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September 7, 2004 Agenda
AGENDA CITY OF DENTON CITY COUNCIL September 7, 2004 After determining that a quorum is presem, the City Council of the City of Demon, Texas will convene in a Work Session on Tuesday, September 7, 2004 at 4:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: Receive a report from the Human Services Advisory Committee, hold a discussion, and give staff direction regarding the 2004-2005 Human Services Budget. Receive a report, hold a discussion and provide staff direction regarding the Demon Airport Council Outcome Statement. o Receive a report, hold a discussion and give staff direction regarding enhancements to the City of Demon Utility Bill. Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of September 7, 2004. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the City Council will not conduct a Closed Meeting and will convene at the time listed below for its regular or special called meeting. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Governmem Code, as amended, as set forth below. 1. Closed Meeting: mo Consultation with Attorney - Under TEXAS GOVERNMENT CODE Section 551.071. Receipt of legal advice from the City Attorney regarding the award of Special Commissioners and procedural options in condemnation proceedings styled The City of Denton, Texas v. Ed Wolski, et al., Cause No. ED-2003-01178 pending in the Probate Court of Denton County, Texas. Discuss and consider legal issues concerning University of North Texas's use of public right-of-way to provide multichannel video services to University of North Texas studems where to discuss these legal issues concerning the above stated matters with the attorneys in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and would jeopardize the City's position in administrative proceedings or in potential litigation. o Discuss and consider legal issues concerning the City of Demon's municipal drainage operation as it has and is being operated as a public utility as a drainage function of the Wastewater Utility System, under the City of Demon City Council Agenda September 7, 2004 Page 2 Municipal Drainage Utility Systems Act, in accordance with Ordinance No. 2001 - 428 and other applicable law, including the legal aspects of how it has functioned as a utility under the law as compared to other municipal operations where to discuss these legal issues in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING iN ACCORDANCE WiTH THE PROViSiONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE 'PUBLIC POWER EXCEPTION'). THE CiTY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Demon City Council on Tuesday, September 7, 2004 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE U.S. Flag Texas Flag "Honor the Texas Flag - i pledge allegiance to thee, Texas, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS Proclamations/Awards 1. Consider a Resolution of Appreciation for Benny Parkey. Recognition of staff accomplishments Presentation of repayment of startup funds from DCTA by Charles Emery, Chairman, and John Hedrick, Executive Director, of DCTA. 3. CITIZENS REPORTS Review of procedures for addressing the City Council. Receive citizen reports from the following: 1. Alan Johnson regarding the Planning and Zoning Commission and the gas well ordinance. 2. Carolyn Phillips regarding the elderly Black and unfriendly liens. 3. Dessie Goodson regarding responsibility. City of DeNon City Council Agenda September 7, 2004 Page 3 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-W). This listing is provided on the Consem Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consem Agenda. if no items are pulled, Consem Agenda items A-W below will be approved with one motion, if items are pulled for separate discussion, they will be considered as the first items following approval of the Consent Agenda. mo Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of front load refuse containers; providing for the expenditure of funds therefor; and providing an effective date (Bid 3196 - Annual Price Agreement for Front Load Refuse Containers awarded to Roll-Offs USA in the estimated amoum of $213,065). Bo Consider adoption of an ordinance awarding a comract for the purchase of materials, supplies, or services necessary for the purchase and maimenance of GE JMUX SONET Multiplexer equipment for Denton Municipal Electric as approved by the State of Texas General Services Commission Department of information Resources (DiR); providing for the expenditure of funds therefor; and providing an effective date (File 3198 - Purchase of GE JMUX SONET Multiplexer awarded to GE Multilin in the amoum of $432,578.76). Co Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the State School 12 Inch Water Line project; providing for the expenditure of funds therefor; and providing an effective date (Bid 3180 - State School Road 12 inch Water Line awarded to S.H.U.C., inc. in the amoum of $205,848). Do Consider adoption of an ordinance approving the expenditure of funds for the purchase of an itron Mobile Collection System for Denton Municipal Electric; 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 3193 - Purchase of itron Mobile Collection System to itron inc. in an amoum not to exceed $42,500). mo Consider adoption of an ordinance of the City of DeNon, Texas approving an agreement between the City of Denton and the Denton Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source in accordance with the provisions of the State law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3212 - Agreemem with the DeNon Record Chronicle in the amoum of $7.80 per column inch for an estimated award of $33,000). City of Demon City Council Agenda September 7, 2004 Page 4 Fo Consider adoption of an ordinance accepting competitive bids and awarding a contract for the rental of heavy equipment for various City departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 3195 - Rental of Heavy Equipment awarded to the lowest responsible bidder for each item as listed in Exhibit A). Go Consider adoption of an ordinance of the City of Demon authorizing an agreement between the City of Denton, Texas and Robson EMS Committee for legal services in connection with First Aid Responder Program as official volunteers to the City of Denton Fire Department Emergency Medical Services; providing for the expenditure of funds therefor; and providing for an effective date. Ho Consider adoption of an ordinance of the City Council of the City of Demon, Texas approving an agreement between the City of Denton and Habitat for Humanity of Denton County, providing for the terms of said contract; authorizing the City Manager to execute the agreement and to expend funds with respect to the agreement; and providing for an effective date. Consider adoption of ordinances of the City of Demon, Texas authorizing the City Manager to execute two Dark Fiber Lease Agreements by and between the City of Denton, Texas and the University of North Texas; authorizing the expenditure of funds therefor; providing for retroactive approval of the agreements; and providing an effective date. Jo Consider adoption of an ordinance authorizing the issuance, sale, and delivery of City of Demon Utility System Revenue Refunding Bonds, Series 2004, and approving and authorizing instruments and procedures relating thereto; and providing an effective date. K. Consider approval of tax refunds for the following property taxes: Name Reason Tax Year Amount ~i~lyT ~ iat~ nt $ 585 5 Lo Consider adoption of an ordinance of the City of Demon, Texas approving an Interlocal Cooperation Agreement between the City of Denton and the Denton County Transportation Authority providing LINK operations funding assistance for fiscal year 2004-2005; and providing an effective date. Mo Consider adoption of an ordinance approving a Commercial Operator Airport Lease Agreement between the City of Denton and Denton Airport Hangars, LLC; and providing an effective date. No Consider adoption of an ordinance of the City of Demon, Texas, providing for the renaming of Cypress Boulevard to Russell-Newman Boulevard; and providing an effective date. City of Demon City Council Agenda September 7, 2004 Page 5 Oo Consider adoption of an ordinance of the City of Demon, Texas, amending Ordinance No. 2001-095 by increasing fares for one-quarter mile taxicab service from $0.40 to $0.50 for each one-quarter mile pursuam to Chapter 27, Article VI of the Code of Ordinances of the City of Demon, Texas, titled Taxicabs, Limousines, Shuttles; providing that a schedule of fees shall be maintained on file in the office of the City Secretary; providing a savings clause; providing a severability clause; and providing an effective date. iD, Consider adoption of an ordinance of the City of Demon, Texas amending Chapter 27 relating to vehicles for hire by amending Article VI Part B Section 27- 159 titled "Application for Annual Permit" by removing the requiremem of a permanem and established place of business within the City of Demon and by adding the requiremem of a local phone number; providing a severability clause; a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. Qo Consider adoption of an ordinance of the City Council of Demon, Texas authorizing the City Manager to execute a Water Main Pro-Rata Reimbursement Agreement between the City of Denton and Mar-Properties, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the City; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. Ro Consider adoption of an ordinance of the City Council of Demon, Texas authorizing the City Manager to execute a Water Main Pro-Rata Reimbursement Agreemem between the City of Demon and Quail Creek North, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the City; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. So Consider adoption of an ordinance of the City Council of Demon, Texas authorizing the City Manager to execute a Sewer Main Pro-Rata Reimbursement Agreemem between the City of Demon and Quail Creek North, Ltd. for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the City; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. To Consider approval of the minutes of July 16, 20, 22-23, and 27, 2004 and the minutes of August 3, 5, 10, 16, 17, 18, and 24, 2004. Uo Consider approval of a resolution appointing members to the Board of Directors of the North Texas Higher Education Authority; and declaring an effective date. go Consider adoption of an ordinance of the City of Demon, Texas authorizing payment of the award of Special Commissioners into the Registry of the Court in condemnation proceeding styled The City of Denton, Texas v. Ed Wolski, et al., Cause No. ED-2003-01178 pending in the Probate Court of Denton County, Texas; and declaring an effective date. City of Demon City Council Agenda September 7, 2004 Page 6 Wo Consider a request for an exception to the Noise Ordinance for the purpose of a music festival, the 7a~ Annual Blues Festival, sponsored by the Denton Black Chamber of Commerce. The event will take place at the North Texas Fairgrounds on Friday, September 17a~ from 4:30 until 11:00 p.m. and Saturday, September 18, 2004, from 4:00 p.m. to 12:00 p.m. The exception is specifically requested for an increase in the maximum allowable decibels for an outdoor music festival. 5. PUBLIC HEARINGS mo Hold a public hearing on a proposal to adopt a tax rate of .59815 per $100 valuation, which will exceed the lower of the rollback rate or 103 percent of the effective tax rate. B. Hold a public hearing and receive citizen input on the 2004-05 proposed budget. 6. ITEMS FOR INDIVIDUAL CONSIDERATION mo Consider approval of a resolution of the City Council of the City of Demon, Texas announcing that it will vote on a tax rate at its regularly scheduled meeting of September 21, 2004; providing for publication of notice of such vote on the tax rate; and providing an effective date. Bo Consider adoption of an ordinance of the City of Demon, Texas authorizing the City Manager to accept a grant award from the Texas Department of Housing and Community Affairs for an Emergency Shelter Gram Program and take all other actions necessary to administer the grant under the Emergency Shelter Grant Program; and providing for an effective date. Co Consider adoption of an ordinance establishing rules and procedures for the City of Demon Council Ethics Committee for the purpose of advising the City Council of the City of Demon on the Ethics Policy for Elected and Appoimed Officials - City of Demon, Texas; and providing an effective date. Do Consider nominations/appoimmems to the City's Boards and Commissions and consider appointing a committee to recommend nominations to the Economic Development Partnership Board. mo Consider approval of a resolution requesting that the Texas Municipal League support legislation for funding for the creation and funding for regional rail systems, including an optional sales tax increase; and providing an effective date. Fo Consider approval of a resolution asking that the Texas Municipal League support legislation that automatically removes the ad valorem tax exemption or reduces the ad valorem tax exemption to the ratio of student occupation for Higher Education Authorities; and providing an effective date. Go Consider approval of a resolution requesting that the Texas Municipal League support legislation that provides for a method of road assessment damages or increased fees paid by heavy trucks in using city, county or state roads, and providing an effective date. City of DeNon City Council Agenda September 7, 2004 Page 7 Ho Consider approval of a resolution requesting that the Texas Municipal League support legislation for funding options, including funding for maimenance and operation, of city owned or city/private partnerships for convemion cemers; and providing an effective date. Consider approval of a resolution of the City of DeNon City Council requesting the Texas Municipal League to support legislation that repeals Section 403.003 of the Texas Local Government Code, the drainage exemption for state entities; and providing for an effective date. Jo New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. Ko Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Lo Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Mo Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of DeNon, Texas, on the day of ,2004 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. AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: CM/DCM/ACM: Economic Development Wendy Nalls X7234 Mike Conduff ~ SUBJECT Receive a report from the Human Services Advisory Committee, hold a discussion, and give staff direction regarding the 2004-2005 Human Services Budget. BACKGROUND The Human Services Budget provides funding to community organizations for the provision of health and human services to the citizens of Denton. The Human Services Advisory Committee (HSAC) was recently directed to reduce the General Fund portion of the 2004-05 Human Services budget request by one-third or $99,300. Applying the reduction results in amended budget request of $352,630, which consists of $198,667 from the General Fund and $153,963 from Community Development Block Grant Funds. The amended request reflects a 21.97% reduction from the original 2004-05 budget request and a 19.38% reduction from the 2003-04 Human Services budget. OPTIONS Option 1: Accept the Human Services Advisory Committee recommendation for 2004- 05 Human Services Budget funding allocations to community organizations. Option 2: Deny the Human Services Advisory Committee recommendation and provide direction on the allocation of funds to community organizations for the 2004-05 Human Services Budget. RECOMMENDATION The Human Services Advisory Committee recommends consideration of the revised allocations. Additional recommendations will be discussed during the HSAC presentation to Council. ESTIMATED SCHEDULE OF PROJECT 2004-05 Human Services budget funds are awarded to community organizations for the provision of services for the 2004 Human Services Program Year, which is October 1, 2004 to September 31, 2005. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Human Services Advisory Committee approved the revised HSAC 2004-05 Human Services budget funding allocations of General Fund and Community Development Block Grant Funds to community organizations for use during the 2004 Human Services Program year. FISCAL INFORMATION If adopted in the City's 2004-05 budget, the total 2004-05 Human Services budget would be $352,630, which consists of $198,667 in General Revenue Funds and $153,963 in Community Development Block Grant Funds. Prepared by: Wendy Nails Human Services Coordinator Respectfully submitted: Linda Ratliff Economic Development Director Human Services Advisory Committee Revised 2004-2005 Human Services Budget Recommendation The agencies receiving Community Development Block Grant Funds are highlighted in gray 2004-2005 2004-2005 Agency Service Beneficiaries 2003-2004 Original Revised Recommendation Recommendation 1 Adult Day Care of North Texas Elderly, Developmentally Disabled $9,000 $0 $0 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 2 AIDS Services of North Texas Persons Affected by HIM/AIDS $15,000 $16,000 3 CASA Abused Youth Needing Placement $8,000 $10,000 $8,643 4 Children's Advocacy Center Youth-Victims of Abuse, SexualAssault $9,650 $12,000 $9,360 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: City of Denton- After School Action 5 Site/TRAC School Aged Youth/Disabled Youth $17,000 $16,600 City of Denton -King's Kids Day 6 Kamp School Aged At Risk Youth $19,800 $20,000 City of Denton- Owsley Summer 7 Playground School Aged At Risk Youth $19,500 $22,000 8 Community Food Center Needy Families, Individuals $3,000 $3,000 $2,340 9 Cumberland Children's Home Families Needing Transitional Housing $5,000 $3,900 10 Denton Christian Preschool Preschool Youth $30,000 $31,200 $30,336 11 Denton City-Co. Day School Preschool Youth $35,000 $38,000 12 Denton Co. Friends of the Family Victims of Relationship Violence $32,400 $35,000 $28,900 13 Denton County MHMR (SIERRA) Adults with Mental Illnesses $9,000 $9,000 $7,020 14 Denton Family Resource Center All Families $7,650 $10,000 $7,800 15 Fairhaven Retirement Home Elderly $8,880 $6,926 :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 16 Family Health Care, Inc. Indigent Pregnant Women $30,000 $30,000 17 Fred Moore Day Nursery Preschool Youth, Infants $39,000 $43,000 $39,540 18 HelpNET Needy Families, Service Agencies $22,500 $0 $0 19 HOPE, Inc. Homeless, Potentially Homeless $30,000 $31,000 20 Interfaith Persons Needing Utilities Assistance $17,250 $18,250 21 Owsley Comm. School- Adult Educ. Youth, Families living in Owsley additior $14,750 $0 $0 22 Owsley Comm. School- After School School Aged At Risk Youth $13,000 $14,000 $10,920 23 Riding Unlimited Persons with Disabilities $0 $1,500 $1,170 24 RSVP Elderly $7,400 $10,000 $7,800 25 Salvation Army Homeless Individuals, Families $15,000 $17,000 26 Sickle Cell Disease Association Families Impacted by Sickle Cell $4,500 $8,000 $7,740 27 Singing Oaks Church of Christ Homeless Individuals, Families $0 $12,500 $0 28 SPAN Elderly $29,000 $30,000 $23,400 Total $437,400 $451,930 $352,630 General Fund Recommendation $ 198,667.00 C.D.B.G. Recommendation $ 153,963.00 Total $ 352,630.00 *Note: In the 2004-2005 Recommendations, the amount recommended for Denton City County Day School includes $32,768 from C.D.G.B. and $2,872 from general fund AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: CM/DCM/ACM: Airport and Transit Operations Jon Fortune, Assistant City Manager SUBJECT Receive a report, hold a discussion and provide staff direction regarding the DeNon Airport City Council Outcome Statement. BACKGROUND On May 28, 2002 in a planning session, the DeNon City Council discussed long-range airport development. The conversation resulted in an outcome statement that was provided to the Airport Advisory Board and was used in the creation of the current Airport Master Plan. Subsequem planning sessions were conducted in October 2002 and May 2003 when the City Council revisited the airport outcome statement resulting in minor modifications. The current airport outcome statement is attached. The City Council has requested an opportunity to revisit the airport outcome statement to confirm the direction given to staff and the Airport Advisory Board or make further modifications. OPTIONS I. Confirm existing Denton Airport Outcome Statement. II. Provide additional direction to Airport Advisory Board and Airport staff. PRIOR ACTION/REVIEW The Demon City Council established a Council Outcome Statement for the Demon Airport on May 28, 2002. Airport staff provided additional information to City Council in an Airport White Paper on October 1, 2002. Council reviewed and modified the Airport Outcome Statemem during a May 20, 2003 Transportation White Paper presemation. EXHIBITS: Airport Outcome Statement Respectfully submitted: Mark Nelson Director of Airport and Transit Operations City of DeNon Airport Outcome Statement Paragraph Style The Demon Municipal Airport is a first class Aviation Cemer that serves as the home for corporate aircraft from all over the North Texas Region as well as locally owned general aviation aircraft. An officially designated Super Reliever Airport, Demon Municipal is self-reliam financially. It serves as a major mid-cominem refueling cemer, with appropriate services to accommodate business users of the airport. Land in the vicinity of DeNon Municipal Airport is municipally owned or comrolled, and fully served by municipal infrastructure and utilities, making DeNon Municipal a major economic development benefit to the community. Denton Municipal is an anchor for the western industrial complex of the city and serves as an economic developmem gateway for all of DeNon. Active multiple partnerships exist at Denton Municipal. Demon Municipal Airport is nationally recognized, and has an aviation education institute. The public understands and supports the value of the Airport to the Demon economy and future. There is no encroachmem of residemial developmem near the Airport, and developmem in and around the Airport shall not be inharmonious or incompatible with future Airport activity. Amended May 20,2003 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Utility Administration Howard Martin, 349-8232 SUBJECT Receive a report, hold a discussion and give staff direction regarding enhancemems to the City of DeNon Utility Bill. BACKGROUND On January 6, 2004, Customer Service began producing a new utility bill for the City of Denton citizens. Since the inception, we have received several request for additional enhancements and modifications for better ease of interpretation. Below is a listing of all the latest changes that were effective with the beginning of Cycle 1 on August 1, 2004. · :. Account Number, When accessing accoum activity through the Web or our automated phone system, citizens encountered problems when using their account number, located in the upper left corner of the bill. The leading "Zero" in the account number was removed to correct this problem. · :. Customer Number, small percentage of citizens use their customer number as their "PIN" number. Our invoice contained an account number only. We have now included the customer number on all invoices, which is located in the lower left corner on the bill. · :. Amount Due, We have updated the "Amount Due" portion on the bill to read, "Total Amount Due by". This is consistent with the due date and is reflective on the remittance portion as well. · :. Utility Services - Totals, We have further simplified for easy viewing, each services total, viewable in "BOLD" text. · :. Vacation Village, The "Amount due by" and the "Total due if not paid by" now reflect the correct "l-day" change and calculation for penalty per the Tariff requirement. · :. Usage History Bar Graphs, Some portions of the City have the water and electric meters read on different days. Our invoice was printing both dates on both graphs, and was confusing to read. The bar graphs now indicate one "bar" and date per month. We had one customer concern about the penalty due date falling on a weekend. If we get any additional comments where this is impacting customers paying on time, we will revisit this item. There were a few other changes made that are transparent to the reader / viewer that have made a significam improvemem to the overall appearance and processing on the new bill. We are excited about all the changes in the utility bill and believe we have now addressed all the immediate concerns. EXHIBITS 1. Copy of New Bill 2. Copy of Vacation Village's New Bill Respectfully submitted: Charles C. Atkinson Manager of Customer Service Account 3850227 - 1 ! Cycle 20 Service address BOB-O-LINK LN Last payment -175.00 Last payment date 07/28/2004 Service period 06/28/2004 to 07/28/2004 Bilting date 08/02/2004 Bilting days 30 Due date 08/16/2004 Usage History Electric Water Sign up for GreenSense Renewabie Energy today! Visit us ,online at www,dmepower.com or call 940 349-8700. Do the Green Switch! Effective September 1, 2004, Utilities Customer Service wil~ no anger accept Discover Card as a method of payment. Previous balance due immediately to avoid disconnection, Previous ba~ce S 211,14 Current balance 380,31 Total .amount due by 08/16/2004 591,45 Total due if paid after 08/21/2004 601,45 For more information, contact Utilities Customer Service at 940.349.8700 or visit www.dentonutilities.com. To schedule a water audit, call 940.349.7322. To schedule an energy audit, call 940.349.7137. Meter Rate Previous Current Mu~ti Usage Amount 0000037143 R2 1 00024557 00027069 1 2512 Electric 273.00 Electric total 273.00 Meter Rate Previous Current Multi Usage Amount 0000018724 WR .75 00003157 00003259 100 10200 Water 36.07 Wastewater 39.76 Drainage 3.35 Water total 79.18 Res dential Solid Waste 20.27 Sot d Waste Tota~ ' 20,27 Interest ,charge 2.09 Sales Tax 5.77 Total 7,86 LATE PAYMENT CHARGE 10,00 Keep this portion of your i)ill far yom.ir records. 0000385022711000000591452 Enroll in P-L-U-S ONE. Please indicate a monthly amount if you would like to assist iow-income families in paying their utilities, Please cai! to be removed from the program. LEnroll in Keep Benton Beautifui program. Please indicate a monthly amount if you would like to promote education and a diverse urban forest, P!ease tail to be removed from the program. Previous bslar~ce due immediately to avoid disconnection. Account Se~ice address Service period Previous bal~ce Total amount due by 08/16/2004 Total due if paid after 08/21/2004 3850227 - 11 3502 BOB-O-LINK LN 06/28/2004 to 07/28/2004 591,45 601.45 t1,,,I,I!,,,,I,II1,,,i,i,,,I,,11,,I,,,,I,,11,i,,11,,,,,I,I1,1,,i BOB O LINK LN DENTON, TX 76209- 4849 H,,,hlh,,,,IhllJ,,,,illl,,,ll,,,J,,I,,,J,lh,i,,,I,il CITY OF DENTON PO BOX 961082 ~ WORTH, TX 7616i -0082 Please return this portion and payment in '~h,e e~velepe p?ovided a~d m~ii !o DentoB Municips! Utilities, RO. Box 961082, Fad Worth, TX 76161-0082, Please make your chaok payable to DENTQN MUNICIPAL UTILITIES. To pay in person: Denton Municipal Uti!i'[ies, 601 E. Hickory St., Suite R Denton, TX 76205, Ph: 940.349.8700 Me'h'o: 972,434,2529 TDD: 800,735.2959 ADA/EOE/ADEA www, cityo~dentoo.com '~225 Account 8000218 - 00 Cycle 25 Service address LAKE VIEW LN Last payment -161,95 Last payment date 07/01/2004 Service period 06/30/2004 to 07/30/2004 Billing date 08/02/2004 Billing days 30 Due date 08/17/2004 Usage History Electric Water Effective September i, 2004, Uti~ities Customer Se~ice will no ~onger accept Discover Card as a method o,f Payment,, Keep this portion of your bill for your records. 0000800021800000000232587 Enroll in P-L-U-S ONE. Please indicate a monthly amount if you would like to assist !ow-income fami!ies !n paying their utilities, Please call to be removed from the program. Enroll in Keep Denton Beautiful program. Please indicate a monthly amount if you would like to promote education and a diverse urban forest, Please call to be removed from the program, Previous balance due immediately to avoid disconnection. Previous balance $ 66,32~ Current balance 166.26 Total amount due by 08/17/2004 232.58 Total due if paid after 08~1812004 242.58 For more information, contact Utilities Customer Service at 940.349.8700 or visit vcccw.dentonutilities.com. To schedule a water audit, calt 940.349.7322. To schedule an energy audit, call 940.349.7137. Meter Rate Previous Current Multi Usage Amount Meter Rate Previous Current Multi Usage Amount 0020080138 WRVAC 00054764 00056968 10 22040 Water 56.99 Wastewater 58.12 Water total 115.11 VV WTR REGULATORY CHARGE VV W/~/REGULATORY CHARGE W?~ DELINQUENT FEE ~R DELINQUENT FEE Total LATE PAYMENT CHARGE 0.57 0,58 25.00 25.00 51,15 3,16 Previous balance due k~mediate!y 'to avoid disconnection. Account Service address Service Period Previous balance Total amount due by 08/17/2004 Total due if paid after 08/18/2004 8000218 - 00 1895 LAKE VIEW LN 06/30/2004 to 07/30/2004 232.58 242,58 Ih,,I,li,,,,hllh,,h,l,,,I,IIl,,,h,!,lh,,!,!,,,hh,'!l,I LAKE VIEW LN DENTON, TX 76208-2080 Customer # ( 148117 ) IJ,.hlh,,,,ii,ih,,,,lllh,,Jl,,,I,,h,,hll,,h,,I,II CITY OF DENTON PO BOX 961082 FT WORTH, TX 76161 .-0082 Please return this portion and payment in the envy, lope provided and reail to Denton Munici;pa U~ililies, Re. Box 961082, Fort Worth, TX 78161-0082. P~ease make your check payable to DENTON MUNICIPAL UTILITIES, To pay in pemon: Denton Municipal Utilities, 601 E: Hickory St:, Suite E Denton, TX 78205, Ph: 940.349,8700 Metro: 972,434..2529 TDD: 800.735,2959 ADA/EOE/ADEA www, cityofdenton,com 216 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Vance Kemler 349-8044 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual comract for the purchase of from load refuse comainers; providing for the expenditure of funds therefore; and providing an effective date (Bid 3196-Annual Price Agreemem for From Load Refuse Comainers awarded to Roll-Offs USA in the estimated amoum of $213,065). BID INFORMATION This bid is for the annual contract to supply from load refuse comainers for the Demon Solid Waste Department. These items are carried in the Warehouse working capital inventory for easy access. RECOMMENDATION We recommend that this bid be awarded to Roll-Offs USA in the estimated amount of $213,065. PRINCIPAL PLACE OF BUSINESS Roll-Offs USA Durant, OK ESTIMATED SCHEDULE OF PROJECT This price agreemem will be in effect for a period of one year from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. FISCAL INFORMATION The items in this bid will be funded out of the Warehouse working capital amoum and charged back to the using department. Agenda Information Sheet September 7, 2004 Page 2 Attachment 1: Bid Tabulation 1-AlS-Bid 3196 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Bid' 3196 Attachment 1 Date' 8/3/04 Annual Contract For Front Load Refuse Containers ii Containers IA 20 3 Cubic Yard 450-65-050 $517.00 $10,340.00 $499.00 $9,980.00 IB 50 4 Cubic Yard 450-65-100 $628.00 $31,400.00 $575.00 $28,750.00 Sub totals $41,740.00 $38,730.00 I c 6 CubicYard Slant Safety Blue Recycle 450-65-155 $763.00 $15,260.00 $725.00 $14,500.00 i ~0 6G r c~ ~h~ c C~an~c~ i ~ewr 450-65-150 $763.00 $30,520.00 $725.00 $29,000.00 I D 30 6 Cubi~c Y~.a. rd Low TBD $763.00 $22,890.00 $769.00 $23,070.00 I 6 cu~i~r;r;'red iE ~o ..... P-r~,~','; .... -" TBD $763.00 $22,890.00 $769.00 $23,070.00 Sub totals $91,560.00 $89,640.00 I F 8 CubicYard Slant II 20 S a fe tcY oB~a~.PnRe~ Safety Blue Recycle 450-65-305 $897.00 $17,940.00 $865.00 $17,300.00 I ~ 8G~eb~cC,~an~(~i~oewrL 450-65-300 $897.00 $10,764.00 $865.00 $10,380.00 IH 13 8 C_u b~r;Y~l.re_d .Hi,g.h 450-65-400 $897.00 $11,661.00 $905.00 $11,765.00 Sub totals $85,215.00 $84,695.00 ~ _Gr.an.d $2:18,515.00 $2:1:3,065.00 ~ /01:a15 12 O._.o.a~ I - Equipment I Add for extra lids (to I A be ordered as needed I ,or replacement): i~ .~A Front Load3Cu/Yd 450-65-000 $22.00 $20.00 I~ ,!A Front Load4Cu!Yd TBD $25.00 $20.00 i~ ,~A Front Load ~ Cu/Yd TBD $27.00 $22.00 i ,~A Fronl Load 8 Cu/Yd TBD $27.00 $22.00 I Shipment 60 Days N/A ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF FRONT LOAD REFUSE CONTAINERS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3196-ANNUAL PRICE AGREEMENT FOR FRONT LOAD REFUSE CONTAINERS AWARDED TO ROLL-OFFS USA IN THE ESTIMATED AMOUNT OF $213,065). 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 NO VENDOR AMOUNT 3196 1, 2 Wastequip May Fab 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 ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-BID 3196 Bid' 3196 Exhibit A Date' 8/3/04 Annual Contract For Front Load Refuse Principle Place of 13usiness: ~ Durant, OK Front Load I Containers A 20 3 Cubic Yard 450-65-050 $499.00 13 50 4 Cubic Yard 450-65-100 $575.00 Sub totals 6 Cubic Yard Slant c Top I 20 Safety 131ue Recycle 450-65-155 $725.00 Container 2 40 Green Container 450-65-150 $725.00 6 Cubic Yard Low D 30 Profile T13D $769.00 6 Cubic Yard High E 30 Profile TBD $769.00 Sub totals 8 Cubic Yard Slant F Top I 20 Safety 131ue Recycle Container 450-65-305 $865.00 2 12 Green Container 450-65-300 $865.00 8 Cubic Yard Low G 50 Profile 450-56-350 $905.00 8 Cubic Yard High H 13 Profile 450-65-400 $905.00 Sub totals Grand Totals Optional 2 Equipment Add for extra lids (to A be ordered as needed for replacement): I N/A Front Load 3 Cu/Yd 450-65-000 $20.00 2 N/A Front Load 4 Cu/Yd T13D $20.00 3 N/A Front Load 6 Cu/Yd T13D $22.00 4 N/A Front Load 8 Cu/Yd T13D $22.00 Shipment N/A AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Sharon Mays 349-8487 SUBJECT Consider adoption of an Ordinance awarding a contract for the purchase of materials, supplies, or services necessary for the purchase and maintenance of GE JMUX SONET Multiplexer equipment for Denton Municipal Electric as approved by the State of Texas General Services Commission Department of Information Resources (DIR); providing for the expenditure of funds therefore; and providing an effective date (File 3198-Purchase of GE JMUX SONET Multiplexer awarded to GE Multilin in the amount of $432,578.76). FILE INFORMATION Denton Municipal Electric presently utilizes a 12-year old Magnum 100 network system for transporting the Supervisory Control and Data Acquisition (SCADA) and Motorola radio data. Parts for this network equipment can no longer be obtained, resulting in a serious compromise to the system's reliability. The Communications Division has researched the best possible replacement for this obsolete equipment and recommends the GE JungleMUX network system. The GE network equipment is designed for harsh substation environments and has the ability to work wit h both the old and new substation equipment. The JungleMUX equipment supports all of the current high speed data protocols including video, phones, door-access, Ethernet, and alarm notification for remote management. All of the features of the GE equipment are fully redundant, with a strong user group for support assistance. The cities of Austin and San Antonio both use and highly recommend the GE JungleMUX network system. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board recommended approval of this item at its August 9, 2004 meeting. RECOMMENDATION We recommend award of this item to GE Multilin in the amount of $432,578.76. PRINCIPAL PLACE OF BUSINESS GE Multilin Burnaby, B.C., Canada Agenda Information Sheet September 7, 2004 Page 2 ESTIMATED SCHEDULE OF PROJECT The equipment can be delivered and installed approximately 12 weeks from receipt of order. FISCAL INFORMATION Funding for this item will come from account 600524487.1355.3970. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Quote from GE Multilin 1 -AlS-File 3198 Attachment ~ GE Multi/in To: Denton Municipal Electric 8525 Baxter Place, Suite 100, Burnaby, B.C. VSA 4V7 Canada Tel: 604.421.8700 Fax: 604.421.8707 I Proposal: I QA40251C-SJ Attn: Mr. Harry Hettinger 1 5-J un-04 ~ ;,ag. i of I Terms of Payment: DELIVERY: ...... FOB: Net 30 Days Subj~t~ c~m~ 12 Weeks ARO Point of Shipping Item Qty Description Unit Price Total Price uss us~ 1.00 '86400 OC-12 JungleMUX System #1 1.01 1 Lot OC-12 System per Eqpt List $252,910 $252,910 1.02 t Lot Two OC-12 Systems per Eqpt List $219,307 $219,307 1.03 1 Lot Recommended Spares per Eqpt List $13,311 $13,311 1.04 1 Lot Additional Video System per Eqpt List $30,286 $30,286 1.05 1 Lot Spares for Video System per Eqpt List $2,937 $2,937 1.06 1 Lot First Application Management Discount ($88,188) ($88,188) ... Sub Total $430,s63 2.00 ~.6~P O C -! ~~.~.~...~y~!em ~ 2.01 I Lot OC-12 System per Eqpt List $437,047 $437,047 2.02 1 Lot Recommended Spares per Eqpt List $13,311 $13,311 2.03 1 Lot Additional Video S~tem per Eqpt List $28,154 $28,154 2.04 1 Lot Spares for Video System per Eqpt List $2,937 $2,937 1.06 1 Lot First Application Management Dis~unt ($81,846) ($81,846) Total $399,602~ 3.00 Options 3.01 1 Lot JungleMUX Training Course per Course Description $8,500 3.02 1 Lot Field Commissioning end Test Se~ices for System ~1 per Scope of Work $15,615 I ~ Included ~ Included Feder~ SMes T~ ~Excluded ..... State & Mu~cip~ S~es T~x ~Exduded offer expires wi~ days of the date set f~rth above ualess purchaser's acceptance ~s eece~ved by GE Powee Management prior to that date. Speci¢.l instructions: S}fippJng po~t: S hlppmg date: Completion date: Destination: Prices [] Include [] Exclude freight charges The warean~ period ("Watr~aty Pc,4od') isPA[ Montl~ from thc date of shipment A/I of us ... Always with unyielding integrity.., Tide: Dare: Signature: Pufch~ex's Order Noz This offer is subject to the terms on the face hereof and in the proposal enclosed with this o£fe~. Please reval all terms on the front and back of all pages, GE Mulfilin Bill Ponsati Sr. Sales Manager 15-Jun-04 By: Tide: Date: Sig~amre: Purchaser's Acceptance CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES August 23, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 23, 2004, at 9:04 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell and Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities EXCUSED: George Hopkins CONSENT AGENDA: 1) Consider approval of a purchase of an Itron Mobile Collection 2 System in amount not to exceed $38,570.25. 2) Consider approval of a purchase of G.E. Jungle MUX Network Equipment, including hardware components, software components, and total system support services in an amount not to exceed $432,578.76. 3) Consider approval of two Dark Fiber Lease Agreements between the City and the University of North Texas. Board Member John Baines moved to approve consent agenda items #1, #2 and #3, with a second from Board Member Phil Gallivan. The motion was approved by a vote of 6-0. Page 1 of 1 ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, SUPPLIES, OR SERVICES NECESSARY FOR THE PURCHASE AND MAINTENANCE OF GE JMUX SONET MULTIPLEXER EQUIPMENT FOR DENTON MUNICIPAL ELECTRIC AS APPROVED 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 3198-PURCHASE OF GE JMUX SONET MULTIPLEXER AWARDED TO GE MULTiLiN IN THE AMOUNT OF $432,578.76). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipmem, supplies or services in accordance with the procedures of state law on behalf of the City of DeNon; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipmem, supplies or services can be purchased bythe City through the Building and Procuremem 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, equipmem, 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 purchase order for materials, equipmem, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agem, are hereby approved: FILE NUMER VENDOR AMOUNT 3198 GE Multilin $432,578.76 SECTION 2. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procuremem Commission for such items and agrees to purchase the materials, equipmem, supplies or services in accordance with the terms, conditions, specifications, standards, quamities and for the specified sums comained in the bid documems and related documems filed with the Building and Procuremem Commission, and the purchase orders issued by the City. SECTION 3. That should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the 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 4. That by the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved purchase orders or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-File 3198 Page 2 of 2 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Jim Coulter 349-8948 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of the State School 12 Inch Water Line project; providing for the expenditure of funds therefore; and providing an effective date (Bid 3180-State School Road 12 inch Water Line awarded to S.H.U.C., inc. in the amount of $205,848). BID INFORMATION The State School Road 12" Water Line project was funded as part of the Capital Improvements Program for fiscal years 2001 and 2002 for the purpose of upgrading the City's water distribution system to better serve the southern part of the city. The project consists of constructing approximately 2,300 linear feet of 12-inch diameter PVC water line and 7 fire hydrants along State School Road from the James Woods Auto Park to Winston Road. Bids for the construction phase of this project were received on July 1, 2004. There were twelve bidders, one of which, a company called Lonestar Underground, was considered non-responsive. Staff was not able to properly evaluate Lonestar's bid submittal because of inconsistencies in their bid. The remaining eleven bids ranged from a low bid of $205,848.00 to a high bid of $347,500.60. The engineer's estimate for the project was $233,000. The bid tabulation is included as Attachment 1. Staff recommends bid award to the low bidder, S.H.U.C., inc., with a bid of $205,848.00. S.H.U.C., inc. meets all requirements for qualified low bidder for this project. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its August 9, 2004 meeting. RECOMMENDATION We recommend award of this item to S.H.U.C., Inc. in the amount of $205,848. Agenda Information Sheet September 7, 2004 Page 2 PRINCIPAL PLACE OF BUSINESS S.H.U.C., Inc. Weatherford, TX STAFF COST ESTIMATE The engineer's estimate for this project was $233,000. ESTIMATED SCHEDULE OF PROJECT This project is scheduled to begin the last week of September with an estimated completion date of the first week of December. FISCAL INFORMATION Funding for this project will be provided from account 630026515.1360.40100. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1 :Tabulation Sheet 1-AlS-Bid 3180 0 ~J LIJ ~ LIJ LIJ X m u >- r~' >- >- 0 X ~ u'} o u'} ~ rn 0 X o w ~ LU ~' LU LU 0 LLI I.~ LLI LLI 0 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES August 9, 2004 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 9, 2004, at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. PRESENT: Bill Cheek, Phil Gallivan, and Dick Smith EX OFFICIO MEMBERS Mike Conduff Howard Martin, ACM/Utilities EXCUSED: Charldean Newell George Hopkins John Baines The Public Utilities Board convened into Open Session at 9:00 a.m. CONSENT AGENDA: 4) Consider approval of award of Bid No. 3180 in an amount not to exceed $205,848 to S.H.U.C., Inc. for construction of the State School Road 12" water line project. Fisher also presented Bid No. 3180 for the State School Road Water Line project. Cheek moved to approve, with a second from Gallivan. The motion was approved by a vote of 3-0. Page 1 of 1 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE STATE SCHOOL 12 INCH WATER LINE PROJECT; PROViDiNG FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROViDiNG AN EFFECTIVE DATE (BID 3180-STATE SCHOOL ROAD 12 INCH WATER LiNE AWARDED TO S.H.U.C., INC. IN THE AMOUNT OF $205,848). 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 3180 S.H.U.C., Inc. $205,848 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 .,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-Bid 3180 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Sharon Mays 349-8487 SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of an Itron Mobile Collection System for Denton Municipal Electric; 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 3193-Purchase of Itron Mobile Collection System to Itron, Inc. in an amount not to exceed $42,500). BID INFORMATION The Mobile Collection 2 System will allow Denton Municipal Electric to read its Radio Frequency (RF) automatic meter reading (AMR) devices in a drive by mode. The system includes hardware and software components, first year customer support and training services. The Mobile Collection 2 System is the only system that is compatible with DME's AMR devices that are currently in place. Certain components of the Mobile Collection 2 are patented and the software is copyright protected. