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HomeMy WebLinkAboutFebruary 4, 2003 Agenda AGENDA CITY OF DENTON CITY COUNCIL February 4, 2003 After determining that a quorum is preseN, the City Council will convene in a Work Session on Tuesday, February 4, 2003 at 4:30 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: Receive a report and hold a discussion regarding the Duncan and Associates Impact Fee Study. Receive a report, hold a discussion and give staff direction regarding the draft Mosquito Surveillance and Response Plan produced for the City of DeNon. o Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of February 4, 2003. Following the completion of the Work Session, the 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 GovemmeN Code, as amended, as set forth below. 1. Closed Meeting: mo Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under TEXAS GOVERNMENT CODE Section 551.086. Consultation with Attorneys -Under TEXAS GOVERNMENT CODE Section 551.071. Receive competitive electric public power information and market information regarding the issue of conseN, by the City Council of the City of Denton, Texas, to approval of the sale and transfer by the PG&E-related eNities to the City of Garland, Texas respecting the Spencer Station Generation Plan and the Lake Lewisville Hydroelectric Facility, both located in Denton County, Texas. Further discuss, deliberate consider, provide Staff with direction, and take final action regarding the proposed sale and transfer regarding the above matters. Discuss and consider the legal ramifications and legal position of the City by conducting a consultation with the City's attorneys in order to obtain the advice and recommendations of the City's attorneys concerning these issues; where to discuss such issues and matters in a public meeting would conflict with the attorneys' duties and professional responsibilities to their client, the DeNon City Council, under the Texas Disciplinary Rules of Professional Conduct. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT 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 City of DeNon City Council Agenda February 4, 2003 Page 2 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, February 4, 2003 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, DeNon, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE 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. CITIZEN REPORTS A. Receive citizen reports from the following: 1. Vera Woods: hiring practices of the City of Demon. Peternia Washington: issues with the Parks Departmem and hiring practices of the City of DeNon 3. Willie Hudspeth: concerns of Southeast Denton. 4. Nita Acton: new revenue for the City of Demon. 4. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the 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-X). 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. City of DeNon City Council Agenda February 4, 2003 Page 3 If no items are pulled, Consem Agenda Items A-X 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 Consem Agenda. Consider approval of the minutes of January 7, 2003, January 13, 2003, January 14, 2003, and January 21, 2003. Consider adoption of an ordinance of the City of DeNon authorizing a Professional Services Agreemem in the amoum of $80,000 between the City of Denton, Texas and Greater Denton Arts Council for the selection, purchase, and placement of public art within the City of DeNon; providing for the expenditure of funds therefore; and providing for an effective date. Consider approval of a resolution of the City of DeNon, Texas, approving revised City policies regulating the handling of cash by City employees; and declaring an effective date. Consider adoption of an ordinance authorizing the Mayor to execute an Interlocal Cooperation Agreemem between the City of DeNon and the City of Krum for the impoundmem and disposition of dogs and cats and the collection of fees pursuam to the provisions of said Agreemem; and providing for an effective date. Consider adoption of an ordinance ordering an election to be held in the City of DeNon, Texas, on May 3, 2003, and, if a runoff election is required, on May 31, 2003, for the purpose of electing council members to Places, 1, 2, 3, and 4 of the City Council of the City of DeNon, Texas, designating voting places and appoiming election officials, providing for bilingual notice of the election, ordering that an electronic voting system be used, making additional provisions for the conduct thereof, providing an open meetings clause, and providing for an effective date. F. Consider approval of tax refunds for the following property taxes: Name Reason Tax Year Amount 2. Texas Title Duplicate Paymem 2002 $ 4,665.71 ~S~i Q ~nt 4. Title Resources Duplicate Payment 2002 $ 577.41 K~th ~ ~ ~ ~ ~0025i998 8 6. Denton County Title Duplicate Payment 2002 $1,547.30 Consider adoption of an ordinance of the City of DeNon, Texas repealing Section 3- 17 of the Code of Ordinances, which prohibits the operation of ultra light aircraft at the DeNon Municipal Airport; and providing an effective date. Consider adoption of an ordinance of the City of DeNon, Texas authorizing the City Manager to make application to the Texas Departmem of Housing and Community City of Demon City Council Agenda February 4, 2003 Page 4 Affairs Emergency Shelter Grant Program and take all other actions necessary to obtain a gram under the Emergency Shelter Gram Program; and providing for an effective date. Consider adoption of an ordinance by the City of Demon, Texas abandoning and vacating its Sanitary Sewer Easement recorded in Volume 919, Page 96, Deed Records of Denton County, Texas and being located in Bellaire North, an addition to the City of Demon; and providing an effective date. Jo Consider adoption of an ordinance of the City of Demon, Texas abandoning and vacating its Drainage Easement recorded under Denton County Clerk Certificate No. 94-071419 in the Deed Records of Demon County, Texas and being located in Bellaire North, an addition to the City of Demon; and providing an effective date. Ko Consider adoption of an ordinance by the City of Demon declaring a public necessity exists and finding that public welfare and convenience requires the taking and acquiring an approximate 0.811 acre tract or parcel of land for a Drainage Easemem and drainage facilities being a tract of land situated in the William Bryan Survey, Abstract No. 148, Denton County, Texas, and being part of a tract of land as described by deed to W. J. O. Mullins, as recorded under County Clerk's File No. 97-R0083577 of the Real Property Records of Demon County, Texas; authorizing the City Manager or his designee to make an offer to purchase the property for just compensation and if such offer is refused, authorizing the City Attorney to institute the necessary proceedings for condemnation in order to acquire the property necessary for the public purpose of drainage facilities and installation thereof; and providing an effective date. Lo Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of water treatment chemicals; providing for the expenditure of funds; and providing an effective date (Bid 2914 - Water Treatmem Chemicals awarded to the lowest responsible bidder for each item in the total estimated amoum of $706,386). Mo Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of a chain link fence at the Water Reclamation Plato; providing for the expenditure of funds therefore; and providing an effective date (Bid 2934 - Chain Link Fence at the Water Reclamation Plato awarded to Hurricane Fence Co. in an amount not to exceed $64,785.75). No Consider adoption of an ordinance awarding a contract for the lease of desktop PC's, notebook PC's, software, peripherals, and services as awarded by the State of Texas Building and Procurement Commission Department of Information Resources (DIR); providing for the expenditure of funds therefore; and providing an effective date (File 2954 - Dell Master Lease awarded to Dell Govemmem Leasing and Finance in the amount of $176,153.95 per 6 months for a total of $1,056,923.70 including 36 months lease financing. City of DeNon City Council Agenda February 4, 2003 Page 5 Consider adoption of an ordinance authorizing the City Manager to accept an Imerlocal Agreemem with the City of Gainesville, Texas to authorize participation in various City of DeNon contracts for the purchase of goods and services; authorizing the expenditure of funds therefore; and declaring an effective date (File 2958 - Imerlocal Agreemem with City of Gainesville, Texas). Consider adoption of an ordinance awarding a contract for the purchase of Microsoft Server and Database Software as awarded by the State of Texas Building and Procuremem Commission through the Qualified Information Service Vendor (QISV) Catalogue Program; providing for the expenditure of funds therefore; and providing an effective date (File 2956 to SHI Governmem Solutions in the amount of $133,908 for the first year, $20,148 for the second and third years for a total amoum of $174,204). Consider adoption of an ordinance awarding a contract for the purchase of services, software, hardware, and annual maimenance for the installation, configuration, and support of an IP-telephony based Integrated Contact Distribution Solution as awarded by the State of Texas Building and Procuremem Commission (formerly known as the General Services Commission) through the Qualified Information Service Vendor (QISV) Catalogue Program; providing for the expenditure of funds therefore; and providing an effective date (File 2961 to Spanlink Communications, Inc. in the amoum of $109,946.00). Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maimenance for cominued vendor support of the Harris Public Utility Billing System and associated software modules available from only one source in accordance with the provision for state law exempting such purchases from requiremems of competitive bids; and providing an effective date (File 2939 to Harris Computer Systems in the amoum of $37,318.08). Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of a Diaphragm Chemical Feed Pump; providing for the expenditure of funds therefore; and providing an effective date (Bid 2927 - Diaphragm Chemical Feed Pump awarded to Environmental Improvements Incorporated in the amount of $57,850). Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment; providing for the expenditure of funds therefore; and providing an effective date (Bid 2936 - Fleet Heavy Equipmem awarded to Future Equipmem Co. in the net amoum of $175,246.14). Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of furniture for the North Branch Library; providing for the expenditure of funds therefore; and providing an effective date (Bid 2938 - North Branch Library Furniture awarded to the lowest responsible bidder for each item in the total amount of $262,166.92). City of DeNon City Council Agenda February 4, 2003 Page 6 Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of one 5 cubic yard and one 6 cubic yard rubber-tired loader; providing for the expenditure of funds therefore; and providing an effective date (Bid 2940 - Rubber-Tired Loader-5 and 6 Cubic Yard awarded to the lowest responsible bidder for each item for a total amount of $473,991). Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of one 32 ft. quarter frame end dump trailer; providing for the expenditure of funds therefore; and providing an effective date (Bid 2942 - 32 Ft. Quarter Frame End Dump Trailer awarded to the lowest responsible bidder in the amount of $27,995). Consider approval of a resolution of the City of DeNon urging the Texas Congressional Delegation to support providing funding for Presidem Bush's $3.5 Billion First Responder Initiative during the 1 oath session of Congress. 5. PUBLIC HEARINGS Cominue a public hearing and consider adoption of an ordinance rezoning approximately 0.4 acres from a Downtown Residemial 2 (DR-2) to a Dowmown Commercial Neighborhood (DC-N) zoning district. The site is generally located at 309 Fry Street north of Oak Street. Mixed-use multi-family and a restaurant are proposed. The Planning and Zoning Commission recommends approval (4-3). (Z02-0058, 309 Fry StreeO 6. ITEMS FOR INDIVIDUAL CONSIDERATION Consider an appeal from Ali A1-Khafaji regarding costs imposed for mowing fees in accordance with Section 20-72 of the City of DeNon Code of Ordinances in a hearing cominued from December 10, 2002. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. City of Denton City Council Agenda February 4, 2003 Page 7 CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of ,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. 02~04~03 WS#1 AGENDA INFORMATION SHEET AGENDA DATE: February 4, 2003 DEPARTMENT: ACM: Water & Wastewater Utilities Howard Martin, 349-8232 ~ S UBJEC T Receive a report and hold a discussion regarding the Duncan and Associates Impact Fee Study. BACKGROUND In Texgas, impact fees are governed by Chapter 395 of the Local Government Code (the Impact Fee Act). Under this statute, impact fees are regulated for the water and wastewater utilities. Imp act fees provide the means for recovering the cost of adding cap acity to the water/wastewater system to provide service to any new growth that creates a new demand/impact on the water system. In September 1998, the City of Denton through Ordinance No. 98-301, adopted Phase I Impact Fees for the water and wastewater utilities comp lying with the requirements of the state statute. The Phase I Impact Fees included costs for the construction of the Ray Roberts Water Treatment Plant, the 54-inch transmission line, and two storage tanks for the water utility. For the wastewater utility the impact fee included the cost of expansion of the existing Pecan Creek Water Reclamation Plant. Since the computer models for the water distribution system and wastewater collection system reflecting the new robust population projections through the year 2020 were not available, the costs of the new major water transmission lines and interceptor sewers and pumping stations were not included n the Phase I Impact Fee. In September 1998 when the impact fees were adopted, the Impact Fee Act required the impact fees be updated every three years. However, in the year 2001 the state legislature through Senate Bill 243, allowed the regulated entities up to five years to update the impact fee ordinance. As part of this update, the Water Utilities having completed the Master Plans and computer models for the water distribution and collection systems is including the costs of the major water transmission lines and interceptor sewers in the imp act fee assessments. For the five-year impact fee update, the City Council authorized Duncan and Associates, Inc. to prepare an updated impact fee study on June 18, 2002. The results of the impact fee update analysis conducted by the consultant are attached as Exhibit I. The study is based on the projected Land Use Assumptions and the 10-year Capital Improvement Plan for the water and wastewater utilities. The study includes each utilities capital requirements and the associated costs. The Land Use Assumptions were prepared by the PlanningDepartment and the 10-year Capital Improvement Plan was prepared by Alan Plummer and Associates. Costs were calculated based on the percentage of capacity used over the 10-year period. Those costs were then divided by the number of single-family equivalents (SFE's) to determine an appropriate impact fee for water and wastewater separately. After the impact fee study is reviewed by the Council a public hearing will be scheduled after 30 days from the time of the posted notice. After the public hearing Council will discuss approval of the ordinance imp lementing the new fees. REC O MMENDATION No action is required by Council at this time. Staff will bring additional information on February 11, during the financial forecasts, regarding the impact on rates based on the amount of impact fee app roved. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Capital Improvements Advisory Committee approved the Land Use Assumptions and the 10-year Water & Wastewater Capital Improvement Plan, as they relate to the Impact Fee Study, on December 18, 2002. EXHIBIT I. Impact Fee Study prepared by Duncan and Associates Respect fully submitted: Prep ared by: Howard Martin ACM, Utilities Jim Coulter Director Water Utilities S:\Our Documents\Miscellaneous\02\080602 City Council Agenda Memo re Flow PTL.doc 2OO3-2013 CAPITAL IMPROVEMENTS PLAN FOR WATER AND WASTEWATER IMPACT FEES DENTON, TEXAS duncan associates January 2003 INTRODUCTION ............................................................... 1 Legal Frame~vork ........................................................... 1 Gro~vth Context ........................................................... 2 Land Use Assumptions ...................................................... 2 Service Areas .............................................................. 3 Service Units .............................................................. 6 WATER ........................................................................ 7 Service Units .............................................................. 7 Demand Projections ........................................................ 8 Water Treatment .......................................................... 10 Water Supply ............................................................. 11 Cost per Service Unit ...................................................... 12 Net Cost per Service Unit ................................................... 14 Net Cost Schedule ......................................................... 15 WASTEWATER ................................................................ 18 Service Units ............................................................. 18 Treatment Plants .......................................................... 22 Lift Stations and Force Mains ................................................ 23 Interceptors .............................................................. 23 Cost per Service Unit ...................................................... 24 Net Cost per Service Unit ................................................... 26 Net Cost Schedule ......................................................... 27 APPENDIX: TEXAS IMPACT FEE ENABLING ACT ............................... 29 LIST OF TABLES Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: POPULATION GROWTH, 1970-2002 .................................. 2 METER EQUIVALENCY FACTORS .................................. 6 WATER SERVICE UNITS, 2002 ....................................... 7 WATER SERVICE UNITS, 2003-2013 .................................. 8 AVERAGE DAILY WATER PRODUCTION, 1988-2001 .................. 9 PEAK DAY WATER DEMAND, 1988-2001 ............................. 9 AVERAGE AND PEAK RETAIL WATER DEMAND, 2003-2013 ......... 10 ELIGIBLE PERCENT OF RAY ROBERTS PLANT COST ............... 11 ELIGIBLE PERCENT OF LAKE RAY ROBERTS COST ................ 12 LAKE RAY ROBERTS COST ........................................ 12 WATER COST PER SERVICE UNIT, 2003-2013 ........................ 13 WATER DEBT SERVICE CREDIT ................................... 14 WATER NET COST PER SERVICE UNIT ............................. 15 WATER NET COST SCHEDULE .................................... 16 COMPARATIVE WATER FEES ..................................... 16 COMPARATIVE WATER IMPACT FEE REVENUES, 2003-2013 ......... 17 Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: Table 24: Table 25: Table 26: Table 27: Table 28: Table 29: Table 30: Table 31: Table 32: Table 33: WASTEWATER SERVICE UNITS, 2002 ............................... 18 PER CAPITA WASTEWATER DEMAND ............................. 19 AVERAGE DEMAND PER SERVICE UNIT .......................... 20 WASTEWATER SERVICE UNITS, PECAN CREEK, 2003-2013 ........... 20 WASTEWATER SERVICE UNITS, HICKORY CREEK, 2003-2013 ........ 21 WASTEWATER SERVICE UNITS, CLEAR CREEK, 2003-2013 ........... 21 WASTEWATER DEMAND AND SERVICE UNIT SUMMARY, 2003-2013 . . 22 TREATMENT PLANT DEMAND AND CAPACITY, 2003 ............... 22 WASTEWATER CAPITAL COSTS, PECAN CREEK, 2003-2013 ........... 24 WASTEWATER CAPITAL COSTS, HICKORY CREEK, 2003-2013 ........ 25 WASTEWATER CAPITAL COSTS, CLEAR CREEK, 2003-2013 ........... 25 WASTEWATER COST PER SERVICE UNIT, 2003-2013 ................. 26 WASTEWATER DEBT SERVICE CREDIT ............................ 26 WASTEWATER NET COST PER SERVICE UNIT ...................... 27 WASTEWATER NET COST SCHEDULE ............................. 27 COMPARATIVE WASTEWATER FEES ............................... 28 COMPARATIVE WASTEWATER REVENUES, 2003-2013 ............... 28 LIST OF FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: DENTON POPULATION GROWTH .................................. 2 WATER AND WASTEWATER CCNs .................................. 4 HICKORY CREEK DRAINAGE BASIN ............................... 5 CLEAR CREEK DRAINAGE BASIN .................................. 5 TREATMENT CAPACITY AND DEMAND ........................... 10 WATER SUPPLY AND DEMAND ................................... 11 WASTEWATER DEMAND AND CAPACITY .......................... 22 I NTRO DUCTI ON The City of Denton adopted ~vater and ~vaste~vater impact fees in 1998.~ The current fees only cover the cost of centralized facilities, and exclude line costs. This study updates the ~vater and ~vaste~vater impact fees, and adds the cost of~vater transmission lines and server interceptors. It also includes interest costs, ~vhich are digible for impact fee funding under state la,v, but ~vere not included in the original impact fee study. Finally, it develops options for possibly dividing the ~vaste~vater service area into t~vo or three impact fee service areas. LEGAL FRAMEWORK Impact fees in Texas must be developed in accordance ~vith Chapter 395 of the Texas Local Government Code. The state la~v lays out very specific requirements for the technical development of these fees as ~vell as the procedures necessary for enactment of such fee programs. The Texas legislature made some significant amendments to Chapter 395 in 2001.2 The revised statute, highlighting the changes, is included in the Appendix. The major change ~vas on the issue of revenue credits. Credits against the impact fees for other taxes or fees that ~vould be paid by ne~v development and used for capital improvements of the same facility type as the impact fee are no~v required. As an alternative to performing a revenue credit calculation, cities can simply reduce the impact fees by fifty percent. Another change ~vas to increase the time betxveen mandatory updates from three to five years. The requirement that the fees be recalculated after the Capital Improvements Plan is completed based on actual costs and any overcharge fees refunded if the recalculated fees exceeded the fees being charged by more than ten percent ~vas eliminated. Finally, the number of public hearings required before impact fees could be updated ~vas reduced from txvo to one (txvo are still required for initial adoption). Revised impact fees based on this study ~vill not apply to lots platted ~vhile the current fee schedule ~vas in place. Chapter 395 states that the impact fee schedule that is in effect at the time a lot is platted is the one that applies to the property, regardless of ~vhen development occurs. This occurs through a process called "assessment." Assessment must occur at the time of plat recording, or, for property already platted or not required to be platted, at the time of development approval or building permit, ~vhichever occurs first. The statute makes clear that no action by the local government is required for assessment to occur. Essentially, impact fee assessment locks in the fee schedule in place at the time assessment occurs. Any subsequent revision to the impact fee schedules does not affect the impact fees o~ved for the development. ~ Ordinance 98-301, adopted on September 15, 1998, ~vas based on Duncan Associates, et. al., Cap/ta/ Improvements Plan for ICa/er and Icaste,xater Impact tTees, Ma)- 1998. 2 Senate Bill 247 xvas signed by the governor on May 26, 2001 and became effective on September 1, 2001. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #ltalFT, Page 1 G RO~afTH CONTEXT Impact fees are most appropriate for communities experiencing rapid gro~vth. Denton has experienced significant gro~vth in recent years. The City's population has gro~vn by about t~vo percent annually since 1970. Denton Count7 has gro~vn significantly faster than the state average, and ~vas the fourth fastest grooving count7 in Texas during the last year. The City's gro~vth has matched the very rapid gro~vth of the count7 since the year 2000. Table ! POPULATION GROWTH, 1970-2002 City of Denton State of Denton County Texas !980 Population (Census, 4/!/80) 48,063 143,!26 !4,229,!9! 2000 POPU!atios (Cessus, 4/!/00) 80,537 q32~976 20~85!~820 ~ G~6~ ~ i9~08019 Annual Growth Rate, 1980-90 3.3% 6.7% 1.8% o o ~i G~E ~ 99000 ~0Yo ;~ Annual Growth Rate, 2000-02 6.1% 5.9% 1.8% Source: Texas State Data Center (growth rates are compounded). LAND USE ASSUMPTIONS "Land Use Assumptions" is the term used in Chapter 395 to refer to gro~vth projections. It is defined as a "description of the service area and projections of changes in land uses, densities, intensifies and population in the service area over at least a 10-year period." The purpose of the Land Use Assumptions is to project the demand for capital improvements that ~vill be needed to serve anticipated gro~vth. The Land Use Assumptions must cover at least a 10-year period. The Capital Improvements Plan on ~vhich the impact fees are calculated must contain the projected demand for capital facilities required over a period not to exceed ten years. Since the t~vo must be compatible, both the Land Use Assumptions and the Capital Improvements Plan should cover a 10-year period. Figure ! DENTON POPULATION GROWTH !00 75,000 50.000 25,000 0 197~ !980 !990 200'0 A document meeting the above requirements ~vas completed by City planning staff in December 2002. The report contains 2003-2013 projections for population, &veiling units, nonresidential square footage, residential densities and nonresidential intensifies for the City's ~vater and ~vaste~vater service areas. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IHblFT, Page 2 SERVICE AREAS Chapter 395 lays do~vn a number of requirements regarding service areas. The Land Use Assumptions must be prepared for each service area. The Capital Improvements Plan, in turn, must include a description of the capital improvements and costs for each service area, based on the approved Land Use Assumptions. Finally, impact fees collected from development ~vithin a service area must be spent ~vith the same service area. The Texas impact fee enabling act, in Sec. 395.001(9), defines "service area" as: area wi/h/n /he co~ora/e bo,ndaries or ex/ra/erd/oria/jmisd/c//on.., of/hero/i/ica/s,bdi~is/o,/o se~ed 0/he ca, l/al /~ro~e~e,/s or fa~////es e~ans/o,s Oe~ed /, the ca, l/al poll/leal s,bd/~/s/o, or//~ The City has considerable discretion in the designation of service areas ~vithin its jurisdiction. As a general rule, the fe~ver the number of service areas, the better. Since funds collected from a service area must be spent ~vithin the same service area, the creation of a large number of small service areas ~vill restrict the flexibility of spending impact fee revenues and may make it difficult accumulate sufficient funds in some service areas ~vithin the five years allo~ved by la~v to spend them. The state statute specifically authorizes "system~vide" land use assumptions for ~vater and ~vaste~vater facilities. A Certificate of Convenience and Necessity (CCN) must be approved by the Texas Commission on Environmental Quality (formerly the Texas Natural Resources Conservation Commission) before services ma), be provided to properties ~vithin the designated area. The City's ~vater and ~vaste~vater CCNs include all of the area ~vithin the City of Denton, plus different areas of the City's Extra-Territorial Jurisdiction (ETJ). The ~vaste~vater service area includes all of the area ~vithin the water service area, plus two additional areas that are in the City's wastewater CCN but not in its water CCN. The ~vater and ~vaste~vater CCNs are illustrated in Figure 2. The service areas are required to be delineated in the Land Use Assumptions. The Land Use Assumptions identify the City's ~vater CCN as the service area for ~vater impact fees. The City's ~vaste~vater CCN ma), designated as a single service area, or it ma), be divided into t~vo or three service areas. The three potential service areas are the Pecan Creek, Hickory Creek and Clear Creek drainage basins. The Hickory Creek drainage basin is sho~vn in Figure 3, and the Clear Creek drainage basin is sho~vn in Figure 4. The remainder of the City's ~vaste~vater CCN comprises the Pecan Creek drainage basin. This report ~vill calculate ~vaste~vater fees under three service area options: (1) a single service area encompassing the Pecan Creek, Hickory Creek and Clear Creek basins; (2) t~vo service areas: Pecan/Hickory and Clear Creek; and (3) three service areas: Pecan Creek, Hickory Creek and Clear Creek. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #IblFT, Page 3 Figure 2 WATER AND WASTEWATER CONs LEGEND: ~ Ci~ Limits CCN B OUl~[¥: sewer only [~1 water& sewer DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #I~.FI', Page 4 Figure 3 HTCKORY CREEK DRATNAGE BASTN Figure 4 CLEAR CREEK DRATNAGE BASTN DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 DI~IFT, Page 5 SERVICE UNITS To calculate impact fees in accordance with Chapter 395, the groxvth in demand for capital facilities over the planning horizon must be expressed in "service units," which are defined in Sec. 395.001 (10) as: ...a standardized meas/~m of cons/~mption, /~se, generation, or discha~e a//rib/~tab/e to an individ/~al //nit (development ca/c/dated in accordance zv/th general[y accepted engineering orplanning standards for a pattic/dar catego~7 (capital improvements or facility expansions. Service units for xvater and xvastexvater impact fees are tTpically based upon the capacit7 attributable to xvater meters in the utilit7 system. The reason for this is that xvater meters are physical elements that are under the control of the utility and that limit the maximum demand of various users. The current service unit for Denton's xvater and xvastexvater impact fees is the "single-family equivalent" (SFE), xvhich is based on the size of the xvater meter. An SFE is the xvater or xvastexvater demand associated xvith the smallest xvater meter used in the system (3/4"), xvhich is the meter typically used by a single-family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger size meter. The City's current xvater impact fees are based on meter capacities from the American Water Works Association. In the opinion of the City's water division staff, the capacities as rated by the manufacturer that supplies the City's meters are more accurate for larger meters, and will be used in this study. Current and proposed service units per meter are compared in Table 2. Table 2 METER EQUIVALENCY FACTORS Current Factors Proposed Factors Capacity SFEs/ Capacity SFEs/ Meter Size (gpm) Meter (gpm) Meter 3/4" 10 1.0 10 1.0 ~ 5 2: 5 1-1/2" 50 5.0 50 5.0 80 808080 3" 160 16.0 225 22.5 2 ~Si 6" 500 50.0 1,000 100.0 800 8002000 2000 10" 1,150 115.0 3,250 325.0 Source: Current capacities are maximum continuous duty flow rates in gallons per minute for simple and compound meters from American Water Works Association, AWWA Standards C700, C701, C702, C703', proposed capacities are average normal operating capacities for T-10 residential meters and Tru/flo compound commercial meters from the Neptune Technology Group. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 #1121F1', Page 6 WATER The City's current ~vater impact fees, adopted in 1998, cover only the costs of ~vater supply and treatment. This smd), updates the fees and adds the costs of water transmission mains. It also adds the interest costs associated ~vith funding capital projects through revenue bonds. SERVICE UNITS As discussed in the introduction, the current service unit for Denton's ~vater impact fees is the "single-family equivalent" (SFE), ~vhich is based on the size of the ~vater meter. The number of service units associated ~vith meters of different sizes ~vas calculated earlier. Multiplying the number of existing connections ~vith each meter size by the service units per meter yields total service units for that meter size. Summing for all meter sizes yields the total number of water service units connected to the City's water system, as shown in Table 3. Wholesale customers have been excluded from these calculations because they are located outside the water service area. Table 3 WATER SERVTCE UNTTS, 2002 Existing SFEs/ Meter Size Connections Meter SFEs 1" 999 2.5 2,498 ~305;0 2" 1,149 8.0 9,192 4" 67 50.0 3,350 800 8" 4 200.0 800 5;0 3 Total 23,959 43,305 Source: Number of active non-wholesale water connections by meter size from the City of Denton, October 2002', SFEs per meter from Table 2. The gro~vth in ~vater service units over the 2003-2013 planning period is derived from the Land Use Assumptions. Total population in the ~vater service area from the Land Use Assumptions is multiplied by the estimated percent of households that are connected to the Denton ~vater system to derive an estimate of the population sewed by the ~vater system. The sewed population in 2002 is divided by the current number of service units from the previous table to determine the population per service unit. Using this ratio, the estimated number of service units are estimated for each year through 2013 in Table 4. I~ENTON, TEXAf~\2003-2013 Capital Improvements Plan .lanuary 30, 2003 IIII~IFI', Page 7 Table 4 WATER SERVTCE UNTTS, 2003-2013 Fiscal Total Percent Served Pop./ Year Population Served Population SFE SFEs 2004 99,533 94.56% 94,118 1.97 47,776 l0 5!0 9 56 98i8 97 65 2006 109,736 96.00% 105,347 1.97 53,476 ~ 5 2~ 96; 0i6 ~ 3 ~;97 56i ~ ~9 2008 120,983 97.00% 117,354 1.97 59,571 2010 133,384 97.00% 129,382 1.97 65,676 ~0 05 9~08 ~35;85 9~ 68;960 2012 147,056 97.00% 142,644 1.97 72,408 o New SFEs, 2003-2013 30,528 Source: Total population for water service area from City of Denton, Land Use Assumptions, December 4, 2002', percent served from City of Denton Municipal Utilities', population per SFE is 2002 served population divided by 2002 SFEs from Table 2. DEMAND PROJ ECTIOhlf~ T~vo types of~vater demand are relevant for ~vater impact fees. Water treatment systems are sized to accommodate peak day demand requirements. Water supply facilities are required only to accommodate average daily demand. Average daily per capita ~vater demand can be determined based on historic system-~vide demand in millions of gallons per day (mgd) and historic service area population. These per capita estimates represent both residential and nonresidential demand, and are useful for projecting future system requirements, particularly ~vhen no significant shifts of land use ratios are expected. Average daily per capita demands over the last 14 years are presented in the folloxving Table 5. These data shoxv that xvater demand for retail customers has averaged 167 gallons per capita per day (gpcd). The data also indicate that there is relatively little xvater lost in the process, xvith the raxv xvater used exceeding finished xvater produced by an average of only 5.1 percent. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #I~IFI', Page 8 Table 5 AVERAGE DATLY WATER PRODUCTTON, 1988-2001 Water Production (mgd) Ratio of Retail Fiscal Whole- Total Total Raw to Served Demand Year Retail sale Finished Other Raw Finished Population (~lpcd) 1988 11.31 0.86 12.17 0.39 12.56 1.032 64,184 176 1990 11.28 0.93 12.21 0.33 12.54 1.027 64,817 174 1992 9.83 0.95 10.78 0.53 11.31 1.049 65,435 150 1994 10.23 1.10 11.33 0.68 12.01 1.060 67,145 152 1996 11.95 1.59 13.54 0.96 14.50 1.071 68,905 173 1998 13.22 0.93 14.15 0.76 14.91 1.054 71,448 185 2000 14.54 0.22 14.76 0.71 15.47 1.048 78,919 184 Average 1.051 167 Source: City of Denton Municipal Utilities. Peak day demand over the last 14 years is compared to average daily demand in Table 6. These data indicate that peak day demand in Denton's ~vater system averages 1.9 times average day demand. Table 6 PEAK DAY WATER DEMAND, 1988-2001 Peak Day Average Fiscal Demand Demand Year (m~ld) (m~ld) Ratio 1989 20.72 10.98 1.9 1991 23.47 11.75 2.0 ~992 ~ ~0i78 8 1993 24.24 11.69 2.1 ~ ~ 33 s 1995 22.75 11.93 1.9 1997 24.76 12.79 1.9 1999 26.20 13.07 2.0 2000 2~ 5 ~ ~; 9 2001 26.48 13.61 1.9 Source: City of Denton Municipal Utilities; figures represent total finished water production. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 IIItulFI', Page 9 Based on these historical factors, average and peak day ~vater demand from retail customers is projected for the 2003-2013 planning period in Table 7. Table 7 AVERAGE AND PEAK RETAIL WATER DEMAND, 2003-2013 Avg. Reta il Ratio Raw Ratio Pea k Fiscal Served Demand Demand of Raw to Water of Peak to Day Year Population (gpcd) (mgd) Finished (mgd) Average (mgd) ! 05 573 2004 94,118 167 15.72 1.051 16.52 1.90 29.87 98 8~ 1 05 I ~ 5 2006 105,347 167 17.59 1.051 18.49 1.90 33.42 0;6 !33 !8; 05 9;~ 903509 2008 117,354 167 19.60 1.051 20.60 1.90 37.24 2010 129,382 167 21.61 1.051 22.71 1.90 41.06 20 135~85 ! 2 0512385 1 ~3 2012 142,644 167 23.82 1.051 25.03 1.90 45.26 New Demand, 2003-2013 10.04 10.56 19.08 Source: Served population from Table 4; average day per capita demand and ratio of raw to finished water production from Table 5', ratio of peak day to average day finished water production from Table 6', raw water and peak day demand exclude demand due to wholesale customers. WATER TREATMENT Water treatment facilities are sized to accommodate peak da), demands. The maximum daily capacity of the Spencer Road ~vater treatment plant is 28.9 mgd. The City recently completed construction of a new water treatment plant near Lake Ray Roberts. The Ray Roberts plant has a peak capacity of 20 mgd. The City had originally planned to construct the facility in t~vo 10-mgd phases, but subsequently determined that it was more cost-effective to construct the full 20-mgd plant. As summarized in Table 8, current retail demand plus ~vholesale ~vater sales almost exactly equals the capacity of the old Spencer Road plant. Ne~v development over the next ten ),ears will consume virtually all of the capacity added by the construction of the ne~v 20-mgd Ray Roberts plant. Figure 5 TREATMENT CAPACITY AND DEMAND 40 35 3O 25 20 15 !0 5 0 1988 Capacity 1993 1~8 20~ 200~ 2013 DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 IIIUIFI', Page 10 Table 8 ELI'GI'BLE PERCENT OF RAY ROBERTS PLANT COST Retail Peak Day Demand (mgd), 2003 28.40 Total Current Demand (mgd) 28.90 ExistiqgCapa~iWAvai!able(mgd) 0~00 New Retail Peak Day Demand (mgd), 2003-2013 19.08 Percent Needed for Growth, 2003-2013 95.40% Source: 2003 retail peak day demand and 2003-2013 new retail peak day demand from Table 7; 2003 wholesale peak day demand and plant capacities from City of Denton Municipal Utilities. In addition to constructing the plant in one phase, other changes ~vere made from the preliminary plans for the Lake Ray Roberts plant. In particular, the planned Hardee Field Road booster pump station and ground storage facilities ~vere incorporated into the redesigned plant. Thus, ~vhile these capital improvements no longer appear as separate listings in the ~vater impact fee capital improvements plan, their functional equivalents are still there. V~'ATE R SUPPLY The City's ~vater supply comes primarily from ~vater rights in Lake Le~visville and Lake Ray Roberts. The Le~visville Reservoir ~vas constructed by the U.S. Corps of Engineers to hold a total of 436,000 acre-feet of conservation storage, of ~vhich the City holds the right to 21,000 acre-feet of storage. Based on a safe yield of 90.2 mgd, the City receives 4.34 mgd in ~vater rights from Lake Le~visville. Most of the City's remaining ~vater needs are supplied by Lake Ray Roberts. The reservoir ~vas constructed by the U.S. Corps of Engineers, ~vith the cities of Denton and Dallas being the local sponsors and responsible (26% and 74% respectively) for repaying 50 percent of the total Fi gu re 6 cost. The City has ~vater rights of 19.8 mgd WATER SUPPLY AND DEMAND from this lake. 3,0 Additional ~vater supply capacit7 comes in the form of credits for the portion of the Cit3/s ~vaste~vater that is returned to these ~vater bodies, as ~vell as contract rights ~vith the City of Dallas. The CitT's contract with Dallas reserves a minimum of 0.50 mgd, regardless of~vhether the Cit7 needs it, and the Cit7 also has the right to purchase additional ~vater as needed. The Cit3/s ~vater supply is summarized in Table 9. After subtracting the Cit3/s current total average demand, including both retail and ~vholesale needs as well as lost and unaccounted for water, the Cit7 still has about 9.4 mgd available for Exi¢ing $ up p ~ {25.33 mgcl~ Projected !'988 !993 1~8 2003 DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #lbtFl', Page 11 gro~vth. Projected gro~vth over the planning period ~vill consume all of this capacity and more, meaning that additional ~vater ~vill need to be purchased from the City of Dallas. Nevertheless, the City can recover the costs of the 47 percent of Lake Ray Roberts capacity that is currently available but ~vill be consumed by ne~v customers over the planning period. Table 9 ELIGIBLE PERCENT OF LAKE RAY ROBERTS COST Lake Ray Roberts Capacity (mgd) 19.76 Effluent Return Credits (mgd) 0.73 Total Water Supply Capacity (mgd), 2003 25.33 Available Water Supply Capacity (mgd) 9.35 Percent of Avm~lmble Supply Cmpmdty Needed, 2003-2013 100.00% Source: 2003 capacity from City of Denton Municipal Utilities', 2003 total average day demand is retail raw water demand from Table 7 plus 0.25 mgd wholesale demand from City of Denton Municipal Utilities', 2003-2013 needed capacity from Table 7. The original 1986 cost to the City for its participation in the construction of Lake Ray Roberts ~vas $70 million. In today's dollars, the cost of the City's share is $107 million, as summarized in Table 10. Table 10 LAKE RAY ROBERTS COST Source: Original cost from Denton Municipal Utilities, January 15, 2003', cost inflation factor based on Engineering News-Record Construction Cost Index for January 2003. CO~T PER SERVICE UNIT Capital improvements identified in the City's ~vater master plan and by City staff as necessary to accommodate growth over the next ten years are summarized in Table 11. The portions of the costs of the Ray Roberts treatment plant, the Lake Ray Roberts reservoir and the main transmission line from the Ray Roberts treatment plant that is attributable to gro~vth over the planning period are based on the capacity of the facilities and the ne~v demand generated by the anticipated gro~vth over the period. For pump stations, water storage tanks and other transmission lines, the portions of the costs attributable to gro~vth are based on the year that the facility is anticipated to be put into service. For these facilities, the simplifying assumptions are made that they ~vill accommodate 20 years of gro~vth and that growth ~vill be linear. In general these are conservative assumptions, and they affect only 12 percent of the total directly attributable costs. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #I~IFI', Page 12 In addition to those costs directly attributable to groxvth, there are the interest costs associated xvith funding capital improvements xvith revenue bonds or other forms of&bt. The Cit7 traditionally funds all of its major xvater system capital improvements xvith bonds, and consequently incurs interest costs. According to state laxv, these interest costs can be recovered through impact fees. Interest costs are estimated based on the most recent City of Denton utility bond issue. The final step in determining the cost per service unit is to divide the total capital cost attributable to gro~vth over the next ten years by the anticipated gro~vth in service units over the same time period. The result is a cost of $5,450 per ne~v single-family or equivalent customer, as sho~vn in Table 11. Table 1! WATER COST PER SERVICE UNIT, 2003-2013 Year in Attribu- Total Attributable Improvement Service table % Cost Cost Lake Ray Roberts (City Share) 1989 47.32% $106,677,808 $50,479,939 Hartlee Field Road Booster Pump Station Tie-in~ n/a n/a n/a n/a Southwest Booster Pump Station (3.7 mgd) 2003 50.00% $3,480,000 $1,740,000 o Northwest Elevated Storage Tank (1.0 mg) 2003 50.00% $1,890,000 $945,000 Robson Ranch Elevated Storage Tank (1,0 rog) 2006 35,00% $1,140,000 $399,000 Main Transmission Line From Ray Roberts WTP 2003 40,00% $6,610,000 $2,644,000 o Loop 288 Water Line - Sherman to UNT 2003 50.00% $2,890,000 $1,445,000 North - South ~ater Line Phase I 2003 50.00% $1,600,000 $800,000 N S~ ~ ~i~ ~ 500% ~ s soooo ooo Roselawn Water Line 2004 45.00% $1,310,000 $589,500 North - South ~ater Line Phase IV 2007 30.00% ~2~140~000 ~642~000 o Total Direct Attributable Cost ~104~631~219 Total Attributable Cost $166,363,638 Cost per Service Unit $5,450 Notes: (1) incorporated into the high service pump station at the Ray Roberts WTP and no longer required', (2) replaced by the Roselawn Elevated Tank. Source: Alan Plummet Associates, "Water Improvement Costs Applicable to Impact Fees," December 4, 2002', cost of Lake Ray Roberts from Table 10', attributable percent of Ray Roberts WTP cost from Table 8', attributable percent of Lake Ray Roberts cost from Table 9', attributable percent of main transmission line from Ray Roberts WTP based on 2003-2013 share of ultimate 50 mgd capacity', attributable percent of other improvements based on year placed in service (years remaining in 2003-2013 period divided by 20 years)', interest cost based on interest rates of Series 2002A Utility System Revenue Bonds. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 IIlIIFI, Page 13 I~ET COST PER SERVICE UI~IT Ne~v ~vater customers ~vill help pay off outstanding debt incurred for existing facilities through their monthly rates. To avoid requiring ne~v customers to pay t~vice for capital facilities, once through impact fees and again through rate payments, the impact fees should be reduced to account for debt service payments. In this section, a debt service credit per service unit is calculated for outstanding debt on existing ~vater facilities. The methodology used ~vas to divide each year's debt service payment by the projected number of service units in that year to determine an annual credit per service unit. The net present value of the future stream of debt service payments is the debt service credit per service unit. Table 12 WATER DEBT SERVICE CREDIT Fiscal Principal Water Credit/ Year Payment SFEs SFE 2004 11,728,618 47,776 $245 2006 11,701,141 53,476 $219 2008 11,573,781 59,571 $194 2010 11,606,831 65,676 $177 2012 10,983,309 72,408 $152 2014 11,332,939 79,602 $142 S7 8 ~ 2016 11,272,175 86,761 $130 2018 11,164,438 93,931 $119 2020 11,192,882 101,107 $111 2022 7,777,2g~ Z08,727 $72 202~ 5,296,228 Z Z6,g22 $~5 2026 2,7~5,03Z Z25,73~ $22 2028 2,7~,666 Z35,2ZO $20 2030 2,748,675 145,401 $19 Net Present Value $2,295 Source: Water system debt service payment from City of Denton Municipal Utilities', water SFEs for 2003-2013 from Table 4', water SFEs for succeeding years based on percent growth from 2002 water system forecast', net present value based on 4.8% discount rate, which is the average interest rate on 20-year AAA municipal bonds cited on bloomberg.com, bondsonline.com and fmsbonds.com on January 30, 2003. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 #I~.FI', Page 14 The revenue credits calculated above ~vere done using the same philosophy and methodology set forth in the original 1998 impact fee study. At that time, the state impact fee enabling act made no mention of revenue credits. The revisions to Chapter 395 made by the Texas legislature in 2001 no~v prescribe the follo~ving alternatives for addressing revenue credits in 395.014(0(7): /,/he a//er, a//ve, a cre#// eqz/a/ /o ffO perce,/ of /he /o/a/projec/e# cos/ Note that the credits calculated above differ in certain respects from the literal reading of the state laxv. Most significantly, the credit has been calculated for outstanding debt for existing facilities, rather than for future debt that xvill be issued to implement the projects in the capital improvements plan. It xvould make little sense to calculate a credit for the improvements in the capital improvements plan, since nexv development xvill be paying for such costs through impact fees, and at least in theory no rate revenues should be needed to fund such improvements. On the other hand, nexv development xvill be paying for the remaining debt service on past improvements, and if no credits xvere provided xvould be in effect paying for its costs through impact fees and some of existing development's costs through the portion of its rates that go to debt retirement. The other xvay in xvhich the credits differ is that they are provided for future debt service payments beyond the ten-year planning period. Both of these differences result in credits that are larger than if they xvere calculated according to a literal reading of the state act. The alternative to calculating a revenue credit is simply to divide the cost per service unit in hall The net costs resulting from deducting the revenue credit from the cost per service unit are compared in Table 13. Based on the debt service credit calculated above, the net cost is $3,155 per service unit. Using the alternative method authorized by state la,v, the net cost ~vould be 16 percent lo~ver, at $2,725 per service unit. Table 13 WATER NET COST PER SERVICE UNTT Calculation Alternative Method Method Source: Cost per SFE from Table 11; revenue credit per SFE for calculation method from Table 12; revenue credit for alternative method is one-half of cost per SFE. NET COST SCHEDULE The txvo methods for calculating revenue credits give similar results, and the City Council could enact water impact fees at either of these levels, or at a reduced level. The following net cost schedule represents the maximum impact fees that may be charged by the City for ~vater system facilities, based on the adopted Land Use Assumptions, the utility system evaluation and capital improvement cost estimates prepared by City Municipal Utilities staff and Alan Plummet Associates, and the additional DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #IblFT, Page 15 data and analysis presented in this study. The City could adopt the fees at a lo~ver level than the maximums sho~vn, or phase the increases in over a period of time. In Table 14, the service units per meter are multiplied by the net cost per service unit derived from the calculated revenue credit methodology to determine the net cost per meter. Table 14 WATER NET COST SCHEDULE SFEs/ Net Cost Net Cost/ Meter Size Meter per SFE Meter 1" 2.5 $3,155 $7,888 2" 8.0 $3,155 $25,240 4" S0.0 $3,155 $157,750 8" 200.0 $3,155 $631,000 Source: SFEs per meter from Table 2; net cost per SFE from Table 13. The maximum ~vater impact fees calculated above are compared to the City's existing ~vater impact fees in Table 15. The fees ~vould increase by 54 percent for meters of t~vo inches in diameter or less, and more for larger meters. Table 15 COMPARATIVE WATER FEES Potential Current Percent Meter Size Fees Fees Change S4% 2" $25,240 $16,352 54% ~ ~O/o 4:1 ~!57~50 }5!~!00 2(]90/0 ~ ~ % 8" $631,000 $163,520 286% !0 $!~0Z5~ 3S~ 3 Yo Source: Potential fees from Table 14', current fees from Denton City Code. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 IIIIAFT, Page 16 Based on the gro~vth projections in the Land Use Assumptions, potential revenues over the next ten years ~vould be 68 percent higher under the potential fees calculated in this report than under the current fees, as sho~vn in Table 16. These revenue projections should be vie~ved cautiously, since the annual projections of $5.8 million under the current fee schedule are considerably higher than the $3.4 million collected by the City in 2001. It should also be noted that the updated fees ~vill not apply to properties platted under the previous impact fee schedule. Table 16 COMPARATIVE WATER iMPACT FEE REVENUES, 2003-2013 2003 New 03-13 Potential Current Percent Meter Size Connections Connections Revenues Revenues Change ~ ~!3 ~ ~3 0!5 ~% 1" 1,0S0 704 $5,553,152 $3,597,440 54% 2" 1,207 810 $20,444,400 $13,245,120 54% 4" 70 47 $7,414,250 $2,401,700 209% 8" 4 3 $1,893,000 $490,560 286% Total 25,173 16,890 $96,505,527 $57,514,072 68% Source: 2003 connections estimated based on 2002 connections from Table 3 and percent growth in SFEs 2002-2003 from Table 4', new 2003-13 connections estimated based on percent growth in SFEs from Table 4', potential and current revenues based on new connections and potential and current fees from Table 15. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IIII~IFT, Page 17 WASTEWATE R The City's current xvastexvater impact fees, adopted in 1998, cover only the costs of xvastexvater treatment. This stud), updates the fees and adds the costs of interceptors and force mains. It also adds the interest costs associated xvith funding capital projects through revenue bonds. SERVICE UNITS The current service unit for Denton's ~vaste~vater impact fees is the "single-family equivalent" (SFE), ~vhich is based on the size of the ~vater meter. This is reasonable, since ~vaste~vater generation is not metered directly and tends to be proportional to ~vater usage. An SFE is the ~vater demand associated ~vith the smallest ~vater meter used in the system (3/4"), ~vhich is the meter typically used by a single-family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger size meter. The number of service units associated with meters of different sizes ~vas calculated earlier. Multiplying the number of existing wastewater connections ~vith each meter size by the service units per meter yields total service units for that meter size. Summing for all meter sizes yields the total number of wastewater service units connected to the City's system, as shown in Table 17. Wholesale customers have been excluded from these calculations because they are located outside the wastewater service area. Table 17 WASTEWATER SERVICE UNITS, 2002 Existing SFEs/ Meter Size Connections Meter SFEs 1" 792 2.5 1,980 2" 752 8.0 6,016 3i! 22:~55 4" 60 50.0 3,000 8" 3 200.0 600 s;o 3 Total 22,876 37,619 Source: Average number of active non-wholesale wastewater connections by meter size for fiscal year 2002 from the City of Denton, October 2002 (based on water customers with wastewater service by meter size plus 116 residential customers with no water meter', SFEs per meter from Table 2. Average per capita ~vaste~vater demands can be determined based on historic system-~vide demand in millions of gallons per da), (mgd) and historic service area populations. These per capita estimates represent both residential and nonresidential demand, and are useful for projecting future system requirements, particularly ~vhen no significant shifts of land use ratios are expected. Waste~vater treatment facilities are primarily designed to accommodate average daily to,vs. As summarized in Table 18, per capita ~vaste~vater flo~vs to the treatment plant have been remarkably consistent over the last five years, at 148 gallons per capita per da), (gpcd). These calculations exclude ~vholesale ~vaste~vater flo~vs from Corinth and Argyle. In addition, they represent flo~vs per served or connected population, DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IIIIAFI', Page 18 ~vhich has been determined based on recent studies by the Cit7 of Denton to be about 97 percent of total population. These factors ~vill be used to project future demand and service units in the Pecan Creek service area. Ho~vever, because the Clear Creek service area ~vill have relatively little infiltration (due to ne~v lines) and little industry, Alan Plummet Associates has determined that 94 percent connectivits, and 100 gpcd should be used for this area) Table 18 PER CAPITA WASTEWATER DEMAND Fiscal Avg. Tnfluent Served Per Capita Year Flow (mgd) Population Flow (gpcd) 1998 11.55 77,791 148.47 2000 12.32 83,009 148.42 Average 148 Source: City of Denton Municipal Utilities, cited in Alan Plummet Associates memorandum, December 11, 2002 (average influent excludes wholesale flows). The gro~vth in ~vaste~vater service units and retail customer ~vaste~vater demand over the 2003-2013 planning period is derived from the Land Use Assumptions. The first step is to calculate the average demand per service unit. This xvill be applied to demand projections to project the gro~vth in service units for each service area. Total 2002 population in the Pecan Creek and Hickory Creek basins from the Land Use Assumptions is multiplied by the estimated percent of households that are connected to the Denton ~vaste~vater system to derive an estimate of the 2002 population served by the ~vaste~vater system (the population in the Clear Creek basin is excluded because there is no ~vaste~vater service presently available there). The served population is then multiplied by the average per capita demand to estimate total 2002 ~vaste~vater demand, exclusive of ~vholesale customers. Estimated demand in 2002 is divided by the current number of service units from the previous table to determine the average demand per service unit (see Table 19). 3Memorandum from Bryan Jann, P.E., Alan Plummet Associates, to P.S. Arora of City of Denton Municipal Utilities, December 11, 2002. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 IIlI~IFT, Page 19 Table 19 AVERAGE DEMAND PER SERVICE UNIT Total Population, Wastewater CCN (excI. Clear Creek), 2002 91,086 ~ ~ 9~% Wastewater Served Population, 2002 88,353 Total Retail Wastewater Demand (gpd), 2002 13,076,244 SEES 200 6~9 Average Wastewater Demand per SFE (gpd) 348 Source: Total population from Land Use Assumptions, December 4, 2002 (excludes 2,631 in Clear Creek basin where no service is available)', percent served from Alan Plummet Associates, December 12, 2002 memorandum', per capita demand from Table 18', 2002 SFEs from Table 17. For each service area, the total population from the Land Use Assumptions is multiplied by the percent served and the average per capita demand to determine total retail ~vaste~vater demand. The average demand per service unit is then divided into total demand to determine the number of ~vaste~vater SFEs. Using this approach, the number of service units in the Pecan Creek and Hickory Creek drainage basins are estimated for each year through 2013 in Tables 20 and 21. Table 20 WASTEWATER SERVICE UNITS, PECAN CREEK, 2003-2013 Per Capita Retail Demand/ Fiscal Total Percent Served Demand Demand SFE Year Population Served (m~ld) (~lpd) SFEs I ~ 25i 92 2004 64,965 97% 63,016 148 9.33 348 26,810 2006 69,249 97% 67,172 148 9.94 348 28,563 2008 74,820 97% 72,575 148 10.74 348 30,862 2010 80,345 97% 77,935 148 11.53 348 33,132 83 ~35 9~ 88~93 ~8 98 3~8 3~ 25 2012 86,757 97% 84,154 148 12.45 348 35,776 New Demand and SFEs, 2003-2013 3.95 11,350 Source: Total population from Land Use Assumptions, December 4, 2002; percent served from Alan Plummet Associates, December 12, 2002 memorandum', per capita demand from Table 18; demand per SFE from Table 19; SFEs is total demand divided by demand per SFE. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 I}l~a~,Fl', Page 20 Table 2! WASTEWATER SERVICE UNITS, HICKORY CREEK, 2003-2013 Per capita Retail Demand/ Fiscal Total Percent Served Demand Demand SFE Year Population Served Population (mgd) (gpd) SFEs 2004 32,086 97% 31,123 148 4.61 348 13,247 5 ~3 690 9 ~ ~8 88~ 3~ 908 2006 35,375 97% 34,314 148 5.08 348 14,598 6~ ! ~8 5 3 ~8 !5 3 ~ 6 2008 39,000 97% 37,830 148 5.60 348 16,092 2010 42,998 97% 41,708 148 6.17 348 17,730 ~86~83~8~862 2012 47,405 97% 45,983 148 6.81 348 19,569 ~9 5 9 28 ~8 ~ 5 ~ 8 20~ 5~6 New Demand and SFEs, 2003-2013 2.76 7,931 Source: Total population from Land Use Assumptions, December 4, 2002; percent served from Alan Plummet Associates, December 12, 2002 memorandum', per capita demand from Table 18; demand per SFE from Table 19; SFEs is total demand divided by demand per SFE. The demand and service unit projections in the Clear Creek drainage basin are derived in similar fashion in Table 22. Ho~vever, the percent connectivity and per capita demand assumptions are some~vhat lo~ver, for the reasons described earlier. In addition, there ~s currently no served population, because the proposed Clear Creek treatment plant ~vill not be constructed until July 2004. Table 22 WASTEWATER SERVICE UNITS, CLEAR CREEK, 2003-2013 Per capita Retail Demand/ Fiscal Total Percent Served Demand Demand SFE Year Population Served Population (mgd) (gpd) SFEs o 2004 4,424 10% 442 100 0.04 348 115 o 5 5i8 20 ~ 2006 7,254 30% 2,176 100 0.22 348 632 o ~0~ 8i 389 ~0 Mo 3i ~ 3~ 3~8 977 2008 9,524 50% 4,762 100 0.48 348 1,379 ~009 08 60 ~ 00 0; ~8 925 2010 12,644 70% 8,851 100 0.89 348 2,557 ~i20 80 363! 3i2~6 2012 15,764 90% 14,188 100 1.42 348 4,080 ~0 I~;3 9~ 6 283 ~ 63 3~ 68 New Demand and SFEs, 2003-2013 1.63 4,684 Source: Total population from Land Use Assumptions, December 4, 2002; percent served by 2013 and per capita demand from Alan Plummet Associates, December 12, 2002 memorandum', demand per SFE from Table 19; SFEs is total demand divided by demand per SFE. