowers B~kii~g Co.. of Denton, I..,.LC~ da~e on wl'dch the Chy Counci~ co~ idered I:his ondJr',axce. :.m,d x~ !~,~:r' ~]~:,~ ~'~e ~.~vcnlh day bcJbre ~b:' da~e d'~e C it) enters, inEo a Tax ,Ah~tte~ e~:~l Agrccme,~ v~ih [qowc]-s, BaHn:z Co, of Den;ton,, LLC~ ~h,a:t the City Ma::lage~'. ~'ougll ~)e D~recEor of [:::co~mn~c Dcvc~opmcn, i, who are hereby des~gnaaed and atad:~orSzed b). the CiJ? Ce mcil to. g~vc m,~ch noiicc, dc,Jiwxrcd ~o the p~csidh~g o~t]ce]' oJ d:te ]De~:~ton: h'idepende~'~t Schooi Distr:ic~: and Den[om'J Cour![y a v, rlt~cn ti;ce d'~a~ d'~e City k~te~'~ds to enter i;nu:~ [his Tax Abal:cm~en[ Agrcemcm with ]:]o',',-~rs C:o~ of Denton~ [...[.C. a~d that ~hiF, [tot]ce ~ch~.do:] a cop3 o I: ~!~L~ pre, posed Ag. roentgen1: in substa~t~ia]]y ~he J:brm at~ th,z Tax Abaktm~m~ ABrc:cm¢.nl ~:~[~ched i:o ~i]is ord[- dal:'iCe ~[[[~: ~, I ~.~[ ] o["i, he Act ~:md c~ea~ed Ti:le, Ci~? CoLmcil ]i[ic]s I:hL~t thc prqiec[ w~i})~n RcMvcs!mcm Zone No~ VI is a r'edeve[opm=er~t o[' an e,:~.is:~i~g b~sines, s as del'h~ed in the Fax A hm,,u.~=nc:n! tM!icy m~ rcquh~c~ additkr, n=a! inoe~-, :md i~e Cir, y Cou~:ci] hereby w~iws d:~e mi ni~u~'~ tl!re:¢i:o]c[ req~drc':mcm wifi',b !he ?~:~!icy by reDrence as [:;xh. ibit: '~A'~ (the 'q'ax Abatement izod lo CX. eCL~tC the Tax Abaterne~l Agrcc~ne~:~l v,'id~ Fh~we:rs B~iki[!g (~o, o~' Derl{Ol:l LL(~, il:~ sub- i~sp~c~t au~tit, a.nd e~a ua~e ~l'~e p~om'~ss, of~ [::h)wcrs: ' ~'' ~' word i~ ~hi, s ordinance, or application iJ~ereof to an5 perso~ or cir,aums~ancc, is held: iuwdid b> ] EN >,~] ]:11:!.R \V.Ai .'i F;RS, (]1:1¥ SE'(;]: R i i l!; B B IL;, R l', l .,. P 1~ (') i .i i Y. (; I '!'Y ¢'%'"r () R N h: Y SI~;C I::(ETAI~Y'S CER]IFiCAI'E Secrc{ary and General C<} ~.~ r~o~aS C ~ of [:qowers ] oods. ]nc,, a (}corgia. Co'~ol-alioN 0l'!e O;rporati~m") and that, ~.~.$ such, ! am aud~orized to cxccu[c and de}iver ibis Secreta~'y's cop} el:' lbo -esolt[~ions of thc boazd o ~' d ircca, ors o ~5 d'~e Cor[)oral:J. on al}pro~ lng [1~c cXeCL=~ior~, dc~i very a,~nd pcr'(bm'~.ance o [ the Agreemel:[ oF S ale a]sx[ Pu rchas¢~ da[cd as o [' May 21,2003, by and bep,vccn ];lo~.~ ers Baking (,il:~ ,,[" l}en!s,~], I.L,C (as dcsigrta~cd ~'~:ssixnee of 'IS'lowers !~'oods PLlrChasc Agreem ell t, Such ~ osolt~tions were dui y adop!.cd by thc board of di rectors o ~" Ibc hereof. IN WITNESS Wli EREOI:, the url. dersigncd has execrated ti:lis. Secretary's Co~'Li iS;cato as o I"'thi s 25u da.y o'? August., 2~e3, ['he tHldC:rsigrle(l hereby certifies dl. ar ho is thc duly eiected, qu~dilScd and acting Senior Vice Prcsi. den~ a.~td Chief Financia~ O85ccr of d:'~e Coq>oration and I:'~crcby ('h. rther certifies EXHIBIT <o rp oration. :rc~;,~x~'~ r~ th ~ ~'>u rcl~a se by B ak cfi es o ¢ c er~:a~ n r~ al pro p cr~?, (and imp new h;: kcr'~ :)~ [-.~.l~c~ ~,~.. be. ::u~d. J~crela}.' ~s, m~thorizcd and c:m'?o~ ered to execute: such p ors o r do c :~r '~c~;s or I h e d o[ n ~ b y ]:'d:m n, h c:r ~':,r ~:h em o~:* any act in c o~ m:';ccd o,u, w~t h thc l:brc ~o i n ~ m at (ers s h ;~ I/c o n c [ u s iv,c I y cst:~ h I [ s h :h [ s, h c~: o r d:~ ci r a u i i:'~ o fi I: )' i h e l'e [:5 ;~nd each o F xuch ::~cdons hcrcby is. m ::~1~ rCSl:)ects fa[iii;cd, cc:m [ir-:n:~ed arm approved. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCMACM: September 2, 2003 Public Transportation Jon Fortune, Assistant City Manager SUBJECT Consider approval of a resolmion of the City of Demon, Texas encouraging residems of the City of Denton to vote at the Sales and Use Tax Election for the Denton County Transportation Authority; and providing an effective date. BACKGROUND This resolution was requested by the Agenda Committee to be put on the Agenda. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS ENCOURAGING RESIDENTS OF THE CITY OF DENTON TO VOTE AT THE SALES AND USE TAX ELECTION FOR THE DENTON COUNTY TRANSPORTATION AUTHORITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS The DeNon County Transportation Authority (the "DCTA") was created by House Bill 3323, approved by the 77th Texas Legislature and signed into law by the Governor, in 2001; and WHEREAS, Demon County and City of Demon voters established and confirmed the DCTA on November 5, 2002; and WHEREAS, a sales tax election is being held on September 13, 2003, with early voting taking place currently, to adopt a 1/2 cent sales and use tax for the DCTA in the cities of Denton, Copper Canyon, Corimh, Double Oak, Flower Mound, Highland Village, Lewisville and Shady Shore. NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The DeNon City Council encourages the residems of the City of Demon to exercise their rights and make it a priority to cast their vote for or against the 1/2 cent sales and use tax to fund the DCTA and its transportation service plan. SECTION 2. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __day of ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY EULINE BROCK, MAYOR AGENDA DATE: DEPARTMENT: CM: AGENDA INFORMATION SHEET September 2, 2003 City Manager's Office Mike Conduff SUBJECT mo Consider a motion to reconsider nominations/appointments made to the City's boards and commissions at the August 5, 2003 council meeting. Bo Consider nominations/appointments to the City's boards and commissions including but not limited to the Community Development Advisory Board, Historic Landmark Commission, Library Board, and the Public Utilities Board. BACKGROUND At the August 19, 2003 council meeting, Council Member Redmon nominated Cassandra Berry to the Community Development Advisory Board. This nomination, along with his nomination of Shea Norris to the Library Board, is scheduled for approval at the September 2, 2003 council meeting. Following the nominations by Council Member Redmon, Council Member Kamp motioned for a reconsideration of the appointment made at the August 5, 2003 meeting with regards to Place One for the Public Utilities Board. As a point of clarification, Council Member Burroughs nominated Cassandra Berry at the August 5, 2003 council meeting to the Public Utilities Board. That nomination, included in a group nomination by Council Member Burroughs, was approved by a 6-1 vote of Council. Respectfully submitted: Jennifer Walters City Secretary