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board recommended approval of this item at its August 9,2004 meeting. RECOMMENDATION We recommend award of this item to Itron, Inc. in an amount not to exceed $42,500. The proposal amount of $38,570.25 does not include travel expenses for the 3 days of onsite labor. PRINCIPAL PLACE OF BUSINESS Itron, Inc. Spokane, WA ESTIMATED SCHEDULE OF PROJECT This item can be delivered and installed within six weeks of receipt of an order. Agenda Information Sheet September 7, 2004 Page 2 FISCAL INFORMATION This item will be funded from account 600813486.1350 3700 A. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Attachment 2: 1 -AlS-File 3193 Pricing Summary from Itron, Inc. Sole Source Letter A£tachment I Pricing Summary for City of Denton, TX MV-90 xi Migration, Single PC License ITEM PART NUMBER DESCRIPTION QTY UNIT PRICE EXTENDED PRICE (1) 1 MC2 2 MAPPING 3 SFR-0070-214 4 Support 5 Services Mobile Collection System 2.0 Mobile Collection Mapping Solution MV-90 xi, Single PC License Migration for 51 - 200 meters. First Year Customer Support MV-90 Installation and Training Services Project Management Services SUBTOTAL Software License Discount MC2 with Mapping Discoum 1 $50,000.00 $50,000.00 1 $10,000.00 $10,000.00 1 $4,388.00 $4,388.00 (2) $1,316.25 $1,316.25 (3) $4,560.00 $4,560.00 (4) $70,264.25 ($2,194.00) ~$~,~oo. oo) TOTAL $38,570.25 Notes and Assumptions (1) Taxes and freight not included. (2) The base MV-90 xi system includes remote interrogation, dale import, validation, editing and estimation, reports and graphs, data export including spreadsheet file format, data aggregation, and time-of-use. (3) Customer Support is prorated and based on the remainder of City of Denton's yeady support which is on a billing cycle of October thru September. (4) Pdce includes 3 days on-site labor. Per diem expenses of $275 per day and round trip aid'are at actual are not included and will be billed separately based on actual number of days and trips. Travel time is not included and will be billed at $100 per hour. Services are to be scheduled for mutually acceptable times. (5) Assumes that City of Denton will provide: All necessary database setup and administration, troubleshooting of database issues, and ongoing support. CIS interfaces to MV-90 Third-party components to run the MV-90 system, including PC hardware and software (e.g., operating system) (6) This system configuration and pricing is based on our current understanding of utility needs and the scope of work. Configuration and quantities are estimated. Further information or a change in scope may result in different pricing. Please refer to Itron's standard terms and conditions for delivery and payment, Pdces are valid for 90 days, BMR# W1972 Var2 Jun Itron, [nc, June 22, 2004 Page 1 of 1 ...... ~ Attachment 2 ~7 itrOn Efectric/ Gas ~ Water 2818 Norl~ Sullivan Road Spokane, WA 99216 509.924.9900 Tel 509.891.~5 Fax www. ltren.com June 24, 2004 Ms. Karen E. Smith Sr. Utility Buyer City of Denton 90 lB Texas Street Denton, TX 76209 Ph - (940) 349-7100 Fx - (940) 349-7302 Dear Karen: Please consider th/s letter as verification that Itron is the sole source provider of the total Mobile Collection 2 system, including hardware components, sofh~are components and total system support services, a comprehensive package of both sof~are and hardware support. Certain components of the Mobile Collection 9. are patented and the software is copyright protected. If you have any questions, please do not hesitate to call on me. Best Regards, fi Director Business Operations Kyle Tunnel, City of Denton Kevin Davis, Itron CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES August 23, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 23, 2004, at 9:04 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell and Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities EXCUSED: George Hopkins CONSENT AGENDA: 1) Consider approval of a purchase of an Itron Mobile Collection 2 System in amount not to exceed $38,570.25. 2) Consider approval of a purchase of G.E. Jungle MUX Network Equipment, including hardware components, software components, and total system support services in an amount not to exceed $432,578.76. 3) Consider approval of two Dark Fiber Lease Agreements between the City and the University of North Texas. Board Member John Baines moved to approve consent agenda items #1, #2 and #3, with a second from Board Member Phil Gallivan. The motion was approved by a vote of 6-0. Page 1 of 1 ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF AN ITRON MOBILE COLLECTION SYSTEM FOR DENTON MUNICIPAL ELECTRIC; 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 3193-PURCHASE OF ITRON MOBILE COLLECTION SYSTEM TO ITRON, INC. IN AN AMOUNT NOT TO EXCEED $42,500). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the following purchase of materials, equipment or supplies, as described in the "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 3193 Itron, Inc. $42,500 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 ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-File 3193 : AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Tom Shaw 349-7100 SUBJECT Consider adoption of an Ordinance of the City of DeNon, Texas approving an agreemem between the City of DeNon and the DeNon Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source in accordance with the provisions of the State law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3212-Agreemem with the DeNon Record Chronicle in the amoum of $7.80 per column inch for an estimated award of $33,000). BID INFORMATION This is an annual Agreemem with the DeNon Record Chronicle to publish legal notices for various City Departmems that are required by law to do so. The advertising will be paid by departmems such as: the City Manager's Office, City Secretary, Legal, Parks and Recreation, Planning, Police, Utility Administration and Purchasing. RECOMMENDATION We recommend award of this item to the Denton Record Chronicle in the estimated amount of $33,000. PRINCIPAL PLACE OF BUSINESS DeNon Record Chronicle Denton, TX ESTIMATED SCHEDULE OF PROJECT This Agreemem is for a 12 month period beginning July 27, 2004. FISCAL INFORMATION The using Departmems will provide funding for this item. Agenda Information Sheet September 7, 2004 Page 2 Attachment 1: Retail Advertising Agreement 1-AlS-File 3212 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON RECORD CHRONICLE; APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF LEGAL ADVERTISING SERVICES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF THE STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3212-AGREEMENT WITH THE DENTON RECORD CHRONICLE IN THE AMOUNT OF $7.80 PER COLUMN iNCH FOR AN ESTIMATED AWARD OF $33,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the following purchase of materials, equipment or supplies, as described in the "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 Demon Record Chronicle 3212 $33,000 SECTION 2. That the acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. That the City Manager is hereby authorized to execute any contracts relating to the items specified in Section I and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~:~ / /~/ 3-ORD-File 3212 ~ ' (.~/,/ 0 lttael~eat 1 RETAIL ADVERTISING AGREEMENT DENTON PUBLISHING COMPANY: You are hereby authorized to publish advertising for the undersigned in the Denton Record-Chronicle, Denton Time, TV Chronicle and/or The Grapevine Sun as specified below: A minimum of i--7~%C~ inches per month'S)for a period of [Q~ ~eeks beginning .'T~) ~t q ~'l , ~',,C122M , for'which the adve'ffi'l'~ agrees to pay the following rates per collm-ar~ch, per publication; payal~le mofithty is'u~d. ' Combination Buy (Daily) $15.00 C~mb~ation Buy (Sunday) $16.50 Combination Bu. qy Wednesday Plus ~ . _ . Denton Record-Chronicle (Daily) '-I, I:SC5 Denton Record-Chronicle (Sunday) ~Wednesday Plus Denton Time TV Chronicle The Grapevine Sun (Pickup Rate ) $5.00 Denton County Morning News (Daily) $15.00 Denton County Morning News (Sunday) $20.00 The terrm of this agreement are based on cash with order or thirty day accounts with approved~ the business office of the DF_IqTON RECORD-CHRONICLE. All rates are net. No rebates for accumulated lineag~Clr-~ Initial This agreement may be tenrdnated by either party for any reason at any time. If this agreement is terminated by either party, a termination surcharge, equal to the difference between current open rate and advertiser agreement rote, for all advertising placed under the terms of this agreement, will be added to the above named advertiser's billing. If a[the ~nd of the term of this agreement, advertiser has failed to meet lineage commitment, Denton Record-Chronicle will bill ~,~.~fPr the balance of the agr~m~nt or the rate difference based on accumulated lineage, whichever is the lesser amoun~ Depth R~uirements-:-Any ad running more than 18-1/2 inches in depth wilt be charged as 21-1/4 inches in dept Initial Request for Placement--We try to coml~ith customer section or page requests. However placement can only be guaranteed with a 35~ cost of ad charge applie~l. Initial ErromandAd_iustments-- Please check your ad the first day it runs to see that all information is correct. This will ensure your ad is exactly what you want readers to see. Denton Record-Chrordcle assumes no responsibility for errors appearing on original copy submitted by advertisers or his agency or approved proof of copy (except proof corrections). We must limit our responsi- bility, if any, to the charge for the space, ,and cannot be responsible for incorrect ad~..at~t~ er the first day of publication. Any errors or changes must be reported to Sales department the following business ~sfor errors in billing must be made within 30'days of date of invoice; otherwise, such claims will not be considered.~-~~ Initial Proofs / Cony and Layout Changes -- Upon request, proofs will be delivered to the advertiser provided the ad was submitted i~rioi to deaitiine and ihe ad.i~ 2~ i~/~ches or larger.~[~r~.layout changes totalling 25% or more of the ad will be subje.~ct to a production surcharge of 35% of th~ cost of the a~X~Z! Initial Tearsheets~-Tearshects are available upon request at no charge., up to five (5) tearsheets of each ad. Additional tearsheets may be requested for a charge of 25¢ each. Any request ma~ 45 days after publication date will be filled subject to availability. If no paper is available, a microfilm copy and publishers affiil .~j~N~y be substituted, minimum charge, $20. Tearsheets will be mailed at the end of the month unless otherwis~ requeste~ · Initial e~.'.~ Cancellation - Ads cancelled after deadline will be billed for the amount of space reserved by advertis Initial This agreement is valid and binding upon execution and is made subject to the regulations covering acceptance and publication of advertising with the DENTON PUBLISHING COMPANY, Advertiser Company Name C~_N-~J C~ ~-'~2X'Xtr121"l - Street Address .4') \ % ~, }f~C i/-~; ~'/'~ eli Mailing Address .... City/State/Zip Code ~X~_~, ~ Phone Number Name of Authorized Agent Title of Agent Signature of Agent Approved by. Date AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET September 7, 2004 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Tom Shaw 349-7100 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the rental of heavy equipment for various City departments; providing for the expenditure of funds therefore; and providing an effective date (Bid 3195-Rental of Heavy Equipment awarded to the lowest responsible bidder for each item as listed in Exhibit A). BID INFORMATION This bid is for the annual contract to supply the rental of heavy equipment to all City departments. From time to time, the City of Denton has a need for heavy equipment to supplement our fleet. This annual Agreement will allow us quick access to expensive equipment without the delay of the bid process, in addition, the annual Agreement for multiple items lends itself to more competitive pricing than incidental usage. No guarantee of any minimal usage is part of this Agreement and each rental will have an individual purchase order. The equipment list consists of the most commonly used sizes and types of heavy equipment. RECOMMENDATION We recommend award of this contract to the lowest responsible bidder for each item as listed below. Vendor Item Number Bane Machinery Continental Equipment Crescent Machinery Jagoe Public Company Holt CAT TKO Equipment Co. United Equipment Rentals #575 14, 15, 19, 22, 26-28, 53 49 23-25, 45, 48 52 7-13, 18, 29, 39, 51, 58 a,b,c, 59 a,b,c, 60 a,b,c, 61 a,b,c, 62 a,b,c, 63 a,b,c, 64 a,b,c 1-4, 6, 16-17, 20-21, 30, 32-38, 40-44, 46-47, 50, 54-55 5 No bids were received for items 31, 56 and 57, therefore they will not be awarded at this time. Hertz, the apparent low bidder on Items 62 and 63, did not meet specifications. Agenda Information Sheet September 7, 2004 Page 2 PRINCIPAL PLACE OF BUSINESS Bane Machinery Continental Equipment Dallas, Texas Dallas, Texas Jagoe Public Company Holt CAT Denton, Texas Fort Worth, Texas United Equipment Rentals #575 Fort Worth, Texas ESTIMATED SCHEDULE OF PROJECT Crescent Machinery Dallas, Texas TKO Equipment Co. Irving, Texas This price agreement will be in effect for a period of one year from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. FISCAL INFORMATION These items will be charged to the using Departments as needed. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 3195.doc ~u ~u ~ ~ ~ ~ X ~ X ~ I~ I~I~I ~I~ I~I i I© ~. o ~o ~o ~o --W----ET.... 0 ~ 0 ~ ~ -- O~ .~ .~ ~ 0 0 0 0 0 ~ 0 uO uO ~ ----~ --~ .... ~u ~u ~ ~ ~ ~ X· X~ I~I~I~I~I~I~I ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE RENTAL OF HEAVY EQUIPMENT FOR VARIOUS CITY DEPARTMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3195-RENTAL OF HEAVY EQUIPMENT AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH ITEM AS LISTED IN EXHIBIT A). 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 3195 1-4, 6, 16-17, 20-21, 30, 32-38 TKO Equipment Co. Exhibit A 40-44, 46-47, 50, 54-55 3195 49 Continental Equipment Exhibit A 3195 7-13, 18, 29, 39, 51, 58 a,b,c Holt CAT Exhibit A 59 a,b,c, 60 a,b,c, 61 a,b,c, 62 a,b,c, 63 a,b,c, 64 a,b,c 3195 14, 15, 19, 22, 26-28, 53 Bane Machinery Exhibit A 3195 23-25, 45, 48 Crescent Machinery Exhibit A 3195 5 United Equipment Rentals Exhibit A #575 3195 52 Jagoe Public Company 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 ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-Bid 3195 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: September 7, 2004 City Manager's Office Michael A. Conduff, City Manager SUBJECT: Consider adoption of an ordinance of the City of DeNon authorizing an agreemem between the City of Demon, Texas and Robson EMS Committee for legal services in connection with first aid responder program as official volunteers to the City of Denton Fire Department Emergency Medical Services; providing for the expenditure of funds therefor; and providing for an effective date. BACKGROUND: Councilmember Perry McNeill made a request for $500.00 of his contingency funds be expended to help defray the cost of legal service incurred by the Robson EMS Committee in their investigation of providing a first responder program as volunteers of the City of Denton Fire Departmem. An additional $100.00 was also requested by both Mayor Brock and Councilmember Montgomery towards this purpose. RECOMMENDATION Staff recommends approval of this ordinance Robson EMS Committee's first aid responders volumeers program as a public purpose. PRIOR ACTION/REVIEW (Council, Boards, Commission) None FISCAL INFORMATION The comingency fund expenditure request is for $700.00. Prepared by: Pamela Rambo-Estill Assistant to the City Manager Respectfully submitted: Betty Williams Director of Management and Public Information S:\Our Documents\Ordinances\04\Robson-EMS.doc ORDINANCE NO. AN ORDINANCE OF THE CiTY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND ROBSON EMS COMMITTEE FOR LEGAL SERVICES IN CONNECTION WITH FIRST AID RESPONDER PROGRAM AS OFFICIAL VOLUNTEERS TO THE CITY OF DENTON FIRE DEPARTMENT EMERGENCY MEDICAL SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Robson EMS Committee (the "Organization") is in the process of creating first aid responder program as official volunteers to the City of Denton Fire Department emergency medical services (the "Program"); and WHEREAS, the City Council of the City of Denton hereby finds that the Program and the agreement between the City and 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; 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 . ,2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: EULINE BROCK, MAYOR APPROVED AS TO LEGAJo FORM: HERBERT LA ~'y,~I{l'y ATTORNEY BY: ~ ~ / ~ AGREEMENT This Agreement is hereby e~red into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinaRer referred to as "City", and Robson EMS Committee, by and through its authorized representative, Jim D'Entreraont, hereinai~er referred to as "Organization"; WHEREAS, City has determined that the Organization will perform an imp~ public service for the residents of Denton without regard to race, religion, color, age or national origin. NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES Orgaai~tion shall utilize the funds provided for herein for the following program: The expenditure of funds for legal services for legal advice regarding tort liabih'ty concerning the creation of a first aid responder program as official voIunteers to the City.of Denton Fire Depaxtment emergency medical service. Ii. OBLIGATIONS OF ORGANIZATION in considerafon of the receipt of funds ~om City, Organization 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 I above, and for no other purpose. B. The Organization shall expend the funds in a manner that will allow for a tracing of funds and a review of the specific expenditures for which the funds were utilized. C. The Organization shall permit authorized officials of City to review its books at any time. D. The Orgarfization will reduce to writing all of its rules, regulations, and policies and file a copy with City Manager's office along with any amendments, additions, or revisions whenever adopted. E. The Organization shall not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement, F. As funds are expended, the Organization shall provide documentation in the form of' eaneolled cheeks and corresponding receipts detailing expenditure. ill. ~ OF PERFORMANCE The services funded by City shall be undertaken and completed by Organization within one year from the Effective Date of this Agreement. IV. PA'x~dE3YFS PAYMENTS TO ORgANIZATiON. City shall pay to the Organization the sum of $700.00 to be used solely for the purposes set forth in Section I above. The Organization shall retain accurate and current records tha~ dearly reflect the expenditures under this Agreement. VI. SUSPENSION OR TERMINATION A. The City may terminate this ~ for caus~ ffthe Organization violates any eownmnts, agreements, or guarantees of this Agr~nn~n~t. In case of termination, Orga~i~ion will remit to City arq un~ed City funds. A~c~ of these funds shall not constitute a waiver of any claim City may othervdse have arising out of this VII. EOUAL OPPOR!~'NITY ~ COMPLIANCE_WITH LAWS A. Organization shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Organiz~on will furnish all information and reports requested by City, and will permit access to its books, records, and acoo~s for purposes of investigation to asoertain compliance with local, State and Federal rules and regulations. C. In the event of Orgsni2~fion's non-compliance with the non-diserimin~'on requirements, the may be canceled, teminated, or suspended in whole or in part, and Organization may be barr~cl from further contrac~ts with City. ORGANIZATION represents and warrants that the Organization has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. 2 IX. CHANGES ~ AMEndMENTS A. Ally alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement exprmsly provide tham another method shall be used. B. Organimtion earmot signific, anfly change the nature, intent, or scope of the program funded under this Agreement without the prior written approval of' the City. C. It is expressly understood that the transfer of ti ds between or among programs of the Organization will not be permitted. X. CONFLICT OF INTEREST Pc Or--on covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Organization further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. Organization further covenants that no member'of its governing body or its stafl~ subcomraetors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance ofheing motivated by desire for private gain for himsdf/herset~ or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or respons~ilities in the review or approval of the undertaking or ean34ng out of this Agreement shall participate in ,any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct XI. NOTICE Any notice or other written insmmaent required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to Organization or City, as the ease may be, at the following addresses: CITY City of Denton, Texas ORGANIZATION Robson Ranch EMS Committee Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8596 C/O Jim D'Entromont 9413 Grandview Drive Denton, Texas 76207 Fax No. 940.246.1038 Either party may ehan_ge its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XII. MISCELLANEOUS A. Organization shall not transfer, pledg~ or otherwise assign this Agreement or any interest tMcrdn, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the origh~ intent of both parties hereto. C. In the event any disagreement or dispute should arise between the parties hereto pertainm' g to the interpretation or meaning of.any part of this Agreement or its governing rules, codes, laws, ordinances, or regulations, City as the party ultimately responsible for matters of compliance, will have the final authority to render or to secure an interpretation. D, This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concemMg this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. Signed to be effective as of the __~ day of , ,2004 (the "Effective Date"). CITY OF DENTON, TEXAS ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: MICHAEL A. CONDUFF,C1TY MANAGER BY: APPROVED AS TO LEGAL FORM: HERBERT BY: ROBSON EMS COMMITTEE Authorized Representative AGENDA DATE: DEPARTMENT: CM: AGENDA INFORMATION SHEET September 7, 2004 Economic Development Mike Conduff ~/~ SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas approving an agreement between the City of Denton and Habitat for Humanity of Denton County, providing for the terms of said contract; authorizing the City Manager to execute the agreement and to expend funds with respect to the agreement; and providing for an effective date. BACKGROUND Last January, Habitat for Humanity completed an application requesting funding for the purchase of lots for construction of affordable housing. Habitat's new construction program is targeted to very low-income households. Each eligible household must participate in the development of their unit through the "sweat equity" component of the program. The Community Development Advisory Committee recommended that Habitat be awarded $25,000 in HOME program funding to purchase vacant residential lots. City Council approved the grant award as part of the 2004 Action Plan for Housing and Community Development. ESTIMATED PROJECT SCHEDULE Purchase of the lots should take place in the next 30 to 90 days. Construction would be complete by next spring or earlier. PRIOR ACTION/REVIEW (Councils, Boards, Commissions) The Community Development Advisory Committee recommended approval of the funding for the Habitat for Humanity of Denton County as a part of the City's 2004 Action Plan for Housing and Community Development. City Council approved the Action Plan on May 4, 2004 FISCAL INFORMATION Funding for the proposed project will be awarded from the City's 2004 Home Investment Partnership Program (HOME) allocation EXmBITS 1. Ordinance 2. Funding Agreement Respectfully submitted: Linda Ratliff Director of Economic Development Prepared by: Barbara Ross Community Development Administrator S:\Our Documcms\Ordinancos\04\l Iabitat 1 Iomo lhnds.DOC ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND HABITAT FOR HUMANITY OF DENTON COUNTY; PROVIDING FOR THE TERMS OF SAID CONTRACT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND TO EXPEND FUNDS WITH RESPECT TO THE AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has received funds from the U.S. Department of Housing and Urban Development under the National Affordable Housing Act of 1990 as amended by the Housing and Community Development Act of 1992; and WHEREAS, the City has adopted a budget for such funds included therein an authorized program budget for expenditure of funds, for acquisition of properties for the purpose of developing affordable single family housing units to be purchased by low-income households; and WHEREAS, Habitat for Humanity of Denton County has developed a program to assist low-income households that will purchase the housing units constructed through the use of City of Denton HOME funding; and WHEREAS, the City Council deems it in the public interest to enter into an agreement for an affordable housing program with Habitat for Humanity of Denton County; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the attached Agreement between the City and Habitat for Humanity of Denton County to acquire property for the development of affordable housing units in accordance with the terms of this Agreement, which Agreement is made a part of this ordinance for all purposes, and authorizes the City Manager to execute this Agreement. SECTION 2. That the City Council authorizes the expenditure of funds for property acquisition. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. S:\Our Documcms\Ordinancos\04\l Iabitat 1 Iomo lhnds.DOC PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: AGREEMENT BETWEEN THE CITY OF DENTON AND HABITAT FOR HUMANITY OF DENTON COUNTY This Agreemem between the City of Demon and Habitat for Humanity of Demon County CAgreemem'') is made and emered imo by and between the City of Demon, a Texas municipal corporation CCiTY"), acting by and through its City Manager, pursuant to ordinance, and Habitat for Humanity of Demon County, PO Box 425, Demon, Texas a non-profit corporation, ("CONTRACTOR"). WHEREAS, CITY has received funds from the U. S. Departmem of Housing and Urban Developmem under the National Affordable Housing Act of 1990 as amended by the Housing and Community Developmem Act of 1992; WHEREAS, CITY has adopted a budget for such funds and included therein an authorized Program Budget for expenditure of funds for acquisition of properties for the developmem of affordable single-family housing units by Habitat for Humanity of Demon County, included as Attachment "B"; WHEREAS, CITY has designated the Community Developmem Division as the division responsible for the administration of this Agreement and all matters pertaining thereto; and WHEREAS, CITY wishes to engage CONTRACTOR to carry out such project; NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the mutual obligations and to the performance and accomplishmem of the conditions hereinafter described. This Agreemem shall commence on or as of September 15, 2004, and shall terminate on July 31, 2006, unless adjusted by the CITY. Request for such an adjustmem must be in writing and is to be submitted to the Community Developmem Division, 101 S Locust Ste 500, Demon TX 76201. RESPONSIBILITIES A. CONTRACTOR hereby accepts the responsibility for the performance of all services and activities, described in the Work Statement attached hereto as Attachment "A" and incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto as Attachment "B" and the Schedule of Contract Activities attached hereto as Attachment "C" incorporated herein as if set forth at length, and as otherwise set forth herein, in a satisfactory and efficient manner as determined by CITY, in accordance with the terms herein. B. CONTRACTOR's executive director shall be CONTRACTOR's representative responsible for the management of all contractual matters pertaining hereto, unless written notifica- tion to the contrary is received from CONTRACTOR, and approved by CITY. C. The CITY's Community Development Administrator will be CiTY's representative responsible for the administration of this Agreement. D. CONTRACTOR shall comply with HUD Office of Management and Budget circulars A-122 and the regulations found at 24 CFR Part 84. E. CONTRACTOR shall not request disbursement of funds until they are needed for payment of eligible costs. The amount of each request will be limited to the amount needed as per 92.504 (c)(2)(vii). F. CONTRACTOR shall not change the Program Budget without prior written approval from the CITY. CITY'S & CONTRACTOR'S OBLIGATIONS A. CITY shall provide funds in the amount of $25,000 or less in project funds to the CONTRACTOR for specific housing projects and programs as described in the Work Statement, Attachment "A". B. CONTRACTOR agrees to hold and save harmless the CITY, its officers and employees from any and all loss, cost, or damage of every kind [including, property damage, bodily injury or death], nature or description arising under this Agreement. C. CITY shall be responsible for performing an environmental review to insure necessary compliances are met. D. This Agreement and the payments made hereunder are contingent upon receipt of U.S. Department of Housing and Urban Development funds pursuant to the HOME Investment Partnership Program, and shall terminate immediately, not withstanding the provisions of Article XIX hereof, should such funds be discontinued for any reason. E. The CONTRACTOR may not request disbursement of funds until they are needed for payment of eligible costs. The amount of each request by the CONTRACTOR shall be limited to the amount needed in accordance with 24 CFR 92.504 (c)(2)(vii) and shall involve the activities set forth in the "Contract Activity Schedule" attached as Attachment C. F. Upon dissolution of the CONTRACTOR any remaining funds or assets derived from the expenditure of the CITY's funds, hereinafter sometimes described as the CITY's HOME funds, proceeds or HOME-funded projects, must be immediately returned to the CITY. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS A. The CiTY and CONTRACTOR agree to perform their duties arising pursuant to the Agreement in compliance with the U.S. Department of Housing and Urban Development HOME Investment Partnership Program regulations at 24 CFR 92. B. CONTRACTOR shall comply with the uniform administrative requiremeNs, as described in 24 CFR 92.505 in the HOME investmeN Partnership Program regulations, a copy of which is attached hereto. C. CONTRACTOR agrees to ensure that all HOME-assisted housing or housing ideNified as match for the HOME program meets all affordability requiremeNs ideNified in 24 CFR 92.252 or 92.254 as applicable. D. If it is determined that the use of the funding provided by the CITY does not meet the requirements of the U.S. Department of Housing and Urban Development HOME Investment Partnership Program, the CONTRACTOR shall reimburse the CiTY for the costs determined to be disallowed under the U.S. Department of Housing and Urban Development HOME Investment Partnership Program regulations. E. CONTRACTOR shall comply with all applicable Federal laws and regulations at 24 CFR 92 subpart H. Subpart H prescribes procedures for compliance in the following areas: nondiscrimination and equal opportunity, affirmative marketing, displacemeN and relocation, labor relations and conflict of interest. F. CONTRACTOR agrees that all housing assisted under this agreement will meet the property standards requiremeNs in 24 CFR 92.251 and the lead-based pain requiremeNs in part 35, subparts A, B, J, K, M and R upon project completion. Subpart F. CONTRACTOR agrees to comply with all project requiremeNs in 24 CFR Part 92, H. CONTRACTOR agrees to comply with all applicable Federal laws, laws of the State of Texas and ordinances of the City of DeNon. REPRESENTATIONS A. The CITY is providing funding to the CONTRACTOR in order to promote the developmeN of affordable housing for low-income households. Use of funds for programming will meet this stated goal. B. The CITY is the only ageN authorized to designate changes to the Program Budget or to approve specific projects and programs authorized pursuant to the non-administration portion of the Program Budget. C. CONTRACTOR assures and guarantees that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or ta&en, to enter into this Agreement. D. The person or persons signing and executing this Agreemem on behalf of CONTRACTOR, do hereby warfare and guarantee that he, she, or they have been fully authorized by CONTRACTOR to execute this Agreemem on behalf of CONTRACTOR and to validly and legally bind CONTRACTOR to all terms, performances and provisions herein set forth. E. CITY shall have the right, at its option, to either temporarily suspend or permanemly terminate this Agreemem if there is a dispute as to the legal authority of either CONTRACTOR or the person signing the Agreement to enter into this Agreement. CONTRACTOR is liable to CITY for any money it has received from CiTY for performance of the provisions of this Agreemem if CITY has suspended or terminated this Agreement for the reasons enumerated in this Section. F. CONTRACTOR agrees that the funds and resources provided CONTRACTOR under the terms of this Agreemem will in no way be substituted for funds and resources from other sources, nor in any way serve to reduce the resources, services, or other benefits which would have been available to, or provided through, CONTRACTOR had this Agreemem not been executed. PROGRAM INCOME A. HOME program income is defined as all fees and interest payments on HOME- assisted units/projects and any imerest income on deposited HOME funds or program proceeds collected by the CONTRACTOR. Program income may be retained by the CONTRACTOR to be used for HOME-eligible activities included in the Work Statemem included herein as Attachmem "B". Provided, however that any interest on deposited HOME funds must be remitted to the CITY on a quarterly basis. B. Any income generated from the use of HOME funds, proceeds, or any income generated through subsequent use of these funds shall continue to be used by the CONTRACTOR for HOME-eligible activities included in the Work Statemem in the City of DeNon. Use of the funds on projects or programs other than those idemified in this Agreemem, must be approved in writing by the CITY. Any income retained and used by the CONTRACTOR must be available to the CiTY as a matching contribution for the HOME program. Upon request, CONTRACTOR will approve appropriate certifications stating that funding is available as a HOME program match to the CITY. MAINTENANCE OF RECORDS A. CONTRACTOR agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of the funds received pursuant to this Agreement and pursuant to any other applicable Federal and/or State regulations establishing standards for financial management. CONTRACTOR's record system shall contain sufficient documentation to provide detailed support and justification for each expenditure. Nothing in this Section shall be construed to relieve CONTRACTOR of fiscal accountability and liability under any other provision of this Agreement or any applicable law. CONTRACTOR shall include the substance of this provision in all subcontracts. B. CONTRACTOR agrees to retain all books, records, documents, reports, and written accounting policies and procedures pertaining to the operation of programs and expenditures of funds pursuant to this Agreement for the period of time and under the conditions specified by CITY. C. Nothing in the above subsections shall be construed to relieve CONTRACTOR of responsibility for retaining accurate and current records, which clearly reflect the level and benefit of services, provided pursuant to this Agreement. D. At any reasonable time and as often as CITY may deem necessary, the CONTRACTOR shall make available to CITY, or any of its authorized representatives, all of its records and shall permit CITY, or any of its authorized representatives to audit, examine, make excerpts and copies of such records, and to conduct audits of all contracts, invoices, materials, payrolls, records of personnel, conditions or employment and all other data relating to the program requested by said representatives. E. The CONTRACTOR shall give the City of Denton, the U.S. Department of Housing and Urban Development, or any of their duly authorized representatives, access to and the fight to examine all books, accounts, records, reports, files and other papers belonging to or in use by the CONTRACTOR pertaining to this Agreement. Such rights to access shall continue as long as the CONTRACTOR is required to retain the records. REPORTS AND INFORMATION A. CONTRACTOR shall provide quarterly financial and beneficiary reports that shall contain such records, data and information as CITY may request and deem pertinent to matters covered by this Agreement. CONTRACTOR shall provide any additional information as requested by the CiTY within 10 days. B. An audit must be conducted in accordance with 24 CFR parts 44 and 45 as applicable. CONTRACTOR shall submit a copy of said audit to the Community Development Division within ten days of receipt of the completed report. INSURANCE A. CONTRACTOR shall observe sound business practices with respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Agreement. B. The premises on and in which the activities described in Exhibit A are conducted, and the employees conducting these activities, shall be covered by premise liability insurance, com- monly referred to as "Owner/Tenant" coverage with CITY named as an additional insured. Upon request of CONTRACTOR, CITY may, at its sole discretion, approve alternate insurance coverage arrangements. C. CONTRACTOR will comply with applicable workers' compensation statutes and will obtain employers' liability coverage where available and other appropriate liability coverage for program participants, if applicable. D. CONTRACTOR will maintain adequate and continuous liability insurance on all vehicles owned, leased or operated by CONTRACTOR. All employees of CONTRACTOR who are required to drive a vehicle in the normal scope and course of their employment must possess a valid Texas driver's license and automobile liability insurance. Evidence of the employee's current possession of a valid license and insurance must be maintained on a current basis in CONTRACTOR's files. E. Actual losses not covered by insurance as required by this Section are not allowable costs under this Agreement, and remain the sole responsibility of CONTRACTOR. F. The policy or policies of insurance shall contain a clause which requires that CITY and CONTRACTOR be notified in writing of any cancellation or change in the policy at least thirty (30) days prior to such change or cancellation. G. Insurance will be carried on all housing units under construction until such time as the new homeowner takes possession and obtains homeowner insurance. 10. EQUAL OPPORTUNITY During the performance of this Agreement, the CONTRACTOR is subject to Executive Order 11246, as amended, and, therefore, agrees to the following: (1) The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The CONTRACTOR will take affirmative action to ensure that applicants who are employed are treated during employment without regard to their race, color, religion, sex, national origin, or familial status, concerning such employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or their apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to both employees and applicants for employment, notices to be provided by the CITY setting forth provisions of this nondiscrimination clause. (2) The CONTRACTOR, in all solicitations or advertisements for employees placed by or on behalf of the CONTRACTOR, shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, or familial status. 11. CONFLICT OF INTEREST A. CONTRACTOR covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. CONTRACTOR further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. CONTRACTOR further covenants that no member of its governing body or its staff, contractors or employees shall possess any interest in or use this position for a purpose that is or gives the appearance of being motivated by desire for private gain for themselves, or others, particularly those with which they have family, business, or other ties. C. No officer, member, or employee of CITY and no member of its governing body who exercises any function or responsibilities in the review or approval of the underta&ing or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his/her personal interest or the interest in any corporation, partnership, or association in which he/she has direct or indirect interest. 12. POLITICAL OR SECTARIAN ACTIVITY A. None of the performance rendered hereunder shall involve any political activity (including, but not limited to, any activity to further the election or defeat of any candidate for public office) or any activity undertaken to influence the passage, defeat or final content of legislation. B. None of the performance rendered hereunder shall involve or benefit in any, manner any sectarian or religious activity. 13. WARRANTIES CONTRACTOR represents and warrants that: A. All information, reports and data heretofore or hereafter requested by CITY and furnished to CITY, are complete and accurate as of the date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to CITY. B. Any supporting financial statements heretofore requested by CiTY and furnished to CITY, are complete, accurate and fairly reflect the financial condition of CONTRACTOR on the date shown on said report, and the results of the operation for the period covered by the report, and that since said date, there has been no material change, adverse or otherwise, in the financial condition of CONTRACTOR. C. No litigation or legal proceedings are presently pending or threatened against CONTRACTOR. D. None of the provisions herein contravenes or is in conflict with the authority under which CONTRACTOR is doing business or with the provisions of any existing indenture or agreement of CONTRACTOR. hereunder, conditions CONTRACTOR has the power to enter into this Agreement and accept payments and has taken all necessary action to authorize such acceptance under the terms and of this Agreement. F. None of the assets of CONTRACTOR is subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by CONTRACTOR to CITY. G. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. 14. COVENANTS A. CONTRACTOR agrees to take appropriate measure to enforce the affordability requirements on property assisted with HOME funds. Property liens or other forms of enforcement must remain with the property for the required affordability period. B. During the period of time that payment may be made hereunder and so long as any payments remain unliquidated, CONTRACTOR shall not, without the prior written consent of the Community Development Administrator or her authorized representative: (1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the assets of CONTRACTOR now owned or hereafter acquired by it, or permit any pre-existing mortgages, liens, or other encumbrances to remain on, or attached to, any assets of CONTRACTOR which are allocated to the performance of this Agreement and with respect to which CITY has ownership hereunder. (2) Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or claims for money due or to become due. (3) Sell, convey, or lease all or substantial part of its assets. (4) Make any advance or loan to, or incur any liability for any other firm, person, entity or corporation as guarantor, surety, or accommodation endorser. (5) Sell, donate, loan or transfer any equipment or item of personal property purchased with funds paid to CONTRACTOR by CITY, unless CiTY authorizes such transfer. C. CONTRACTOR agrees, upon written request by CITY, to require its employees to attend training sessions sponsored by the Community Development Division. 