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IUblFT, Page 21 Projected 2003-2013 retail ~vaste~vater demand and ~vaste~vater service units are summarized for the three drainage basins in Table 23 belo~v. Table 23 WASTEWATER DEMAND AND SERVICE UNIT SUMMARY, 2003-2013 Retail Demand (mgd) Service Units (SFEs) Drainage Basin 2003 2013 New 2003 2013 New Total Wastewater CCN 13.41 21.75 8.34 38,535 62,500 23,965 Source: Tables 20, 21 and 22. TREATMENT PLANTS In 1994, the City completed a $9.5 million expansion of its ~vaste~vater treatment plant. The Pecan Creek Water Reclamation Plant is no~v designed to treat up to 15 mgd, and is in compliance ~vith all State and Federal discharge permits. With a projected demand in 2003 of 14.91 mgd, as sho~vn in Table 24, the City has no existing capacity deficiencies ~vith regard to ~vaste~vater treatment. It also has virtually no excess capacity to accommodate nexv customers. Table 24 TREATMENT PLANT DEMAND AND CAPACITYf 2003 Source: Projected 2003 retail demand from Table 23; projected wholesale demand is 110% of wholesale demand in FY 2002 from City of Denton Municipal Utilities, "FY 2002 Wastewater Customers and Volume Summary." To accommodate future groxvth in the Pecan Creek and Hickory Creek basins, the City is currently building a 6.00 mgd expansion to the Pecan Creek plant, and xvill also construct a nexv 0.95 mgd plant in the Hickory Creek basin. The Pecan Creek plant expansion is being constructed in modules, and some additional capacity xvill be available xvhen the first nexv treatment train is completed in late January or early February 2003. The construction of the Hickory Creek plant is five years or so axvay. Currently, the floxvs from the Hickory Creek basin are conveyed to the Pecan Creek system by an existing lift station. In order to maximize the use of the Pecan Creek plant expansion already under,va)T, it is anticipated that a significant portion of the nexv capacity required by groxvth in the Hickory Creek basin over the ten-year period ~vill be met by that plant. Consequently, ne~v development in the Hickory Creek basin ~vill have its xvastexvater treated by both the Pecan Creek plant expansion and the nexv Hickory Creek plant. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 Illb~,l~'l', Page 22 Treatment capadty to serve the Clear Creek basin ~vill be constructed in txvo phases. The first phase is the construction of a 0.95 mgd ~vaste~vater treatment plant, anticipated to be completed by July 2004. Later in the ten-year planning horizon, an expansion of the plant ~vill take place to provide the additional 0.68 mgd of required capacity. The projected system~vide relationship betxveen ~vaste~vater demand and treatment capacity is illustrated in Figure 7. LIFT STATIOhlS AhlD FORCE MAIhlS Figure 7 WASTEWATER DEMAND AND CAPACITY ¸25 Based on information in the City of Denton ~vaste~vater master plan, three lift station projects e Actua! Oe~nd ~' P~ojec:~ed ~mand 0 ~997 2~1i 2~5 2099 2013 are anticipated for the ten-year planning period. The Cooper Creek Lift Station expansion is currently under design and ~vill increase capacity to 12 mgd. A Lakevie~v Ranch/Grissom Lift Station and Force Main is also anticipated during the planning period. While no capacities are kno~vn at this time, a startup date of 2005 is assumed. For the projects above, the assumption ~vas made that each lift station ~vill be constructed to meet 2020 to,vs. In addition, it ~vas assumed that population gro~vth ~vould occur at a linear rate over the same period. To convey additional ~vaste~vater resulting from gro~vth in the Hickory Creek basin to the Pecan Creek plant ~vill create the need for a 2 mgd capacity expansion of the current Hickory Creek lift station. The expansion of the existing Hickory Creek lift station ~vill occur during the planning period and is anticipated to be fully utilized by 2013. I bITE RC E PTO RS Several ne~v interceptors are discussed in the City of Denton 17~as/ewa/er Mas/er Pla,, many of ~vhich ~vere considered developer-related projects. Many of these projects ~vere not included in the update due to uncertainties of the required timing. The inclusion of the listed projects ~vas based on current needs and input from City personnel. The underlying assumption for interceptor projects ~vas that all interceptors ~vould have a 20-year life. In addition, each interceptor ~vas assigned an in-service date. The in-service dates are anticipated. The applicable percentages ~vere calculated based on the ratio of the number of years in-service during the planning period to 20, ~vhich is the life of the line. The North Hickory Creek Interceptor ~vill serve both the City of I4m2m, ~vhich is a ~vholesale ~vaste~vater customer, and a ne~vly developing area ~vithin the Hickory Creek basin. The City of Krum ~vill pay for the equivalent cost of a 15-inch line, and the City of Denton is responsible for the cost share above the 15-inch size, ~vhich ranges from 21 to 27 inches. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 IHbtFl', Page 23 COST PER SERVICE UNIT Waste~vater capital improvements identified by City Municipal Utilities staff as necessary to accommodate gro~vth over the next ten years for each of the three drainage basins are summarized in Tables 25, 26 and 27. The portions of the costs of the Pecan Creek Water Reclamation Plant expansion, the ne~v Hickory Creek plant and the ne~v Clear Creek plant that are attributable to gro~vth over the planning period are based on the capacity of the facilities and the ne~v demand generated by the anticipated gro~vth over the period. Lift station and force main improvements included in the capital improvements plan are identified in the ~vaste~vater master plan, and the percent attributable to gro~vth for these projects is based on the assumption that the facilities ~vill be fully utilized by 2020. For interceptors, the portions of the costs attributable to gro~vth are based on the year that the facility is anticipated to be put into service. For these facilities, the simplifying assumptions are made that they ~vill accommodate 20 years of gro~vth and that gro~vth ~vill be linear. In addition to those costs directly attributable to gro~vth, there are the interest costs associated ~vith funding capital improvements ~vith revenue bonds or other forms of debt. The City traditionally funds all of its major ~vaste~vater system capital improvements ~vith bonds, and consequently incurs interest costs. According to state la,v, these interest costs can be recovered through impact fees. Interest costs are estimated based on the most recent City of Denton utility bond issue. The total costs of planned capital improvements attributable to groxvth in each of the three drainage basins are presented in the folloxving three tables. Table 25 WASTEWATER CAPITAL COSTS, PECAN CREEK, 2003-2013 Capacity (mgd) Attribu- Total Attributable Tmprovement Total Needed Year table % Cost Cost o ~! ~ ~i~ ~ ~0O/o ~ ~ LakeYie~/GEissgmLS/~9[ceMain 2005 53~o0o/o $865~490 o Pecan Creek interceptor 2003 50,00 Yo $3,000,000 $!,500,000 Direct Attributable Cost $17,575,866 Total Attributable Cost $27,945,627 Source: Project costs, capacity and in-service dates from Alan Plummet Associates, "Wastewater Improvement Costs Applicable to Impact Fees," December 4, 2002; total capacity needed and new service units over 2003-2013 period from Table 23', attributable percent of Cooper Creek and Lakeview lift station/force mains assumed to be fully utilized by 2020, so percent based on years remaining in 2003-2013 period divided by remaining years before 2020; attributable percent of other improvements with in-service date shown based on years remaining in 2003-2013 period divided by 20 years', interest cost based on interest rates of Series 2002A Utility System Revenue Bonds. DENTON, TEXAf~\2003-2013 Capital Improvements Plan .~anuary 30, 2003 IU~IFI', Page 24 Table 26 WASTEWATER CAPTTAL COSTS, HTCKORY CREEK, 2003-2013 Capacity (mgd) Attribu- Total Tmprovement Total Needed Year table % Cost Attributable Cost Pecan Creek WRP Expansion 6.00 1.81 n/a 30.17% $19,416,015 $5,857,812 Bi~ ~ Ww~ 0;gS ~ 0O% $ $ Subtotal, Treatment Plant 2.76 n/a $25,416,015 $11,857,812 Hickory Creek Interceptor Phase I 2005 40.00% $2,900,000 $1,160,000 Graveyard Branch Interceptor 2003 50.00% $3,658,440 $1,829,220 o Roark Branch ~nterceptor Oversizing 2003 50.00% $750,000 $375,000 Di~At~i ~!~6~ $~ Debt Service interest Cost $10,]90,027 Source: Project costs, capacity and in-service dates from Alan Plummet Associates, "Wastewater Improvement Costs Applicable to Impact Fees," December 4, 2002; total capacity needed and new service units over 2003-2013 period from Table 23; attributable percent of improvements with in-service date shown based on years remaining in 2003- 2013 period divided by 20 years', interest cost based on interest rates of Series 2002A Utility System Revenue Bonds. Table 27 WASTEWATER CAPTTAL COSTS, CLEAR CREEK, 2003-2013 Capacity (mgd) Attribu- Total Attributable Tmprovement Total Needed Year table % Cost Cost Subtotal Treatment Plants 1.63 $8,650,000 $8,650,000 ~i~ r/~ii ~ ~ ~ ~6 ~0035 500;000 Direct Attributable Cost $11,150,000 Total Attributable Cost $17,728,500 Source: Project costs, capacity and in-service dates from Alan Plummet Associates, "Wastewater Improvement Costs Applicable to Impact Fees," December 4, 2002; total capacity needed and new service units over 2003-2013 period from Table 23; attributable percent of improvements with in-service date shown based on years remaining in 2003- 2013 period divided by 20 years', interest cost based on interest rates of Series 2002A Utility System Revenue Bonds. The cost per service unit is determined by dividing the total attributable cost over the 2003-2013 planning period by the ne~v service units (SFEs) anticipated during the same time period. The average costs per SFE are sho~vn for each drainage basin and for the entire ~vaste~vater CCN in Table 28 belo~v. It is apparent that ne~v development ~vill be more cost-effective to serve in the Pecan Creek basin, due to the economies of scale at the large existing treatment plant. Since much of the ne~v development in the Hickory Creek basin ~vill also be served by the expansion of the existing plant, a reasonable case can be made for including both basins ~vithin the same service area and charging the same fee in both areas. The Clear Creek basin, on the other hand, ~vill be served by an entirely separate set of facilities, and the significantly higher cost to serve ne~v customers in this area could be reflected in higher fees if it is designated as a separate service area. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IllblFl', Page 25 Table 28 WASTEWATER COST PER SERVTCE UNTT, 2003-2013 Attributable New Cost/ Source: Attributable costs from Tables 25, 26 and 27; new SFEs from Table 23. NET COST PER SERVICE UNIT Ne~v ~vaste~vater customers ~vill help pay off outstanding debt incurred for existing facilities through their monthly rates. The net present value of the future stream of debt service payments is the debt service credit per service unit. Table 29 WASTEWATER DEBT SERVICE CREDIT Fiscal Debt Service Wastewater Credit/ Year Payment SFEs SFE 2004 $5,562,979 40,172 $138 2005 $5i35 89~ $ 2006 $5,298,611 43,793 $121 200~ $ S i~ 2 ~ 938 ~5977 $ ~ ~ 8 2010 $5,539,916 53,419 $104 20 $~93001 6 3Z $88 2012 $4,907,336 59,425 $83 2014 $4,484,684 65,437 $69 2016 $3,984,628 71,322 $56 2018 $3,878,365 77,216 $50 2020 $3,696,799 83,116 $44 2022 $1,373,500 89,380 $15 Net Present Value $1,171 Source: Wastewater debt service payments from City of Denton Municipal Utilities', wastewater SFEs for 2003-2013 from Tables 20, 21 and 22', wastewater SFEs for succeeding years based on percent growth from 2002 water system forecast', net present value based on 4.8% discount rate, which is the average interest rate on 20-year AAA municipal bonds cited on bloomberg.com, bondsonline.com and fmsbonds.com on January 30, 2003. DENTON, TEXAf~\2003-2013 Capital Improvements Plan ]anuary 30, 2003 IUIAFT, Page 26 The net cost per service unit is calculated by subtracting the revenue credit calculated above from the cost per service unit. As discussed in the ~vater section, ho~vever, state la~v prescribes an alternative method of calculating the net cost per service unit, ~vhich is to divide the cost per service unit by t~vo. These t~vo methods of determining the net cost per service unit are presented in Table 30. As ~vith the ~vater fee, the t~vo methods yield very similar results for the ~vaste~vater fee for the Pecan Creek basin, ~vith the alternative method resulting in a maximum fee that is only 5 percent lo~ver than the calculated net cost. Ho~vever, the alternative method ~vould result in considerably lo~ver fees for the other t~vo drainage basins. Table 30 WASTEWATER NET COST PER SERVICE UNIT Cost/ Credit/ Net Cost/ Alternative Alt. % Drainage Basin SFE SFE SFE Max. Fee of Net Hickory Creek $3,463 $1,171 $2,292 $1,732 76% o S~ ~a! B ~B!~ ~ $ iii ~ !~ $ 37 8~ Clear Creek $3,785 $1,171 $2,614 $1,893 72% o Source: Cost per SFE from Table 28; credit per SFE from Table 29; alternative maximum fee is cost per SFE divided by 2. NET COST SCHEDULE Because the City has several options to choose from in terms of service areas, as many as five fee schedules could be generated for various geographic areas. The option of using the alternative method of calculating revenue credits authorized by state la~v increases the number of possible fee schedules to ten. For simplicity, the fee schedule presented ~vill be based on the maximum fee for the entire ~vaste~vater service area. In Table 31, the service units per meter are multiplied by the net cost per service unit derived from the calculated revenue credit methodology to determine the net cost per meter. Table 31 WASTEWATER NET COST SCHEDULE SFEs/ Net Cost Net Cost/ Meter Size Meter per SFE Meter 1" 2.5 $1,881 $4,703 !88! $9i~5 2" 8.0 $1,881 $15,048 4" 50.0 $1,881 $94,050 8" 200.0 $1,881 $376,200 Source: SFEs per meter from Table 2; net cost per SFE from Table 13. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 I}IIAFI', Page 27 The maximum ~vaste~vater impact fees calculated above are compared to the City's existing impact fees in Table 32. If adopted at the maximum level, the fees ~vould increase by 289 percent for meters of txvo inches in diameter or less. The increase ~vould be greater for larger meters, reflecting the revised SFEs per meter based on the capacity data provided by the manufacturer of the meters used by the City. Table 32 COMPARATIVE WASTEWATER FEES Potential Current Percent Meter Size Fees Fees Change !i: }4~703 $!~208 2890/0 2" $15,048 $3,864 289% 8" $376,200 $38,640 874% Source: Potential fees from Table 311 current fees from Denton City Code. Based on the gro~vth projections in the Land Use Assumptions, potential revenues over the next ten years ~vould be 323 percent higher under the potential fees calculated in this report than under the current fees, as sho~vn in Table 28. These revenue projections should be vie~ved cautiously, since the annual projections of $1.1 million under the current fee schedule are considerably higher than the S0.8 million collected by the City in 2001. Table 33 COMPARATIVE WASTEWATER REVENUES, 2003-2013 2003 New 03-13 Potential Current Meter Size Connections Connections Revenues Revenues Percent Chanqe 1" 811 504 $2,370,312 $608,832 289% 211 ~ !' 8~ 58 $ ~ 1 I6 158 · 386 40~ 4 ~ 8% 4" 61 38 $3,573,900 $458,850 679% 8~ 3 2 $~52~400 $~7~280 8~4% Total 23,432 14,572 $45,234,565 $10,685,661 323% Source: 2003 connections estimated based on 2002 connections from Table 17 and percent growth in SFEs 2002-2003 from Table 4', new 2003-13 connections estimated based on percent growth in SFEs from Table 4', potential and current revenues based on new connections and potential and current fees from Table 32. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 IUI~IFI', Page 28 APPENDIX: TEXAS IMPACT FEE ENABLIN ACT [Underline and strike-out indicates changes from SB 247, effective September 1, 2001] CHAPTER 395. FINANCING CAPITAL IMPROVEMENTS REQUIRED BY NEW DEVELOPMENT IN MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTS SUBCHAPTER A. GENERAL PROVISIONS Sec. 395.001. Definitions. In this chapter: (1) "Capital improvement" means an), of the follo~ving facilities that have a life expectancy of three or more ),ears and are o~vned and operated by or on behalf of a political subdivision: (A) ~vater supply, treatment, and distribution facilities; ~vaste~vater collection and treatment facilities; and storm water, drainage, and flood control facilities; whether or not the), are located ~vithin the service area; and (B) roa&vay facilities. (2) "Capital improvements plan" means a plan required by this chapter that identifies capital improvements or facility expansions for ~vhich impact fees ma), be assessed. "Facility expansion" means the expansion of the capacity of an existing facility that serves the same function as an othe~vise necessary ne~v capital improvement, in order that the existing facility ma), serve ne~v development. The term does not include the repair, maintenance, modernization, or expansion of an existing facility to better serve existing development. (4) "Impact fee" means a charge or assessment imposed by a political subdivision against ne~v development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the ne~v development. The term includes amortized charges, lump-sum charges, capital recover), fees, contributions in aid of construction, and any other fee that functions as described by this definition. The term does not include: (A) dedication of land for public parks or payment in lieu of the dedication to serve park needs; (B) dedication of rights-of-xvay or easements or construction or dedication of on-site o_~r off-site water distribution, wastewater collection or drainage facilities, or streets, sidexvalks, or curbs if the dedication or construction is required by a valid ordinance and is necessitated by and attributable to the nexv development; [or] DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #l~a~.Fl', Page 29 (C) lot or acreage fees to be placed in trust funds for the purpose of reimbursing developers for oversizing or constructing ~vater or server mains or lines; or (D) other pro rata fees for reimbursement of~vater or server mains or lines extended by the political subdivision. "Land use assumptions" includes a description of the service area and projections of changes in land uses, densities, intensities, and population in the service area over at least a 10-year period. (6) "Ne~v development" means the subdivision of land; the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure; or any use or extension of the use of land; any of~vhich increases the number of service units. (7) "Political subdivision" means a municipality, a district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution, or, for the purposes set forth by Section 395.079, certain counties described by that section. (8) "Road~vay facilities" means arterial or collector streets or roads that have been designated on an officially adopted road~vay plan of the political subdivision, together ~vith all necessary appurtenances. The term includes the political subdivision's share of costs for [du~= nut ind,,d~ aiiy] road~vays and [o-ri associated improvements designated on the federal or Texas high~vay system, including local matching funds and costs related to utilit5, line relocation and the establishment of curbs, gutters, side~valks, drainage appurtenances, and rights-of-~vay. (9) "Service area" means the area ~vithin the corporate boundaries or extraterritorial jurisdiction, as determined under Chapter 42, of the political subdivision to be served by the capital improvements or facilities expansions specified in the capital improvements plan, except road~vay facilities and storm ~vater, drainage, and flood control facilities. The service area, for the purposes of this chapter, ma), include all or part of the land ~vithin the political subdivision or its extraterritorial jurisdiction, except for road~vay facilities and storm ~vater, drainage, and flood control facilities. For road~vay facilities, the service area is limited to an area ~vithin the corporate boundaries of the political subdivision and shall not exceed six [au,~': ',a,,c~ ~qual [o ucvciuptiicitt, bu[ iii iio iiiipioveiiieiiks plan]. For storm water, drainage, and flood control Gc~ifies, the semice area may include aH or part of the land within the pohfical subdivision or its extraterritorial jurisdiction, but shall not exceed the area actually seined by the storm water, drainage, and flood control Gc~ifies designated in the capital improvements plan and shall not extend across watershed boundaries. (lO) "Service unit" means a standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards and based on historical data and trends applicable to the political subdivision in which the individual unit of development is located during the D[IqTOIq, T[XA$\2003-2013 Capital Improvements Plan January 30, 2003 I~IIAFT, Page 30 SUBCHAPTER B. AUTHORIZATION OF IMPACT FEE Sec. 395.011. Authorization of Fee. (0 Unless other~vise specifically authorized by state la~v or this chapter, a governmental entity or political subdivision ma), not enact or impose an impact fee. (b) Political subdivisions may enact or impose impact fees on land ~vithin their corporate boundaries or extraterritorial jurisdictions only by complying ~vith this chapter, except that impact fees may not be enacted or imposed in the extraterritorial jurisdiction for road~vay facilities. (c) A municipality may contract to provide capital improvements, except road~vay facilities, to an area outside its corporate boundaries and extraterritorial jurisdiction and may charge an impact fee under the contract, but if an impact fee is charged in that area, the municipality must comply ~vith this chapter. Added byActs 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.012. Items Payable by Fee. (0 An impact fee ma), be imposed only to pa), the costs of constructing capital improvements or facility expansions, including and limited to the: (1) construction contract price; (2) surveying and engineering fees; (3) land acquisition costs, including land purchases, court a~vards and costs, attorney's fees, and expert ~vitness fees; and fees actually paid or contracted to be paid to an independent qualified engineer or financial consultant preparing or updating the capital improvements plan ~vho is not an employee of the political subdivision. (b) Projected interest charges and other finance costs ma), be included in determining the amount of impact fees only if the impact fees are used for the payment of principal and interest on bonds, notes, or other obligations issued by or on behalf of the political subdivision to finance the capital improvements or facility expansions identified in the capital improvements plan and are not used to reimburse bond funds expended for facilities that are not identified in the capital improvements plan. (c) Not~vithstanding any other provision of this chapter, the Ed~vards Underground Water District or a river authority that is authorized else~vhere by state la~v to charge fees that function as impact fees may use impact fees to pay a staff engineer ~vho prepares or updates a capital improvements plan under this chapter. A municipality ma), pledge an impact fee as security for the payment of debt service on a bond, note, or other obligation issued to finance a capital improvement or public facility expansion iff (1) the improvement or expansion is identified in a capital improvements plan; and DENTON, TiXA$\2003-2013 Capital Improvements Plan 3anuary 30, 2003 IIII).FT, Page 31 (2) at the time of the pledge, the governing body of the municipality certifies in a ~vritten order, ordinance, or resolution that none of the impact fee ~vill be used or expended for an improvement or expansion not identified in the plan. (0 A certification under Subsection (d)(2) is sufficient evidence that an impact fee pledged ~vJll not be used or expended for an improvement or expansion that is not identified in the capital improvements plan. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Amended by Acts 1995, 74th Leg., ch. 90, Sec. 1, elf. May 16, 1995. Sec. 395.013. Items Not Payable by Fee. Impact fees may not be adopted or used to pay for: (1) construction, acquisition, or expansion of public facilities or assets other than capital improvements or facility expansions identified in the capital improvements plan; (2) repair, operation, or maintenance of existing or ne~v capital improvements or facility expansions; (3) upgrading, updating, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental, or regulatory standards; upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development; (5) administrative and operating costs of the political subdivision, except the Ed~vards Underground Water District or a river authority that is authorized elsewhere by state law to charge fees that function as impact fees may use impact fees to pay its administrative and operating costs; (6) principal payments and interest or other finance charges on bonds or other indebtedness, except as allo~ved by Section 395.012. Added by Acts 1989, 71 st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.014. Capital Improvements Plan. (0 The political subdivision shall use qualified professionals to prepare the capital improvements plan and to calculate the impact fee. The capital improvements plan must contain specific enumeration of the following items: 0) a description of the existing capital improvements within the service area and the costs to upgrade, update, improve, expand, or replace the improvements to meet existing needs and usage and stricter safety, efficiency, environmental, or regulatory standards, ~vhich shall be prepared by a qualified professional engineer licensed to perform the professional engineering services in this state; (2) an analysis of the total capacity, the levd of current usage, and commitments for usage of capacity of the existing capital improvements, ~vbich shall be prepared by a qualified professional engineer licensed to perform the professional engineering services in this state; DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #II).FT, Page 32 (3) a description of all or the parts of the capital improvements or facility expansions and their costs necessitated by and attributable to ne~v development in the service area based on the approved land use assumptions, ~vhich shall be prepared by a qualified professional engineer licensed to perform the professional engineering services in this state; a definitive table establishing the specific level or quantity of use, consumption, generation, or discharge of a service unit for each category of capital improvements or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, and industrial; (5) the total number of projected service units necessitated by and attributable to ne~v development ~vithin the service area based on the approved land use assumptions and calculated in accordance ~vith generally accepted engineering or planning criteria; and (6) the projected demand for capital improvements or facility expansions required by ne~v service units projected over a reasonable period of time, not to exceed 10 years; and a plan for a~varding: a credit for the portion of ad valorem tax and utility service revenues generated by ne~v service units during the program period that is used for the payment of improvements, including the payment of debt, that are included in the capital improvements plan; or (B) in the alternative, a credit equal to 50 percent of the total projected cost of implementing the capital improvements plan. (b) The analysis required by Subsection (a)(3) may be prepared on a system~vide basis ~vithin the service area for each major category of capital improvement or facility expansion for the designated service area. (c) The governing body of the political subdivision is responsible for supervising the implementation of the capital improvements plan in a timely manner. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.015. Maximum Fee Per Service Unit. (0 The impact fee per service unit may not exceed the amount determined by subtracting the amount in Section 395.014(a)(7) from [dividing] the costs of the capital improvements described by Section 395.014(0 (3) and dividing that amount by the total number of projected service units described by Section 395.014(0(5). (b) If the number of ne~v service units projected over a reasonable period of time is less than the total number of ne~v service units sho~vn by the approved land use assumptions at full development of the service area, the maximum impact fee per service unit shall be calculated by dividing the costs of the part of the capital improvements necessitated by and attributable to projected ne~v service units described by Section 395.014(0 (6) by the projected ne~v service DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 IIII~.FT, Page 33 units described in that section. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.016. Time for Assessment and Collection of Fee. (0 This subsection applies only to impact fees adopted and land platted before June 20,1987. For land that has been platted in accordance ~vith Subchapter A, Chapter 212, or the subdivision or platting procedures of a political subdivision before June 20, 1987, or land on ~vhich ne~v development occurs or is proposed ~vithout platting, the political subdivision may assess the impact fees at any time during the development approval and building process. Except as provided by Section 395.019, the political subdivision may collect the fees at either the time of recordation of the subdivision plat or connection to the political subdivision's ~vater or server system or at the time the political subdivision issues either the building permit or the certificate of occupancy. (b) This subsection applies only to impact fees adopted before June 20,1987, and land platted after that date. For ne~v development ~vhich is platted in accordance ~vith Subchapter A, Chapter 212, or the subdivision or platting procedures of a political subdivision after June 20, 1987, the political subdivision may assess the impact fees before or at the time of recordation. Except as provided by Section 395.019, the political subdivision may collect the fees at either the time of recordation of the subdivision plat or connection to the political subdivision's ~vater or server system or at the time the political subdivision issues either the building permit or the certificate of occupancy. (c) This subsection applies only to impact fees adopted after June 20,1987. For ne~v development ~vhich is platted in accordance ~vith Subchapter A, Chapter 212, or the subdivision or platting procedures of a political subdivision before the adoption of an impact fee, an impact fee may not be collected on any service unit for ~vhich a valid building permit is issued ~vithin one year after the date of adoption of the impact fee. This subsection applies only to land platted in accordance ~vith Subchapter A, Chapter 212, or the subdivision or platting procedures of a political subdivision after adoption of an impact fee adopted after June 20, 1987. The political subdivision shall assess the impact fees before or at the time of recordation of a subdivision plat or other plat under Subchapter A, Chapter 212, or the subdivision or platting ordinance or procedures of any political subdivision in the official records of the county clerk of the county in ~vhich the tract is located. Except as provided by Section 395.019, if the political subdivision has ~vater and ~vaste~vater capacity available: the political subdivision shall [mW] collect the fees [at~,L,~,:" die tiiiie u, ,~u~u~L,~, ~, rrr] at the time the political subdivision issues _a [~itl~z tl~] building permiti for land platted outside the corporate boundaries of a municipality, the municipality shall collect the fees at the time an application for an individual meter connection to the municipalits?s ~vater or ~vaste~vater system is filed; or a political subdivision that lacks authoriw to is sue building permits in the area ~vhere the impact fee applies shall collect the fees at the time an application is fded for an individual meter connection to the political subdivision's ~vater or ~vaste~vater system DENTON, TEXAf~\2003-2013 Capital Improvements Plan .lanuary 30, 2003 III{~IF'I', Page 34 (0 For land on ~vhich ne~v development occurs or is proposed to occur ~vithout platting, the political subdivision may assess the impact fees at any time during the development and building process and may collect the fees at either the time of recordation of the subdivision plat or connection to the political subdivision's ~vater or server system or at the time the political subdivision issues either the building permit or the certificate of occupancy. (0 An "assessment" means a determination of the amount of the impact fee in effect on the date or occurrence provided in this section and is the maximum amount that can be charged per service unit of such development. No specific act by the political subdivision is required. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.017. Additional Fee Prohibited; Exception. After assessment of the impact fees attributable to the ne~v development or execution of an agreement for payment of impact fees, additional impact fees or increases in fees may not be assessed against the tract for any reason unless the number of service units to be developed on the tract increases. In the event of the increase in the number of service units, the impact fees to be imposed are limited to the amount attributable to the additional service units. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.018. Agreement With Owner Regarding Payment. A political subdivision is authorized to enter into an agreement with the oxvner of a tract of land for which the plat has been recorded providing for the time and method of payment of the impact fees. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.019. Collection of Fees if Services Not Available. Except for roadxvay facilities, impact fees may be assessed but may not be collected in areas xvhere services are not currently available unless: (1) the collection is made to pay for a capital improvement or facilit7 expansion that has been identified in the capital improvements plan and the political subdivision commits to commence construction within two years, under duly awarded and executed contracts or commitments of staff time covering substantially all of the work required to provide service, and to have the service available ~vithin a reasonable period of time considering the tTpe of capital improvement or facility expansion to be constructed, but in no event longer than five years; (2) the political subdivision agrees that the oxvner of a nexv development may construct or finance the capital improvements or facility expansions and agrees that the costs incurred or funds advanced will be credited against the impact fees other~vise due from the new development or agrees to reimburse the owner for such costs from impact fees paid from other new developments that will use such capital improvements or facility expansions, which fees shall be collected and reimbursed to the owner at the time the other new development records its plat; or (3) an oxvner voluntarily requests the political subdivision to reserve capacity to serve future development, and the political subdivision and owner enter into a valid written agreement. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 Illl).F'r, Page 35 Sec. 395.020. Entitlement to Services. Any ne~v development for ~vhich an impact fee has been paid is entitled to the permanent use and benefit of the services for ~vhich the fee ~vas exacted and is entitled to receive immediate service from any existing facilities ~vith actual capacity to serve the ne~v service units, subject to compliance ~vith other valid regulations. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.021. Authority of Political Subdivisions to Spend Funds to Reduce Fees. Political subdivisions may spend funds from any la~vful source to pay for all or a part of the capital improvements or facility expansions to reduce the amount of impact fees. Added by Acts 1989, 71 st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.022. Authority of Political Subdivision to Pay Fees. Political subdivisions and other governmental entities may pay impact fees imposed under this chapter. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.023. Credits Against Roadway Facilities Fees. Any construction of, contributions to, or dedications of off-site roa&vay facilities agreed to or required by a political subdivision as a condition of development approval shall be credited against roadway facilities impact fees other~vise due from the development. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.024. Accounting For Fees and Interest. (0 The order, ordinance, or resolution levying an impact fee must provide that all funds collected through the adoption of an impact fee shall be deposited in interest-bearing accounts clearly identifying the category of capital improvements or facilit7 expansions within the service area for which the fee was adopted. (b) Interest earned on impact fees is considered funds of the account on ~vhich it is earned and is subject to all restrictions placed on use of impact fees under this chapter. (c) Impact fee funds may be spent only for the purposes for xvhich the impact fee xvas imposed as shoxvn by the capital improvements plan and as authorized by this chapter. The records of the accounts into xvhich impact fees are deposited shall be open for public inspection and copying during ordinary business hours. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.025. Refunds. (0 On the request of an oxvner of the propert7 on xvhich an impact fee has been paid, the political subdivision shall refund the impact fee if existing facilities are available and service is denied or the political subdivision has, after collecting the fee when service was not available, failed to commence construction within two years or service is not available within a reasonable period considering the type of capital improvement or facility expansion to be constructed, but in no event later than five years from the date of payment under Section 395.019(1). DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #II21FT, Page 36 (c) The political subdivision shall refund any impact fee or part of it that is not spent as authorized by this chapter ~vithin 10 ),ears after the date of payment. (d) Any refund shall bear interest calculated from the date of collection to the date of refund at the statutory rate as set forth in Article 1.03, Title 79, Revised Statutes (Article 5069-1.03, Vemon's Texas Civil Statutes), or its successor statute. (e) All refunds shah be made to the record o~vner of the properpy at the time the refund is paid. Ho~vever, if the impact fees ~vere paid by another political subdivision or governmental entity, payment shall be made to the political subdivision or governmental entity. (0 The o~vner of the property on ~vhich an impact fee has been paid or another political subdivision or governmental entity that paid the impact fee has standing to sue for a refund under this section. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. SUBCHAPTER C. PROCEDURES FOR ADOPTION OF IMPACT FEE Sec. 395.041. Compliance With Procedures Required. Except as other,vise provided by this chapter, a political subdivision must comply ~vith this subchapter to lev5, an impact fee. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.0411. Capital Improvements Plan. The political subdivision shall provide for a capital improvements plan to be developed by qualified professionals using generally accepted engineering and planning practices in accordance ~vith Section 395.014. Sec. 395.042. Hearing on Land Use Assumptions and Capital Improvements Plan. To impose an impact fee, a political subdivision must adopt an order, ordinance, or resolution establishing a public hearing date to consider the land use assumptions and capital improvements plan for [within] the designated service area [L,~L~v,,:"'ut u~d ~o u~,~,up die Sec. 395.043. Information About Land Use Assumptions and Capital Improvements Plan Available to Public. On or before the date of the first publication of the notice of the hearing on the land use assumptions and capital improvements plan, the political subdivision shall make available to the public its land use assumptions, the time period of the projections, and a description of [th~ g~n~l n~tu~ ~ the capital improvement facilities that may be proposed. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 #II~IFI', Page 37 Sec. 395.044. Notice of Hearing on Land Use Assumptions and Capital Improvements Plan. (0 Before the 30th day before the date of the heating on the land use assumptions and capital improvements plan, the political subdivision shall send a notice of the heating by certified mail to an), person ~vho has given ~vtitten notice by certified or registered mail to the municipal secretary or other designated official of the political subdivision requesting notice of the heating ~vithin t~vo years preceding the date of adoption of the order, ordinance, or resolution setting the public heating. (b) The political subdivision shall publish notice of the hearing [once a ,w~k fu~ 'd~i~ consecud,e ~w~, L.~ ~.~..~.~ ~o appea~ before the 30th day ~ on o~ ~ ~.~ ~.~. day before the date set for the hearing, in one or more ne~vspapers of general circulation in each counU, in ~vhich the political subdivision ~es. Ho~vever, a fiver authofiU, that is authorized else~vhere by state la~v to charge fees that function as impact fees may pub~sh the required ne~vspaper notice only in each counU, in ~vhich the sewice area lies. ~' nodce iiOkiCc iiiuSk be iii lo-pulut of laigci kypc.] (c) The notice must contain: (1) a headline to read as follo~vs: "NOTICE OF PUBLIC HEARING ON LAND USE ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN RELATING TO POSSIBLE ADOPTION OF IMPACT FEES" (2) the time, date, and location of the hearing; (3) a statement that the purpose of the heating is to consider the land use assumptions and "' :11 1 1 I , [L.~ ,w. be u=~u to u~v~,uk, ~] capital improvements plan under ~vhich an impact fee ma), be imposed; and (4) a statement that any member of the public has the right to appear at the hearing and present evidence for or against the land use assumptions and capital improvements plan. Sec. 395.045. Approval of Land Use Assumptions and Capital Improvements Plan Required. (0 After the public hearing on the land use assumptions and capital improvements plan, the political subdivision shall determine ~vhether to adopt or reject an ordinance, order, or resolution approving the land use assumptions and capital improvements plan. (b) The political subdivision, within 30 days after the date of the public hearing, shall approve or disapprove the land use assumptions and capital improvements plan. DENTON, TEXAS\2003-2013 Capital Improvements Plan ]anuary 30, 2003 DII21FT, Page 38 (c) An ordinance, order, or resolution approving the land use assumptions and capital improvements plan may not be adopted as an emergency measure. Sec. 395.0455. Systemwide Land Use Assumptions. (a) In lieu of adopting land use assumptions for each service area, a political subdivision may, except for storm water, drainage, flood control, and roadway facilities, adopt systemwide land use assumptions, ~vhich cover all of the area subject to the jurisdiction of the political subdivision for the purpose of imposing impact fees under this chapter. (b) Prior to adopting systemwide land use assumptions, a political subdivision shall follo~v the public notice, hearing, and other requirements for adopting land use assumptions. (c) After adoption of system~vide land use assumptions, a political subdivision is not required to adopt additional land use assumptions for a service area for water supply, treatment, and distribution facilities or wastewater collection and treatment facilities as a prerequisite to the adoption of a capital improvements plan or impact fee, provided the capital improvements plan and impact fee are consistent ~vith the system~vide land use assumptions. Added by Acts 1989, 71st Leg., ch. 566, Sec. 100), elf. Aug. 28, 1989. Sec. 395.047. Hearing on [Capital liYxpi-o,¢iYxcnts Plan and] Impact Fee. On adoption of the land use assumptions and [~umpl~dun u; ti, G] capital improvements plan, the governing body shall adopt an order or resolution setting a public hearing to discuss the ~; th~ pl~n ~nd] imposition of the impact fee. The public hearing must be held by the governing body of the political subdivision to discuss the proposed ordinance, order, or resolution [~d~pdng ~pit~l iiui~£uvciucilkb pl~, ~-d] imposing an impact fee. Sec. 395.049. Notice of Hearing on [Capital IiYxp,-o,¢iYxcnts Plan and] Impact Fee. (0 Before the 30th day before the date of the hearing on the imposition of an [¢nlVfm~ hiip;ovenients plan and] impact fee, the political subdivision shall send a notice of the hearing by certified mail to an), person ~vho has given ~vritten notice by certified or registered mail to the municipal secretary or other designated official of the political subdivision requesting notice of the hearing ~vithin t~vo years preceding the date of adoption of the order or resolution setting the public hearing. DENTON, TEXAf~\2003-2013 Capital Improvements Plan ]anuary 30, 2003 #II~IFI', Page 39 (b) The political subdivision shall publish notice of the hearing [once a ,w~k f,,~ coiisecukive wcc~b, u~c u~ iiotice [o appcmI before the 30th day ~t on o~ a~c~ die day] before the date set for the heating, in one or more ne~vspapers of general circdadon in each counU, in ~vNch the political subdivision ~es. Ho~vever, a river authoriU, that is authorized else~vhere by state la~v to charge fees that function as impact fees may publish the required ne~vspaper notice o~y in each counU, in ~vNch the se~ice area ~es. [The (c) The notice must contain the follo~ving: (1) a headline to read as follo~vs: "NOTICE OF PUBLIC HEARING ON ADOPTION OF IMPACT FEES" (2) the time, date, and location of the hearing; (3) a statement that the purpose of the hearing is to consider the adoption of an impact fee; (4) [frO] the amount of the proposed impact fee per service unit; and a statement that any member of the public has the right to appear at the hearing and present evidence for or against the plan and proposed fee. Sec. 395.050. Advisory Committee Comments on [Capital Inipi-ovenients Plan and] Impact Fees. The advisory committee created under Section 395.058 shall file its ;vritten comments on the proposed [~pit~l iinp~oveinents plan and] impact fees before the fifth business day before the date of the public hearing on the imposition of the [plan and] fees. Sec. 395.051. Approval of [Capital Inipi-o,enients Plan and] Impact Fee Required. (0 The political subdivision, ;vitbin 30 days after the date of the public hearing on the imposition of an [~pit~l hiip;ovenienks plan and] impact fee, shall approve or disapprove the [auup,_~u, of die ~ap~a~ iinp;o v cinch ts p~a.a.u1' imposition of an impact fee. (b) An ordinance, order, or resolution approving the [~pit~l inip~oveinents plm, imposition of an impact fee may not be adopted as an emergency measure. DENTON, TEXAf~\2003-2013 Capital Improvements Plan ]anuary 30, 2003 DI~IFT, Page 40 n, ~wunn uric uztuc bUcuucu ouu~cu~un ku/kJ;, ~ ~SOii ~qu~SLS, iii ~v~iLiii~, rUOiiS, ocuuunb J2J.W?u-J2J.UJ i Sec. 395.052. Periodic Update of Land Use Assumptions and Capital Improvements Plan Required. (a) A political subdivision imposing an impact fee shah update the land use assumptions and capital improvements plan at least every five [tt'rr~] )Tears. The initial five-year period begins on the day the capital improvements plan is adopted. (b) The political subdivision shall revie;v and evaluate its current land use assumptions and shall cause an update of the capital improvements plan to be prepared in accordance ;vith Subchapter B. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. DENTON, TEXAS\2003-2013 Capital Improvements Plan January 30, 2003 IIltlFT, Page 41 Sec. 395.053. Hearing on Updated Land Use Assumptions and Capital Improvements Plan. The governing body of the political subdivision shall, ~vithin 60 days after the date it receives the update of the land use assumptions and the capital improvements plan, adopt an order setting a public hearing to discuss and revie~v the update and shall determine ~vhether to amend the plan. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.054. Hearing on Amendments to Land Use Assumptions, Capital Improvements Plan, or Impact Fee. A public hearing must be held by the governing body of the political subdivision to discuss the proposed ordinance, order, or resolution amending land use assumptions, the capital improvements plan, or the impact fee. On or before the date of the first publication of the notice of the hearing on the amendments, the land use assumptions and the capital improvements plan, including the amount of any proposed amended impact fee per service unit, shall be made available to the public. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.055. Notice of Hearing on Amendments to Land Use Assumptions, Capital Improvements Plan, or Impact Fee. (a) The notice and hearing procedures prescribed by Sections 395.044(a) and (b) apply to a hearing on the amendment of land use assumptions, a capital improvements plan, or an impact e. glulg tllU JULII a)/ UUIUIU LIIU UaLU O LIIU llUallllg Oii NIIIUIIUIIIUIIL3 [O LIIU lallU (b) [(-0] The notice of a hearing under this section must contain the follo~ving: (1) a headline to read as follo~vs: "NOTICE OF PUBLIC HEARING ON AMENDMENT OF IMPACT FEES" (2) the time, date, and location of the hearing; (3) a statement that the purpose of the hearing is to consider the amendment of land use assumptions and a capital improvements plan and the imposition of an impact fee; and DENTON, TEXAf~\2003-2013 Capital Improvements Plan ]anuary 30, 2003 #ltlFl', Page 42 (4) a statement that any member of the public has the right to appear at the hearing and present evidence for or against the update. Sec. 395.056. Advisory Committee Comments on Amendments. The advisory committee created under Section 395.058 shall file its ;vritten comments on the proposed amendments to the land use assumptions, capital improvements plan, and impact fee before the fifth business day before the date of the public hearing on the amendments. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.057. Approval of Amendments Required. (0 The political subdivision, ;vithin 30 days after the date of the public hearing on the amendments, shall approve or disapprove the amendments of the land use assumptions and the capital improvements plan and modification of an impact fee. (b) An ordinance, order, or resolution approving the amendments to the land use assumptions, the capital improvements plan, and imposition of an impact fee may not be adopted as an emergency measure. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.0575. Determination That No Update of Land Use Assumptions, Capital Improvements Plan or Impact Fees is Needed. (0 If, at the time an update under Section 395.052 is required, the governing body determines that no change to the land use assumptions, capital improvements plan, or impact fee is needed, it may, as an alternative to the updating requirements of Sections 395.052-395.057, do the follo~ving: (1) The governing body of the political subdivision shall, upon determining that an update is unnecessary and 60 days before publishing the final notice under this section, send notice of its determination not to update the land use assumptions, capital improvements plan, and impact fee by certified mail to any person ;vho has, ;vithin t~vo years preceding the date that the final notice of this matter is to be published, give ;vritten notice by certified or registered mail to the municipal secretary or other designated official of the political subdivision requesting notice of hearings related to impact fees. The notice must contain the information in Subsections (b) (2)-(5). (2) The political subdivision shall publish notice of its determination once a ;veek for three consecutive ;veeks in one or more ne;vspapers ;vith general circulation in each county in ;vhich the political subdivision lies. Ho;vever, a river authority that is authorized else;vhere by state la;v to charge fees that function as impact fees may publish the required ne;vspaper notice only in each county in ;vhich the service area lies. The notice of public hearing may not be in the part of the paper in ;vhich legal notices and classified ads appear and may not be smaller than one-quarter page of a standard-size or tabloid-size ne;vspaper, and the headline on the notice must be in 18-point or larger type. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 DI~alFT, Page 43 (b) The notice must contain the following: (1) a headline to read as follo~vs: "NOTICE OF DETERMINATION NOT TO UPDATE LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEES"; (2) a statement that the governing body of the political subdivision has determined that no change to the land use assumptions, capital improvements plan, or impact fee is necessary; (3) an easily understandable description and a map of the service area in ~vhich the updating has been determined to be unnecessary; a statement that if, ~vithin a specified date, ~vhich date shall be at least 60 days after publication of the first notice, a person makes a ~vritten request to the designated official of the political subdivision requesting that the land use assumptions, capital improvements plan, or impact fee be updated, the governing body must comply ~vith the request by follo~ving the requirements of Sections 395.052-395.057; and (5) a statement identifying the name and mailing address of the official of the political subdivision to whom a request for an update should be sent. (c) The advisor5, committee shall file its ~vritten comments on the need for updating the land use assumptions, capital improvements plans, and impact fee before the fifth business day before the earliest notice of the government's decision that no update is necessary is mailed or published. (d) If, by the date specified in Subsection 00)(4), a person requests in xvriting that the land use assumptions, capital improvements plan, or impact fee be updated, the governing body shall cause an update of the land use assumptions and capital improvements plan to be prepared in accordance with Sections 395.052-395.057. (0 An ordinance, order, or resolution determining the need for updating land use assumptions, a capital improvements plan, or an impact fee ma), not be adopted as an emergency measure. Added by Acts 1989, 71st Leg., ch. 566, Sec. l(d), elf. Aug. 28, 1989. Sec. 395.058. Advisory Committee. (0 On or before the date on ~vhich the order, ordinance, or resolution is adopted under Section 395.042, the political subdivision shall appoint a capital improvements advisor5, committee. (b) The advisor5, committee is composed of not less than five members xvho shall be appointed by a majority vote of the governing body of the political subdivision. Not less than 40 percent of the membership of the advisor5, committee must be representatives of the real estate, development, or building industries xvho are not employees or officials of a political subdivision or governmental entity. If the political subdivision has a planning and zoning commission, the commission may act as the advisor5, committee if the commission includes at least one representative of the real estate, development, or building industrs, xvho is not DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 1lll21F'r, Page 44 an employee or official of a political subdivision or governmental entity. If no such representative is a member of the planning and zoning commission, the commission may still act as the advisory committee if at least one such representative is appointed by the political subdivision as an ad hoc voting member of the planning and zoning commission ~vhen it acts as the advisory committee. If the impact fee is to be applied in the extraterritorial jurisdiction of the political subdivision, the membership must include a representative from that area. (c) The advisory committee serves in an advisory capacity and is established to: (1) advise and assist the political subdivision in adopting land use assumptions; (2) revie~v the capital improvements plan and file ~vritten comments; (3) monitor and evaluate implementation of the capital improvements plan; file semiannual reports ~vith respect to the progress of the capital improvements plan and report to the political subdivision any perceived inequities in implementing the plan or imposing the impact fee; and (5) advise the political subdivision of the need to update or revise the land use assumptions, capital improvements plan, and impact fee. The political subdivision shall make available to the advisory committee any professional reports ~vith respect to developing and implementing the capital improvements plan. The governing body of the political subdivision shah adopt procedural rules for the advisory committee to follo~v in carrying out its duties. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. SUBCHAPTER D. OTHER PROVISIONS Sec. 395.071. Duties to be Performed Within Time Limits. If the governing body of the political subdivision does not perform a duty imposed under this chapter ~vithin the prescribed period, a person ~vho has paid an impact fee or an o~vner of land on ~vhich an impact fee has been paid has the right to present a ~vritten request to the governing body of the political subdivision stating the nature of the unperformed duty and requesting that it be performed ~vithin 60 days after the date of the request. If the governing body of the political subdivision finds that the duty is required under this chapter and is late in being performed, it shah cause the duty to commence ~vithin 60 days after the date of the request and continue until completion. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.072. Records of Hearings. A record must be made of any public hearing provided for by this chapter. The record shall be maintained and be made available for public inspection by the political subdivision for at least 10 years after the date of the hearing. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. DENTON, TEXAf~\2003-2013 Capital Improvements Plan 3anuary 30, 2003 #I~IFT, Page 45 Sec. 395.073. Cumulative Effect of State and Local Restrictions. Any state or local restrictions that apply to the imposition of an impact fee in a political subdivision ~vhere an impact fee is proposed are cumulative ~vith the restrictions in this chapter. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.074. Prior Impact Fees Replaced by Fees Under This Chapter. An impact fee that is in place on June 20, 1987, must be replaced by an impact fee made under this chapter on or before June 20, 1990. Ho~vever, any political subdivision having an impact fee that has not been replaced under this chapter on or before June 20, 1988, is liable to any party ~vho, after June 20, 1988, pays an impact fee that exceeds the maximum permitted under Subchapter B by more than 10 percent for an amount equal to t~vo times the difference bet~veen the maximum impact fee allo~ved and the actual impact fee imposed, plus reasonable attorney's fees and court costs. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, eff. Aug. 28, 1989. Sec. 395.075. No Effect on Taxes or Other Charges. This chapter does not prohibit, affect, or regulate any tax, fee, charge, or assessment spedfically authorized by state la~v. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(0, elf. Aug. 28, 1989. Sec. 395.076. Moratorium on Development Prohibited. A moratorium may not be placed on nexv development for the purpose of axvaiting the completion of all or any part of the process necessary to develop, adopt, or update the impact fee. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Sec. 395.077. Appeals. (0 A person xvho has exhausted all administrative remedies within the political subdivision and who is aggrieved by a final decision is entitled to trial de novo under this chapter. (b) A suit to contest an impact fee must be filed within 90 days after the date of adoption of the ordinance, order, or resolution establishing the impact fee. (c) Except for roadxvay facilities, a person xvho has paid an impact fee or an oxvner of propert7 on which an impact fee has been paid is entitled to specific performance of the services by the political subdivision for which the fee was paid. (d) This section does not require construction of a specific facility to provide the services. (0 Any suit must be filed in the county in xvhich the major part of the land area of the political subdivision is located. A successful litigant shall be entitled to recover reasonable attorney's fees and court costs. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.078. Substantial Compliance With Notice Requirements. An impact fee may not be held invalid because the public notice requirements xvere not complied with if compliance was substantial and in good faith. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #ll21Fr, Page 46 Sec. 395.079. Impact Fee for Storm Water, Drainage, and Flood Control in Populous County. (0 Any count7 that has a population of 2.2 million or more or that borders a count7 ~vith a population of 2.2 million or more, and any district or authority created under Article XVI, Section 59, of the Texas Constitution ~vithin any such count7 that is authorized to provide storm ~vater, drainage, and flood control facilities, is authorized to impose impact fees to provide storm ~vater, drainage, and flood control improvements necessary to accommodate ne~v development. (b) The imposition of impact fees authorized by Subsection (a) is exempt from the requirements of Sections 395.025, 395.052-395.057, and 395.074 unless the political subdivision proposes to increase the impact fee. (c) Any political subdivision described by Subsection (a) is authorized to pledge or other~vise contractually obligate all or part of the impact fees to the payment of principal and interest on bonds, notes, or other obligations issued or incurred by or on behalf of the political subdivision and to the payment of any other contractual obligations. An impact fee adopted by a political subdivision under Subsection (a) may not be reduced if: (1) the political subdivision has pledged or other,vise contractually obligated all or part of the impact fees to the payment of principal and interest on bonds, notes, or other obligations issued by or on behalf of the political subdivision; and (2) the political subdivision agrees in the pledge or contract not to reduce the impact fees during the term of the bonds, notes, or other contractual obligations. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.080. Chapter Not Applicable to Certain Water-Related Special Districts. (a) This chapter does not apply to impact fees, charges, fees, assessments, or contributions: (1) paid by or charged to a district created under Article XVI, Section 59, of the Texas Constitution to another district created under that constitutional provision if both districts are required by la~v to obtain approval of their bonds by the Texas Natural Resource Conservation Commission; or (2) charged by an entit7 if the impact fees, charges, fees, assessments, or contributions are approved by the Texas Natural Resource Conservation Commission. (b) Any district created under Article XVI, Section 59, or Article III, Section 52, of the Texas Constitution may petition the Texas Natural Resource Conservation Commission for approval of any proposed impact fees, charges, fees, assessments, or contributions. The commission shall adopt rules for reviewing the petition and may charge the petitioner fees adequate to cover the cost of processing and considering the petition. The rules shall require notice substantially the same as that required by this chapter for the adoption of impact fees and shall afford opportunity for all affected parties to participate. Added by DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 #II21FT, Page 47 Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.257, elf. Sept. 1, 1995. Sec. 395.082. Certification of Compliance Required. A political subdivision that imposes an impact fee shall submit a ~vritten certification veri~Ting compliance ~vith this chapter to the attorney general each year not later than the last day of the political subdivision's fiscal year. The certification must be signed by the presiding officer of the governing body of a political subdivision and include a statement that reads substantially similar to the follo~ving: "This statement certifies compliance ~vith Chapter 395, Local Government Code." A political subdivision that fails to submit a certification as required by this section is liable to the state for a civil penaky in an amount equal to 10 percent of the amount of the impact fees erroneously charged. The attorney general shall collect the civil penaky and deposit the amount collected to the credit of the housing trust fund. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 30, 2003 I}I{~IFT, Page 48 (2) the political subdivision agrees in the pledge or contract not to reduce the impact fees during the term of the bonds, notes, or other contractual obligations. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28, 1989. Sec. 395.080. Chapter Not Applicable to Certain Water-Related Special Districts. (a) This chapter does not apply to impact fees, charges, fees, assessments, or contributions: O) paid by or charged to a district created under Article XVI, Section 59, of the Texas Constitution to another district created under that constitutional provision if both districts are required by la~v to obtain approval of their bonds by the Texas Natural Resource Conservation Commission; or (2) charged by an entity if the impact fees, charges, fees, assessments, or contributions are approved by the Texas Natural Resource Conservation Commission. (b) Any district created under Article XVI, Section 59, or Article III, Section 52, of the Texas Constitution may petition the Texas Natural Resource Conservation Commission for approval of any proposed impact fees, charges, fees, assessments, or contributions. The commission shall adopt rules for reviewing the petition and may charge the petitioner fees adequate to cover the cost of processing and considering the petition. The rules shall require notice substantially the same as that required by this chapter for the adoption of impact fees and shall afford opportunity for all affected parties to participate. Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), elf. Aug. 28, 1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.257, elf. Sept. 1, 1995. Sec. 395.082. Certification of Compliance Required. A political subdivision that imposes an impact fee shall submit a xvritten certification veri~4ng compliance with this chapter to the attorney general each year not later than the last day of the political subdivision's fiscal year. The certification must be signed by the presiding officer of the governing body of a political subdivision and include a statement that reads substantially similar to the following: "This statement certifies compliance with Chapter 395, Local Government Code." A political subdivision that fails to submit a certification as required by this section is liable to the state for a civil penalty in an amount equal to 10 percent of the amount of the impact fees erroneously charged. The attorney general shall collect the civil penaky and deposit the amount collected to the credit of the housing trust fund. DENTON, TEXAf~\2003-2013 Capital Improvements Plan January 22, 2003 #ll).Fr, Page 49 02~04~03 WS#2 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Water Utilities Howard Martin, 349-8232 SUBJECT Receive a report, hold a discussion and give staff direction regarding the draft Mosquito Surveillance and Response Plan produced for the City of DeNon. BACKGROUND The recem West Nile Virus concerns have prompted the Water Utilities Department to create a Mosquito Surveillance and Response Plan (MSRP) for the City of DeNon. This plan omlines the City of DeMon's philosophy of mosquito control and explains how mosquito monitoring data will be used to inform the citizens of DeNon of the risk of disease and to direct comrol methods. The overall goal of the MSRP is to use data on mosquito populations and mosquito virus infection rates to: · assess the threat of human disease; · determine geographical areas of highest risk; · assess the need for and timing of intervention events; · idemify larval habitats that are in need of targeted comrol; · monitoring the effectiveness of control measures; and · develop a better understanding of transmission cycles and vector species The types of mosquito comrol strategies milized by the City of DeNon have been the topic of previous council meetings. As stated in prior meetings, the City of Denton has not utilized chemicals for adult mosquito comrol since 1995 and has instead relied on public information, source comrol and larvicides. Source reduction is approached using a strong public education campaign, which includes tips in the local paper, web page information, imerviews with regional media, and public information spots running on DTV (Cable Channel 26). The focus of this public information campaign is to help citizens recognize areas within their yards and homes that can trap water and provide breeding habitat for mosquitoes. According to the Centers for Disease Comrol and Prevemion (CDC) source reduction "remains the most effective and economical method of providing long term mosquito control in many habitats". The EPA also states "it is especially important to conduct effective mosquito prevention programs by eliminating breeding habitats or applying pesticides to control the early life stages of the mosquito. Prevention programs, such as elimination of any standing water that could serve as breeding sites, help reduce the adult mosquito population and the need to apply other pesticides for adult mosquito control". Although source reduction and larviciding are considered to be the best long-term comrol strategies, the recent proliferation of West Nile Virus and the associated threat to human health remain legitimate concerns. During 2002, West Nile Virus spread to almost all of the contiguous United States and had a much higher incidence of human infection compared to previous years. West Nile virus has also had a large impact on wildlife species (particularly birds) and domestic animals (particularly horses). We therefore feel that the formation of a logical, progressive methodology for mosquito comrol is both timely and necessary. The Mosquito Surveillance and Response Plan outlines mosquito comrol methodologies recommended by the City of DeNon. The primary objective of the Plan is to make use of Imegrated Pest Managemem (IPM) methods in order to be protective of both human health and the environmem. The MSRP has been formed using numerous sources, including: · the Texas Department of Health, · The Texas, California, and Florida Mosquito Comrol Associations · The Cemer for Disease Comrol and Prevemion (CDC) · The World Health Organization · The Departments of Health for the Cities of New York and St. Louis. · The Department of Health and Human Services · The National Center for Infectious Disease, Division of Vector-Borne Infectious Diseases. The basic approach of the MSRP is to recommend the City of DeMon's response to a particular set of conditions that are indicative of the probability of human outbreak. Using the monitoring data generated by the partnership with UNT, we will be able to assess the density of mosquitoes and the incidence of viral infection rates within the mosquito populations of DeNon. This information will be used to assess the probability of risk to human health and to convey this information to the public in a timely manner. The prevemion or minimization of the incidence of West Nile Virus, as with many diseases, is most efficiently accomplished by ensuring that prompt, accurate information reaches the public. Once the information reaches the public, personal protective measures and other comrols may be implememed without panic or confusion. OPTIONS 2. 3. 4. Adopt the recommendations outlined in the Mosquito Surveillance and Response Plan (MSRP) Do not adopt the recommendations of the MSRP and maintain the current program Eliminate the mosquito control program Modify mosquito program to include adulticide comrol PRIOR ACTION/REVIEW (Council, Boards, Commissions) Issues concerning mosquito comrol have been brought before council during the July 16 and September 3, 2002 work sessions FISCAL INFORMATION Current approximate annual costs of mosquito control program: Drainage Field Operations Public Information/Education* Total Expenses Monitoring program with UNT $2304.80 $85O.OO $3154.80 $13,036.00 (*Public Information cost do not include production expenses.) EXHIBITS 1. Mosquito Response Plan Presentation Respectfully submitted: Jim Coulter Assistant Director of Water/Wastewater Utilities Prepared by Kenneth Banks Water Resources Program Manager female pupa eggs West Ni!e Virus in the United ~V ~ H~mans Ve~i'~ avian, animal, and mosquito ir~ectior~s ~u~i~ 2002, as of Oecem~r 1I, 2002 Indicates h~an ve~'if~ed as of ~c~ber 1~, 2062 ~ Posit:Ire Test R~$1~ts ~ No Repofl. s Ni Virus Transmi 02~04~03 #4A CITY OF DENTON CITY COUNCIL MINUTES January 7, 2003 After determining that a quorum was presem, the City Council convened in a Work Session on Tuesday, January 7, 2003 at 5:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Pro Tem Burroughs; Council Members Fulton, Montgomery, Phillips, and Redmon. ABSENT: Mayor Brock and Council Member McNeill 1. The Council held a discussion regarding minority hiring practices in the City of Demon Carla Romine, Director of Human Resources, reviewed the City's currem practices including the areas of recruitmem, retemion and developmem as noted in the City's Diversity Plan. Council discussed the City's policies and practices relative to minority hiring and the possibility of the appoimmem a committee to advise Council on diversity issues. City Manager Conduff noted that such a committee could advise the Council but per the provisions of the Charter could not advise staff. 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for January 7, 2003. Council allowed commems from citizens presem at the meeting regarding Item #1 - minority hiring practices. Jackie Sasser - spoke regarding the hiring of a Director at the Martin Luther King, Jr. Recreation Center Harold Williams - spoke regarding the hiring system for the City of DeNon Regular Meeting of the City of DeNon City Council on Tuesday, January 7, 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 Pro Tem Burroughs presented a proclamation for Denton Viper - Denton Soccer Association Day. The City was presemed the Dallas Regional Mobility Coalition Travel Demand Management Award. Mayor Pro Tem Burroughs presented recognition awards to the Denton Independent School District. City of DeNon City Council Minutes January 7, 2003 Page 2 B. Resolutions of Appreciation The Council considered approval of a Resolution of Appreciation for Jerry Clark. Phillips motioned, Montgomery seconded to approve the resolution. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. The Council considered approval of a Resolution of Appreciation for Kenny Kirkland. Phillips motioned, Fulton seconded to approve the resolution. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. The Council considered approval of a Resolution of Appreciation for Mike Bateman. Phillips motioned, Redmon seconded to approve the resolution. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. 3. CITIZEN REPORTS A. The Council received citizen reports from the following: 1. Ross Melton: Code Enforcement, the Council, Attorneys and the budget. Mr. Melton stated that he continues to ask questions relative to Code Enforcement with no answers from the City. He reviewed his opinion regarding his lawsuit against the City. 2. Ed Soph: think of the children. Mr. Soph was not present at the meeting. 3. John Paul Eddy: a message for the water tower. Dr. Eddy suggested some type of signs for the City stating that DeNon was a city of champions. He noted various athletic, academic and other championships that needed to be recognized. 4. Willie Hudspeth: citizen concerns for Southeast Denton. Mr. Hudspeth was not presem at the meeting. Carolyn Phillips spoke in his place after a unanimous vote by Council to suspend the rules. Ms. Phillips stated that the issue of concern was whether or not there was fairness in the process of hiring a director at the Martin Luther King, Jr. Recreation Cemer and whether there was room for improvemem in the hiring process. City of DeNon City Council Minutes January 7, 2003 Page 3 5. Peternia Washington: issues with the Parks Departmem. Ms. Washington reviewed a history of problems she had experienced at the Martin Luther King, Jr. Recreation Cemer. She asked Council to reconsider the hiring of a director at the Cemer. Council Member Redmon left the meeting. 4. CONSENT AGENDA Phillips motioned, Fulton seconded to approve the Consem Agenda and accompanying ordinances and resolutions. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", and Phillips "aye". Motion carried unanimously. mo Approved the minutes of November 12, November 19, November 20, and December 10, 2002. 2003-01 - An ordinance authorizing the City Manager to execute Change Order Number One to the contract between the City of DeNon and Jones and Jeffery Construction Company; inc. providing for the expenditure of funds therefore; and providing an effective date (File 2946 - Bid 2900 Evers Park Parking Lot improvemems Change Order One in the amoum of $177,130). Co 2003-02 - An ordinance accepting competitive bids and awarding a comract for the purchase of a Type 11 Transit Bus; providing for the expenditure of funds therefore; and providing an effective date (Bid 2867 - Transit Bus awarded to Lasseter Bus and Mobility in the amoum of $174,246). Do 2003-03 - An ordinance of the City of DeNon, Texas authorizing the expenditure of funds for the paymems by the City of DeNon for Electrical Energy Transmission fees to those listed cities and utilities providing energy transmission services to the City of DeNon; and providing an effective date (Purchase Order 108983 to American Electric Power in the amoum of $65,999, Purchase Order 108984 to Reliam Energy in the amoum of $81,484.25, Purchase Order 108985 to Oncor/TXU in the amoum of $84,590.25, and Purchase Order 108986 to Lower Colorado River Authority in the amoum of $54,566 for a total amoum of $286,639,50). mo R2003-01 - A resolution by the City Council of the City of DeNon relating to the issuance of Bonds by the North Texas Higher Education Authority, inc.; approving the issuance of such Bonds and the use of the proceeds of such Bonds; and making certain findings in connection therewith; and providing an effective date. Fo 2003-04 - An ordinance of the City of DeNon, Texas authorizing the City Manager to execute a Third Amended Contract for Professional Legal Services with the Law Firm of Dickstein, Shapiro, Morin & Oshinsky, L.L.P. for services pertaining to continued partial electric generation divestiture issues; authorizing City of Demon City Council Minutes January 7, 2003 Page 4 the expenditure of funds therefor; providing for retroactive approval of the agreement; and providing an effective date. Go Ho R2003-02 - A resolution amending Resolution No. R2002-054 of the City of Denton, Texas adopting the City of Denton's 2003 State Legislative Program; providing a repealer; and providing an effective date. Approved tax refunds for the following property taxes: Name Reason Tax Year Amount 2. ACLP Swisher Road Commercial c/o Erroneous Payment Today Realty Advisors Inc. 2001 648.51 Council Member Redmon returned to the meeting. 5. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance granting approval of an off-site sub-surface use of North Lakes, Denia Park and Airport Open Space Park for the purpose of oil and gas drilling operations in accordance with Chapter 26 of the Texas Parks and Wildlife Code; providing for an oil and gas lease; and providing an effective date. Bob Tickner, Superimendem of Parks, stated that the public hearing was required by State law in order to offer protection to parks and recreational lands. The ordinance would allow an off site sub-surface use of the area for oil and gas drilling. The staff and the Parks, Recreation and Beautification Board recommended approval. The Mayor Pro Tem opened public hearing. No one spoke during the public hearing. The Mayor Pro Tem closed the public hearing. The following ordinance was considered: NO. 2003-005 AN ORDINANCE GRANTING APPROVAL OF AN OFF-SITE SUB-SURFACE USE OF NORTH LAKES, DENIA PARK AND AIRPORT OPEN SPACE PARK FOR THE PURPOSE OF OIL AND GAS DRILLING OPERATIONS IN ACCORDANCE WITH CHAPTER 26 OF THE TEXAS PARKS AND WILDLIFE CODE; PROVIDING FOR AN OIL AND GAS LEASE; AND PROVIDING AN EFFECTIVE DATE. City of DeNon City Council Minutes January 7, 2003 Page 5 Phillips motioned, Fulton seconded to adopt the ordinance. On roll vote, Burroughs "aye", Fulton "aye", Montgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance granting approval of a surface use of a portion of the Denton Branch Rail Trail at Walton Road Milepost 727.6 for the purpose of a public street easemem in accordance with Chapter 26 of the Texas Parks and Wildlife Code; providing for a mility easemem; and providing an effective date. Bob Tickner, Superimendem of Parks, stated that a public hearing was required when parkland was going to be used for purposes other than recreational purposes. The City of Corinth had requested a street easement to improve Walton Road in their city limits. Staff and the Parks, Recreation and Beamification Board recommended approval. The Mayor Pro Tem opened the public hearing. No one spoke during the public hearing. The Mayor Pro Tem closed public hearing. The following ordinance was considered: NO. 2003-006 AN ORDINANCE GRANTING APPROVAL OF A SURFACE USE OF A PORTION OF THE DENTON BRANCH RAIL TRAIL AT WALTON ROAD MILEPOST 727.6 FOR THE PURPOSE OF A PUBLIC STREET EASEMENT IN ACCORDANCE WITH CHAPTER 26 OF THE TEXAS PARKS AND WILDLIFE CODE; PROVIDING FOR A UTILITY EASEMENT; AND PROVIDING AN EFFECTIVE DATE. Phillips motioned, Fulton seconded to adopt the ordinance with Option 4. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance rezoning three parcels, totaling approximately 0.3 acres from a Dowmown Residemial 1 (DR-l) zoning district to a Dowmown Commercial General (DC-G) zoning district. The property, commonly known as 715, 716, and 808 Pacific Street, was generally located between Carroll Boulevard and Pacific Street 200 feet north of Eagle Drive. Office uses were proposed. The Planning and Zoning Commission recommended approval (7-0). (Z02-0042, 715, 716 & 808 Pacific Stree0 Larry Reichhart, Assistant Director of Planning and Development, stated that the property was located on the east side of Carroll Blvd. Part of the proposal was a land swap with the adjacem property owner. The swap would also result in a realignmem of Duchess Drive. Opposition to the proposal was at 14% thus not requiring a supermajority vote by the Council. Council discussed the provisions of parking, access to the site, tree preservation for the site and the mobility plan relative to the proposal. City of DeNon City Council Minutes January 7, 2003 Page 6 The Mayor Pro Tem opened the public hearing. No one spoke during the public hearing. The Mayor Pro Tem closed the public hearing. The following ordinance was considered: NO. 2003-007 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM DOWNTOWN RESIDENTIAL 1 (DR-l) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO DOWNTOWN COMMERCIAL GENERAL (DC-G) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY 0.3 ACRES OF LAND COMMONLY KNOWN AS 715, 716 AND 808 PACIFIC STREET AND GENERALLY LOCATED BETWEEN CARROLL BOULEVARD AND PACIFIC STREET, APPROXIMATELY 200 FEET NORTH OF EAGLE DRIVE; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z02-0042) Momgomery motioned, Burroughs seconded to adopt the ordinance as recommended by the Planning and Zoning Commission. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 0.5 acres from a Dowmown Residemial 1 (DR-l) to a Dowmown Residemial 2 (DR-2) zoning district. The site was generally located at 910 and 912 Avenue A at the southeast corner of Fannin and Avenue A, south of Eagle Drive. Multi-family residential was proposed. The Planning and Zoning Commission recommended approval (7-0). (Z02-0059, Darnel1.4 ddition) Larry Reichhart, Assistant Director for Planning and Development, stated that the proposal was to change the existing zoning from DR-1 to DR-2. The property was located in the Downtown University core district. The Planning and Zoning Commission had recommended approval of the proposal. There was less than 2% opposition thus not requiring a supermajority vote by the Council. The Mayor Pro Tem opened the public hearing. The following individual spoke during the public hearing: Karen Mitchell, Mitchell Planning Group, spoke in favor - she stated that the letter of opposition was from an individual who according to a relative was not clear on the issues. The Mayor Pro Tem closed the public hearing. The following ordinance was considered: City of Demon City Council Minutes January 7, 2003 Page 7 NO. 2003-008 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM DOWNTOWN RESIDENTIAL 1 (DR-l) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO DOWNTOWN RESIDENTIAL 2 (DR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY 0.5 ACRE OF LAND LOCATED AT 910 AND 912 AVENUE A 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. (Z02-0059) Phillips motioned, Fulton seconded to adopt the ordinance. On roll vote, Burroughs "aye", Fulton "aye", Montgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. E. The Council held a public hearing and considered adoption of an ordinance granting a Specific Use Permit to allow a wireless communications tower over 85' high on approximately 0.44 acres. The site was in an Industrial Cemer Employmem (lC-E) zoning district. The subject property was commonly known as 303 East Massey Street. A 195' wireless communications tower was proposed. The Planning and Zoning Commission recommended approval (7-0). (Z02-0055, Titan Towers) Larry Reichhart, Assistant Director of Planning and Development, stated that the tower was a permitted use on this property but the height of the tower required a specific use permit. No letters had been received on the proposal. The Mayor Pro Tem opened the public hearing. The following individual spoke during the public hearing: David Baker, Titan Towers - favor The Mayor Pro Tem closed the public hearing. The following ordinance was considered: NO. 2003-009 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT FOR A WIRELESS COMMUNICATIONS TOWER ON APPROXIMATELY 0.44 ACRES OF LAND COMMONLY KNOWN AS 303 EAST MASSEY STREET, WITHIN AN INDUSTRIAL CENTER EMPLOYMENT (lC-E) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z02-0055) City of DeNon City Council Minutes January 7, 2003 Page 8 Phillips motioned, Fulton seconded to adopt the ordinance. On roll vote, Burroughs "aye", Fulton "aye", Montgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. F. The Council held a public hearing and considered adoption of an ordinance amending Ordinance 99-439, regarding a Comprehensive Plan Amendmem, from Employmem Center to Neighborhood Center. The area for amendment encompassed approximately 2.0 acres. The site was generally located at the southeast corner of the Mingo Road and Mockingbird Lane intersection. Residential uses would continue at this site. The Planning and Zoning Commission recommended approval (7-0). (CA02-0005, 1708 and 1702 Mockingbird Lane) Larry Reichhart, Assistant Director of Planning and Development, stated that the property was currently located in an employment center and the request was to change it to a neighborhood center. There were curremly two homes on the property. No letters had been received on the proposal. The Mayor Pro Tem opened the public hearing. No one spoke during the public hearing. The Mayor Pro Tem closed the public hearing. The following ordinance was considered: NO. 2002-010 AN ORDINANCE AMENDING THE LAND USE PLAN OF THE DENTON PLAN 1999-2020 FOR AN AREA ENCOMPASSING APPROXIMATELY 2.0 ACRES GENERALLY LOCATED AT THE SOUTHEAST CORNER OF THE MINGO ROAD AND MOCKINGBIRD LANE INTERSECTION, FROM EMPLOYMENT CENTER TO NEIGHBORHOOD; PROVIDING AN EFFECTIVE DATE. (CA-02-0005) Fulton motioned, Redmon seconded to adopt the ordinance. On roll vote, Burroughs "aye", Fulton "aye", Momgomery "aye", Phillips "aye", and Redmon "aye". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. New Business The following items of New Business were suggested by Council Members for future agendas: A. Council Member Redmon suggested an independem study from an outside consultam to look at the emire city's hiring of minorities, the Diversity Plan and implememation. B. Council Member Redmon questioned if the Parks and Recreation Department had changed its mission statement to a "pay as you go" use. City of DeNon City Council Minutes January 7, 2003 Page 9 C. Council Member Phillips requested a follow up on Dr. Eddy's suggestion that the city initiate some of type of signage to recognize DeNon as a "city of champions". D. Council Member Phillips and Council Member Fulton asked for a report on a provision to allow FFA competition animals in the city limits. E. Council Member Redmon stated that the 1986 bond election had required three recreation centers and questioned the status of the other centers. F. Council Member Redmon asked aboN a citizen's recourse with a complain aboN the hiring of an individual. G. Council Member Montgomery requested that staff look at the eNire picture of animals in the city limits rather than just FFA animals. B. Items from the City Manager City Manager Conduff did not have any items for Council. C. There was no coNinuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. D. 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 8:15 p.m. MARK BURROUGHS MAYOR PRO TEM CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES January 13, 2003 After determining that a quorum was presem, the City of DeNon City Council convened in a Work Session on Monday, January 13, 2003 at 11:00 a.m. in the City Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Fulton, McNeill, Momgomery, and Phillips. ABSENT: Council Member Redmon 1. The Council received a report, held a discussion, and gave staff direction regarding a review of the Boards/Commissions. Mike Conduff, City Manager, presemed information regarding the formalizing of practices that had been followed in the past several months. He stated that the Council's jobs were to determine the vision for the city; articulate the outcomes; delegate authority; and monitor results. He stated that Council should focus on the tasks that only the Council could do; set the outcomes; and delegate activities to others. The roles of the boards included advising the Council to help the Council do its job such as the Planning and Zoning Commission and Traffic Safety Commission, advising the staff to assist in achieving outcomes such as the Parks, Recreation and Beautification Board. A question Council could ask was whom was the board advising in this situation. Council appoimed boards could spend more time on issues; focus on details, and hear more input than the Council. A good governance agreemem to follow that supported the theory was that Council set aims and outcomes; all boards worked under the Council authority; and Council supported the decisions of the boards. A question to ask when considering an issue was if the board recommendation furthered Council outcomes. If the answer were yes, were the board and staff in agreemem - was the information the same and was the information received individually by the Council or were presemations made before the Council? If the answer to those questions was yes, the Council should approve the board recommendation. If the answer was no, the Council should remand the issue with commems back to the board for the board to understand the new information instead of overturning the decision by the board. If the board and staff agreed, the item should be placed on the consem agenda if allowed; if the item required a public hearing, was there new information? If not, the board recommendation should be supported if no new information were presemed. If the board and staff disagreed, it was suggested that the item be placed on the regular agenda, the Council listen to the input; and if the Council agreed with the board; support the board recommendation. If the council disagreed with the board and agreed with staff, the item should be remanded to the board with commems to help the board understand the issue. Advamages to this procedure included the empowermem of the boards, it allowed Council to focus on outcomes, the participants knew where to invest their time, and provided consistency to the process. Conduff suggested that if the Council were in agreemem with this procedure, sessions should be held with keyboards to talk about the process and philosophy; include community education in process; and try it. Mayor Pro Tem Burroughs stated that he liked the idea of meeting with the various boards and felt it could be done once a year with the board that provided more input to Council and perhaps every two years with those boards that did not provide as much input to Council. He felt that City of Demon City Council Minutes January 13, 2003 Page 2 with a severe split in the vote, it was not valuable to send an item back to the Planning and Zoning Commission. There may be some circumstances when a board did not have a good sense on the outcome of an issue and needed council guidance. It might be burdensome to remand in some circumstances. Council Member McNeill stated that there may be a 5-2 Planning and Zoning Commission vote for approval but Council might be concerned that the Commission did not look at certain issues or that the board missed the mark. Council Member Fulton felt that the decision needed to be with the Council. There was too much on the Consem Agenda and rubber-stamping of board decisions. Some boards members felt that they were being misdirected from staff and not getting full information. Council was elected to make the decisions. Mayor Brock felt that it helped to have the transcription of the Planning and Zoning Commission minutes and that it provided an opportunity to ask for additional information. She felt the board/commission members should be encouraged to review information and ask for additional information that might not be there. Council Member McNeill stated that he liked the process as described and that the process was described in the Charter. If Council received information that the Planning and Zoning Commission members did not have, it would be a legitimate reason to send the item back to the Commission. Council Member Fulton felt that the public was not being properly informed on the Council's actions, especially with items on the Consent Agenda. City Manager Conduff suggested that the Council needed to determines its role. If that role were to educate the community, it would have to be determined how to do that. He felt there were lots of ways for the community to become educated and get information. Council Member Phillips felt that the Council had empowered its boards to look at many of the details and that Council did not have to do that. Council Member McNeill felt that there were many opportunities for the public to address their concerns to Council. He felt that the process described was the best utilization of the boards and of the Council's time. Council needed to listen to the boards. If not, all of the boards should be abolished and Council would do the roles. He questioned if there were too many boards or commissions, if there might be a need to combine some, change some roles, or change whom the board/commission reported to. Mayor Brock did not see any boards that could be eliminated. She felt that the Council should appoim the members to the boards even if the board made recommendations to staff. Council rated the boards and commissions in terms of reporting structure: "A" reported to Council, "B" reported to staff, and "C" other. The "A" category included the Human Services Advisory Board, the Planning and Zoning Commission and the Public Utilities Board. The "B" category included the Civil Service Commission, the Library Board, and the Parks, Recreation City of DeNon City Council Minutes January 13, 2003 Page 3 and Beautification Board. It was felt that some boards were both "A and B" and included the Airport Advisory Board and the Community DevelopmeN Advisory Committee. Boards that fell in the "C" category included the Construction Advisory and Appeals Board, the DeNon Housing Authority, the Historic Landmark Commission, TMPA and the Zoning Board of AdjustmeN. Council discussed the appoiNing process for the boards and commissions. It was noted that in some cities, appointments to boards and commissions in the "B" and "C" categories were delegated to staff with direction on geographic representation, demographic representation and set criteria for appointment from council. Consensus of the Council was to continue to make its own appointments. Council would welcome recommendations from staff for appointments especially in the "B" and "C" categories. Consensus of Council was to move forward with the join sessions with the boards to discuss the process, how the boards were doing and how was Council treating the board's recommendations. The Planning and Zoning Commission would have a separate meeting as they provided the most input to council. One meeting would be scheduled with the Human Services Committee and the Community DevelopmeN Advisory Board. Another meeting would be scheduled with the Airport Advisory Board and the Public Utilities Board. These meetings would be scheduled within the next 90 days. After that, meetings with the chairs of the "B and C" boards would be scheduled. Council also discussed the possibility of combining boards such as the Traffic Safety Commission and the Planning and Zoning Commission. 2. The Council received a report, held a discussion, and gave staff direction regarding a review of the Council Rules/Procedures. City Manager Conduff questioned if any of the Council had concerns with the Council's Rules and Procedures. Council Member McNeill asked about the electronic use for council concerns. City Manager Conduff replied that it was rarely used. Council commented that requests were sometimes made during the meetings in order to let citizens know that the Council was addressing their concerns. Council also discussed various sections of the rules and procedures including citizen report, speaker cards, and preseNations by members of Council and printed/typewritten ordinances for Council review. 3. The Council received a report, held a discussion, and gave staff direction regarding a review of the City Council retreat. Betty Williams, Director of Management and Public Information, presented a strategy review of methods to overcome barriers to success. Council discussed whether or not there was a need for a lobbyist on the state level. Consensus of the Council was that as the City utilized a specialized lobbyist when needed, had a staff person who was a registered lobbyist and Council attended legislative sessions when needed, there was City of Demon City Council Minutes January 13, 2003 Page 4 no need for a lobbyist on the state level at this time. Consensus of Council was that most of the issues were well in the works. Council Member Phillips left the meeting. 4. The Council considered appointmem of a Council Member as coordinator for the Council' s Adopt-A-Spot. Consensus of Council was to appoint Council Member Fulton as the coordinator. With no further business, the meeting was adjourned at 1:15 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES January 14, 2003 After determining that a quorum was presem, the City Council convened in a Planning Session on Tuesday, January 14, 2003 at 4:30 p.m. in the City Council Work Session Room. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Montgomery, Phillips, and Redmon. ABSENT: Council Members Fulton and McNeill. 1. The Council received a report, held a discussion, and gave staff direction regarding Education and economic developmem in the City of DeNon. Linda Ratliff, Director of Economic Development, presented information on education's impact on economic developmem in general, as well as specific information on the various schools and universities in the area. Council Member McNeill arrived at the meeting. Rick Woolfolk, DISD Board Presidem, reviewed information regarding numbers of economically disadvantaged students in the District that had an effect on the tax value per student ratio. He reviewed the provisions of the mentoring program at the DISD for disadvamaged children. Council discussed with Woolfolk attendance zones for the schools, property taxes, academic reputations of school districts relative to economic development, and coalition of public information officers of all area schools to help promote the schools. Richard Rares, University of North Texas, reviewed the economic impact of the University in the City, growth of the studem population, challenges facing the University, and mass transit. Ratliff continued with a presentation of a "college town" definition. Judith Bean, Texas Woman's University, stated that TWU was eager to work with the City in any area, including target growth, developing associated resources, and sharing ideas with all emities in the city. Council discussed with Bean marketing strategies, legislative priorities important to TWU, and funding scenarios. Council discussed outcomes they would like to see relative to education and economic developmem. Those outcomes included: Partner services and projects with the schools and universities Avoid duplication of services Be proactive to take advamage of services/projects the universities could offer in partnership with the City Invemory programs that the universities were doing in the community to use as a marketing tool Get the message to the business community about the value of the universities City of Demon City Council Minutes January 14, 2003 Page 2 Work with developers/realtors to build housing to strengthen economic development Partner with educational institutions to deal with important legislative issues Establish a business park in Demon Increase extension of heath care services through universities and hospitals Market Denton as a medical destination Expand the marketing of the music business in Demon Ask university departmems what businesses would best benefit them Off limit issues in terms of education included: Returning to the idea that universities were a burden Having communication among the universities and city Adding tax-exempt projects in the City Having the University in competition with developers in the city in terms of multi-family housing Council Member Redmon left the meeting. With no further business, the meeting was adjourned at 7:10 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES January 21, 2003 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, January 21, 2003 at 4:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem Burroughs; Council Members Fulton, McNeill, Montgomery, Phillips, and Redmon. ABSENT: None 1. The Council received a report, held a discussion, and gave staff direction regarding the Denton Development Code's NRMU and NRMU-12 zoning classifications. Dave Hill, Assistant City Manager for Development Services, stated that during the first quarterly review of the Development Code, Council had referred several issues related to the Neighborhood Residential Mixed Use Zoning Classifications to the Planning and Zoning Commission for analysis and revision recommendations. An amendment recommended by a split vote of the Commission, would require the approval of a Specific Use Permit for NRMU-12 multi-family development located within 200 feet of an existing single family dwelling. That amendment was tabled by Council for further study and analysis. To date, no NRMU-zoned properties had been developed in the City that would help to demonstrate how the code regulated mixed-use projects. Major points to be considered regarding the NRMU districts included: 1. NRMU and NRMU-12 have not been used much at this time and there are not good examples to refer to at this time. No examples of how the new code impacted mixed use or multi-family development was available to assess the adequacy of the new regulations. 2. The imposition of a specific use requirement should be used only in cases where the potential variability of a certain type of land use was so great that development characteristics were unpredictable. 3. The impact of the imposition ora specific use permit for NRMU-12 multi-family development would increase project planning, design, and processing costs significantly. The potential for site plan revisions required, as a condition of a specific use permit approval would heighten the level of uncertainty for applicants. 4. If a property zoned NRMU or NRMU-12 was clearly inappropriate for the area within which it was located, the zoning should be changed rather than imposing the specific use permit requirement. 5. Approximately 1.1% of the city's land area were zoned NRMU-12 and located within 200 feet of platted single-family lots. Staff was recommending that the proposed NRMU-12 specific use permit amendment not be pursued at this time. Site design standards or specific NRMU-12 zoning district locations should be reexamined if changes were warranted. Council discussed the newness of the regulations, grandfathering for existing zoning, the broadness of the NRMU category, identification of specific sites that would be affected, and the crafting of regulations to address the issues and definitions listed in the Code such as an NRMU infill category. City of DeNon City Council Minutes January 21, 2003 Page 2 Consensus of Council was to direct staff to research smaller categories for NRMU and group similar uses together. This would be geared towards infill and might add a new category of non- resideNial uses iNended to promote neighborhood services. There would be no specific use permit for the two-stage process with a limited zoning category restricted for limited situations. 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for the City Council regular meeting of January 21, 2003. Following completion of the Work Session, Council considered the following in Closed Meeting: 1. Closed Meeting: Consultation with Attorney - Under TEXAS GOVERNMENT CODE Section 551.071. Considered and discussed status of litigation styled Robinson v. City of Denton, et al., Cause No. A167804, currently pending in the 58th District Court, Jefferson County, Texas. Council Member Fulton left the meeting with a conflict of interest. Deliberations regarding real property---Under TEXAS GOVERNMENT CODE Section 551.072 and Consultation with Attorney---Under TEXAS GOVERNMENT CODE Section 551.071. Deliberated the value and purchase of real property iNerests of certain real property owned by Vodie Fulton, et al., being six tracts of land totaling approximately 19 acres in J. Brock Survey, Abstract 55, the J. Lilly Survey, Abstract 762, the W. Crenshaw Survey, Abstract 318, and in the B.B.B & C.R.R. Survey, Abstract 185, situated along the 1100 block of North Ruddell Street, south of the Union Pacific Railroad corridor; and receipt of legal advice from the City Attorney on a matter in which his professional responsibility to the City Council requires private legal consultation. Council Member Fulton returned to the meeting. Deliberations Regarding Certain Public Power Utilities Competitive Matters - Under TEXAS GOVERNMENT CODE Section 551.086.** Consultation with Attorney - Under TEXAS GOVERNMENT CODE Section 551.071. Received competitive electric public power and market information regarding the issue of conseN, by the City Council of the City of DeNon, Texas, to approval of the sale and transfer by the PG&E-related entities to the City of Garland, Texas respecting the Spencer Station Generation Plan and the Lake Lewisville Hydroelectric Facility, both located in DeNon County, Texas. Discussed, deliberated, considered, provided Staff City of DeNon City Council Minutes January 21, 2003 Page 3 with direction, and took final action regarding the proposed sale and transfer regarding the above matters. Further, discussed and considered the legal ramifications and legal position of the City by conducting a consultation with the City's attorneys in order to obtain the advice and recommendations of the City's attorneys concerning this issue; where to discuss such issue and matter in a public meeting would conflict with the attorneys' duties and professional responsibilities to their cliem, the DeNon City Council, under the Texas Disciplinary Rules of Professional Conduct. Regular Meeting of the City of Demon City Council on Tuesday, January 21, 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 the following proclamations and received the following awards: DeNon Family Unity Week University of North Texas Mean Green Day Denton High School Congratulations GFOA Certificate of Finance Excellence Award B. January Yard-of-the-Month Awards Mayor Brock presented the January Yard of the Month Awards to: Jim and Linda Wicker John and Denise Miller Vena Madison Ronald Aparo and Patricia Foster Tom and Peggy La Pointe LaVerne Watson Todd and Kate Marshall - Xeriscaped Yard C. City Manager Conduffpresemed a recognition of staff accomplishmems 3. CITIZEN REPORTS A. The Council received citizen reports from the following: City of DeNon City Council Minutes January 21, 2003 Page 4 Tillman Uland: salary for the Mayor and City Council, retired city employees and the budget, and neighborhood City Council meetings. Mr. Uland stated the Mayor and Council did not receive any compensation for their time spem on Council. He suggested that the emire Council receive paymem for their services. He requested that Council remember former city employees during budget considerations in order to assist them with expenses. He suggested the Council hold neighborhood meetings to receive direct inpm from citizens. 2. Dalton Allen: City's Solid Waste ordinance. Mr. Allen stated there were some issues that looked good on paper that might not work well in reality. One instance was the responsibility of the property owner for trash dumped illegally in and around dumpsters. He felt the City should be responsible for some of these situations. He suggested the formation of a committee made up of citizens and staff members to address this issue. 3. Willie Hudspeth: concerns about Southeast Denton. Mr. Hudspeth was not present at the meeting. 4. Larry Jambor: garbage cans in Wind River Estates. Mr. Jambor stated the residents of Wind River Estates were required to use automated garbage pick-up. He questioned the method of determination as to who received that type of service. Peternia Washington: issues at the MLK Center and City of Denton hiring practices. Ms. Washington was not present at the meeting. 6. Walter Jackson: reconsideration of the hiring decision for the MLK Center director. Mr. Jackson stated the Council should give more attemion to the hiring of minorities in the City. Minorities should not have to go outside Denton in order to be hired. Lilly Moturi: reconsideration of the hiring decision for the MLK Cemer director. Ms. Moturi was not present at the meeting. 8. Marcella Brown: job affairs in DeNon. Ms. Brown stated she was concerned aborn the percemage of minorities hired in the City of Denton. 4. CONSENT AGENDA Mayor Brock indicated that Item 4C and 4D would be pulled for separate consideration. City of DeNon City Council Minutes January 21, 2003 Page 5 McNeill motioned, Burroughs seconded to approve the Consem Agenda and accompanying ordinances and resolmions with the exception of 4C and 4D. On roll vote, Burroughs "aye", Fulton "aye", McNeill "aye", Montgomery "aye", Phillips "aye", Redmon "aye", and Mayor Brock "aye". Motion carried unanimously. Council Member Fulton left the meeting with a conflict of interest. Burroughs motioned, Redmon seconded to approve 4C and 4D. On roll vote, Burroughs "aye", McNeill "aye", Momgomery "aye", Phillips "aye", Redmon "aye", and Mayor Brock "aye". Motion carried unanimously. 2003-011 - An ordinance accepting competitive bids and awarding an annual comract for the purchase of polymer concrete pull boxes and providing an effective date (Bid 2929 - Polymer Concrete Pull Boxes awarded to Hughes Supply in the estimated amoum of $37,950). 2003-012 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of decorative streetlight fixtures and providing an effective date (Bid 2933 - Decorative Streetlight Fixtures awarded to Genlyte Dallas/Hadco in the estimated amoum of $212,250). 2003-013 - An ordinance to declare the imem to reimburse expenditures from the Unreserved Retained Earnings of the Materials Management Fund with Certificates of Obligation for the purchase of land; declaring an emergency and amending the 2002-2003 Capital Improvemem Budget; and providing an effective date. (Project: $585,000 land purchase and misc. related costs not to exceed $25,000). 2003-014 - An ordinance of the City of DeNon, Texas approving a real estate contract between the City of Denton and Vodie Fulton, Edwin Owen Fulton and Joe L. Fulton for the purchase of six tracts of land totaling approximately 19.06 acres and generally located adjacem to and east of the City of DeNon Service Cemer in the J. Brock Survey, the J. Lilly Survey, the W. Crenshaw Survey, and the B.B.B. & C.R.R. Survey, City of Denton, Denton County, Texas; authorizing the expenditure of funds therefore; and providing an effective date. 2003-015 An ordinance providing for the expenditure of funds for the emergency purchase of fuel for the Fleet Services Departmem in accordance with provisions of state law exempting such purchases from requirements of competitive bidding; and providing an effective date (Purchase Order 109185 to Kelsoe Oil Co. in the amoum of $53,637). 2003-016 - An ordinance accepting competitive bids by way of an Imerlocal Agreement with Denton County and awarding a contract for the purchase of office furniture; providing for the expenditure of funds therefore; and providing an effective date (File 2948 - Furniture for the New Cemral Fire Station and for the New Solid Waste Operations/Administration Building awarded to Texas Furniture Source, Inc. in the amoum of $192,227.79). City of Demon City Council Minutes January 21, 2003 Page 6 Go 2003-017 - An ordinance authorizing the City Manager to accept an Imerlocal Agreement with U.S. Communities to authorize participation in various U.S. Communities comracts for the purchase of various goods and services; and declaring an effective date (File 2930 - Interlocal Agreemem with U.S. Communities). Ho 2003-018 - An ordinance of the City Council of the City of Demon, Texas authorizing the City Manager to execute a Professional Services Agreemem with R. J. Covington Consulting, LLC for consulting services relating to the Denton Municipal Electric Utility; authorizing the expenditure of funds therefor; and providing an effective date. 2003-019 - An ordinance partially abandoning an easemem assigned to the City of Demon as recorded in Volume 538, Page 666, Deed Records, Demon County, Texas, from an easement previously granted to Texas Power & Light Company by Deed as Recorded in Volume 231, Page 179, Deed Records, Demon County, Texas; and providing an effective date. Jo 2003-020 - An ordinance approving an amended budget for hotel tax fund expenditures by Demon County, Texas, for the operation of the Courthouse on the Square Museum during calendar year 2002 (CY2002), to be effective as of the date of passage and approval of this ordinance. Ko 2003-021 - An ordinance of the City of Demon approving a License Agreemem between the Texas Municipal Power Agency ("TMPA"), and the City of Demon relating to the encroachmem of a sanitary sewer line and a double box culvert across an existing TMPA Easement as part of the Southern Hills Medical Plaza improvemems 8-Inch Sanitary Sewer line and 7' by 4' double box culvert, located within the tract of land situated in the Joseph White Survey Abstract Number 1433, City of Demon, Demon County, Texas and being a portion of a called 243.185 acre tract of land described in the deed being recorded in Volume 3245 page 699 of the Deed Records of Denton County, Texas. Lo 2003-022 - An ordinance authorizing the City Manager to execute an agreemem of resignation with Doug Powell; and providing for an effective date. Mo R2003-003 - A resolution leasing parking spaces located on the Williams Trade Square; and providing an effective date. No 2003-023 - An ordinance of the City of Demon, Texas authorizing the City Manager to execute a comract for professional legal services between the City of Demon and Orgain, Bell & Tucker, LLP for legal services in litigation styled Robinson v. City of Denton, et al., currently pending in the 58th District Court of Jefferson County, Texas; authorizing the expenditure of funds therefore; and providing an effective date. Oo Approved an exception to the Noise Ordinance for the purpose of construction on the Demon Crossing Project by Rogers-O'Brien Construction beginning City of DeNon City Council Minutes January 21, 2003 Page 7 immediately through May 2003 during the hours of 6:00 a.m. through 8:30 p.m. Monday through Friday, and 7:00 a.m. through 8:30 p.m. on Saturday. Specifically the request is for an exception to the hours of operation beginning an hour early, at 6:00 a.m., on Monday through Friday and an exception to the hours beginning one hour early, at 7:00 a.m., on Saturday effective immediately through May of 2003. No request for an exception to the hours of operation has been made for Sunday. P. Approved the appoimmem of a Deputy City Secretary. 2003-024 - An ordinance of the City of DeNon, Texas approving an amendmem to an economic development program grant agreement dated November 27, 2001 between the City of DeNon and DeNon Crossing Partners LTD., which was duly assigned to ORIX Hunt Denton Venture; and providing an effective date. Council Member Fulton returned to the meeting. 5. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance rezoning three parcels totaling approximately 0.8 acres, from a Multiple Family Dwelling District 1 (MF-1) zoning district to a Neighborhood Residemial 3 (NR-3) zoning district. The property commonly known as 1822, 1828 and 1902 West Oak Street was generally located on the north side of West Oak Street approximately 310 feet east of Bradley. The property was being rezoned to bring it in conformance with the Denton Developmem Code. The Planning and Zoning Commission recommended approval (7-0). (Z02-0053, 1822, 1828 & 1902 West Oak Stree0 Larry Reichhart, Assistant Director of Development Services, stated that the property owner was in opposition to the proposal resulting in the need for a supermajority vote by Council. The request was to rezone the property from Multiple Family Dwelling District 1 to Neighborhood Residemial 3. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Dixie Stevenson, 1920 West Oak, Denton, 76201- favor David Holdeman, 1820 West Oak, DeNon, 76201 - favor Sara Harvey, 312 Marietta, Denton, 76201 - favor Steven Friedson, 2205 West Oak, Denton, 76201 - favor Ned Webster, represeming the West Oak Neighborhood Association - favor Joe Potthoff, 1201 W. Abram, Arlington, 76013 - favor Patrick Lenaburg, 302 Marietta, Denton, 76201 - favor Tom Collins, 2322 Houston Place, Denton, 76201 - favor Dorothy Damico, 1801 Panhandle, DeNon, 76201 - favor David Bynum, 215 Marietta, Denton, 76201 - opposed City of Demon City Council Minutes January 21, 2003 Page 8 The following individuals submitted Speaker Cards regarding the proposal: Bernadette and Steven Johansson, 1926 N. Bell, Denton, 76209 - favor Margarete Neale, 1721 W. Oak, Denton, 76201 - favor Carol and Ed Soph, 1620 Victoria, Demon, 76209 - favor Thomas and Peggy LaPom, 1900 Highland Park Circle, Demon, 76205 - favor Ellen Ralph, 1717 West Oak, Demon, 76201 - favor Pete and Elizabeth Gunter, 225 Jagoe, Denton, 76201 - favor Dora and Crawford Sloan, 2207 Houston Place, Demon, 76201 - favor Jennifer Collins, 312 Marietta, Demon, 76201 - favor Edra Bogle, 201 Peach, Demon, 76209 - favor Mike Cochran, 610 W. Oak, Demon, 76201 - favor Darlene Stewart, 2003 W. Oak, Denton, 76201 - favor Marsha Stevenson, 1920 West Oak, Denton, 76201 - favor JoAnn Nunnelly, 2215 Houston Place, Denton, 76201 - favor Patrice Lyke, 1109 Egan, Demon, 76201 - favor Caroline Polliard, 1800 West Oak, Demon, 76201 - favor Margaret Schulze, 2119 Scripture, Denton, 7620 - favor Jacqueline Gibbons, 2015 Houston Place, Demon, 76201 - favor Anita Brigman, 2232 Houston Place, Denton, 76201 - favor Kevin Kennelly, 2105 Houston Place, Denton, 76201 - favor Rocky Naragm, 1100 Thomas, Demon, 76201 - favor Steven Ambuchl, 2003 N. Bell, Demon, 76209 - favor Eugene Hargrove, 2025 Houston Place, Denton, 76201 - favor Helen Ikerd, 1722 W. Oak, Demon, 76201 - favor Joyce Palmer, 1905 West Oak, Denton, 76201 - favor John Enlow, 1801 West Oak, Demon, 76201 - favor Peggy Capps, 915 West Oak, Denton, 76201 - favor The Mayor closed the public hearing. The following ordinance was considered: NO. 2003-025 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM MULTIPLE FAMILY DWELLING DISTRICT 1 (MF-1) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL 3 (NR-3) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY 0.79 ACRE OF LAND COMMONLY KNOWN AS 1822, 1828, AND 1902 WEST OAK STREET GENERALLY LOCATED ON THE NORTH SIDE OF WEST OAK STREET, APPROXIMATELY 195 FEET WEST OF THE INTERSECTION OF MARIETTA AND WEST OAK STREET LOCATED IN THE E. PUBCHALSKI SURVEY, ABSTRACT 996; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z02-0053) City of DeNon City Council Minutes January 21, 2003 Page 9 Burroughs motioned, Mayor seconded to adopt the ordinance to rezone the property. On roll vote, Burroughs "aye", Fulton "aye", McNeill "aye", Momgomery "aye", Phillips "aye", Redmon "aye", and Mayor Brock "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 18.5 acres of land from a Neighborhood Residemial 2 (NR-2) zoning district to a Neighborhood Residemial Mixed Use 12 (NRMU 12) zoning district. The property was generally, located east of Audra, south of Paisley and was commonly referred to as 700 and 702 Audra Lane. Multi-family use was proposed. The Planning and Zoning Commission recommended denial (7-0). (Z02-0047, Saddle Creek Apartments) Mayor Brock indicated that the petitioner had withdrawn the proposal from consideration. C. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 0.4 acres from a Dowmown Residemial 2 (DR-2) to a Dowmown Commercial Neighborhood (DC-N) zoning district. The site was generally located at 309 Fry Street north of Oak Street. Mixed-use multi-family and a restaurant were proposed. The Planning and Zoning Commission recommended approval (4-3). (Z02-0058, 309 Fry StreeO Larry Reichhart, Assistant Director for Planning and Development, stated that the petitioner had requested a cominuance to allow more discussion with the neighbors on what was being proposed. The Mayor opened the public hearing. No one spoke during the public hearing. Burroughs motioned, Fulton seconded to grant the continuance and continue the public hearing at the February 4th Council meeting. On roll vote, Burroughs "aye", Fulton "aye", McNeill "aye", Momgomery "aye", Phillips "aye", Redmon "aye", and Mayor Brock "aye". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. New Business The following items of New Business were suggested by Council Members for future agendas: 1. Council Member Fulton asked aborn the feasibility of setting up a committee of citizens and staff to review mility services. 2. Council Member Redmon requested a revisit of the City's minority hiring practices. 3. Council Member Phillips requested an update on the "City of Champions" proposal. B. Items from the City Manager City of Demon City Council Minutes January 21, 2003 Page 10 City Manager Conduff did not have any items for Council. C. There was no cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. D. 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 8:07 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS 02~04~03 #4B AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Finance Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider approval of an ordinance of the City of DeNon authorizing a Professional Service Agreement in the amount of $80,000 between the City of Denton, Texas and Greater Denton Arts Council for the selection, purchase and placemem of public art within the City of DeNon; providing for the expenditure of funds therefore; and providing for an effective date. BACKGROUND This Agreement allows for the City of DeNon to comract with the Greater DeNon Arts Council (GDAC) to handle selection, purchase and placemem of public art on public property under the purview of the CIP Oversight Committee. Key terms of the Agreement include: · City shall have title to all art purchased with the funds · Agreemem time frame is February 5, 2003 through January 30, 2004. · Funds will be used to pay for only the actual cost of the selection, purchase placement of the art; GDAC will not charge for its services in selecting, purchasing and placing the art. · In addition to general reporting requirements, GDAC will provide appropriate documemation for any purchase or expense and City will pay either GDAC or artist as necessary · Indemnification and other standard conditions PRIOR ACTION/REVIEW (Council, Boards, Commission) At it's March 5, 2002 meeting the CIP Oversight Committee voted that approval be given to the allocation of $80,000 for the purchase of public art. Additionally the Committee approved that an agreemem be drafted and forwarded to City Council for their approval to contract with The Greater Denton Arts Council to oversee the selection, purchase and placement of the art. The vote was unanimous. Agenda Information Sheet February 4, 2003 Page 2 FISCAL INFORMATION Funding for this Agreement will be from $80,000 approved in the 2000 CIP Bond Election for Beautification projects. EXHIBITS Minutes of March 2, 2002 CIP Oversight Committee meeting. Respectfully submitted: Kathy DuBose, Assistant City Manager Fiscal and Municipal Services 2001 OVERSIGHT COMMITTEE Minutes March 5, 2002, 10:00 a.m. City Council Work Session Room City Hall 215 E. McKinney (Not Yet Approved by the Committee) Citizen members present included Mayor Euline Brock, Tim Charles, Greg Sawko and Dorothy Damico. Staff members present were Kathy DuBose, David Hill, Jon Fortune, Ed Hodney, Charles Fielder, David Salmon, Bruce Henington, Daniel Harper, Jerry Clark, Eva Pool and Anna Mosqueda. Mayor Brock called the meeting to order. A. MINUTES 1. December 10, 2001 - Minutes were approved as written. B. PROJECT UPDATES Public Art - Tim Charles updated the committee on the Public Art Committee. Talked about their goals and vision. Talked about the three projects that they were working with at this time, the new fire station, the aquatic center and the library. The mayor also offered a suggestion of the water treatment plant. Tim said the committee would be doing some site visits to see what other cities are doing. Staff talked about other things they had seen in other cities. Tim Charles made motion that approval be given to the allocation of $80, O00 for the purchase of public art. Additionally, approval be given to the drafting of a contract with The Greater Denton Arts Council to oversee the selection, purchase and placement of the art. Greg Sawko seconded the motion. Fore was unanimous for the motion. C. ACTION ITEMS 1. Miscellaneous Traffic Signals - Intelligent Transportation Systems (ITS) Study ($50,000) Dave Hill talked about the special call meeting on April p,,t. Explained that the City is getting set up for the April bond sale for nearly 2.5 million dollars worth of transportation related funding. In order to give complete information would be rushing for meeting today so needing a special call meeting. Also have some Parks and Recreation items on the meeting. Jerry Clark explained Intelligent Transportation Systems. It would be a system that would give information to drivers as to traffic conditions ahead. It has other features such as weather tracking, etc. The $50,000 would do a feasibility study and then set up an ITS architecture. City needs to meet standards to get some of the funds from NTCOG. Explained the value of the technology. Tim Charles made motion to recommend approval of the use of $50, 000 of miscellaneous traffic signal money for ITS. Dorothy Damico seconded the motion. Vote was unanimous for the motion. D. OTHER BUSINESS There is a special called meeting scheduled for Monday, April 1, 2002 in the Council Work Session Room in City Hall. ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING A PROFESSIONAL SERVICE AGREEMENT IN THE AMOUNT OF $80,000.00 BETWEEN THE CITY OF DENTON, TEXAS AND GREATER DENTON ARTS COUNCIL FOR THE SELECTION, PURCHASE AND PLACEMENT OF PUBLIC ART WITHIN THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Greater Denton Arts Council (the "Organization") offers a specialized professional skill that the City of Denton requires for the selection, purchase and placement of public art upon public property in the City of Denton (the "Program"); and WHEREAS, the City Council of the City of Denton hereby finds that the Program and the agreement between the Organization attached hereto and made a part hereof by reference (the "Agreement") serve a municipal and public purpose and the Agreement is in the public interest; and WHEREAS, the purchase of art is exempt from competitive bidding under Subsection 252.022(a)(7) of the Local Government Code; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Agreement, including the expenditure of funds as provided in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ., 2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: EULINE BROCK, MAYOR PROFESSIONAL SERVICE AGREEMENT GREATER DENTON ARTS COUNCIL 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, City has determined that GDAC performs an important public service for the residents of Denton without regard to race, religion, color, age or national origin; and WHEREAS, City has determined that GDAC provides a specialized professional skill that the City requires for the selection, purchase and placement of public art upon public property in the City of Denton; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. SCOPE OF SERVICES GDAC shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The selection, purchase and placement of art to be located on public property. Notwithstanding the foregoing, the City will provide GDAC with a list of public sites to be considered for art placement. Prior to commissioning or purchasing a piece, GDAC will obtain confirmation from the City Manager, or his designee. The City shall have title to all art. 2. OBLIGATIONS OF GDAC In consideration of the receipt of funds from City, GDAC agrees to the following terms and conditions: A. The funds provided for in this Agreement shall only be expended for the purposes set forth in Article 1 above and for no other purpose. B. GDAC shall not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement, C. The Organization shall appoint a representative who will be available to meet with City officials when requested. 3. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within the following time frame: P~el February 5, 2003 through January 30, 2004, unless the Agreement is sooner terminated under Article 6 "Termination". 4. PAYMENTS A. PAYMENTS TO GDAC. City shall make available to GDAC the sum not to exceed $80,000.00 which shall be set aside for the purposes of this Agreement. The monies (the "Funds") may only be used to pay for the actual cost of the selection, purchase and placement of the art provided for in this Agreement. The Funds shall not be used for and GDAC shall not charge for its services in selecting, purchasing and placing the art. Such services are being donated by GDAC. Upon written approval of the City, reasonable out of pocket expenses in performing the services under this Agreement may be reimbursed from the Funds. Such out of pocket expenses must be direct expenses and shall not include overhead expenses of GDAC. GDAC shall provide proper documentation and invoice for any purchase or expense and the City will then pay monies (the "Fund") to the Organization or vendor as necessary. B. ExcEss PAYMENT. GDAC shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to Organization; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. C. AGREEMENT CLOSE OUT. Organization shall submit the Agreement close out package to City, together with a final expenditure report, for the time period covered by the last invoice representing final expenditure of funds under this Agreement, within fifteen (15) working days following the close of the Agreement period. Organization shall utilize the form agreed upon by City and Organization. 5. RECORDKEEP1NG AND REPORTING REQUIREMENTS A. Separate Accounts. GDAC shall maintain any funds paid to GDAC by CITY in a bank account with segregated accounting, such that any reasonable person can review the source of expenditures of the funds. B. Financial Records. GDAC shall maintain complete and accurate financial records of each expenditure of the the funds made by GDAC. These funds are required to be classified as restricted funds for audited financial purposes, and may not be used for Page 2 supporting services, including, but not limited to, auditing fees and attorney's fees. Upon reasonably advance written request of the City Manager or designate, GDAC shall make such financial records available for inspection and review by the party making the request. C. 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 where the subject matter of this Agreement is discussed. This provision shall not be deemed to require GDAC to give notice of any executive session of the Executive Committee of GDAC. 6. TERMINATION A. 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 this Section 6.A., CITY agrees to reimburse GDAC for any contractual obligations of GDAC undertaken by GDAC in satisfactory performance of authorized activities. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated under this Agreement, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. B. 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; (b) The insolvency of GDAC, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by GDAC for the benefit of creditors; (c) The continuation of a breach 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 C. Right to Immediate Term/nation 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. D. In the event that this Agreement is terminated, 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. Page 3 7. GENERAL PROVISIONS A. 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 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 venturer with CITY, nor shall GDAC be considered nor in any manner hold itself out as an agent or official representative of CITY. B. 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 PURCHASE OR ACQUISITION OF THE ART CONTEMPLATED BY THIS AGREEMENT EXCEPT FOR LIABILITY ARISING AFTER A PARTICULAR ARTWORK IS DELIVERED TO AND ACCEPTED BY THE CITY. C. Assignment. GDAC shall not assign this Agreement without first obtaining the written consent of CITY. D. 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 E. 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 CITY and GDAC and their respective successors and assigns. F. 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. G. Exclusive Agreemont. 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 Page 4 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. H. Duplicate Originals. This Agreement is executed in duplicate originals. I. 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. J. 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. K. Insurance. GDAC shall, at a minimum, provide insurance as follows: $500,000 Commercial 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 hired vehicles 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 CITY. Effective as of the 5th day of February, 2003. THE CITY OF DENTON, TEXAS ATTEST: By: JENNIFER WALTERS, CITY SECRETARY By: EULINEBROCK, MAYOR B~yylRO~AL FORM: HERBERT L. PROUTY, CITY ATTORNEY Page 5 GREATER DENTON ARTS COUNCIL ATTEST: By: ~ne~erry, President APPROVED AS TO LEGAL FORM: Dean Anthony, Secretary S:~Our Doeuments~2o n ~act~ 2~DAC-Publi~ A~do~ By: Page 6 02~04~03 #4C AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider approval of a resolution of the City of Demon, Texas, approving revised City policies regulating the handling of cash by City employees; and declaring an effective date. BACKGROUND Following a review of the Cash Handling Regulations Policy 403.01, the need to set out a policy statement and administrative procedures became apparent. Consequently, the Purpose and Scope was named as the Policy Statement followed by the Administrative Procedures. Additional clarification was required to prevent an overlap in procedures as set up in Administrative Directive 509.01 "Fraud Directive" (attached). Therefore, the proposed resolution allows the clarification of "policy" and "administrative procedure" as well as the revision of language of section XIV of the "Cash Handling Regulations" policy 403.01 to reference the pertinent steps in the "Fraud Directive" as follows: XIV. Action Taken in Event of Theft The danger of security and loss is a constant threat when handling money. Fund custodians are expected to safeguard City funds against loss. Custodians should be familiar with what to do in times of emergency. In these circumstances, protecting human life should be the first concern. Thefts are to be reported and handled in compliance with the "Fraud Directive", reference number 509. O1 in the City of Denton Policies and Procedures Manual. Following the complete investigation performed in accordance with the "Fraud Directive ", the Director of Fiscal Operations will conduct a review of the cash handling procedures and related internal controls and issue a report of his/her conclusions on improvements to cash handling procedures. The report will be discussed~/br implementation with the related department director in an ef/brt to prevent future thefts from occurring. FISCAL INFORMATION There is no fiscal impact from this resolution. EXHIBITS Fraud Directive Cash Handling Regulations (unrevised) Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations CITY OF DENTON POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 1 of 7 REFERENCE NUMBER: SECTION: GENERAL POLICIES/PROCEDURES/DIRECTIVES 509.01 INITIAL EFFECTIVE DATE: SUBJECT: FRAUD 05/17/2002 LAST REVISION DATE: TITLE: FRAUD DIRECTIVE 09/16/2002 ADMINISTRATIVE DIRECTIVE: It is the intention of the City of Denton to establish procedures for preventing fraud and for responding to allegations of fraud in connection with City programs, functions or activities. This directive applies to all City employees. The City of Demon is committed to upholding the public trust. All employees shall support this directive by avoiding fraud as defined herein. Employees are expected to support efforts aimed at preveming fraud. In addition, employees are expected to report possible fraudulem activity or any internal/external practices that would allow for or facilitate fraudulent activity. Supervisors and managers have a greater responsibility to uphold the City's directive. They are expected to initiate appropriate preventive measures, implement necessary controls and initiate investigations by promptly reporting allegations to a member of the investigation committee. In addition, they are responsible for determining and enforcing disciplinary action with the aid of the Human Resources Department. The investigation committee is responsible for responding to fraud allegations through coordination of necessary resources in determining future actions regarding the investigation. If the committee suspects the conduct to be criminal in nature, the committee will recommend that the Police Department take charge of the investigation. Committee findings and recommendations shall then be communicated to the City Manager's Office (CMO) for further action. The Human Resources Department is responsible for advising City personnel in the determination and enforcement of disciplinary action. Further, it is responsible for tracking cases that come before the investigation committee and the case results. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 2 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 The CMO will have overall responsibility for holding departments accountable for compliance with this directive. As a public official, the City Manager has a duty to disclose all evidence of fraud. For this reason, the CMO, in consultation with committee, will refer information to the appropriate law enforcement authorities on items that may result in criminal prosecution, if determined necessary. Where it does not impede or interfere with a criminal investigation or prosecution, the City Manager may provide information to the City Council concerning a particular fraud investigation. ADMINISTRATIVE PROCEDURES A. Scope This directive establishes three key expectations for the City of Denton: Procedures for preventing fraudulent activity and reporting suspected fraud. 2. Procedures to respond to allegations of fraud. An investigation committee comprised of a member of the Legal Department, Human Resources Department and Internal Audit responsible for responding to allegations of fraud. The committee's responsibilities will be to: · Respond to fraud allegations through coordination of necessary resources in determining future actions regarding the investigation. · Communicate all committee findings and recommendations to the City Manager's Office (CMO). · When directed by the City Manager, refer all allegations suspected to be criminal in nature, to the Police Department for investigation. · Monitor and coordinate all administrative investigations. · Document all allegations and their disposition. Definitions Fraud is defined as the intentional misappropriation of City assets by any act including, but not limited to, theft, embezzlement and intentional misrepresentation. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 3 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 Acts constituting fraud include but are not limited to: · Forgery or alteration of any document or account belonging to the City. · Forgery or alteration of a check, bank draft or any other financial document representing funds belonging to the City. · Misappropriation of funds, securities, supplies or other assets of the City. · impropriety in the handling or reporting of money or financial transactions involving the City and any other entity. · Profiteering as a result of insider knowledge of City activities. · Accepting or seeking anything of material value from contractors, vendors or persons providing services/materials to the City. · Destruction, removal or inappropriate use of records, furniture, fixtures and equipment belonging to the City. · Embezzlement, larceny or any other misapplication of City funds. · Any official misconduct including the misapplication or misuse of City funds or property. The investigation committee will be comprised of a member of the Legal Department, Human Resources Department and Internal Audit. The committee will serve as a contact for City personnel when suspicions of fraud arise. Further, the committee will respond to any fraud allegations made by citizens or City personnel. Procedures Employees who suspect fraud shall immediately report their suspicions to their supervisor for appropriate action, immediately shall mean as soon as the employee has the means to contact their supervisor, but shall be no longer than twenty-four hours after the employee becomes aware of the suspected fraud. As an alternative, City employees can go outside the normal chain of command and report it directly to their department director, an Assistant City Manager, the City Manager or a member of the investigation committee. Employees who provide information in good faith will be protected pursuant to City of Denton Administrative Directive No. 108.06 (Retaliation Act) as described later in this directive. City employees who are contacted by citizens with evidence or written allegations of fraud shall immediately report it to their department director, a member of the investigation committee, an Assistant City Manager or the City Manager. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 4 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 Departmem directors or supervisors will promptly report allegations or suspicions of fraud to a member of the investigation committee immediately following notification of the allegations or suspicions. This will be done prior to taking personnel action toward the employee(s) involved or immediately after putting the employee(s) on administrative leave as defined herein. Departmem supervisors will be responsible for maimaining consistency in their response to allegations of fraud and actions taken should be to protect the City and City assets. The investigation committee will determine and coordinate with the individuals necessary to conduct differem areas of the investigation. When managemem is not sure whether a crime has been committed, would like to assess the extem of wrongdoing or is not sure if additional risk is imminem, the investigation committee will perform a review to determine if there is reasonable cause to believe fraud has occurred that requires further investigation. The investigation committee, in consultation with the City Manager, will determine if the case should be pursued as an administrative or criminal investigation. If the committee suspects the conduct to be criminal in nature, the committee will recommend that the Police Department take charge of the investigation with the investigation committee providing assistance, if necessary, and serving as a resource to the police. The Police Department will then determine the appropriate actions as the investigation progresses including, without limitation, referral of the matter to the District Attorney's Office for criminal prosecution. The investigation committee may notify the departmem director of any allegations submitted to them that require an on-site investigation, when appropriate. When the investigation requires the inspection of City facilities and/or equipmem, the committee will comply with Policy 108.13 "Investigation and Inspection of City Facilities/Equipmem" of the City of DeNon Policies and Procedures Manual. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 5 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 The Human Resources Department will track cases and their disposition. However, if the case is a criminal investigation, no information made confidemial by law or by discretion of the investigating officer will be maintained in the Human Resources Department to avoid impeding the criminal investigation. All criminal case information and documemation will be maimained with the Police Departmem files while all administrative investigation case files will be maintained by the Human Resources Department. When the suspected fraud involves the theft of City funds, employees should also abide by the procedures addressed in Policy 403.01 "Cash Handling Regulations," section IVX "Action Taken in Event of Theft" of the City of DeNon Policies and Procedures Manual. Personnel Issues Administrative Leave - An employee under investigation may be placed on administrative leave with or without pay for the duration of the proceedings upon the recommendation by the Human Resources Department and the department director, Assistant City Manager or City Manager. Upon completion of the investigation, appropriate and timely action will be taken. If the employee is returned to duty, he/she will receive recovery of back pay, if applicable and to the extem deemed appropriate by the Human Resources Department or as may be required by law. Rehire - Employees terminated for violating a provision of this directive shall not be eligible for future employmem with the City in any capacity - e.g., a regular, temporary or contract/consulting position unless the termination is overturned by a judicial or administrative procedure. False Information and/or Accusations - Employees who imemionally or knowingly make false accusations and/or provide false information concerning instances of fraud will be subject to disciplinary action up to and including termination. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 6 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 4. Other if an employee's personnel file contains documentation of disciplinary action based upon sustained allegations of fraud, within ten days of the placement of such documentation in the personnel file, the employee may submit a written response to the Director of Human Resources regarding the disciplinary action. This response will be placed in his/her personnel file. All employees are required to cooperate fully during any City review or investigation of an allegation of fraud. Anyone informed of an investigation in progress shall ensure that strict confidentiality is observed so as to not prejudice the investigation or the City's rights and iNegrity. Anyone found violating this requiremeN will be subject to disciplinary action. During an investigation, any employee contacted by the media should refer all questions to the Public information Office. Employees should be aware that: 3. 4. 5. They are to maintain the confidentiality of the information they receive (except in the even of a public information request, court order or otherwise authorized by law). They will not be subject to retaliation for cooperating. The Human Resources Department is available to provide advice related to the City's personnel policies. If they have questions concerning legal consequences, they should consult with an attorney. Failure to comply with this section could result in disciplinary action pursuaN to City of DeNon Policy No. 109.01. Protection from Retaliation Pursuant to the City of Denton's Administrative Directive 108.06 ("Retaliation Act"), an employee may not be retaliated against for reporting an alleged violation of a law to an appropriate law enforcement authority if the employee's report is made in good faith as set forth in the Texas Retaliation Act. POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Page 7 of 7 TITLE: FRAUD DIRECTIVE REFERENCE NUMBER: 509.01 Employees who believe they have been the subject of retaliation for reporting illegal activity by other City employee(s) or officials should address their complaint with their immediate supervisor. If this is not a suitable avenue, the complaint may be addressed directly to their department head or the Director of the Human Resources Department. Compliance All City employees are required to comply with this directive. In addition to all the individual requirements for compliance stated within, failure to comply with this Fraud Prevention Directive may result in disciplinary action pursuant to City of Demon Policy No. 109.01 ("Disciplinary Action") as determined necessary by the City Manager and the appropriate department director. CITY OF DENTON POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: FINANCE SUBJECT: TITLE: CASH MANAGEMENT CASH HANDLING REGULATIONS PAGE 1 OF 10 REFERENCE NUMBER: 403.01 INITIAL EFFECTIVE DATE: 06/01/99 LAST REVISION DATE: 01/2000 Purpose and Scope The Cash Management Program was established for the purpose of ensuring adequate internal controls to account for the handling of City Cash and to maintain public ~rust. The term "City Cash" applies to currency, coin, checks, credit, charge and debit card payments, other electronic payment media, and other negotiable instruments payable in money to the City. The procedures to enforce the cash management program arc to include but are not limited to those outlined below: A. A random drawer audit conducted under the direction of the Director of Fiscal Operations. B. Any deficiencies in regard to the set procedures will be reported to the Director of Fiscal Operations and the Assistant City Manager of Fiscal & Municipal Services in the form of a memorandum outlining the deficiencies. The Director of Fiscal Operations will notify the Department Director involved and explain these deficiencies, and the Department Director will be responsible for taking appropriate action to correct deficiencies. If in a subsequent audit these deficiencies still exist, the Director of Fiscal operations will advise the Assistant City Manager &Fiscal & Municipal Services that the deficiencies still exist. The Director of Fiscal Operations and the Assistant City Manager of Fiscal & Municipal Services will notify the Department Director involved and the City Manager of the existing situation. The City Manager will review the existing situation and may take appropriate action to resolve deficiencies and ensure that the procedures as outlined are administered properly. H. Delegation of Authority The Director of Fiscal operations is authorized to promulgate rules for establishing procedures for the receipt, handling and deposit by City officers and employees of City Cash into the City Treasury for: the method of documentation on all such transactions; regular reporting to the Director of Fiscal Operations; certifying and rescinding certification by the Director of Fiscat Operations of all City officers and employees who are authorized to receive or handle City moneys in the regular course of their employment or depat:hiiental activities; inspection of departmental cash records, including overages or shortages; inspection of departmental practices and procedures in handling City Cash; and contracting with agents to collect City Cash and their collection procedures. The Director of Fiscal operations may enforce these rules through on-site inspections; by rescinding certification of any officer or employee who fails to comply with the Director of Fiscal Operations' procedures and, in the event of noncompliance by a department or office, requiring that payments to personnel be authorized by the Director of Fiscal Operation, or deposited at his/her office. The Director of Fiscal Operations, as the City's banker, is required by law to receive, retain, and disburse all City revenue and keep detailed records of these transactions. The Director of Fiscal Operations is charged with the responsibility of overseeing the proper receipting and to safeguard all City funds. The Treasury wilt be conducting periodic cash drawer audits (unannounced) under the direction of the Director of Fiscal Operations. C. The Director of Fiscal Operations delegates the administration of the Cash Management Program to the Cash & Debt Administrator. D.Through certification, the responsibility and accountability of the daily collection of funds is delegated to the custodians and his/her supervisor. IlL Duties of City Departments The Director of any City department who anticipates receiving City Cash on a regular basis in the course of its activities shall: A. Assign the receiving of City Cash only to those persons who are certified by the Director of Fiscal Operations for performing these functions; 'B. Collaborate with the Director of Fiscal Operations to establish and maintain a system of procedures, documentation and reporting on receipts handling and deposit of City money; C. Notify the Police Department of any loss or theft of City Cash immediately upon discovery. Written notice shall be given no later than twenty-four hours after discovery. D. Allow the Director of Fiscal Operations or his/her designee to make on-site inspections and observe the processing of City Cash, and to make inspections of departmental collection records. IV. Duties of City Personnel Any City officer or employee, who receives City Cash in the normal scope and course of his/her duties, shall: Immediately deposit the Cash with a City depository designated by the Director of Fiscal Operations to the credit of the City. The delivery or deposit must be made on the same day to the Customer Service Division before 5:00 p.m. if the total receipts on hand are equal to or greater than $100. Comply with rules promulgated by the Director of Fiscal Operations for handling and processing of City Cash and for documentation and dissemination of records, and with departmental internal procedures, established in conformity with the Director of Fiscal Operation's procedures; Notify the employee's supervisor and Department Director of any loss or theft of City money immediately upon discovery. Written notice shall be given to them no later than twenty-four hours after discovery; D. Be subject to disciplinary action, up to and including termination for failure to comply with each departments operating policies, Director of Fiscal Operations' procedures, collective bargaining agreements and/or duties degcribed in this policy. V. Liability for Loss As between a department and its officers and the Director of Fiscal Operations, the department has primary responsibility for care and liability for loss of City Cash in its custody until deposited in the City Treasury or entrusted to a cashier certified by the Director of Fiscal Operations; and the Director of Fiscal Operations thereafter. When deposit is made in an after-hours drop box of the City's financial institution, or an armored car service making collection for the City, losses are assigned to the Director of Fiscal operations if the Director of Fiscal Operations' instructions for making deposits have been followed, and to the department otherwise. B. Compliance with the procedures approved by the Director of Fiscal Operations establishes a presumption that a City department or office exercised due care in its custody and care of City Cash. VI. Certification of Cashiers and Fund Custodians Only persons who are certified by the Director of Fiscal Operations shall receive and handle City Cash on a regular basis in the scope and course of their employment. As a condition to certification or maintenance of a certification, the Director of Fiscal operations will require that the fund custodian and supervisors complete a course of instruction or training and/or pass an examination on: the secure processing of moneys, cash procedures and applicable departmental rules, and thereafter take refresher instruction or training at periodic intervals or when the need arises. All employees who receive and handle City Cash on a regular basis in the scope and course of their employment and all supervisors who oversee the cash handling function, shall complete such certification within six months of the approval of this policy or within six months of their appointment as fund custodian or supervisory function. A signed Certificate of Responsibility from the fund custodian and supervisor must be obtained verifying receipt of this Cash Handling Policy and the Department of Fiscal Operations Cash Handling Training Manual. Establishment/Increase of Cash Funds All requests for the establishment of cash funds must be made to the Director of Fiscal Operations. The Director of Fiscal Operations will maintain a complete listing of all cash funds. The department location, custodian and the amount of the cash fund are to be maintained upon this written listing. A. A check request should be submitted to the Director of Fiscal Operations for the amount of the funds requested. A written memorandum to the Director of Fiscal operations from the Department Director requesting the establishment or increase of a cash fund shall be forwarded with the check request for consideration. The memo should explain the need for the establishment or increase of the fund. C. A copy of the memo should be attached to the file copy of the voucher by the Director of Fiscal operations when the check is issued by the Department of Budget and Management Services. No funds are to be established out of cash receipts by any department. Upon establishment of a cash fund, a fund custodian should be appointed by the Department Director. Cash funds must have one fund custodian responsible for the disbursement of cash. In the absence of the fund custodian, the department/division head should make all disbursements from the cash fund. Should it become necessary to change fund custodians, the Department Head should notify the Director of Fiscal Operations and request an audit of the cash fund to be performed prior to transferring the cash fund to the new custodian. The Director of Fiscal Operations will forward a copy of the cash audit worksheet to the Department Director upon completion of the cash audit. VIIi. Termination of Cash Funds The Department Director should notify the Director of Fiscal Operations that the cash fund is to be closed and request that an audit be performed prior to closing the cash fund. The Department Director should furnish the Director of Fiscal Operations with a memorandum outlining the reasons for closing the cash fund. The Director of Fiscal Operations and/or his staff will perform an audit of the cash fund and provide the Department Director with a copy of the final cash audit worksheet. Any shortages or variances are to be investigated and resolved by the Department Director and the Director of Fiscal Operations. If the shortages or variances cannot be resolved, the Department Director is to provide a written explanation to the effect that a shortage or variance occurred which he or she could not resolve. This response should be addressed to the Director of Fiscal Operations. A copy of the written explanation should be forwarded to the City Manager and the Assistant City Manager of Fiscal and Municipal Services. Upon completion of the cash audit, the cash custodian should deposit any cash on hand with the Customer Service Division and provide a copy of the deposit slip to the Controller with any outstanding vouchers. The Director of Fiscal operations will provide the Controller with a copy of the final cash audit worksheet which details the expense accounts to be debited for preparation of ajoumat entry to close the cash fund. A copy of the Department Director's memo outlining the reasons for closing the cash fund will also be provided to the Controller. A copy of the final cash audit worksheet and the Department Director's memo should also be attached to the journal entry as supporting documentation. IX. Security of Cash Funds Cash funds are to be kept in locked boxes or drawers. The locked box is to be kept in a secure area where only the designated cashier or custodian, and the Department or Division Head, have keys and access to the funds. Provisions should be made in departments where more than one cash fund exists to secure all funds which are not being utilized. Only the Department or Division Head, or his/her designated custodian, should have access to an employee's cash fund in the event of their absence. D. Only the person responsible for the cash fund and the Department or D/vision Head should maintain keys and have access to the funds. E. Bank bags must be locked and kept out of sight when transporting city funds for deposit to the Customer Service Division. F. All funds must be reviewed randomly (at least weekly) by the fund supervisor or designated personnel. G. The use of surveillance cameras may be used to monitor city funds. A signed certificate of acknowledgement from the fund custodian and fund supervisor must be obtained verifying that they have been informed about the possible use of surveillance camera. X. Regulation of Petty Cash Funds Petty cash funds are available for making emergency or immediate purchases of items that are not routinely carried by by the Warehouse in the Materials Management Department. Petty cash funds are to be maintained only for this purpose, and no department shall possess a petty cash fund without establishing such a fund as outlined above. A. Maintenance of Petty Cash Funds Cash funds must have one fund custodian responsible for the disbursement of cash. In the absence of the fund custodian, the department/division head should make all disbursements from the petty cash fund. Each cash fund should have a set amount of funds to be accounted for. The Department of Budget and Management Services will not process payment authorizations to reimburse petty cash if the request exceeds the established amount of the petty cash fund. 3. The petty cash fund is to be reconciled on a daily basis by the fund custodian. The cash custodian should process a payment authorization to reimburse their petty cash fund as necessary. The payment authorization requesting reimbursement of petty cash is to be processed with enough lead-time to prevent thc remaining petty cash funds from being depleted prior to the issuance of the reimbursement check. All cheek payments to reimburse the petty cash fund are to made payable to the City of Denton. A petty cash voucher must be completed to support all disbursements of cash from the petty cash fund. The petty cash voucher must be completed in its entirety and approved by the Department/Division Head prior to the disbursement of any cash from the custodian. 6. Each petty cash voucher must be accompanied by a receipt ticket upon reimbursement or return of unused funds. Three signatures are required on all petty cash vouchers. All petty cash vouchers must be signed by the employee receiving the cash and by the Department/Division head approving the transaction. The petty cash custodian will then sign the voucher as cash is actually disbursed from the fund. 8. Employees are not to be reimbursed for sales tax. It is the responsibility of the Department/Division Heads to ensure that employees are aware of the City's exempt status. 10.Petty cash in advance is not to be held by any employee longer than a twenty-four period. Receipts and used funds must be returned and be reconciled to vouchers within the twenty-four hour period. 11.Expenditures for purchases made from the petty cash fund are not to exceed $50.00. Purchases that exceed $50.00 should be purchased on a departmental purchase requisition, as a normal purchase for items not regularly carried by Central Stores. B. Prohibited expenses include the following: 1. Loans to employees 2. IOUs for employee personal use 3. Cashing personal checks for the Department/Division Head, petty cash custodian, or other employees 4. Traveling or mining expenses (i.e. use of personal vehicle, parking and entertainment) - These expenditures should be reimbursed by submitting the proper expense report form to the Department of Budget and Management Services for audit, approval, and issuance of a reimbursement check. Petty cash funds may be used for official organized activities of the City Council or the various boards that function as part of City government. C. Documents Which Serve as Support for Disbursement of Petty Cash 1. A cash register receipt, provided that the date is current enough to support said purchase; 2. Cash receipt tickets from the place of purchase provided that the date is current, items purchased are listed and the ticket is signed by the employee as receiving said merchandise; 3. Proof of purchase in the form of a valid receipt provided the date is current and the type of the purchase or expenditure can be easily determined; and, 4. No refunds for purchases will be made without proof of purchase. 5. A petty cash voucher properly completed with authorizations for a cash advance. D. Proper Completion of a Petty Cash Voucher 1. All petty cash vouchers must be completed in ink or typewritten. 2. Three signatures are required on all vouchers. a) The Department Director must sign on the line approving the transaction. b) The petty cash custodian must sign or initial, beside the Department Director's signature. e) The employee receiving the cash must sign for cash received. 3. The date of the petty cash disbursement must be completed. 4. Items must be Iisted separately in the place provided for each item description and the individual cost must be listed separately under item price. 5. The budget account number to be charged for the petty cash purchase must be properly completed. The three-part form is then to be separated. The top, original copy of the voucher is to be retained by the petty cash custodian, while the second part of the form is to be returned and attached to the original to complete the transaction. The third part of the form is to be retained for the department's records. XI. Regulation of Change Funds Changes funds, or cash drawers, are to be maintained for the purpose of making change. Change funds are not to be co-mingled with other cash funds. Change funds are to be maintained only for this purpose and no depattment shall possess a change fund without establishing such a fund with the Director of Fiscal Operations. A. Maintenance of a Change Fund 1. Each change fund should have one person responsible for that fund or drawer at any one given time. In the areas where more than one change fund is used, each employee should work out of hisPner own change fund. Employees are not to work out of another employee's change fund. 2. Each change fund should be established for a set amount as outlined in Section VII. Establishment of Cash Funds, and this same amount should be maintained at all times. If an increase in a cash fund is needed, a memorandum sent to the Director of Fiscal Operations outlining the need and amount of funds requested is required. 3. Change funds are not to be used as petty cash funds. They are to be used only for making change. 4. Cash receipts are not to build up in a change fund. These receipts are to be removed and deposited as outlined in Section XII. Regulation of Deposits. 5. Receipts for all cash should be utilized so that an audit may be done at any time and the amount of the change fund can be verified. B. Cashing of Personal Checks from a Change Fund 1. Cashing of personal, payroll, and expense checks is prohibited from all remote change funds. 2. Personal, payroll, and expense checks may only be cashed in the Central Cash Receiving Division (Customer Service) and is permitted if adequate change is available in the cash drawer without depleting the change fund. a) Cashing personal checks for employees in excess of fifty dollars is not to be allowed. b) Any employee is not to cash more than one personal check daily. 3. Any employee who has had two returned personal checks within a twelve month period will be denied check cashing privileges until such time that less than two checks have been returned in the most recent twelve months. All employee checks returned to the City of Denton will be handled according to Section xm. Regulation of Return Checks. Regulation of Deposits The' City of Denton utilizes a central cash receiving unit, as all monies are paid or deposited to the Customer Service Division. Interdepartmental deposits made to the Customer Service Division shall be made according to the procedure as outlined below. City agencies, or departments, shall deliver their deposits daily to Customer Service before 5:00 p.m. if total receipts on hand are equal to or greater than $100. All deposits must be verified by a Customer Service Custodian. Those departments that do not collect revenue on a daily basis, or whose deposit is not sufficient enough to make daily deposits, should make a deposit with the Cashiering Unit at least twice weekly. One of these deposits should be made on Friday to prevent cash from being stored in their departments over the weekend. Deposits for these departments should also be made the day prior to a scheduled holiday to remove all cash during a holiday. A. Preparation of a Deposit All departments making deposits wilt be furnished with a three (3) part deposit slip. Ali three (3) copies of the completed deposit slip will be forwarded with the deposit itself in locked deposit bags. The deposit slip shall include the initials of the person preparing the deposit, as well as the department name, in the lower right hand comer of the slip. Deposit slips should be filled out to reflect currency (or bill), coin and check totals, with a sum total for these at the bottom. An adding machine tape reflecting these totals should accompany the deposit slip to avoid the need for listing each check separately. Departments (such as the Police and Parks and Recreation Departments) that collect monies to be posted to various accounts shall submit a summary sheet denoting the accounts that monies are to be posted to. These summary sheets shall be included with each deposit. B. Deposit and Verification of Receipts 1. Deposits shall be made to the Customer Service Division. When deposits are made to the Customer Service Division, the Chief or Lead Representative will verify the deposit by performing a recount of monies and a review of the deposit slip. Once a deposit is verified as correct, a copy of the deposit slip will be stamped by a verification stamp and returned immediately to the person making the deposit for the department's own record. The Chief or Lead Cashier will maintain a logbook to record the receipt of locked bank bags w/th deposits after she/he has completed verification. The deposit date, bag number, and cashier initials will be entered on the log upon deposit to indicate receipt. The person delivering the locked bank bag will also initial the Iogbook to verify delivery. 4. Each time a deposit is made, a new bank bag will be issued to the person making the deposit. Each department shall have designated bags for use by their department only. C. Maintenance of Bank Bags and Keys 1. Bank bags with deposits shall be kept locked at all times when not preparing or verifying deposits. The keys to the locked bank bags will be maintained by designated persons for each depositing department, the Chief or Lead Cashier, and the bank. 2. The Chief or Lead Cashier is responsible for ensuring safe transfer of all deposits to the armored car service on a daily basis. 3. It will be the responsibility of the Department Head to secure and limit access to bank bag keys. Access to these keys should be limited to the person or persons preparing the deposit. Personnel changes which affect the possession of keys or the preparation of deposits should be reported to the Director of Fiscal Operations. D. Losses/Shortages/Overages The Director of Fiscal Operations makes a clear distinction between a "Loss" and "Shortage" of City money. This is determined by the cash handler's ability to obtain physical custody of the money and how that person safeguards the money. 1. A shortage is an unintentional collection error such as a change making error. An overage occurs when a cash handler has collected too much money and cannot immediately ret-urn the excess to a specific customer. 2. On the other hand, a loss of City money is when a cash handler has obtained physical custody of money and then due to reasons like negligence, an act of God or an unlawful action, cannot deposit that money into the City Treasury. 3. An example of negligence is leaving City money unattended and not properly safeguarding that money from loss. Cash Custodians must report all losses to their supervisor and the Director of Fiscal Operations immediately. A detailed statement as to the circumstances of the loss must be forwarded to the Director of Fiscal Operations within twenty-four hours. E. Armored Car Procedures The Director of Fiscal operations recognizes the advantage of maximizing cash handler safety and increasing the amount of deposited cash available to the City's investment programs. Investment income from timely deposits provides additional revenue for City services. As a result, the City has a contracted armored transport service available for the use of departments. The fund custodian must prepare a receipt that lists each item or group of items to be picked up. The armored car personnel will sign the receipt in acceptance of the deposit and provide a copy of that receipt to the fund custodian. This receipt should include the pick-up date and the number(s) impressed on the deposit bag(s). At this point the fund custodian's responsibility is released to the armored car service. 2. Fund custodians are encouraged to identify armored car personnel by requesting to see their identification and comparing that ID against the armored ear company's authorization list. 3. A copy of the armored car receipt must be forwarded to the Customer Service Division. XIII, Regulation of Return Checks Ali return checks will be charged a return check fee as determined by city council. The fee is applicable when a customer, taxpayer, or employee check for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker's bank and returned to the City of Denton. The fee plus the base amount of check will be payable to the city by means of cash, money order, or cashiers check. 2. Ifa customer, taxpayer, or employee fails to honor the returned check within thirty days, the check will be turned over for collection. IVX. Action Taken in Event of Theft The danger of security and loss is a constant threat when handling money. Fund custodians are expected to safeguard City fimds against loss. Custodians should be familiar with what to do in times of emergency. In these circumstances, protecting human life should be the first concern. In the event of theft from a fund or deposit, the following actions shall be taken immediately. A. Report of Theft Upon discovery that a possible theft has occurred the Division/Department Director will conduct an internal review of the circumstances to ensure against clerical error. If the review unveils a theft or a mishandling of funds, the Division/Department Director will make a verbal report of the event to the Chief of Police and the City Manager within a twenty-four hour period. These verbal reports are to be immediately followed by a written account of the event and circumstances surrounding the incident. 2. The Department Director will file a police report and the Police Department will conduct an investigation and forward their findings to the City Manager. Upon review of the findings of the police investigation, the City Manager after consultation with the Deparh;;ent Director will determine the appropriate actions, if any, to be taken. If the police investigation indicates the involvement of a city employee, the Director of Human Resources shall be notified and appropriate administrative actions shall be initiated 4. Following the Police investigation, a report of the findings will be made to the Director of Fiscal Operations. The Director of Fiscal Operations will conduct an audit to determine any changes to improve the cash handling procedures. The Director of Fiscal Operations will prepare a report which will include an analysis of findings and any recommendations for improvement of cash handling procedures. These recommendations should be discussed with the Department Director in order to arrive at solutions for improved cash handling. RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON, TEXAS APPROVING REVISED CiTY POLICIES REGULATING THE HANDLING OF CASH BY CITY EMPLOYEES; AND DECLARING AN EFFECTIVE DATE. WHEREAS, The City of Denton, Texas as a part of the services provided, collects cash monies in different forms to be paid to the City of Denton, Texas; and WHEREAS, The Assistant City Manager of Fiscal & Municipal Services has provided a revised policy regarding employee roles and regulations concerning cash handling; and WHEREAS, The City Council, desires to adopt such policy as an official policy regarding employee rules and regulations coneeming cash handling with the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. Policy numbered 403.01 "Cash Handling Regulations" of the Personnel Policies and Procedure Manual of the City of Denton attached hereto and incorporated by reference herein, is hereby approved as official policy of the City of Denton, Texas thereby replacing the former 403.1. SECTION 2. The foregoing policy is attached hereto and made a part hereof and shall be filed in the official records with the City Secretary. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this.thc ~dayof ,2003 ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: By:HERBEX- i ~enTY' C ATTORNEY S:\Our Documents\Resolutio t Policy. doc CITY OF DENTON PAGE 1 OF 10 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: FINANCE REFERENCE NUMBER: 403.01 SUBJECT: CASH MANAGEMENT INITIAL EFFECTIVE DATE: 06/01/99 TITLE: CASH HANDLING REGULATIONS LAST REVISION DATE: 01/2000 POLICY STATEMENT The Cash Management Program was established for the purpose of ensuring adequate internal controls to account for the handling of City Cash and to maintain public trust. The term "City Cash" applies to currency, coin, checks, credit, charge and debit card payments, other electronic payment media, and other negotiable instruments payable in money to the City. ADMINISTRATIVE PROCEDURES: I. Enforcement of the cash management program are included but limited to the following: A. A random drawer audit conducted under the direction of the Director of Fiscal Operations. Any deficiencies in regard to the set procedures will be reported to the Director of Fiscal Operations and the Assistant City Manager of Fiscal & Municipal Services in the form of a memorandum outlining the deficiencies. The Director of Fiscal Operations will notify the Department Director involved and explain these deficiencies, and the Department Director will be responsible for taking appropriate action to correct deficiencies. D. If in a subsequent audit these deficiencies still exist, the Director of Fiscal Operations will advise the Assistant City Manager of Fiscal & Municipal Services that the deficiencies still exist. E. The Director of Fiscal Operations and the Assistant City Manager of Fiscal & Municipal Services will notify the Department Director involved and the City Manager of the existing situation. F. The City Manager will review the existing situation and may take appropriate action to resolve deficiencies and ensure that the procedures as outlined are administered properly. II. Delegation of Authority A. The Director of Fiscal Operations is authorized to promulgate rules for establishing procedures for the receipt, handling and deposit by City officers and employees of City Cash into the City Treasury for: the method of documentation on all such transactions; regular reporting to the Director of Fiscal Operations; certifying and rescinding certification by the Director of Fiscal Operations of all City officers and employees who are authorized to receive or handle City moneys in the regular course of their employment or departmental activities; inspection of departmental cash records, including overages or shortages; inspection of departmental practices and procedures in handling City Cash; and contracting with agents to collect City Cash and their collection procedures. The Director of Fiscal Operations may enforce these rules through on-site inspections; by rescinding certification of any officer or employee who fails to comply with the Director of Fiscal Operations' procedures and, in the event of noncompliance by a department or office, requiring that payments to personnel be authorized by the Director of Fiscal Operation, or deposited at his/her office. The Director of Fiscal Operations, as the City's banker, is required by law to receive, retain, and disburse all City revenue and keep detailed records of these transactions. The Director of Fiscal Operations is charged with the responsibility of overseeing the proper receipting and to safeguard all City funds. The Treasury will be conducting periodic cash drawer audits (unannounced) under the direction of the Director of Fiscal Operations. C. The Director of Fiscal Operations delegates the administration of the Cash Management Program to the Cash & Debt Administrator. D.Through certification, the responsibility and accountability of the daily collection of funds is delegated to the custodians and his/her supervisor. III. Duties of City Departments The Director of any City department who anticipates receiving City Cash on a regular basis in the course of its activities shall: A. Assign the receiving of City Cash only to those persons who are certified by the Director of Fiscal Operations for performing these functions; B. Collaborate with the Director of Fiscal Operations to establish and maintain a system of procedures, documentation and reporting on receipts handling and deposit of City money; C. Notify the Police Department of any loss or theft of City Cash immediately upon discovery. Written notice shall be given no later than twenty-four hours after discovery. D. Allow the Director of Fiscal Operations or his/her designee to make on-site inspections and observe the processing of City Cash, and to make inspections of departmental collection records. IV. Duties of City Personnel Any City officer or employee, who receives City Cash in the normal scope and course of his/her duties, shall: A. Immediately deposit the Cash with a City depository designated by the Director of Fiscal Operations to the credit of the City. The delivery or deposit must be made on the same day to the Customer Service Division before 5:00 p.m. if the total receipts on hand are equal to or greater than $100. B. Comply with rules promulgated by the Director of Fiscal Operations for handling and processing of City Cash and for documentation and dissemination of records, and with departmental internal procedures, established in conformity with the Director of Fiscal Operation's procedures; C. Notify the employee's supervisor and Department Director of any loss or theft of City money immediately upon discovery. Written notice shall be given to them no later than twenty-four hours after discovery; D. Be subject to disciplinary action, up to and including termination for failure to comply with each department's operating policies, Director of Fiscal Operations' procedures, collective bargaining agreements and/or duties described in this policy. V. Liability for Loss As between a department and its officers and the Director of Fiscal Operations, the department has primary responsibility for care and liability for loss of City Cash in its custody until deposited in the City Treasury or entrusted to a cashier certified by the Director of Fiscal Operations; and the Director of Fiscal Operations thereafter. When deposit is made in an after-hours drop box of the City's financial institution, or an armored car service making collection for the City, losses are assigned to the Director of Fiscal Operations if the Director of Fiscal Operations' instructions for making deposits have been followed, and to the department otherwise. B. Compliance with the procedures approved by the Director of Fiscal Operations establishes a presumption that a City department or office exercised due care in its custody and care of City Cash. VI. Certification of Cashiers and Fund Custodians A. Only persons who are certified by the Director of Fiscal Operations shall receive and handle City Cash on a regular basis in the scope and course of their employment. As a condition to certification or maintenance of a certification, the Director of Fiscal Operations will require that the fund custodian and supervisors complete a course of instruction or training and/or pass an examination on: the secure processing of moneys, cash procedures and applicable departmental rules, and thereafter take refresher instruction or training at periodic intervals or when the need arises. All employees who receive and handle City Cash on a regular basis in the scope and course of their employment and all supervisors who oversee the cash handling function shall complete such certification within six months of the approval of this policy or within six months of their appointment as fund custodian or supervisory function. A signed Certificate of Responsibility from the fund custodian and supervisor must be obtained verifying receipt of this Cash Handling Policy and the Department of Fiscal Operations Cash Handling Training Manual. VII. Establishment/Increase of Cash Funds All requests for the establishment of cash funds must be made to the Director of Fiscal Operations. The Director of Fiscal Operations will maintain a complete listing of all cash funds. The department location, custodian and the amount of the cash fund are to be maintained upon this written listing. A. A check request should be submitted to the Director of Fiscal Operations for the amount of the funds requested. B. A written memorandum to the Director of Fiscal Operations from the Department Director requesting the establishment or increase of a cash fund shall be forwarded with the check request for consideration. The memo should explain the need for the establishment or increase of the fund. C. A copy of the memo should be attached to the file copy of the voucher by the Director of Fiscal Operations when the check is issued by the Department of Budget and Management Services. D. No funds are to be established out of cash receipts by any department. Upon establishment of a cash fund, a fund custodian should be appointed by the Department Director. Cash funds must have one fund custodian responsible for the disbursement of cash. In the absence of the fund custodian, the department/division head should make all disbursements from the cash fund. Should it become necessary to change fund custodians, the Department Head should notify the Director of Fiscal Operations and request an audit of the cash fund to be performed prior to transferring the cash fund to the new custodian. The Director of Fiscal Operations will forward a copy of the cash audit worksheet to the Department Director upon completion of the cash audit. VIII. Termination of Cash Funds The Department Director should notify the Director of Fiscal Operations that the cash fund is to be closed and request that an audit be performed prior to closing the cash fund. The Department Director should furnish the Director of Fiscal Operations with a memorandum outlining the reasons for closing the cash fund. The Director of Fiscal Operations and/or his staff will perform an audit of the cash fund and provide the Department Director with a copy of the final cash audit worksheet. Any shortages or variances are to be investigated and resolved by the Department Director and the Director of Fiscal Operations. If the shortages or variances cannot be resolved, the Department Director is to provide a written explanation to the effect that a shortage or variance occurred which he or she could not resolve. This response should be addressed to the Director of Fiscal Operations. A copy of the written explanation should be forwarded to the City Manager and the Assistant City Manager of Fiscal and Municipal Services. Upon completion of the cash audit, the cash custodian should deposit any cash on hand with the Customer Service Division and provide a copy of the deposit slip to the Controller with any outstanding vouchers. The Director of Fiscal Operations will provide the Controller with a copy of the final cash audit worksheet which details the expense accounts to be debited for preparation of a journal entry to close the cash fund. A copy of the Department Director's memo outlining the reasons for closing the cash fund will also be provided to the Controller. A copy of the final cash audit worksheet and the Department Director's memo should also be attached to the journal entry as supporting documentation. IX. Security of Cash Funds Cash funds are to be kept in locked boxes or drawers. The locked box is to be kept in a secure area where only the designated cashier or custodian, and the Department or Division Head, have keys and access to the funds. Provisions should be made in departments where more than one cash fund exists to secure all funds, which are not being utilized. Only the Department or Division Head, or his/her designated custodian, should have access to an employee's cash fund in the event of their absence. D. Only the person responsible for the cash fund and the Department or Division Head should maintain keys and have access to the funds. E. Bank bags must be locked and kept out of sight when transporting city funds for deposit to the Customer Service Division. F. All funds must be reviewed randomly (at least weekly) by the fund supervisor or designated personnel. G. The use of surveillance cameras may be used to monitor city funds. A signed certificate of acknowledgement from the fund custodian and fund supervisor must be obtained verifying that they have been informed about the possible use of surveillance camera. X. Regulation of Petty Cash Funds Petty cash funds are available for making emergency or immediate purchases of items that are not routinely carried by the Warehouse in the Materials Management Department. Petty cash funds are to be maintained only for this purpose, and no department shall possess a petty cash fund without establishing such a fund as outlined above. A. Maintenance of Petty Cash Funds Cash funds must have one fund custodian responsible for the disbursement of cash. In the absence of the fund custodian, the department/division head should make all disbursements from the petty cash fund. Each cash fund should have a set amount of funds to be accounted for. The Department of Budget and Management Services will not process payment authorizations to reimburse petty cash if the request exceeds the established amount of the petty cash fund. 3. The petty cash fund is to be reconciled on a daily basis by the fund custodian. The cash custodian should process a payment authorization to reimburse their petty cash fund as necessary. The payment authorization requesting reimbursement of petty cash is to be processed with enough lead-time to prevent the remaining petty cash funds from being depleted prior to the issuance of the reimbursement check. All check payments to reimburse the petty cash fund are to made payable to the City of Denton. A petty cash voucher must be completed to support all disbursements of cash from the petty cash fund. The petty cash voucher must be completed in its entirety and approved by the Department/Division Head prior to the disbursement of any cash from the custodian. 6. Each petty cash voucher must be accompanied by a receipt ticket upon reimbursement or return of unused funds. Three signatures are required on all petty cash vouchers. All petty cash vouchers must be signed by the employee receiving the cash and by the Department/Division head approving the transaction. The petty cash custodian will then sign the voucher as cash is actually disbursed from the fund. 8. Employees are not to be reimbursed for sales tax. It is the responsibility of the Department/Division Heads to ensure that employees are aware of the City's exempt status. 10.Petty cash in advance is not to be held by any employee longer than a twenty-four period. Receipts and used funds must be returned and be reconciled to vouchers within the twenty-four hour period. 11 .Expenditures for purchases made from the petty cash fund are not to exceed $50.00. Purchases that exceed $50.00 should be purchased on a departmental purchase requisition, as a normal purchase for items not regularly carried by Central Stores. B. Prohibited expenses include the following: 1. Loans to employees 2. IOUs for employee personal use 3. Cashing personal checks for the Department/Division Head, petty cash custodian, or other employees 4. Traveling or training expenses (i.e. use of personal vehicle, parking and entertainment) - These expenditures should be reimbursed by submitting the proper expense report form to the Department of Budget and Management Services for audit, approval, and issuance of a reimbursement check. Petty cash funds may be used for official organized activities of the City Council or the various boards that function as part of City government. C. Documents Which Serve as Support for Disbursement of Petty Cash 1. A cash register receipt, provided that the date is current enough to support said purchase; 2. Cash receipt tickets from the place of purchase provided that the date is current, items purchased are listed and the ticket is signed by the employee as receiving said merchandise; 3. Proof of purchase in the form of a valid receipt provided the date is current and the type of the purchase or expenditure can be easily determined; and, 4. No refunds for purchases will be made without proof of purchase. 5. A petty cash voucher properly completed with authorizations for a cash advance. D. Proper Completion of a Petty Cash Voucher 1. All petty cash vouchers must be completed in ink or typewritten. 2. Three signatures are required on all vouchers. a) The Department Director must sign on the line approving the transaction. b) The petty cash custodian must sign or initial, beside the Department Director's signature. c) The employee receiving the cash must sign for cash received. 3. The date of the petty cash disbursement must be completed. 4. Items must be listed separately in the place provided for each item description and the individual cost must be listed separately under item price. 5. The budget account number to be charged for the petty cash purchase must be properly completed. 6. The three-part form is then to be separated. The top, original copy of the voucher is to be retained by the petty cash custodian, while the second part of the form is to be returned and attached to the original to complete the transaction. The third part of the form is to be retained for the department's records. XI. Regulation of Change Funds Changes funds, or cash drawers, are to be maintained for the purpose of making change. Change funds are not to be co-mingled with other cash funds. Change funds are to be maintained only for this purpose and no department shall possess a change fund without establishing such a fund with the Director of Fiscal Operations. A. Maintenance of a Change Fund Each change fund should have one person responsible for that fund or drawer at any one given time. In the areas where more than one change fund is used, each employee should work out of his/her own change fund. Employees are not to work out of another employee's change fund. Each change fund should be established for a set amount as outlined in Section VII. Establishment of Cash Funds, and this same amount should be maintained at all times. If an increase in a cash fund is needed, a memorandum sent to the Director of Fiscal Operations outlining the need and amount of funds requested is required. 3. Change funds are not to be used as petty cash funds. They are to be used only for making change. 4. Cash receipts are not to build up in a change fund. These receipts are to be removed and deposited as outlined in Section XII. Regulation of Deposits. 5. Receipts for all cash should be utilized so that an audit may be done at any time and the amount of the change fund can be verified. B. Cashing of Personal Checks from a Change Fund 1. Cashing of personal, payroll, and expense checks is prohibited from all remote change funds. Personal, payroll, and expense checks may only be cashed in the Central Cash Receiving Division (Customer Service) and is permitted if adequate change is available in the cash drawer without depleting the change fund. a) Cashing personal checks for employees in excess of fifty dollars is not to be allowed. b) Any employee is not to cash more than one personal check daily. Any employee who has had two returned personal checks within a twelve-month period will be denied check cashing privileges until such time that less than two checks have been returned in the most recent twelve months. All employee checks returned to the City of Denton will be handled according to Section XIII. Regulation of Return Checks. XII. Regulation of Deposits The City of Denton utilizes a central cash-receiving unit, as all monies are paid or deposited to the Customer Service Division. Interdepartmental deposits made to the Customer Service Division shall be made according to the procedure as outlined below. City agencies, or departments, shall deliver their deposits daily to Customer Service before 5:00 p.m. if total receipts on hand are equal to or greater than $100. All deposits must be verified by a Customer Service Custodian. Those departments that do not collect revenue on a daily basis, or whose deposit is not sufficient enough to make daily deposits, should make a deposit with the Cashiering Unit at least twice weekly. One of these deposits should be made on Friday to prevent cash from being stored in their departments over the weekend. Deposits for these departments should also be made the day prior to a scheduled holiday to remove all cash during a holiday. A. Preparation of a Deposit All departments making deposits will be furnished with a three (3)-part deposit slip. All three (3) copies of the completed deposit slip will be forwarded with the deposit itself in locked deposit bags. The deposit slip shall include the initials of the person preparing the deposit, as well as the department name, in the lower right hand comer of the slip. Deposit slips should be filled out to reflect currency (or bill), coin and check totals, with a sum total for these at the bottom. An adding machine tape reflecting these totals should accompany the deposit slip to avoid the need for listing each check separately. Departments (such as the Police and Parks and Recreation Departments) that collect monies to be posted to various accounts shall submit a summary sheet denoting the accounts that monies are to be posted to. These summary sheets shall be included with each deposit. B. Deposit and Verification of Receipts 1. Deposits shall be made to the Customer Service Division. When deposits are made to the Customer Service Division, the Chief or Lead Representative will verify the deposit by performing a recount of monies and a review of the deposit slip. Once a deposit is verified as correct, a copy of the deposit slip will be stamped by a verification stamp and retumed immediately to the person making the deposit for the department's own record. The Chief or Lead Cashier will maintain a logbook to record the receipt of locked bank bags with deposits after she/he has completed verification. The deposit date, bag number, and cashier initials will be entered on the log upon deposit to indicate receipt. The person delivering the locked bank bag will also initial the logbook to verify delivery. 4. Each time a deposit is made, a new bank bag will be issued to the person making the deposit. Each department shall have designated bags for use by their department only. C. Maintenance of Bank Bags and Keys Bank bags with deposits shall be kept locked at all times when not preparing or verifying deposits. The keys to the locked bank bags will be maintained by designated persons for each depositing department, the Chief or Lead Cashier, and the bank. 2. The Chief or Lead Cashier is responsible for ensuring safe transfer of all deposits to the armored car service on a daily basis. It will be the responsibility of the Department Head to secure and limit access to bank bag keys. Access to these keys should be limited to the person or persons preparing the deposit. Personnel changes, which affect the possession of keys or the preparation of deposits, should be reported to the Director of Fiscal Operations. D. Losses/Shortages/Overages The Director of Fiscal Operations makes a clear distinction between a "Loss" and "Shortage" of City money. This is determined by the cash handler's ability to obtain physical custody of the money and how that person safeguards the money. A shortage is an unintentional collection error such as a change making error. An overage occurs when a cash handler has collected too much money and cannot immediately return the excess to a specific customer. On the other hand, a loss of City money is when a cash handler has obtained physical custody of money and then due to reasons like negligence, an act of God or an unlawful action, cannot deposit that money into the City Treasury. 3. An example of negligence is leaving City money unattended and not properly safeguarding that money from loss. Cash Custodians must report all losses to their supervisor and the Director of Fiscal Operations immediately. A detailed statement as to the circumstances of the loss must be forwarded to the Director of Fiscal Operations within twenty-four hours. E. Armored Car Procedures The Director of Fiscal Operations recognizes the advantage of maximizing cash handler safety and increasing the amount of deposited cash available to the City's investment programs. Investment income from timely deposits provides additional revenue for City services. As a resuk, the City has a contracted armored transport service available for the use of departments. The fund custodian must prepare a receipt that lists each item or group of items to be picked up. The armored car personnel will sign the receipt in acceptance of the deposit and provide a copy of that receipt to the fund custodian. This receipt should include the pick-up date and the number(s) impressed on the deposit bag(s). At this point the fund custodian's responsibility is released to the armored car service. 2. Fund custodians are encouraged to identify armored car personnel by requesting to see their identification and comparing that ID against the armored car company's authorization list. 3. A copy of the armored car receipt must be forwarded to the Customer Service Division. XIII. Regulation of Return Checks All return checks will be charged a return check fee as determined by city council. The fee is applicable when a customer, taxpayer, or employee check for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker's bank and returned to the City of Denton. The fee plus the base amount of check will be payable to the city by means of cash, money order, or cashiers check. 2. If a customer, taxpayer, or employee fails to honor the retumed check within thirty days, the check will be turned over for collection. XIV. Action Taken in Event of Theft The danger of security and loss is a constant threat when handling money. Fund custodians are expected to safeguard City funds against loss. Custodians should be familiar with what to do in times of emergency. In these circumstances, protecting human life should be the first concern. Thefts are to be reported and handled in compliance with the "Fraud Directive", reference number 509.01 in the City of Denton Policies and Procedures Manual. Following the complete investigation performed in accordance with the "Fraud Directive", the Director of Fiscal Operations will conduct a review of the cash handling procedures and related internal controls and issue a report of his/her conclusions on improvements to cash handling procedures. The report will be discussed for implementation with the related department director in an effort to prevent future thefts from occurring. CITY OF DENTON, TEXAS CASH HANDLING CERTIFICATE OF RESPONSIBILITY I .... have read and understand the City of Denton Cash Handling Regulations, Policy Number 403.01 and have completed a course of instruction and training on the Department of Fiscal Operations Cash Handling Training Manual. A copy of the Policy and Cash Handling Training Manual were provided to me on I agree to be the fund custodian of and be held responsible and accountable for the daily collection of city funds according to the City of Denton Cash Handling Regulations, Policy Number 403.01 and the Department of Fiscal Operations Cash Handling Training Manual for the Department located at in the amount of $ I have also been informed and understand that surveillance camera may be used to monitor city funds at this location. Signed: Custodian Date Department Director Date Department of Fiscal Operations Representative Date 02~04~03 #4D AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Police Jon Fortune, Public Safety and Transportation Operations SUBJECT Consider adoption of an ordinance authorizing the Mayor to execute an Interlocal Cooperation Agreemem between the City of DeNon and the City of Krum for the impoundmem and disposition of dogs and cats and the collection of fees pursuant to the provisions of said agreement; and providing for an effective date. BACKGROUND This is the second year that Krum has requested an interlocal agreement for these services. The animals delivered by Krum have not resulted in overcrowding at the Animal Services facility. This Agreement states that the City of Denton will provide the following services to the City of Krum for the impoundmem and disposition of animals delivered to the City of DeNon from the City of Krum: (1) The City of Demon will hold these animals for ninety-six (96) hours if not claimed by an owner. If the owner does not claim the animal within the prescribed ninety-six (96) hours, the animals will be euthanized or made available for adoption. (2) The City of Demon will accept and hold rabies suspects in quaramine for ten (10) days. (3) The City of Demon will remove and ship the heads of rabies suspects for rabies testing by the Texas Department of Health. For these services, the City of Krum agrees to pay fees set forth in the agreemem as follows: (1) A holding fee in the amount of fifteen dollars ($15.00) for the first day or part of a day and five dollars ($5.00) for each subsequent day per animal held for reclamation by the owner. (2) A holding fee in the amount of fifteen dollars ($15.00) for the first day or part of a day and five dollars ($5.00) for each subsequem day per animal held in quaramine as a rabies suspect. (3) Thirty dollars ($30.00) for each animal euthanized. (4) Seventy dollars ($70.00) for each decapitation and shipment. RECOMMENDATION The Department recommends approval of the ordinance and renewal of the Interlocal Agreement with the City of Krum. 1. The Interlocal Agreement provides a valuable service to the citizens of Krum. 2. The housing and disposal of dogs and cats received from the City of Krum is not projected to create a hardship for the City's Animal Services operation. 3. The Interlocal Agreement is a source of revenue for the City. PRIOR ACTION/REVIEW The attached Interlocal Agreement has been reviewed for legal form and content by the City of Denton Legal Department. The Agreement has been approved by the Krum City Council. FISCAL INFORMATION The prescribed fees in the Agreement are calculated to recover all costs of all services rendered and, therefore, this Agreement does not result in an increase in expenditures. Based on the anticipated number of animals received, the Agreement will result in an additional $1,000.00 in revenue. Prepared by: Joanie Housewright Captain, Operations Bureau Respectfully submitted, Charles Wiley Chief of Police S:\Our Docmments\Ordinances\02~ccmm animal control.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN iNTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF DENTON AND THE CITY OF KRUM FOR THE IMPOUNDMENT AND DISPOSITION OF DOGS AND CATS AND THE COLLECTION OF FEES PURSUANT TO THE PROVISIONS OF SAID AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Mayor, or in her absence, the Mayor Pro Tem, is hereby authorized to execute an interlocal Cooperation Agreementbetween the City of Denton and the City of Kmm for the impoundment and disposition of dogs and cats, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. That the City Council authorizes the collection of all fees as prcvided pursuant to the provisions of said Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 200 ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: A:\fbrm krmm animal control.doc STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT WHEREAS, the City of DeNon, Texas ("DENTON") and the City of Krum, Texas ("KRUM") are both local governmems with the authority and power to comract; and WHEREAS, DENTON is engaged in the services of holding and disposing of dogs and cats for the benefit of the citizens of DENTON; and WHEREAS, DENTON is the owner of certain facilities and equipmem designed for the holding and disposition of dogs and cats and has in its errploy trained personnel whose duties are related to the use of such facilities and equipment; and WHEREAS, KRUM desires to obtain impoundment and disposition services for dogs and cats rendered by DENTON, as more fully hereafter described, for the benefitof the citizens of KRUM; and WHEREAS, KRUM and DENTON mutually desire to be subject to the provisions of Texas Government Code, Chapter 791, the Interlocal Cooperation Act and contract pursuant thereto; and WHEREAS, both DENTON and KRUM have the authchty to perform the services set forth in this Agreemem individually in accordance with Texas Govemmem Code §791.01 l(c); and WHEREAS, KRUM will make all payments for services out of available current revenues and DENTON agrees that the paymems made b~ KRUM hereunder will fairly compensate it for the services provided; NOW, THEREFORE, KRUM and DENTON, for the mutual consideration hereinafter stated, agree as follows: A. COVENANTS OF THE CITY OF DENTON Holding of Dogs and Cats. DENTON agrees to accept and hold dogs and cats lawfully impounded by authorized representatives of KRUM under the following terms and conditions: Holding Period for Dogs and Cats, DENTON agrees to hold such dogs and cats for a period of ninety-six (96) hours from the time they are accepted by the Animal Control Center in order to allow the owners of the impounded animal a reasonable amount of time to reclaim the impounded animal. If the animal is not ANIMAL CONTROL INTERLOCAL COOPERATION AGREEMENT - KRUM PAGE 1 OF 5 A:\fbrm krmm animal control.doc reclaimed within the ninety-six (96) hour period, the ownership of the animal shall revert to the Animal Control Center. Animals will be humanely destroyed or placed for adoption at the discretion of the Animal Control staff. Holding Fees for Impounded Dogs and Cats For the purpose of this Agreement, DENTON will charge Fifteen Dollars ($15.00) for the first day or part of a day and Five Dollars ($5.00) for each subsequent day holding fee that an animal is held at the Animal Control Center. In determining the meaning of the term "animal" as used herein, it is agreed that a pregnant animal which has its litter while being held, or an animal which is nursing its litter and is being kept in the same cage, will be considered one animal for the assessment of charges provided for in this Agreement. This fee will be assessed against the owner of the animal at the time the animal is reclaimed. No animal will be released until all applicable fees are paid in full. Holding of Quarantine Animals. DENTON agrees to accept and hold rabid suspects in quarantine for KRUM when conditions permit, and such action is authorized by a representative of KRUM. Holding Fees for Quarantined Animals The holding fee for quarantined animals shall be Fifteen Dollars ($15.00) for the first day or part of a day and Five Dollars ($5.00) for each subsequent day that the animal is held. Head Shipments and Rabies Testing. Upon request of KRUM, DENTON will provide for the removal and shipment of heads of rabid suspects for clinical rabies testing at the Texas Department of Health. The fee for this service shall be Seventy Dollars ($70.00) for each head shipped. COVENANTS OF THE CITY OF KRUM Financial Responsibilities. In order to reimburse DENTON for its costs incurred under this Agreement, KRUM agrees to pay for the holding fees and euthanasia fe~s on dogs and cats received from KRUM or its authorized agent if the animal(s) is not reclaimed by the owner. These fees will be assessed on the following basis: Euthanized Animal: Fifteen Dollars ($15.00) for the first day or part of a day and Five Dollars ($5.00) for each subsequent day holding fee for each animal as determined herein, plus Thirty Dollars ($30.00) euthanasia fee. Adopted Animal: Fifteen Dollars ($15.00) for the first day or part of a day and Five Dollars ($5.00) for each subsequent day holding fee for each animal as determined herein. c. Head Shipments: Seventy Dollars ($70.00) shipping fee. ANIMAL CONTROL INTERLOCAL COOPERATION AGREEMENT - KRUM PAGE 2 OF 5 A:\fbrm krmm animal control.doc d. Carcass disposal: Five dollars ($5.00). DENTON will collect impound fees duly authorized by KRUM and as specified in this paragraph from the owners of dogs and cats received from KRUM. Impound fee monies will be applied to fees owed DENTON by KRUM for animals not reclaimed by the owner: IMPOUND FEE 1 st Impoundment - $20.00 2nd Impoundment- $30.00 3rd Impoundment- $45.00 4th Impoundment - $70.00 3. KRUM agrees payment shall be made within forty-five (45) days of receipt of invoice by KRUM. DENTON agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all DENTON's employees and agents, DENTON's subconractors and/or contract laborers doing work under a contract or agreement with DENTON in performance of this Agreement with KRUM. KRUM agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all KRUM's employees and agents, KRUM's subcontractors and/or contract laborers doing work under a contract or agreement with KRUM in performance of this Agreement with DENTON. It is further agreed that if claim or liability shall arise from the joint or concurring negligence of both parties hereto, it shall be borne by them comparatively in accordance with the laws of the State of Texas. This paragraph shall not be construed as a waiver by either party of any defenses available to it under the laws of the State of Texas. It is understood that it is not the intention of the parties hereto to create liability for the benefit of third parties, but that this Agreement shall be for the benefit of the parties hereto. The fact that KRUM and DENTON accept certain responsibilities relatingto the collection and impounding of dogs and cats under this Agreement as part of their responsibility for providing protection for the public health and welfare and, therefore, makes it imperative that the performance of these vital services be recognized as a governmental immunity shall be, and is hereby invoked to the full extent possible under the law. Neither DENTON nor KRUM waives or shall be deemed hereby to waive any immunity or defense that would otherwise be available to it against the claims arising from the exercise of governmental functions. ANIMAL CONTROL INTERLOCAL COOPERATION AGREEMENT - KRUM PAGE 3 OF 5 A:\fbrm krmm animal control.doc The term of this Agreement shall be for a period of one (1) year, commencing as of October 1, 2002 and ending September 30, 2003. Thereafter, this Agreement shall be renewed for successive additional one (1) year terms commencing on October 1 of each year if KRUM and DENTON agree in writing on or before the first day of October to a successive term and the amount of consideration to be paid hereunder for each successive term; provided, however, either party may terminate this Agreement upon thirty (30) days written notice to the other. This Agreement represents the entire and integrated agreement between DENTON and KRUM and supersedes all prior negotiations, representations, and/or agreements, eiher written or oral. This Agreement may be amended only by written instrument signed by both DENTON and KRUM. This Agreement and any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions extending said authority have been duly passed and are now in full force and effect. 200 EXECUTED in duplicate originals this the day of CITY OF DENTON, TEXAS BY: EULINE BROCK, MAYOR ANIMAL CONTROL INTERLOCAL COOPERATION AGREEMENT - KRUM PAGE 4 OF 5 A:\fbrm krmm animal control.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: CITY OF KRUM, TEXAS MAYOR ATTEST: CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: CITY ATTORNEY BY: ANIMAL CONTROL INTERLOCAL COOPERATION AGREEMENT - KRUM PAGE 5 OF 5 02~04~03 #4E AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM: February 4, 2003 City Manager's Office Mike Conduff, City Manager SUBJECT Consider adoption of an ordinance ordering an election to be held in the City of Demon, Texas, on May 3, 2003, and if a runoff election is required, on May 31, 2003, for the purpose of electing Council Members to Places 1, 2, 3, and 4 of the City Council of the City of Denton, Texas; designating voting places and appointing election officials; providing for early voting; providing for bilingual notice of the election; ordering that an electronic voting system be used; making additional provisions for the conduct thereof; providing an open meetings clause; and providing for an effective date. BACKGROUND Approval of this ordinance would formally call the May 3, 2003 City Council election. The ordinance comains all of the provisions necessary to fulfill the requiremems of the Texas Election Code, including election judges and alternate election judges. Respectfully submitted: Jennifer Walters City Secretary S:\Our Docmments\Ordinances\03~2003 election ordinance, doc ORDINANCE NO. AN ORDINANCE ORDERING AN ELECTION TO BE HELD iN THE CITY OF DENTON, TEXAS, ON MAY 3, 2003, AND, IF A RUNOFF ELECTION IS REQUIRED, ON MAY 31, 2003, FOR THE PURPOSE OF ELECTING COUNCiLMEMBERS TO PLACES 1, 2, 3 AND 4 OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS; DESiGNATiNG VOTING PLACES AND APPOiNTiNG ELECTION OFFICIALS; PROViDiNG FOR BiLiNGUAL NOTICE OF THE ELECTION; ORDERING THAT AN ELECTRONIC VOTING SYSTEM BE USED; MAKING ADDITIONAL PROVISIONS FOR THE CONDUCT THEREOF; PROViDiNG AN OPEN MEETINGS CLAUSE; AND PROViDiNG FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That a municipal election is ordered to be held in the City of Denton, Texas, on Saturday, May 3, 2003, such date being a uniform election date as defined in Tex. Elec. Code §41.001, as amended (the "Code") for the purpose of electing Council members for Places 1, 2, 3 and 4. in the event a runoff is required, the runoff election shall be held on Saturday, May 31, 2003. SECTION 2. That the polling places, which shall be open from 7:00 a.m. to 7:00 p.m., shall be as follows: 1. Voters residing in District No. 1 shall vote at: MARTIN LUTHER KING, JR. RECREATION CENTER 1300 WILSON STREET DENTON, TEXAS 2. Voters residing in District No. 2 shall vote at: FIRE STATION NO. 4 2110 SHERMAN DRIVE DENTON, TEXAS 3. Voters residing in District No. 3 shall vote at: NORTH LAKES RECREATION CENTER 2001 WEST WINDSOR DRIVE DENTON, TEXAS 4. Voters residing in District No. 4 shall vote at: DENIA RECREATION CENTER 1001 PARViN DENTON, TEXAS SECTION 3. That the election officials for the election and the runoff, if any, shall be as follows: S:\Our Docmments\Ordinances\03~2003 election ordinance, doc For the Central Counting Station: Connie Bell, Presiding Judg:; Don Alexander, Manager; and Randie Geistman, Tabulation Supervisor. 2. For District No. 1: Ruby Cole, Presiding Judge and Betty Kimble, Alternate Judge. 3. For District No. 2: Doris Chipman, Presiding Judge and Mary Mecay, Alternate Judge. 4. For District No. 3: George Spuller, Presiding Judge and Meri B askin, Alternate Judge. For District No. 4: Jimmie Colville, Presiding Judge and Mary Morris, Alternate Judge. Jennifer Walters, City Secretary, shall conduct early voting under theTexas Election Code. 7. Connie Bell shall be Presiding Judge for the Early Ballot Board. The presiding judge of the Central Counting Station and of each district are authorized to appoint a sufficient number of clerks as necessary to assist them in he election, including bilingual assistants as required by law. The rate of pay for election judges and clerks shall be the maximum amount provided for by State law. SECTION 4. That early voting shall be conducted for the election, and the runoff et~ction if necessary, by the Office of the City Secretary in the Municipal Building at 215 East McKinney Street in the City of Denton, Texas. The polls for early voting by personal appearance shall be open between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, commencing on April 16, 2003, and ending on April 29, 2003. In addition, early voting shall be held on Saturday, April 19, 2003, between the hours of 10:00 a.m. and 3:00 p.m., at the same location as weekday early voting. SECTION 5. That the Mayor is hereby directed to provide notice of the election, and the runoff election if necessary, in accordance with Sections 4.002 and 4.003 of the Texas Election Code and as required by other applicable provisions of the law, the notice to be prhted in the Spanish language and the English language. SECTION 6. That an electronic voting system, using optically scanned ballots, meeting the requirements of Chapter 124 of the Code, shall be used for said election. Preparation of the necessary equipment and official ballots for the election shall conform to the requirements of the Texas Election Code. SECTION 7. That the City Secretary is authorized to prepare the official ballot for the election and perform every act required by the City Charter and laws of the State of Texas for holding elections. Page 2 S:\Our Docmments\Ordinances\03~2003 election ordinance, doc SECTION 8. The election officers named above shall make returns for the election in the manner required by law. The ballots that are properly marked in conformance with the provisions of the Texas Election Code for votes cast both during the period of early voting and on the day of the election shall be counted in the manner required by law. SECTION 9. That the manner of holding such election and all questions pertaining thereto shall be governed by the election laws of the State of Texas. SECTION 10. Substantial copies of this ordinance in both English and Spanish shall serve as proper notice of the election and said notice shall be: (a) published at least once in a newspaper of general circulation published within the City, not less than the thirtieth day or later than the tenth day before the election; (b) posted, not later than the twentyfirst day before the election day, at a public place in each election district that is in the jurisdiction of the city; (c) posted, not later than the twenty-first day before election day a copy of this notice, which must include the locations of each polling place, on the bulletin board used for posting notices of meetings of the City Council of the City; or (d) posted, as may otherwise be required by Tex. Elec. Code §4.003 and other applicable law. SECTION 11. That it is hereby officially found and determined that the meeting at which this ordinance is passed was open to the public as required by law md that public notice of the time, place, and purpose of said meeting was given as required by the Open Meetings Act, as amended Tex. Gov't Code, ch. 551 and that a quorum of the City Council was present. SECTION 12. That this ordinance shall become effective immediately upon its passage, publication, and approval. PRESENTED AND PASSED on the __ day of February, 2003, at a regular meeting of the City Council of the City of Denton, Texas, by a vote of__ ayes and __ nos. 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 Page 3 02~04~03 #4F AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Tax Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider approval of tax refunds for the following property taxes: Tax Name Reason Year Amount B. Texas Title Duplicate Payment 2002 4,665.71 C SD i~gi Ov~ nt 2002 80653 D, Title Resources Duplicate Payment 2002 577,4! F. Denton County Title Duplicate Payment 2002 1,547.30 BACKGROUND Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $500.00. FISCAL INFORMATION The tax overpayment revenue fund would be reduced by $10,809.73. Respectfully submitted: Diana Ortiz Director of Fiscal Operations 02~04~03 #4G AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Airport and Transportation Operations Jon Fortune, Public Safety and Transportation Operations SUBJECT Consider adoption of an Ordinance of the City of Demon, Texas repealing section 3-17 of the Code of Ordinances, which prohibits the operation of Ultralight aircraft at the Denton Municipal Airport; and providing an effective date. BACKGROUND The City of Demon maimains certain gram assurances with the Federal Aviation Administration (FAA) and the Texas Departmem of Transportation, Aviation Division (TxDOT). The FAA and TxDOT specifically state that airports that receive grant assistance shall not restrict any aeronautical activity. Section 3-17 of the Codes of Ordinances states: (a) For purposes of this section, an ultralight aircraft means an aircraft which meets the requirements set forth in 14 CFR 103.1. (b) It shall be unlawful for any person to operate an ultralight aircraft on the municipal airport. (c) It shall be an aflfrmative defense to the prosecution of an offense under subsection (b) of this section if the ultralight operator was experiencing engine failure. (Ord. No. 90-121, S¢ II~ 8-21-90) Ultralight operations were restricted at the Demon Airport in 1991 due to a safety concern posed by this type of aeronautical activity. Airport staff has requested the FAA to conduct a safety analysis on ultralight activity at the Demon Airport to provide an official determination level of flight risks associated with ultralight aircraft. The future operation of the air traffic control tower will greatly assist in improving the operational safety of these aircraft mixing with faster multi-engine or turbine-powered aircraft. ESTIMATED SCHEDULE OF PROJECT Ordinance shall take effect February 5, 2002. PRIOR ACTION/REVIEW The City Attorney's Office has reviewed and approved this ordinance. The Airport Advisory Board recommends approval of this Agreement. FISCAL INFORMATION Future improvements may need to be made pursuant to improving an auxiliary landing site for these aircraft. Maintenance costs not to exceed $1,000 annually will be expected. Respectfully submitted: Mark Nelson Director of Airport and Transit Operations ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS REPEALING SECTION 3-17 OF THE CODE OF ORDINANCES WHICH PROHIBITS THE OPERATION OF ULTRALIGHT AIRCRAFT AT THE DENTON MUNICIPAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, in order to maintain access to federal funding for the Denton Municipal Airport it is necessary that ultralight aircraft be permitted to operate at the airport; and WHEREAS, Section 3-17 of the Code of Ordinances of the City of Denton prohibits the operation of ultralight aircraft at the Denton Municipal Airport; and WHEREAS, the City Council of the City of Denton, Texas hereby finds that it is in the public interest to repeal Section 3-17; 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 into the body of this ordinance as if fully set forth herein. SECTION 2. Section 3-17 of the Code of Ordinances of the City of Denton, Texas is hereby repealed in its entirety. 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 BY: EULINE BROCK, MAYOR AIRPORTS § 3-18 and unless such aircraft shall have first received a certificate of airworthiness, which is still in effect, from the Federal Aviation Administration. (Code 1966, § 3-9) Sec. 3-13. Operation subject to rules. No person shall operate any aircraft over or Within the city in violation of any air traffic rule or other regulation established by the Federal Aviation Administration. (Code 1966, § 3-10) Sec. 3-14. Acrobatic flying. Acrobatic flying by any person flying OVer any portion of the city is hereby prohibited. (Code 1966, § 3-11) Sec. 3-15. Landing place designated. Except in case of an emergency or with written permission from the city manager, no person shall land any aircraft within the city except upon a regularly established airport, field or landing place. (Code 1966, § 3-12) Sec. 3-16. Lights for night operation required. All aircraft when flying within or over the city at night shall have hghts and other equipment for such flying required by the rules, regulations or orders of the Federal Aviation Administration. (Code 1966, § 3-13) Sec. 3-17. Ultralight aircraft. (a) For purposes of this section, an ultralight aircraft means an aircraft which meets the requirements set forth in 14 CFR 103.1. (b) It shall be unlawful for any person to operate an ultralight, aircraft on the municipal airport. (c) It shall be an affirmative defense to the prosecution of an offense under subsection (b) of this section if the ultralight operator was experiencing engine failure. (Ord. No. 90-121, § II, 8-21-90) Sec. 3-18. Lighter-than-air aircraft. (a) No person may operate any unpowered lighter-than-air aircraft on or over the municipal airport within three hundred (300) feet of the centerline of any runway. (b) Every person operating a lighter-than-air aircraft landing or taking off from the municipal airport must have a VHF radio on board and announce the intended flight route using Unicom 122.7 MHZ. Supp. No. 8 223 § 3-18 DENTON CODE (c) Initial approach to any landing area designated for unpowered lighter-than-air aircraft shall be made at an altitude not exceeding eleven hundred (1100) feet MSL (fiVe hundred (500) feet AGL). Sec. 3-19. Dropping of objects. No person in any aircraf~ shall cause or permit to be thrown out, discharged or' dropped within the corporate limits of the city any object or thing, except loose water or loose sand ballast when absolutely essential to the safety of the occupants of the aircraft, and except as provided by section 3-86. (Cede 1966, § 3-15) Sec. 3-20. Airshows. The provisions of Section 3-5(8) relating to ',refreshments or any other commodities," section 3-14 (Aerobatic flying), section 3-18 (Lighter-than-air aircraft) and section 3-19 (Dropping of objects) to the extent such section relates to a prohibition against "skydiving," of this chapter shall not apply to airshows (a) produced by a promoter who has been approved by the city council or (b) sponsored or co-sponsored by city. (Ord. No. 98-061, § II, 3-3-98) Sec. 3-21. Minimum insurance for airshow. 'It shall be unlawful for any airshow to be conducted at the Denton Municipal Airport unless insurance coverage is maintained by the sponsor (Co-sponsors) or promoter in the following minimum amounts: (1) Airshow / airmeet liability. (2) Aircraft liability. Aircraft: a. Bodily injury liability, excluding pas- sengers: b. Passenger bodily injury liability: c. Property damage liability: d. Single limit bodily injury and property damage liability: Combined single limit bodily injury and property damage hability, $10,000,000.00 each occurrence. $ 250,000 each person $1,000,000 each occurrence $250,000 each person $250,000 each occurrence $1,000,000 each. occurrence Subsection (b) coverage for sponsor/promoter may be waived if sponsor/promoter provides copies of certificates of insurance from every flight participant in the airshow reflecting this coverage on every plane scheduled to participate in the airshow to the city manager or airport manager at least fourteen (14) days prior to the scheduled event. The policies of insurance covering the sponsor/promoter as required in this section shall name as additional insureds the city, its officers., agents, employees, city council, commissions, boards and committees. In addition, such policy or policies of insurance Shall be endorsed to Supp. No. 8 224 02~04~03 #4H AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: February 4, 2003 Economic Development Dave Hill, 349-8314 .~::..'~Y~ SUBJECT Consider adoption of an ordinance of the City of DeNon, Texas authorizing the City Manager to make application to the Texas Department of Housing and Community Affairs Emergency Shelter Grant Program and take all other actions necessary to obtain a grant under the Emergency Shelter Grant Program; and providing for an effective date. BACKGROUND On an annual basis, the Denton County Homeless Coalition membership reviews grant availability announcements. DCHC then works cooperatively to develop applications for those grants that appear to meet the needs of Denton County's homeless population. For the last two years, the City of DeNon has requested Emergency Shelter Grant funds from the Texas Department of Housing and Community Affairs to support the homeless prevention and assistance efforts of local agencies, in 2001-2002, the City was awarded $55,120. This year, the City received $112,000. These funds have been provided to HOPE, inc., the Salvation Army, DeNon County Friends of the Family and HelpNET in support of homeless services. The 2003-2004 grant application requests a total of $154,392. above agencies for the following activities: · · · · · These funds will be provided to the Transitional housing Emergency shelter Developmem and maimenance of a homeless managemem information system (HMIS) Childcare Counseling services OPTIONS · Approve application submission including administration of funding and agency contracts. · Deny approval of application submission. RECOMMENDATION The Denton County Homeless Coalition and the Community Development Division recommend approval. ESTIMATED PROJECT SCHEDULE Contract period is from September 1, 2003 through August 31, 2004. All funding will be expended by August 31, 2004. PRIOR ACTION/REVIEW N/A FISCAL INFORMATION Program administration is funded through the Community budget that includes CDBG, HOME and general fund dollars. available for administrative costs. Matching funds are provided by the participating agencies. ATTACHMENTS Attachment A - Program budget Attachment B - Ordinance Development Division administration Five percent of the grant award is also Prepared By: Barbara Ross Community Development Administrator Respectfully submitted: Linda Ratliff Director of Economic Development Emergency Shelter Grant Proposed Budget for 2003 - 2004 Application Total Funds by Description of Activities Line Item Subtotals Category Contract Funds: OPERATIONS ADMINISTRATION (list staff positions/amounts, not more than 10% of grant) HelpNET $ 6,700.00 HOPE, Inc $ 2,500.00 Salvation Army $ 6,000.00 $ 15,200.00 REHABILITATION - Renovation, major rehabilitation, or conversion of building(s) for use as emergency shelter for the homeless Friends of the Family $ 37,000.00 $ 37,000.00 ESSENTIAL SERVICES Friends of the Family $ 25,392.00 Salvation Army $ 20,000.00 Other: $ 45,392.00 MAINTENANCE,OPERATION, AND FURNISHINGS Maintenance (contractual janatorial service) Operation: HelpNET $ 3,300.00 Salvation Army $ 16,000.00 Furnishings (list items & projected cost) $ 19,300.00 HOMELESSNESS PREVENTION Direct Assistance: HOPE, Inc $ 37,500.00 $ 37,500.00 TOTAL $ 154,392.00 S:\Our Documcnts\Ordinancos\03\Emcr Shelter C/rant.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO MAKE APPLICATION TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNTY AFFAIRS EMERGENCY SHELTER GRANT PROGRAM AND TAKE ALL OTHER ACTIONS NECESSARY TO OBTAIN A GRANT UNDER THE EMERGENCY SHELTER GRANT PROGRAM; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Demon, Texas, is concerned with the provision of services to residems who are homeless and with providing decem housing, a suitable living environmem, and assisting homeless households to achieve self sufficiency; and WHEREAS, the City of Demon, Texas, has a developed and adopted a cominuum of care for homeless and potemially homeless households; and WHEREAS, the City of Demon, Texas, wishes to apply for and obtain a gram through the Emergency Shelter Grant Program, as authorized by the Stewart B. McKinney Homeless Assistance Act of 1987 as amended (42 U.S.C. Sec. 11371 et seq.), and as administered through the United States Department of Housing and Urban Development; and WHEREAS, the Texas Legislature has designated the Texas Departmem of Housing and Community Affairs as the administering agency for the Emergency Shelter Gram Program pursuant to Sec. 2306.094, Texas Government Code; and WHEREAS, the City of Demon, Texas, imends to sub-comract with local social service agencies to provide services through the emergency shelter gram program; and WHEREAS, the Texas Departmem of Housing and Community Affairs requires an application and appropriate certifications and the City Council deems it in the public imerest to authorize the City Manager to make application for this Grant; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Council of the City of Demon, Texas, authorizes the City Manager to sign and submit to the Texas Departmem of Housing and Community Affairs and all appropriate officials thereof, a gram application, together with all necessary certifications, gram agreements and other documents as well as appropriate resources for entitlement of funds under the Stewart B. McKinney Homeless Assistance Act of 1987, as amended and Emergency Shelter Gram Program pursuam to Sec. 2306.094 of the Texas Govemmem Code., and all other applicable laws, as necessary to obtain a grant under the Emergency Shelter Grant Program to provide services to homeless residents of Denton. That the City Manager is authorized to take all other actions necessary to obtain and administer this grant. S:\Our Documcnts\Ordinancos\03\Emcr Shelter C/rant.doc SECTION 2. That the Community Developmem Administrator is authorized, under the supervision of the City Manager, to handle all fiscal and administrative matters relating to the application and the administration of the Emergency Shelter Gram Program, if it is funded and all other matters connected therewith. SECTION 3. That the City Secretary is hereby authorized to furnish true, complete, and correct copies of this ordinance to all interested parties. 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: Page 2 of 2 02~04~03 #41 AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET February 04, 2003 Engineering Dave Hill, 349-8314 ~i'!;:~'i!i SUBJECT Consider adoption of an ordinance by the City of Denton, Texas abandoning and vacating its Sanitary Sewer Easement recorded in Volume 919, Page 96, Deed Records of Denton County, Texas and being located in Bellaire North, an addition to the City of Denton; and providing an effective date. BACKGROUND The current property owner, Shepherd Place Homes, Inc., has requested that the City abandon the above described sanitary sewer easement. This property has been replatted and is being developed for residential use. As part of the development, the developer has provided substitute sanitary sewer facilities that make the Easement unnecessary. OPTIONS 1. Approve the Ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff endorses the approval of the abandonment. PRIOR ACTION/REVIEW (Council Boards~ Commissions) Development Review Committee - January 8, 2003 FISCAL INFORMATION None ATTACHMENTS Location Map Ordinance Exhibits Prepared by: Tod J. Taylor Real Estate Specialist Respectfully submitted: Charles Fiedler, Director Engineering Department Sanitary Sewer Easement Location ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS ABANDONING AND VACATING ITS SANITARY SEWER EASEMENT RECORDED IN VOLUME 919, PAGE 96 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS AND BEING LOCATED IN BELLAIRE NORTH, AN ADDITION TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Shepherd Place Homes, Inc., has made a request to the City Council of the City of Denton, Texas to close and abandon a sanitary sewer easement containing approximately 0.441 acre of land and located in Bellaire North, an addition to the City of Denton, Texas, as more particularly described in that certain easement recorded in Volume 919, Page 96 of the Deed Records of the Denton County, Texas (the "Easement"); and WHEREAS, the City of Denton Engineering Department has reviewed the Easement and determined that it is excess easement and is not needed for future sanitary sewer purposes because the developer of Bellaire North has provided substitute sanitary sewer facilities that make the Easement unnecessary; and WHEREAS, the City Council hereby finds and determines that the Easement is not needed for sanitary sewer easement purposes and it is in the public interest to abandon the Easement and the City's interests therein to the underlying fee owner, Shepherd Place Homes, Inc. ("Owner"); NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION 1. The recitations and findings contained in the preamble of this ordinance are incorporated herein by reference. The Easement is hereby vacated and permanently abandoned with all of the City's right, title and interests being quit claimed to the Owner. A certified copy of this ordinance may be recorded in the Real Property Records of Denton County, Texas to evidence this abandonment and quit claim. SECTION 2. 