15. MONITORING AND EVALUATION Agreement. CITY shall perform on-site monitoring of CONTRACTOR's performance under this B. CONTRACTOR agrees that CITY may carry out monitoring and evaluation activities to ensure adherence by CONTRACTOR to the Work Statement, and Program Goals and Objectives, which are attached hereto as Attachment A, as well as other provisions of this Agreement. C. CONTRACTOR agrees to cooperate fully with CITY in the development, implementation and maintenance of record-keeping systems and to provide data determined by CiTY to be necessary for CiTY to effectively fulfill its monitoring and evaluation responsibilities. D. CONTRACTOR agrees to cooperate in such a way so as not to obstruct or delay CITY in such monitoring and to designate one of its staff members to coordinate the monitoring process as requested by CITY staff. E. CITY shall provide a written evaluation of contract performance to the CONTRACTOR within 30 days of the monitoring. F. Within 60 days of notification by the CITY, the CONTRACTOR shall provide complete responses include a statement acknowledging any corrective action required to be taken due to City of Denton monitoring findings and concerns. G. CONTRACTOR shall submit copies of any fiscal, management, or audit reports by any of CONTRACTOR's funding or regulatory bodies to CiTY within five (5) working days of receipt by CONTRACTOR. 16. DIRECTORS' MEETINGS A. CONTRACTOR shall ensure that the CiTY is notified of all meetings, regular and special called, of the board of directors. Notice should be received by the CiTY at least 72 hours prior to the meeting. Such notice shall include an agenda and a brief description of the matters to be discussed. B. CONTRACTOR understands and agrees that CITY representatives shall be afforded access to all of the Board of Directors' meetings. C. Minutes of all meetings of CONTRACTOR's governing body shall be available to CiTY within ten (10) working days of approval. 17. NEPOTISM CONTRACTOR shall not employ in any paid capacity any person who is a member of the immediate family of any person who is currently employed by CONTRACTOR, or is a member of CONTRACTOR's governing board. The term "member of immediate family" includes: wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece, step-parent, step-child, half-brother and half-sister. 18. SUSPENSION OF FUNDING A. Upon determination by CITY of CONTRACTOR's failure to timely and properly perform each of the requirements, time conditions and duties provided herein, CITY, without limiting any rights it may otherwise have, may, at its discretion, and upon ten (10) working days written notice to CONTRACTOR, withhold further payments to CONTRACTOR. Such notice may be given by mail to the Executive Officer and the Board of Directors of CONTRACTOR. The notice shall set forth the default or failure alleged, and the action required for cure. B. The period of such suspension shall be of such duration as is appropriate to accomplish corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the suspension period, if CiTY determines the default or deficiency has been satisfied, CONTRACTOR may be restored to full compliance status and paid all eligible funds withheld or impounded during the suspension period, if, however, CiTY determines that CONTRACTOR has not come into compliance, this Agreement may be terminated under Section 19 of this Agreement. 19. TERMINATION A. The CITY shall have the right to terminate this Agreement, in whole or in part, at any time whenever the CiTY determines that the CONTRACTOR has failed to comply with any term of this Agreement. The CiTY shall notify the CONTRACTOR in writing thirty (30) days prior to the date of termination, the effective date of such termination, and in the case of partial termination, the portion of the Agreement to be terminated. Property shall be subject to disposition. B. The CITY shall have the right to terminate this Agreement for convenience, in whole or in part by written notification to the CONTRACTOR which shall include the reason for such termination, the effective date and the portion to be terminated. C. The CONTRACTOR shall have the right to terminate this Agreement for convenience, in whole or in part, by written notification to the CITY, which shall include the mason for such termination, the effective date and the portion to be terminated. D. If, in the case of a partial termination, it is the determination of CITY that the remaining portion of the award is not sufficient to accomplish the project as described in the Work Statement, CITY may require that the entire grant be terminated. 20. INDEMNIFICATION A. It is expressly understood and agreed by both parties hereto that CITY is contracting with CONTRACTOR as an independent CONTRACTOR and that as such, CONTRACTOR shall save and hold CITY, its officers, agents and employees harmless from all liability of any nature or kind, including costs and expenses for, or on account of, any claims, audit exceptions, demands, suits or damages of any character whatsoever resulting in whole or in part from the performance or omission of any employee, agent or representative of CONTRACTOR. B. CONTRACTOR agrees to provide the defense for, and to indemnify and hold harmless CITY its agents, employees, or contractors from any and all claims, suits, causes of action, demands, damages, losses, attorneys fees, expenses, and liability arising out of the use of these contracted funds and program administration and implementation except to the extent caused by the willful act or omission of CITY, its agents, employees, or contractors. 21. NOTICE For purposes of this Agreement, all official communications and notices among the parties shall be deemed made as of the date mailed if sent postage paid to the parties and address set for below: TO CITY: Community Developmem Administrator City of Demon 101 S Locust Ste 500 Denton, Texas 76201 TO CONTRACTOR: Executive Director Habitat for Humanity of Demon County PO Box 425 Denton, Texas 76202 22. VENUE This Agreemem shall be imerpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreemem shall be in a court of competem jurisdiction sitting in Demon County, Texas. IN WITNESS OF WHICH this Agreement has been executed on this the ,2004. CITY OF DENTON day of BY: ATTEST: JENNIFER WALTERS, CITY SECRETARY MICHAEL A. CONDUFF, CITY MANAGER BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: HABITAT FOR HUMANITY OF DENTON COUNTY BY: BOARD PRESIDENT ATTEST: SECRETARY ATTACHMENT "A" WORK STATEMENT City of Denton HOME funding will be used to purchase single-family lots for the construction of affordable housing for low-income families. The lots will be located within the city limits of Denton in areas that would support Habitat's building criteria. Lots will be zoned NR 4 or NR 6, or will be appropriate for residential zoning. Lots will be purchased through real estate companies, by working directly with owners or through the foreclosure sale process. Habitat for Humanity of Denton County will use volunteer labor resources and donated materials when possible to lower the cost of housing production. Program participants will also provide "sweat equity" of some form (either on site or other volunteer work) to assist in the production of their home or provide assistance to other low-income households. Habitat will provide each family with a "no interest" rate loan for a twenty-year term. New homeowners will receive information on how to budget to ensure they have sufficient resources to make their payment to Habitat and maintain insurance, taxes and utility payments. Homeowners will also receive information regarding home maintenance. ATTACHMENT "B" PROJECT BUDGET Land Acquisition $25~000 TOTAL PROJECT BUDGET $25,000 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Electric Utility Howard Martin, 349-8232 SUBJECT Consider adoption of ordinances of the City of DeNon, Texas authorizing the City Manager to execute two Dark Fiber Lease Agreements by and between the City of Denton, Texas and the University of North Texas; authorizing the expenditure of funds therefor; providing for retroactive approval of the agreements; and providing an effective date. BACKGROUND In the spring of 2001, UNT requested a quote for a possible dark fiber link from UNT's Matthews Hall to the Ambling Project from DME's Communications group. The UNT staff explained that they were hoping to arrange for third party voice and data service for the Ambling project rather than serving it as part of the UNT system. DME quoted them a cost of $667.50 per month for 5 years. In late July of 2001, UNT again contacted the DME Communications group. They indicated that they had been unsuccessful in obtaining third party service and that they now needed a fiber connection between Matthews Hall and Ambling installed no later than August 18,2001. In order to be supportive of our local university, DME installed the fiber service immediately. Since it was not possible to get a formal agreement through the PUB/Council process rapidly enough to respond to their emergency, the work was done under a Letter of Imem (see Attachmem 1). In early September of 2001, before the utility attorney completed a draft a formal Agreemem for the Ambling fiber service, UNT approached the DME Communications group regarding providing service from Matthews Hall to their north campus (the former Texas Instrument facility). Their initial request was for a significam amoum of fiber (over 100 miles), including separate connections to Matthews Hall for redundancy and reliability. In order to avoid having two separate contracts with UNT, it was decided to wait and develop one contract that would cover both fiber services. Unfortunately, the UNT technical staff spent almost nine months determining the configuration they desired for the fiber system between Matthews Hall and the north campus. During this imerim period, UNT needed a single dark fiber pair from Matthews Hall to the north campus for start up purposes. Once again, in an effort to be accommodating to the University's needs, beginning in August of 2002 DME provided this service under a second Letter of Imem (see Attachmem 2). The price for this service was quoted as $1,850.50 per momh for 5 years. After the Matthews Hall to north campus dark fiber pair was installed, a dispute over the quality of the fiber path DME had provided arose. DME was in agreement that the optical loss on the initial installation was higher than it should have been. However, DME felt that the level of performance UNT was demanding was unreasonable when compared to industry standards. Negotiations regarding the appropriate performance level followed, in parallel with DME Communications implementing system changes that raised performance levels of the fiber pair to a level DME felt met usual and customary industry standards. UNT and DME subsequently reached agreement on an optical loss specification. UNT has agreed that service meeting that specification was available to them beginning on January 1, 2003 (Attachment 3). In August of 2003, UNT revised their request for service to the north campus to cover only the single pair dark fiber service already installed. Once final agreement was reached by the technical staffs of DME and UNT, UNT required that the formal contract for the fiber service that DME had been providing to UNT since August of 2001 go through a review by the UNT legal department. That review took almost a year. Agreements for fiber service to each location are now ready for approval. Approval of these documents will allow DME to collect payment for the fiber services it has been providing since August of 2001. OPTIONS 1. Approve the attached agreements, collect $58,999.50 due DME, and continue fiber service to UNT. 2. Do not approve the attached agreements, disconnect fiber service to UNT, and potentially forfeit payment for fiber services already provided. RECOMMENDATIONS DME recommends approval of the agreements. PRIOR ACTION/REVIEW (Council, Boards, Commission): The Public Utilities Board considered these Agreements at its August 23rd, 2004 meeting and voted approval by a vote of 6 to 0 with 6 members present. FISCAL INFORMATION Payment of $58,999.50 is due for fiber services already provided. Monthly payments thereafter will be $2,508 per month for the next two years and $1840.50 through December 31, 2007 for a total of $103,716. EXHIBITS 1. August 2, 2001 Letter of Intent 2. August 19, 2002 Letter of Intent 3. August 26, 2003 Letter of Intent 4. Ordinance and Agreement for fiber service between Mathews Hall and 1300 West Highland Street 5. Ordinance and Agreement for fiber service between Mathews Hall and UNT Research Park 6. PUB Minutes Respectfully submitted: Sharon Mays Director of Electric Utilities UN- RSITYof NORTHT s August 2, 200I Chuck Pierce, Commtmications Specialist Denton. Mum'cipaI Electric. Communications Department City of Denton, Texas 901-A Texas Street Denton, TX '76201 · Please proceed with installation of the dark fiber associated with the attached quote. · "' ~rvice is needed for the start of'cLasses at. UNT on August 27, 200i. The Ambling Corporation which is managing the facility would like to have .service in place by August 18, 2001. It is our understanding that the City of Denton will provide us with a. contract ' for the lease of a pair of dark fibers based on the attached quote of $667.50 per month. Lrb~'s contact for technical issues will be: Rory Rivoire Communications Analyst 940/565-4168 Rory(~',e.admimunt-edu UNT's contact £or the business aspects of this arrangement wilt be: Chuck Fuller Director of Business Services 9401565-2033 fulter~unt, edu Thank you for your assistance. PhiFfip C. Die. lad Vi¢~ President for Finance and Business Affairs cc. Harry Hettinger P.O. ~ 310500 · Denton, Texas 76203-0500 · (940) 565-2055 EXHIBIT 1 Fiber Rate UNT Malhews HaJ! to New Dorm Hickory and Bonnie Brae Retail Rate Fiber pa~r Discount Per Mile mi~es Extension Fully Dksc, oun~ Rate (more than t00 miles) 35% $149.50 $0.O0 Discounted Rate (more than 75 miles) 25% $172.50 ~)iscourffed Rate (more ~han 50 maes) 15% $105.5o $o.oo Pubtic Schools Rate 35% $149.50 $0.00 Govemment E,~i~es 25% $172.50 1.5 $517.50 Number Building Presence Charge (Charged on. a per Bu~ing Basis). l~u'~dings RetaiI Rate 0% $200.00 Fully Discounted Rate {more. than 100 miles) 35% $130.00 Discounted Rate (more than 75 n'flies) 25% $t50.00 $0.00 Discounted Rate (more than 50 miles) 15% $170.00 $0.00 Pubtic Schools Rate 35% $130.00 $0.00 Gouernme~ ~ 25% $I50.00 1' $I50.00 Totat Mons~y Rate $667.50 $$,010.00 Totat Yearly. Rate ............ Fiber New Ofigi,.,r~,,~,n_g Budding Terminating Budding miles Buildings UNT Mathews Hall New Dorm HJcko~ 1.5 t and iBol~lt'~e Brae Totals 1.5 Vire t%sident fi~r Finance and Business Affairs DUPLICATE ORIGINAL LETTER OF I NTENT Augt~t 19, 2002 Harry F. Itetlinger 'Communic, alions Manager Denton Municipal Electric (DME) 901-A Texas Street Denton, 'Texas 76209 Please proceed with the installation and termination of one pair of dark fibers (two fibers) between the University of North Texas (UNT) Main Campus - Matthews Hall located at 1300 West Highland Street 76201 and UNT Resear6h Park Second Floor Main Dism~bution Frame 0VIDF) and at 3940 North Elm Street, 76207 both in. Dento~ Texas. It is our understanding that Denton MunieipaI Electric (DME) will provide UNT with a contract for the lease of one pair of dark fibers at a cost of $1,840.50 per month, which also includes a $I50 ingress fee for each of two buildings. The term of the ~g~eement will be ten yearn with the right to ~ren.ew for subsequent periods of time thereaf[er. It is further understood that in. the event of a fiber failure, repai_rs will begin within one hour and be completed as expeditiously as possible utilizing spare resources from your perpetual inventory. Fiber Performance DME estimates the total cable .length from UNT Main Campus to LINT Research Park .to be 5 miles (8 kilometer ~. 0.5 db loss per kilomerter) with 3 splices ~ 0..02 db. each and ST Pigtail termination t~ 0.5 db each. Therefore, the end-to-end optical budget of the fiber segment eau be estimated to be 5.06 db and ~ould not exceed 6~0 db. The fiber eabte shall support both wavelengths ~ 1310 & 1550 nanometer and meet performance specifications for Seicor ADFS optical fiber cable. The UNT reserves the right to have fiber performance tested by an independent test organization for conformance with the optical specifie~ons mated above. The leading univ P.O. Box 310500.* EXHIBIT 2 Doenm~ntation: A haxdcopy of the finM d~t co~i~g of a ~mpt~e set of ~d-~nd ~ ~on ~d O~R ~gs for ~h ~e-m~e fib~ ~d at 1310 & 1550 ~ s~ ~ pro~d~ m ~ ~oug ~ ~e acm~ ~le m~e ~d to~ f~tage for e~h fiber sc~t. ~is ~ of~t~ is'm~ ~ ~e b~ ~ once ~c fib~ is ~alt~, if for ~y r~n. w~ts~v~, ~e fi~ ~. ~t ~cfion for th~ p~s ~~ ~ ~ be rd~ ff~ i~ obligation ~ D~ ~'s ~n~ ~tl be: Ken Sedgley, Telecommu~calions Manager 1706 Chestnut Street Denton, Texas 76201. (940) 5654299 Thaxtk yon for your assistance. Sincerely yours, Philtip C. Dieb¢t Vice President for Finance and Business Affairs Date: ACCEPTED: Harry Hettinger Communications Manager Denton Municipal Electric Date: Fum/~ Rate {mere than '~.00 miles) 35% $~149.50 $0.00 ~ Ra~ (mom than.'75 mites) 25~. $172.50- Discounted Rate (mom l hen 50 m~s) 15% $195~50 UNT ~ Ha~ Old Tt Pla~ 4.9 I Te~,'~.of ~ is 5 yeam~ ADMINISTRATION LETTER OF INTENT August ~6, 2003 · Philip C. Diebel Vice Presid~l for Finance and Business Affairs The University of North Texas Denton, Texas RE: Dark Fiber Lea.se Betwema City of l~nton and University of North Texas. Mr. Die. bet: The City of Denton, Texas is ready to proceed with thc installation and' termination of one pair of dark fiber (two fibers) between the University of North Texas ("UNT") Main Campus - Matthews Hall, located at 1300 West Highland Street 76201, and LINT .Rese. amh Park, Second Floor Main Disln~aution Fram~ ('~AD~ and at 3940 Elm Stre~ 76207, both in Denton, Texas. In order for the City to proceed, it must receive an executed copy ofthis l_xqter of lntcm~ It is Denton's tmdersmnding that Dem~ MtmJcipat Elev~tri, C'DME") wRl provide UNT with a mt for the lease of one pair of dark fibea' at a cost of S1,g40.50 per month, which also inctmte~ a $I50 ingress fee for each of the. two buildings. The term of the contract will bo five years with tho fight to renew for subsequent periods of time ~hereafier. It is further understood that in the event of a fiber failarv, repairs will begin wigan one hour, and shall be completed as expediently as posm'blc~ utilizing spare resom from the City's lxapelual' inventory. Fiber Performance: The end4o-end optical budget of ~ fiber segment should not exceed 9db. The fiber cable shall support both wavelengths at 1310 & 1550 nanometem UNT rc~xv~ thc right to lmvo fiber lmrformanco t~ted by an i~ont test organization for conformance with thc optical specifications stated above. EXHIBIT 3 A h~rd copyo fthe final d ocume:~ c~ ofa c ompl~te se t o f end-to-e~ power atteatmtion and OTDR readings' for each single-mode fiber end at 1310 & 1550 nanometer$, ahall be provided to UNT along with the actual ca, blt route and total fix~tage for each fiber.~gment- This Letter of Intent is made on the basis that once the fiber is installe~ if for any reason whatsoever, the ffl~r does not function for the purpos~ inteaxled, lhat UNT will be released fieom i~ obligation to Devlton Municipal Electric, so that funds can be We undeztaad ffmi UNT's point ofcontact for p~ of this Let~ of Intent is: Ken Sedgtey, Telecommunications Manager 1706 Chestnut Strec~ Dentoa, Te~xas 76201 (940) 5654299 Thank' you for your assistanc~ and eonsid~om Sincerely yours, Harry Hettinger Comm~ons Manager Denton Municipal Electric City of Denton, Tcxas ACCEPTED AND AGREED: Vice Prcsideat for F~ and Busiaess Afl, aim The University of North Texas MSCtmc "Dedicated to Quality Service" www. ci tyof denton.eom Le~te~ o£ Intent August 26, 2003 Page 3 of 3 Howard. Martin. ACMP3fi~fi~ Sharon Mays, Dir~tor, DME Ray Wells, As~ Direc~r, DME "Dedicated to Quality Service" www. cityofdenton, com CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES August 23, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, August 23, 2004, at 9:04 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell and Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities EXCUSED: George Hopkins CONSENT AGENDA: 1) Consider approval of a purchase of an Itron Mobile Collection 2 System in amount not to exceed $38,570.25. 2) Consider approval of a purchase of G.E. Jungle MUX Network Equipment, including hardware components, software components, and total system support services in an amount not to exceed $432,578.76. 3) Consider approval of two Dark Fiber Lease Agreements between the City and the University of North Texas. Board Member John Baines moved to approve consent agenda items #1, #2 and #3, with a second from Board Member Phil Gallivan. The motion was approved by a vote of 6-0. EXHIBIT 6 Page 1 of 1 ORDINANCE NO. 2004- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A DARK FIBER LEASE AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE UNIVERSITY OF NORTH TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING FOR RETROACTWE APPROVAL OF THE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the provisions of State law (Texas Utilities Code §54.2025, as amended) permit the City to lease the excess capacity of its fiber optic cable system; the City finds that it has excess capacity in its fiber optic system, and desires to lease the same, in a non- discriminatory manner, to the University of North Texas for its public purposes; and WHEREAS, the City Council deems it necessary and appropriate and in the public interest to enter into the Dark Fiber Lease Agreement with the University of North Texas for a term of five (5) years; and WHEREAS, negotiations began on this lease agreement prior to its execution, and the University of North Texas executed a letter authorizing installation of dark fiber service for the facilities mentioned therein, on August 2, 2001, which generally put into written form the previous understandings of the parties; and the City and the University of North Texas, having previously orally agreed to lease one (1) pair of dark fiber for the immediate use of the University of North Texas, connecting the UNT Matthews Hall to the new UNT Dormitory at Hickory and Bonnie Brae, both in the City of Denton, Texas; and WHEREAS, the City and the University of North Texas have stipulated and agreed that the Dark Fiber Lease Agreement shall be effective from and after August 18, 2001, which shall be the effective commencement date of the said lease; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the recitations in the preamble are true and correct and are incorporated herewith as a part of this Ordinance. SECTION 2: That the City Manager is hereby authorized to execute a Dark Fiber Lease Agreement by and between the City of Denton, Texas and the University of North Texas for the lease of dark fiber optics pertaining to the matters hereinabove described, in substantially the form of the Dark Fiber Lease Agreement attached hereto and incorporated herewith by reference. SECTION 3: That the expenditure of funds as provided for in the attached Dark Fiber Lease Agreement, is hereby authorized. EXHIBIT 4 1 SECTION 4 That the Dark Fiber Lease Agreement is hereby ratified and retroactively approved and confirmed, and shall be effective from and after August 18, 2001. SECTION 5: That except as provided in Section 4 hereinabove, this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINEBROCK, MAYOR By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Documents\Ordinances\04\UNT Dark Fiber Lease Ordinance-Ambling.doc THE STATE OF TEXAS COUNTY OF DENTON DARK FIBER LEASE AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE UNIVERSITY OF NORTH TEXAS THIS LEASE AGREEMENT is agreed between the parties to have an effective date of the 18th day of August, 2001, hereafter flue "Effective Date" by and between the City of Denton, Texas, a home-role municipal corporation ("Denton") and the University of Norfl~ Texas, a university chartered under the laws of the State of Texas ("UNT"), upon the following terms mhd conditions: WHEREAS, this Dark Fiber Lease Agreement ("Agreement") replaces, amends, was contemplated by, and supercedes that certain letter of autho~Szation executed by UNT on the 2nd day of August, 2001 empowering Denton to proceed with activities incident to the installation of dark fiber at certain LINT facilities; and WHEREAS, notwithstanding that this Dark Fiber Lease Agreement has been signed and approved after August 18, 2001, Denton and UNT desire and agree that the effective date of this Agreement is to be stated, for all purposes, as August 18, 2001, the date that service is deemed to have cormr~eneed respecting the leased property, i.e. one pair of dark fibers running from The University of North Texas Matthews Hall, located at 1300 West Highland Street 76201 to the new donrdtory located at the intersection of Hickory and Bonnie Brae Streets, both in the City of Denton, Texas; and WHEREAS, this Dark Fiber Lease Agreement, by its provisions, takes into account the present circumstances as well as the desires of both Denton ,u~d LINT respecting the Property described below in Paragraph I. NOW, THEREFORE, in consideration of the prerrdses m~d the mutual covenm~ts m~d agreements contained herein, Denton and UNT do hereby AGREE to the following terms and conditions: 1. LEASE GRANT. For and in consideration of the premises, covenants and agreements provided in this Agreement, Denton, effective August 18, 2001 has leased, grmtted mhd dem/sed for the tenr~ of fl~is lease unto LINT: one pair of dm'k fibers owned by Denton, hereinafter refen'ed to herein as the "Property;" said Prope~x~y being situated in the City of Denton, Denton County, Texas. 2. TERM. The lease tem~ (the "Telm") of this Agreement shall be for five (5) years, conu'nencing effective on August 18, 2001 mhd expil~ug on August I7, 2006. Denton, however retains the absolute figlut to terminate this Agreement upon giving Tenant sixty (60) days written notice of tenr~ination in the event of any uncured default, hh the event of tem~hation of this Agreement upon sixty (60) days mitten notice by Denton, Denton shall be entitled to reimbursement for the cost of the construction mad installation of the one pair of dark fibers. Denton and UNT agree that a significant part of the rental calculation is based upon the cost incurred by Denton to complete rite construction and installation of the one pair of dark fibers. 3. SECURITY DEPOSIT. Denton does not require that UNT pay to Denton a security deposit respecting this Agreement. 4. RENT. UNT shalI pay rent to Denton, at the address specified herein for notices to the Denton provided herein, without any offset or deduction, regardh~g the Property at the rate of $667.50 per month for sixty (60) consecutive months. The first payment of rent shall be a lump-sum payment of rent due and payable fi.om August 18, 2001 through May 17, 2004 and shall total $22,027.50, and shall cover the ttfirty-three (33)-month lease period fi'om August 18, 2001 to May 17, 2004. All subsequent $667.50 monthly pasnnents of rent owing by UNT to Denton shall be due and payable on the eighteenth day of each subsequent month, subject to receipt and approval of an invoice by UNT at least thirty (30) days prior to the date of payment, until the expiration or termination of this Agreement. Denton shall invoice UNT in advance for each such payment. Invoices shall be sent to PPS, PO Box 310499, Denton, Texas 76203. 5. OPTION TO RENEW. Provided that Denton has not earlier tenninated this Agreement as permitted herein, and further provided that UNT is not in default with respect to the terms and provisions of this Agreement, UNT shall have the option to notify Denton, in writing, within the period beginrfing one hundred and twenty (120) days and ending sixty (60) days prior to the end of the five (5) year term provided by this Agreement, that Tenant desires to extend the terms of this Agreement for one additional five (5) year tenn. All provisions of this Agreement, save and except the rent obligation, shall be the same. Denton shall determine the mount of rent that is to be charged to UNT within thirty (30) days after notification by UNT and shall communicate that mnount to I_7NT, in writing. UNT shall then consider such rental mnount and shall notify Denton, in writing, within fifteen (15) days after the receipt of notice fi:om Denton, about whether UNT des/res to consummate the renewal of the Agreement, considering the amount of rental established by Denton. 6. TENANT'S RESPONSIBILITIES. In return for Denton's lease of the Property, UNT agrees to provide the following services, to wit: A. At the termination of the term of this Agreement, or of any extension thereof, UNT shall surrender the Property to Denton, in the stone condition as it existed on the first day of the Agreement, subject however, to allowance for reasonable wear, tear and deterioration. 7. IZIBERPERFORMANCE. Denton covenants to co~rnuence repairs within one (1) hour of notification, wlfich repairs shall be completed as expediently as possible, utilizing spare resources fi'om Denton's perpetual inventory. The end-to-end optical budget of the fiber segment should not exceed 9db. The fiber cable shall support both wavelengths at 1310 and 1550 nanometers. UNT reserves the fight to have fiber perfomam~ce tested by an independent test organization for conformance with flue optical specifications stated above. A hard copy of the final document, consisting of a complete set of end-to-end power attenuation and OTDR readings for each single-mode fiber end at 1310 and 1550 nanometers, shall be provided to UNT along with the actual cable route and total footage for each fiber segment. 8. CONDITION OF PROPERTY. Denton and UNT agree that ol~ce the one dark fiber pair is installed, if for docmr~ented adequate reason, the fiber does not function for the purposes intended by this Agreement, then LINT will be released from its obligation to pay rent for any period of time thereailer, provided that Denton has had a reasonable opportm~ity to test the performance of the equipment and reasonably agrees that the equipment in question no longer meets the purposes intended by UNT. UNT hereby acknowledges that it has inspected the Property, that it is in place and functioning as of August 18, 2001 as well as on this date, and UNT accepts and approves of the Property in its present condition. 9. INDEMNIFICATION. LINT shall possess and use the Property at UNT's sole risk. Neither UNT, nor Denton, shall have any obligation to indemnify the other party hereto in the case of any loss or liability arising from the use of the Property. 10. ASSIGNMENT AND SIlBLETTING. UNT shall not sublet or assigl~ all or any portion of this Agreement or the Property, or any interest therein, without the prior written consent of Denton. Any assigranent or subletting in violation of this paragraph shall be void. I1. LANDLORD'S ACCESS TO THE PROPERTY. It is expressly agreed that Denton shall have the right to enter onto UNT's property at any reasonable time to inspect the condition of the Property, the use thereof, or for any other lawful purpose, so long as prior notice is provided to UNT. In the event that such prior notice cannot be provided to UNT, UNT shall be notified of such entrance onto UNT's property as soon as practicable. Denton shall also have the right to enter upon UNT's property at any tflrte in order to make repairs or h~aprovements to the Property. UNT agrees to assist Denton by arrm~ging for necessm'y access to locations on UNT's property, which requires the use of a key. 12. .DEFAULT. lINT shall be in default under this Agreement if: A. UNT fails to pay muy rem payment due m~der this Agreement within thfl-ty (30) days of receipt and approval of each invoice; or B. UNT fails to comply witlx any term, condition, or covenant of this Agreement, and that failure is not cured within thirty (30) days after mitten notice is issued to UNT by Denton. C. Should UNT default in the payment of rental obligations hereunder, for a thirty day period, then Denton may assess interest at one percent (i %) per month or the maximm~a rate allowed by law, wlfichever is less. 13. REMEDIES. On the occurrence of any default under this Agreement, Denton may enforce the pelYonnance of tkis Lease in any mmmer provided by law, in equity, or as specifically provided in this Agreement. UNT hereby specifically waives any claim that LINT may have with respect to any obligation of Denton to ~rdtigate its dmr~ages in the event of UNT's default hereunder. Ir~ particular, but without limitation, Denton shall have the option to pursue any one or more of the following remedies without any notice of demand whatsoever: A. Terminate this Agreement. In this case UNT shall hrmaediately surrender the Property to Denton. However, ifUNT fails to surrender the Property to Dentone, Denton may, without prejudice to any other remedy which Denton may have for possession of the Property or for an'earage in rent or any sum due hereunder, enter upon and take possession of the Property; or B. Enter upon the Property_, without tenr~h~ating this Agreement. Denton shall not be liable for prosecution for any clahx~ for damages, and Denton may do whatever UNT is obligated to do under the terms ofth/s Agreement. UNT shall rehuburse Denton, on detained, for ali reasonable expenses that Denton incurs in effecting compliance with UNT's obligations under this Agreement, together with interest thereon at the maximum rate allowable by law from the date thirty days after receipt and approval of an invoice. Pursuit of any of the foregoing remedies shall not preclude Denton's pursuit of any other remedy herein provided or any other remedies provided by law, nor shall pursuit of any remedy herein constitute a forfeiture or waiver of any rent due to Denton hereunder or of any damages accruing to Denton, by reason of the violation of the terms, provisions, and covenants herein contained. The rights and privileges given to Denton in this paragraph shall be cmrtulative of, and without prejudice to, any rights or remedies given to Denton by law to procure possession, or to enforce the payment of rent, or perfmznance of the other covenants hereof. No waiver by Denton of any violation or breach of any of the terms, provisions, and covenants herein contained shall be deemed or construed to constitute a waiver of any other or future violation of breach of any of the provisions, conditions, or covenants herein. 14. .NOTICES. Any notice or other written letter or instrument required or penuitted to be delivered under the tenus of this Agrecauent shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to Denton or LINT, as the case may be, at the following addresses: DENTON: UNT: CITY OF DENTON, TEXAS Attention: Cmmnunications Mgr. · Hmry Hettinger 901-A Texas S~eet Denton, Texas 76201 Fax: (940) 349-7334 THE UNIVERSITY OF NORTH TEXAS Attention: Teleco~ranmaications Manager Ken Sedgley 1706 Chestnut Street Denton, Texas 76201 Telephone: (940) 349-7172 Telephone: (940) 565-4299 4 15. MISCELLANEOUS PROVISIONS: A. Compliance WithTheLaw. UNT shall at UNT's sole cost and expense, obtain the necessary license and penuits required to conduct UNT's activities respecting the Property. UNT shall also comply with all gover~wnental laws, ordinances, resolutions, and regulations applicable to the Property, or UNT's use thereof. B. Independent Contractor. UNT is acting as an independent contractor respecting this Agreement, mhd is not an employee, officer or agent of Denton. C. .No Waiver. No waiver by either party hereto of any default under this Lease shall be deemed to be a waiver of any subsequent default of the same, of any other term, condition, or covenant contained in tlfis Agremuent. D. Governing Law/Venue. This lease shall be governed by and construed in accordance with the laws of the State of Texas. Any and all suits brought for the enforcement of this Agremnent, or breach of this Agreement, or for any other cause of action brought pursuant to this Agreement shall be brought in the courts of Denton County, Texas. E. Invalid Provisions. Should any provision of this Agreement been deemed or found to be invalid by any legislative, administrative, or judicial body, or for any other reason whatsoever, the other provisions of the Agreement shall remain in full force and effect, and shall be unaffected by such declaration of invalidity. F. Entirety~. This Agremuent and all exhibits attached hereto, if any, contain the entire agreement between Denton and UNT with respect to flue subject matter herehh, and may not be altered, modified, changed, annulled, or mnended in any mmmer without the written consent of both parties. G. Effective Date. 2001. The effective date of this Agreement shall be the 18th day of August, H. Altemative DisputeResolution. Chapter 2260 of the Texas Govermuent Code establishes a dispute resolution process for contracts involving goods, services mhd certain types of projects. If Chapter 2260 applies to this Agreement, the parties must use the statutory dispute resolution process to attempt to resolve disputes arising under this Agreement. IN WITNESS WHEREOF, Denton and UNT have executed tlfis Agreement in four (4) original counterparts, by theh' duly authorized officers and representatives, on this the day of ~ 2004. "DENTON" CITY OF DENTON, TEXAS A Texas Mmzicipal Corporation By: Michael A. Conduff City Ma2ager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY "UNT" THE UNIVERSITY OF NORTH TEXAS By: 'Phillip C. Dieh81 // Vice President for Finance & Business Affairs 6 ATTEST: APPROVED AS TO LEGAL FORM: By: S:\Oar Doouments\Contraots\04\LrNT-Dark Fiber Lease-ganbting-2004.doe ORDINANCE NO. 2004- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A DARK FIBER LEASE AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE UNIVERSITY OF NORTH TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVDING FOR RETROACTIVE APPROVAL OF THE AGREEMENT; AND PROVDING AN EFFECTIVE DATE. WHEREAS, the provisions of State law (Texas Utilities Code {}54.2025, as amended) permit the City to lease the excess capacity of its fiber optic cable system; the City finds that it has excess capacity in its fiber optic system, and desires to lease the same, in a non- discriminatory manner, to the University of North Texas for its public purposes; and WHEREAS, the City Council deems it necessary and appropriate and in the public interest to enter into the Dark Fiber Lease Agreement with the University of North Texas for a term of five (5) years; and WHEREAS, negotiations began on this lease agreement prior to its execution, and the City and the University of North Texas entered into a certain Letter of Intent signed on September 10, 2003, which generally put into written form the previous understandings of the parties; and the City and the University of North Texas, having previously orally agreed to lease one (1) pair of dark fiber for the immediate use of the University of North Texas, connecting the UNT Main Campus (Matthews Hall) to UNT Research Park, Second Floor Main Distribution Frame, both in the City of Denton, Texas; and WHEREAS, the City and the University of North Texas have stipulated agreed that the Dark Fiber Lease Agreement shall be effective from and after January 1, 2003, which shall be the commencement date of the said lease; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the recitations in the preamble are true and correct and are incorporated herewith as a part of this Ordinance. SECTION 2: That the City Manager is hereby authorized to execute a Dark Fiber Lease Agreement by and between the City of Denton, Texas and the University of North Texas for the lease of dark fiber optics pertaining to the matters hereinabove described, in substantially the form of the Dark Fiber Lease Agreement attached hereto and incorporated herewith by reference. SECTION 3: That the expenditure of funds as provided for in the attached Dark Fiber Lease Agreement, is hereby authorized. 1 EXHIBIT 5 SECTION 4 That the Dark Fiber Lease Agreement is hereby ratified and retroactively approved and confirmed, and shall be effective from and after January 1, 2003. SECTION 5: That except as provided in Section 4 hereinabove, this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Documents\Ordinances\04\UNT Dark Fiber Lease Ordinance.doc 2 THE STATE OF TEXAS COUNTY OF DENTON DARK FIBER LEASE AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND TltFJ UNIVERSITY OF NORTH TEXAS THIS LEASE AGREEMENT is agreed between the parties to have an effective date of the 1st day of January, 2003, hereafter the "Effective Date" by and between the City of Denton, Texas, a home-rule municipal corporation ("Denton") and the University of North Texas, a university chartered under the laws of the State of Texas ("UNT"), upon the following terms and conditions: WHEREAS, this Dark Fiber Lease Agreement ("Agreement") replaces, amends, was contemplated by, and supercedes that certain Letter of Intent entered into by Denton and UNT on the 10th day of September, 2003; and WHEREAS, notwithstanding that this Dark Fiber Lease Agreement has been signed and approved after January 1, 2003, Denton and UNT desire and agree that the effective date of this Agreement is to be stated, for all purposes, as January 1, 2003, the date that service is deemed to have cormnenced respecting the leased property, i.e. one pair of dark fibers rmming fi:om The University of North Texas Main Campus - Matthews Hall, located at 1300 West Highland Street 76201 to UNT Research Park, Second Floor Main Distribution Frame located at 3 940 Elm Street 76207, both in the City of Denton, Texas; and WHEREAS, this Dark Fiber Lease Agreement, by its provisions, takes into account the present circumstances as well as the desires of both Denton and UNT respecting the Property described below in Paragraph 1. NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, Denton and UNT do hereby AGREE to the following terms and conditions: 1. LEASE GRANT. For and in consideration of the premises, covenants and agreements provided in this Agreen~ent, Denton, effective Jmmary 1, 2003 has leased, granted and demised for the term of this lease unto LINT: one pair of dark fibers owned by Denton, hereinafter referred to herein as the "Property;" said Property being situated in the City of Denton, Denton County, Texas. 2. TERM. The lease term (the "Term") of this Agreement shall be for five (5) years, commencing effective on January 1, 2003 and expiring on December 31, 2007. Denton, however retains the absolute right to terminate this Agreement upon giving Tenant sixty (60) days written notice of tenuinafion in the event of any uncured default. In the event of termination of this Agreement upon sixty (60) days written notice by Denton, Denton shall be entitled to reimbursement for the cost of the construction and installation of the one pair of dark fibers. Denton and UNT agree that a significant part of the rental calculation is based upon the cost incurred by Denton to complete the construction and installation of the one pair of dark fibers. 3. SECURITY DEPOSIT. Denton does not require that UNT pay to Denton a security deposit respecting this Agreement. 4. RENT. UNT shall pay rent to Denton, at the address specified herein for notices to the Denton provided herein, without any offset or deduction, regarding the Property at the rate of $1,840.50 per month for s/xty (60) consecutive months. The first payment of rent shall be a lump-sm payment of rent due and payable on May 1, 2004 and shall total $29,448, and shall cover rite sixteen (16)-month lease period fi:om January 1, 2003 to April 30, 2004. All subsequent $I,840.50 monthly payments of rent owing by UNT to Denton shall be due and payable on the first day of each subsequent month, subject to receipt and approval of an invoice by UNT at least thirty (30) days prior to the date of payment, until the expiration or termination of this Agreement. Denton shall invoice UNT in advance for each such payment. Invoices shall be sent to PPS, PO Box 310499, Denton, Texas 76203. 5. OPTION TO RENEW. Provided that Denton has not earlier terminated this Agreement as permitted herein, and further provided that UNT is not in default with respect to the terms and provisions of this Agreement, UNT shall have the option to notify Denton, in writing, within the period beginning one hundred and twenty (120) days and ending sixty (60) days prior to the end of the five (5) year tenr~ provided by this Agreement, that Tenant desires to extend the terms of this Agreement for one additional five (5) year term. All provisions of this Agreement, save and except the rent obligation, shall be the same. Denton shall determine the amount of rent that is to be charged to LINT within tlfirty (30) days after notification by UNT and shall communicate that amount to UNT, in writing. LINT shall then consider such rental amount and shall notify Denton, in writing, within fifteen (15) days after the receipt of notice fi:om Denton, about whether LINT desires to consmmr~ate the renewal of the Agreement, considering the amount of rental established by Denton. 