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: Page 2 EASEMENT A E; A N D 0!'~¥ L,'I E"~'~; T CITY OF DENTON, DENTON CQL,i, NTY, TEXAS BEING ALL THAT CERTAIN 19,196 SQUARE FOOT TRACT OR PARCEL OF LAND SITUATED IN THE WILLIAM LLOYD SURVEY, ABSTRACT NO. 77.3, DENTON COUNTY, TEXAS BEING PART OF THAT CERTAIN TRACT OF LAND CONVEYED TO D.L. PORTERFIELD, TRUSTEE FROM ETHAL LEE BUSH BY DEED RECORDED IN VOLUME 677, PAGE 85 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS SAID 19.196 SQUARE FOOT TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: THENCE NORTH 89 OEO. 59 MIN. 44 SEC. WEST WITH THE SOUTH LINE OF SAID PORTERFIELB TRACT AND LLOYD SURVEY IN AUDRA LANE A DISTANCE OF 502.23 FEET TO THE POINT OF BEGINNINg; THENCE NORTH 89 DEG. 59 MIN. 44 SEC. WEST WITH THE SOUTH LINE OF SAID PORTERFIELD TRACT AND LOYB SURVEY, FOR A DISTANCE OF 20.02 FEET TO A POINT FOR CORNER; IHENCE NORTH 02 DEg. 50 MIN 54 SEC EAST A DISTANCE OF 6~4.97 FEET TO A POINT FOR CORNER; THENCE SOUTH 02 DEG. 25 MIN. 59 SEC. EAST ALONG SAID COMMON LINE A DISTANCE OF 20.07 FEET TO A POINT FOR COR~ER; THENCE NORTH 87 OEO. 50 MIN. 5~ SEC. WEST A DISTANCE OF 515.18 FEET TO A POINT for CORNER; CITY OF EXH BIT "B" EASEMENT ABANDONMENT DENTON, DENTON COUNTY, TEXAS 8.¸ 2'! Z m STREET ZON£D:: PD-64 "' '" "/ ..... r',,',-~,,l~" 02~04~03 #4,1 AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET February 04, 2003 Engineering Dave Hill, 349-8314 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas abandoning and vacating its Drainage Easement recorded under Denton County Clerk certificate no. 94-071419 in the Deed Records of Denton County, Texas and being located in Bellaire North, an addition to the City of Denton; and providing an effective date. BACKGROUND The current property owner, Shepherd Place Homes, Inc., has requested that the City abandon the above described drainage easement. This property has been replatted and is being developed for residential use. As part of the development, the developer has provided substitute drainage facilities that make the easement unnecessary. OPTIONS 1. Approve the Ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff endorses the approval of the abandonment. PRIOR ACTION/REVIEW (Council Boards~ Commissions) Development Review Committee - January 8, 2003 FISCAL INFORMATION None ATTACHMENTS Location Map Ordinance Exhibits Prepared by: Tod J. Taylor Real Estate Specialist Respectfully submitted: Charles Fiedler, Director Engineering Department Drainage Easement Location TERRY ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS ABANDONING AND VACATING ITS DRAINAGE EASEMENT RECORDED UNDER DENTON COUNTY CLERK CERTIFICATE NO. 94-071419 IN THE DEED RECORDS OF DENTON COUNTY, TEXAS AND BEING LOCATED IN BELLAIRE NORTH, AN ADDITION TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Shepherd Place Homes, Inc., has made a request to the City Council of the City of Denton, Texas to close and abandon a drainage easement containing approximately 0.060 acre of land and located in Bellaire North, an addition to the City of Denton, Texas, as more particularly described in that certain easement recorded under Denton County Clerk Certificate No. 94-071419 in the Deed Records of the Denton County, Texas (the "Easement"); and WHEREAS, the City of Denton Engineering Department has reviewed the Easement and determined that it is excess easement and is not needed for future drainage purposes because the developer of Bellaire North has provided substitute drainage facilities that make the easement unnecessary; and WHEREAS, the City Council hereby finds and determines that the Easement is not needed for drainage easement purposes and it is in the public interest to abandon the Easement and the City's interests therein to the underlying fee owner, Shepherd Place Homes, Inc. ("Owner"); NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION 1. The recitations and findings contained in the preamble of this ordinance are incorporated herein by reference. The Easement is hereby vacated and permanently abandoned with all of the City's right, title and interests being quit claimed to the Owner. A certified copy of this ordinance may be recorded in the Real Property Records of Denton County, Texas to evidence this abandonment and quit claim. SECTION 2. 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: Page 2 A B A N b 0 N M E N T EASEMENT ¢"'~ ..... " CITY OF DENTON, COUN'I'Y, TEXAS BEING ALL THAT CERTAIN 2,400 SQUARE FOOT TRACT OR PARCEL OF LAND SITUATED IN THE WILLIAM LLOYD SURVEY, ABSTRACT NO. 773, DENTON COUNTY, TEXAS BEING PART OF THAT CERTAIN TRACT OF LAND CONVEYED TO D.L. PORTERFIELD, TRUSTEE FROM ETHAL LEE BUSH BY DEED RECORDED IN VOLUME 677, PAGE 85 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS SAID 2,400 SQUARE FOOT TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A FOUND PK NAIL AT THE INTERSECTION OF THE CENTERLINE OF MOCKINGBIRD LANE AND AUDRA LANE, BEING THE OCCUPIED SOUTHEAST CORNER OF SAID PORTERFIELD TRACT AND THE SOUTHEAST CORNER OF SAID LLOYD SURVEY; THENCE NORTH 89 DEG. 59 MIN. 44 SEC. WEST WITH THE SOUTH LINE OF SAID PORTERFIELD TRACT AND LLOYD SURVEY IN AUDRA LANE A DISTANCE OF 6.38.24 FEET TO THE POINT OF BEGINNING; THENCE NORTH 89 DEG. 59 MIN. 44 SEC. WEST WITH THE SOUTH LINE OF SAID PORTERFIELD TRACT AND LOYD SURVEY, PASSING AT 27.00 FEET THE NORTHWEST CORNER OF A TRACT OF LAND CONVEYED TO CARL LAIRD AND WIFE, SYLVIA LAIRD BY DEED RECORDED IN VOLUME 1045, PAGE 419, DEED RECORDS, DENTON COUNTY, TEXAS, AND CONTINUING FOR A TOTAL DISTANCE OF 40.00 FEET TO A POINT FOR CORNER; THENCE NORTH O0 DEG. O0 MIN. 16 SEC EAST A DISTANCE OF 59.78 FEET TO A POINT FOR CORNER; THENCE SOUTH 89 DEG. 59 MIN. 44 SEC. EAST A DISTANCE OF 40.00 FEET TO A POINT FOR CORNER; THENCE SOUTH O0 DEG. O0 MIN. 16 SEC. WEST A DISTANCE OF 60.22 FEET TO THE POINT OF BEGINNING AND CONTAINING 2,400 S.F. OF LAND. 02~04~03 #4K AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: February 4, 2003 Engineering David Hill, 349-8314 ~.>'~ SUBJECT Consider adoption of an ordinance by the City o£ DeNon declaring a public necessity exists and finding that public welfare and convenience requires the taking and acquiring an approximate 0.811 acre tract or parcel of land for a Drainage Easemem and drainage facilities being a tract of land situated in the William Bryan Survey, Abstract to W. J. O. Mullins, as recorded under County Clerk's File No. 97-R0083577 of the Real Property Records of DeNon County, Texas; authorizing the City Manager or his designee to make an offer to purchase the property for just compensation and if such offer is refused, authorizing the City Attorney to institute the necessary proceedings in condemnation in order to acquire the property necessary for the public purpose of drainage facilities and installation thereof; and providing an effective date. BACKGROUND Staff has been negotiating for the past year to acquire the subject tract of land for the Ranch Estates Drainage project. The scope of the project emails creating an earthen channel from U.S. 380 down to Jim Christal Road. The project will also include the installation of box culverts under U.S. 380 on the northern boundary of the Mullins tract. This drainage improvemem project will improve storm water flow in and around the Ranch Estates subdivision and other properties north of U.S. 380. An offer letter and a copy of the appraisal have been forwarded to the property owner for consideration. A reply to neither the offer letter nor a follow-up letter has been received. Staff feels the property owner will not proceed to closing at a compensation amount equitable to both parties. OPTIONS 1. Approve the ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED PROJECT SCHEDULE Spring 2003 PRIOR ACTION/REVIEW None FISCAL INFORMATION Steve Fanning and Associates performed the appraisal for this easement tract. Based on this appraisal, The City of DeNon Real Estate Division forwarded an initial offer of $4,136.00 to the landowner. In accordance with Texas Property Code 21.0111, the appraisal has been made available to the landowner. ATTACHMENTS Location map Draft ordinance Exhibits Prepared By: Pamela England Real Estate Specialist Respectfully submitted: for Charles Fiedler Charles Fiedler, Director Engineering Department UNIVERSITY Ranch Estates Drainage Project ORDINANCE NO. AN ORDINANCE DECLARING THAT A PUBLIC NECESSITY EXISTS AND FINDING THAT PUBLIC WELFARE AND CONVENIENCE REQUIRES THE TAKING AND ACQUIRING OF A DRAINAGE EASEMENT CONTAINING APPROXIMATELY 0.881 ACRE, SUCH EASEMENT BEING oUT OF THAT CERTAIN REAL PROPERTY CONVEYED TO W.J.O. MULLINS BY DEED RECORDED IN DENTON COUNTY CLERK'S FILE NUMBER 97-R0083577 AND BEING SITUATED IN THE WTLL~ BRYAN SURVEY, ABSTRACT NO. 148, IN DENTON COUNTY, TEXAS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO MAKE AN OFFER TO PURCHASE THE PROPERTY FOR JUST COMPENSATION AND IF SUCH OFFER IS REFUSED, AUTHORIZING THE CITY ATTORNEY TO INSTITUTE THE NECESSARY PROCEEDINGS IN CONDEMNATION IN ORDER TO ACQUIRE THE EASEMENT; DECLARING AN EFFECTIVE DATE. WHEREAS, it is hereby determined that a public necessity exists and that public welfare and convenience hereby require the acquisition of a permanent drainage easement for drainage purposes containing approximately 0.088t acre of land as more particularly described in Exhibit "A" and depicted on Exhibit "B", both of which are attached hereto and made a part hereof by reference (the "Easement" or "Easement Property"); and WHEREAS, the Easement Property is believed to be owned by W.J.O. Mulling ("Owner"); 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. Public necessity exists and public welfare and convenience require the acquisition by the City of Denton, Texas of the Easement for drainage purposes and the Temporary Construction Easement for temporary construction purposes. The City Manager, or his designee, is hereby authorized and directed to make an offer for the Easement in the mount of $4,136.00 to the Owner of the Easement Property, which amount is based on an independent appraisal prepared at the City's direction (the "Offer"). The City Council finds that the Offer represents just compensation due the Owner for the Easement said Offer being fair market value of the Easement and severance damages, if any, resulting from the City's acquisition of the Easement. SECTION 3. In the event the Offer is refused by the Owner, the City Attorney or his designee is hereby authorized and directed to file the necessary condemnation proceedings or suit and take whatever action that may be necessary against the Owner and any other parties having an interest in the Easement Property to acquire the Easement in the name of the City of Denton, Texas for the purposes set forth above. SECTION 4. If it should be subsequently determined that additional parties other than those named herein have an interest in the Easement Property, then in that event, the City Attorney or his designee is authorized and directed to join said parties as Defendants in said condemnation. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Page 2 ,, .. Exhibit A 0.811 ACRE DtLAINAGE EASEMENT WILLIAM BRYAN SURVEY, ABSTRACT NO. CITY OF DENTON DENTON COUNTY, TEXAS t48 BEING a tract of land situated in the William Bryan Sttrvcy, Abstract No. 148, Denton County, Texas, and being part cfa tract of land as described by dcod to Bt. J. O. Mullins, as recorded under County Clerk's File No. 97-R0083577 of the Real property Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a point in the south line ofU. S. Highway No. 380, sarlle point bears Noah 88 deg[¢e$ 23 nlinutes 45 secnl~dS West, a distance of 165.93 feet from thc northeast comer of said Mullins tract; THENCE South 00 degrees I 0 minutes 19 seconds West, over anql across said Mullins tract, a distance of 503.75 feet to a point in the south line of said Mullirls tract, same being in the,north Iil]e of~ tract of land as described by deed to A. N. Bradford as recorded in Volume 329, Page 496 of the peed Records of Denton County, Tex,s; THENCE North 89 degrees 50 mjl~utes O0 s~conds West, with the sOuth line of said Mullins tract and thc noah line ofsaid Bradford tract a distance of 70.00 feet to a point for comer; THENCE North 00 degrees 10 minutes 19 seconds E~t, over and across said MulIins tract, a distance of 505.51 feet to a point for corner in the south tine of said U. S. Highway No 380; THENCE South 88 degrees 23 minutes 45 seconds East, with the south line of said U. S. Highway No. 380, a distance of 70.02 feet to the POINT OF BEGINNING and containing 0.811 of an acre of land more or less. Exhibif B 70.02' SC.M~ 1 fnch= 100 it_ Line 0.811 ACRE N89'50'00'~/ 70.00' A. N. Erod£ord- ¥ol. $29, Pg. 496 NOTE: TI-[ [',',',',',',',',',~tlSIT HEEEON IS DONE tN CON~JNCTION ~'l~ ~E C~MI~T SU~U~ BY ~ ~. G.F. ~0. 2001 ~ 129316--~. D~NAGE E~EMENT E~IT O. 811 · AC~ ~.L~ BRY~ SUR~ ~ST~CT NO. 148 C~ OE DENTON DE~ON COU~ TE~ 5L2' t i I~' I#IRF I I ~ II~ ~ ~ I I I Diane ~t~son - vol. ~aa. Pg. $29 Arthur Surveying Co., Inc. 9~r2-221-94J9 F~x 972-221-4675 220 Elm Street, Suite 200 P.O. Box 54 Lew~sville. rexes 75057 1/18/2001 C~CKEt) 8~': KS.(:. NO.: 210g?! 02~04~03 #4L AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Jim Coulter 349-7194 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual contract for the purchase of water treatment chemicals; providing for the expenditure of funds therefore; and providing an effective date (Bid 2914-Water Treatment Chemicals awarded to the lowest responsible bidder in the total estimated amount of $706,386). BID INFORMATION This bid is for the annual contract to supply water treatment chemicals for the water production and wastewater treatment process. The chemicals are delivered in bulk quantities to onsite storage facilities. RECOMMENDATION We recommend this bid be awarded to the lowest responsible bidder for each item as listed below: Item Description Price Vendor 1 LIQUID CHLORINE, NSF 60 CERTIFIED 0.178/LB HARCROS 2 LIQUID CHLORINE, NSF 60 CERTIFIED 0.16877/LB ALTIVIA CHLORINE 150# CYLINDER SOUTHWEST 3 0.42/LB NSF 60 CERTIFIED CHEMICAL 4 LIQUID OXYGEN NO BID 5 LIQUID FERRIC SULFATE 0.0448/LB F1NI NSF 60 CERTIFIED ENTERPRISES 6 SULPHUR DIOXIDE* 0.22125/LB DPC 7 FLUROSILICIC ACID, 0.07/LB HARCROS NSF 60 CERTIFIED 8 50% CAUSTIC, 0.128/LB ALTIVIA NSF 60 CERTIFIED 9 POTASSIUM PERMANGANATE, NSF 60 1.299/LB CARUS CERTIFIED SOUTHWEST 10 ANHYDROUS, NSF 60 CERTIFIED 0.3595/LB CHEMICAL NALCO 11 CATIONIC POLYMER, NSF 60 CERTIFIED 0.358/LB 1NC. *Sulfur Dioxide does not require a NSF 60 Certification Agenda Information Sheet February 4, 2003 Page 2 RECOMMENDATION (CONTINUED) The price offered by American International Chemicals for Item 9 did not meet bid specifications therefore, the contract was awarded to the next lowest bidder, Carus Chemical. PRINCIPAL PLACE OF BUSINESS: DPC Harcros Cleburn, TX Dallas, TX Southwest Chemical McAlester, OK FINI Enterprises Altivia Carus Nalco Parsippany, NJ Houston, TX Peru, IL Naperville, IL ESTIMATED SCHEDULE OF PROJECT: This is an annual contract with prices, terms, and conditions remaining in effect through March 5, 2004. Delivery of individual chemical varies from 3 days to 2 weeks and will be ordered as needed. FISCAL INFORMATION: Funding for these water treatment chemicals will come from account 630100.6334. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2914 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF WATER TREATMENT CHEMICALS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2914-WATER TREATMENT CHEMICALS AWARDED TO THE LOWEST RESPONSIBLE BIDDER IN THE TOTAL ESTIMATED AMOUNT OF $706,386). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 I. That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM VENDOR AMOUNT 2914 1,7 Harcros Chemicals, Inc. Exhibit "A" 2914 2,8 Altivia Exhibit "A" 2914 3,10 Southwest Chemical Services, Inc. Exhibit "A" 2914 5 FINI Enterprises, Inc. Exhibit "A" 2914 6 DPC Exhibit "A" 2914 9 Cams Chemical Co. Exhibit "A" 2914 11 Nalco, Inc. Exhibit "A" SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid Invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 3-ORD-Bid 2914 Exhibit A Item Description Price Vendor 1 LIQUID CHLORINE, NSF 60 CERTIFIED 0.178/LB HARCROS 2 LIQUID CHLORINE, NSF 60 CERTIFIED 0.16877/LB ALTIVlA CHLORINE 150# CYLINDER SOUTHWEST 3 0.42/LB NSF 60 CERTIFIED CHEMICAL 4 LIQUID OXYGEN NO BID LIQUID FERRIC SULFATE FINI 5 0.0448/LB NSF 60 CERTIFIED ENTERPRISES 6 SULPHUR DIOXIDE* 0.22125/LB DPC 7 FLUROSILICIC ACID, 0.07/LB HARCROS NSF 60 CERTIFIED 8 50% CAUSTIC, 0.128/LB ALTIVIA NSF 60 CERTIFIED 9 POTASSIUM PERMANGANATE, NSF 60 1.299/LB CARUS CERTIFIED SOUTHWEST 10 ANHYDROUS, NSF 60 CERTIFIED 0.3595/LB CHEMICAL 11 CATIONIC POLYMER, NSF 60 0.358/LB NALCO CERTIFIED INC. 02~04~03 #4M AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: February 4, 2003 Materials Management Questions concerning this acquisition may be directed to Jim Coulter 349-7194 ACM: Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of a chain link fence at the Water Reclamation Plant; providing for the expenditure of funds therefore; and providing an effective date (Bid 2934-Chain Link Fence at the Water Reclamation Plant awarded to Hurricane Fence Company in the amount of $64,785.75). BID INFORMATION As a result of "September 11", Water Utilities are required by federal regulations to conduct a "Vulnerability Assessment" of Water Treatment Plants and Wastewater Treatment Plants. Security fencing will be an issue during the assessment. There is also a housing development north of the Water Reclamation Plant where children are entering the property and playing along the creek area. This poses a serious safety concern. In order to address these issues, the city plans to enclose the Water Treatment Plant property with security fencing. This bid is for fencing that completely encompasses the northern perimeter. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its January 21, 2003 meeting. RECOMMENDATION We recommend award of this bid to Hurricane Fence Company in the amount of $64,785.75. PRINCIPAL PLACE OF BUSINESS Hurricane Fence Company Denton, TX ESTIMATED SCHEDULE OF PROJECT Construction of the fence will begin after Council approval. Agenda Information sheet February 4, 2003 Page 2 FISCAL INFORMATION This project will be funded from bond fund account 64001300.1360.40100. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2934 Z ,'n n U ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF A CHAIN LINK FENCE AT THE WATER RECLAMATION PLANT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2934-CHAIN LINK FENCE AT THE WATER RECLAMATION PLANT AWARDED TO HURRICANE FENCE COMPANY IN THE AMOUNT OF $64,785.75). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT Hurricane Fence Company 2934 $64,785.75 SECTION 2. That the acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. That upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. 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: 3-ORD- Bid 2934 02~04~03 #4N AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Alex Pettit 349-8595 SUBJECT Consider adoption of an Ordinance awarding a contract for the lease of desktop PCs, notebook PCs, software, peripherals, and services as awarded by the State of Texas Building and Procurement Commission Department of Information Resources (DIR); providing for the expenditure of funds therefore; and providing an effective date (File 2954-Dell Master Lease awarded to Dell Marketing, L.P. in the amount of $176,153.95 per 6 months for a total of $1,056,923.70 including 36 months lease financing). LEASE INFORMATION On March 21, 2000, Council approved a master lease for a term of 36 months for 450 PCs, 50 notebooks, software, and peripherals. Access to the master lease was through the State of Texas General Services Commission, Department of Information Resources Cooperative Purchasing Agreement. That lease was entered into with the understanding that the PCs, etc. would be returned to the supplier and new updated equipment would be ordered. This new proposed master lease is for a term of 36 months for 525 desktop PCs, 80 notebook PCs, software, peripherals, 15 flat screen monitors, and services which replaces the original master lease and one addendum. As additional PCs are added to this new lease, authorization will be requested from Council by change order to the master lease agreement. Access to this master lease is through the State of Texas Building and Procurement Commission Department of Information Resources Cooperative Purchasing Agreement. The lease was negotiated, and the purchase prices have been determined by the Department of Information Resources and meet all requirements of the State Procurement Laws. Dell Marketing, L.P. is the selected supplier of desktop and notebook lease services for the State of Texas. Other area cities such as Richardson and Arlington have taken advantage of the same State of Texas master-leasing program. The purchase price offered by Dell Computers is less than current QISV catalogue prices. This master lease agreement is entered into between Dell Marketing L.P. and the State of Texas acting by and through the Department of Information Resources (DIR) in behalf of state agencies, as defined in Section 2054.003 and Local Governments as defined in section 791.003, Government Code and meets all requirements of the State competitive bidding laws. Agenda Information Sheet February 4, 2003 Page 2 RECOMMENDATION We recommend the award of File 2954-Dell Master Lease to Dell Marketing, L.P. in the amount of $176,153.95 per 6 months for a total of $1,056,923.70 including 36 months lease financing). PRINCIPAL PLACE OF BUSINESS Dell Marketing, L.P. Round Rock, Texas ESTIMATED SCHEDULE OF PROJECT The desktop PCs, notebook PCs, software and peripherals, 15 fiat screen monitors and services will be delivered the last week of March 2003. FISCAL INFORMATION This lease will be funded from Technology Services operating account 830500.7802. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Lease rate quotation from Dell Government Leasing and Finance 1-AlS-File 2954 Attachment 1 DELL GOVERNMENT LEA$]:NG AND F]:NANCE Lease Proposal January 8, 2003 Lease quotation number: Denton, City of Dell Government Leasing and Finance specializes in providing the finest Technology Lease products and services to the Public Sector. We have designed a customized financial solution for you and are pleased to have this opportunity to present this proposal for the transaction described below: Lessee: Contract: Lease Rates: Denton, City of MLA #02000390 between Dell Marketing, LP and Texas DTR Lease Rates are proposed for the referenced quotations and amounts only. Changes in equipment pricing or configurations may invalidate this document. This proposal and rates quoted are valid for 30 days from the above date. periodic Dell Quote Financed ~ease Lease Number EquiPment DescriPtion Quanti~ Hardware Cost Amount Factor PaYment 99163750 Dell Latitude C640 1 $1,934.00 $1,934.00 0.172342 $ 333.31 Personal Property Tax 0.00846 $ 17.11 Sofccost Redelivery Option 1 $4.78 $4.78 0.18612 $ 0.89 Data Transfer, De-install, install - 1 Sofccost gig data 1 $54.00 $54.00 0.18612 $ 10.05 F-disk, Pack & Ship option staging Sofccost area 1 $30.00 $30.00 0.18612 $ 5.58 TOTA~ pER U N !? ~ 2~022;78 366;95 99164824 Dell Optiplex GX260T 1 $1,438.00 $1,438.00 0.172342 $ 247.83 Personal Property Tax 0.00846 $ 12.92 Sofccost Redelivery Option 1 $4.78 $4.78 0.18612 $ 0.89 Data Transfer, De-install, install - 1 Sofccost gig data 1 $54.00 $54.00 0.18612 $ 10.05 F-disk, Pack & Ship option staging Sofccost area 1 $30.00 $30.00 0.18612 $ 5.58 ~OTAL PER U N $ ~526;~8 2 ?~;2 99171272 Dell Ultrasharp 1702FP Monitor 1 $454.00 $454.00 0.172342 $ 78.24 Personal Property Tax 0.00846 $ 3.84 TOTAE PER U N IT $454;00 $82;08 End of Lease Options: FAIR MARKET VALUE PURCHASE OPTION Lessee has the following options at the end of the contracted lease term: 1.) Return Equipment to Lessor at Lessee's expense. 2.) Continue to lease on a month to month basis or renew the lease for a fixed renewal term. 3.) Purchase the equipment for its then Fair Market Value. One Dell Way, RR8, Round Rock, TX 78682 DELL GOVERNMENT LEASING AND FINANCE Lease Proposal Summary of Terms and Conditions Net Lease Provisions: The lease shall be a net lease transaction providing that the lessee shall bear all expenses associated with the equipment, including those relating to maintenance, operation and third party claims. Vendor/manufacturer guarantees and warranties will be passed on to Lessee. Note: With the exception of Conditional Sale Agreements, Lessee will be responsible for payment or reimbursement of any Personal Property Taxes invoiced to the Lessor against the leased equipment. Such amounts may be paid annually in the form of a liquidated Property Tax Fee or pro-rated and added to the rental amount(s) quoted above. If your organization is otherwise exempt from such taxation, please contact your Lease Representative for clarification. Insurance: Lessee shall provide Lessor written confirmation of insurance coverage acceptable to Lessor, including: All-risk Physical Damage, Bodily Tnjury & Property Damage and an endorsement that names Lessor as an additionally insured and loss payee under all liability and property coverage. Lessee may opt, subject to prior written approval of Lessor, to self-insure the Equipment under the same risk parameters detailed above. Appropriations: For State Governments, Local Governments, and Political Subdivisions thereof, the resulting lease will contain a clause subjecting the lease to continued appropriations of necessary funds. The Lessee will covenant that it will do all things legally within its power to obtain and maintain funds from which rental payments may be made and will not give priority or parity in the application of funds for functionally similar equipment during the term of any resulting lease. Documentation: Duly executed Lease or Master Lease Schedule and other documents including, but not limited to Certificates of Acceptance, Opinions of Counsel, Tnsurance Certificates, Essential Use Statements and UCC Financing Statements that may be applicable and are reasonably requested by Lessor. Approvals: Credit approval is conditioned upon the Lessee's compliance of all existing lease and loan agreements. Final credit approval is subject to Lessor credit committee review and reasonable expectations of continued appropriations for the equipment quoted. Lessee may be asked to provide Financial Statements and other supportinq documentation as necessary for such review. Thank you for the opportunity to provide this proposal. Should you have any questions or concerns, please do not hesitate to contact us by phone or email. We look forward to filling all of your financial needs. Representative: Phone: Fax: Emaih Hissy Token 866-363-3355 69096 800-391-3355 missy_totten@dell.com One Dell Way, RR8, Round Rock, TX 78682 ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE LEASE OF DESKTOP PCS, NOTEBOOK PCS, SOFTWARE, PERIPHERALS, AND SERVICES AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION DEPARTMENT OF INFORMATION RESOURCES (DIR); PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 2954-DELL MASTER LEASE AWARDED TO DELL MARKETING, L.P. IN THE AMOUNT OF $176,153.95 PER 6 MONTHS FOR A TOTAL OF $1,056,923.70). WHEREAS, pursuant to Resolution 92-019, the State Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures 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 Building and Procurement Commission 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 I. That the numbered items in the following file number 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 approved: FILE NUMBER VENDOR AMOUNT 2954 Dell Marketing L.P. $1,056,923.70 SECTION II. That by the acceptance and approval of the above numbered items set forth in File 2954, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission 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 Building and Procurement Commission, and the purchase orders issued by the City. SECTION lll. 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 Building and Procurement Commission, 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, speci- fications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION IV. That by the acceptance and approval of the above numbered items set forth in File 2954, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved file or pursuant to a written contract made pursuant thereto as authorized herein. SECTION V. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this 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- File 2954 Agreement Number: 02000390 MASTER LEASE AGREEMENT This Master Lease Agreement, dated and effective as of August 14, 2002, is entered into between Dell Marketing, LP, with its principal offices at One Dell Way, Round Rock, Texas 78682 (the "Lessor") and the State of Texas (the "Lessee"), acting by and through the Department of Information Resources ("DIR") with its principal office at 300 West 15th Street, Suite 1300, Austin, Texas 78701, TERMS AND CONDITIONS 1. Definitions. Asset(s). All of the personal property, including hardware, software or licensed products, services, and/or maintenance listed on any Schedule. When Asset(s) refers to Sol,are licensed to Lessee it shall be understood that said sof~vare shall continue to be owned by licensor as set forth in the applicable software license agreement. Commencement Date. The date(s) Lessee's obligation to pay Rent begins, which will be the delivery date for each Asset under each schedule. Initial Schedule Term. The period initially agreed to constitute the lease period as set forth in the Schedule. Schedule Term. For each Schedule shall include the Initial Schedule Term and any Renewal Schedule Terms. Renewal Schedule Term. Any period subsequent to the Initial Schedule Term. Rent. The payment by Lessee to Lessor of money for the lease of the Asset(s) covered by the Schedule. Schedule. The document entitled "True Lease Schedule" specifying the Asset(s), Rent payments, casualty values, Lessor's costs and other information. Lessee. Any Texas state agency and local government as defined in Section 2054.003, Texas Government Code (including institutions of higher education as defined in Texas Education Code, Section 61.003), and those state agencies purchasing from a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code. 2. Schedules. Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, subject to the terms and conditions of this Master Lease Agreement, the Asset(s) described in each Schedule. Each Schedule constitutes a separately assignable agreement between the parties executing each Schedule and incorporates in full the terms and conditions of this Master Lease Agreement. Unless DIR leases Asset(s) for its own use, DIR is not a party to the Schedules executed under this Master Lease Agreement and is not responsible for Rents, payments or other obligations under such Schedule(s). 3. Term of Master Lease Agreement and Schedules. (a) The term of this Master Lease Agreement commences on the execution date hereof and continues until (I) the obligations of Lessee under every Schedule are fully discharged and (II) either party provides thirty (30) days prior written notice of termination. DIR / Dell Marketing L.P. Master Lease Agreement 1 Agreement Number: 02000390 (b) The Initial Schedule Term for each Schedule shall be as set forth thereon. Until either party provides the other with prior written notice of termination, Renewal Schedule Terms of each Schedule shall extend automatically, at the Rent last in effect, for successive three-month terms beyond the expiration of the Initial Schedule Term. All such terminations are effective only (I) following written notice received not less than ninety (90) days prior to the end of the Schedule Term, (ID on the last day of the Initial Schedule Term or Renewal Schedule Term then in effect and (m) with respect to not less than all Asset(s) under a Schedule. Notice of Termination by Lessee may not be revoked without Lessor's consent. 4. Administration of Master Lease. (a) For requests involving the leasing of Dell Marketing, LP equipment, each potential Lessee will submit its request directly to the Lessor. Lessor shall use the then current contract pricing offered within the Dell Marketing, LP and DIR purchasing contract. Lessor shall submit the lease proposal and all other documents directly to the potential Lessee. (b) When incident to a lease of Dell branded Asset(s), and solely at the discretion of Lessor, Asset(s) may also be leased from Lessor that is not manufactured by the parent or an affiliate of Lessor. In such case, DIR would obtain the price quotation from the manufacturer or reseller, add DIR's administrative fee to the quotation, and submit the quotation to the Lessor for calculation of the Lease Rate Factor, which shall include DIR's administrative fee. DIR will inform Lessor of the administrative percentage fee. Lessor shall prepare the Schedule(s), provide them to DIR and DIR will submit the Schedule(s) to the potential Lessee. With respect to non-Lessor affiliated Asset(s), DIR will arrange for the manufacturer to deliver the Asset(s) to the Lessee and for the manufacturer or reseller to bill Lessor for the cost of the Asset(s), excluding DIR's administrative fee. In connection with such a purchase, DIR will endeavor to ensure that Lessor is given the benefit of pricing, payment or other favorable terms that would be provided to DIR by the manufacturer or reseller if DIR were to acquire the Asset(s) directly. Lessor shall be responsible for the payment to the manufacturer or reseller and for the recovery of that amount, and the administrative fee for DIR, from Lessee under the applicable Schedule(s). Within five (5) days of execution of a Schedule between Lessor and Lessee, Lessor shall provide DIRa copy of the executed Schedule. DIR shall provide an invoice to Lessor for the DIR administrative fee percentage of the full amount of Rent due under the Schedule. Immediately after the Lessee receives the Asset(s) and Lessor books the lease, Lessor shall pay DIR the administrative fee. The parties agree such payment shall generally be made within thirty days of the date DIR's invoice is received by Lessor. (c) Lessee will issue a purchase order in the amount indicated on the Schedule(s) to Lessor for the Asset(s). Any pre-printed terms and conditions on the purchase order submitted by the Lessee shall not be effective with respect to the lease of Assets hereunder. Rather, the terms and conditions of this Master Lease Agreement and applicable Schedule(s) shall control in all respects. (d) As Rent for the Asset(s), Lessee shall pay Lessor the amounts on the due dates set forth in the Schedule. (e) Each Schedule is a net lease and except as specifically provided herein, Lessee shall be responsible for all costs and expenses arising in correction with the Schedule or Asset(s). Lessee acknowledges and agrees, except as expressly provided in Section 18 hereof, that its obligation to pay Rent and other sums payable hereunder, and the rights of Lessor and Lessor's assignees, shall be absolute and unconditional in all events, and shall not be subject to any abatement, reduction set-off, defense, counterclaim or recoupment due or alleged to be due by reason of any past, present or future claims Lessee may have against Lessor, Lessor's assigns, the manufacturer, vendor, or maintainer of the Asset(s), or any person for any reason whatsoever. (f) On all amounts not paid by Lessee when due, late charges shall accrue at the rate of twelve percent (12%) per annum (or the maximum rate allowable by law, if less) from the due dates thereof until received by Lessor. DIR / Dell Marketing L.P. Master Lease Agreement Agreement Number: 02000390 Late charges and attorney's fees necessary to recover Rent and other amounts owed by Lessee hereunder are considered an integral part of this Master Lease Agreement. Payments under the Agreement are subject to the provisions of the Texas Prompt Payment Act. (g) If Lessor is contacted by, or contacts, a potential Lessee, as defined in Section One, Definitions, concerning leasing Asset(s), Lessor shall make a good faith effort to make the entity aware of the ability to lease Asset(s) through this Master Lease Agreement. Provided, however, nothing herein shall require Lessor to use this Agreement exclusively with Lessees. Further, this Agreement shall not constitute a requirements contract and Lessor shall not be obligated to enter into any Schedule for the lease of Asset(s) with any Lessee. 5. Selectionl lnspectionl Acceptance. (a) The Asset(s) are of a size, design, capacity and manufacture selected by Lessee in its sole judgment and not in reliance on the advice or representations of Lessor. No representation by the manufacturer or vendor shall in any way affect Lessee's duty to pay Rent and perform its other obligations hereunder. Each Schedule is intended to be a "finance lease" as defined in Article 2A of the Uniform Commercial Code. Lessor has acquired or will acquire the Asset(s) in connection with this Lease. Lessee acknowledges either (a) that Lessee has reviewed and approved any written purchase order, supply contract or purchase agreement ("Supply Contract"), covering the Asset(s) purchased from the manufacturer or vendor thereof ("Vendor") for lease to Lessee; or (b) that Lessor has informed or advised Lessee, in writing, either previously or by this Lease of the following: (I) the identity of the Vendor; (II) that the Lessee may have rights under the Supply Contract; and (Il/) that the Lessee may contact the Vendor for a description of such rights that Lessee may have under the Supply Contract. Lessor shall not be liable for damages for any reason, for any act or omission of the Vendor. Lessor agrees, to the extent they are assignable, to assign the Lessee, without recourse to Lessor, any warranties provided to Lessor with respect to the Asset(s). (b) Promptly upon delivery, Lessee will inspect the Asset(s), and, not later than 10 business days following the Commencement Date, Lessee will execute and deliver either (I) an Acceptance Certificate in the form of Exhibit A hereto for the Asset(s), or (1/) written notification of any defects in the Asset(s). If Lessee has not given notice within such time period, the Asset(s) shall be conclusively deemed accepted. 6. Warrantiesl Quiet Enjoyment and Disclaimerl Indemnity. (a) Lessor warrants that, provided Lessee is not in default, Lessor will not interfere with Lessee's quiet use and enjoyment of the Asset(s). Co) EXCEPT FOR THE PROVISIONS OF 6(a) ABOVE, WITH REGARD TO THE ASSET (S), LESSOR MAKES NO EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING WITHOUT LIMITATION: THOSE OF MERCHANTABILITY OR FITNESS FOR PURPOSE OR USE, OF CONDITION, PERFORMANCE, SUITABILITY OR DESIGN, OR CONFORMITY TO ANY LAW, RULE, REGULATION, AGREEMENT OR SPECIFICATION, OR OF INFRINGEMENT OF ANY PATENT, TRADE SECRET, TRADEMARK, COPYRIGHT OR OTHER INTANGIBLE PROPERTY RIGHT. Lessor shall have no liability to Lessee, nor any other party, nor shall Lessee abate payments, for any loss, claim or damage of any nature caused or alleged to be caused directly, indirectly, incidentally or consequentially by the Asset(s), any inadequacy thereof, deficiency or defect therein (whether known or knowable by Lessor), by any incident whatsoever arising in connection therewith, whether in strict liability or otherwise, or in any way related to or arising out of this Master Lease Agreement or any Schedule. (c) Without waiving the doctrines of sovereign immunity and immunity from suit, and to the extent allowed by the laws and Constitution of the State of Texas, Lessee assumes all risks and liabilities, whether or not DIR / Dell Marketing L.P. Master Lease Agreement Agreement Number: 02000390 covered by insurance, for loss or damage to any Asset(s) and for injury to or death of any person, or damage to any property, whether such injury or death be with respect to agents or employees of Lessee or of third parties, and whether such property damage be to Lessee's property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers or employees. 7. Installations~ Use~ Repair and Maintenance. (a) Lessee shall provide a place of installation, which conforms to the requirements of the manufacturer. (b) Subject to the terms hereof, Lessee shall be entitled to unlimited use of the Asset(s) except that in the case of sothvare, the Asset(s) are subject to the parties' rights under the applicable software license agreement. Lessee shall not use or permit the use of the Asset(s) for any purpose, which, according to the specifications of the Manufacturer, the Asset(s) are not, designed or reasonably suited. Lessee shall use the Asset(s) in a careful and proper manner and shall comply with all of the manufacturer's instructions, governmental rules, regulations, requirements and laws, and all insurance requirements, if any, with regard to the use, operation or maintenance of the Asset(s). (c) Lessee shall be solely responsible for the installation, maintenance and repair of the Asset(s). During the Schedule Term, Lessee shall (i) keep the Asset(s) in good repair, condition and working order; (ii) maintain in force a maintenance contract with the manufacturer or with another qualified service organization; and (iii) permit access to the Asset(s) for installation of engineering changes required to maintain the Asset(s) at the manufacturer's current engineering levels. 8. Ownershipl Inspectionl Relocationl Personal Property. (a) The Asset(s) shall at all times be and remain the sole and exclusive property of Lessor, subject to the parties rights under any applicable software license agreement. Lessee shall have no right, title or interest in the Asset(s) except a leasehold interest as provided for herein. (b) Lessor, its assigns or their agents shall be permitted free access at reasonable times to inspect the Asset(s). (c) Lessee shall at all times keep the Asset(s) within its exclusive possession and control. Upon Lessor's prior written consent, which shall not be unreasonably withheld, Lessee may move the Asset(s) to another location of Lessee within the continental United States, provided (i) Lessee is not in default on any Schedule, (ii) Lessee executes and causes to be filed at its expense such instruments as are necessary to preserve and perfect the interests of Lessor and its assigns in the Asset(s), (iii) Lessee pays all costs of, and provides adequate insurance during such movement and (iv) Lessee pays all costs otherwise associated with such relocation. Notwithstanding the foregoing, Lessee may move the Asset(s) to another location within Texas without notification to, or the consent of, Lessor. Provided, however, that not later than December 31 of each year, Lessee shall provide Lessor a written report detailing the total number of Asset(s) at each location of Lessee as of that date, and the complete address for each location. Lessor shall make all filings and returns for property taxes due with respect to the Asset(s), and Lessee agrees that it shall not make or file any property tax returns, including information returns, with respect to the Asset(s). (d) Lessee agrees that the Asset(s) shall be and remain personal property and shall not be so affixed to realty as to become a fixture or otherwise to lose its identity as the separate property of Lessor. Upon request, Lessee will enter into all agreements necessary to ensure that the Asset(s) remain the personal property of Lessor. DIR / Dell Marketing L.P. Master Lease Agreement 4 Agreement Number: 02000390 9. Liens. Lessee shall at its expense keep the Asset(s) free and clear of all levies, liens, and encumbrances, except those in favor of Lessor or its assigns. 10. Risk of Loss. (a) Commencing upon delivery and continuing throughout the Schedule Term, Lessee shall bear the entire risk of loss with respect to any Asset damage, destruction, loss, theft, or governmental taking, whether partial or complete, for any reason. No event of loss shall relieve Lessee of its obligation to pay Rent under any Schedule; (b) If any Asset is damaged, Lessee shall promptly notify Lessor and, at Lessee's expense, within 60 days of such damage, cause to be made such repairs as are necessary to return such item to its previous condition, reasonable wear and tear is excepted; (c) In the event any Asset is destroyed, damaged beyond repair, lost, stolen, or taken by governmental action for a stated period extending beyond the term of any Schedule (an "Event of Loss"), Lessee shall promptly notify Lessor and pay to Lessor, on the next Rent payment date following such Event of Loss, an amount equal to the Casualty Value for the Asset suffering the Event of Loss then in effect as set forth on the Schedule. After payment of such Casualty Value and all Rent and other amounts due and owing on and before such Rent payment date, Lessee's obligation to pay further Rent allocable to the Asset which suffered the Event of Loss shall cease. After receipt of such Casualty Value by Lessor or its assigns, Lessee shall be entitled to receive any insurance or other recovery received by Lessor or its assigns in connection with such Event of Loss, and the Asset(s) for which such Casualty Value was received shall be conveyed to Lessee AS IS, WHERE IS and free and clear of all liens and encumbrances created by or arising through Lessor, but otherwise WITHOUT FURTHER WARRANTY (EXPRESS OR IMPLIED) WHATSOEVER, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PURPOSE OR USE; and (d) In the event of a governmental taking of an Asset for an indefinite period or for a stated period, which does not extend beyond the Schedule Term, all obligations of the Lessee with respect to such Asset (including payment of Rent) shall continue. So long as Lessee is not in default hereunder, Lessor shall pay to Lessee all sums received by Lessor from the government by reason of such taking. 11. Insurance. Lessee at its expense shall maintain fire and extended coverage insurance against loss, theft, damage, or destruction of the Asset(s), in an amount not less than the Casualty Value of the Asset(s). Lessee shall further, at its expense, provide and maintain comprehensive public liability insurance in an amount of $1,000,000 per occurrence against claims for bodily injury, death and/or property damage arising out of the use, ownership, possession, operation or condition of the Asset(s), together with such other insurance as may be required by law which names Lessee as an insured and Lessor and its assign(s) as additional insured as their respective interest may appear. Such insurance shall contain a clause requiring the insurer to give Lessor at least one-month prior written notice of the cancellation or any alteration in the terms of such policy. Each policy of property damage insurance shall name Lessor and its assign(s) as loss payees and shall state that all claims there under shall be payable to such party(ies) irrespective of any breach of warranty or other act or omission of Lessee. Each insurance policy shall be with an insurance carrier licensed to provide the insurance required herein in the states where the Asset(s) are located. Lessee hereby appoints Lessor as Lessee's attorney-in-fact upon Lessee's failure to act promptly in any manner with regard to any claim, to make proof of loss and claim for insurance, to make adjustments with insurers, and to DIR / Dell Marketing L.P. Master Lease Agreement Agreement Number: 02000390 receive payment of and execute or endorse all documents, checks, and drafts in connection with payments made as a result of such insurance policies. Lessee will not make adjustments with insurers except with Lessor's written consent. Lessee shall furnish to Lessor, upon request, certificates of insurance or other evidence satisfactory to Lessor that such insurance coverage is in effect or, if Lessor consents, that Lessee is self-insured. Lessee's liability for loss under Section 10 shall not be diminished by any insurance payment less than the actual amount of the loss. Lessees that are defined as state agencies in accordance with Section 2054.003, Texas Government Code (including institutions of higher education as defined in Texas Education Code, Section 61.003) and those purchasing from a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code, may self- insure their obligations in this section. 12. Surrender of Asset(s). (a) On the last day of the Schedule Term, Lessee shall return the Asset(s) to Lessor in good repair, condition and working order, ordinary wear and tear alone excepted, at the location specified by Lessor, provided, however, such location shall be within the United States and no farther than 500 miles from the original shipment location. Lessee shall arrange and pay for de-installation and packing in accordance with the manufacturer's specifications and for the cost of transporting the Asset(s) by ground, within the United States, no more than 500 miles from the original shipment location, and for insured transportation, if applicable, such insurance coverage if applicable to be not less than the Asset(s) Casualty Value last in effect. Lessee shall, at its expense, cause each Asset to be repaired as necessary to conform to the foregoing remm conditions; Co) If, on the last day of the Schedule Term, Lessee shall fail to return to Lessor any Asset listed on the Schedule, Lessee shall be treated as a holdover tenant for all of the Asset(s) listed on the Schedule for a Renewal Schedule Term in accordance with Section 3Co) above and shall continue to pay Rent in the amount set forth in the Schedule for all Asset(s). This provision shall continue for periods beyond the first such renewal term. In no event may Lessee avoid the effect of this provision by returning less than all Asset(s) listed on any Schedule or by returning substitute assets unless Lessor, in its sole discretion, shall expressly agree in writing; and (c) This Section shall not derogate from Lessor's right, to be exercised in its sole discretion, to obtain return of all Asset(s) on the last day of any Schedule Term, or to declare an Event of Default for any failure of Lessee to so return the Asset(s). 13. Representations and Warranties of Lessee. Lessee represents and warrants for the benefit of Lessor and its assigns, and Lessee will provide an opinion of counsel to the effect that, as of the time of execution of the Master Lease Agreement and each Schedule between Lessor and Lessee: (a) Lessee is either a Texas state agency or Texas local governments defmed in Section 2054.003, Texas Government Code (including institutions of higher education as defined in Texas Education Code, Section 61.003) or a state agency purchasing from a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code; (b) Each Schedule executed by Lessee has been duly authorized, executed and delivered by Lessee and constitutes a valid, legal and binding agreement of Lessee, enforceable in accordance with its terms; (c) No approval, consent or withholding of objection is required from any federal or other governmental authority or instrumentality with respect to the entering into or performance by Lessee of any Schedule between Lessor and Lessee; DIR / Dell Marketing L.P. Master Lease Agreement 6 Agreement Number: 02000390 (d) The entering into and performance of any Schedule between Lessor and Lessee, the Master Lease Agreement or any Schedule will not violate any judgment, order, law or regulation applicable to Lessee or Result in any breach of, or constitute a default under, or result in the creation of any lien, charge, security interest or other encumbrance upon assets of the Lessee or on the Asset(s) leased under any Schedule between Lessor and Lessee pursuant to any instrument to which the Lessee is a party or by which it or its assets may be bound; (e) To the best of Lessee's knowledge and belief, there are no suits or proceedings pending or threatened against or affecting Lessee, which if determined adversely to Lessee will have a material adverse effect on the ability of Lessee to fulfill its obligations under the Master Lease Agreement or any Schedule between Lessor and Lessee; and (f) The use of the Asset(s) is essential to Lessee's proper, efficient and economic operation, and Lessee will sign and provide to Lessor upon execution of each Schedule between Lessor and Lessee hereto written certification to that effect. 14. Representation and Warranties of DIR. DIR represents and warrants for the benefit of Lessor and its assigns, and DIR will provide an opinion of counsel to the effect that, as of the time of execution of the Master Lease Agreement: (a) DIR is a State agency as defined in Section 2251.001, Texas Government Code; (b) This Master Lease Agreement has been duly authorized, executed and delivered by DIR and constitutes a valid, legal and binding agreement of DIR, enforceable in accordance with its terms; (c) No approval, consent or withholding of objection is required from any federal or other governmental authority or governmental authority or instrumentality with respect to the entering into or performance by DIR of this Master Lease Agreement; (d) The entering into and performance of the Master Lease Agreement does not violate any judgment, order, law or regulation applicable to DIR or result in any breach of, constitute a default under, or result in the creation of any lien, charge, security interest or other encumbrance upon assets of DIR or on the Asset(s) pursuant to any instrument to which DIR is a party or by which it or its assets may be bound; (e) To the best of DIR's knowledge and belief, there are no suits or proceedings pending or threatened against or affecting DIR, which if determined adversely to DIR will have a material adverse effect on the ability of DIR to fulfill its obligations under the Master Lease Agreement; (f) DIR is authorized to charge and collect the administrative fee set forth herein; (g) Lessor's payment of the administrative fee to DIP,. shall not constitute an illegal gratuity or otherwise violate Texas law; and (h) DIR is a government agency subject to the Texas Public Information Act. Lessor acknowledges that DIR will comply with the Public Information Act, and with all opinions of the Texas Attorney Generals' office concerning this Act. DIR / Dell Marketing L.P. Master Lease Agreement 7 Agreement Number: 02000390 15. Representations and Warranties of Lessor. (a) Lessor is an entity authorized and validly existing under the laws of its state of organization, is authorized to do business in Texas, and is not in default as to taxes owed to the State of Texas and any of its political subdivisions; (b) The Master Lease Agreement and each Schedule have been duly authorized, executed and delivered by Lessor and constitute valid, legal and binding agreements of Lessor, enforceable in accordance with their terms; (c) No approval, consent or withholding of objection is required from any federal or other governmental authority or instrumentality with respect to the entering into or performance by Lessor of this Master Lease Agreement or any Schedule; (d) The entering into and performance of the Master Lease Agreement or any Schedule will not violate any judgment, order, law or regulation applicable to Lessor or result in any breach of, or constitute a default under, or result in the creation of any lien, charge, security interest or other encumbrance upon the assets of the Lessor, including Asset(s) leased under the Master Lease Agreement and Schedules thereto, pursuant to any instrument to which the Lessor is a party or by which it or its assets may be bound; and (e) To the best of Lessor's knowledge and belief, there are no suits or proceedings pending or threatened against or affecting Lessor, which if determined adversely to Lessor will have a material adverse effect on the ability of Lessor to fulfill its obligations under the Master Lease Agreement or any Schedule. 16. Default and Remedies. (a) The occurrence of any of the following events shall constitute an event of default ("Event of Default") under a Schedule: (I) nonpayment by Lessee of Rent or any other sum payable by its due date; (1I) failure by Lessee to perform or observe any other term, covenant or condition of this Master Lease Agreement, any Schedule, or any applicable software license agreement, which is not cured within ten (10) days after notice thereof fi'om Lessor; (III) insolvency by Lessee; (IV) Lessee's filing of any proceedings commencing bankruptcy or the filing of any involuntary petition against Lessee or the appointment of any receiver not dismissed within sixty (60) days from the date of said filing or appointment; (V) subjection of a substantial part of Lessee's property or any part of the Asset(s) to any levy, seizure, assignment or sale for or by any creditor or governmental agency; (VI) any representation or warranty made by Lessee in this Master Lease Agreement, any Schedule or in any document furnished by Lessee to Lessor in connection therewith or with the acquisition or use of the Asset(s) shall be untrue in any material respect; or (VII) a termination of any applicable software license agreement. (b) Upon the occurrence of an Event of Default and at any time thereafter Lessor may, in its sole discretion, do any one or more of the following: (i) After giving fifteen (15) days prior written notice to Lessee of default, during which time Lessee shall have the opportunity to cure such default, terminate any or all Schedules executed by Lessor and the defaulting Lessee; (ii) Without waiving the doclrines of sovereign immunity and immunity from suit, and to the extent allowed by the laws and Constitution of the State of Texas, Lessor may proceed by appropriate court action to enforce the performance of the terms of the Schedule an/or recover damages, including all of Lessor's economic loss for the breach thereof; (iii) Whether or not the Schedule is terminated, upon notice to Lessee, take possession of the Asset(s) wherever located, without demand, liability, court order or other process of law, and for such purposes Lessee hereby authorizes Lessor, its assigns or the agents of either to enter upon the premises where such Asset(s) are located or cause Lessee, and Lessee hereby agrees, to return such Asset(s) to Lessor in accordance with the requirements of Section DIR / Dell Marketing L.P. Master Lease Agreement Agreement Number: 02000390 12 hereof; (iv) By notice to Lessee, and to the extent permitted by law, declare immediately due and payable and recover from Lessee, as liquidated damages and not as a penalty, the sum of (a) the present value of the Rent owed from the earlier of the date of payment by Lessee or the date Lessor obtains a judgment against Lessee until the end of the Schedule Term plus, if the Assets are not returned to or repossessed by Lessor, the present value of the estimated In-place fair market value of the Assets at the end of the Schedule Term as determined by Lessor, each discounted at a rate of four percent (4%) per annum; Co) all Rent and other amounts due and payable on or before the earlier of the date of payment by Lessee or the date Lessor obtains a judgment against Lessee; and (c) without waiving the doctrines of sovereign immunity and immunity from suit, and to the extent allowed by the laws and Constitution of the State of Texas, costs, fees (Including all attorneys' fees and court costs), expenses and (d) interest on (a) and (b) from the date of default at 1 ¥2% per month or portion thereof (or the highest rate allowable by law, if less) and, on (c) from the date Lessor incurs such fees, costs or expenses. (c) Upon return or repossession of the Asset(s), Lessor may, if it so decides in its sole discretion, upon notice to Lessee, use reasonable efforts to sell, re-lease or otherwise dispose of such Asset(s), in such manner and upon such terms as Lessor may determine in its sole discretion, so long as such manner and terms are commercially reasonable. Upon disposition of the Asset(s), Lessor shall credit the Net Proceeds (as de£med below) to the damages paid or payable by Lessee. Proceeds upon sale of the Asset(s) shall be the sale price paid to Lessor less the Casualty Value in effect as of the date of default. Proceeds upon a re-lease of the Asset(s) shall be all rents to be received for a term not to exceed the remaining Schedule Term, discounted to present value as of the commencement date of the re-lease at the Lessor's current applicable debt rate. Without waiving the doctrines of sovereign immunity and immunity from suit, and to the extent allowed by the laws and Constitution of the State of Texas, "Net Proceeds" shall be the Proceeds of sale or re-lease as determined above, less all costs and expenses incurred by Lessor in the recovery, storage and repair of the Asset(s), in the remarketing or disposition thereof, or otherwise as a result of Lessee's default, including any court costs and attorney's fees and interest on the foregoing at eighteen percent (18%) per annum or the highest rate allowable by law, if less, calculated from the dates such costs and expenses were incurred until received bY Lessor. Lessee shall remain liable for the amount by which all sums, including liquidated damages, due from Lessee exceeds the Net Proceeds. Net Proceeds in excess thereof are the property of and shall be retained by Lessor. (d) No termination, repossession or other act by Lessor in the exercise of its rights and remedies upon an Event or Default shall relieve Lessee from any of its obligations hereunder. No remedy referred to in this Section is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available to Lessor at law or in equity. (e) Neither DIR nor non-defaulting Lessees shall be deemed in default under the Master Lease Agreement or Schedules because of the default of a particular Lessee. Lessor's remedies under this Section 16 shall not extend to DIR and non-defaulting Lessees. 17. Effect of Waiverl Substitute Performance by Lessor. (a) No delay or omission to exercise any right or remedy accruing to Lessor upon any breach or default of Lessee shall impair any such right or remedy or be construed to be a waiver of any such breach or default, nor shall any waiver of any single breach or default be construed to waive or impair Lessor's rights and Remedies with respect to any breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval on the part of Lessor of any breach or Default under this Schedule, or any provision or condition hereof, must be in writing and shall be effective only to the extent such writing specifically sets forth. DIR / Dell Marketing L.P. Master Lease Agreement 9 Agreement Number: 02000390 (b) Should Lessee fail to make any payment or do any act as herein provided, Lessor shall have the right, but not the obligation, and without releasing Lessee from any obligation hereunder, to make or do the same. All sums so incurred or expended by Lessor shall be immediately due and payable by Lessee and shall bear interest at eighteen percent (18%) per annum or the highest rate allowable by law, if less, calculated from the date incurred until received by Lessor. 18. Assignment by Lessor; Assignment or Sublease by Lessee. (a) Lessor may (i) assign all or a portion of Lessor's right, title and interest in this Master Lease Agreement and/or any Schedule; (ii) grant a security interest in the right, title and interest of Lessor in the M~ster Lease Agreement, any Schedule and/or any Asset(s); and/or (iii) sell or transfer its title and interest as owner of the Asset(s) and/or as Lessor under any Schedule; and DIR and each Lessee leasing Asset(s) under the Master Lease Agreement understand and agree that Lessor's assigns may each do the same (hereunder collectively "Assignment"). All such Assignments shall be subject to each Lessee's rights under the Schedule(s) executed between it and Lessor and to DIR's rights under the Master Lease Agreement. Each Lessee leasing Asset(s) through Schedules under this Master Lease Agreement and DIR hereby consent to such Assignments and agree to execute and deliver promptly such acknowledgements, opinions of counsel and other instruments reasonably requested to effect such Assignment. Each Lessee leasing Asset(s) through Schedules under this Master Lease Agreement and DIR acknowledge that the assigns do not assume Lessor's obligations hereunder and agree to make all payments owed to the assigns without abatement and not to assert against the assigns any claim, defense, setoff or counterclaim which DIR or the Lessee(s) may possess against the Lessor or any other party for any other reason. Lessor shall remain liable for performance under the Master Lease Agreement and any Schedule(s) executed hereunder to the extent Lessor's assigns do not perform Lessor's obligations under the Master Lease Agreement and Schedule(s) executed hereunder. Upon any such Assignment, all references to Lessor shall also include all such assigns, whether specific reference thereto is otherwise made herein. Co) Without the prior written consent of Lessor, Lessee shall not assign, sublease, transfer, pledge or hypothecate the Master Lease Agreement, any Schedule, the Asset(s), any part thereof, or any interest in the foregoing. Without the prior written consent of Lessor, DIR shall not assign, sublease, transfer, pledge or hypothecate the Master Lease Agreement. 19. Delivery of Related Documents. For each Schedule, Lessee will provide the following documents and information satisfactory to Lessor: (a) Certificate of Acceptance; Co) Opinion of Counsel; (c) proof of self-insurance acceptable to Lessor; (d) Financial Statements; (e) Incumbency Certificate; and (f) Other documents as reasonably required by Lessor. 20. Appropriation of Funds. (a) This paragraph applies only to Lessees designated as state agencies defined in Section 2054.003, Texas Government Code, including institutions of higher education as defined in Texas Education Code, Section 61.003 and state agencies purchasing from a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code. Lessee intends to continue each Schedule to which it is a party for the Schedule Term and to pay the Rent and other amounts due there under. Lessee reasonably believes that legally available funds in an amount sufficient to pay all Rent during the Schedule Term can be obtained. Lessee further intends to act in good faith to do those things reasonably and lawfully within its power to obtain and maintain funds from which the Rent may be paid. Notwithstanding the foregoing, in the event sufficient funds are not appropriated to continue the DIR / Dell Marketing L.P. Master Lease Agreement 10 Agreement Number: 02000390 Schedule Term for any Fiscal Period (as set forth on the Schedule) of Lessee beyond the Fiscal Period first in effect at the commencement of the Schedule Term, Lessee may terminate the Schedule with regard to not less than all of the Asset(s) on the Schedule so affected, Lessee shall endeavor to provide Lessor written notice sixty (60) days prior to the end of its current Fiscal Period confmning the Schedule will be so terminated. All obligations of Lessee to pay Rent due after the end of the Fiscal Period for which such termination applies will cease, all interests of Lessee in the Asset(s) will terminate and Lessee shall surrender the Asset(s) in accordance with Section 12 hereof. Notwithstanding the foregoing, Lessee agrees, without creating a pledge, lien or encumbrance upon funds available to Lessee in other than its current Fiscal Period, that it will use reasonable efforts to obtain appropriation of funds to avoid termination of the Schedule by taking reasonable and appropriate action including the inclusion in Lessee's budget request for each Fiscal Period during the Schedule Term hereof a request for adequate funds to meet its obligations and to continue the Schedule in force. Lessee represents and warrants it has adequate funds to meet its obligations during the first Fiscal Period of the Schedule Term. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rent hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the general revenues, funds or monies of Lessee or the State of Texas beyond the Fiscal Period for which sufficient funds have been appropriated to pay Rent hereunder. (b) This paragraph applies only to Lessees designated as local government entities. In the event sufficient funds are not appropriated for Lessee to continue the Schedule Term for any Fiscal Period (as set forth on the Schedule) of the Lessee beyond the Fiscal Period first in effect at the commencement of the Schedule Term, the Lessee may terminate the Schedule with regard to not less than all of the asset(s) on the Schedule so affected. Lessee shall endeavor to provide Lessor written notice sixty (60) days prior to the end of its current Fiscal Period confirming the Schedule will be terminated. All obligations of Lessee to pay Rent due after the end of the Fiscal Period first in effect at the commencement of the Schedule Term will cease, all interests of Lessee in the Asset(s) will terminate and Lessee shall surrender the Asset(s) in accordance with Section 12 hereof. 21. Miscellaneous. (a) Notices shall be conclusively deemed to have been received by a party hereto on the day it is delivered to such party at the address given above (or at such other address as such party shall specify to the other party in writing) or, if sent by certified mail, on the third business day after the day on which mailed, addressed to such party at such address. (b) Applicable Law/Disputes. The Master Lease Agreement and each Schedule SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. In the event of a dispute between the parties suit may be brought in the federal or state courts where Lessee has its principal office or where the Asset(s) are located. (c) Counterparts. Only original counterpart No. 1 of each Schedule shall be deemed to be an "Original" for chattel paper purposes under the Uniform Commercial Code. Any and all other counterparts shall be deemed to be a "Copy". NO SECURITY INTEREST IN THIS MASTER LEASE AGREEMENT, IN ANY OF THE SCHEDULE (S), OR IN ANY OF THE ASSETS MAY BE CREATED, TRANSFERRED, ASSIGNED OR PERFECTED BY THE TRANSFER AND POSSESSION OF THIS MASTER LEASE AGREEMENT ALONE OR OF ANY "COPY" OF THE SCHEDULE, BUT RATHER SOLELY BY THE TRANSFER AND POSSESSION OF THE "ORIGINAL" COUNTERPART OF THE SCHEDULE INCORPORATING THIS MASTER LEASE AGREEMENT BY REFERENCE. DIR / Dell Marketing L.P. Master Lease Agreement 11 Agreement Number: 02000390 (d) Suspension of Obligations of Lessor. Prior to delivery of any Asset, the obligations of Lessor hereunder shall be suspended to the extent that it is hindered or prevented fi.om performing because of causes beyond its control. (e) Severability. In the event any provision of the Master Lease Agreement or any Schedule shall be determined by a court of competent jurisdiction to be invalid or unenforceable, the parties hereto agree that such provision shall be ineffective without invalidating the remaining provision thereof. (0 Entire Agreement. Lessor and Lessee acknowledge that there are no agreements or understandings, written or oral, between them with respect to the Asset(s), other than as set forth in this Master Lease Agreement and in each Schedule to which Lessee is a signatory party. Lessor and Lessee further acknowledge that this Master Lease Agreement and each Schedule to which Lessee is a party contain the entire agreement between Lessor and Lessee. DIR and Lessor acknowledge that there are no agreements or understandings, written or oral, between them other than as set forth in this Master Lease Agreement and that this Master Lease Agreement contains the entire agreement between them. Neither this Master Lease Agreement nor any Schedule may be altered, modified, terminated, or discharged except by a writing signed by the party against whom enforcement of such action is sought. (g) Lessor Certifications. Lessor certifies (i) it has not given, offered to give, and does not intend to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with this Master Lease Agreement and Schedules executed hereunder; (ii) it is not currently delinquent in the payment of any franchise tax owed the State of Texas and is not ineligible to receive payment under Section 31.006, Family Code and acknowledges this Master Lease Agreement may be terminated and payment withheld if this certification is inaccurate; (iii) neither it, nor anyone acting for it, has violated the antitrust laws of the United States or the State of Texas, nor communicated directly or indirectly to any competitor or any other person engaged in such line of business for the purpose of obtaining an unfair price advantage; (iv) it has not received payment fi.om DIR, Lessee or any of their employees for participating in the preparation of this Master Lease Agreement and the Schedule(s) hereunder; and (v) during the term of this Master Lease Agreement, it will not discriminate unlawfully against any employee or applicant and that, upon request it will furnish information regarding its nondiscriminatory hiring and promotion policies, as well as specific information on the composition of its principals and staff, including the identification of minorities and women in management or other positions with discretionary or decision making authority. (h) The following paragraph applies only to Lessees designated as a State agency as defined in Section 2054.003, Texas Government Code, including a university system or institution of higher education, and those purchasing fi.om a DIR contract through an Interagency Agreement, as authorized by Chapter 771, Texas Government Code. (a) To the extent that Chapter 2260 of the Texas Government Code, as it may be amended fi.om time to time ("Chapter 2260"), is applicable to this Agreement and is not preempted by other applicable law, the dispute resolution process provided for in Chapter 2260, and rules promulgated there under shall be used by the Lessee and Lessor to attempt to resolve any claim for breach of contract made by Lessor. (i) DIR Contract Administrator. DIR shall appoint a contract administrator whose duties shall include but not be limited to the following: A. Facilitating dispute resolution between the Lessor and Lessee. Unresolved disputes shall be presented to DIR for resolution; and DIR / Dell Marketing L.P. Master Lease Agreement 12 Agreement Number: 02000390 B. Advising DIR regarding Lessor's performance under the terms and conditions of the contract; (j) Lessor Contract Administrator. Lessor shall appoint a primary representative to work with the DIR Contract Administrator to maintain, support, and market this contract. DIR reserves the right to require a change in Lessor's then-current primary representative if the assigned representative is not, in the opinion of DIR, serving the needs of the State of Texas and the Lessees adequately. The DIR Contract Administrator will escalate to Lessor management any unresolved issues, before a change in Lessor's~hen-current representative is requested by DIR. L~ess0r~, s ~i~tia~ ~/~ ~//~~t3~ ·. r'~l~p~/s/i, niti ails 22. Lessee's Waivers. / ~.4/t~:,! ~c.~,, ~,~l~'~- To the extent permitted by applicable law, Lessee hereby waives the following rights and remedies conferred upon Lessee by the Uniform Commercial Code: to (i) cancel any Schedule under the Agreement; (ii) repudiate any Schedule; (iii) reject the Asset(s); (iv) revoke acceptance of the Asset(s); (v) recover damages from Lessor for any breach of warranty by the manufacturer or supplier of the Asset(s); (vi) claim a security interest in the Asset(s) in Lessee's possession or control for any reason; (vii) deduct all or any part of any claimed damages resulting from Lessor's default, if any, under any Schedule; (viii) accept partial delivery of the Asset(s); (ix) "cover" by making any purchase or lease of or contract to purchase or lease equipment in substitution for the Asset(s) due from Lessor; (x) recover any special, punitive, incidental or consequential damages, for any reason whatsoever. 23. UCC Filings. Lessor and Lessee agree that a reproduction of this Lease may be filed as a financing statement and shall be sufficient as a financing statement under the Uniform Commercial Code. Lessee irrevocably appoints Lessor, its' officers and employees, as Lessee's attorney-in-fact, with full power in Lessor's and Lessee's name to execute and file all such financing statements and other documents as Lessor deems necessary or advisable hereunder. Lessee shall execute or obtain and deliver to Lessor, upon Lessor's request, such instruments, financing statements and assurances, as Lessor deems necessary or advisable for the protection or perfection of this Lease and Lessor's rights hereunder and will pay all costs incident thereto. 24. Maximum Rate. We both intend to comply with all applicable laws. We intend for each Lease to constitute a "tree lease" of Asset(s) under all applicable law. If in any event, we should receive anything of value under the Lease deemed interest under any applicable law, which interest would exceed the maximum amount of interest allowed, then any excess interest collected shall be applied to repayment of principal in inverse order of maturity, and interest will be charged at the highest rate permitted by law, with any excess remaining being refunded to you. It is our express intent not to violate any applicable usury laws and in no event will we charge or receive, nor will you pay, any amounts in excess of the legal amount. 25. Handling of Written Complaints. In addition to other remedies contained in this Contract, a person contracting with DIR may direct their written complaints to the following office: DIR / Dell Marketing L.P. Master Lease Agreement 13 Agreement Number: 02000390 Public Information Office Department of Information Resources ARm Matt Kelly 300 W. 15~ Street, Suite 1300 Austin, TX 78701 (512) 936-6550, voice (512) 475-4759, fax Email: matt.kelly~dir.state.tx.us 26. Amendments. The Master Lease Agreement may be amended only by written instrument executed by Dell Marketing, LP and DIR. IN WITNESS WHEREOF, Lessor and Lessee have caused this Master Lease Agreement to be executed by their duly authorized representatives. DELL MARKETING, L.P. BY: STATE OF TEXAS, ACTING BY AND THROUGH THE DEPARTMENT OF INFORMATION RESOURCES NAMX: Patrick W. Hogan TITLE: DATE: TITLE: Director of Business Operations Division DATE: LEGAL: DIR / Dell Marketing L.P. Master Lease Agreement 14 Exhibit A DELIVERY & ACCEPTANCE CERTIFICATE OF UNCONDITIONAL ACCEPTANCE LEASE #: DATED AS OF: BETWEEN Dell Marketing L.P. AS LESSOR, AND THE UNDERSIGNED LESSEE The undersigned Lessee hereby acknowledges receipt and acceptance of the Equipment described in the above referenced Lease Agreement and/or ADD-ON Schedule, AS IS and WHERE IS on the date hereof, and represents that it is in good working condition, and LESSEE HEREBY UNCONDITIONALLY ACCEPTS THE EQUIPMENT AFTER FULL INSPECTION THEREOF, as satisfactory for all purposes under the Lease. Lessee certifies that the Lessor has fully and satisfactorily performed all covenants and conditions to be performed by and under the Lease as it relates to such equipment and has delivered the Equipment selected solely by the Lessee in accordance with the Lessee's directions. Lessee agrees that the Lessor has made and makes NO REPRESENTATIONS OR WARRANTIES OR ANY KIND OF NATURt~, DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING THE SUITABILITY OF SUCH EQUIPMENT, ITS DURABILITY, ITS FITNESS FOR ANY PARTICULAR PURPOSE, ITS MERCHANTABILITY, ITS CONDITION, AND/OR ITS QUALITY AND AS BETWEEN LESSEE AND LESSOR OR LESSOR'S ASSIGNEE ACCEPTS THE EQUIPMENT AS IS, and lessee affirms that it has no defense or counterclaims against Lessor in connection with the Lease Agreement. Lessee certifies that the Equipment has not been placed in service prior to the date hereof. This Certificate shall not be considered to alter or amend the terms of the Lease. "Lessee" Dated: Signed By: Title: 02~04~03 #40 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: February 4, 2003 Materials Management Questions concerning this acquisition may be directed to Tom Shaw 349-7100 ACM: Kathy DuBose, Fiscal and Municipal Services SUBJECT An Ordinance authorizing the City Manager to accept an Interlocal Agreemem with the City of Gainesville, Texas to authorize participation in various City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefore; and declaring an effective date (File 2959- Imerlocal Agreemem with the City of Gainesville, Texas). INTERLOCALAGREEMENT INFORMATION The Interlocal Cooperative Act, V.T.C.A. Government Code Chapter 791, authorizes respective participating governments to enter into joint contracts and agreements for the purchase of necessary materials, supplies, and services. Over the past several years, the City of DeNon and other entities have entered into cooperative purchasing agreements that have been highly beneficial to the taxpayers through anticipated savings. The attached agreement is an authorization of the City of Gainesville to participate in comracts awarded by the City of Denton and will remain in effect umil terminated by either party. This Imerlocal Agreemem will allow the City of Gainesville to milize comracts for supplies and services competitively bid by the City of DeNon, Texas. ESTIMATED SCHEDULE OF PROJECT This agreemem is effective upon approval by the City of DeNon, Texas and will remain in effect umil terminated by either party. RECOMMENDATION We recommend this Imerlocal Agreemem be approved. FISCAL INFORMATION Each acquisition, based on this agreemem, will be funded by the City of Gainesville and will have no impact on the City of DeNon. Agenda Information Sheet February 4, 2003 Page 2 1-AlS-File 2959 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent ORDINANCE NO. AN AGREEMENT AUTHORIZING THE CITY MANAGER TO APPROVE AN INTERLOCAL AGREEMENT WITH THE CITY OF GAINESVILLE, TEXAS TO AUTHORIZE PARTICIPATION IN VARIOUS CITY OF DENTON CONTRACTS FOR THE PURCHASE OF VARIOUS GOODS AND SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND DECLARING AN EFFECTIVE DATE (FILE 2959- INTERLOCAL AGREEMENT WITH THE CITY OF GAINESVILLE, TEXAS. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is hereby authorized to execute the attached Interlocal Agreement, a copy of which is attached hereto and incorporated by reference herein. 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 BY: 2-ORD-Interlocal Agreement With Gainesville THE STATE OF TEXAS ) ) COUNTY OF COOKE ) INTERLOCAL AGREEMENT FOR COOPERATIVE PURCHASING THIS AGREEMENT is made and entered into this ~-a day of~),r. ,2002, by and between The City of Gainesviile, Texas, a Home Rule Municipality, hereinafter referred to as "Gainesville", and The City of Denton, Texas, a Home Rule Municipality, hereinafter referred to as "Denton." WITNESSETH: WHEREAS, Gainesville is a Home Rule Municipality located in Cooke County, Texas, and possessing the full power of local self government as provided by Article XI, Section 5 of the Constitution of the State of Texas, Section 51.072 of the Texas Local Government Code and its Home Rule Charter; and WHEREAS, Denton is a Home Rule Municipality located in Denton County, Texas, and possessing the full power of local self government as provided by Article Xi, Section 5 of the Constitution of the State of Texas, Section 51.072 of the Texas Local Government Code and its Home Rule Charter; and WHEREAS, Gainesville desires to enter in to a cooperative purchasing agreement with the City of Denton; and WHEREAS, Denton has followed the proper purchasing procedures under the laws of the State of Texas; and WHEREAS, these purchases would are a governmental function that serves the public interest, promotes efficiency and effectiveness of local governments, and is of mutual concern to the contracting parties; and WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter 791, as amended (the ~Act') provides authority for Iocat governments of the State of Texas to enter into interlocal agreements with each other regarding governmental functions and services as set forth in the Act; and WHEREAS, each party to this Agreement is authorized individually to perform the governmental function or service contracted for herein and to fully comply with all regiments of the Act; WHEREAS, this Agreement is authorized by the governing body of each respective party hereto. ~'~(":.nnnFr~ti~.n, ,rnh~einnrlFnfnn clnn P~ana '1 NOW, THEREFORE, Gainesvitle and Denton, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: Term This Agreement shall become effective upon approval by both of the respective governing bodies of Gainesvilte and Denton and upon execution by their respective authorized representatives. The Agreement shall continue in effect for a pedod of two (2) years and shall automatically renew for three (3) additional periods of two (2) years each provided that it is not terminated eadier as provided herein. Either party may terminate this agreement upon sixty (60) days pdor written notice or as otherwise provided herein. II. Use of the Cooperative Purchasing Agreement Gainesville agrees that it may purchase certain items for use in the municipal operations of the City. Gainesville further agrees to make payment in full to the City of Denton for these cooperative purchases. Denton agrees to permit Gainesville to take advatage of the opportunity to make these purchases as they may be advantageous to the City of Gainesvilie. III. Consideration The parties agree that sufficient consideration for this Agreement exists and is found in the cross promises set forth above. Additionally, Gainesville's agreement to permit purchases from Denton and Denton's agreement to permit these purchases will show mutual cooperation between the Cities. Gainesville and Denton, realize the cost savings and other benefits that each will receive from the Cooperative Purchasing Agreement, shall serve as sufficient consideration under this Agreement. The payment of all costs resulting from or adsing out of the Agreement shall be paid from current revenues usually available to the respective party hereto incurring such cost. IV. Cooperation Between Parties Gainesville and Denton agree to cooperate with their respective Directors in making purchases provided for under this Agreement, who shall control such matters as may be reasonably necessary to carry out the terms of this Agreement. VIIi. Default In the event that either party hereto breaches any term or condition of this agreement, this Agreement may be terminated by the aggrieved party if such default is not cured within a pedod of ten (10) days after receipt of written notice of default by the party allegedly in breach of its obligations hereunder. If the default is not cured within the ten (10) day pedod, this agreement shall immediately terminate. IX. Entire Agreement This Agreement represents the entire and integrated agreement between Gainesvilte and Denton and supersedes all prior negotiations, representations and/or agreements, either wdtten or oral. This Agreement may be amended only by written instrument signed by both parties. Xp Venue This Agreement and any of its terms or provisions, as well as the dghts and duties of the parties hereto, shall be governed by the laws of the State of Texas and exclusive venue shall be in Cooke County, Texas. Xl. NonwaJver One (1) or more instances of forbearance by either party in the exercise of its respective rights or remedies herein shalJ in no way constitute a waiver of the exercise of such dghts or remedies. Xll. Severability If any of the terms, sections, subsections, sentences, clauses, phrases, provisions, covenants, conditions or any other part of this contract are for any reason held to be invalid, void or unenforceable, the remainder of the terms, sections, subsections, sentences, clauses, phrases, provisions, covenants, conditions or any other part of this contract shall remain in full force and effect and shall in no way be affected, impaired or invalidated. Xlll. Signature Authority The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary resolutions extending such authority have been duly passed and are now in full force and effect. EXECUTED in duplicate originals this the ~ CITY OFGAINESVILLE, TEXAS day of , ~ CITY OF DENTON, TEXAS Kenneth Kaden, Mayor By , Mayor ATTEST: ATTEST: Cit~' Secretary ' ' J City Secretary APPROVED AS TO FORM: Gainesviile City Attorney Denton ~ney 13-~nnn.r~rli~n~ ~rnhn¢innn~nfnn dnn Dnn~ d. 02~04~03 #4P AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Alex Pettit 349-8595 SUBJECT Consider adoption of an Ordinance awarding a comract for the purchase of Microsoft Server and Database Software as awarded by the State of Texas Building and Procuremem Commission through the Qualified Information Service Vendor (QISV) Catalogue Program; providing for the expenditure of funds therefore; and providing an effective date (File 2956 to SHI Governmem Solutions in the amoum of $133,908 for the first year, $20,148 for the second and third years for a total amoum of $174,204). PURCHASE ORDER INFORMATION This purchase is for operating system software necessary to upgrade existing City of DeNon servers to the most currem revision. Curremly the City has 17 servers using the Microsoft Windows NT 4.0 Server Operating System. This purchase will allow for upgrade of 11 of those servers to the Windows 2000 Server Operating System, and 6 of them to the Windows 2000 Advanced Server Operating System. This purchase also includes Microsoft SQL Server 2000 licensing. Curremly the City uses Microsoft SQL Server 7.0 as the database provider for six major City applications: 1. Planning and Building Inspections - CRW Trak-It 2. Property Tax - Spindlemedia TaxOffice2000 3. Fire EMS - Amazon SweetSoft EMS Billing 4. Parks and Rec. - Class Software CemreServ 5. Fleet Services - CCG Systems Faster Fleet Management 6. Technology Services - Bendata Heat Call Management The licensing upgrade is necessary to keep pace with the software vendor's supported database platforms, as well as to consolidate resources from five servers down to two. Under previous licensing, database connections were licensed by the individual user. The licensing that is being recommended here will provide for unlimited user connections to the server, therefore reducing cost overhead associated with per seat licensing. This purchase also includes licensing for Imernet-based usage of City of DeNon resources for both Web Services and Terminal Services. Agenda Information Sheet February 4, 2003 Page 2 RECOMMENDATION We recommend File 2956 Microsoft Enterprise License Agreement to SHI-Govemment Solutions, be approved in the amount of $133,908.00 for the first year's payment and that years two and three of the three-year Microsoft Software Assurance be approved in the amount of $20,148.00 per annum. PRINCIPAL PLACE OF BUSINESS SHI-Govemment Solutions Austin, TX 78746 ESTIMATED SCHEDULE OF PROJECT The upgrade of software will take place in February and March of 2003. FISCAL INFORMATION This purchase in the amount of $133,908.00 will be funded out of the Technology Services 2002-2003 operating account 830500.7802. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote from SHI 1-AIS-File 2956 Customer Total Desktops Microsoft Enterprise Agreement VSo Select Price Comparison A't tachmen'b 1 City of Denton ~ over ,3 ~ars) ~ $ 174,204.00 Annua~ Per Deskto _ #DlVf0! 'Other co$i~ that are elimlr~alsd wtth EA: Pdc¢~ i~cr~~nptianceeud~t costs ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MICROSOFT SERVER AND DATABASE SOFTWARE AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION THROUGH THE QUALIFIED INFORMATION SERVICE VENDOR (QISV) CATALOGUE PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 2956 TO SHI GOVERNMENT SOLUTIONS IN THE AMOUNT OF $133,908 FOR THE FIRST YEAR, $20,148 FOR THE SECOND AND THIRD YEARS FOR A TOTAL AMOUNT OF $174,204). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Building and Procurement Commission's Qualified Information Service Vendor Catalogue Purchase Method provided for in Subchapter B of Chapter 2157 of the Texas Government Code (the "QISV Catalogue"); and WHEREAS, the herein described vendor is a qualified vendor in the QISV Catalogue and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a QISV Catalogue purchase; 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. The numbered items in the following numbered purchase order 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 approved: FILE NUMBER VENDOR AMOUNT 2956 SHI Government Solutions $174,204 SECTION 2. By the acceptance and approval of the above numbered items set forth in File 2956, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission 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 Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. 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 Building and Procurement Commission, 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 and standards contained in the Proposal submitted to the General Services Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above numbered items set forth in the subject purchase orders, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved purchase orders or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of .,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 02~04~03 #4Q AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Louise Owen 349-8199 SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of services, software, hardware, and annual maintenance for the installation, configuration, and support of an iP- telephony based Integrated Contact Distribution Solution as awarded by the State of Texas Building and Procurement Commission through the Qualified information Service Vendor (QiSV) Catalogue Program; providing for the expenditure of funds therefore; and providing an effective date (File 2961 to Spanlink Communications, inc. in the amount of $109,946.00). PURCHASE ORDER INFORMATION Spanlink Communications is a Cisco Certified Partner contracted to provide an Integrated Contact Distribution (lCD) for Utilities Customer Service and Solid Waste Customer Relations. Currently, Utilities Customer Service Department uses an Automated Call Distribution (ACD) System from Nortel and Verizon that does not address all the functional needs of the department. In addition, the Solid Waste Customer Relations Department is not able to utilize the functionality of the same ACD group, which is necessary to transfer calls efficiently between the two. The new 1CD System will allow the departments to more effectively distribute call volume, and re-task agents on-the-fly depending upon call load and agent skill set. The new solution also provides for enhanced real-time reporting and the ability to record calls on-demand as necessary for quality assurance. Supervisors are given the ability to monitor and, if necessary, intercept calls from an agent to ensure customer satisfaction. This solution also gives both departments a backup site for disaster recovery purposes that can be brought online more quickly in the event of an emergency. RECOMMENDATION We recommend File 2961 Integrated Contact Distribution Solution, be awarded to Spanlink Communications, inc. in the amount of $174,204.00. PRINCIPAL PLACE OF BUSINESS Spanlink Communications, Inc. Minneapolis, MN Agenda Information Sheet February 4, 2003 Page 2 ESTIMATED SCHEDULE OF PROJECT This project is scheduled to begin March 1st and be completed by May 1st of 2003. FISCAL INFORMATION This project is being funded out of accounts 63005300.1360.40100; 66002500.1365.30100; and 630800.7879. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: QISV Letter from Spanlink Attachment 2: Spanlink Statement of Work SPAN 'LINK C 0 M M U N I C A 1 I 0 N S QISV Certification for Spanlink Communications Under Texas law, 10 TAC Secs. 199.101 - 199.I'16, Spanlink Communications is a Qualified Systems Information Vendor (QISV), with vendor id 1411618845000. ~. - The pricing provided to the City ofDenton as ~ part of the following documents are below the QISV pricing found in the~dtate of Texas catalogue price: · Spanlink Communications Statement of Work AB-020819 revision 8 · Master Agreement AB-020813 Any questions in this matter can be directed to: Andrew Berg Regional Account Manager, Spanlink Communications 817-482-1119 andy.berg(~spanl~n~k.com Thankyou, Andrew Berg Sp~link Communications, Proprietary and Confidential January 15, 2003 Page 1 ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF SERVICES, SOFTWARE, HARDWARE, AND ANNUAL MAINTENANCE FOR THE INSTALLATION, CONFIGURATION, AND SUPPORT OF AN IP-TELEPHONY BASED INTEGRATED CONTACT DISTRIBUTION SOLUTION AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION THROUGH THE QUALIFIED INFORMATION SERVICE VENDOR (QISV) CATALOGUE PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 2961 TO SPANLINK COMMUNICATIONS, INC. IN THE AMOUNT OF $109,946.00). WHEREAS, the City Council of the City of Denton has heretofore adopted Resolution 92- 019 pursuant to Section 2157.067 of the Texas Government Code and Sections 271.082 and 271.083 of the Texas Local Government Code which authorizes the City to participate in the State Purchasing Building and Procurement Commission's Qualified Information Service Vendor Catalogue Purchase Method provided for in Subchapter B of Chapter 2157 of the Texas Government Code (the "QISV Catalogue"); and WHEREAS, the herein described vendor is a qualified vendor in the QISV Catalogue and the contract authorized by this ordinance is in the best interests of the City and complies with the requirements of Subchapter B of Chapter 2157 of the Texas Government Code as a QISV Catalogue purchase; 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. The numbered items in the following file for materials, equipment, supplies, or services, shown in the File 2961 listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 2961 Spanlink Communications, Inc. $109,946 SECTION 2. By the acceptance and approval of the above numbered items set forth in the File 2961, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission 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 Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in File 2961 wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, 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 and standards contained in the Proposal submitted to the General Services Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above numbered items set forth in the File 2961, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved purchase orders or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. 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: 3-ORD-File 2961 Statement of Work Approvals Parties to Agreement This Statement of Work ("SOW") is made and entered into between Spanlink Communications, Inc., 7125 Northland Terrace, Suite 100, Minneapolis, MN 55428 ("Spanlink") and the City of Denton, 215 East McKinney Street, Denton, TX 76201 ("Customer"), as of the date last written below ("Effective Date"). Terms This SOW is governed by, incorporated into, and made part of the Master Agreement AB- 020813 ("Agreement") between Spanlink and Customer. This SOW is valid only if the Master Agreement is in effect. The Customer agrees to purchase, and Spanlink agrees to provide certain services and deliverables ("Services") as defined in this SOW, subject to the terms and conditions that follow. The terms of this SOW are limited to the scope of this SOW and shall not be applicable to any other SOWs, which may be executed and attached to the Master Agreement. Whenever there is a conflict between the terms and conditions set forth in a fully executed Master Agreement andthose set forth herein, the terms and conditions of this SOW shall prevail. Content This SOW consists of this signature page and the following sections that are incorporated in this SOW by this reference: 1. Executive Overview 2. Solution Description 3. Project Methodology 4. Responsibilities of the Parties 5. Change Management Process 6. Estimated Cost for Professional Services 7. Cost for Software, Hardware and Maintenance Approval Signatures 1N WITNESS WHEREOF, the duly authorized representatives of the parties hereto have caused this SOW to be duly executed. Spanlink Communications By: (Signature) Name: Title: Date: City of Denton By: (Signature) Name: Title: Date: Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 1 L1 K f .-L1 DENTON Statement of Work Approvals Parties to Agreement Th.i., .Statement t~I ~.~,',',rl~ ;".%c ].%~,'";, [, r:LLLglc iii,gl <.'rm:, c~L ,rm, l'%c'T~<'c'rl ~;rli1:.nJ-. (',,n',rY:rrn J.:.~LI, ,TI'.. Ira:.. ? 12.'~ %',',nhl.md '[ c.'~.L,:c. 'gLint.' I~I'IF. ),lmr~c, aF.,,h,.. ~.134 -,'~-' ?.', i"'Ni~.~nlink" ~ ,an,:. :h' ~.':.h ,I h,c]~'~ ("1!1 h_'cb', c L'~[Lk'"'~ Terms [h~ t~lm,, ~,f th;.., .~ WV :Lr~ linmcd T,.~ thc '.c,~pc othe,: .SOW',. ~,,hich m:,~ hc c~,:ut~.',:i .md ~u.~,.'h~d ~ ~'onfli~'t ~r~n rh~: term...~nd ~.,mdia~..m...ct I:~r[h in :J IL. II.,, c',~', u]<'d ".In,r~'r %S:'~'£m'..-'n: ankItho,,e her I'm-th hcrcLn, thc tCr~T].~ arid ,:ond]tL,',r,'¢ ,',1 r. hr, :SI )% ,h:,l', ]~,.--~:,ii Content Approval Signatures [[',' V,/II'[','[.:%~ ~r~.'Ltl 'Al'< 3F ;h£' d,,l', ;,L,Ch,,,aJ/c,L ,',"I'!I'C-L'II[,Li::.:,C~ ,d' ~h~: p. LrLic', ,l~_'T~_% Executive Overview Denton, Texas is a Main Street City that tops a triangle formed by itself, Ft. Worth and Dallas. This area is traditionally referred to as the Golden Triangle. Established in 1857, Denton is the county seat of Denton County, and was named for John B. Denton. Denton is the proud home of two public Universities; Texas Woman's University and the University of North Texas, the 3rd largest university in the State of Texas, with a combined enrollment of approximately 40,000 students. The City of Denton seeks to replace their existing TDM-based ACD with an IP-based contact center solution. This Statement of Work (SOW) shows how a Cisco Integrated Contact Distribution (ICD) solution, in combination with Spanlink's professional services, can meet the requirements set forth by the City of Denton. This Statement of Work includes the services, software, hardware, and annual maintenance required to successfully deploy and support a contact center for the City of Denton with 17 agents and 3 supervisors. As a Statement of Work, the goal of this document is to capture the nature and scope of the proposed development, rather than to be precise in all its details and architectural design. Following the receipt of an order, Spanlink Communications will work with the City of Denton to develop a detailed specification, call flows and project plan before beginning implementation. Spanlink is pleased to have this opportunity to work with the City of Denton and looks forward to a lasting, successful business relationship. Under Texas law, 10 TA C Secs. 199.1 O1 - 199.116, Spanlink Communications is a Qualified Systems information ?endor (QiSV) with vendor id 1411618845000. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 2 Solution Description 2.1. Customer Environment Implementation will take place in City of Denton's facilities located in Denton, TX. 2.1.1. General Quantities Agents 17 Supervisors 3 Skill Groups No more than 5 DNIS No more than 5 Queue/IVR Ports No more than 18 Agents 5 Supervisors 1 Skill Groups No more than 2 DNIS No more than 2 Queue/IVR Ports No more than 6 2.2. 2.2.1. Solution Functionality Agent/Supervisor Desktop Cisco Supervisor Desktop will be configured with the following features: · Display real-time contact center statistics. · Real-time voice monitoring. · On-demand recording. (Provides Supervisors with recording of their calls only. Does not provide for Agent call recording.) · Agent & Supervisor minimum desktop requirements: Operating System · Windows 95/98/XP Professional · Windows 2000 Professional, Service Pack 2 or greater · Windows NT, Service Pack 6a or greater Hardware · 233 MHz Pentium II processor · 32 MB RAM (Windows 95/98) · 64 MB RAM (Windows NT) · 16 MB free hard disk space · NIC supporting Ethernet 2 Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 3 2.2.2. Out of Scope Cisco Agent Desktop will not be configured with the following features: · Agent on-demand recording. (The Supervisors will have on-demand recording capabilities, but the agents will not.) · CTI Screen-pop automation. · Media Termination. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 4 2.3. Solution Diagram I'P TELEPHO~ Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 5 Project Methodology Spanlink uses a phased approach for solution deployments, including Discovery, Design, Development and Deployment. At the end of the IP-ICD implementation, Spanlink and Customer will sign off on an acceptance document. 3.1. Professional Services Spanlink will provide the following Professional Services for the Cisco IP-ICD solution on a time and material basis. All requests for Spanlink Professional Services and post-installation technical support must pass through a Spanlink project manager. Spanlink reserves the fight to appoint the point of contact as needed. Project Management A single point of contact for you who will track the project, from implementation to testing, through hand-off to support. Application Consulting Work with Customer to define requirements for architecture, call routing, agent skill definition, agent workflows, IVR queuing and overall system reporting. Application Consulting also includes the actual writing and configuration of IP-ICD system components. Implementation and Installation of hardware and software, integration, and testing of the various Integration components, based on specifications and requirements determined through analysis. Customization Custom services for IVR Application development, e-Notification Services and custom reporting, if required. Service Hours Spanlink service hours are as follows: Consulting Monday through Friday Spanlink-observed Hourly/ Project Management 8:00 A.M. to 5:00 P.M. CST/CDT holidays Daily Customization Remote Installation On-Site Installation Monday through Friday Spanlink-observed Daily 8:00 A.M. to 5:00 P.M. local time holidays Requested Post-Installation Monday through Friday Spanlink-observed Hourly Technical Support 8:00 A.M. to 5:00 P.M. CST/CDT holidays 3.1.1. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 6 3.2. 3.2.1. 3.3. 3.4. Discovery & Design Discovery & Design has two primary goals. The first is to establish the project plan and related details, and the second is to define and/or verify the business and technical requirements of the solution. The Customer is required to "sign off' on the solution design before Installation begins. Discovery Deliverables Spanlink will deliver the following during this phase: · Kickoff presentation. · Project status form. · Change control document. · Project plan. · Deployment guide. · Software and hardware order review. · Network naming and addressing. · Business requirements document. · Visio call flow diagram(s). · Test case scenarios. Installation, Integration and Testing Spanlink will perform the following as part of this phase: · Integrate the IP-ICD server to the Customer network. · Install software, including Win2000 Server and other third-party software. · Install and configure IP-ICD software, including ACD and IVR components. · Integrate IP-ICD server with Customer LAN and CallManager cluster. · Configure call flows, agents and skill group definitions. · Use the test plan developed during project planning to verify installation and configuration of the hardware and software and to test specific functionality and document the system configuration before turning the system over to the Customer. Mentoring and Go-live It is anticipated that Spanlink engineers will be on-site for no more than five business days (one week). During this time, Spanlink will provide Mentoring and Go-live support. Included in this are the following: · Mentor the administrator(s) on call handling, agent/supervisor definitions, IP-IVR scripting as it pertains to their environment. · Mentor a single supervisor on Supervisor Desktop functionality. · Be on-site for go-live support to transition to a production environment. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 7 3.5. Project Completion The Project will be deemed complete at the completion of either of the following milestones: · Completion of the Test Plan. · The system has been live for 30 calendar days. Note: Technical issues outside of this Statement of Work are the responsibility of the Customer and shall not impact product delivery or payment. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 8 Responsibilities of the Parties The Spanlink project manager and deployment team will work directly with the Customer project manager and other project members in order to provide the deliverables identified in this Statement of Work. This section delineates the mai or responsibilities of each party. 4.1. 4.1.1. 4.1.2. Spanlink Responsibilities Project Management The Spanlink project manager will: · Provide a single point of contact designated as the Spanlink project manager for all project support issues and designating a back up when the primary contact is unavailable. · Deliver solution and deliverables defined in this document. · Track project milestones and expectations as outlined in the project plan. · Provide status updates identifying accomplishments, upcoming tasks, and outstanding issues. · Attend scheduled customer status meetings by conference call to discuss project installation, testing and issues. · In the rare event the Project Manager assigned to the Customer has a leave of absence, a backup Project Manager will be assigned to the project and the customer will be notified as far in advance as possible. In the event of an emergency, the Customer will be notified within one business day of the change of Project Management responsibilities. Installation, Integration and Testing The Spanlink deployment team will: · Develop an installation schedule in coordination with the Customer and Spanlink Communications. · Procure, install and provide basic configuration for all Cisco software required for the Cisco IP-ICD solution. · Perform necessary integration to Customer-provided networks and agent desktops. · Complete the installation and test plan. · Perform on-site duties as assigned in the project plan. On-site resources will be made available to the Customer, at the Customer's request, as those resources are available depending upon previous committed project schedules will allow. · IP Telephony, including CallManager, IP Telephones, and data network components are being provided by another Cisco certified partner. Spanlink will work with this partner to integrate the contact center applications with the IP Telephony solution. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 9 4.2. 4.2.1. Customer Responsibilities Pre-Installation Requirements In order for Spanlink to provide the deliverables required and minimize cost, Spanlink requires the Customer address the items in this section prior to Spanlink's arrival at the Customer site. Parties agree that failure to meet these requirements shall result in an adjustment in the pricing provided herein, and shall be managed through the Change Management Process specified in Section 5. This Statement of Work requires the following: · Customer will procure (from Spanlink) all related hardware and software products relative to the project. · Customer is responsible for the physical installation and testing of IP-ICD-related hardware, including racking, power, and LAN connectivity. · Customer will ensure LAN/WAN is in place and properly architected and tested to handle IP-ICD voice/data traffic and features. Spanlink will work with Customer or Cisco partner to provide specifications. · Customer will provide Spanlink engineers remote access to IP-ICD components, via direct dial for 12 weeks from project kickoff date. · Customer will ensure that system administrator attends Cisco Systems training courses for Cisco products in this SOW. At a minimum, this training should include: IP-ICD Administration 3 days Spanlink Spanlink will certify all solution hardware components prior to on-site installation. 4.2.2. Throughout the Project The Customer will: · Designate a person to whom all Spanlink Communications may be addressed and who has the authority to act on all aspects of the project. Such person shall be identified as the Customer project manager and shall designate a backup for when the primary Customer project manager is not available. · Provide adequate workspace for all Spanlink project personnel, reasonable access to customer facilities, and remote access, if needed, during the project. · Provide subject matter experts (SMEs) when required by Spanlink project personnel and/or project activities. · Respond within five (5) business days to Spanlink's request for information required for the project. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 10 4.2.3. · Notify the Spanlink project manager of any schedule changes at least three (3) business days prior to the scheduled activity. Schedule changes and/or cancellations made after this 3-day window shall be subject to Spanlink's cancellation/re-visit charge. Installation, Integration and Testing The Customer will: · Provide network physical and logical schematics, when requested by Spanlink. · Provide required system configurations, as determined by Spanlink project manager, within two (2) weeks before the commencement of the project. · Provide required information such as existing call center call flows, agent extension and login information, and existing carder network and traffic information. · Coordinate the delivery and configuration of all equipment not provided by Spanlink. · Install and verify the operation of all external communications hardware, software, and network equipment not provided by Spanlink as defined by the SOW. · With Forsythe, ensure that all prerequisite hardware, software, network and connectivity configurations are acquired, properly licensed and available in the development and test environment in support of the activities under this SOW; including, but not limited to, all Cisco IP Telephony components. · Provide the appropriate SMEs who can support the configuration and connectivity to the local area network/wide area network/database/content servers in order that the services included in this SOW can be delivered. · Coordinate the technical support resources for the connectivity of these systems in conjunction with Spanlink Communications project personnel. · Ensure that any Customer-provided hardware is certified for IP-ICD software component implementation and must be at least equivalent to the Cisco Systems recommended hardware configurations or better. · Support any database interface or database applications that are outside the scope of this SOW. · Verify the accuracy, correctness and the functionality of the information content of any applications that may interface with the Cisco components, such as any information residing in other legacy applications, Web applications, and databases. · Support any business process changes, and/or operational and procedural changes as the result of this project. · Retain the responsibility for any impact to business operations as the result of the consolidation activities. · Veritas client license for any backup procedures. · Shared public file server location for the storage of Cisco Agent Desktop and Cisco Supervisor Desktop configuration files. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 11 Change Management Process In the event that it may become necessary to amend this Statement of Work, this change management process shall apply. 5.1. Types of Change Changes to the project may be made for reasons including, but not limited to, the following: · Scope of work. · Specifications of the deliverables. · Non-functioning or non-availability of materials that is beyond either party's control. · Non-availability of resources that is beyond either party's control. · Environmental or architectural impediments not previously identified. 5.2. Change Initiation Either party of the project, Spanlink or the Customer, may initiate a change by completing the project's Change Request form. The initiator gives the Change Request to the Spanlink and Customer project managers to review and process. 5.3. Change Review and Approval The Customer project manager and the Spanlink project manager are responsible for: · Tracking the change requests. · Evaluating the changes. · Negotiating what the final changes will be. · Obtaining the appropriate approvals for each change. · Adding changes to the Statement(s) of Work. · Implementing changes approved by both parties. 5.4. The Customer project manager is responsible for obtaining budgetary approval, if needed, for the change. Conflict of Terms and Conditions Whenever there is a conflict between the terms and conditions set forth in a fully executed Change Request and those set forth in the original project, or previous fully executed Change Request, the terms and conditions of the most recent fully executed Change Request shall prevail. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 12 Estimated Cost for Professional Services Spanlink Communications, Inc. will provide Professional Services on a time and material basis. Additional hours or days required to complete the project shall be provided at the rates specified in section 6.2. Travel and reasonable living expenses will be billed on an actual cost basis. 6.1. Professional Services Estimate Services have been divided to show the estimated time that will be spent on each of the different divisions within the City of Denton. Project Management 20 hours $5,000 Discovery and Design 28 hours $7,000 Development and Testing 16 hours $4,000 Installation, Mentoring and Go-live 40 hours $10,000 Post-cut remote support 3 hours $750 IP-ICD 3.0 Services Package Discount ($5,350) Estimated Travel expenses* $2,500 2 seats of lCD Administration Training $3,000 Total Estimated Cost for Professional Services (not including taxes) $26,900 Project Management 8 hours $2,000 Discovery and Design 8 hours $2,000 Development and Testing 8 hours $2,000 Installation, Mentoring and Go-live 16 hours $4,000 Post-cut remote support 1 hour $250 IP-ICD 3.0 Services Package Discount ($2,050) Estimated Travel expenses* $2,500 1 seat of lCD Administration Training $1,500 Total Estimated Cost for Professional Services (not including taxes) $12,200 Total Estimated Cost for Professional Services for both departments $39,100 *Reasonable travel expenses as defined and agreed upon by both City of Denton and Spanlink. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 13 6.2. Rates The following rates apply to Spanlink Professional Services. Remote Support $250.00 per hour $350.00 per hour (15 minute incremental billing) (15 minute incremental billing) On-Site Support $2,000.00 per day $350.00 per hour Plus travel and living expenses Plus travel and living expenses Restart Fee If the project is put on hold by the $2,000 customer, a restart fee shall apply. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 14 Cost for Software, Hardware and Maintenance Spanlink will provide the following at the prices listed below. These prices have been broken into three separate components: 1. Shared components by both City of Denton departments (Customer Service and Waste Management Customer Relations) 2. Customer Service Costs 3. Waste Management Customer Relations Costs ICD-3.0-ENH-BS lCD Enhanced Bundle with: $19,995 1 $19,995 1 - IP-ICD Enhanced Server 10- Enhanced Agent Desktop 10 - CTI Option 1 - Enhanced Supervisor Desktop 1 -On Demand Recording 1 - Enhanced Historical Reporting ICD-E-3.0-RED Enhanced Redundant Server $5,995 1 $5,995 Subtotal $25,990 Discount (19%) ($4,938) Total Software - Shared Components $21,052 ICD-3.X-E-AGT1 Enhanced Agent Desktop (10 in bundle) $795 7 $5,565 ICD-3.X-E-CTI1 Per Agent CTI (10 in bundle) $195 7 $1,365 ICD-3.X-E-SUP1 Enhanced Supervisor Desktop (1 in bundle) $1,295 2 $2,590 ICD-3.X-E-HIST1 Enhanced Historical Reporting (1 in bundle) $595 2 $1,190 ICD-3.X-E-REC1 lCD On-demand Recording (1 in bundle) $145 2 $290 Subtotal $11,000 Discount (19%) ($2,090) Total Software for Customer Service $8,910 Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 15 ICD-3.X-E-AGT1 Enhanced Agent Desktop (10 in bundle) $795 5 $3,975 ICD-3.X-E-CTI1 Per Agent CTI (10 in bundle) $195 5 $975 ICD-3.X-E-SUP1 Enhanced Supervisor Desktop (1 in bundle) $1,295 1 $1,295 ICD-3.X-E-HIST1 Enhanced Historical Reporting (1 in bundle) $595 1 $595 ICD-3.X-E-REC1 lCD On-demand Recording (1 in bundle) $145 1 $145 Subtotal $6,985 Discount (19%) ($1,327) Total Software for Customer Relations $5,658 7.1. HARDWARE (This is a shared component) MCS-7835 Server without MCS-7835-1266 $14,595 2 $29,190 Tapedrive Subtotal $29,190 Discount (15%) ($4,379) Totals $24,811 Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 16 7.2. Software and Hardware Maintenance Pricing This solution includes maintenance support Monday through Friday, 8:00 AM to 5:00 PM. Additional maintenance offers are available upon request. CON-SAU-ICD3XEBS lCD Enhanced Bundle $3,199 1 $3,199 CON-SAU-ICD30ERED Enhanced Redundant Server $959 1 $959 Total Software Maintenance- Shared Components $4,158 CON-SAU-ICD3X-EA1 Enhanced Agent Desktop $127 7 $889 CON-SAU-ICD3XECTI1 Per Agent CTI $31 7 $217 CON-SAU-ICD3XESU Enhanced Supervisor Desktop $207 2 $414 CON-SAU-3XEH1 Enhanced Historical Reporting $95 2 $190 CON-SAU-ICD3XERE1 lCD On-demand Recording $23 2 $46 Total Software Maintenance for Customer Service $1,756 CON-SAU-ICD3X-EA1 Enhanced Agent Desktop $127 5 $635 CON-SAU-ICD3XECTI1 Per Agent CTI $31 5 $155 CON-SAU-ICD3XESU Enhanced Supervisor Desktop $207 1 $207 CON-SAU-3XEH1 Enhanced Historical Reporting $95 1 $95 CON-SAU-ICD3XERE1 lCD On-demand Recording $23 1 $23 Total Software Maintenance for Customer Relations $1,115 8x5x4svc MCS7835-1266 tape CON-SNTE-7835-126 (no tape) $1,693 2 $3,386 Totals $3,386 Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 17 7.3. Pricing Summary Shared Components Customer Service Customer Relations Professional Services n/a $26,900 $12,200 Software $21,052 $8,910 $5,658 Software Maintenance (Year 1) $4,158 $1,756 $1,115 Hardware $24,811 n/a n/a Hardware Maintenance $3,386 n/a n/a Sub Totals $53,407 $37,566 $18,973 Total $109,946 Pricing for Spanlink Professional Services is valid until February 28th, 2003. Pricing for Cisco software is outside the control of Spanlink and is subject to change. Copyrights Trademarks IP-ICD Statement of Work AB-020819 rev7 Spanlink Communications, Inc. 7125 Northland Terrace, Suite 100 Minneapolis, MN 55428 © 2002 Spanlink Communications, Inc. All Rights Reserved. Account Manager: Andy Berg Sales Engineer: Nebojsa Damjanovic Spanlink, Spanlink Communications, and the Spanlink Communications logo, are registered trademarks of Spanlink Communications, Inc. All other trademarks mentioned in this document are the property of their respective owners. Spanlink Communications, Proprietary and Confidential August 19, 2002 Rev. 7 Page 18 02~04~03 #4R AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: February 4, 2003 Materials Management Questions concerning this acquisition may be directed to Alex Pettit at 349-8595 ACM: Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of annual maintenance for continued vendor support of the Harris Public Utility Billing System and associated software modules 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 2939 to Harris Computer Systems in the amount of $37, 318.08). BID INFORMATION Harris Computer Systems is the sole-source vendor for maintenance contracts for the Harris Public Utility Billing System and associated software modules. The Harris Public Utility Billing System is the software package for customer information and billing for Utility Services. It is necessary to maintain full support coverage on an annual basis to ensure the availability of update and product files. RECOMMENDATION We recommend File 2939 Harris Utility Billing System Maintenance be awarded to Harris Computer Systems in the amount of $37,318.08. PRINCIPAL PLACE OF BUSINESS Harris Utility Billing Systems Nepean, ON ESTIMATED SCHEDULE OF PROJECT This is for maintenance of the system from October 1, 2002 through September 30, 2003. FISCAL INFORMATION This acquisition of annual maintenance for the Harris Public Utility Billing System and associated software modules will be funded from account 830400.6504. Agenda Information Sheet February 4, 2003 Page 2 Attachment 1: Invoice 1-AlS-File 2939 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent LO 0,-- ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE HARRIS PUBLIC UTILITY BILLING SYSTEM AND ASSOCIATED SOFTWARE MODULES 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 2939 TO HARRIS COMPUTER SYSTEMS IN THE AMOUNT OF $37, 318.08). 