6. TENANT'S RESPONSIBILITIES. In return for Denton's lease of the Property, UNT agrees to provide the following services, to wit: A. At the termination of the term of this Agreement, or of any extension thereof, UNT shall surrender the Property to Denton, in the same condition as it existed on the first day of the Agreement, subject however, to allowance for reasonable wear, tear and deterioration. 7. FIBER PERFORMANCE. Denton covenants to cormnence repairs witt:fin one (1) hour of notification, which repairs shall be completed as expectiently as possible, utilizing spare resources fi:om Denton's perpetual inventory. The end-to-end optical budget of the fiber segment should not exceed 9 db. The fiber cable shall support both wavelengths at 1310 and 1550 nanometers. UNT reserves the right to have fiber performance tested by an independent test organization for conformance with the optical specifications stated above. A hard copy of the final docm]aent, consisting of a complete set of end-to-end power attenuation and OTDR readings for 2 each single-mode fiber end at 1310 and I550 nanometers, shall be provided to UNT along with the actual cable route and total footage for each fiber segment. 8. CONDITION OF PROPERTY. Denton and UNT agree that once the one dark fiber pair is installed, if for documented adequate roason, the fiber does not function for the purposes intended by this Agreement, then LINT will be released from its obligation to pay rent for any period of time thereafter, provided that Denton has had a reasonable opportunity to test the performance of the equipment and reasonably agrees that the equipment in question no longer meets the purposes intended by LINT. UNT hereby acknowledges that it has inspected the Property, that it is in place and functioning as of January 1, 2003 as well as on this date, and UNT accepts and approves of the Property in its present condition. 9. INDEMNIFICATION. UNT shall possess and use the Property at UNT's sole risk. Neither UNT, nor Denton, shall have any obligation to indemnify the other party hereto in the case of any loss or liability arising from the use of the Property. 10. ASSIGNMENT AND SUBLETTiNG. UNT shall not sublet or assign all or any portion of this Agreement or the Property, or any interest therein, without the prior written consent of Denton. Any assignment or subletting in violation of this paragraph shall be void. 11. LANDLORD'S ACCESS TO THE PROPERTY. It is expressly agreed that Denton shall have the right to enter onto UNT's property at any reasonable time to inspect the condition of the Property, the use thereof, or for any other lawful purpose, so long as prior notice is provided to UNT. In the event that such prior notice cannot be provided to UNT, UNT shall be notified of such entrance onto UNT's property as soon as practicable. Denton shall also have the right to enter upon UNT's property at any time in order to make repairs or improvements to the Property. UNT agrees to assist Denton by arranging for necessary access to locations on UNT's property, which requires the use of a key. I2. DEFAULT. tINT shall be in default under this Agreement if: A. UNT fails to pay any rent payment due m~der this Agreement within thirty (30) days of receipt and approval of each invoice; or B. UNT fails to comply with any term, condition, or covenant of this Agroement, and that failure is not cured within thirty (30) days after written notice is issued to UNT by Denton. C. Should UNT default in the payment of rental obligations hereunder, for a tlfirty day period, then Denton may assess interest at one percent (1%) per month or the maxhrtum rate allowed by law, whichever is less. 13. REMEDIES. On the occurrence of any default under this Agreement, Denton may enforce the performance of this Lease in any manner provided by Iaw, in equity, or as specifically provided in this Agreement. UNT hereby specifically waives any claim that UNT may have with respect to any obligation of Denton to mitigate its dmnages in the event of UNT's default hereunder. 3 In particular, but without limitation, Denton shall have the option to pursue any one or more of the following remedies without any notice of demand whatsoever: A. Termh~ate tbs Agreement. In this case UNT shall flrnuediately surrender the Property to Denton. However, ifUNT fails to surrender the Property to Denton, Denton may, without prejudice to any other remedy which Denton may have for possession of the Property or for arrearage in rent or any stun due hereunder, enter upon and take possession of the Property; or B. Enter upon the Property_, without tenuin.a..t~., g..t...his Agreement. Denton shall not be liable for prosecution for any claim for damages, and Denton may do whatever UNT is obligated to do under the terms of this Agreement. UNT shall reimburse Denton, on demand, for all reasonable expenses that Denton incurs in effecting compliance with UNT's obligations under this Agreement, together with interest thereon at the maximum rate allowable by law from the date thirty days after receipt and approval of an invoice. Pursuit of any of the foregoing remedies shall not preclude Denton's pursuit of any other remedy herein provided or any other remedies provided by law, nor shall pursuit of any remedy herein constitute a forfeiture or waiver of any rent due to Denton hereunder or of any damages accruing to Denton, by reason of the violation of the terms, provisions, and covenants herein contained. The rights and privileges given to Denton in this paragraph shall be cumulative of, and without prejudice to, any rights or remedies given to Denton by law to procure possession, or to enforce the payment of rent, or performance of the other covenants hereof. No waiver by Denton of any violation or breach of any of the terms, provisions, and covenants here~ contained shall be deemed or construed to constitute a waiver of any other or future violation of breach of any of the provisions, conditions, or covenants herein. 14. NOTICES. Any notice or other written letter or instrument required or permitted to be delivered under the terms of th/s Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to Denton or UNT, as the case may be, at the following addresses: DENTON: UNT: CITY OF DENTON, TEXAS Attention: Co~mnunicafions Mgr. Harry Hettinger 901-A Texas Street Denton, Texas 76201 Fax: (940) 349-7334 THE UNiVERSiTY OF NORTH TEXAS Attention: Telecommunications Manager Ken Sedgley 1706 Chestnut Street Denton, Texas 76201 Telephone: (940) 349-7172 Telephone: (940) 565-4299 4 15. MISCELLANEOUS PROVISIONS: A. Compliance WithTheLaw. UNT shall at UNT's sole cost and expense, obtain the necessary license and penuits required to conduct UNT's activities respecting the Property. UNT shall also comply with all govennnental laws, ordinances, resolutions, and regulations applicable to the Property, or UNT's use thereof. B. Independent Contractor. UNT is acting as an independent contractor respecting this Agreement, and is not an employee, officer or agent of Denton. C. No Waiver. No waiver by either party hereto of any default under this Lease shall be deemed to be a waiver of any subsequent default of the same, of any other term, condition, or covenant contained in this Agreement. D. Governing Law/Venue. This lease shall be governed by and construed in accordance with the laws of the State of Texas. Any and all suits brought for the enforcement of this Agreement, or breach of this Agreement, or for any other cause of action brought pursuant to this Agreement shall be brought in the courts of Denton County, Texas. E. Invalid Provisions. Should any provision of this Agreement been deemed or found to be invalid by any legislative, administrative, or judicial body, or for any other reason whatsoever, the other provisions of the Agreement shall remain in full force and effect, and shall be unaffected by such declaration of invalidity. F. Entirety. This Agreement and all exhibits attached hereto, if any, contain the entire agreement between Denton and UNT with respect to the subject matter herein, and may not be altered, modified, changed, annulled, or amended in any manner without the written consent of both parties. G. Effective Date. 2003. The effective date of this Agreement shall be the 1st day of January, H. Alternative Dispute Resolution. Chapter 2260 of the Texas Govermuent Code establishes a dispute resolution process for contracts involving goods, services and certain types of projects. If Chapter 2260 applies to this Agreement, the parties must use the statutory dispute resolution process to attempt to resolve disputes arising under this Agreement. IN WITNESS WHEREOF, Denton and UNT have executed tkis Agreement in tkree (3) original counterparts, by their duly authorized officers and representatives, on this the day of ,200._. "DENTON" CITY OF DENTON, TEXAS A Texas Municipal Corporation By: Michael A. Conduff City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: "UNT" THE UNIVERSITY OF NORTH TEXAS By: Phillip C. Di/bel,/' .... /" Vice President for Finance & Business Affairs 6 ATTEST: By: APPROVED AS TO LEGAL FORM: By: 7 AGENDA DATE: DEPARTMENT: CM/ACM: AGENDA INFORMATION SHEET September 7, 2004 Fiscal Operations Kathy DuBose ~ SUBJECT: Consider adoption of an ordinance authorizing the issuance, sale, and delivery of City of Demon Utility System Revenue Refunding Bonds, Series 2004, and approving and authorizing instruments and procedures relating thereto; and providing an effective date. BACKGROUND: On September 7, 2004, David Medanich of First Southwest Company, the City's Financial Advisor, and Ted Brizzolara III of McCall, Parkhurst and Horton, the City's Bond Counsel, will presem the underwriting company of the City of Demon Utility System Revenue Refunding Bonds, Series 2004. The $24 million (plus cost of issuance) will be used to refund a portion of the City's outstanding Utility System Revenue Bonds for the purpose of lowering the debt service requirements associated with the System debt, and pay the cost of issuance of the Bonds. This refunding (refinancing at a lower imerest rate) will save approximately $2.9 million over the life of the bonds. PRIOR ACTION/REVIEW (Council, Boards, Commissions): The projects related to the bonds were approved and funded in previous capital budgets and bond issues, respectively. FISCAL INFORMATION: This refunding will save the City approximately $2.9 million in debt service over the life of the bonds equating to 6% present value savings. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations EXHIBIT 6 ORDINANCE NO. 2004- ORDiNANCE AUTHORIZiNG THE ISSUANCE, SALE, AND DELiVERY OF CITY OF DENTON UTILITY SYSTEM REVENUE REFUNDiNG BONDS, SERIES 2004, AND APPROViNG AND AUTHORIZING iNSTRUMENTS AND PROCEDURES RELATING THERETO; AND PROVIDiNG AN EFFECTiVE DATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the City of Denton, Texas, heretofore has duly issued the following revenue bonds: City of Denton Utility System Revenue Bonds, Series 1992, dated March 1, 1992; City of Denton Utility System Revenue Bonds, Series 1993, dated March 1, 1993; City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-B, dated June 1, 1993; City of Denton Utility System Revenue Bonds, Series 1996, dated May 1, 1996; City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, dated May 1, 1996; City of Denton Utility System Revenue Bonds, Series 1998, dated March 15, 1998; City of Denton Utility System Revenue Refunding Bonds, Series 1998A, dated July 15, 1998; City of Denton Utility System Revenue Refunding Bonds, Series 1998B, dated August 1, 1998; City of Denton Utility System Revenue Bonds, Series 2000A, dated April 15, 2000; City of Denton Utility System Revenue Bonds, Taxable Series 2000B, dated April 15, 2000; City of Denton Utility System Revenue Refunding and Improvement Bonds, Series 2001, dated April 15, 2001; City of Denton Utility System Revenue Bonds, Series 2002A, dated April 1, 2002; City of Denton Utility System Revenue Bonds, Taxable Series 2002B, dated April 1, 2002; and City of Denton Utility System Revenue Refunding and Improvement Bonds, Series 2003, dated April 1, 2003; WHEREAS, the City Council of the City of Denton deems it necessary and advisable to refund the City's outstanding revenue bonds described in Schedule I hereto (the "Refunded Bonds"); and BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 WHEREAS, the City Council of the City deems it necessary and advisable to authorize, issue, and deliver the additional Utility System Revenue Bonds hereinafter described to refund the Refunded Bonds; and WHEREAS, the Series 2004 Bonds hereinafter authorized and described are to be issued, sold and delivered pursuant to Chapters 1207, Texas Government Code, the City's Home Rule Charter, and other applicable laws, NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAiNS: Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate principal amount of $. , for the purpose of (a) refunding the Refunded Bonds in order to lower the overall debt service requirements of the City's Combined Waterworks, Sewer and Electric Light and Power System (the "System") and (b) paying costs of issuance associated with the sale of such bonds, and such bonds shall be designated "City of Denton Utility System Revenue Refunding Bonds, Series 2004" (the "Bonds"). Section 2. DESCRIPTION OF THE BONDS. (a) With respect to the Series 2004 Bonds, initially there shall be issued, sold, and delivered hereunder a single fully registered bond, without interest coupons, payable in installments of principal (the "Initial Series 2004 Bond"), but the Initial Series 2004 Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner hereinafter provided. The term "Series 2004 Bonds" as used in this Ordinance shall mean and include collectively the Initial Series 2004 Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Series 2004 Bond" shall mean any of the Series 2004 Bonds. (b) The term "Initial Bond" as used in this Ordinance shall mean and include collectively the Initial Series 2004 Bond, the term "Bonds" as used in this Ordinance shall mean and include collectively the Initial Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURITIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. (a) The Initial Series 2004 Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated September 1, 2004, in the denomination and aggregate principal amount of $ numbered R- 1, payable in annual installments of principal to the initial registered owner thereof, to-wit: RBC DAIN RAUSCHER INC., as representative or to the registered assignee or assignees of said Bond or any portion or portions thereof (in each case, the "registered owner"), with the annual installments of principal of the Initial Series 2004 Bond to be payable on the dates, respectively, and in the principal amounts, respectively, stated in the FORM OF INITIAL BOND set forth in this Ordinance. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 2 (b) The Initial Series 2004 Bond (i) may and shall be prepaid or redeemed prior to the respective scheduled due dates of installments of principal thereof, (ii) may be assigned and transferred, (iii) may be converted and exchanged for other Bonds, (iv) shall have the characteristics, and (v) shall be signed and sealed, and the principal of and interest on the Initial Series 2004 Bond shall be payable, all as provided, and in the manner required or indicated, in the FORM OF INITIAL SERIES 2004 BOND set forth in this Ordinance. Section 4. iNTEREST. The unpaid principal balance of the Initial Series 2004 Bond shall bear interest from the date of each Initial Series 2004 Bond to the respective scheduled due dates, or to the respec- tive dates of prepayment or redemption, of the installments of principal of the Initial Series 2004 Bond, and said interest shall be payable, all in the manner provided and at the rates and on the dates stated in the FORM OF INITIAL SERIES 2004 BOND set forth in this Ordinance. Section 5. FORM OF INITIAL SERIES 2004 BOND. The form of the Initial Series 2004 Bond, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be endorsed on the Initial Series 2004 Bond, shall be substantially as follows: FORM OF INITIAL SERIES 2004 BOND NO. R-1 $ UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE REFUNDING BOND SERIES 2004 THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of (. DOLLARS) in annual installments of principal due and payable on December 1 in each of the years, and in the respective principal amounts, as set forth in the following schedule, and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows: BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 3 PRINCIPAL iNTEREST YEAR AMOUNT RATE(%) YEAR PRINCIPAL AMOUNT INTEREST RATE(%) 2005 $ 2015 2006 2016 2007 2017 2008 2018 2009 2019 2010 2020 2011 2021 2012 2022 2013 2023 2014 2024 2025 Interest shall first be due and payable on December 1, 2004, and semiannually on each June 1 and December 1 thereafter while this Bond or any portion hereof is outstanding and unpaid. Said interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. THE iNSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The installments of principal and the interest on this Bond are payable to the registered owner hereof through the services of JPMORGAN CHASE BANK, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal and/or interest payment date by check, dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The Issuer covenants with the registered owner of this Bond that on or before each principal and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" maintained pursuant to the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IN THE EVENT of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day next preceding the date of mailing of such notice. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 4 IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banlcing institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banl~ing institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $. for the purpose of (a) refunding the City's outstanding revenue bonds described in Schedule I to the Bond Ordinance (the "Refunded Bonds") in order to lower the overall debt service requirements of the City's Combined Waterworks, Sewer and Electric Light and Power System (the "System") and (b) paying costs of issuance associated with the sale of this Bond. ON DECEMBER 1, 2014, or on any date whatsoever thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and, if in part, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar for cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 5 owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hereof shall have a single stated principal maturity date corresponding to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity on the same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED 1N THE BOND ORDINANCE, THIS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 6 include initially the "Net Revenues of the System" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNER hereof shall never have the fight to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual signature or facsimile of the City Secretary of the Issuer, has caused the official seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated September 1, 2004. ATTEST: CITY OF DENTON, TEXAS By: By: Jennifer Walters City Secretary, City of Denton, Texas (CITY SEAL) Euline Brock Mayor, City of Denton, Texas (BOND INSURANCE LEGEND, IF ANY) BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 7 FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this (COMPTROLLER'S SEAL) Comptroller of Public Accounts of the State of Texas Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration and Transfer. (a) The Issuer shall keep or cause to be kept at the Austin, Texas, corporate trust office of JPMORGAN CHASE BANK (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and registrations as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Boolcs the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Boolcs confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registra- tion Boolcs only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing (i) the assignment of the Bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Bond, to the extent of the unpaid or unredeemed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the initial registered owner thereof. All Bonds issued and delivered in conversion of and exchange for the Initial Bond shall be in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated principal maturity date), shall be in the form prescribed in the FORM OF SUBSTITUTE SERIES 2004 BOND set forth in this Ordinance, and shall have the characteristics, and may be assigned, transferred, and converted as hereinafter provided. If the Initial Bond or any portion thereof is assigned and transferred or converted the Initial Bond must be surrendered to the Paying Agent/Registrar for cancellation, and each Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 8 installment of principal or portion thereof for which the substitute Bond is being exchanged; each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If only a portion of the Initial Bond is assigned and transferred, there shall be delivered to and registered in the name of the initial registered owner substitute Bonds in exchange for the unassigned balance of the Initial Bond in the same manner as if the initial registered owner were the assignee thereof. If any Bond or portion thereof other than the Initial Bond is assigned and transferred or converted each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is exchanged. A form of assignment shall be printed or endorsed on each Bond, excepting the Initial Bond, which shall be executed by the registered owner or its duly authorized attorney or representative to evidence an assignment thereof. Upon surrender of any Bonds or any portion or portions thereof for transfer of registration, an authorized representative of the Paying Agent/Registrar shall make such transfer in the Registration Books, and shall deliver a new fully registered substitute Bond or Bonds, having the characteristics herein described, payable to such assignee or assignees (which then will be the registered owner or owners of such new Bond or Bonds), or to the previous registered owner in case only a portion of a Bond is being assigned and transferred, all in conversion of and exchange for said assigned Bond or Bonds or any portion or portions thereof, in the same form and manner, and with the same effect, as provided in Section 6(d), below, for the conversion and exchange of Bonds by any registered owner of a Bond. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such transfer and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of any Bond or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (b) Ownership of Bonds. The entity in whose name any Bond shall be registered in the Registration Boolcs at any time shall be deemed and treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (c) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day next preceding the date of mailing of such notice. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 9 (d) Conversion and Exchange or Replacement: Authentication. Each Bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or unredeemed principal balance or principal amount thereof, may, upon surrender of such Bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the registered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF SUBSTITUTE SERIES 2004 BOND set forth in this Ordinance, in the denomination of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unredeemed principal balance or principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in installments; each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If a portion of any Bond (other than the Initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the Initial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. The Paying Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be converted and exchanged or replaced. It is specifically provided that any Bond authenticated in conversion of and exchange for or replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the Initial Bond, but each substitute Bond so authenticated after such first scheduled Record Date shall bear interest from the interest payment date next preceding the date on which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment date; provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall bear interest from the date to which such interest has been paid in full. The Initial Bond issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed a certificate, in the form substantially as follows: BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 1 0 "PAYiNG AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. JPMORGAN CHASE BANK Paying Agent/Registrar Dated By. Authorized Representative" An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein. Pursuant to Chapter 1201, Texas Government Code, the duty of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issued pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting any such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (e) In General. All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may and shall be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF SUBSTITUTE SERIES 2004 BOND set forth in this Ordinance. (f) Payment of Fees and Charges. The Issuer hereby covenants with the registered owners of the Bonds that it will (i) pay the standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer of registration BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 1 1 of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this Ordinance. (g) Substitute Paying Agent/Registrar. The Issuer covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or other- wise cease to act as such, the Issuer covenants that it will promptly appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar shall promptly transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. Section 7. FORM OF SUBSTITUTE SERIES 2004BOND. The form of all Series 2004 Bonds issued in conversion and exchange or replacement of any other Series 2004 Bond or portion thereof, including the form of Paying Agent/Registrar's Certificate to be printed on each of such Series 2004 Bonds, and the Form of Assignment to be printed on each of the Series 2004 Bonds, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance. FORM OF SUBSTITUTE SERIES 2004 BOND NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE REFUNDiNG BOND SERIES 2004 iNTEREST MATURITY ORIGINAL DATE RATE DATE OF ISSUE CUSIP NO. SEPTEMBER 1, 2004 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 12 , or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of and to pay interest thereon from September 1, 2004, to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being first due and payable on December 1, 2004, and semiannually on each June 1 and December 1 thereafter, except that if the date of authentication of this Bond is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. Said interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the Dallas, Texas, corporate trust office of JPMORGAN CHASE BANK, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared at the close of business on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Boolcs kept by the Paying Agent/Registrar, as hereinafter described. However, the payment of such interest may be made by any other method acceptable to the Paying Agent/Registrar and requested by, and at the risk and expense of, the registered owner hereof. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corpor- ate trust office of the Paying Agent/Registrar upon presentation and surrender of this Bond for redemption and payment at the principal corporate trust office of the Paying Agent/Registrar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IN THE EVENT of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day next preceding the date of mailing of such notice. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 13 IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banlcing institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banl~ing institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one of a series of Bonds initially dated September 1, 2004, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $ for the purpose of (a) refunding the City's outstanding revenue bonds described in Schedule I to the Bond Ordinance (the "Refunded Bonds") in order to lower the overall debt service requirements of the City's Combined Waterworks, Sewer and Electric Light and Power System (the "System") and (b) paying costs of issuance associated with the sale of the Bonds. ON DECEMBER 1, 2014, or on any date whatsoever thereafter, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeared on the 45th day prior to such redemption date and to major securities depositories, national bond rating agencies and bond information services; provided, however, that the failure of the registered owner to receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof that are to be so redeemed. If such written notice of redemption is sent and if due provision for such payment is made, all as provided above, the Bonds or portions thereof that are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price from the Paying Agent/Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. THIS BOND OR ANY PORTION OR PORTIONS HEREOF 1N ANY INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be transferred only in the Registration Boolcs of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 14 in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representative, to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Bonds. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such transfer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar for cancellation, ail in accordance with the form and procedures set forth in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to matur- ity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and will promptly cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System", as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 1 5 THE ISSUER has reserved the right, subject to the restrictions stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond and series of which it is a part. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual or facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. ATTEST: CITY OF DENTON, TEXAS By: By:. Jennifer Walters City Secretary, City of Denton, Texas (CITY SEAL) Euline Brock Mayor, City of Denton, Texas FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated JPMORGAN CHASE BANK Paying Agent/Registrar Authorized Representative BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 16 (BOND INSURANCE LEGEND, IF ANY) FORM OF ASSIGNMENT: AS SIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this representative or attorney thereof, hereby assigns this Bond to / / (Assignee's Social Security or Taxpayer Identification Number) (print or typewrite Assignee's name and address, including zip code) Bond, or duly authorized and hereby irrevocably constitutes and appoints attorney to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full power of substitution in the premises. Dated: Signature Guaranteed: BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 17 NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution participating in a securities transfer association recognized signature guarantee program. Registered Owner NOTICE: This signature must correspond with the name of the Registered Owner appearing on the face of this Certificate in every particular without alteration or enlargement or any change whatsoever. Section 8. DEFINITIONS. As used in this Ordinance the following terms shall have the meanings set forth below, unless the text hereof specifically indicates otherwise: (a) The terms "City" and "Issuer" shall mean the City of Denton, in Denton County, Texas. (b) The term "City Council" or "Council" shall mean the governing body of the City. (c) The term "Bonds" shall mean collectively the Initial Bond as defined and described in Section 2 of this Ordinance and all substitute bonds exchanged therefor, and all other substitute bonds and replacement bonds, issued pursuant to and as provided in this Ordinance. (d) The term "Parity Bonds" shall mean collectively (i) the outstanding City of Denton Utility System Revenue Bonds, Series 1992, authorized by ordinance passed on March 3, 1992 (the "Series 1992 Bonds"), (ii) the outstanding City of Denton Utility System Revenue Bonds, Series 1993, authorized by ordinance passed on March 16, 1993 (the "Series 1993 Bonds"), (iii) the outstanding City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-B, authorized by ordinance passed on June 8, 1993 (the "Series 1993-B Bonds"), (iv) the outstanding City of Denton Utility System Revenue Bonds, Series 1996, authorized by an ordinance passed on May 7, 1996 (the "Series 1996 Bonds"), (v) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, authorized by an ordinance passed on May 7, 1996 (the "Series 1996-A Bonds"), (vi) the outstanding City of Denton Utility System Revenue Bonds, Series 1998, authorized by an ordinance passed on March 24, 1998 (the "Series 1998 Bonds"), (vii) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1998A, authorized by an ordinance passed on July 21, 1998 (the "Series 1998A Bonds"), (viii) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1998B, authorized by an ordinance passed on August 4, 1998 (the "Series 1998B Bonds"), (ix) the outstanding City of Denton Utility System Revenue Bonds, Series 2000A, authorized by an ordinance passed on April 25, 2000 (the "Series 2000A Bonds"), (x) the outstanding City of Denton Utility System Revenue Bonds, Taxable Series 2000B, authorized by an ordinance passed on April 25, 2000 (the "Taxable Series 2000B Bonds"), (xi) the outstanding City of Denton Utility System Revenue Refunding and Improvement Bonds, Series 2001, authorized by an ordinance passed on April 17, 2001 (the "Series 2001 Bonds"), (xii) the outstanding City of Denton Utility System Revenue Bonds, Series 2002A, authorized by an ordinance passed on April 9, 2002 (the "Series 2002A Bonds"), (xiii) the outstanding City of Denton Utility System Revenue Bonds, Taxable Series 2002B, authorized by an ordinance passed on April 9, 2002 (the "Taxable Series 2002B Bonds") (xiv) the outstanding City of Denton Utility System Revenue Refunding and Improvement Bonds, Series 2003, authorized by an ordinance passed on April 1, 2003 (the "Series 2003 Bonds"), and (xv) the Bonds. (e) The term "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right to issue in the future, in accordance with Section 26 of this Ordinance. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 1 8 (f) The term "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's entire existing electric light and power system, together with all future extensions, improvements, enlargements, and additions thereto, and all replacements thereof, and (2) any other related facilities, all or any part of the revenues or income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not mean any water, sewer, electric, or other facilities of any kind which are declared not to be a part of the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not payable from or secured by any Pledged Revenues, but which are secured by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities; and such revenues, sources, or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance of such "Special Facilities Bonds". (g) The terms "Gross Revenues of the System" and "Gross Revenues" shall mean all revenues and income of every nature derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created by this Ordinance. (h) The terms "Net Revenues of the System", and "Net Revenues" shall mean all Gross Revenues after deducting therefrom an amount equal to the current expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service, provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised by the adoption of appropriate resolutions, are necessary to keep the System in operation and render adequate service to said City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds or Additional Bonds, shall be deducted in determining "Net Revenues". Payments required to be made by the City for water supply or water facilities, sewer services or sewer facilities, fuel supply, and for the purchase of electric power, which payments under law constitute operation and maintenance expenses of any part of the System, shall constitute and be regarded as expenses of operation and maintenance of the System under this Ordinance. Depreciation and amortization shall not constitute or be regarded as expenses of operation and maintenance of the System. (i) The term "Pledged Revenues" shall mean (1) the Net Revenues, plus (2) the net revenues of the Drainage System, which shall be calculated on the same basis as the Net Revenues of the System, plus (3) any additional revenues, income, or other resources relating to the System which are expected to be available to the City on a regular periodic basis, including, without limitation, any grants, donations, or income received or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which in the future may, at the option of the City, be pledged to the payment of the Parity Bonds or Additional Bonds. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 19 (j) The term "year" or "fiscal year" shall mean the fiscal year used by the City in connection with the operation of the System. (k) The term "Government Obligations" shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Government Series, and which may be in book-entry form. thereto. "Drainage System" means the City's entire existing drainage system and all facilities related (m) "Rate Stabilization Fund" means the City's separate Rate Stabilization Fund established for the purpose of stabilizing rates for ratepayers. Section 9. PLEDGE. (a) The Bonds are "Additional Bonds" as permitted by Sections 24 and 25 of the ordinance passed on March 10, 1983, authorizing the City of Denton Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"); and it is hereby determined, declared, and resolved that all of the Parity Bonds (including the Bonds) are secured and payable equally and ratably on a parity, and that Sections 8 through 28, of this Ordinance are supplemental to and cumulative of Sections 7 through 27 of the aforesaid ordinance passed on March 10, 1983, with Sections 8 through 29 of this Ordinance being applicable to all of the Parity Bonds. (b) The Parity Bonds and any Additional Bonds, and the interest thereon, including any interest coupons appertaining thereto, are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged to the establishment and maintenance of the Funds created by this Ordinance, and any Funds created by any ordinance authorizing the issuance of any Additional Bonds. The Parity Bonds and any Additional Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. Section 10. SYSTEM FUND. There heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a special fund to be entitled the "City of Denton Utility System Fund" (the "System Fund"). All Gross Revenues shall be credited to the System Fund immediately upon receipt, unless otherwise provided in this Ordinance. All current expenses of operation and maintenance of the System shall be paid from such Gross Revenues credited to the System Fund as a first charge against same. Before making any deposits hereinafter required to be made from the System Fund, the City shall retain in the System Fund at all times an amount at least equal to one-sixth of the amount budgeted for the then current fiscal year for the current operation and maintenance expenses of the System. Section 11. iNTEREST AND SINKING FUND. For the sole purpose of paying the principal of and interest on all Parity Bonds and Additional Bonds, there heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Revenue Bonds Interest and Sinking Fund" (the "Interest and Sinking Fund"). Section 12. RESERVE FUND. There heretofore has been, and is hereby, created, and there shall be established and maintained at JPMorgan Chase Bank, and hereafter, at the option of the City, established and maintained at any time at any national bank having a capital and surplus in excess of $25,000,000, a BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 20 separate fund to be entitled the "City of Denton Utility System Bonds and Additional Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and interest on any Parity Bonds or Additional Bonds when and to the extent the amounts in the Interest and Sinking Fund available for such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of any Parity Bonds or Additional Bonds. Section 13. EXTENSION AND IMPROVEMENT FUND. There heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Extension and Improvement Fund" (the "Extension and Improvement Fund"). The Extension and Improvement Fund shall be used for the purpose of paying the costs of improvements, enlargements, extensions, additions, replacements, or other capital expenditures related to the System, or for paying the costs of unexpected or extraordinary repairs or replacements of the System for which System funds are not available, or for paying unexpected or extraordinary expenses of operation and maintenance of the System for which System funds are not otherwise available, or for any other lawful purpose. Section 14. EMERGENCY FUND. There is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Emergency Fund" (the "Emergency Fund"). The Emergency Fund shall be used for the purpose of paying unexpected or extraordinary expenses of repair, replacement, operation, and maintenance of the System for which neither System funds nor the moneys in the Extension and Improvement Fund are available. There was deposited in the Emergency Fund simultaneously with the delivery of the Series 1983 Bonds to the initial purchasers thereof from lawfully available funds of the City the amount of $250,000. All investment interest income from the Emergency Fund shall be transferred to the System Fund as received. Section 15. DEPOSITS OF PLEDGED REVENUES. Pledged Revenues shall be credited to or deposited in the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund, and other funds when and as required by this Ordinance and any ordinance authorizing the issuance of Additional Bonds. Section 16. iNVESTMENTS. Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance of Additional Bonds, may, at the option of the City, be placed in time deposits or certificates of deposit secured by obligations of the type hereinafter described, or be invested in Government Obligations (as defined in Section 8 hereof) or obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in obligations of instrumentalities of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such manner as will, in the opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expected to be needed. Such investments (except United States Treasury Obligations--State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current market value as of the last day of each fiscal year. Unless otherwise set forth herein, all interest and income derived from such deposits and investments immediately shall be credited to, BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 21 and any losses debited to, the Fund from which the deposit or investment was made, and surpluses in any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuance. Section 17. FUNDS SECURED. That money in all Funds created by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law. Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payments from Pledged Revenues in the System Fund when and as required by this Ordinance and any ordinance authorizing any Additional Bonds, and such deposits shall be made in the following manner and with the following irrevocable priorities, respectively: First, to the Interest and Sinking Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; then Second, to the Reserve Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; then Third, to the Extension and Improvement Fund, when and as required by Section 21 of this Ordinance. Section 19. iNTEREST AND SiNKiNG FUND REQUIREMENTS. The City shall cause to be deposited to the credit of the Interest and Sinking Fund the accrued interest and any premium received from the sale of the Initial Bond, and on or before the 25th day of each month, the City shall cause to be deposited to the credit of the Interest and Sinking Fund, in approximately equal monthly payments, amounts sufficient, together with any other funds on hand therein, to pay all of the interest or principal and interest coming due, including the principal amount of any Parity Bonds required to be redeemed prior to maturity pursuant to any mandatory redemption requirements, on the Parity Bonds and any Additional Bonds on the next succeeding interest payment date. Any moneys so deposited in the Interest and Sinking Fund with respect to a mandatory redemption requirement, together with other lawfully available funds of the City, may be used by the City, to purchase, in advance of a mandatory redemption date and at a price not exceeding the principal amount thereof plus accrued interest thereon to the date of purchase, Parity Bonds which would be subject to being chosen for mandatory redemption on such mandatory redemption date. The Paying Agent shall cancel any Parity Bonds so purchased. Section 20. RESERVE FUND REQUIREMENTS. There is now on hand in the Reserve Fund an amount of money and Government Obligations which is in excess of $3,000,000 and which is at least equal to the average annual principal and interest requirements of the outstanding Series 1992 Bonds, the Series 1993 Bonds, the Taxable Series 1993-B Bonds, the Series 1996 Bonds, the Series 1996-A Bonds, the Series 1998 Bonds, the Series 1998A Bonds, the Series 1998B Bonds, the Series 2000A Bonds, the Series 2000B Bonds, the Series 2001 Bonds, the Series 2002A Bonds, the Taxable Series 2002B Bonds, and the Series 2003 Bonds (the current "Required Reserve Amount"). Following the issuance and delivery of the Initial Bonds the Required Reserve Amount shall become and be an amount of money and investments equal to the average annual principal and interest requirements of all the outstanding Parity Bonds and Additional Bonds; provided further, however, that the Required Reserve Amount shall never be less than $3,000,000 if the maximum annual principal and interest requirements on all outstanding Parity Bonds and Additional Bonds exceeds $3,000,000. Immediately after the issuance and delivery of the Initial Bond there shall be deposited BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 22 to the credit of the Reserve Fund, from the proceeds of the sale of the Initial Bond, money sufficient to cause the Reserve Fund to contain an aggregate amount of money and investments equal to the Required Reserve Amount for all then outstanding Parity Bonds. After the delivery of any future Additional Bonds the City shall cause the Reserve Fund to be increased, if and to the extent necessary, so that such Fund will contain an amount of money and investments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of any Additional Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded initially and immediately after the delivery of any installment or issue of Additional Bonds shall be funded, within not more than five years from the date of such delivery, by deposits of Pledged Revenues in approximately equal monthly installments on or before the 25th day of each month. Principal amounts of the Parity Bonds and any Additional Bonds which must be redeemed pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund; but when and if the Reserve Fund at any time contains less than the Required Reserve Amount, then the City shall transfer from Pledged Revenues in the System Fund, and deposit to the credit of the Reserve Fund, monthly on or before the 25th day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The City specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the City shall cause all amounts in excess of the Required Reserve Amount to be deposited to the credit of the Interest and Sinldng Fund. Section 21. EXTENSION AND IMPROVEMENT FUND REQUIREMENTS. During each year, subject and subordinate to making the required deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall be required to deposit to the credit of the Extension and Improvement Fund, from Pledged Revenues in the System Fund, an amount equal to 8% of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: the Gross Revenues of the System for such year after deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance of the System for such year which are directly attributable to (i) all fuel costs related to the production of electric energy by the City and/or (ii) the purchase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Council, be deposited to the credit of the Improvement Fund as permitted by Section 22 (b) hereof, but no such additional deposit is required. All investment interest income from the Extension and Improvement Fund shall be retained in and remain a part of such Fund. Section 22. RATE STABILIZATION FUND. (a) In each fiscal year, the City hereby agrees to transfer the Transfer Amount (as defined below) from the Rate Stabilization Fund into the System Fund for the purpose of paying the current expenses of operation and maintenance of the System and pledges such Transfer Amount to the payment of the Bonds, all Parity Bonds and any Additional Bonds. (b) The Transfer Amount shall be an amount of moneys and investments contained in the Rate Stabilization Fund equal to the amount for each fiscal year of the City that will, when added to the otherwise expected Pledged Revenues for that fiscal year, produce an amount of Pledged Revenues during such fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 23 then outstanding Bonds, Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Bonds, Parity Bonds and Additional Bonds. (c) The Transfer Amount will be calculated and reflected in the annual budget for each fiscal year and will, on the first day of such fiscal year, be transferred from the Rate Stabilization Fund into the System Fund. Section 23. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Interest and Sinking Fund or the Reserve Fund, such deficiency shall be made up as soon as possible from the next available Pledged Rev- enues. (b) Subject to making the required deposits to the credit of the various Funds when and as required by this Ordinance or any ordinance authorizing the issuance of Additional Bonds, any surplus Pledged Revenues may be used by the City for any lawful purpose. Section 24. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS. On or before December 1, 2004, and semiannually on or before each June 1 and December 1 thereafter while any of the Parity Bonds or Additional Bonds are outstanding and unpaid the City shall make available to the Paying Agents therefor, out of the Interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Parity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At the direction of the City the Paying Agents shall either deliver paid Parity Bonds and Additional Bonds, and any interest coupons appertaining thereto, to the City or destroy all paid Parity Bonds and Additional Bonds, and any coupons appertaining thereto, and furnish the City with an appropriate certificate of cancellation or destruction. Section 25. FiNAL DEPOSITS. (a) Any Parity Bond or Additional Bond shall be deemed to be paid, retired, and no longer outstanding within the meaning of this Ordinance when payment of the principal of, redemption premium, if any, on such Parity Bond or Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption or provision for the proper giving of such notice having been made), or (ii) shall have been provided by irrevocably depositing with or making available to a Paying Agent therefor, in trust and irrevocably set aside exclusively for such payment, (1) money sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such Paying Agent pertaining to the Parity Bonds and Additional Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent. At such time as a Bond or Additional Bond shall be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled to the benefits of this Ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from such money or Government Obligations. (b) Any moneys so deposited with a paying agent may at the direction of the City also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the paying agent pursuant to this Section which is not required for the payment of the Parity Bonds and Additional Bonds, the redemption premium, if any, and BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 24 interest thereon, with respect to which such money has been so deposited, shall be turned over to the City or deposited as directed by the City. Section 26. ADDITIONAL BONDS. (a) The City shall have the right and power at any time and from time to time, and in one or more series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Parity Bonds or Additional Bonds, or other obligations. Such Additional Bonds, if and when authorized, issued, and delivered in accordance with this Ordinance, shall be payable from and secured by an irrevocable first lien on and pledge of the Pledged Revenues, equally and ratably on a parity in all respects with the Parity Bonds and any other outstanding Additional Bonds. (b) The principal of all Additional Bonds must be scheduled to be paid or mature on December 1 of the years in which such principal is scheduled to be paid or mature. Section 27. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS. Additional Bonds shall be issued only in accordance with this Ordinance, and no installment, Series, or issue of Additional Bonds shall be issued or delivered unless: (a) The Mayor of the City and the City Secretary sign a written certificate to the effect that the City is not in default as to any covenant, condition, or obligation in connection with all then outstanding Parity Bonds and Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinl~ing Fund and the Reserve Fund each contains the amount then required to be therein. (b) An independent certified public accountant, or independent firm of certified public accountants, acting by and through a certified public accountant, signs a written certificate to the effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar month period out of the 18-month period immediately preceding the month in which the ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least (i) 1.25 times an amount equal to the average annual principal and interest requirements, and (ii) 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such requirements are scheduled to be the greatest, of all Parity Bonds and Additional Bonds which are scheduled to be outstanding after the delivery of the then proposed Additional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection (b), if there has been any increase in the rates or charges for services of the System which is then in effect, but which was not in effect during all or any part of the entire period for which the Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public accountant, or in lieu of the certified public accountant a firm of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of (i) the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such in- creased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing their issuance for increasing the Reserve Fund to the Required Reserve Amount as required by Section 20 hereof. (d) All calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of any then proposed Additional Bonds shall be made as of the date of such Additional Bonds; and also in making calculations for such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursuant to any BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 25 applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. Section 28. GENERAL COVENANTS. The City further covenants and agrees that in accordance with and to the extent required or permitted by law: (a) Performance. It will faithfully perform at all times any and all covenants, undertaldngs, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Additional Bonds, and in each and every Parity Bond and Additional Bond; that it will promptly pay or cause to be paid the principal of and interest on every Parity Bond and Additional Bond, on the dates and in the places and manner prescribed in such ordinances and Parity Bonds or Additional Bonds; and that it will, at the times and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund; and any holder of the Parity Bonds or Additional Bonds may require the City, its officials, and employees, to carry out, respect, or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials, and employees. (b) Ci _ty's Legal Authod_ty. The City is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to create and issue the Parity Bonds and Additional Bonds; that all action on its part for the creation and issuance of the said obligations has been or will be duly and effectively taken, and that said obligations in the hands of the holders and owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. (c) Tire. The City has or will obtain lawful title to the lands, buildings, structures, and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures, and facilities, and every part thereof, for the benefit of the holders and owners of the Parity Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional Bonds in the manner prescribed herein, and has lawfully exercised such rights. (d) Liens. The City will from time to time and before the same become delinquent pay and discharge all taxes, assessments, and governmental charges, if any, which shall be lawfully imposed upon it, or the System, that it will pay all lawful claims for rents, royalties, labor, materials, and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, laborer's, materialman's, or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided, however, that no such tax, assessment, or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. (e) Operation of System; No Free Service. While the Parity Bonds or any Additional Bonds are outstanding and unpaid the City shall continuously and efficiently operate the System, and shall maintain the System in good condition, repair, and working order, all at reasonable cost. No free service of the System shall be allowed, and should the City or any of its agencies, instrumentalities, lessors, or concessionaires make use of the services and facilities of the System, payment monthly of the standard retail price of the services BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 26 provided shall be made by the City or any of its agencies, instrumentalities, lessors, or concessionaires out of funds from sources other than the revenues of the System, unless made from surplus Pledged Revenues as permitted by Section 23(b) hereof. (f) Further Encumbrance. While the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Bonds, unless said encumbrance is made junior and subordi- nate in all respects to the liens, pledges, covenants, and agreements of this Ordinance and any ordinance authorizing the issuance of Additional Bonds; but the right of the City to issue revenue bonds payable from a subordinate lien on surplus Pledged Revenues is specifically recognized and retained, as permitted under Section 23(b) hereof). (g) Sale, Lease or Disposal of Property_. No part of the System shall be sold, leased, mortgaged, demolished, removed or otherwise disposed of, except as follows: (1) To the extent permitted by law, the City may sell, lease, mortgage, demolish, remove or otherwise dispose of at any time and from time to time any property or facilities constituting part of the System only if (A) the City Council shall determine, as evidenced by a resolution to that effect, such property or facilities are not useful in the operation of the System, or (B) the proceeds of such sale are $250,000 or less, or the City Council shall determine, as evidenced by a resolution to that effect, the fair market value of the property or facilities exchanged is $250,000 or less, or (C) if such proceeds or fair market value exceed $250,000 the City Council shall determine, as evidenced by a resolution to that effect, that the sale or exchange of such property or facilities will not impair the ability of the City to comply during the current or any future fiscal year with the covenant of the City set forth in Section 28(i) of this Ordinance. The proceeds of any such sale or exchange not used to acquire other property necessary or desirable for the sale or efficient operation of the System shall forthwith, at the option of the City, (i) to be used to redeem or purchase Parity Bonds or Additional Bonds, (ii) otherwise be used to provide for the payment of Parity Bonds or Additional Bonds or (iii) be used for any other lawful purpose. (2) To the extent permitted by law, the City may lease or make contracts or grant licenses for the operation of, or make arrangements for the use of, or grant easements or other rights with respect to, any part of the System, provided that any such lease, contract, license, arrangement, easement or right (A) does not impede the operation of the System by the City and (B) does not in any manner impair or adversely affect the rights or security of the owners of the Parity Bonds or Additional Bonds under this Ordinance; and provided, further, that if the depreciated cost of the property to be covered by any such lease, contract, license, arrangement, easement or other right is in excess of $500,000, the City Council shall determine, as evidenced by a resolution to that effect, that the action of the City with respect thereto does not result in a breach of the conditions under this clause (2). Any payments received by the City under or in connection with any such lease, contract, license, arrangement, easement or right in respect of the System or any part thereof shall constitute Gross Revenues. (h) Insurance. (1) The City shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 27 and property damage insurance also shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. All insurance premiums shall be paid as an expense of operation of the System. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to CalTy insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the Bondholders and their representatives at all reasonable times. Upon the happening of any loss or damage covered by insurance from one or more of said causes, the City shall make due proof of loss and shall do all things necessary or desirable to cause the insuring companies to make payment in full directly to the City. The proceeds of insurance covering such property, together with any other funds necessary and available for such purpose, shall be used forthwith by the City for repairing the property damaged or replacing the property destroyed; provided, however, that if said insurance proceeds and other funds are insufficient for such purpose, then said insurance proceeds pertaining to the System shall be deposited in a special and separate trust fund, at an official depository of the City, to be designated the Insurance Account. The Insurance Account shall be held until such time as other funds become available which, together with the Insurance Account, will be sufficient to make the repairs or replacements originally required. (2) The annual audit hereinafter required may contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the maintenance of insurance, and shall state whether or not all insurance premiums upon the insurance policies to which reference is made have been paid. (i) Annual Budget and Rate Covenant. The City shall prepare, prior to the beginning of each fiscal year, an annual budget, in accordance with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail to indicate the probable Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of the System at all times as are necessary (1) to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (2) to produce an amount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. (j) Records. The City shall keep proper books of record and account in which full, true, proper, and correct entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any Bondholder, provided, that all books, documents, and vouchers relating to the City's electric system shall be made available for inspection only to the extent required by law, including, without limitation, the provisions of Section 552.133 of the Texas Government Code. To the extent consistent with the provisions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices. (k) Audits. After the close of each fiscal year while any of the Parity Bonds or any Additional Bonds are outstanding, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public accountant or an independent firm of certified public accountants. As soon as practicable after the close of each such year, and when said audit has been BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 28 completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspec- tion of the Bondholders and their agents and representatives at all reasonable times. (1) Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits, and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect ail franchises, permits, authorization, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and maintenance of the System. (m) No Competition. It will not operate, or grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any facilities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) No Arbitrage. The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any time throughout the term of any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such bonds to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Code and ail applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of all such bonds will not otherwise be used directly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the aforesaid Code, or any regulations pertaining thereto. Section 29. AMENDMENT OF ORDiNANCE. (a) The holders or owners of Parity Bonds and Additional Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City, provided, however, that nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Parity Bonds or Additional Bonds so as to: (1) Make any change in the maturity of the outstanding Parity Bonds or Additional Bonds; (2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; (4) Modify the terms of payment of principal of or interest on the outstanding Parity Bonds or Additional Bonds, or impose any conditions with respect to such payment; Affect the rights of the holders or owners of less than all of the Parity Bonds and Additional Bonds then outstanding; BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 29 (6) Change the minimum percentage of the principal amount of Parity Bonds and Additional Bonds necessary for consent to such amendment. (b) If at any time the City shall desire to amend the Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial publication of general circulation in The City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agents for inspection by ail holders or owners of Parity Bonds and Additional Bonds. Such publication is not required, however, if notice in writing is given to each holder or owner of Parity Bonds and Additional Bonds. (c) Whenever at any time not less than thirty days, and within one year, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the holders or owners of at least 51% in aggregate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then outstanding Parity Bonds and Additional Bonds and all future Parity Bonds and Additional Bonds shall thereafter be determined, exercised, and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the provisions of this Section shall be irrevocable for a period of one year from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders or owners of the same Parity Bond or Additional Bond during such period. Such consent may be revoked at any time after one year from the date of the first publication of such notice by the holder or owner who gave such consent, or by a successor in title, by filing notice thereof with the paying agents and the City, but such revocation shall not be effective if the holders or owners of 51% in aggregate principal amount of the then outstanding Parity Bonds and Additional Bonds as in this Section defined have, prior to the attempted revocation, consented to, and approved the amendment. (f) For the purpose of this Section, the fact of the holding of Parity Bonds or Additional Bonds which are in bearer, coupon form, by any bondholder and the amount and numbers of such bearer Parity Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certificate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, the Parity Bonds and Additional Bonds described in such certificate. The City may conclusively assume that such ownership continues until written notice to the contrary is served upon the City. The ownership of ail registered Parity Bonds and Additional Bonds shall be determined from the registration books kept by the registrar therefor. Section 30. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 3 0 amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Authority for Issuing Replacement Bonds. In accordance with Chapter 1201, Texas Government Code, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 31. COVENANTS REGARDiNG TAX-EXEMPTION. The Issuer covenants to refrain from any action which would adversely affect, and to take such action to ensure, the treatment of the Bonds as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business use", as defined in section 141 (b)(6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 14 l(b)(2) of the Code; BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 31 (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate", within the meaning of section 141(b)(3) of the Code, to the governmental use; (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141 (c) of the Code; (d) to refrain from taking any action which would otherwise result in the Bonds being treated as "private activity bonds" within the meaning of section 141 (b) of the Code; (e) to refrain from talcing any action that would result in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (19 to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investment property acquired with -- (1) proceeds of the Bonds invested for a reasonable temporary period of 30 days or less until such proceeds are needed for the purpose for which the Bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.148-1 (b) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the stated principal amount (or, in the case of a discount, the issue price) of the Bonds; (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage), Section 149(g) of the Code (relating to hedge bonds), and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(19 of the Code and to pay to the United States of America, not later that 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(19 of the Code. For purposes of the foregoing (a) and (b), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 32 with the Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary and reasonably possible, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. The Issuer covenants to comply with the covenants contained in this section after defeasance of the Bonds. In order to facilitate compliance with the above covenant (h), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such fund shall not be subject to the claim of any other person, including without limitation, the owners of the Bonds. The Rebate Fund is established for the additional purpose of compliance with Section 148 of the Code. Section 32. DISPOSITION OF PROJECT. The Issuer covenants that the property constituting the projects financed or refinanced with proceeds of the Refunded Bonds will not be sold or otherwise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally-recognized bond counsel that such sale or other disposition will not adversely affect the tax-exempt status of the Bonds. For purposes of the foregoing, the portion of the property comprising personal property and disposed of in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 33. iNTEREST EARNiNGS ON BOND PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Initial Bonds, other than proceeds deposited in the Interest and Sinldng Fund and the Reserve Fund, shall be used along with other available proceeds for improving the System; provided that after completion of the improvements if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinldng Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to the Covenants Regarding Tax-Exemption herein so as to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Ordinance. Section 34. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPiNION, CUSIP NUMBERS, PREAMBLE, AND iNSURANCE. The Mayor of the Issuer is hereby authorized to have control of the Initial Bonds issued hereunder and all necessary records and proceedings pertaining to the Initial Bond pending their delivery and the investigation, examination, and approval by the Attorney General of the State of Texas, and the registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bonds. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Initial Bond or on any Bonds issued and delivered in conversion of BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 33 and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. The preamble to this Ordinance is hereby adopted and made a part hereof for all purposes. If insurance is obtained on any of the Bonds, the Initial Bond and all other Bonds shall bear an appropriate legend concerning insurance as provided by the insurer. Section 35. SALE OF INITIAL BOND; BOND INSURANCE. The Initial Bond is hereby sold and shall be delivered to RBC DAIN RAUSCHER, INC., as representative of the underwriters named therein, in accordance with the Bond Purchase Agreement dated the date of this meeting and presented to the City Council of the City at this meeting. The Mayor of the Issuer is authorized and directed to execute, on behalf of the Issuer, said Bond Purchase Agreement in the form and substance submitted at this meeting. The Bonds shall be insured by MBIA (the "Insurer") and shall, to the extent not in conflict with this Ordinance, be subject to the insurance commitment from the Insurer to the Issuer. Section 36. OFFICIAL STATEMENT. An Official Statement dated as of the date of this meeting has been prepared in connection with the sale of the Initial Bonds and the Bonds, in the form and substance submitted at this meeting. Said Official Statement and any supplement or addenda thereto have been and are hereby approved, and their use in the offer and sale of the Bonds is hereby approved. It is further officially found, determined, and declared that the statements and representations contained in said Official Statement are true and correct in all material respects, to the best knowledge and belief of the Issuer. The distribution and use of the Preliminary Official Statement dated August __, 2004, prior to the date hereof is hereby ratified and approved. Section 37. REFUNDING OF REFUNDED BONDS. Concurrently with the delivery of the Initial Bonds the Issuer shall deposit an amount from the proceeds from the sale of the Initial Bonds with JPMorgan Chase Bank, as Escrow Agent, sufficient, together with other available amounts, to refund all of the Refunded Bonds in accordance with Chapter 1207, Texas Government Code, as amended. The Issuer hereby authorizes the execution of the Escrow Agreement dated as of September 1, 2004 between the Escrow Agent and the Issuer. The Mayor of the Issuer is authorized and directed to execute, on behalf of the Issuer, said Escrow Agreement in the form and substance presented to this meeting. It is hereby found and determined that the refunding of the Refunded Bonds is advisable and necessary in order to restructure the debt service requirements and procedures of the Issuer, and that the debt service requirements on the Bonds will be less than those on the Refunded Bonds, resulting in a reduction in the amount of principal and interest which otherwise would be payable both on an actual and a present value basis being an actual gross debt service savings of approximately $. , and a present value debt service savings of approximately $ Section 38. REDEMPTION OF REFUNDED BONDS. There is attached hereto as Exhibit B and made a part hereof for all purposes a notice of redemption for the Refunded Bonds, which Refunded Bonds are hereby called for redemption, and shall be redeemed, prior to their scheduled maturities, on the date, at the place, and at the price, set forth therein; the Issuer shall cause the appropriate notices of such redemption to be given in accordance with the requirements of the respective proceedings authorizing the issuance of such Refunded Bonds; and due provision shall be made by the Issuer in accordance with law for the payment of the redemption price of said bonds by the place of payment (paying agent) for such Refunded Bonds. Section 39. DTC REGISTRATION. The Bonds initially shall be issued and delivered in such manner that no physical distribution of the Bonds will be made to the public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as depository for the Bonds. DTC has BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 34 represented that it is a limited purpose trust company incorporated under the laws of the State of New York, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered under Section 17A of the federal Securities Exchange Act of 1934, as amended, and the Issuer accepts, but in no way verifies, such representations. The Initial Bond authorized by this Ordinance shall be delivered to and registered in the name of the Purchaser. However, it is a condition of delivery and sale that the Purchaser, immediately after such delivery, shall cause the Paying Agent/Registrar, as provided for in this Ordinance, to cancel said Initial Bond and deliver in exchange therefor a substitute Bond for each maturity of such Initial Bond, with each such substitute Bond to be registered in the name of CEDE & CO., the nominee of DTC, and it shall be the duty of the Paying Agent/Registrar to take such action. It is expected that DTC will hold the Bonds on behalf of the Purchaser and/or the DTC Participants, as defined and described in the Official Statement referred to and approved in Section 36 hereof (the "DTC Participants"). So long as each Bond is registered in the name of CEDE & CO., the Paying Agent/Registrar shall treat and deal with DTC in all respects the same as if it were the actual and beneficial owner thereof. It is expected that DTC will maintain a book entry system which will identify beneficial ownership of the Bonds by DTC Participants in integral amounts of $5,000, with transfers of ownership being effected on the records of DTC and the DTC Participants pursuant to rules and regulations established by them, and that the substitute Bonds initially deposited with DTC shall be immobilized and not be further exchanged for substitute Bonds except as hereinafter provided. The Issuer is not responsible or liable for any functions of DTC, will not be responsible for paying any fees or charges with respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing the records of DTC or the DTC Participants, or protecting any interests or rights of the beneficial owners of the Bonds. It shall be the duty of the Purchaser and the DTC Participants to make all arrangements with DTC to establish this book- entry system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of DTC. The Issuer does not represent, nor does it in any way covenant that the initial book-entry system established with DTC will be maintained in the future. The Issuer reserves the right and option at any time in the future, in its sole discretion, to terminate the DTC (CEDE & CO.) book-entry only registration requirement described above, and to permit the Bonds to be registered in the name of any owner. If the Issuer exercises its right and option to terminate such requirement, it shall give written notice of such termination to the Paying Agent/Registrar and to DTC, and thereafter the Paying Agent/Registrar shall, upon presentation and proper request, register any Bond in any name as provided for in this Ordinance. Notwithstanding the initial establishment of the foregoing book-entry system with DTC, if for any reason any of the originally delivered substitute Bonds is duly filed with the Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book-entry system will be maintained for such Bonds. Section 40. COMPLIANCE WITH RULE 15c2-12. (a) Annual Reports. (i) The Issuer shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year ending in or after 2003, financial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 36 of this Ordinance, being the information described in Exhibit A hereto, which Exhibit is attached to and incorporated in this Ordinance as if written word for word herein. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit Ahereto, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the Issuer shall provide unaudited financial statements by the required time and will provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and if the audit report on such statements become available. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 35 (ii) If the Issuer changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (b) Material Event Notices. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. Modifications to rights of holders of the Bonds; 8. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds; and 11. Rating changes. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the Issuer to provide financial information or operating data in accordance with subsection (a) of this Section by the time required by such subsection. (c) Limitations, Disclaimers, and Amendments. (i) The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give the notice required by Subsection (b) hereof of any Bond calls and defeasance that cause the Issuer to no longer be such an "obligated person". (ii) The provisions of this Section are for the sole benefit of the registered owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 3 6 pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER, ITS OFFICERS, AGENTS AND EMPLOYEES, BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, 1N CONTRACT OR TORT, FOR DAMAGES RESULTING 1N WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. (iv) No default by the Issuer in observing or performing its obligations under this Section shall comprise a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. (v) The provisions of this Section may be amended by the Issuer from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the registered owners of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the registered owners and beneficial owners of the Bonds. If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (a) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. The Issuer may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. (d) terms below: Definitions. As used in this Section, the following terms have the meanings ascribed to such "MSRB" means the Municipal Securities Rulemaldng Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 3 7 "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. Section 41. PROTECTION OF PLEDGE. Chapter 1208, Government Code, applies to the issuance of the Bonds and the pledge of the revenues granted by the Issuer under Section 9 of this Ordinance, and is therefore valid, effective, and perfected. If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the pledge of the revenues granted by the Issuer under Section 9 of this Ordinance is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in order to preserve to the registered owners of the Bonds the perfection of the security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Section 42. FURTHER PROCEDURES. The Mayor of the Issuer, the City Secretary of the Issuer, and ail other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform ail such acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordinance, the Bonds, the sale of the Bonds, and the Official Statement; and the Assistant City Manager/Finance of the City shall cause the expenses of issuance of the Bonds to be paid from the proceeds of sale of the Initial Bonds or from other lawfully available funds of the Issuer. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 43. OPEN MEETiNGS. The City Council has found and determined that the meeting at which this Ordinance is considered is open to the public and that notice thereof was given in accordance with the provisions of the Texas Open Meetings, Law, Tex. Gov't. Code, Chapter 551, as amended. Section 44. REPEALER. All indentures, ordinances or resolutions, or parts thereof, that are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. Section 45. EFFECTIVE DATE. This Ordinance shall become effective immediately upon its passage and approval. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 38 PASSED AND APPROVED this the 7th day of September, 2004. Euline Brock, Mayor ATTEST: Jennifer Walters, City Secretary APPROVED AS TO LEGAL FORM: Herbert L. Prouty, City Attorney By: BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 39 SCHEDULE I Utility System Revenue Bonds, Series 1992 Principal Principal Original Original Interest Amount Amount Dated Date Maturi _ty Rate Outstanding Refunded 3/1/1992 12/1/2005 6.50% $215,000 $215,000 The 2005 maturity will be redeemed prior to original maturity on December 1, 2004 at par. Utility System Revenue Bonds, Series 1993 Principal Principal Original Original Interest Amount Amount Dated Date Maturi _ty Rate Outstanding Refunded 3/1/1993 12/1/2012 5.00% $ 330,000 $ 330,000 12/1/2013 5.00% 330,000 330,000 The 2012-2013 maturities will be redeemed prior to original maturity on November 5, 2004 at par. Utility System Revenue Refunding Bonds, Series 1996-A Original Dated Date 5/1/1996 Principal Principal Original Interest Amount Amount Maturity Rate Outstanding Refunded 12/1/2012 5.85% $ 1,210,000 $ 1,210,000 12/1/2013 5.90% 1,280,000 1,280,000 12/1/2014 5.95% 1,360,000 1,360,000 12/1/2015 6.00% 1,445,000 1,445,000 12/1/2016 6.00% 1,535,000 1,535,000 12/1/2024(t) 6.00% 16,230,000 16,230,000 The 2012-2024 maturities will be redeemed prior to original maturity on December 1, 2006 at par. ~ The 2024 maturity is a term bond with scheduled annual mandatory sinking fund redemptions on December 1 of each year conm~encing December 1, 2017. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 EXHIBIT A DESCRIPTION OF ANNUAL FiNANCIAL INFORMATION The following information is referred to in Section 40 of this Ordinance: Annual Financial Statements and Operating Data The financial information and operating data with respect to the Issuer to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the tables of the Official Statement referred to) below: Tables numbered 1 through 11, inclusive, under the captions "The Electric System", "The Water System", "The Wastewater System", "Debt Requirements" and "Financial Information" in the Official Statement. Appendix B in the Official Statement. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in the paragraph above. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 EXHIBIT B NOTICE OF PRIOR REDEMPTION THE CITY OF DENTON, TEXAS NOTICE IS HEREBY GIVEN that the City of Denton, Texas has called for redemption the outstanding Bonds of the City described as follows: CITY OF DENTON (TEXAS) UTILITY SYSTEM REVENUE BONDS, SERIES 1992, dated March 1, 1992, scheduled to mature on December 1, 2005 in the principal amount of $215,000 (and being all of the outstanding bonds of said series scheduled to mature on December 1, 2005). Call date: December 1, 2004; redeemable at a redemption price of par plus accrued interest at the principal corporate offices of The Bank of New York Trust Company, only upon presentation by the registered owner. CITY OF DENTON (TEXAS) UTILITY SYSTEM REVENUE BONDS, SERIES 1993, dated March 1, 1993, scheduled to mature December 1, 2012 through December 1, 2013, aggregating $660,000 (and being all of the outstanding bonds of said series scheduled to mature on December 1, 2012 and December 1, 2013). Call date: November 5, 2004; redeemable at a redemption price of par plus accrued interest at the principal corporate offices of The Bank of New York Trust Company, only upon presentation by the registered owner. If moneys sufficient for the payment of such redemption price are held by or on behalf of the respective paying agent, the described Bonds shall become due and payable on the redemption date specified, and the interest thereon shall cease to accrue from and after the redemption date. In compliance with section 3406 of the Internal Revenue Code of 1986, payors making certain payments due on debt securities may be obligated to deduct and withhold 28 percent of such payment from the remittance to any payee who has failed to provide such payor with a valid taxpayer identification number. To avoid the imposition of the withholding of tax, such payees should submit a taxpayer identification number when surrendering the bonds for redemption. NOTICE IS FURTHER GIVEN that all Bonds described above should be submitted to the following address: The Bank of New York 111 Sanders Creek Park~vay East Syracuse, New York 13057 Attn: Helen Scanlon THE BANK OF NEW YORK TRUST COMPANY, NA. BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 NOTICE OF PRIOR REDEMPTION THE CITY OF DENTON, TEXAS NOTICE IS HEREBY GIVEN that the City of Denton, Texas has called for redemption the outstanding Bonds of the City described as follows: CITY OF DENTON (TEXAS) UTILITY SYSTEM REVENUE REFUNDING BONDS, SERIES 1996-A, dated May 1, 1996, scheduled to mature on December 1, 2012 through December 1, 2016 and on December 1, 2024, aggregating $23,060,000 (and being all of the outstanding bonds of said series scheduled to mature on and after December 1, 2012 to and including December 1, 2024). Call date: December 1, 2006; redeemable at a redemption price of par plus accrued interest at the principal corporate offices of JPMorgan Chase Bank, only upon presentation by the registered owner. If moneys sufficient for the payment of such redemption price are held by or on behalf of the respective paying agent, the described Bonds shall become due and payable on the redemption date specified, and the interest thereon shall cease to accrue from and after the redemption date. In compliance with section 3406 of the Internal Revenue Code of 1986, payors making certain payments due on debt securities may be obligated to deduct and withhold 28 percent of such payment from the remittance to any payee who has failed to provide such payor with a valid taxpayer identification number. To avoid the imposition of the withholding of tax, such payees should submit a taxpayer identification number when surrendering the bonds for redemption. NOTICE IS FURTHER GIVEN that all Bonds described above should be submitted to the following address: JPMorgan Chase Bank Atm: JPMORGAN CHASE BANK BRIZ: 0705.063\8-26-2004\8-26-2004-Rev-Ref-Ordinance August 26, 2004 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Tax Kathy DuBose SUBJECT Consider approval of a tax refund for the following property tax: Tax Name Reason Year Amount rl ~in ~up!i~l ~ 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 $585.75. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: CM/DCM/ACM: Airport and Transportation Operations Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an ordinance of the City of DeNon, Texas approving an Imerlocal Cooperation Agreement between the City of Denton and the Denton County Transportation Authority providing LINK Operations Funding Assistance for Fiscal Year 2004-2005; and providing an effective date. BACKGROUND In September 2003, voters approved a 1/2 cern increase in the City of DeMon's sales and use tax rate to provide funding for the recently created Denton County Transportation Authority (DCTA). The purpose of DCTA is to implemem a Service Plan that provides public transportation and transportation related services in those cities that have authorized the sales and use tax levy. Part of the DCTA Service Plan includes the operation of LINK's Fixed Route and Demand Response services. The Service Plan calls for DCTA to begin providing transportation services starting October 1, 2004. Earlier this year the City of Denton transferred LINK's Federal Transit Administration Designated Recipient status to DCTA. This transfer will provide DCTA with oversight in the application and administration of FTA funds for the LINK System. The transfer of LINK's Designated Recipient status was to facilitate DCTA's role as the funding agency in Denton County for public transportation services. At the July 22, 2004 DCTA Board of Directors Meeting, the DCTA Board considered and approved a resolution to fund LINK Operations and the Lewisville Dial-A-Ride service for the FY 2005 Budget. The approved $2,828,487 budget is inclusive of operating and maintenance cost of the LINK System as well as costs associated with the UNT and TWU transit partnerships. (Capital costs are not included). The proposed imerlocal cooperation agreemem (ICA) with DCTA will provide funding authority as stated in the DCTA July 2004 Resolution. The ICA also has provisions to assign the UNT and TWU service agreements to DCTA which will allow DCTA to manage and leverage the revenues generated more efficiently. The ICA between DCTA and the City of Denton calls for DCTA to contract the professional transportation services and infrastructure currently in place with LINK to provide service until DCTA can further establish the role as the public transportation provider for Denton County. Thus, the ICA is a one-year agreement with the anticipation that DCTA will purchase the entire LINK system and operate it independently beginning October 1, 2005 as outlined in the DCTA Service Plan. RECOMMENDATION: Staff recommends approval. PRIOR ACTION/REVIEW: The DCTA Staff and Legal Counsel have approved the agreement. The City Attorney and City Staff have reviewed and approved the agreement. DCTA is scheduled to approve the ICA at their September 23rd meeting. FISCAL INFORMATION: DCTA will be responsible for the financial requirements for LINK operations in FY05. The total LINK budget approved by DCTA Resolution is $2,828,487. EXHIBITS Ordinance Interlocal Agreement LINK Service Map LINK Budget Respectfully submitted: Mark Nelson Director of Airport and Transportation S:\Our Docum~nts\Ordinances\04\Interlocal-DCTA-2004-2005 Funding.floc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY TRANSPORTATION AUTHORITY PROVDING LINK OPERATIONS FUNDING FOR FISCAL YEAR 2004-2005; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton County Transportation Authority (the "Authority") at an election held on November 5, 2002 was duly confirmed as a transit authority pursuant to Chapter 460 of the Texas Transportation Code; and WHEREAS, a sales and use tax levy was authorized by and for the benefit of the Authority at an election held on September 13, 2003 within the municipal limits of the City of Denton; and WHEREAS, the City of Denton and the Authority desire to enter into an Interlocal Cooperation Agreement to provide for LINK transit funding to the City for Fiscal Year 2004- 2005 in substantially the same form as the Interlocal Cooperation Agreement attached to and made a part of this ordinance by reference (the "Interlocal Agreement"); and WHEREAS, the Intertocal Agreement serves valid pubhc purposes and is in the pubhc interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HERBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Mayor, or her designee, is hereby authorized to execute the Interlocal Agreement on behalf of the City o f Denton. SECTION 3. The City Manager, or his designee, is authorized to execute any other documents on behalf of the City necessary to implement the Interlocal Agreement on behalf of the City. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FOR~: BY: ~"~" Page 2 S:\Our Documenls\Ordinanees~04\Interlocal-DCTA-2004-2005 FundingAoc INTERLOCAL COOPERATION AGREEMENT THIS AGREEMENT is made and entered into by and between the CITY OF DENTON, TEXAS, a Texas Municipal Corporation (hereinafter the "CITY") and THE DENTON COUNTY TRANSPORTATION AUTHORITY, (hereinafter the "AUTHORITY"), each organized and existing under the laws of the State of Texas, and acting by, through and under the authority of their respective goveming bodies and officials in accordance with the "Interlocal Cooperation Act", Chapter 791 of the T~X~S GOVERNMENT CODE (the "Act"); and PREAMBLE WHEREAS, the CITY and the AUTHORITY are local governmental entities that each have the statutory authority to perform the services set forth in this Agreement, and who desire to enter into an interlocal cooperation agreement to maximize the benefits to the citizens of the CITY and the constituents of the AUTHORITY; and WHEREAS, the paying party will make all payments for services out of available current revenues available to the paying party and all payments made by it hereunder will fairly compensate performing party for the services provided herein; and WHEREAS, the AUTHORITY at an election held on November 5, 2002 was duly and legally conftrmed as a transportation authority pursuant to Chapter 460, Texas Transportation Code (the "Code"); and WHEREAS, the CITY is a mumcipality participating in the AUTHORITY and the residents of the City did cast a majority of votes in favor of the authorization of tax levy by the AUTHORITY on September 13, 2003; and WHEREAS, the AUTHORITY has pursuant to §460.103, TEX~S TRANSPORTATION CODE those powers necessary and convenient for the purpose of providing pubhc transportation and transportation-related services and the power to contract with a municipality for purposes consistent with and beneficial to the Service Plan of the AUTHORITY pursuant to §460.104 id.; and WHEREAS, the provision of public transportation by the City through the Denton Transit System ("LINK") is consistent with the AUTHORITY's Service Plan; and WHEREAS, it is the intent of the CITY and the AUTHORITY for the AUTHORITY to provide public transportation services that are the same or similar to the LINK during the fiscal year 2004-2005, ( October 1, 2004 through September 30, 2005); and WHEREAS, the Act authorizes the CITY and the AUTHORITY to enter into this Agreement for the purpose of achieving the governmental functions provided for herein by this collective, cooperative undertaking; and INTERLOCAL COOPERATION AGREEMENT - Page 1 S:~Our Documents\Contracts\04~ICA DCTA 2004-2005 (Final 9-2-04}:..D.,,QC WHEREAS, the AUTHORITY agrees to fund and the CITY agrees to provide public transportation services, as defined herein from October t, 2004 through September 30, 2005; NOW THEREFORE, the CITY and the AUTHORITY, for and in consideration of the premises and the mutual covenants set forth in this Agreement, and pursuant to the authority granted by the governing bodies of each of the parties hereto, do hereby agree as follows: ARTICLE 1 INCORPORATION OF PREAMBLES All matters and recitations stated in the Preamble to this Agreement are true and correct and are hereby incorporated by reference into the provisions of this Agreement as an expression of intent and as an aid to construction. ARTICLE 2 PURPOSES OF AGREEMENT The purpose of this Agreement is to authorize the Authority to appropriate funds to the CITY for the provision of public transportation services under the terms and conditions currently existing for operation of LINK, pursuant to an existing contract between the CITY and a transportation service provider, McDonald Transit, which is defined under Article 5 as the McDonald Transit Agreement. ARTICLE 3 TERM OF AGREEMENT The Agreement shall be effective as of the effective date set forth below and shall continue in full force and effect until an event of tcm~nination as provided in Article 4. ARTICLE 4 TERMINATION OF THE AGREEMENT This Agreement terminates upon the fa'st to occur of the following events: By mutual written agreement of the CITY and AUTHORITY; or 11:59 p.m. (Central Time), September 30, 2005. INTERLOCAL COOPERATION AGREEMENT - Page 2 S:\Our Doeuments\Contraela\lM[ICA DCTA 2004-2005 (Final 9-2-041.DOC ARTICLE 5 UNDERTAKING OF THE CITY 5.0 The CITY shall provide public bus service within the LINK service area ("LINK Service") pursuant to the contract between McDonald Transit and the CITY dated April, 2002, and as amended on June 15, 2004, which is incorporated herein by reference (the "McDonald Transit Agreement"). The LINK Service includes: 5.0.1 On campus bus service provided to the University of North Texas ("UNT") students and faculty pursuant to an agreement dated June 15, 2004 (the "UNT Campus Agreement") 5.0.2 Off campus LINK Service provided to UNT students and faculty pursuant to an agreement dated August 17, 2004 (the UNT Campus Agreement and UNT Off- Campus Agreement are collectively called the "UNT Agreements"). 5.0.3 Off campus LINK service provided to Texas Woman's University ("TWU") students and faculty pursuant to an agreement dated August 17, 2004 (the "TWU Agreement"). 5.04 The current level of service for the LINK Service includes the fixed routes set forth in the map and schedules attached hereto and made a part hereof as Exhibit "A", including the services provided for under the UNT Agreement, TWU Agreement, and the call and demand services provided for in the McDonald Transit Agreement (the "Current Level of Service"). 5.1 The CITY will be responsible for the provision and operation of the LINK Service, and for providing consultation and recommendations to the AUTHORITY's Board in all areas of public transportation concerning the LINK Service. The LINK Service will be subject to the reasonable supervision and review by the AUTHORITY. 5.2 The operational, management and supervisory services to be furnished by the CITY include the following: 5.2.1. Provide for the management and operation of the LINK Service. 5.2.2 Provide a full-time, qualified, and experienced executive who will serve as the general manager of the LINK Service. This is currently provided through the McDonald Transit Agreement. 5.2.3 Provide qualified transit operators, maintenance, and supervisory personnel; including recruitment, as necessary. 5.2.4 Provide monitoring and evaluation of all LINK operations, systems, and procedures. INTERLOCAL COOPERATION AGREEMENT - Page 3 S:~Our DocumentskContraets\04\ICA DCTA 2004-2005 (Final 9-2-04~.DOC 5.2.5 Maintain internal finance and budgeting procedures necessary to account for the cost of the LINK Service and approve as complete the monthly invoices sent by McDonald Transit Associates to the AUTHORITY for payment of management fees and operating expenses. 5.2.5.1 The invoice must include total management fees and LINK Service operating expenses, less farebox revenue retained by McDonald Transit Associates, to determine the amount payable by the AUTHORITY. The invoice must document the amount of fees and expenses that are FTA reimbursable expenses. The AUTHORITY will provide an invoice to the CITY for the FTA reimbursable amount on a monthly basis. The CITY has a duty to request reimbursement from the FTA each month and submitting that reimbursement to the AUTHORITY within three (3) days of receipt of funds fi:om the FTA or receipt of an invoice from the AUTHORITY, whichever is sooner. 5.2.6 Maintain internal grant administration procedures necessary to apply for, request reimbursement of, and provide monthly reports regarding Federal Transit Administration grant funds. 5.2.7 Provide for safety, loss prevention, and adequate insurance coverage during the contract period. The City will maintain any existing insurance coverage through purchased policies or risk pool participation. The AUTHORITY is to be added as an additional insured under such policies. 5.2.8 Provide and maintain bus schedules and routing. 5.2.9 Provide transit signage and shelter installation. 5.2.10 Provide customer relations and promotion. 5.2.11 Provide for accounting and purchasing services. 5.2.12 Collect and accurately report farebox revenue. 5.2.13 Maintain employee relations, including the selection and training of transit employees through the McDonald Transit Agreement. 5.2.14 Provide for the administration of service contracts. 5.2.15 Provide monthly operational information and statistics for AUTI-IORiTY Board meetings involving the LINK Service. 5.2.16 Through the McDonald Transit Agreement provide all maintenance including preventive maintenance on all LINK Service vehicles owned or INTERLOCAL COOPEILATION AGREEMENT - Page 4 S:\Our Documents\Contracta\04\lCA DCTA 2004-200;~_LF_inp_! 9-2-tM).DOC operated. Preventive maintenance includes tires, fluid changes, and other services recognized by the vehicle manufacturer as preventive. 5.2.17 Upon request, provide the AUTHORITY with specific transportation related studies or projections related to the LINK Service. 5.2.18 Provide necessary office space, office furniture, equipment, materials, fuels, supplies, rolling stock, bus maintenance and storage facilities, fueling station and fueling attendant, computer hardware and software, radios person to person communication devices (Nextel Phones), fare collection equipment, fleet maintenance equipment, and other necessary and appropriate equipment which may be required to provide the LINK Service. The current equipment, including buses being operated and maintained through the McDonald Transit Agreement should be adequate to provide the LINK Service. However, if additional equipment, including buses are required to provide the LINK Service, the CITY will notify the AUTHORITY of such need to purchase same, in which case the purchases shall be made in accord with applicable purchasing law and the AUTHORITY's purchasing policy and agreement. If a purchase is approved, the budget will be amended to reflect the purchase, unless it is a minor purchase. Any purchase of $5000.00 or less is a minor purchase and may be approved by the AUTHORITY's Executive Director, without prior Board approval. 5.3 Attached hereto and made a part hereof by reference as Exhibit "B" is the proposed budget for which the CITY agrees to provide the LINK Service beginning October 1, 2004 and ending September 30, 2005 (the "Budget"). The Budget was reviewed and approved by the AUTHORITY's Board on July 22, 2004. The Budget includes services to be provided under the UNT Agreements. The revenues received from UNT under the UNT Agreement reimburses the actual cost of such service. During the term of th/s Agreement should it appear that funding of the LINK Service should be increased to provide adequate service, the CITY will notify the AUTHORITY of the need for such increase and submit a request for additional funding. Should the AUTHORITY fall to approve the additional funding, the CITY shall have the right to decrease the level of service to meet the Budget. 5.4 The UNT Agreements and TWU Agreement are hereby assigned by the CITY to the AUTHORITY along with the right to receive the revenues therelkom. The AUTHORITY hereby contracts with the CITY to provide the services pursuant to the UNT Agreements and TWU Agreements. The CITY will provide such services through the McDonald Transit Agreement. 1NTERLOCAL COOPERATION AGREEMENT - Page 5 S:\Our Doeumellt~\Cont~aclJ\04\ICA DCTA 2004-2005 (Final 9-2-04'~,DOC ARTICLE 6 UNDERTAKING OF THE AUTHORITY 6.i The AUTHORITY's primary responsibility under this Agreement is to provide funding to the CITY for the LINK Service. In that regard, the AUTHORITY shall: 6.1.1 No later than two business days after receiving an approved monthly invoice for each month during the term of this Agreement, the AUTHORITY will pay to McDonald Transit directly the management fee for the current month and LINK Services operating expenses for the preceding month, as delineated in the McDonald Transit Agreement. 6.1.2 Provide funding for the purchase of necessary additional equipment and supplies as provided for in Section 5.2.17. 6.2 The AUTHORITY, after receiving a recommendation from the CITY, will be responsible for overall policy development, including service levels. However, the Current Level of Service will not be decreased without the consent of the City, unless a particular route or level of service incurs a material economic change due to decrease in ridership or other conditions that did not exist as of the Effective Date of this Agreement. In that case the AUTHORITY will confer with the CITY before decreasing the Current Level of Service. For service level increases or decreases of less than 10% of individual route or total system revenue riffles or hours, the Executive Director or his designee and the City Manager or his designee may approve such adjustments without Board and City Council approval. 6.3 All routes, stops, and expansions or reductions of service shall be planned and approved by the AUTHORITY, with consultation by the CITY. The AUTHORITY hereby initially approves the current routes, stops and services provided by the LINK Service. 6.4 After receiving input from the CITY, the AUTHORITY will establish the fare pohcy and structure of the LINK Service. The AUTHORITY hereby initially approves the current fare policy and structure of the LINK Service. 6.5 All LINK Service farebox revenues will be accounted for and audited by the CITY and credited to the AUTHORITY on the monthly invoice. The revenue will be applied by the CITY to operating expenses on the invoice, as specified in Section 5.2.5. Should there be a net operating deficit, after receiving a recommendation from the CITY, the Authority wilt consider the level of subsidies required to off-set such deficit. 6.6 The AUTHORITY will be the designated recipient for alt grant funds received by or eligible to be received for LINK Service. 6.7 Within 180 days after the Effective Date of this Agreement, the AUTHORITY and CITY will determine a reasonable method to reimburse the CITY for the amount of INTERLOCAL COOPERATION AGREEMENT - Page 6 S:\Our Dm:uments\ContractsX04\lCA DCTA 2004-2005 {Fi~tal 9-2-04}.tDOC depreciation of LINK buses, equipment, and other physical assets for the 2004-2005 fiscal year based on local share. Thereafter, this Agreement may be amended by the parties or another agreement entered into to provide for such reimbursement. ARTICLE 7 USE OF FUNDS AND MAINTENANCE OF RECORDS CITY agrees to maintain records that will provide accurate, current, and complete disclosure of the status of the funds received under this Agreement and with any other applicable Federal and State regulations establishing standards for financial management. CITY's record system shall contain sufficient documentation to provide full support and justification for all expenditures made by CITY at all reasonable times. In providing the LiNK Service the CITY shall comply with all applicable state and federal laws and regulations. ARTICLE 8 HOLD HARM_LESS Only to the extent allowed by the Constitution and statutes of the State of Texas, and without waiving any immunity or limitation as to habihty, the CITY agrees to and shall indemnify and hold harmless the AUTHORITY, its officials, officers, agents, employees, or attorneys fi:om and against any and all claims, losses, damages, causes of action, suits, and liabilities of every kind, including all expenses of litigation, court costs, and attorney's fees, for injury or death of any person, or for damages to any property; real, personal, or intellectual, arising out of or in connection with the operation of CITY's LINK Service, where the injury or death or damage is caused by the negligence of the CITY, its officials, officers, agents, employees, or attorneys. ARTICLE 9 GOOD FAITH NEGOTIATION AND DISPUTE RESOLUTION Whenever a dispute or disagreement arises under the terms of this Agreement, the parties agree to enter into good faith negotiations to resolve such disputes. If the matter continues to remain unresolved after good faith negotiations by the parties, then the matter shall be referred to outside mediation. This provision is mandatory, arises under the provisions of §791.015 of the Act, and shall be a condition precedent to the filing of any litigation by either or both parties hereto. INTERLOCAL COOPERATION AGREEMENT - Page 7 8:\Our Documents\Contracts\04\ICA DCTA 2004-:~005 (Final 9-2-04LDOC ARTICLE 10 AS SIGNABILITY/C ONSENT Except as otherwise provided herein, or except as may be hereafter determined by the parties, no party to this Agreement may sell, assign, or transfer its interest in this Agreement, or any of its right, duties, or obligations hereunder, without the prior written consent of the other party. However, whenever the consent or the approval of a party is required herein, such party shall not unreasonably withhold, delay, or deny such consent or approval. ARTICLE 11 NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall be by personal delivery or fax; or shall be sent by registered mail or certified mail; or shall be sent by U.S. Mail, return receipt requested, postage prepaid; to: CITY: AUTHORITY: Jon Fortune Assistant City Manager City of Denton, Texas 215 East McKinney Denton, Texas 76201 Fax No. 940.349.8596 John Hedrick Executive Dkector Denton County Transportation Authority Brookhollow North 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 Fax No.972.221.4601 Notice shall be deemed to have been received on the date of receipt as shown on the return receipt or other written evidence of receipt. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. INTER_LOCAL COOPERATION AGREEMENT - Page 8 S:\Our Documeuts\Conlrrac~\04\ICA DCTA 2004-2005 {Final 9-2-04).D.,O..,C ARTICLE t3 SAVINGS/SEVERABILITY In the event that any one or more of the provisions hereof contained .in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not effect the other provisions, and the Agreement shall be construed as if such invalid, .illegal, or unenforceable provision had never been contained in this Agreement. ARTICLE 14 GOVERNING LAW AND VENUE This Agreement shall be construed under and governed by, and in accordance with the laws of the State of Texas, and all obligations of the parties hereto, created by this Agreement are performable in Denton County, Texas. Venue of any suit or 'cause of action under this Agreement shall lie exclusively in Denton County, Texas.. ARTICLE 15 ENTIRE AGREEMENT This Agreement and any exhibits which may be attached hereto, constitutes the entire agreement among the parties hereto with respect to the funding of CITY's LINK Service, and supersedes any prior understandings or written or oral agreements between the parties with respect to that function. No amendment, modification, cancellation or alteration of the terms of tiffs Agreement shall be binding on any party hereto unless the same is in writing, dated subsequent to the date hereof, and is duly authorized and executed by the parties hereto. ARTICLE 16 WAIVER OF TERMS AND CONDITIONS The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. ARTICLE 17 AUTHORITY OF PARTIES This Agreement is made by and entered into by the duly authorized officials of each respective governmental entity. 1NTERLOCAL COOPERATION AGREEMENT - Page 9 S:\Our Documents\Contracts\O4\ICA DCTA 2004-2005 (Fina! 9-2-04).DOC ARTICLE 18 CAPTIONS The captions contained in this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. ARTICLE 19 COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and constitute one and the same instrument. 12xl WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed in two (2) original counterparts, by its duly-authorized and empowered Mayor; and the Denton County Transportation Authority has caused this Agreement to be executed by its duly-authorized and empowered officer to be effective as of the day of ,2004. CITY OF DENTON, TEXAS By: EULINE BROCK, MAYOR ATTEST: JENNIFER WATERS, CITY SECRETARY By: APPROVED AS.~ LEGAJ~ FORM: I-IERB E~~YBy: ATTORNEY DENTON COUNTY TRANSIT AUTHORITY By: CHARLES EMERY, CHAIRMAN DENTON COUNTY TRANSPORTATION AUTHORITY INTERLOCAL COOPERATION AGREEMENT - Page 10 S:\Our Doeuments\Contrac~s\04\lCA DCTA 2004-2005 {Final 9-2.04'bDOC ATTEST: JASON PIERCE, SECRETARY By: APPROVED AS TO LEGAL FORM: RIDER SCOTT, GENERAL COUNSEL By: McDonald Transit hereby consents to the terms of this Agreement including the assign_merit of rights pursuant to Article 5 and funding the LINK Services by the AUTHORITY under Section 6.1. The McDonald Transit Agreement is hereby amended to the extent of any conflict or inconsistency and this Agreement shall prevail. MCDONALD TRANSIT ASSOCIATES, INC. · By: ROBERT T. BABBITT PRESIDENT Date: Consent to assignment of UNT Agreements to the AUTHORITY: UNIVERSITY OF NORTH TEXAS By: Philip C. Diebel Vice President for Finance and Business Affairs Date: INTEtLLOCAL COOPERATION AGREEMENT - Page 11 S:\Our Documents\Contracts\04~lCA DCTA 2004-2005 (Final 9-2-045.DOC Consent to assignment of TWU Agreement to the AUTHORITY: TEXAS' WOMAN'S UNIVERSITY BY: Brenda Floyd Vice President for Finance & Administration Date: INTERLOCAL COOPERATION AGREEMENT - Page 12 S:\Our Documents\Contractsl04\ICA DCTA 2004-2005 (Final 9-2-04],DOC Exhibit A "linking people to places" :Route 1 stops =Route 2 stops =Route 3 stops =Route 4 stops =Route $ stops =Route 6 stops =Route 7 stops =Route 8 stops . =City Buildings --TWU Buildings =UNT Buildings --Parks & Green Space =Hospitals =Other points of interest MONDAY- FRIDAY Departure Arrival galbas Dr. Teasie¥ Ln.@ 6:38 6:34 6:36 6:46 6:53 7:00 7:30 7:34 7;38 7:45 7:53 B:O0 8:30 8:34 8;38 8:45 i5:53 9:00 9:30 9;34 9;35 9:45 9:53 10:00 10:3C~ ~0:34 ~0:38 10:45 10:53 11:00 11:30 11:34 1t;38 11:45 11:53 12;00 12:30 12:34 12;38 12:45 12:53 1;00 1:30 ~ :34 ~ :38 1 ;45 1:53 2:0(3 2:30 2;34 2:38 2:45 2:53 3:00 3:30 3:34 3:38 3:45 3:53 4:08 4:30 4:34 4:38 4;45 4:53 5:08 5:30 5:34 5:38 5:45 5:53 6:00 6:30 8:34 8:38 6:45 6:53 7;00 7:30 7:34 7:38 7:45 7:53 8:00 SATURDAY Departure i Arriva! 9:30 9:34 9:38 10;30 10:34 10:38 9145 9:53 10:00 10;45 10:53 11 1 I:30 11:34 11:38 1 I;45 11:53 12:00 12:30 12:34 12:38 12;45 ~2:53 1:00 1;30 1:34 1:38 1:45 1:53 2:00 2:30 2:34 2:38 2:45 2:53 3:00 3:30 3:34 3:38 3;45 3:53 4:00 4:30 4:34 4:36 4:45 4:53 5:00 5:30 5;34 5:38 5:45 5;53 6:00 MONDAY- FRIDAY Departure Arrival Lictk Rober~son Morse@ Golderl Regional @Service Link Central @Cook W¢odrow Triangle Ma]~ ~o~pit~l i Road C~ntr~i 6:80 8:34 6:38 6:40 6;46 6:53 7:00 7:30 7:34 7:38 7:48 7:46 7:53 8,00 ~:30 8~34 8:38 8:40 8:46 8:53 9:80 9:30 9:34 9:38 9;48 9:46 i 9:53 t0:00 10:30 10:34 10:38 10:40 10:46 t0:53 11;00 i1:30 11:34 11:38 11:48 11:46 11:53 12:00 12:38 12:34 12:38 12:40 12:46 12:53 1:00 1:30 1:34 1:38 1:40 1:46 1:53 2:00 2:30 2:34 2:38 2;40 2:46 2:53 3:00 3:30 3:34 3:38 3:40 3:48 3:53 4:00 4:30 4:34 4:38 4:40 4:48 4:53 5;00 5;30 5:34 5:38 5;40 5:46 5:53 6:80 6:30 6:34 6:38 6:40 6:46 [ 6:53 7:00 7:30 7:34 7:38 7:40 7;46i ,7:53 8:00 SATURDAY Departure Arrival 9:30 9:34 9:38 9:40 9:46 :: 9:53 ~0:00 1@;30 10:34 10:38 i0;40 10:46 ! 10:53 11:00 11:30 ~1:34 11:38 it;40 11:46 11:53 12;00 12;30 12:34 I2:38 1~;40 12:46 12:53 1:00 t :30 1:34 1:38 t :40 1:46 t :53 2:00 2:30 2:34 2:38 2:40 2:46 2:53 3;60 3:30 3:34 3:38 3:40 3;48 3:53 4:00 4:30 4:34 4:38 4;40 4:46 4:53 5:00 5:30 5;34 5:38 5:40 5;46 5:53 6:00 MONDAY- FRIDAY Departure Arrival MCKinn~y@ Unk Apple¢~k Morse@ Oardinal Li~k 6:00 6:10 6:11 6:i5 6:20 6:30 7:00 7:10 7:11 7:15 7:20 7:30 8:00 8:10 8:11 8:i5 8:20 8:30 9:00 9:10 9:1i 9:15 9:20 9:30 2:00 2:!0 2:11 2:~5 2:20 2:30 3:00 3:10 3:11 3:i5 3:20 3:30 4:00 4:!0 4:il 4:15 4:20 4:30 5:00 5:~0 5:1:! 5;15 5:20 5;30 6:00 6:10 6;1i 6:15 ~ 6:28 8;30 7:80 7:10 7:11 7:15 i 7:20 7:;30 SATURDAY Departure Arrival McKinney@ Link Applecreek Morse @ Cardir~al Mnk 9;00 9:04 9:11 9;15 9:20 9:30 10:00 10;04 10:11 10:15 10:20 10:30 1~;00 11:04 11:11 11:15 11:20 11:30 12;00 12:04 12:11 12:15 12:20 12:30 1:00 1;04 1:11 1:15 1;20 1:30 2:00 2;04 2:1~ 2:15 2:20 2:30 3:00 3:04 3:11 3:15 3;20 3:30 4;00 4:04 4:11 4:15 4:20 4:30 5:00 5:04 5:11 5:15 5;20 5:30 MONDAY- FRIDAY Departure Arrival : OJd Unk Wo~d @ Mu:~key @ Ruddell @ i Read @ P~i~ley @ Link Central McKinnoy Oak Tree University i Misb/~z~d Ruddeii Centr@ CL 1 2 3 ~ 4 5 CL 6:00 6:04 6:08 6;i2 ;; 6:t9 6:22 6:30 7:00 7:04 7:08 7:12 7:19 7:22 7,30 8;12 6;19 8:22 6:30 8:00 8:04 8:08 9:00 9:04 9:08 9:I2 9;19 9:22 9:30 10:00 10:04 10:08 10;i2 10:I9 10:22 t0:30 11:00 11:04 11:08 11:i2 11;19 11:22 11:30 12:00 12;04 i2:03 12:12 12:!9 12:22 12:30 1:O0 t:04 1:08 1:12 1:19 1:22 1:30 2:00 2;04 2;08 2:12 2:!9 2:22 2:38 3:00 3:04 3;08 3:12 3:19 3:22 3:38 4:00 4;04 4:08 4:12 4:19 4:22 4~30 5:00 5:04 5;08 5:12 5:19 5:22 5;30 6:00 6;04 6:08 6:12 6:t9 6:22 6:30 7:00 7:04 7:08 7;i2 7:19 7:22 7:80 SATURDAY Departure Arrival i Otd Nollh W~:~d @ Muikay @ Rudd@l @ i R~ad ~ Paisley ~ Link 9:00 9:04 9:08 9:12 9:19 9:22 9:30 10;00 10:04 10:08 I0:12 10:19 10:22 10.30 12:00 12:04 12:0B 12;12 12:19 12;22 12:30 2;00 2:04 2:08 2;12 2:19 2:22 2;30 3:00 3:04 :3:08 3:12 3;19 3:22 3:30 4:00 4:04 4:08 4;12 4:19 4:22 4;30 5:00 5;04 5:08 5:12 5:19 5:22 5:30 MONDAY -FRIDAY Departure Arrival 6:00 6:05 6:08 6:15 6;23 6:30 7:00 7:05 7:08 7:15 7;23 7:30 8:00 6;05 B;D8 8:15 8:23 8:30 9;00 9:05 9:08 9:!5 9:23 9:30 10:00 10:05 10:08 10:15 16:23 10:30 1~::00 11;05 11:08 11:15 ti:23 11:30 12:00 12:05 i2:08 12:15 ~ 12:23 12:30 1:00 1:05 1:06 1:15 1:23 1:30 2;00 2:05 2:08 2:!5 i 2:23 2:30 3:00 3;05 3:08 3:15 : 3:23 3:30 4:00 4:05 4:06 4:i5 4:23 4:30 5:00 5:05 5:08 5:15 5;23 5:30 6;00 6:05 6:08 6:~5 8:23 6;30 7:06 7;05 7:08 7:15 7:23 7::30 SATURDAY Departure Arrival 9:00 9:05 9:08 9:15 9:19 9:30 10:00 10;05 10:08 10:15 10:19 10;30 11:00 11:05 tt:08 11:15 11:19 11:30 12:00 12:05 12:08 12;15 12:19 12:30 1:00 1:05 1:08 1:15 1:~9 1:30 2:00 2;05 2:06 2:15 :~;~9 2:30 3:00 3:05 3:06 3:15 3:19 3:30 4:00 4;05 4:08 4:15 4;19 4:30 5:00 5:05 5;08 5:15 5:19 5;30 MONDAY- FRIDAY Arrival Departure ~ Central @ Third @ Alice SPAN ! @ K-Mad: @ Alice Central CL I 2 3 :. 4 5 CL 6:30 6:34 6;38 8:42 8:49 6:53 7;00 7:30 7:34 7;38 7:42 7:49 7:53 8:00 8:30 8:34 8:38 8;42 8:49 8:53 9;00 9:30 9:34 9:38 9:42 9:49 9:53 10:09 10:30 10;34 10:38 10:42 10;49 10:53 11:00 11:,30 1I;34 1~:38 11:42 11:49 11:53 12:00 12:30 12:34 12;38 ~2:42 12:49 12;53 1:00 1:30 1:34 1:38 1:42 1:49 1:53 2;00 2:30 2:34 2:38 2:42 2;49 2:53 3;00 3:30 3:34 3:38 2:42 3;49 3:53 4:00 4;30 4:34 4:38 4;49 4:49 4:53 5:00 5:30 5;34 5:38 5:42 5;49 5:53 6:00 6:30 6;34 6:38 6:42 6:49 6;53 7:00 7:30 7:34 7;38 7:49 7:53 7:42 SATURDAY Depa~uro Arrival CL 1 2 3 4 5 CL 9:30 9:34 9:38 9:42 10;30 10;~ 10:38 18:42 9:49 9:53 t0:00 10:49 10:53 11:00 11:30 11:34 11:38 tl;42 I1:,49 11:53 12;00 12;30 12:34 12:38 12;42 12:49 12:53 1;00 1:30 1:34 1:38 1:42 i;49 1:53 2:00 2;30 2:34 2:38 2:42 2:49 2:53 3:00 3:30 3:34 3:38 3:42 3:49 3:53 4:00 4:30 4;34 4:38 4::42 4:49 4:53 5:00 5:30 5:34 5;38 5:42 5:49 5:53 6:00 MONDAY- FRIDAY Departure Arrival Un~ Oak @ ©¢< @ Scripture @ Hickoq/@ Unk CL 1 2 6;30 6:34 6:38 ~ i 4 CL 6;43 6:49 7:00 7:30 7:34 7:38 7:43 7:49 8:80 8:30 8:34 8:38 8:~i 8:49 9:00 9:30 9;34 9:38 9:43 9:49 10:00 ? 10:30 t 0:34 16;88 i 0:43 10:49 11 11:30 ~!:34 ~1:38 11:43 i 11:49 i2:00 p:m, i 12:30 12:34 i2;38 12:43 12:49 1:00 ~:30 1:34 1:38 i;43 1:49 2:30 2:34 2:38 2:43 2:49 8:00 3:30 3:34 3:38 3;43 3:49 4:00 4:30 4::34 4:38 4:43 4:49 5:00 5:30 5:34 5:38 5:43 5:49 6:00 6:30 6:34 8:38 6:43 6:49 7;00 7:30 7:34 7:38 7:43 7:49 8:6,0 SATURDAY Departure Arrival 9:30 9:34 9;88 9,+43 9:49 10;00 ~0:39 10:34 10:38 i0:43 10:49 11:00 1 ~:30 11:34 t 1:38 1 I,+43 i 11:49 1 12:30 12:34 i2:38 12:43 :.~2;49 1;00 ~;30 1:34 1:38 t;43 i 1:49 2:00 2:39 2:34 2:38 2:43 i 2:49 3:00 8:30 3:34 3:38 3:43 3:49 4:00 4:30 4:34 4:38 4:43 4:49 5:D0 5:38 5:34 5:38 5:43 5:49 6:00 MONDAY- FRIDAY Departure Arriva~ UNT Av~ C @ Link Student Sack 'n Den~a ~ec ~ M~;Corm~ck Li~k 6;00 6:06 6:08 6:15 6:19 8:30 7:00 7:86 7;68 7:i5 7;23 7;80 8:0(} 8:06 8;08 8:15 8:23 8:30 9:00 9:06 9:08 9:I5 9:23 9;30 10;00 t0:08 10:08 10:~5 10;23 10;30 11:00 11:06 11;;08 11:15 11:23 11:30 ~2:00 12:06 12:08 i2:15 12~'23 12:30 '~:00 1:06 i:08 i:15 1:23 1:30 2:00 2:06 2:08 2:15 2:23 2:30 3:00 3:06 3:08 3:15 3:23 4:00 4:86 4:08 4:15 4:23 4:30 5:00 5:06 5;08 5:15 5:23 5;30 6:00 6:06 6:08 6~5 8:23 6::,30 7:00 7;06 7:08 7:15 7:23 7:38 SATURDAY Departure Ardval UNT AvcO@ Cen~rai Union Save Center @ Eagl~ Central 9;00 9:06 9;08 9:15 9:19 9:30 10:00 10:06 10:08 10:15 10:19 10:30 11:00 11;06 11;08 1t;~5 1!;19 11:30 i2;00 ~2:06 ~2:08 12;15 12;t9 12;30 !;00 ~:06 ~:08 1;15 1:19 1:30 2;00 2;06 2;08 2;t5 2:19 2:30 3:00 3:06 3:06 3:15 3:~9 3:30 4;00 4:06 4:08 4:15 4:19 4:30 5;00 5:06 6:88 5:15 5:19 5:30 MONDAY- FRIDAY Departure Arriva~ UNT Av~ C @ Link Student Sack 'n Den~a ~ec ~ M~;Corm~ck Li~k 6;00 6:06 6:08 6:15 6:19 8:30 7:00 7:86 7;68 7:i5 7;23 7;80 8:0(} 8:06 8;08 8:15 8:23 8:30 9:00 9:06 9:08 9:I5 9:23 9;30 10;00 t0:08 10:08 10:~5 10;23 10;30 11:00 11:06 11;;08 11:15 11:23 11:30 ~2:00 12:06 12:08 i2:15 12~'23 12:30 '~:00 1:06 i:08 i:15 1:23 1:30 2:00 2:06 2:08 2:15 2:23 2:30 3:00 3:06 3:08 3:15 3:23 4:00 4:86 4:08 4:15 4:23 4:30 5:00 5:06 5;08 5:15 5:23 5;30 6:00 6:06 6:08 6~5 8:23 6::,30 7:00 7;06 7:08 7:15 7:23 7:38 SATURDAY Departure Ardval UNT AvcO@ Cen~rai Union Save Center @ Eagl~ Central 9;00 9:06 9;08 9:15 9:19 9:30 10:00 10:06 10:08 10:15 10:19 10:30 11:00 11;06 11;08 1t;~5 1!;19 11:30 i2;00 ~2:06 ~2:08 12;15 12;t9 12;30 !;00 ~:06 ~:08 1;15 1:19 1:30 2;00 2;06 2;08 2;t5 2:19 2:30 3:00 3:06 3:06 3:15 3:~9 3:30 4;00 4:06 4:08 4:15 4:19 4:30 5;00 5:06 6:88 5:15 5:19 5:30 MONDAY- FRIDAY Departure Arrival Un~ Oak @ ©¢< @ Scripture @ Hickoq/@ Unk CL 1 2 6;30 6:34 6:38 ~ i 4 CL 6;43 6:49 7:00 7:30 7:34 7:38 7:43 7:49 8:80 8:30 8:34 8:38 8:~i 8:49 9:00 9:30 9;34 9:38 9:43 9:49 10:00 ? 10:30 t 0:34 16;88 i 0:43 10:49 11 11:30 ~!:34 ~1:38 11:43 i 11:49 i2:00 p:m, i 12:30 12:34 i2;38 12:43 12:49 1:00 ~:30 1:34 1:38 i;43 1:49 2:30 2:34 2:38 2:43 2:49 8:00 3:30 3:34 3:38 3;43 3:49 4:00 4:30 4::34 4:38 4:43 4:49 5:00 5:30 5:34 5:38 5:43 5:49 6:00 6:30 6:34 8:38 6:43 6:49 7;00 7:30 7:34 7:38 7:43 7:49 8:6,0 SATURDAY Departure Arrival 9:30 9:34 9;88 9,+43 9:49 10;00 ~0:39 10:34 10:38 i0:43 10:49 11:00 1 ~:30 11:34 t 1:38 1 I,+43 i 11:49 1 12:30 12:34 i2:38 12:43 :.~2;49 1;00 ~;30 1:34 1:38 t;43 i 1:49 2:00 2:39 2:34 2:38 2:43 i 2:49 3:00 8:30 3:34 3:38 3:43 3:49 4:00 4:30 4:34 4:38 4:43 4:49 5:D0 5:38 5:34 5:38 5:43 5:49 6:00 MONDAY- FRIDAY Departure Arriva~ UNT Av~ C @ Link Student Sack 'n Den~a ~ec ~ M~;Corm~ck Li~k 6;00 6:06 6:08 6:15 6:19 8:30 7:00 7:86 7;68 7:i5 7;23 7;80 8:0(} 8:06 8;08 8:15 8:23 8:30 9:00 9:06 9:08 9:I5 9:23 9;30 10;00 t0:08 10:08 10:~5 10;23 10;30 11:00 11:06 11;;08 11:15 11:23 11:30 ~2:00 12:06 12:08 i2:15 12~'23 12:30 '~:00 1:06 i:08 i:15 1:23 1:30 2:00 2:06 2:08 2:15 2:23 2:30 3:00 3:06 3:08 3:15 3:23 4:00 4:86 4:08 4:15 4:23 4:30 5:00 5:06 5;08 5:15 5:23 5;30 6:00 6:06 6:08 6~5 8:23 6::,30 7:00 7;06 7:08 7:15 7:23 7:38 SATURDAY Departure Ardval UNT AvcO@ Cen~rai Union Save Center @ Eagl~ Central 9;00 9:06 9;08 9:15 9:19 9:30 10:00 10:06 10:08 10:15 10:19 10:30 11:00 11;06 11;08 1t;~5 1!;19 11:30 i2;00 ~2:06 ~2:08 12;15 12;t9 12;30 !;00 ~:06 ~:08 1;15 1:19 1:30 2;00 2;06 2;08 2;t5 2:19 2:30 3:00 3:06 3:06 3:15 3:~9 3:30 4;00 4:06 4:08 4:15 4:19 4:30 5;00 5:06 6:88 5:15 5:19 5:30 Exhibit B The:: cities :~o~ ~on am a:. summary of-the :~ :fo~ ~e :and. a:~tOn:of ~se ~i~. * 8: locali tomes. - IiS;300h~m~ofloeaI.~iee o 200,;O~ip.assenget~ bo~ing~!fo~:ibeal ~v'iee - !:;000;.000 ~senger :boa~d'm~: fOr.l~ sera-ice - $75,875 :in :fambox. revenues: Pmpas~: FY05.i~eMi'~t iservi~: Bua~ Page .2 mclud~ co,as:to:hire:~nte~P~nn~l:and::~uip~.::.:..: '::'":::::: : LINK will Tide :~ ::same: level :of ~iee ::on :i~: fixed mute :~ :~~:::~A o f Dent~n' for ~:: ~ly :~ located: cos~ of.the :: The FY04 budget :for'Lewisville's service was' $393,144:: '~: l~op~::~05 buClger is isvme nn'uatea a. competitive, procureme~at ~ provide :tra~t :servi~s:":.'~ proposer and contract:eom ~11:: be::eons.idered::by ~e City C'OUn~t .in:.July~ :'::~e FY05 b~Ig~ assum~ ~fiea~iion.: of ~ eontr~t ~ ~. ~t~ ~ocau snare an~ :o~: sm.oleg for ~: ci~. re~iv~g ~{~ :for J~' ~"of AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: September 7, 2004 Airport and Transit Operations Jon Fortune, Assistam City Manager SUBJECT Consider adoption of an ordinance approving a Commercial Operator Airport Lease Agreemem between the City of Demon, Texas and Demon Airport Hangars, LLC.; and providing an effective date. BACKGROUND DeNon Airport Hangars, LLC wishes to lease a parcel of land totaling approximately 220,000 square feet at the Denton Airport. The terms of the lease will obligate Denton Airport Hangars, LLC to construct a hangar complex with approximately 70,000 square feet including corporate hangars, T-hangars and office amenities within 720 days. This facility will be constructed for the primary purpose of conducting commercial aviation activities. The proposed agreement will allow for use of the office facilities in the proposed Hangar 1 for non-aviation related business activity. The agreemem would obligate the Airport to complete the construction of a ground vehicular access road curremly in place for construction purposes. The proposed developmem will provide needed T-hangar space for small general aviation aircraft, create additional capacity for small aviation related business ventures and provide commercial hangar opportunities for corporate aircraft. OPTIONS I. Approve the lease as proposed. II. Provide staff direction with additional lease options. RECOMMENDATION The Airport Advisory Board unanimously recommends approval of the lease as presemed. Airport Staff recommends approval of the lease as presented. ESTIMATED SCHEDULE OF PROJECT The lease would become effective September 7, 2004 and continue through the 6~h day of September 2034 (30 years). The lease also provides for two successive option terms often years each. PRIOR ACTION/REVIEW The City Attorney's Office has reviewed the proposed lease. FISCAL INFORMATION The lease rate for the identified site is $0.17 per square foot per year. Lease payment will not commence until one of the following occurs, March 1, 2005 or the receipt of a Certificate of Occupancy for the first structure completed. The lease agreement provides for rate adjustments, Consumer Price Index adjustments, every other year for the term of the lease as per FAA requirement. EXHIBITS Ordinance Lease Agreement Attachment A Respectfully submitted: Mark Nelson Director of Airport and Transit Operations S:\Our Documents\Ordinances\04~Airport Hangars LLC Ordinance.doc ORDINANCE NO. AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DENTON AIRPORT HANGARS, LLC.; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute an airport lease agreement for commercial operator between the City of Denton and Denton Airport Hangars, L.L.C., in substantially the form of the Airport Lease Agreement which is attached to and made a part of this ordinance for'all purposes. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORI~. HERBERT L.~, CIT.~ORNEY BY: 'v' . AIRPORT LEASE AGREEMENT COMMERCIAL OPERATOR This Lease Agreement is made and executed to be effective this Seventh day of September, 2004 (the "Effective Date") at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and Denton Airport Hangars, LLC, hereinafter referred to as "Lessee". WlTNESSETH: WHEREAS, Lessor now owns, controls and operates the Denton Municipal Airport (the "Airport") in the City of Denton, County of Denton, State of Texas; and WHEREAS, Lessee desires to lease certain premises at the Airport and construct and maintain an aircraft hangar and related aviation facilities thereon; NOW, THEREFORE, for and in consideration of the promises and the mutual covenants contained in this Agreement, the parties agree as follows: I. CONIDITIONg OF IF, AgE AGRF, F.M-F. NT NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION SHALL BE BINDING. A. PRINC1PI.E~q OF OPERATIONS. The right to conduct aeronautical and related activities for furnishing services to the public is granted to Lessee subject to Lessee agreeing: 1. To furnish said services on a fair, equal and not urxjustly discriminatory basis to all users thereof; and To charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. B. NION-DTRCR1M1NATtONI: Lessee, for itself, its personal representatives, successors, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant nmning with the land that: 1. No person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, rehgion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; Lessee shall use the premises in compliance with ali other requirements imposed by or pursuant to Title 49, Code of Federal 'Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimi- nation in Federally assisted programs of the Department of Transportation - Effectual of Title VI of the Civil Rights Act of 1964, as said Regulations may be amended. C. RTGI--IT OF IND1V1DIIAI.~q TO MATNT'FAINT AIRCRAFT. It is clearly understood by Lessee that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. D. NON-CXCIJTSIVE RIGHT. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Title 49 U.S.C. Appendix § 1349. E. PlIBTJC AREAS. Lessor reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance. Lessor shall be obligated to maintain and keep in good repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the Airport which, in the opinion of Lessor, would limit the usefulness or safety of the Airport or constitute a hazard to aircraft or to aircraft navigation. 