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 pans 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 "File Number" 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 2939 Harris Computer Systems $ 37,318.08 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, M AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-File 2939 02~04~03 #4S AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: February 4, 2003 Materials Management Questions concerning this acquisition may be directed to Jim Coulter 349-7194 ACM: Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of a Diaphragm Chemical Feed Pump; providing for the expenditure of funds; and providing for an effective date (Bid 2927-Diaphragm Chemical Feed Pump awarded to Environmental Improvements, Inc. in the amount of $57,850). BID INFORMATION This equipment will be used to replace the existing liquid chemical feed equipment at the Lake Lewisville Water Plant. The equipment was purchased and installed in 1981 as part of a liquid chemical feed facility. The new equipment will allow automatic adjustments of chemical feeds based on operator input and process water flow rates. The existing equipment will be used to treat our backwash recycled flow in order to address new regulations. This purchase is for the chemical feed equipment only. The Water Production staff will install the equipment and integrate this equipment with the plant's new supervisory control and data acquisition (SCADA) system. This bid request was sent to four potentially qualified vendors. The single response to this request is the result of Wallace and Tiernan's policy of only selling through distributors with protected sales areas. The brand and type were dictated by the issue of acquiring equipment that is consistent and compatible with the Ray Roberts Treatment Plant equipment. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its January 6, 2003 meeting. RECOMMENDATION We recommend that Bid 2927 be awarded to Environmental Improvements, Inc. in the amount of $57,850. PRINCIPAL PLACE OF BUSINESS Environmental Improvements, Inc. Lewisville, TX ESTIMATED SCHEDULE OF PROJECT The equipment can be delivered within 35 days from receipt of an order. be completed prior to summer 2003. Agenda Information sheet February 4, 2003 Page 2 FISCAL INFORMATION This item will be funded from account 63004500.1350.40100. The installation should Attachment 1: Tabulation Sheet 1-AlS-bid 2927 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF A DIAPHRAGM CHEMICAL FEED PUMP; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2927-DIAPHRAGM CHEMICAL FEED PUMP AWARDED TO ENVIRONMENTAL IMPROVEMENTS, INC. IN THE AMOUNT OF $57,850). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER VENDOR AMOUNT 2927 Environmental Improvements, Inc. $57,850 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid Invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 3-ORD-Bid 2927 02~04~03 #4T AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Cary Tower 349-8424 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment; providing for the expenditure of funds therefore; and providing an effective date (Bid 2936-Fleet Heavy Equipment awarded to Future Equipment Co. in the amount of $175,246.14). BID INFORMATION This bid is for the purchase of three loader/backhoes with 36-month buy back agreements. Two units will be assigned to the Water Utilities Division and one unit will be assigned to the Electric Operations Division. The two Water Utility backhoes are replacements for buy back units and the Electric Operations backhoe is a replacement for an eight-year-old unit. The backhoes are powered by an EPA Tier II compliant diesel engine. RECOMMENDATION We recommend this bid be awarded to the lowest responsible bidder based upon net cost after the 36-month buy back agreement is exercised. 36-Month Item# Qtv Description Supplier Purchase Price Buy Back Net Cost 1 3 Loader/Backhoe Future Equipment $58,415.38 $30,000 $28,415.38 Co. Total $175,246.14 $90,000 $85,246.14 At the end of 36 months, Future Equipment Co. will buy back the loader/backhoes for $30,000 each. The lower price offered by Pioneer Rental failed to meet specifications for engine horsepower, digging depth, and breakout force. Currently, Pioneer Rental is not listed as a factory authorized dealer for new equipment Item 2-Hydraulic Excavator will not be awarded at this time. This item will be rebid due to the bidder exceptions on different line items. Agenda Information Sheet February 4, 2003 Page 2 PRINCIPAL PLACE OF BUSINESS Future Equipment Co. Euless, TX ESTIMATED SCHEDULE OF PROJECT Delivery can be accomplished within 60 days from receipt of an order. FISCAL INFORMATION This acquisition will be funded from Motor Pool account 810001.8535. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2936 I-- Z ill Z 0 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF FLEET HEAVY EQUIPMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2936-FLEET HEAVY EQUIPMENT AWARDED TO FUTURE EQUIPMENT CO. IN THE AMOUNT OF $175,246.14). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NUMBER VENDOR AMOUNT 2936 1 Future Equipment Co. $175,246.14 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid Invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 3-ORD- Bid 2936 02~04~03 #4U AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: February 4, 2003 Materials Management Questions concerning this acquisition may be directed to Eva Poole 349-7735 ACM: Kathy DuBose, Fiscal and Municipal Services SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the purchase of furniture for the North Branch Library; providing for the expenditure of funds therefore; and providing an effective date (Bid 2938-North Branch Library Furniture awarded to the lowest bidder for each item in the total amount of $262,166.92). BID INFORMATION This bid is for the furnishings and accessories for the North Branch Library. The types of furnishings specified in the bid include: miscellaneous seating, tables, shelving, equipment, and table lamps for each division and service area within the library facility. The service areas include Adult, Young Adult, Children's, Reference, Circulation, Program Room, Meeting Room, Staff Lounge, Coffee Bar, and Workrooms. RECOMMENDATION We recommend award of this bid to the lowest responsible bidder for each item as listed below for a total amount of $262,166.92: Item Group/Manufacturer Bidder Cost 1. A. Bernhardt BKM 2. B. Bretford TUSA 3. C. Dakota Jackson BKM 4. D. Demco BKM 5. E. Egan Visual TUSA 6. F. Howe Furniture Corp. Business Interiors 7. G. KI BKM 8. H. Keilhauer BKM 9. I. Kron Business Interiors 10. J. Leland International Business Interiors 11. K. MJ Industries Libra Tech 12. L. Peter Pepper Business Interiors 13. M. Russ Basset BKM 14. N. Tsao BKM Total $ 5,576.92 $16,115.81 $58,725.68 $ 3,280.05 $ 1,257.53 $47,075.96 $ 4,397.19 $16,972.80 $11,805.72 $ 4,930.60 $78,240.71 $ 3,561.43 $ 3,104.73 $ 7,121.79 $262,166.92 Agenda Information Sheet February 4, 2003 Page 2 PRINCIPAL PLACE OF BUSINESS Business Interiors Irving, TX BKM Total Office of Texas Dallas, TX Libra-Tech Corporation Argyle, TX TUSA Office Solmions, Inc. Carrollton, TX ESTIMATED SCHEDULE OF PROJECT The delivery date for the furniture is eight weeks from the date of receipt of order. The delivery date for shelving is twelve weeks from the date of receipt of order. FISCAL INFORMATION Funding for the furnishings will be provided from bond fund account 100005703.1365.40100. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2938 LU Z I.L 113 T O'~ '~ 113 113 CI ~ O ~ o'1 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF FURNITURE FOR THE NORTH BRANCH LIBRARY; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2938- NORTH BRANCH LIBRARY FURNITURE AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH iTEM IN THE TOTAL AMOUNT OF $262,166.92). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NUMBER VENDOR AMOUNT 2938 1,3,4,7,8,13,14 BKM Exhibit A 2938 2,5 TUSA Exhibit A 2938 6,9,10,12 Business interiors Exhibit A 2938 11 Libra Tech Exhibit A SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 3-ORD-BID2938 EXHIBIT A Item Group/Manufacturer Bidder Cost 1 2 3 4 5 6 7 8 9 10. 11. 12. 13. 14. A B C D E F G H I J K. L. M. N. Bernhardt Bretford Dakota Jackson Demco Egan Visual Howe Furniture Corp. Ki Keilhauer Kron Leland International MJ Industries Peter Pepper Russ Basset Tsao BKM $ 5, TUSA $16, BKM $58, BKM $ 3, TUSA $ 1, Business Interiors $47, BKM $ 4, BKM $16, Business Interiors $11, Business Interiors $ 4, Libra Tech $78, Business Interiors $ 3, BKM $ 3, BKM $ 7, Total $262, 576 92 115 81 725 68 280 05 257 53 075 96 397 19 972 80 805 72 930 60 240 71 561.43 104.73 121.79 166.92 02~04~03 #4V AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Cary Tower 349-8424 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the purchase of one 5 cubic yard and one 6 cubic yard rubber-tired loader; providing for the expenditure of funds therefore; and providing an effective date (Bid 2940-Rubber-Tired Loader- 5 and 6 Cubic Yard awarded to the lowest responsible bidder for each item for a total amount of $473,991). BID INFORMATION This bid is for the purchase of a 5 cubic yard and a 6 cubic yard rubber-tired wheel loader with 36-month buy back agreements. These units will be assigned to the Beneficial Reuse Division for use in the City's composting operation. Both loaders are additions to the Motor Pool fleet. The motor grader and loader are powered by EPA Tier II compliant diesel engines. RECOMMENDATION We recommend this bid be awarded to the lowest responsible bidder based upon net cost after the 36-month buy back agreement is exercised. 36-Month Item # Description Supplier Purchase Price Buy Back Net Cost 1 5 Cu. Yd. Rubber- Holt CAT $178,141 $115,633 $ 62,508 Tired Loader 2 6 Cu. Yd. Rubber- Romco Equip. $295,850 $186,600 $109,250 Tired Loader Company At the end of 36 months, Holt CAT and Romco Equipment Company will buy back the rubber- tired loaders for $115,633 and $186,600 respectively. The total buy back amount is $302,233. PRINCIPAL PLACE OF BUSINESS Holt CAT Fort Worth, TX Romco Equipment Company Dallas, TX Agenda Information Sheet February 4, 2003 Page 2 ESTIMATED SCHEDULE OF PROJECT Delivery of the loaders can be accomplished within 80-120 days of receipt of an order. FISCAL INFORMATION The acquisition of this equipment will be funded from Motor Pool Fleet Equipment account 810001.8535. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2940 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF 5 CUBIC YARDS AND ONE 6 CUBIC YARD RUBBER TIRED LOADER; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2940-RUBBER-TIRED LOADER-5 AND 6 CUBIC YARD AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH ITEM FOR A TOTAL AMOUNT OF $473,991). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER ITEM VENDOR AMOUNT 2940 1 Holt CAT $178,141 2940 2 Romco Equipment Co. $295,850 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid Invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 3-ORD-Bid 2940 02~04~03 #4W AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET February 4, 2003 Materials Management Kathy DuBose, Fiscal and Municipal Services Questions concerning this acquisition may be directed to Cary Tower 349-8424 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the purchase of one 32 ft. quarter frame end dump trailer; providing for the expenditure of funds therefore; and providing an effective date (Bid 2942-32 Ft. Quarter Frame End Dump Trailer awarded to the lowest responsible bidder in the amount of $27,995). BID INFORMATION This bid is for the purchase of a 32 ft. 26 cubic yard quarter frame end dump trailer. The unit will be pulled by an existing truck tractor and assigned to the Street Drainage Division. The trailer is a motor pool fleet addition. The primary use will be to haul spoils from drainage construction sites and materials for maintenance and repair projects. RECOMMENDATION We recommend award of this bid the lowest responsible bidder, CMC Trailer Dist., in the amount of $27,995. PRINCIPAL PLACE OF BUSINESS CMC Trailer Dist. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT Delivery for this equipment will be 4-6 weeks from the date of an order. FISCAL INFORMATION This trailer will be funded from account 640700.8535. Agenda Information Sheet February 4, 2003 Page 2 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 2942 Z U.I U.I 1.1_ ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF ONE 32 FT. QUARTER FRAME END DUMP TRAILER; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 2942-32 FT. QUARTER FRAME END DUMP TRAILER AWARDED TO THE LOWEST REPONSIBLE BIDDER IN THE AMOUNT OF $27,995). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; 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 bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER VENDOR AMOUNT 2942 CMC Trailer Dist. $27,995 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids 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 Bid Invitations, Bid Proposals, and related documents. SECTION 3. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, 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, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. SECTION 4. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids 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: 1-AIS- Bid2942 02~04~03 #4X AGENDA INFORMATION SHEET AGENDA DATE: February 4, 2003 DEPARTMENT: Legal CM/DCM/ACM: Herbert L. Prouty, City Attorney SUBJECT A resolution of the City of Denton urging the Texas Congressional Delegation to support providing funding for Presidem Bush's $3.5 Billion First Responder Initiative during the 108~h session of Congress. BACKGROUND The Texas Municipal League has asked each Texas city to adopt a resolution requesting passage of federal legislation for funding for First Responders and send it to both U.S. Senators from Texas and the appropriate member(s) of Congress. Homeland Security Director Tom Ridge told National League of Cities (NLC) leaders that the White House supports prompt approval of $3.5 billion in homeland security funding targeted to local and state government. At its March 22 meeting, the TML Board of Directors adopted the NLC policy position on homeland security. That position is reprimed in its entirety below. As the leaders of the nation's cities and towns, we recognize the new responsibilities that have been thrust upon all levels of American government as a result of the September 11 terrorist attacks. Emergency preparedness and response - always a vital role for America's cities and towns - require a new approach to ensure preparedness for "actions of intent" in addition to the forces of mother nature and tragic accidents. Homeland security is: · A responsibility that America's cities and towns are ready, willing, and able to assume as the from line of homeland defense. The quick and heroic response of police, firefighters, and emergency workers in New York City; Washington, D.C.; Arlington, Virginia; and rural Pennsylvania on September 11 shows that local govemmems are already well-equipped to handle this new role. · A responsibility that will never go away. We recognize that protecting the homeland is a long- term commitment that requires careful planning, committed cooperation, sufficient funding, constant training, and a true local-state-federal partnership. · A responsibility that will require dedication of new public funds to ensure long-term readiness for threats that were only considered a remote possibility before September 11. Those threats are real now, and every city, village, and town across America must have a comprehensive plan for homeland security that is written, tested, communicated, and funded. America's cities and towns have already committed significam local efforts to ensure homeland security. Presidem Bush has proposed nearly $38 billion in new funds for homeland security in his FY 2003 budget, including $3.5 billion for a first responder initiative. To achieve a true federal-local partnership for homeland security, we call upon the federal government to: · Provide direct funding to local governments, the first responders, to enhance local efforts with incentives for regional collaboration and without any match requirements. We believe getting federal resources into the hands of local officials directly, without going through state governmems, will maximize results. Programs such as the Community Developmem Block Grant, Community Oriented Services, Local Law Enforcement Block Grant, and Transportation Efficiency Act for the 21 st Century have all demonstrated the value of direct funding to produce positive results. We are concerned that even a 25 percent "in kind" match could be an obstacle for communities that have the greatest need for federal support to enhance local efforts. And we are committed to creating regional partnerships, particularly among smaller communities, to maximize the resources and strengthen the response. · Improve and expand direct communication with first responders on critical homeland security issues. We need to work together to share information so that messages on risks, needs, activities, and plans are communicated clearly and consistently. Just as local officials are the from line of homeland defense, we are also the from line of information sharing. We believe this close and consistent communication will work best if there is a central coordinator for homeland security who has the information, resources, and authority to ensure effective information sharing and interaction with first responders. In addition to these vital communication processes, radio and data imeroperability is essemial to effective from line response. · Develop and share guidelines, standards, and protocols that will ensure reliable, consistem, timely, and redundant preparedness on the front lines. Our ability to protect vital resources in our cities and towns and to support federal efforts will be greatly enhanced through timely federal guidelines and protocols on a range of issues - regional airport security, border crossings, and public health resources, just to name a few. · Recognize and support the value of local comrol over from line response and local knowledge of the community to maximize resources and evaluate risks and vulnerabilities. The success of our shared commitmem to homeland security requires that every community across America assumes responsibility for developing, testing, and communicating emergency response plans and responding, if necessary. We know our communities, and we will be there first in the case if an emergency. OPTIONS Staff recommends adoption of this resolution. 1. The City Council may adopt this resolution or direct staff to make corrections or amendments. 2. The City Council may decline to send this resolutions to our Texas Delegation in the Senate and in Congress. FISCAL IMPACT This resolution would allow federal funds to be allocated directly to First Responders. Respectfully submitted: Herbert L. Prouty City Attorney S:\Our Documents\Legislation\TML-NLC Position on Homeland Security.doc S:\Our Documents\Resolutions\03\Homela~d Security Resolution.doc RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON URGING THE TEXAS CONGRESSIONAL DELEGATION TO SUPPORT PROViDiNG FUNDING FOR PRESIDENT BUSH'S $3.5 BILLION FIRST RESPONDER INITIATIVE DURING THE 108TM SESSION OF CONGRESS; AND PROViDiNG AN EFFECTIVE DATE. WHEREAS, the 107th Congress passed legislation creating the Department of Homeland Security; and WHEREAS, the legislation creating the new departmem did not provide funding for President Bush's $3.5 Billion First Responder Initiative; and WHEREAS, the First Responder Initiative was intended to provide funding to help cities provide planning, training, equipmem and other resources to meet the challenges of preparing for and responding to terrorist attacks; and WHEREAS, Texas cities have been required to spend millions in additional monies to implemem heightened security measures since September 11,2001; and WHEREAS, Texas cities are experiencing severe budget shortfalls because of their new homeland security functions and the downturn in the economy. NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. The City of Demon strongly encourages members of the Texas Congressional delegation to actively support passage of an appropriations bill that includes the $3.5 billion First Responder initiative to provide money for all Texas cities to help cities pay for some of the resources needed to meet the cities' new responsibilities for homeland security. 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 EULINE BROCK, MAYOR BY: S:\Our Documents\Resolutions\03\Homela~d Security Resolution.doc APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 02~04~03 #5A AGENDA INFORMATION SHEET AGENDA DATE: February 4, 2003 DEPARTMENT: Planning and Developmem Department CM/DCM/ACM: Dave Hill, Assistant City Manager 349-8314 ~:~'~-"~ ~' SUBJECT - Z02-0058 (309 Fry Stree0 Cominue a public hearing and consider adoption of an ordinance rezoning approximately 0.4 acres from a Dowmown Residemial 2 (DR-2) to a Dowmown Commercial Neighborhood (DC- N) zoning district. The site is generally located at 309 Fry Street north of Oak Street. Mixed-use multi-family and a restauram are proposed. BACKGROUND Applicam: Patrick Will DeNon, Texas The applicam has submitted an application to allow for a mixed-use developmem for the existing structure on the site. They are currently allowed to develop dwellings above a retail type business, but not a restaurant in the DR-2 zoning district. The proposed DC-N zoning would allow them to develop both dwellings above a business and a small restauram. Public notification and property owner responses are provided in Attachmem 4. As of this date staff has received two opposing responses from property owners within 200 feet of the subject site. However staff received a retraction from one. The applicant has requested the continuance in order to comact the other property owner in opposition for possibility of retraction as well. Currem opposition is at 24%; therefore, a super majority vote will be required for City Council to approve the zoning change requested. City Council cominued the public hearing for this rezoning petition on January 21, 2003 at the request of the applicam, to allow time for discussions with a neighboring property owner. As of January 28, 2003, staff had not been advised of any changes to neighboring property owner opposition. OPTIONS 1. Approve as submitted. 2. Deny. 3. Postpone consideration. 4. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval (4-3, Apple, Johnson & Roy opposed). ESTIMATED PROJECT SCHEDULE The subject property is not platted. The property may require platting depending on necessary improvements. PRIOR ACTION/REVIEW The following is a chronology ofZ02-0033, commonly known as 918 Avenue A: Application Date - DRC Date- Planning and Zoning Public Hearing - Date: October 25, 2002 Date: November 7, 2002 Date: December 4, 2002 No Neighborhood meeting was held FISCAL INFORMATION Future development of this property under the new DC-N zoning will increase the assessed value of the city. No short-term public improvements that are the responsibility of the city will be necessary. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map, Property Owner Responses) 4. Photographs 5. Minutes from December 4 Planning and Zoning Meeting 6. Draft Ordinance and Exhibit A 7. Owner Application Prepared by: Autumn Speer Planner I Respectfully submitted: Larry Reichhart, ASLA, AICP Assistant Director of Planning and Development ATTACHMENT 1 Staff Analysis Summary of Zoning Request The applicant is requesting one parcel of land totaling approximately 0.4 acres be rezoned from its current Downtown Residential 2 (DR-2) to a Downtown Residential Commercial Neighborhood (DC-N) zoning district. The requested zoning change allows the applicant to use the existing residence for multi family apartments and restaurant use on the lower floor. Existing Condition of Property Property History. February 20, 2002 - The subject property was placed in the Downtown ResideNial 2 (DR-2) zoning district and land use classification by Ordinance 2002-040. The property is also located within the Fry Street Impact Area, however is lies outside of the overlay district. Prior to the adoption of the DevelopmeN Code, the property was zoned Single Family-7 (SF-7) The subject property curreNly coNains one single-family home that is being used for renal units. AdjaceN zoning: North: DowNown ResideNial 2 (DR-2) zoning district - multi-family apartmeNs South: DowNown ResideNial 2 (DR-2) zoning district - multi-family and attached single family East: DowNown ResideNial 2 (DR-2) - multi-family apartmeNs West: DowNown ResideNial 2 (DR-2) - multi-family and attached single family Comprehensive Plan Analysis The subject site is located in the "Downtown University Core District" future land use area. This area is iNended to have a mix of educational, resideNial, retail, office, service, govemmeN, cultural and entertainment development. It is a place where residents can live, work, learn, and play in the same neighborhood. The DeNon Plan ideNifies the following Primary ResideNial Land Use Principles: Preserve Neighborhoods: The preservation of existing and future neighborhoods can be achieved by demanding and establishing design and construction standards that are fair and evenly applied. (page 35) Promote a Diverse Housing Stock: The residential component of the Land Use Plan allows all types of people to live in DeNon by allowing a variety of housing types, sizes and prices. The housing stock should reflect the demographics and economic structure of the community. (page 35) Limit Sprawl: The resideNial componeN of the Land Use Plan should guide developmeN patterns that limit sprawl, accommodates projected housing demand, and allows quality high density developmeN where it is close to jobs, shopping, schools and transit. (page 35) 3 The proposed zoning does promote a diversity of housing stock and the increased density would limit sprawl as this area is identified by infill land use compatibility. New development will be compatible with the existing uses and zoning of the surrounding properties at this time. The general area surrounding the site includes a variety of Downtown University Core Zoning, including Downtown Residential 1 and 2 (DR-1 and DR-2) and Downtown Commercial General (DC-G). The majority of the properties located within two hundred feet of this site are rental units with both single and multi-family type dwellings. The density of the existing multi-family dwellings in the area appears to be greater than that allowed by DR-2 zoning. The proposed zoning would also allow higher density student housing near the University of North Texas which is desired by the future land use plan. The proposed restaurant use would be compatible for the area as well. Just south of the site is the Fry Street retail and restaurant area utilized primarily by UNT students. The restaurant would be within walking distance of several multi-family dwelling and the university. Development Review Analysis Access and Connectivity Currently the access to the property is from Fry Street. Fry Street is identified as a local street by the Denton Mobility Plan. It is anticipated the surrounding road system will be sufficient to handle increased traffic generated from this proposal. Public Infrastructure Currently the infrastructure in this area is adequate to serve the proposed development. Development Code/Zoning Analysis Current DR-2 zoning allows for dwellings above businesses, but does not allow a restaurant. The proposed DC-N zoning district allows both dwellings above businesses and restaurants as long as they are limited to sit down only and no drive up service is permitted. Additionally restaurants are also limited to no more than 100 seats and no more than 4,000 square feet of restaurant area. The primary difference between the DR-2 zoning district and the DC-N zoning district are that DC-N does not allow single-family housing and the density allowed for housing is more than doubled from 30 to 72. Other differences are summarized below: Single Family P N Accessory Dwelling Units P N Bed & Breakfast L (9) P Theatres Less than 1000 N P Restauram or Private Club N L (11) Professional Services and Offices L (15) L (17) Commercial Parking Lots N L (28) Administrative Facilities SUP L (14) Production Studio SUP P Bakeries N L (21) Veterinary Clinics SUP L (26) DC-N 2500 72 29 500 80% DR-2 4000 30 12 500 75% Staff Findings Provide findings 1. The proposed zoning change is compatible with The Demon Plan and surrounding land uses. 2. The proposed zoning change would provide infill developmem and higher density residential uses that are compatible with the Future Land Use Plan. ATTACHMENT 2 Maps NORTH Location/Zoning Map LOCATION MAP Scale: None ATTACHMENT 3 Public Notification NORTH Notification Map Scale: None Public Notification Date: November 21,2002 200' Legal Notices* sent via Certified Mail: Number of responses to 200' Legal Notice · In Opposition: 1 · In Favor: 0 · Neutral: 0 13 Percent of land within 200' in opposition: 24 % *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 Property Owner Responses Soraya Fletcher 600 Partridge Argyle, Texas 76226 Donald Moore PO Box 50904 Denton, Texas 76201 Opposed Retracted Opposed "There is a existing park space problems around the campus. Commercial zoning can further this problems and infringe on for my my property and create hardship tenants" 315 Fry Street "No Parking for restaurant" 305 Fry, 223/301 Fry, 302~306 Fry, 405 and 408 Fry Contract 228 Bryan *A copy of the original notice can be picked up at City Hall West, 221 N. Elm Denton TX 76201 ATTACHMENT 4 Photographs ATTACHMENT 4 Photographs Cond, .~nselt m 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page I61 COMMISSIONER APPLE:That moves us ID Item No. 15 which is also a public hesring. And, again, Ms. Speer will present and Iql open the public hearing. MS. SPEER: Good evening once again, Commissioners. Agenda Itean No. 15 concerns a request to rezone approximately .4 acres from a Downtown Residential 7 8 !lO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 zoning district to a Downtown Commercial Neighborhood zoning district. The applicant -- the site is generally localed at 309 Fry Street just north of Oak Street. The applicant is requesting the zoning change ID allow for multi-use of the structure. It's an existing single-family structure that has been converted into aparm~ents. This is a picture of the site. What they would like to do is they're proposing a restaurant use on the lower floor and keep the existing apartment units on the upper floor. The existing Downtown Residential 2 zoning district does allow them ID do the mixed use but only a retail on the first floor and the residential units on the second floor. They arc at an opposition of 36.5 percent. Two landowners in the area have opposed. This is file site notification area. The red shows the aress that arc opposed. They're opposed pr/marily for parking reasons, as you can sec in your backup. The adjacent zoning, the proposed zoning is Page 163 COMMISSIONER ROY: [ understood what you said about considering the shape of the land and everything, but the backup indicates that if we change from DR-2 to DCN, that the person who owns the property could in fact put in 29 bedrooms on that site. ls that correct? Page 162 1 compatible with this area. Primarily all of the sites 2 within the area are rental units. Most of them all have 3 been homes that have been converted into apartments. 4 These are some -- this is across the street, across Fry 5 Street, the site itself. This is the current zoning. As 6 you can see, it's all Downtown Residential 2 and then the 7 proposed zoning, the DCN. 8 The primary difference between the zoning 9 districts is the Downtown Residential 2 allows a 10 single-family use, the DCN docs not. There are some other 11 differences as far as what type of retail, what type of 12 commercial uses you can do. The density does increase 13 with the DeN. ~t doubles, a little over doubles from 30 14 units per acre to 72 units per acre. However, it is -- 15 you need to consider the fact of the site restraints 16 depending on parking requirements and things of that 17 nature as to what they can actually do with the site. 18 Staff finds that the proposed zoning change 19 is compatible with the Denton Plan and the surrounding 20 uses and the proposed zoning change would provide infill 21 development and higher density residential uses that are 22 compatible with the future land use ptan. That conctudes 23 my presentation. 24 COMMISSIONER APPLE: Thank you. We have 25 some questions. Cormnissioner Roy. MS. SPEER: lhat's tile maximum bedrooms allowed, correct. COMMISSIONER ROY: okay, Thank you. COMMISSIONER APPLE: commissioner Holt. COMMISSIONER HOLT: would you put back up the slide that showed the opposition7 Ali of those in orange are in opposition? MS. SPEER: It's two landowners. The 3f5 and the 316 arc one landowner and 305, 223,302, all those are another landowner. They both own aparUnent complexes in the area. COMMISSIONER HOLT: SO it's the landowners. MS, SPEER: It's the property owners, correct. Yes. All of the residents came back. None of those addresses seemed to work. COMMiSSiONER HOLT: okay. So that pushes it up to, what, 32 percent? MS, SPEER: 36.$, COMMISSIONER HOLT: 36,5. Page 164 1 MS. SPEER: Correct. 2 COMMISSIONER HOLT: okay. Thank you. 3 COMMISSIONER APPLE: co~mnissioner Powcll. 4 COMMISSIONER POWELL: YOU said that the 5 developer, owner, whatever was expecting to put a 6 restaurant there. And then Mr. Roy brought up 26 bedrooms 7 or something. Is that assmning that this will be torn 8 down and new aparunents would be built there? 9 MS. SPEER: NO. The applicant is proposing 10 to actually usc the existing house. The 22 shows the 11 maximmn that you could do for the site if you started from 12 scmteh. Of course, if you're going to have restaurant 13 use and the residential use, you can't do that with the 14 space and the parking rcquire~nents that are required. But 15 that shows you the worst case scenario. 16 COMMISSIONER POWELL: Alt right. And 17 second question, I have to assmne that if you put a i 18 restaurant there, that there will be parking requimnents 19 for that restaurant. 20 MS. SPEER: Correct, 21 COMMISSIONER POWELL: And they'll have to 22 be met before the permit is issued for the restaurant and 23 that thefre off-street parking requirements; is that 24 correct? 25 MS. SPEER: I would assmne that they would PLANNING AND ZONING COMMISSION 12/4/2002 Page 161 -Page 164 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 t6 17 18 19 20 21 22 23 24 25 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 Page 165 be both on-street and on-site parking requirements because it is in the Fry Street ~rea. COMMISSIONER POWELL: I'm peaking over to Mr. Reichhart here. MR. REICHHART: They would be able to utilize some on-street parking, whatever is in front of the property, but it would be, due to the narrowness o~' the lot, the majority would have to be on-site. But they could use some on the street. COMMISSIONER POWELL: SO they'd either have to rent space on another property or get space on this existing property in some fashion or other to make it work? MR. REICHHART: Right. COMMISSIONER POWELL: Thank you. COMMISSIONER APPLE: commissioner Roy. COMMISSIONER ROY: J~lSt tO make sure we're on the same page, I understand that the property owner has indicated a proposal for a restaurant. MS. SPEER: correct. COMMISSIONER ROY: which is fine and we can always use a good restaurant in town. But, in fact, if it is changed to this new zoning, this person, if they sold the property or changed their mind tomorrow, if you will, they could in fact demolish that property and build 29 Page 166 bedrooms on that property; is that correct? MS. SPEER: If they could meet alt the parking requirements, landscaping requirements, all the site design requirements, correct. COMMISSIONER ROY: oh, sure. Right. I assume because that's what you said here in this document that the property is big enough to do that. Not that this particular individual plans that but I think we have to keep that in mind if we make a zoning change. Thank you. COMMISSIONER APPLE: commissioner Johnson. COMMISSIONER JOHNSON: what's the small i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 Page 167 anyone to tear it down. Unless they needed parking back COMMISSIONER APPLE: colmnissioner Mulroy, COMMISSIONER MULROY: Il' the zoning is granted and we start with the restaurant, would the zoning classification allow for a beer and wine license or a liquor license? MS. SPEER: I believe since they're in a wet area of town, it would. COMMISSIONER MULROY: okay, So this has the potential to evolve into a wet situation, let's put it that way, MS. SPEER: COlTect. COMMISSIONER MULROY: okay. Thank you, COMMISSIONER APPLE: colrmfissioner Watkins. COMMISSIONER WATKINS: Thank you, Madmn Looking at this picture and I drive by today, I Chair. don't see any place for parking for a restaurant. I mean -- MS. SPEER: I don't either. COMMISSIONER WATK[NS: I'm for development but with this house flint Cormnissioner Johnson was talking about, they have a driveway and I believe that Fry Street is no parking on either side of the street, And we know Scripture is loaded up with cars. Page 168 MS. SPEER: If t'm not mistaken, the applicant believes that they' Il get a lot of foot traffic. I know that Fry Street has lower parking requirements for that area. However, they are going to have some issues depending on how many seats they have. COMMISSIONER WATKINS: well, that's a nice trim house. MR. REICHHART: The parking requirements for a restaurant are one parking space per four seats, one space per 100 square foot of gross leasable floor area, whichever is less. And a minimmn of three parking spaces building behind that house7 MS. SPEER: I believe it's used for a residential rental unit, COMMISSIONER JOHNSON: Okay. But that wouldn't be possible under a DCN, right? MS. SPEER: NO. 12 13 14 15 16 17 is required. So it depends on how much of the building would be converted. I would hnagine they coutd get some parking spaces in thc mar of the property if they tore down the existing structure, depending on how they arranged it on-site. So, you know, it might be a balancing act between how much parking can I get; COMMISSIONER JOHNSON: It would have to be tom down or something, right? MS. SPEER: I betieve it would be grandfathered in as an existing use. Would it not, Larry? MR. REICHHART: correct. COMMISSIONER JOHNSON: It would be grandfathered in? MS. SPEER: Right. We wouldn't require 18 therefore, that's how much restaurant. It might be 19 working backwards this time. 20 COMMISSIONER APPLE: Thank you, Is the 21 applicant present? 22 MR. LUSTER: They couldn't make it but I 23 have some information to present for them, if t may, 24 COMMISSIONER APPLE: Certainly. If you'll 25 come down and give your name and address. PLANNING AND ZONING COMMISSION 12/4/2002 Page 165 - Page 168 CondenseltTM Page 169 I MR. LUSTER: ltello. Good evening. My name 2 is Paul Luster and I live at 1007 Boliver here in town. 3 The applicant actually desires to build what I consider to 4 be a cafe style restaurant. Their intention is to be open 5 only in the morning and to cater primarily to walk-in 6 traffic, cooking things such as crepes and Belgun waffles, 7 drink coffee and tea. I believe, it's my understanding 8 they currently have ten parking spaces on the property. 9 And, once again to reiterate, they do plan to have 10 primarily walk-in, walk-out business. They sort of 11 envision kind of like the drive-through donut shack but 12 not quite -- the stone sort of business model but in a less 13 drive-through sort of scenario. Walk through, if you 14 will, restaurant. 15 They do plan to retain the upper floors, the t 6 top two floors as rental properties. They have owned this 17 house for more than ten years and have had renters in 18 there for those ten plus years. And, once again, like you 19 said, their intention is a half a day scenario, more than 20 likely weekdays and Saturdays onIy, and no intention to 21 sell beer or wine at this point and I don't think in the 22 future either. That's all I have. Thank you very much. 23 COMMISSIONER APPLE: could you indicate 24 where the ten parking spaces that currently exist are? 25 MR. LUSTER: Yes, ma'am. I believe they're 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 t9 2o 21 22 23 24 25 Page 170 in the rear of the property, yes. COMMISSIONER APPLE: Thank you. Is there anyone else who wishes to address this item? Seeing no one coming forward, I'm going to close the public hearing, Staff, do you have any additional co~mnents? Commissioner Page 171 I if you do that, you'll see that we have an entire area :2 zoned oP,-2 and then there will be this one tiny little 3 spot with a different zoning. And while the owner has 4 stated good intentions and it makes a lot of logic to what 5 he wants to do, once the zoning has changed, we have lost 6 any kind of control over changing his mind or selling the 7 property and it ending up with a site which now he could 8 have 12 bedrooms. If he decided to build them, he could 9 build 29. And I don't think it's wise to take an area, 10 and I do realize what the ama is like now, but I don't 11 think it's wise to take an area and carve out a small area 12 like this in the middle of it and change the zoning. So I 13 will be voting against the motion. 14 COMMISSIONER APPLE: commissioner Johnson. 15 COMMISSIONER JOHNSON: Yeah. I agree with 16 that. The zoning wil£ survive the current owner and we'll 17 be right back in here one day trying to figure out how 18 come this is zoned differently. So I'll be voting against 19 it, also. 20 COMMISSIONER APPLE: commissioner Mulroy. 21 COMMISSIONER MULROY: well, Pit address 22 those cmmnents and speak in support of the motion in that 23 if you'll look at the zoning map in the backup and go from 24 your persona[ history and knowledge of the Oak Street 25 area, realize that even though it's zoned DR-2, the vast Page 172 majority of those properties between Oak Street and Scripture are multi-family, either converted older structures or new apamnents. So you're really looking at a higher density multi-family including the Campus Apa~nents there Powdl. COMMISSIONER POWELL: A question of staff. I'm assmning that some of those ten would have to be retained for the rental units. MI'{. RE[CHHART: That's CO1TeCt, COMMISSIONF~ POWELL: SO the restaurant would have to be -- restaurant parking would have to be in addition to what's required for the rental units. MR. REICHHART: That is correct. COMMISSIONER POWELL: Thank you. COMMISSIONER APPLE: co~mnissioner Holt. COMMISSIONER HOLT: I make a motion to approve. COMMISSIONER MULROY: secoIld. COMMISSIONER APPLE: We have a motion to approve and a second. Commissioner Roy, COMMISSIONER ROY: while I applaud the idea of going into business here, Ym reluctant to interfere with anyone's business plan. I have to look at the zoning map that's attached to the last page of our handout. And 6 and not strictly DR-2. and then if you look at and count 7 the lots, you're five lots from the coimnercial district, 8 the Dc-o there on Oak Street where all those little 9 cstablislnucnts are. And then you have some establislnnents 10 to the north and nolahwest, again if you count the lots, 11 five or six Iots away. 12 I don't see this as a radical departure from 13 the university climate and what's really going on thca~ 14 and I would suggest you put that DR-2 designation out of 15 your mind and visualize what that neighborhood really is 16 and what fl~e student activities are there. And I think 17 this would be complimentary rather than adverse to it. 18 Thank you. 19 COMMISSIONER APPLE: seeing no other -- 20 Commissioner Roy. 2t COMMISSIONER ROY: yeah. Thank you. I mn 22 cognizant of the area. I suggest if you were to look at 23 the site and go north along Fry Street, that I believe at 24 least three of those homes arc single-fanfily homes fi'om 25 Scripture down to that. It appeared to me in looking at PLANNING AND ZONING COMMISSION 12/4/2002 Page 169 - Page 172 CondcnscltTM Page 173 2 And I don't know how many across the street 3 are single-fm~ily. It's not obvious. And I accept that 4 there's a wide variety of uses in there, but again I come 5 back to just looking at the whole zoning and it just 6 doesntt seem smart to just take a hole out of it and 7 change it. I think we saw thc result of that in earlier 8 discussions tonight what that can lead to. 9 I do accept that this is quite a different l0 area than the residential area on Oak but I feel we're 11 looking for trouble and I'm, again, I'm reluctant to 12 interfere with the current owner's business plan. 13 COMMISSIONER APPLE: commissioner Powell. 14 COMMISSIONER POWELL: I'd like to point out 5 to my fellow Commissioners that under the old zoning 6 ordinance, I would have probably been voting against this. 7 And I'm not even in favor of the new zoning ordinances 18 I've discussed in the past but it's here and the people in 19 the Denton wanted it apparently and everybody of 20 importance, with the exception of me, voted for it. And 21 it was for diversity and diversity is what we're getting 22 here so I'll be voting for it. 23 COMMISSIONER APPLE: Since there are no 24 other Commissioners waiting to speak, I would like to say 25 that I will be voting against the motion. My concern is Page 174 1 not with the intentions of the current owner and what they 2 want to do. Pm sure they have the best intentions and 3 envision something that would be wonderful. People 4 walking in and, you know, having breakfast and, you know, 5 maybe kind of an Austin-like kind of flavor to it. But 6 what my fear is is, as it wa~ brought up, thc beer and 7 wine license and being that every property surrounding 8 this property is opposed to it and they are the ones who 9 are going to live with the consequences of our action most 10 directly, I cannot vote for it. Any further discussion? Vote, please. The motion carries 4-3. (COMMISSIONERS APPLE, ROY AND JOHNSON VOTED IN OPPOSITION.) 11 12 13 14 15 16 17 18 19 2o 21 22 23 24 25 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 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 PLANNING AND ZONING COMMISSION 12/4/2002 Page 175 Page 176 Page 173 -Page 176 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM DOWNTOWN RESIDENTIAL 2 (DR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO DOWNTOWN RESIDENTIAL COMMERCIAL NEIGHBORHOOD (DC-N) ZON1NG DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY 0.4 ACRES OF LAND LOCATED AT 309 FRY 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. (Z02-0058) WHEREAS, Patrick Will has applied for a change in zoning for approximately 0.4 acres of land commonly known as 309 Fry Street and more particularly described in Exhibit "A" attached hereto and made a part hereof as Exhibit "A" (the "Property") from Downtown Residemial 2 (DR-2) zoning district classification and use designation to Downtown Residential Commercial Neighborhood (DC-N) zoning district classification and use designation; and WHEREAS, on December 4, 2002, the Planning and Zoning Commission recommended approval of the requested change in zoning; and WHEREAS, the City Council finds that the change is consistem with the Comprehensive Plan; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The zoning district classification and use designation of the Property approximately is hereby changed from Dowmown Residemial 2 (DR-2) zoning district classification and use designation to Dowmown Commercial Neighborhood (DC-N) zoning district classification and use. SECTION 2. The City's official zoning map is amended to show the change in zoning district classification. SECTION 3. 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 4. 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 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the DeNon Record-Chronicle, a daily newspaper published in the City of Demon, Texas, within ten (10) days of the date of its passage. 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 Patrick & Dawnree Will 209 E. University Dr. Denton, TX 76209 City of Denton Planning & Zoning Denton, TX RE: Zoning change 309 Fry St. From DR2 To DCN Friday, October 25, 2002 To whom it may concern: My wife and I are planning to open a restaurant on of the first floor of 309 Fry. Our plans include renting the other units at this property as residential dwellings. This arrangement is very common in other upscale urban cities. We plan to offer breakfast foods, and cater to mostly neighborhood pedestrian traffic. With the other historical houses now gone, and apartments surrounding this property, we feel the restaurant would be a benefit t~he neighborhood and the city. With kind regards, I am, sincerely, P~rrick M. Will 02~04~03 #6A AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: February 4, 2003 Police Jon Fortune, Public Safety and Transportation Operations SUBJECT Consider an appeal from Ali A1-Khafaji regarding costs imposed for mowing fees in accordance with Section 20-72 of the City of DeNon Code of Ordinances in a hearing coNinued from December 10, 2002. BACKGROUND On August 16, 2002, Code Enforcement submitted a work order to the City's contractor to mow the property at 3311 E. McKinney, owned by Ali A1-Khafaji. The coNractor performed the services on September 5, 2002. Code EnforcemeN notified Mr. A1-Khafaji on April 5, 2002 that the grass at 3311 E. McKinney was over twelve (12) inches high and in violation of City ordinance. The property was re-inspected on April 18, 2002, and had not been mowed. A certified letter was sen to Mr. A1-Khafaji on April 19, 2002. This notice plainly stated that it would be the final notice of the 2002 growing season and subsequeN violations would be abated without further notice. The property was re-inspected on May 2, 2002 and had been mowed. On August 15, 2002, the property was found to be out of compliance again. As stated above, the City's coNractor mowed the property on September 5, 2002. Unlike previous appeals, this situation deals with one very large lot rather than multiple, smaller contiguous lots. The pictures contained in Exhibit A illustrate the height of the grass and weeds prior to, and after, the property was mowed. On October 24, 2002, an invoice was mailed to Mr. A1-Khafaji detailing administrative charges in the amouN of $80.00 and mowing charges in the amouN of $342.00, for a total of $422.00. Section 20-72(g) of the Code of Ordinances provides for an appeal of costs imposed for the mowing of high grass and weeds to the City Council. It states: Within fifteen (15) days of the date the statemeN of costs is mailed to the owner of the premises, the owner may appeal the reasonableness of the charges billed for abating the condition to the city council by filing a written statement with the city manager or his designee, stating why the charges are unreasonable. The appeal shall be submitted to the city council for its review within a reasonable time after filing, if the council finds the charges unreasonable, it shall assess the costs, as it deems reasonable. The administrative charge shall not be appealable. Mr. A1-Khafaji submitted a letter of appeal of these charges that was received by City staff on November 7, 2002. In his letter, he states that he feels these charges are unreasonable because he has had the property mowed for $80.00 in the past. However, these charges are in accordance with the City Ordinance prescribing an administrative fee to cover the cost of staff time to investigate such violations and process the contractor work order. Additionally, the mowing fees are set by open bid. in this case, the contractor receives $90.00 per acre and the lot mowed consisted of 3.839 acres, for a total mowing fee of $342.00. While individuals may procure mowing services for much less, the City is required to bid out this service and must accept the lowest bid. During the initial hearing on December 10, 2002, Mr. A1-Khafaji alleged that the enforcement action taken was an act of retaliation on the part of City staff prompted by a complaint he filed with the Federal Bureau of investigation (FBi). He alleged that the FBi found that the City had violated his civil rights and this finding resulted in the termination of Code Enforcement Officers. As a result of this allegation, an internal investigation was initiated. Lt. Bob Summers conducted a thorough investigation, including interviewing Mr. A1-Khafaji, current and former Code Enforcement Officers, and Ron Watson, the investigating agent of the FBI. Lt. Summers concluded that the FBI did not find that the City nor any City employees had infringed on, or deprived Mr. A1- Khafaji of his civil rights; that Mr. A1-Khafaji's characterization of other events and the alleged involuntary termination of some former Code Enforcement Officers was not connected to the FBI's investigation; that Mr. A1-Khafaji's allegations of conspiracies or attempts by employees to discriminate against him through enforcement action regarding his properties is untrue; and that all past or current enforcement action, pending charges, or court cases have followed existing procedural protocol and are very well supported by articulated facts and evidence in accordance with common legal standards. Exhibit B contains the disposition of the FBI investigation that was received by the Police Department. Mr. A1-Khafaji alleged that either City staff or the mowing contractor damaged his fence by forcing entry in order to mow. Exhibit C clearly shows that the fence was already damaged in April 2002 before the property was mowed by the City the first time this mowing season, as well as illustrates the height of the grass in April 2002. Section 20- 72(d) of the Code of Ordinances states that the City may enter upon private property to abate a violation of the ordinances regulating grass and weeds. However, Code Enforcement or mowing contractors only enter property to abate violations when access can be gained without force, such as entry through an unlocked gate. Mr. A1-Khafaji portrayed himself to be civic-minded and characterized this violation as an exception, indicating that he consistently and routinely complies with the City ordinances regulating the maintenance of property. However, Code Enforcement records provide extensive evidence to the contrary, including the following: This property has had high grass and weeds in violation of City ordinance every year since July 2000. Each year, Code Enforcement has been forced to notify Mr. A1-Khafaji of these violations and employ some form of enforcement, varying from verbal to written notification to gain compliance. In addition to the high grass and weeds, one of the structures at this location, 3311 E. McKinney #B, was deemed substandard by the Construction Advisory and Appeals Board on December 19, 2002. The demolition of this structure was delayed due to the residents who were renting the structure from Mr. A1-Khafaji. The residents recently vacated the premises and the City is moving forward with demolition. Exhibit D contains recent photographs that illustrate the current condition of the structure. In addition to 3311 E. McKinney, Mr. A1-Khafaji owns several properties throughout the City. Since 1986, Code Enforcement has initiated numerous enforcement actions, ranging from written notification to abatement, at properties located at 805 S. Locust, 811 S. Locust, 1400 Teasley, 1023 Dallas Drive, 1025 Dallas Drive, 1807 Frame Street, and 202 Ruddell. In September 2000, Code Enforcement pursued three Municipal Court cases against Mr. A1-Khafaji for violations of ordinances regulating grass and weeds, trash and debris, and junked vehicles on his property located at 1023 Dallas Drive. At trial, Mr. A1-Khafaji was found guilty in all three cases and assessed $1,367 in fines and $267 in State costs, for a total of $1,634. Exhibit E contains pictures entered into evidence in that trial. Between 1986 and 1998, the City has contracted to abate violations on properties owned by Mr. A1-Khafaji. Mr. A1-Khafaji has failed to pay the assessed costs of the enforcement action, which resulted in liens being placed on four of his properties. He currently owes a total of $3,602.51, which includes $560.00 in administrative costs, $1,449.75 in mowing costs, and $1,592.76 in accrued interest. Exhibit F contains a detailed summary of the existing liens. OPTIONS 1. The Council can reject the appeal and deem the mowing fees reasonable. 2. The Council can accept the appeal and deem the mowing fees unreasonable and assess the costs, as it deems reasonable. RECOMMENDATION Staff recommends that the City Council reject the appeal and deem the fees reasonable. Mr. A1-Khafaji was given ample opportunity to mow the property prior to the City employing its contractor to mow. The fees are in accordance with ordinance and current mowing bid. Mr. Ali-Khafaji has repeatedly demonstrated an inability to maintain this property in compliance with the City ordinance regulating grass and weeds. PRIOR ACTION/REVIEW None. FISCAL IMPACT The City has incurred an expense of $342. There is no fiscal impact if the City Council rejects the appeal and Mr. A1-Khafaji pays the fee. If the City Council accepts the appeal, then the City will not recover the $342. Respectfully submitted, Charles Wiley Chief of Police Prepared by: Joanie Housewright Captain Operations Bureau EXHIBIT A 3311 E MCKINNEY 8-15-2002 CE0204-0097 3311 E MCKINNEY 8-15-2002 CE0204-0097 9-26-2002 3311 E MCKINNEY CE0204-0097 DEC-!?-2002 ~4:17 EXHIBIT B 992 42~ ?~0 992 ~2Z ?940 P. 0~/04 DJ I44~~$-35~4 DeHbie ~ranham; City of Denton Code Bnforcement - ~u~ject; Ali A1-Kha~aJi - Victim CIVIL RIGHTS Notice to Close File Date: April 2~, 2001 YOU ARE ADVISED THAT T~ ABOV~ FILE HAS BEEW CLOSED AS OF THIS DATE. No federal Jurisdiution because although victim (a landlord) claims he has . r¢ceive~ multiple citations for code violations due to his etknicity, there is no allegation of threats of'force or ~orce and therefore these allegations do not ~tate a claim u~aer 18 U.S.C. $ 24~. TO: Civil Rights Division S=san ~gn~h ....... , .... Civ~i! ~i=h~e ~i~i~.i~ ........ FO~ OBD-aS-A TDTP, L P, 04 EXHIBIT C 3311 E MCKINNEY 4-18-2002 CE0204-0097 EXHIBIT D 3311 E. McKinney #B EXHIBIT E 07/24/00 1023 Dallas Dr. 07/24/00: 07/24/00:1023 Dallas Dr. 07/24/00' 1023 Dallas Dr. 1023 Dallas Dr. EXHIBIT F CITY OF DENTON MOWING LIENS 1807 Frame Total 08/31/1993 12/31/2002 80.00 227.75 307.75 290.30 598.05 10/12/1998 12/31/2002 80.00 806.00 886.00 391.05 1277.05 $ 160.00 1,033.75 1,193.75 681.35 1,875.10 1025 Dallas Drive Total 11/08/1993 12/31/2002 80.00 33.00 113.00 105.51 218.51 08/03/1998 12/31/2002 80.00 28.00 108.00 48.23 156.23 $ 160.00 61.00 221.00 153.74 374.74 202 Ruddell Total 08/18/1986 12/31/2002 80.00 80.00 160.00 263.19 423.19 11/24/1998 12/31/2002 80.00 75.00 155.00 67.35 222.35 $ 160.00 155.00 315.00 330.54 645.54 3311 E McKinney Total 12/10/1987 12/31/2002 80.00 200.00 280.00 427.13 707.13 $ 80.00 200.00 280.00 427.13 707.13 $ 560.00 1,449.75 2,009.75 1,592.76 3,602.51