5. This Lease Agreement shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States or agency thereof, 3 - AGR DAHP.Doc- Page 2 relative to the operation or maintenance of the Airport. Il. T,I~.A~q~T3 pRI~MI,qF,,q Lessor, for and in consideration of the covenants and agreements herein contained, to be kept by Lessee, does hereby demise and lease unto Lessee, and Lessee does hereby lease from Lessor, for the lease term described in Article llI, the following described land situated in Denton County, Texas: A. Lancl. A tract of land, being approximately 220,000 square feet, or 5.05 acres, drawn and outlined on Attachment "A", and legally described in Attachment "B," such attachments being incorporated herein by reference (the "Leased Premises"). Together with the right of ingress and egress to the Leased Premises; and the right in common with others so authorized of passage upon the Airport property generally, subject to reasonable regulations by the City of Denton and such rights shall extend to Lessee's employees, passengers, patrons and invitees. For purposes of this agreement, the term "Leased Premises" shall mean all property located within the metes and bounds described and identified within Attachment "B", including leasehold improvements constructed by the Lessee, but not including certain easements or property owned and/or controlled by the Lessor. A legal description of the leased premises is not currently attached as Attachment "B". Lessee shall deliver to Lessor no later than 30 days after the date of this Agreement a legal' description of the leased premises accurately describing the leased premises that is acceptable to Lessor. If Lessee fails to do so, Lessor at its option may terminate this Agreement, in which case it will have no further force and effect. The approved legal description will be attached to this Agreement as Attachment "B". B. IMPROVF. MF. NTg PROVIDED BY T,F..qROR: The only improvements provided by Lessor, except as set forth in Article II.E. "Access to Utilities" below, shall be as follows: On or before completion of the final foundation/airport apron for the hangar complex, Lessor shall improve the gravel access road immediately south of the Leased Premises with an asphalt and/or concrete wear surface. The access road is depicted on Attachment "A". For the purpose of this Lease Agreement, the term "Lessor improvements" shall mean those things on or adjacent to the Leased Premises belonging to, constructed by, or to be constructed by the Lessor, which enhance or increase, the value or quality of the Leased Premises. Unless otherwise noted herein, all Lessor improvements are and will remain the property of Lessor. All Lessor improvements must be described in detail above, or above referenced and attached to this Agreement in an exhibit approved by Lessor. · C.. [MPROV~,MF. NTR PROVIDED FlY T.g,,qgg, g,. On the Leased Premises, Lessee shall construct a series of hangar/office facilities totaling not less than 70,000 square feet. Proposed buildings nos. 1 and 2 as depicted in Attachment "A" shall each be no less than 3 - AGR DAHP.Doc- Page 3 10,000 square feet with the remaining buildings being no less than 8,000 square feet. Lessee shall also construct taxiway access and appropriate culverts or drainage as required by City ordinances in the utility right of way south and north of the proposed hangar as well as other improvements as determined necessary by City ordinances (all such hangar/office facilities and other improvements constructed by Lessee are called the "Lessee's Improvements"). The Lessee's Improvements shall be commenced no later than 270 days and completed no later than 720 days after the Effective Date of this Lease Agreement as evidenced by the issuance of a certificate of occupancy (the "Constmction Period"). Commencement of construction shall be when a building permit is issued for Lessee's Improvements and actual construction work has been done. Notwithstanding anything contained in this Lease Agreement to the contrary, a failure to complete the Lessee's Improvements within the Construction Period may, at the sole option and discretion of the Lessor, result in the immediate termination and cancellation of this Lease Agreement upon 30 days written notice of cancellation to Lessee. In such case Lessee's rights under the Lease Agreement will immediately cease and be forfeited, and all of Lessee's Improvements shall immediately become the property of Lessor at no cost, expense or other compensation paid by Lessor to Lessee; and Lessee shall immediately vacate the Leased Premises. D. EASgM-VNT.q. Lessor and Lessee by mutual agreement may establish, on the Leased Premises, easements for public access on roads and taxiways. E. ACCE,qR TO 17]'II.ITIES. Lessor represents that there are water, sewer and 3- phase electricity lines within close proxinfity to the Leased Premises available to "tap-in" by Lessee, and that the same are sufficient for usual and customary service on the Leased Premises. The term of this Lease Agreement shall be for a period of thirty (30) years, com- mencing on the 7th day of September, 2004 and continuing through the sixth day of September of 2034, unless earlier terminated under the provisions of the Lease Agreement (the "Lease Term"). Any attempt by Lessee to renegotiate this Lease Agreement shall be in writing addressed to the City Manager or his designee at least one hundred eighty (180) days before the expiration of the Lease Term, and at least 180 days before the expiration of any additional renegotiated period. Lessee has the option to renew for two (2) additional ten (10) year terms. The rental and terms to be negotiated shall be reasonable and consistent with the then value, rentals and terms of similar property on the Airport. 3 - AGR DAHP.Doc- Page 4 IV. PAYMENTS; RENTALS AND FEES Lessee covenants and agrees to pay Lessor, as consideration for this Lease Agreement, the following payments, rentals and fees: A. LAND RF. NTAI. shall be due and payable in the sum of $0.17 per square foot or approximately $37,400.00 per year (the "Original Rent"), payable in twelve (12) equal monthly installments in the sum of Three Thousand One Hundred Sixteen Dollars and sixty seven cents ($3,116.67) in advance, on or before the 1st day of each and every month during the term of this Lease Agreement. Lessee has the option to pay annual rentals and fees in whole on or before the 1st day of October, at the beginning of the City's fiscal year, each and every year of this Lease Agreement. 1. The annual lease rental will be reduced by the current lease rate per square foot, as adjusted by a survey performed prior to issuance of building permits, or as adjusted by the CPI-U referenced in Section IV.C., times the number of square feet comprising all easements established in accordance with Article II (D). 2. So long as Lessee is not in default under this Lease Agreement rental payments will be abated until the issuance of the Certificate of Occupancy of the. first of the Hangar/Office Space facilities or March 1, 2005, which ever occurs first (the "Rental Abatement Period"). Should Lessee fail to commence or complete construction of Lessee's Improvements as provided in Section II.C then rental for the Rental Abatement Period will become immediately due and payable to Lessor. Notwithstanding the foregoing, the annual lease rental will be adjusted by the current lease rate per square foot, as adjusted by the CPI-U referenced in Section IV.C., times the number of square feet comprising all easements established in accordance with Article II (D). B. I,F.S~qOR IMPROVEMENTS RENTAl.S. NONE: improvements on the Leased Premises. There are no Lessor C. PAYMENT: PENALTY: ADII ISTMENTS. All payments due Lessor fi:om Lessee shall be made to Lessor at the offices of the Finance Department of the City of Denton, Customer Service Division, 601 West Hickory, Denton, Texas, unless otherwise designated in writing by the Lessor. If payments are not received on or before the 15th day of the month, a five percent (5%) penalty will be due as of the 16th. If payments are not received by the first of the subsequent month, an additional penalty of one percent (1%) of the unpaid rental/fee amount will be due. A one percent (1%) charge will be added on the first of each subsequent month until the unpaid rental/fee payment is made. The Original Rent for the Leased Premises shall be readjusted at the end of each one year period during the Lease Term on the basis of the proportion that the then current United States Consumer Price Index for all urban consumers (CPI-U) for the Dallas-Fog Worth Bureau of Labor Statistics bears to the previous odd month 2004 index, which was ~ (1982-84 = 100). Each rental adjustment, if any, shall occur on the 7th day of September, beginning 2006, and 3 - AGR DAHP.Doc- Page 5 every other year thereafter on such date. The adjustments in the yearly rent shall be determined by multiplying the Original Rent by a fraction, the numerator of which is the index number for the last month prior to the adjustment, and the denominator of which is the index number applicable at the execution of this Lease Agreement. If the product of this multiplication is greater than the Original Rent, Lessee shall pay this greater amount as the yearly rent until the time of the next rental adjustment as called for in this section. If the product of this multiplication is less than the Original Rent there shall be no adjustment in the annual rent at that time, and Lessee shall pay the previous year's annual rent until the time of the next rental adjustment as called for in this section. In no event shall any rental adjustment called for in this section result in an annual rent less than the previous year's annual rent. The adjustment shall be limited so that the annual rental payment determined for any given two-year period shall not exceed the annual rental payment calculated for the previous CPI adjustment by more than twenty percent (20%) percent. If the consumer price index for all urban consumers (CPI-U) for the Dallas-Fort Worth geographical region, as compiled by the U.S. Department of Labor, Bureau of Labor Statistics, is discontinued during the Lease Term, the remaining rental adjustments called for in this section shall be made using the formula set forth above, but by substituting the index numbers for the Consumer Price Index-Seasonally Adjusted U.S. City Average For All Items For All Urban Consumers (CPI-U) for the index numbers for the CPI-U applicable to the Dallas-Fort Worth geographical region. If both the CPI-U for the Dallas- Fort Worth geographical region and the U.S. City Average are discontinued during the Lease Term, the remaining rental adjustments called for in this section shall be made using · the statistics of the Bureau of Labor Statistics of the United States Department of Labor that are most nearly comparable to the CPI-U apphcable to the Dallas-Fort Worth geographical region. If the Bureau of Labor Statistics of the United States Department of Labor ceases to exist or ceases to publish statistics concerning the pm'chasing power of the consumer dollar during the Lease Term, the remaining rental adjustments called for in this section shall be made using the most nearly comparable statistics published by a recognized financial authority selected by Lessor. V, RIGHT.q AND C)RI ,TGATIONIg OF I .FRRF, F, A. 11RF, OF I,F,A~qED PRF~M[qES, Lessee is granted the non-exclusive privilege to engage in or provide the following: Fli£ht ln,qtmction. Less is granted the non-exclusive right to operate a flight instruction operation. 2. Pilot Shop~ Lessee is granted the non-exclusive right to operate a pilot supply retail operation. 3. }-longer Space Leasing_ Lessee is granted the non-exclusive right to rent hangar space. 3 - AGR DAHP.Doc- Page 6 Office Space 1 ~.~.qing_ Lessee is granted the non-exclusive fight to rent office space for aviation related activities or other commercial activities with written approval of airport management. Non-aviation related activities will be limited to Building #1 and will be limited to commercial operations using office area only. Hangar/Aviation operations area shall not be impacted. 5. T/a-Down Services. Lessee is granted the non-exclusive right to charge for fie- down services on Lessee's property. 6. Aircraft Maintenn~ce ,qervices_ Lessee is granted the non-exclusive right to perform aircraft maintenance services on Lessee's property. 7. .Aircraft Charter Sewice.q. Lessee is granted the non-exclusive right to operate aircraft charter services on Lessee's property. Aircraft painting gervice~q. Lessee is granted the non-exclusive fight to perform aircraft painting services on Lessee's property. Aircraft ,qale~q and Teasing. Lessee is granted the non-exclusive right, to perform aircraft sales, leasing, management, and rental services on Lessee's property. 10. Additional ,qervice.q. Lessee is granted the non-exclusive right to perform additional aircraft related services on Lessee's property with written approval by airport management. Such approval will not be reasonably withheld. 11. Aircraft Fueling ~qervices_ Lessee is granted the non-exclusive fight to perform aircraft fuel and oil storage and sales on Lessee's property. 12. Additional Services. Lessee is granted the non-exclusive right to perform aircraft restoration services on Lessee's property. Lessee, its tenants, employees, invitees and guests shall not be authorized to conduct any services not specifically listed in this Lease Agreement. The use of the Leased Premises by Lessee, its tenants, employees, invitees or guests shall be limited to only those private, commercial, retail or industrial activities having to do with or related to airports and avia- tion. No person, business or corporation may operate a commercial, retail or industrial business upon the Leased Premises or upon the Airport without a lease or license fi.om Lessor authorizing such commercial, retail or industrial activity. The Lessor shall not unreasonably withhold authorization to conduct aeronautical or related services. B. ~qTANDARD~q. Lessee shall meet or exceed the following standards: 1. Address_ Lessee shall file with the Airport Manager and keep cun'ent its mailing addresses, telephone numbers and contacts where it can be reached in 3 - AGR DAHP.Doc- Page 7 an emergency. 2. List_ Lessee shall file with the Airport Manager and keep current a list of its tenants and sublessees. 3..Condnat Lessee shall contractually require its employees and sublessees (and sublessee's invitees) to abide by the terms of this Lease Agreement. Lessee shall promptly enforce its contractual rights in the event of a default of such covenants. 4. Ilfilitie.q: Taxe.q and Fe.~.~. Lessee shall meet all expenses and payments in connection with the use of the Leased Premises and the rights and privileges herein granted, including the timely payment of utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed. 5. f.aw.q- Lessee shall comply with all current and furore federal, state and local laws, roles and regulations which may apply to the conduct of business contemplated, including rules, regulations and ordinances promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits. 6. Mnintenanae of property. Lessee shall be responsible for the maintenance, repair and upkeep of all property, buildings, structures and improvements, including the mowing or elimination of grass and other vegetation on the Leased Premises, and shall keep the Leased Premises neat, clean and in respectable condition, free from any objectional matter or thing, including trash or debris. Lessee agrees not to utilize or permit others to utilize areas on the Leased Premises which are located on the outside of any hangar or building for the storage of wrecked or permanently disabled aircraft, aircraft parts, automobiles, vehicles of any type, or any other equipment or items which would distract from the appearance of the leased premises. Lessee agrees that at no time shall the Leased Premises be used for a flea market type sales operation. Painting of ghfilding.q. During the Lease Term of this Lease Agreement and during each extension, Lessor shall have the right to require, not more than once every five years, that the metal exterior of hangar(s) or building(s) locat~ on the Leased Premises be repainted. The Lessor may require Lessee to repaint said exteriors according to Lessor's specifications (to specify color of paint, quality of workmanship and the year and month in which the hangar(s) or building(s) are to be painted, if needed.) Lessee shall complete the painting in accordance with such specifications within one (1) year of receipt of notice from Lessor. Lessee agrees to pay all costs and expense involved in the hangar or building painting process. Failure of Lessee to complete the painting required by Lessor, within the one (1) year period shall constitute Lessee's default under this Lease Agreement. 3 - AGE DAHP.Doc- Page 8 8. Unauthorized use aC 1 .ea~eA Prami.qe~. Lessee may not use any of the Leased Premises for any use not authorized herein unless Lessor gives Lessee prior written approval of such additional use. Without limiting the foregoing the Leased Premises shall not be used for the operation of a motel, hotel, restaurant, private club or bar, apartment house, storage of recreational vehicles, automobiles, or marine vehicles, or for industrial, commercial, retail, or other purposes, except as authorized herein. Dwelling,q. It is expressly understood and agreed that no dwelling or domicile may be built, moved to or established on or within the Leased Premises nor may lessee, its tenants, employees, invitees, or guests be permitted to reside or remain as a resident on or within the Leased Premises or other Airport premises. 10. Quit posae.qsion, Lessee shall quit possession of the Leased Premises at the end of the Lease Term or any renewal or extension thereof, or upon cancellation or termination of the Lease Agreement, and deliver up the Lease Premises to Lessor in as good condition as existed when possession was taken by Lessee, reasonable wear and tear excepted. 11. Indemnity_ Lessee must indemnify, hold harmless and defend the Lessor, its officers, agents and employees, from and against liability for any and all claims, liens, suits, demands and/or actions for damages, injuries to persons (including death), property damage, (including loss of use), and expenses, including court costs, attorneys' fees and other reasonable costs, occasioned by or incidental to the Lessee's occupancy or use of the Leased Premises or the Airport and/or activities conducted in connection with or incidental to this Lease Agreement, including all such causes of action based on common, constitutional or statutory law, or based in whole or in part upon the negligent or intentional acts or omissions of Lessee, its officers, agents employees, invitees or other persons. Lessee must at ail times exercise reasonable precautions on behalf of, and be solely responsible for, the safety of its officers, employees, agents, customers, visitors, invitees, licensees and other persons, as well as their property, while in, on, or involved in any way with the use of the Leased Premises. The Lessor is not liable or responsible for the negligence or intentional acts or omissions of the Lessee, its officers, agents, employees, agents, customers, visitors and other persons. The Lessor shall assume no responsibility or liability for harm, injury, or any damaging events which are directly or indirectly attributable to premise defects, whether real or alleged, which may now exist or which may hereafter arise upon the Leased Premises, responsibility for all such defects being expressly assumed by the Lessee. The Lessee agrees that this indemnity provision applies to all claims, suits, demands, and actions arising fi.om all premise defects or conditions. TI-tF~ I,F. SSOR AND THE I,ESSEFJ EXPRF, SSI,Y INTEND THIS 3 - AGR DAHP.Doc- ~age 9 ]N-DEM'NTITYPROVISION TO REQIITRE I.ESSEE TO TNDF. MNHRY ..),ND PROTECT THE I,ESSOR FROM THE CONSEQIIENCES OF TI-IE T.ESSOR'S OWN NEGT,TCtENCE WHILE LESSOR IS PARTICIPATING IN TlqlS LEASE AGREEMENT WlqTRE TI-TAT N-F. GIJCtENCF. lSA CONCIIRRING CAIISE OF TI-IT. INI_IIIRY: DEATH: OR DAMAGE. NOTWITT-IS T AND1NCt TI--~, TERMS OF TI-tE PRECEDING SENTENCES: TI-lIS INDEMNITY PROVISION DOES NOT APPI.Y TO ANW CI.A1M; iDS,q; DAMAGE, CAITSE OF ACTION; SII1T AND TJABTLITY WI4ERE TFTE IN.FfIRY; DEATI--T.~ OR DAMAGE RESIII.TS FROM TFtE SOT,F. NF. GI,TGENCE OF THE LESSOR OR ANY OF ITS EMPLOYEE,q; CONTR ACTORS; OR AGENTS; TINMI~ED WITT-I THE FAULT.OF ANY OTtqT. R PERSON OR ENTITY. 12. ~. Lessee agrees to properly store, collect and dispose of all chemicals and-chemical residues; to properly store, confine, collect and dispose of all paint, including paint spray in the atmosphere, and paint products; and to comply with all Local, State and Federal regulations governing the storage, handling or disposal of such chemicals and paints. Further, the Lessee shall be solely responsible for all discharges, whether accidental or intentional, of any chemical and for the costs associated with the cleanup, remediation and disposal of said chemicals. 13. Hazardou.q Activities. Should Lessee violate any law, rule, restriction or regulation of the City of DentOn or the Federal Aviation Administration, or any other regulatory authority, or should the Lessee engage in or permit other persons or agents to engage in activities which could produce hazards or obstruction to air navigation, obstructions to visibility or interference with any aircraft navigational aid station or device, whether airborne or on the ground, then Lessor shall state such violation in writing and deliver written notice to Lessee or Lessee's agent on the Leased Premises, or to the person(s) on the Leased Premises who are causing said violation(s), and upon delivery of such written notice, Lessor shall have the right to demand that the person(s) responsible for the violation(s) cease and desist from all such activity creating the violation(s). In such event, Lessor shall have the right to demand that corrective action, as required, be commenced immediately to restore the Leased Premises into conformance with the particular law, rule or aeronautical regulation being violated. Should Lessee, Lessee's agent, or the person(s) responsible for the violation(s) fail to cease and desist from said violation(s) and to immediately commence correcting the violation(s), and to complete said corrections within twenty-four (24) hours following written notification, then Lessor shall have the right to enter onto the Leased Premises and correct the violation(s) at the sole cost and expense of Lessee, and Lessor shall not be responsible for any damages incurred to any improvements on the Leased Premises as a result of the corrective action process. In addition, such violation shall be considered a material default by Lessee authorizing Lessor, at its sole option and discretion, to immediately terminate and cancel this 3 - AGR DAHP,Doc- Page 10 Lease Agreement. C. SIGNS. No signs, posters, or other similar devices ("Signage") shall be placed on the exterior of the Lease Improvements or on any portion of the Leased Premises or Airport property without the prior written approval of Lessor. Lessee, at its sole expense, shall be responsible for the creation, installation and maintenance of all such Signage. Lessee shall pay to Lessor any and all damages, injuries, or repairs resulting fi:om the installation, maintenance or repair of any such Signage. Any Signage placed on the Leased Premises shall be maintained at all times in a safe, neat, sightly and good physical condition. All Signage shall be removed fi:om the Leased Premises by Lessee immediately upon receipt of instructions for removal of same fi:om Lessor, including without limitation, upon expiration or termination of this Lease Agreement. If Lessee fails to remove the Signage then Lessor may do so at the sole cost and expense of Lessee. D. ENTRY. Lessor and its designees shall have the right to enter the Leased Premises upon reasonable advance notice (written or oral) and at any reasonable times for the purposes of inspecting the Leased Premises, performing any work which Lessor elects to perform under this Lease Agreement, and exhibiting the Leased Premises for sale, lease, or mortgage. Nothing in this section shall imply any duty upon Lessor to do any work, which under any other provision of this Lease Agreement Lessee is required to perform, and any performance by Lessor shall not constitute a waiver of Lessee's default. VI. COVF, NANITS lqY l ,F,R~CIR Lessor hereby agrees as follows: A. PEACF. F111, F,N_IOYMI~,NT_ Upon on payment of all rent, fees, and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the Leased Premises and all rights and privileges herein granted; B. COMPlJANICF.. Lessor warrants and represents that in the establishment, construction and operation of the Airport, that Lessor has heretofore and at this time is complying with all existing roles, regulations, and criteria distributed by the Federal Aviation Administration, or any other governmental authority relating to and including, but not limited to, noise abatement, ak rights and easements over adjoining and contiguous areas, over-flight in landing or takeoff, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations of adjoining property in the course of normal take-off and landing procedures from the Airport; Lessor further warrants and represents that at all times during the Lease Term, or any renewal or extension of same, that it will continue to comply with the foregoing. Vll. SPF. CIAI, CONDITIONS It is expressly understood and agreed by and between Lessor and Lessee that this Lease Agreement is subject to the following special terms and conditions. 3 - AGR DAHP,Doc- Page tl RIINWAYS AND TAXIWAYR. Because of the present thirty thousand (30,000) pound continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee herein agrees to limit all aeronautical activity including landing, take-off and taxiing, to aircraft having an actual weight, including the weight of its fuel, of thirty thousand (30,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of such excessive weights. It is further agreed that, based on qualified engineering studies, the weight restrictions and provisions of this clause may be adjusted, up or down, and that Lessee agrees to abide by any such changes or revisions as such studies may dictate. "Aeronautical activity" referred to in this clause shall include any activity of the Lessee or its agents or subcontractors, and its customers and invitees, but shall not include those activities over which it has no solicitory part or control, such as an unsolicited or unscheduled or emergency landing. A pattern of violating the provisions of this section on two or more occasions shall be sufficient to cause the immediate termination of this entire Lease Agreement and subject Lessee to 1/ability for any damages to the Airport that might result. VIII. I,F.A~qF.I-IOT,D IMPROVF. ME~NTS A. REQIIIRF~MENT~ Before commencing the construction of any improvements on the Leased Premises including Lessee's Improvements (the "Lease Improvements'), Lessee shall submit: Documentation, specifications, or design work, to be approved by the Lessor, which shall establish that the improvements to be built or constructed upon the Leased Premises are in conformance with the overall size, shape, color, quality and design, in appearance and structure of the program established by Lessor on the Airport. 2. All plans and specifications showing the location upon the Leased Premises of the proposed construction and improvements; 3. The estimated cost of such construction. No construction may commence until Lessor has approved the plans and specifications and the location of the Lease Improvements, and the estimated costs of such construction. Approval by the Lessor shall not be unreasonably withheld. Documentary evidence of the actual cost of construction on public areas only (such as taxiways) shall be delivered by Lessee to Lessor's City Manager from time to time as such costs are paid by Lessee, and Lessor's City Manager or designee is hereby authorized to endorse upon a copy of this Lease Agreement filed with the City Secretary of Lessor such actual amounts as he shall have found to have been paid by Lessee, and the findings of the City Manager when endorsed by him upon said contract shall be conclusive upon all parties for all purposes of this Lease Agreement. No later than 30 days after completion of the Lease Improvements, Lessee shall 3 - AGR DAHP.Doc- Page 12 submit to Lessor detailed as built plans of the Lease Improvements and documentary evidence acceptable to Lessor evidencing the total cost to construct the Lease Improvements ("Cost to Construct Lease hrtprovements"). B. ADDITIONAL CONSTRTICTTON OR IMPROVF, MFNTS: Lessee is hereby authorized to construct upon the Leased Premises, at its own cost and expense, buildings, hangars, and structures, that Lessor and Lessee mutually agree are necessary for use in connection with the operations authorized by this Lease Agreement, provided however, Lessee shall comply with all of the requirements of Section VIII.A., above. Such additional improvements shall be a part of the Lease Improvements. C. O.X3;N~R.qHIP CIFIMPROVF, MF, NT,q: Except as otherwise provided in this Lease Agreement, the Lease Improvements constructed upon the Leased Premises by Lessee shall remain the property of Lessee during the Lease Term subject to the following conditions, terms and provisions: 1. Removal of lZhfildingg. No building or permanent fixture may be removed fi:om the Leased Premises. ~. The Lease Improvements shall automatically become the property of Lessor absolutely flee, without any cost to Lessor, at the end of the Lease Term, or any extension thereof. Failure to Comnlete 1 .e,.q~qee',q Impmvemenl.q, The Lease Improvements shall immediately become the property of Lessor at no cost, expense, or compensation to Lessee should Lessee fail to complete the Lessee's Improvements within the Construction Period as provided in Section II.C of this Lease Agreement. Cnneellatian or Termination. Should this Lease Agreement be cancelled or terminated before the end of the Lease Term, or extension thereof, Lessor shall have the right to purchase all of the Lease Improvements. In the event of a cancellation or termination, other then due to a default by Lessee that has not been cured as provided below, the purchase price shall be equal to the most recent value of the Lease Improvements as determined by the Denton County Central Appraisal District ("Value of the Lease Improvements") reduced by 1/30 for each year of the Lease Term that has expired as of the date of termination (the "Purchase Price''). Should the Denton County Central Appraisal District not determine a separate value for the Lease Improvements then the Purchase Price will be determined taking the Cost to Construct the Lease Improvements reduced by 1/30 for each year the Lease Term has expired as of the date of termination. If the termination or cancellation is due to a default by Lessee that has not been cured within 30 days after written notice of default to Lessee, then the Purchase Price as determined above shall be reduced by 50%. 3 - AGR DAHP.Doc- Page 13 IX. SIIBRO~ATTON f3r MORTGA~E~ Any person, corporation or institution that lends money to Lessee for construction of any hangar, structure, building or improvement and retains a security interest in said hangar, structure, building or improvement shall, upon default of Lessee's obligations to said mortgagee, have the right to enter upon the Leased Premises and operate or manage said hangar, structure, building or improvement according to the terms of this Lease Agreement, for a period not to exceed the term of the mortgage with Lessee,' or until the loan is paid in full, whichever comes first, but in no event longer than the Lease Tenn. R is expressly understood and agreed that the right of the mortgagee referred to herein is limited and restricted to those improvements constructed with funds borrowed from mortgagee, those improvements purchased with the borrowed funds, and those improvements pledged to secure the refinancing of the improvements. X. RIGHT C)V EAREMENT Lessor shall have the right' to establish easements, at no cost to Lessee, upon the Leased Premises for the purpose of providing underground utility services to, from or across the Airport property or for the construction of public facilities on the Airport. However, any such easements shall not interfere with Lessee's use of the Leased Premises and Lessor shall restore the property to the original condition as is reasonable practicable upon the installation of any utility services on, in, over or under any such easement at the conclusion of such construction. Constmction in or at the easement shall be completed within a reasonable time. XI. ASSIGNMENT OF T.EA,qF~ Lessee expressly covenants that it will not assign this Lease Agreement, convey more than fifty percent (50%) of the interest in its business, through the sale of stock or otherwise, transfer, license, nor sublet the whole or any part of the Leased Premises for any purpose, except for rental of hangar space or fie-down space for storage of aircraft only, without the written consent of Lessor. Lessor agrees that it will not unreasonably withhold its approval of such sale, sublease, transfer, license, or assignment of the facilities for Airport related purposes; provided however, that no such assignment, sublease, transfer, license, sale or otherwise shall be approved if the rental, fees or payments, received or charged are in excess of the rental or fees paid by Lessee to Lessor under the terms of this lease, for such portion of the Leased Premises proposed to be assigned, subleased, transferred, licensed, or otherwise. The provisions of this Lease Agreement shall remain binding upon the assignees, if any, of Lessee. XII. 1N,q111~ ANCE A. REQI tIRED lNkql YR ANCE: Regardless of the activities contemplated under this Lease Agreement, Lessee shall maintain continuously in effect at all times during the term of this agreement, at Lessee's sole expense, the following minimum insurance coverages: 3 - AGR DAHP.Doc- Paqe 14 Commercial (Public) General Liability covering the Lessee or its company, its employees, agents, tenants and independent contractors, and its operations on the airport. Coverage shall be in an amount not less than $1,000,000 per occurrence and provide coverage for premises/operations and contractual liability AND where exposure exists, coverage for: products/completed operations; explosion, collapse and underground property damage. All risk property insurance on a replacement cost basis covering loss or damage to all facilities used by the Lessee, either as a part of this agreement or erected by the Lessee subsequent to this agreement. Under no circumstances shall the Lessor be liable for any damages to fixtures, merchandise or other personal property of the Lessee or its tenants. Further, the City of Denton shall be named as a Loss Payee. 3. Business Automobile Liability to include coverage for Owned/Leased Autos, Non- Owned Autos and Hired Cars: For operation in aircraft movement areas the limit of liability shall be $100,000 per occurrence. For other operations the limit of liability shall be consistent with the amount set by State Law. B. ADD1TTONAI, CI3VFR AGF, g: In addition to the above referenced coverages, the following insurance is required if the activity or exposure exists or is contemplated: Aircraft Fuel/Oil Storage and Dispensing - Comprehensive Commercial (Public) General Liability shall include coverage or separate coverage shall be provided for Environmental Impairment Liability. Aircraft Sales or Aircraft Charter and Air Taxi - Aircraft Liability in the amount of $1,000,000 per occurrence to include Hull Coverage and Liability. In addition, Passenger Liability in an amount of $100,000 per person (per passenger seat) shall be provided. Aircraft Rental or Flight Training - Aircraft Liability in the amount of $1,000,000 per occurrence to include Hull Coverage and Liability, Passenger L/ability in the amount of $100,000 per person (per passenger seat) and Student/Renter Liability covering all users in the mount of $500,000 per occurrence. Specialized Commercial Flying (including crop dusting, seeding, and spraying, banner towing and aerial advertising, aerial photography and surveying, frre fighting, power line or pipe line patrol) - Aircraft Liability in the amount of $1,000,000 per occurrence to include Hull Coverage and Liability. In addition, Passenger Liability in an amount of $100,000 per person (per passenger seat) shall be provided. 3 - AGR DAHP.Doc- Page 15 5. Aircraft Storage, Maintenance and/or Repair - Aircraft Liability in the mount of $1,000,000 per occurrence to include Hull Coverage and Liability. In addition, Hanger Keepers Liabihty in the amount of $500,000 per occurrence shall be provided. C. COVERAGE REQIIIREMENTS: All insurance coverages shall complywith the following requirements: Ali liability policies shall name the City of Denton, and its officers and employees as an additional named insured and provide for a minimum of 30 days written notice to the City of any cancellation or material change to the policy. All insurance required by this Lease Agreement must be issued by a company or companies of sound and adequate financial responsibility and authorized to do business in the State of Texas. All policies are subject' to the examination and approval of the City's office of Risk Management for their adequacy as to content, form of protection and providing company. Required insurance naming the City as an additional insured must be primary insurance and not contributing with any other insurance available to the City whether from a third party liability policy or other. Said limits of insurance shall in no way limit the liability of the Lessee hereunder. The Lessor shall be provided with a copy of all such policies and renewal certificates. Failure of Lessee to comply with the minimum specified amounts or types of insurance as required by Lessor shall constitute Lessee's default of this Lease Agreement. During the Lease Term, or any extension thereof, Lessor herein reserves the right to, with 60 days notice, adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessor; provided however, that any requirements shall be commensurate with insurance requirements at other public use airports similar to the Denton Municipal Airport in size and in scope of aviation activities, located in the southwestern region of the United States. XIII. CANCEl .1 .ATION BY LESSOR In the event that Lessee shall file a voluntary petition in bankruptcy or proceedings in bankruptcy shall be instituted against it and Lessee thereafter is adjudicated bankrupt pursuant to such proceedings, or any court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall be divested of its estate herein by other operation of law; or Lessee shall fail to 3 - AGR DAHP.Doc- Page 16 perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to correct such condition or cure such default and, if any condition or default shall continue for thirty (30) days after the receipt of such notice by Lessee, then Lessor may terminate this Lease Agreement by written notice to Lessee. In the event of default, Lessor has the right to purchase any or all of the Lease Improvements under the provisions of Section Vnt. C.4. hereof. XIV. CANCF. IJ,ATION ttY 1 ,F, RRFF, Lessee may cancel this Lease Agreement, in whole or part, and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the following events: (1) issuance by any court of competent juris- diction of a permanent injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes; (2) the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of ninety (90) days after receipt of a written notice of the existence of such breach; (3) the inability of Lessee to use the Lease Premises and facilities continuing for a longer period than ninety (90) days due to any law or any order, role or regulation of any appropriate governmental authority having jurisdiction over the operations of Lessor or due to war, earthquake or other casualty; or (4) the assumption or recapture by the United States Government, or any authorized agency thereof, of the maintenance and operation of said airport and facilities or any substantial part or parts thereof. Upon the happening of any of the four events listed in the preceding paragraph, such that the Leased Premises cannot be used for aviation purposes, then the Lessee may cancel this Lease Agreement as aforesaid, or may elect to continue this Lease Agreement under its terms, except, however, that the use of the Leased Premises shall not be limited to aviation purposes, their use being only limited by such laws and ordinances as may be applicable at that time. XV. MTRC,,I~,T J ,ANIF;.OI lS PROVTRIONIR A. FJNTIRF. AGREEMENT. This Lease Agreement constitutes the entire understanding between the parties and as of its Effective Date supersedes all prior or independent Agreements between the parties covering the subject matter hereof. Any change or modification hereof shall be in writing signed by both parties. B. BINDiNG EFFECT. All covenants, stipulations and agreements herein shall extend to, bind and inure to the benefit of the legal representatives, successors and assigns of the respective parties hereto. C. SF~VFRAI:III.ITY. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, the entire Lease Agreement shall not be void; but the remaining provisions shall continue in effect as nearly as possible in 3 - AGR DAKP.Doc- Page 17 accordance with the original intent of the parties. D. NOTICE. Any notice given by one party to the other in connection with this Lease Agreement shall be in writing and shall be sent by certified mail, return receipt requested, with postage fees prepaid or via facsimile as follows: 1. If to Lessor, addressed to: City Manager City of Denton 215 E. McKinney Street Denton, Texas 76201 Fax No.940.349.8596 2. tfto Lessee, addressed to: Mr. Alan D. Stricklin CEO & President Denton Airport Hangars, LLC 3932 Bexhill Dr. Piano, Texas 75025 Fax 972.491.2439 E. I-tF, ADINGg. The headings used in this Lease Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement. F. GOVFRNING 1 ,AW AND VFNI IF,. This Lease Agreement is to be construed in accordance with the laws of the State of Texas and is fully performable in Denton County, Texas. Exclusive venue for any lawsuit to enforce the terms or conditions of this Lease Agreement shall be a court of competent jurisdiction in Denton County, Texas. G. NO WAIVER. No waiver by Lessor or Lessee of any default or breach of covenant or term of this Lease Agreement may be treated as a waiver of any subsequent default or breach of the same or any other covenant or term of this Lease Agreement. H. NO AGENCY. During all times that this Lease Agreement is in effect, the parties agree that Lessee is and shall not be deemed an agent or employee of the Lessor. IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the Effective Date first above written. CITY OF DENTON, TEXAS, LESSOR 3 - AGR DAHP.Doc- Page 18 BY: MICHAEL A. CONDUFF, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROLrff, CITY ATTORNEY BY: ALAN D. STRICKLIN, CEO & PRESIDENT ACKNOWLEDGMENTS THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ~ day of ,2004, by Michael A. Conduff, City Manager of the City of Denton, Texas, on behalf of said municipality. NOTARY PUBLIC, STATE OF TEXAS THE STATE OF TEXAS § 3 - AGR DAHP.Doc~ Page 19 COUNTY OF DENTON § This instrument was acknowledged before me on the '~ Alan Stricklin, President & CEO, Denton Airport Hangars, LLC NOT/~R~"PUBLI~2, S'I~AT~XAS 3 - AGR DAHP,Doc- Page 20 Ueld al!$ paBJelU3 Ii L~ AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: September 7, 2004 Engineering Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an ordinance of the City of Demon, Texas, providing for the renaming of Cypress Boulevard to Russell-Newman Boulevard and providing an effective date. BACKGROUND Frank Martino, Sr., of Russell-Newman Incorporated, requests renaming the street currently known as Cypress Boulevard to Russell-Newman Boulevard. The road itself has yet to be constructed or established in data records, thus there are no residences or businesses that would be affected by street name change. Dean Bray, Fire Department 911 Addressing Coordinator, has reviewed the proposed street name change and is in support. The pending road project will commence in the near-term and if a street name change is being contemplated it is optimal that the name change be initiated prior to the formal establishment of the road, so as to eliminate confusion. OPTIONS 1. Approve the Ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff recommends approval of the street name change from Cypress Boulevard to Russell- Newman Boulevard. PRIOR ACTION/REVIEW (Council, Boards, Commissions) None FISCAL INFORMATION None ATTACHMENTS ~ Location Map > Ordinance Prepared by: Paul Williamson Real Estate Manager Respectfully submitted: Kelly Carpenter, Director Planning Department MISTYWOOD LANE ~, 0 0 iRANDYWlNE . >- i CT ~IIMI AUDRA KINGFISHER !MEADOWLARKI ORIOLE AUDRA HOLLAND D.P.S. FEMA CYPRESS BLVD MARKET ST. ~ BLAGG MILLS Locotion of Affected Future S{reet MORSE L GAELIC TARTA Z N P WAY IE DR S:\Our Documents\Ordinances\0~[kStreet Name-Russell-Newman. DOC ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR THE RENAMING OF CYPRESS BOULEVARD TO RUSSELL-NEWMAN BOULEVARD; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Russell-Newman, Incorporated on or about August 16, 2002 dedicated street right-of-way for Cypress Boulevard as part of the final plat of Lot 1, Block B, Russell- Newman Addition, an addition to the City of Denton, recorded in Cabinet U, Page 582 of the Plat Records of Denton County, Texas; and WHEREAS, the owners of Russell-Newman, Incorporated have requested that the name be changed from Cypress Boulevard to Russell-Newman Boulevard in advance of the formal establishment of the proposed public street; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The proposed street officially designated as Cypress Boulevard on the final plat referenced above, being an east/west public street right-of-way connecting State Highway Loop 288 to Mayhill Road and illustrated in Exhibit "A" and attached herewith, is renamed to Russell-Newman Boulevard. SECTION 2: The Director of Planning and Development is directed to amend the official map of the City of Denton to reflect the change in the street name as provided herein. SECTION 3: This ordinance shall become effective immediately upon its passage and approval. PASSED AI,~D APPROVED this the __day of .,2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULINE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERB~Y, C~RNEY BY: ~ ~ ,00'~£9 \ \ \ \ \ \ \ \ c~ F-- c._) < '~'d 'zoo, 'Od 'g S31~l~flONi NO. LN3O 0 ,LO1 AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: CM/DCM/ACM: Police Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an ordinance of the City of DeNon, Texas, amending Ordinance No. 2001-095 by increasing fares for one-quarter mile taxicab service from $0.40 to $0.50 for each one-quarter mile pursuant to Chapter 27, Article VI of the Code of Ordinances of the City of Denton, Texas, titled Taxicabs, Limousines, Shuttles; providing that a schedule of fees shall be maimained on file in the office of the City Secretary; providing a savings clause, providing a severability clause; and providing an effective date. BACKGROUND In July 2004, Gary Naderi, the owner of the only licensed taxi company in DeNon presented a report to City Council requesting an increase in the taxi fares from the current $0.40 per quarter mile to $0.50 per quarter mile. In accordance with Chapter 27 Article VI titled "Taxicabs, Limousines, and Shuttles". Mr. Naderi submitted a written request for this increase to the Chief of Police. His justification for this increase is based on the increase in gasoline prices and vehicle maimenance requiremems comained in an ordinance revision adopted in January 2001. Police Department staff has reviewed Mr. Naderi's request and recommends adoption of an ordinance increasing the fares as requested. OPTIONS 1. The Council can adopt the ordinance. 2. The Council can choose not to adopt ordinance. RECOMMENDATION Staff recommends of the ordinance. The Legal Department has approved the ordinance as to form and content. PRIOR ACTION/REVIEW The current ordinance, setting the fare at the t $0.40 per quarter mile, was adopted by Council on January 23,2001. FISCAL IMPACT The ordinance will not involve any additional costs to the City. Respectfully submit*ted, Charles Wiley Chief of Police Prepared by: Joanie Housewright Captain Operations Bureau S:5Our DocumentsSOrdinancesS04~taxicab fares2.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE NO. 2001-095 BY INCREASING FARES FOR ONE-QUARTER MILE TAXICAB SERVICE FROM $0.40 TO $0.50 FOR EACH ONE-QUARTER MILE PURSUANT TO CHAPTER 27, ARTICLE VI OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, TITLED TAXICABS, LIMOUSINES, SHUTTLES; PROVIDING THAT A SCHEDULE OF FEES SHALL BE MAINTAINED ON FILE IN THE OFFICE OF THE CITY SECRETARY; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager, in consultation with the Police Department, recommended a change in taxicab fares to the City Council; and WHEREAS, the taxicab fares were previously established by Ordinance No. 2001-095 pursuant to Section 27-203 of the Code of Ordinances; and WHEREAS, the City Council deems it in the public interest to increase these fares and set them forth in this ordinance; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following fares are hereby established by this ordinance to be charged pursuant to the specified provisions of Chapter 27, Article VI of the Code of Ordinances: TAXICAB RATES $2.00 INITIAL METER DROP $ .50 FOR EACH 1/4 MILE, AND PER 1 1/2 MINUTE TRAFFIC DELAY $2.00 FOR EACH EXTRA PASSENGER (Up to Rated Seating Capacity) SECTION 2. That the above-mentioned fares as established by the City Council shall be placed on file in the office of the City Secretary and made available to any member of the public who wishes to see a copy of the fares as established by this ordinance. The City Secretary is directed to maintain this Taxicab Rates schedule on file in the City Secretary's office as adopted hereby or as in the future may be established by the City Council. SECTION 3. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 4. That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstance is held invalid by any S:\Our Documents\Ordinancos\04\/axicab lkros2.doc court of competem jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Demon, Texas hereby declares it would have enacted such remaining portions despite any such validity. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: CM/DCM/ACM: Police Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an Ordinance of the City Of DeNon, Texas amending Chapter 27 relating to vehicles for hire by amending Article VI Part B Section 27-159 titled "Application for Annual Permit" by removing the requiremeN of a permaneN and established place of business within the City of DeNon and by adding the requiremeN of a local phone number; providing a severability clause; a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. BACKGROUND On February 20, 2001, Council adopted ordinance 2001-094, a revision of Chapter 27, Article VI, regulating vehicles for hire within the City limits. The ordinance requires that any company operating vehicles for hire that pick up fares in the City obtain an annual operating authority permit. In order to qualify for a permit, the applicant must meet certain requirements, including the maintenance of a permanent place of business in the City. The primary purpose of this requirement is to provide customers with access to the company should they have questions or complaints about the service. However, companies that operate vehicles for hire may transport fares from other jurisdictions iNo the City without obtaining an operating authority. This makes enforcemeN of the ordinance impractical because officers have no way of knowing simply by sight if the vehicle for hire is transporting a fare that was picked up inside the City or in another jurisdiction. The only alternative is to stop vehicles for hire to determine the fare status which may result in unnecessary delay and inconvenience to the fare. Additionally, at least one company located outside the City routinely operates inside the City on a coNract with DeNon County MHMR. These vehicles are in the City daily and, again, there is no way to determine the legality of their fares without stopping each vehicle. CurreNly, A's Taxi Service is the only permitted operating authority in the City. The company re-located in January and numerous attempts to contact employees at that location during the required hours of operation have been unsuccessful. The owner, Gary Naderi, advised that it cost him $75.00 per day to operate the office and that he can respond to customer requests for service, inquiries and complains just as efficieNly and effectively by cell phone. Further, the Police Department has contacted several transport companies during investigations that the companies are operating in Denton without the required operating authority. These companies expressed interest in operating in Denton if there was no requirement to maintain a permanent business location within the City. This proposed revision replaces the requirement for a permanent business location with the requirement that all operating authorities maintain a local telephone number that can be used for requests for service, inquiries and complaints from citizens. If adopted and valid complaints are received regarding the service of any operating authority, the Police Department may revoke or suspend the operating authority in accordance with Part H of Chapter 27. Officer Bryan spoke with Antonio Puente, JR. with the City Management and Budget office. It was determined that there are not any additional taxes received from taxicab and shuttle services beyond the property tax, if they own the location. OPTIONS 1. The Council can adopt the proposed revision. 2. The Council can choose not to adopt the proposed revision. RECOMMENDATION Staff recommends adoption of the proposed revision. 1. Eliminating the requirement of a permanent business location will ensure that A's Taxi Service is in compliance with the ordinance. 2. Eliminating the requirement will eliminate what Mr. Naderi believes is an unnecessary business hardship. 3o Eliminating the requirement may increase the number of transport companies that are authorized to operate within the City, providing both an increase in choice for citizens and potentially improving service through competition. PRIOR ACTION/REVIEW The Legal Department has approved the ordinance as to form and content. FISCAL IMPACT The ordinance will not result in additional costs to the City. According to the City's Office of Management and Budget, requiring a permanent business location does not enhance revenues and, therefore, the elimination of permanent business locations within the City will not result in lost revenue. All companies operating under this ordinance will be required to pay an annual permit fee of $250.00 and an annual vehicle permit fee of $100.00 per vehicle operated. Respectfully submitted, Prepared by: Joanie Housewright Captain Operations Bureau Charles Wiley Chief of Police C:kDOCUME-l\cadickkLOCALS~I\Terap\Taxi OrdinanceDenton l.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING CHAPTER 27 RE- LATING TO VEHICLES FOR HIRE BY AMENDING ARTICLE VI PART B SECTION 27- 159 TITLED "APPLICATION FOR ANNUAL PERMIT" BY REMOVING THE REQUIRE- MENT OF A PERMANENT AND .ESTABLISHED PLACE OF BUSINESS WITHIN THE CITY OF DENTON AND BY ADDING THE REQUIREMENT OF A LOCAL PHONE NUM- BER; PROVIDING A SEVERABILITY CLAUSE; A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS: SECTION 1. That Section 27-159(a) of the Code of Ordinances of Denton, Texas is hereby amended by changing subsection (9) to read as follows: (9) Proof of a local phone number or a toll-free number fi:om which the proposed taxi cab, limousine, or shuttle service may be contacted; SECTION2. That Section 27-159(c) of the Code of Ordinances of Denton, Texas is hereby amended by changing subsection (c) to read as follows: (c) The local or toll-free phone access required by subsection (a)(9), of this section, must be available from 9:00 a.m. to 5:00 p.m. weekdays, other than recognized holidays, and must be staffed and equipped to receive telephone calls during all business hours. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any invalidity. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsec- tions, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 5. That any person found guilty of violating this ordinance by a court of competent jurisdiction shall be freed a sum not to exceed five hundred dollars ($500) per day. Each day that a provision of this ordinance is violated shall constitute a separate offense SECTION 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be pubhshed twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. Denton City Code 1 C:~DOCUMF_~I\cadick\LOCALS~I\Temp\Taxi OrdinanceDemon 1.doc PASSED AND APPROVED this the day of .,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Denton City Code 2 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Water Utilities ~.1 Howard Martin, 349-8437 ~ SUBJECT Consider adoption of an Ordinance of the City Council of DeNon, Texas authorizing the City Manager to execute a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Mar-Properties, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. BACKGROUND The developer, Mar-Properties, Ltd., is developing Corbin Road Industrial Park. (Exhibit 1). Mar-Properties is installing a 12-inch off-site water main extension for this project. The offsite water main shall be subject to pro-rata reimbursemem in accordance with the agreement (Exhibit 2) and DeNon Developmem Code 35.21.10.1. The cost of the design, construction and installation of the water facilities subject to pro-rata reimbursemem is ninety-six thousand nine hundred fourteen dollars and fifty ceres ($96,914.50) or forty-six dollars and eighty-two ceres ($46.82) per linear foot for the two thousand and seventy (2,070) linear feet of off-site facilities. The City will transfer to the developer pro-rata charges collected for a period of 20 years from the date facilities are accepted by the City. However, the City will not transfer or reimburse the developer funds in excess of the certified cost of the facilities. RECOMMENDATION Staff recommends approval of the Water Main Pro-rata Agreement with Mar-Properties, Ltd. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented the to Public Utilities Board at their July 12, 2004 meeting. The item was approved unanimously by a vote of 7 to 0. FISCAL INFORMATION Any customer connecting to the water line will pay pro rata charges based on a per-frontage-foot basis. Water Pro Rata $46.82 per linear foot EXHIBITS 1. Map 2. Ordinance 3. Agreement 4. Minutes Prepared by: Respectfully submitted: Jim Coulter Director of Water Utilities Kevin Roberts, P.E. Sr. Engineer, Development Review ],AIRPORT RO, ¢,D Exhibit~ 2070 I,f, /-- PROPOSED / 12" WATERLINE ~ ,~SITE METRO ST. CORBIN ROAD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES July 12, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 12, 2004, at 9:00 a.m. in the Service Cemer Training Room, City of Demon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bill Cheek, Yolanda Guzman, George Hopkins, Charldean Newell, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities EXCUSED: The Public Utilities Board convened into Open Session at 9:00 a.m. CONSENT AGENDA: 1) Consider approval of Bid #3172 from Powell Electrical Manufacturing Company, Houston, Texas, to provide two complete and fully functional substation bus duct replacements for DME personnel to install at the Hickory Substation in the lump-sum amount of $27,829. 2) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Mar-Properties, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 3) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 4) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. 5) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and the Denton Independent School District for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. Board Member George Hopkins moved to approve Consent Agenda Items #1-#5, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. EXHIBIT 4 Page 1 of 1 ORDINANCE NO. 2004- AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND MAR-PROPERTIES, LTD. FOR REIMBURSEMENT OF THE COSTS OF BUILDING A WATER MAIN, THROUGH PRO-RATA CHARGES PAD TO THE CITY; AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO THE AGREEMENT; AND PROVDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas requires that the development owned by Mar- Properties, Ltd. ("Developer") commonly referred to as that real property described as "Denton Creek Business Park" (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction; and said Developer is required to provide such real property with adequate water service by designing, constructing, and installing a water main; and WHEREAS, the City of Denton, Texas may lawfully reimburse the Developer for the costs of the water main installation by the Developer based upon pro-rata charges paid to the City by persons connecting to the water main pursuant to the Denton Development Code, Subchapter 35.21.10.1 and ..2; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1~ That the City Manager is authorized to execute a Water Main Pro-Rata Reimbursement Agreement Between the City of Denton, Texas and Mar-Properties, Ltd. (the "Agreement") to provide for the pro-rata reimbursement for the design, construction, and installation of 2,070 linear feet of 12-inch diameter off-site water mains, substantially in the form of the attached Agreement, which is incorporated herewith by reference and made a part of this Ordinance for all purposes; subject however, to Developer, Mar-Properties, Ltd. entering into a Development Contract with the City of Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.2. SECTION 2. That the City Manager is hereby authorized to make such expenditures and transfers of funds under such conditions as are set forth in the attached Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINEBROCK, M AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Documents\Ordinances\04\Water Main Pro-Rata Reimb Ord-Denton Creek Bus Park-2004.doc THE STATE OF TEXAS § COUNTY OF DENTON § WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND MAR-PROPERTIES, LTD. WHEREAS, Mar-Properties, Ltd. ("Developer"), whose business address is 228 l- A Masch Branch Road, Denton, Texas 76207, wishes to develop and improve certain real property named the "Denton Creek Business Park" (as shown in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction, and is required to provide such property with adequate water service by designing, constructing and installing a water main; and WHEREAS, the City of Denton, Texas ("City"), a municipal corporation, located at 215 East McKinney Street, Denton, Texas 76201, in accordance with its ordinances may reimburse Developer for the costs of the water main installed by the Developer, based upon pro-rata charges paid to the City by persons connecting to the water main; NOW, THEREFORE, in consideration of their mutual promises, Developer and City agree as follows: o Developer has designed, installed and constructed, 12-inch diameter off-site water main and all necessary appurtenances thereto, extending a total distance of approximately 2,070 feet ("Facilities"), located as shown on Exhibit II, attached hereto and incorporated herein by reference. This off-site water main shall be subject to pro-rata reimbursement in accordance with this Agreement. Prior to beginning construction of Facilities, Developer shall obtain at Developer's sole cost and expense, all necessary permits, licenses, and easements. If easements are needed, the deeds therefore obtained by Developer shall be reviewed and approved as to form and substance by the City prior to the beginning of construction. If Developer is unable to acquire needed easements, Developer shall provide the City with any requested documentation of efforts to obtain such easements, including evidence of negotiations and reasonable offers made to the affected property owners. Any easements for the Facilities obtained by the Developer shall be assigned to City, if not taken in City's name, prior to acceptance of the Facilities; and Developer warrants clear title to such easements and will defend the City against any adverse claim made against such title. 3. The cost for the design, construction, and installation of the Facilities subject to pro-rata reimbursement is: EXHIBIT 3 o o o $96,914.50 (Developer's cost) or $46.82 per linear foot (2,070 linear feet of off-site Facilities) See attached Exhibit III for cost breakdown Within thirty (30) days of the acceptance of the Facilities by the City, Developer shall submit to the City's Assistant City Manager of Utilities the actual cost of the Facilities. To determine the actual cost of the Facilities, the City shall have the right to inspect any and all records of Developer, his agents, employees, contractors, or subcontractors and shall have the right to require Developer to submit to the City any necessary information, documents, invoices, receipts or other records to verify the actual cost of the Facilities. The Assistant City Manager of Utilities shall review and verify the actual cost of the Facilities and certify the allowable reimbursable cost and the date the Facilities were accepted, which certificate shall be attached hereto and be incorporated herein by reference. After title to the Faculties have vested in the City, the City shall collect a pro-rata charge from any person connecting to the off-site facilities in accordance with the provisions of the Code of Ordinances of the City. Within thirty (30) days of the receipt of pro-rata charges, the City shall transfer the applicable amount collected to Developer. The City shall transfer to Developer pro-rata charges collected for a period of time for twenty (20) years from the date Facilities are accepted by City, as specified herein, but shall not transfer or reimburse to the Developer any amount of funds in excess of the certified cost of the Facilities, as determined by the City in paragraph 4 above. The parties hereto recognize that the Facilities subject to this Agreement are necessary to provide water service to the Developer's property. The pro-rata charges to be collected by the City and transferred to Developer in accordance with the ordinances of the City and this Agreement are intended to reimburse the Developer for the Developer's cost of the Facilities by requiring persons connecting who benefit thereby, to participate in the cost of the Facilities. This Agreement shall not be considered to impose any obligation or liability upon the City to pay for the Facilities from its general revenues, bond funds or any other revenues it may receive, except for those pro-rata funds received from persons connecting to such Facilities. Should any court of competent jurisdiction determine that all or a part of the City's ordinance upon which the pro-rata charges to be paid to Developer under this Agreement are based, are found to be unlawful or invalid, the City may cease to charge or collect the pro-rata charges for connection to the Facilities, and shall have no further obligations hereunder. 2 10. All notices, payments or communications to be given or made pursuant to this Agreement by the parties hereto, shall be sent to Developer at the business address given above and to the Assistant City Manager of Utilities for the City at the address given above. 11. The Developer shall indemnify and hold the City harmless from any and all claims, damages, loss or liability of any kind whatsoever, by reason of injury to property or person occasioned by any act or omission, neglect or wrongdoing of Developer, its officers, agents, employees, invitees, contractors or other persons with regard to the performance of this Agreement; and Developer will, at its own cost and expense, defend and protect the City against any and all such claims and demands. 12. This instrument embodies the whole agreement of the parties hereto, and there are no promises, terms, conditions or obligations other than those contained herein. This Agreement shall supersede all previous communications, representations or agreements, either verbal or written, between the parties hereto. 13. Developer shall not assign this Agreement without the express written consent of the City. 14. Any and all suits for any breach of this Agreement, or any other suit pertaining to or arising out of this Agreement, shall be brought and maintained in the court of competent jurisdiction in Denton County, Texas. 15. This Agreement shall be effective for a period of twenty (20) years from the date Facilities are accepted by the City, or until Developer has been paid all allowable reimbursable pro-rata charges for the Facilities, whichever occurs first; provided, however, should Developer fail to complete substantial construction of the Facilities within one year from the date of execution of this Agreement, this Agreement shall terminate. EXECUTED this the day of ,2004. "CITY" CITY OF DENTON, TEXAS By: Michael A. Conduff, City Manager 3 ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: /~'.~~ ~~Q~ ATTESTED BY: By: APPROVED AS TO LEGAL FORM: S:\Our Documents\Contracts\04\Water Main Pro-Rata Agrmt-2004.doc "DEVELOPER" MAR-PROPERTIES, LTD. EXhibit ROAD ],AIRPORT RO, ¢,D IExhibit~l 2070 I.f. /--- PROPOSED / 12" WATERLINE ~ ,~SITE METRO ST. CORBIN ROAD JRJ PAVING, LP P.O. Box 59934 · 11359 Kline Drive · Dallas, TX 75229 Phone (972) 857-2291 EXHIBIT III QUOTATION AND SALES CONTRACT Mar-Properties, LTD ~/_~9~ 2281 A Masch Branch Rd Date: Denton, TX 76207 We propose to furnish all materials, labor, tools and equipment to complete the following work: Job & Location: RI~IBIT. A, 12" Water Line Installati'0fi~Z"d6~S'i~ ~a, . 3,:145 .LF. 12 EA 11 EA 6EA 20 LF 1 EA 1 EA 3,145 LF 3EA ~ ~., 12".. Drip.. pvc. water 'line Iron fittings -~.' Fire hydrant · Gate valve Concrete encasement Air release valve Blow off valve Trench safety 13" Gate valve Move in · 28.35 990.00 2,000.00 865.00 67.50 6,110';00 . 480.00 1.30 18.20 · :89.,160~75 11;880.00~ 22,000.00 1,350.00 '6~110~00 480.00 4,088.50 5,460.00 1,500.00 Total 147,224,50 Tenlls: Your signing and returning of this Quotation will constitute a contract subject to the approval of our c~edit departu,cttt and will be our authority to proceed with the work as described herein, except Seller reserves the right to consider this quotation null and void if executed subsequent to .. days from the date hereinabove written. The terms and conditiutts on the back hereof are a part of this contract as through written herein. NOTICE: ADDITIONAL TERMS AND CONDITION S INCORPORATED HF_REIN AS PART oF YOUR QUOTATION AND SALES CONTRACT ARE ON THE BACK. PLEASE READ BEFORE SIGNING AND ACCEPTING INASMUCH AS YOUR SIGNATURE AND ACCEPTANCE OF TrlE QUOTATION AND SALES CONTRACT SHALL BE DEEMED AN ACCEPTANCE OF THE TERMS AND CONDITIONS STATED ON THF4REVERSE SIDE OF THIS QUOTATION AND SALES CONTRACT. ACCEPTED:.~ ["I'~"~ Respectfully submitted,~, gel/e, Upon aeceptanc~ please execute and return original, retaining a copy for your records. (over) AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Water Utilities Howard Martin, 349-8437 SUBJECT Consider adoption of an Ordinance of the City Council of DeNon, Texas authorizing the City Manager to execute a Water Main Pro-rata Reimbursement Agreement between the City of DeNon and Quail Creek North, Ltd. for reimbursemem of the costs of building a water main, through pro-rata charges paid to the city; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. BACKGROUND The developer, Quail Creek North, Ltd., has constructed Quail Creek Apartmems on Quail Creek Road near Brinker. (Exhibit 1). Quail Creek North, Ltd. has installed a 12-inch diameter off site water main The offsite water main shall be subject to pro-rata reimbursement in accordance with the agreemems (Exhibit 2) and DeNon Developmem Code 35.21.10.1. The cost of the design, construction and installation of the water facilities subject to pro-rata reimbursemem is seventy five thousand seven hundred seven dollars and thirty eight ceres ($75,707.38) or thirty seven dollars and eighty five ceres ($37.85) per linear foot for the two thousand (2,000) linear feet of off-site facilities. The City will transfer to the developer pro-rata charges collected for a period of 20 years from the date facilities are accepted by the City. However, the City will not transfer or reimburse the developer funds in excess of the certified cost of the facilities. RECOMMENDATION Staff recommends approval of the Water Main Pro-rata Agreement with Quail Creek North, Ltd. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented to the Public Utilities Board at their July 12, 2004 meeting. The item was approved unanimously by a vote of 7 to 0. FISCAL INFORMATION Any customer connecting to the water line will pay pro rata charges based on a per-frontage-foot basis. Water Pro Rata $37.85 per linear foot EXHIBITS 1. Map 2. Ordinance 3. Agreement 4. PUB Minutes Prepared by: Kevin Roberts, P.E. Sr. Engineer, Development Review Respectfully submitted: Jim Coulter Director of Water Utilities Exhibit I Creek Vicini~ Map SITE E DISCLAIMER 3his data has been compiled for the City o~ DarVon. Various official and unofficial sources were used to gather this information. Every efl'or~ was made to ensure the accuracy of this data, however, no guarantee is given or implied as to the accuracy of said dat~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES July 12, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 12, 2004, at 9:00 a.m. in the Service Cemer Training Room, City of Demon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bill Cheek, Yolanda Guzman, George Hopkins, Charldean Newell, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities EXCUSED: The Public Utilities Board convened into Open Session at 9:00 a.m. CONSENT AGENDA: 1) Consider approval of Bid #3172 from Powell Electrical Manufacturing Company, Houston, Texas, to provide two complete and fully functional substation bus duct replacements for DME personnel to install at the Hickory Substation in the lump-sum amount of $27,829. 2) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Mar-Properties, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 3) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 4) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. 5) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and the Denton Independent School District for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. Board Member George Hopkins moved to approve Consent Agenda Items #1-#5, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. EXHIBIT 4 Page 1 of 1 ORDINANCE NO. 2004- AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. FOR REIMBURSEMENT OF THE COSTS OF BUILDING A WATER MAIN, THROUGH PRO-RATA CHARGES PAD TO THE CITY; AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO THE AGREEMENT; AND PROVDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas requires that the development owned by Quail Creek North, Ltd. ("Developer") commonly referred to as that real property described as the "Quail Creek Apartments" (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction; and said Developer is required to provide such real property with adequate water service by designing, constructing, and installing a water main; and WHEREAS, the City of Denton, Texas may lawfully reimburse the Developer for the costs of the water main installation by the Developer based upon pro-rata charges paid to the City by persons connecting to the water main pursuant to the Denton Development Code, Subchapter 35,21.10.1 and .2; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is authorized to execute a Water Main Pro-Rata Reimbursement Agreement Between the City of Denton, Texas and Quail Creek North, Ltd. (the "Agreement") to provide for the pro-rata reimbursement for the design, construction, and installation of 2,000 linear feet of 12-inch diameter off-site water mains, substantially in the form of the attached Agreement, which is incorporated herewith by reference and made a part of this Ordinance for all purposes; subject however, to Developer, Quail Creek North, Ltd. entering into a Development Contract with the City of Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.2. SECTION 2. That the City Manager is hereby authorized to make such expenditures and transfers of funds under such conditions as are set forth in the attached Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATToRNEy By: ~ S:\Our Documents\Ordinanees\04\Water Main Pro-Rata Reimb Ord-Quail Creek Apartments-2004.doc THE STATE OF TEXAS § COUNTY OF DENTON § WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. WHEREAS, Quail Creek North, Ltd. ("Developer"), whose business address is 975 One Lincoln Centre, 5400 LBJ Freeway, Dallas, Texas 75240, wishes to develop and improve certain real property named the "Quail Creek Apartments" (as shown in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction, and is required to provide such property with adequate water service by designing, constructing and installing a water main; and WHEREAS, the City of Denton, Texas ("City"), a municipal corporation, located at 215 East McKinney Street, Denton, Texas 76201, in accordance with its ordinances may reimburse Developer for the costs of the water main installed by the Developer, based upon pro-rata charges paid to the City by persons connecting to the water main; NOW, THEREFORE, in consideration of their mutual promises, Developer and City agree as follows: Developer has designed, installed and constructed, 12-inch diameter off-site water main and all necessary appurtenances thereto, extending a total distance of approximately 2,000 feet ("Facilities"), located as shown on Exhibit II, attached hereto and incorporated herein by reference. This off-site water main shall be subject to pro-rata reimbursement in accordance with this Agreement. Prior to beginning construction of Facilities, Developer shall obtain at Developer's sole cost and expense, all necessary permits, licenses, and easements. If easements are needed, the deeds therefore obtained by Developer shall be reviewed and approved as to form and substance by the City prior to the beginning of construction. If Developer is unable to acquire needed easements, Developer shall provide the City with any requested documentation of efforts to obtain such easements, including evidence of negotiations and reasonable offers made to the affected property owners. Any easements for the Facilities obtained by the Developer shall be assigned to City, if not taken in City's name, prior to acceptance of the Facilities; and Developer warrants clear title to such easements and will defend the City against any adverse claim made against such title. 3. The cost for the design, construction, and installation of the Facilities subject to pro-rata reimbursement is: EXHIBIT 3 o o o o $75,707.38 (Developer's cost) or $37.85 per linear foot (2,000 linear feet of off-site Facilities) See attached Exhibit III for cost breakdown Within thirty (30) days of the acceptance of the Facilities by the City, Developer shall submit to the City's Assistant City Manager of Utilities the actual cost of the Facilities. To determine the actual cost of the Facilities, the City shall have the right to inspect any and all records of Developer, his agents, employees, contractors, or subcontractors and shall have the right to require Developer to submit to the City any necessary information, documents, invoices, receipts or other records to verify the actual cost of the Facilities. The Assistant City Manager of Utilities shall review and verify the actual cost of the Facilities and certify the allowable reimbursable cost and the date the Facilities were accepted, which certificate shall be attached hereto and be incorporated herein by reference. After title to the Faculties have vested in the City, the City shall collect a pro-rata charge from any person connecting to the off-site facilities in accordance with the provisions of the Code of Ordinances of the City. Within thirty (30) days of the receipt of pro-rata charges, the City shall transfer the applicable amount collected to Developer. The City shall transfer to Developer pro-rata charges collected for a period of time for twenty (20) years from the date Facilities are accepted by City, as specified herein, but shall not transfer or reimburse to the Developer any amount of funds in excess of the certified cost of the Facilities, as determined by the City in paragraph 4 above. The parties hereto recognize that the Facilities subject to this Agreement are necessary to provide water service to the Developer's property. The pro-rata charges to be collected by the City and transferred to Developer in accordance with the ordinances of the City and this Agreement are intended to reimburse the Developer for the Developer's cost of the Facilities by requiring persons connecting who benefit thereby, to participate in the cost of the Facilities. This Agreement shall not be considered to impose any obligation or liability upon the City to pay for the Facilities from its general revenues, bond funds or any other revenues it may receive, except for those pro-rata funds received from persons connecting to such Facilities. Should any court of competent jurisdiction determine that all or a part of the City's ordinance upon which the pro-rata charges to be paid to Developer under this Agreement are based, are found to be unlawful or invalid, the City may cease to charge or collect the pro-rata charges for connection to the Facilities, and shall have no further obligations hereunder. 2 10. All notices, payments or communications to be given or made pursuant to this Agreement by the parties hereto, shall be sent to Developer at the business address given above and to the Assistant City Manager of Utilities for the City at the address given above. 11. The Developer shall indemnify and hold the City harmless from any and all claims, damages, loss or liability of any kind whatsoever, by reason of injury to property or person occasioned by any act or omission, neglect or wrongdoing of Developer, its officers, agents, employees, invitees, contractors or other persons with regard to the performance of this Agreement; and Developer will, at its own cost and expense, defend and protect the City against any and all such claims and demands. 12. This instrument embodies the whole agreement of the parties hereto, and there are no promises, terms, conditions or obligations other than those contained herein. This Agreement shall supersede all previous communications, representations or agreements, either verbal or written, between the parties hereto. 13. Developer shall not assign this Agreement without the express written consent of the City. 14. Any and all suits for any breach of this Agreement, or any other suit pertaining to or arising out of this Agreement, shall be brought and maintained in the court of competent jurisdiction in Denton County, Texas. 15. This Agreement shall be effective for a period of twenty (20) years from the date Facilities are accepted by the City, or until Developer has been paid all allowable reimbursable pro-rata charges for the Facilities, whichever occurs first; provided, however, should Developer fail to complete substantial construction of the Facilities within one year from the date of execution of this Agreement, this Agreement shall terminate. EXECUTED this the __ day of ,2004. "CITY" CITY OF DENTON, TEXAS By: Michael A. Conduff, City Manager ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY "DEVELOPER" QUAIL CREEK NORTH, LTD. ATTESTED BY: By: APPROVED AS TO LEGAL FORM: By: S:\Our Documents\Contracts\04\Water Main Pro-Rata Agrmt-Quail Creek Apts-2004.doc 4 Exhibit I Creek Vicini~ Map SITE E DISCLAIMER 3his data has been compiled for the City o~ DarVon. Various official and unofficial sources were used to gather this information. Every efl'or~ was made to ensure the accuracy of this data, however, no guarantee is given or implied as to the accuracy of said dat~ 18/24/2883 li:19 9402708701 LLANO UTILITY PAGE 82/02 LLANO UTILITY SERVICES, INC. 3501 F.M. 2181 * Suite 245 * Corinth, Texas 76205 (940)270-8700 * Fax (940)270-8701 OFFSITE BREAKDOWN Page: 1 of 1 Prqieet: QUAIL CREEK APARTMENTS Date: 10/23/03 C1TY OF DENTON, TEXAS By: Cody Stovall Jcl #: .......... ,. , ::~;d:ig~;:!:~!:!~i:p'~;q:~q:p!:i:i~!;h~:~;~:~:~:;~;'';~:!:!:~:~;i:~:~!~:~!;!~.;~i:.~::::.:::~;::~i~:~~ . . . ;;: ~ SANITARY SEWER .. i ... '4' DIAME:rER MANHOLE ' 9 EA $" 1,775~00 $15,975.03' - _~ ___ I5" ~'1~R~35 PvC SEWER PIP'~ .853 LF $ 27.00 $23,031.00 - '~. 12" SDR-35 PVC SEWER PIPE 527 LF $ 26.00 ~i3,702.00 ' 14. 10" SDR-35 PVC SEWER J>IPE 1000 LF' $ 21.00 $21,000.00 5. 8" SDR-35 PVC SEWER PIPE 905 LF $ 17.25"" $15,611.25 6. CONNEc"r TO EXISTING 1 EA $ 1,175.00 $1,175.00 7. SEWER-i-ESTING . 3285 LF $ ' 0.85 $2,792.25 8. TRENCH SAFETY '" 3285 LF ' $ 0.30 $985.50 ...... SUBTOTAL SANi'-FARY SEWER '" $94,272.0~} WA'i.~R ...... .1. CAST IRON'J~H~iNO~"' 0.5 TN $ 2,200.00 $1,100.00 2. 12"OAiE~.ALVE '" 4 EA $ 1,425.00 $5,700Jb0 3. 12" DRr4~I PVC wAileR PIPE 1925 L~ $ 2;4:'50 $47,16230 4. INSTALL 13_', PvC THROUGH SLEEVE 250 LF $ ~5'.00 '$3,000.0~ -- _5: 8" BoRE 40 LF $ '175,00 $7,000.00 _6: C0IqNF. CT TO E~[STING 1 EA $ ],'100.00 $1,~00.00 ' -- 7. WA'flgR 'I'ESTJ)qG 1925 L[3' $ ~J'.25 $481.25 8~. Ti~NCH SAFETY .... 1925 :F $" 0.15 $588.75 sUBTOTAL.. ~FATER $65,$32.50 _ SUBTOTAL'SANITARY SEWER SUBTOTAL WATER .... $94,272,00 ..... $65,832.50 GRAN~ TOTAL " .... ..$160,104.50 . NOTE:. PLEASE CALL IF YOU HAVE ANY QUESTIONS. Project Manager/Estimator Direct: 940-270-5703 Cell: 214-636-3468 Email: cstovall~Ilan outility.com EXHIBIT III WATER SEWER Developers Cost $ 15% for Engineering $ 65,832.50 9,874.88 Total $ 75,707.38 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Water Utilities ~.1 Howard Martin, 349-8437 ~ SUBJECT Consider adoption of an Ordinance of the City Council of DeNon, Texas authorizing the City Manager to execute a Sewer Main Pro-rata Reimbursement Agreement between the City of DeNon and Quail Creek North, Ltd. for reimbursemem of the costs of building a sewer main, through pro-rata charges paid to the city; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. BACKGROUND The developer, Quail Creek North, Ltd., has constructed Quail Creek Apartmems on Quail Creek Road near Brinker. (Exhibit 1) Quail Creek North, Ltd. has installed 8-inch, 10-inch, 12-inch, and 15-inch diameter off-site sewer. The offsite sewer main shall be subject to pro-rata reimbursemem in accordance with the agreemems (Exhibit 3) and DeNon Developmem Code 35.21.10.1. The cost of the design, construction and installation of the sewer facilities subject to pro-rata reimbursemem is one hundred eight thousand four hundred twelve dollars and eighty ceres ($108,412.80) or thirty three dollars ($33.00) per linear foot for the three thousand two hundred eighty five (3,285) linear feet of off-site facilities. The City will transfer to the developer pro-rata charges collected for a period of 20 years from the date facilities are accepted by the City. However, the City will not transfer or reimburse the developer funds in excess of the certified cost of the facilities. RECOMMENDATION Staff recommends approval of the Sewer Main Pro-rata Agreement with Quail Creek North, Ltd. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented to the Public Utilities Board at their July 12, 2004 meeting. The item was approved unanimously by a vote of 7 to 0. FISCAL INFORMATION Any customer connecting to the sewer line will pay pro rata charges based on a per-frontage-foot basis. Water Pro Rata $33.00 per linear foot EXHIBITS 1. Map 2. Ordinance 3. Agreement 4. PUB Minutes Prepared by: Respectfully submitted: Jim Coulter Director of Water Utilities Kevin Roberts, P.E. Sr. Engineer, Development Review Exhibit I Creek Vicini~ Map SITE E DISCLAIMER 3his data has been compiled for the City o~ DarVon. Various official and unofficial sources were used to gather this information. Every efl'or~ was made to ensure the accuracy of this data, however, no guarantee is given or implied as to the accuracy of said dat~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES July 12, 2004 DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 12, 2004, at 9:00 a.m. in the Service Cemer Training Room, City of Demon Service Cemer, 901-A Texas Street, Denton, Texas. PRESENT: John Baines, Bill Cheek, Yolanda Guzman, George Hopkins, Charldean Newell, Dick Smith and Don White EX OFFICIO MEMBERS Howard Martin, ACM/Utilities EXCUSED: The Public Utilities Board convened into Open Session at 9:00 a.m. CONSENT AGENDA: 1) Consider approval of Bid #3172 from Powell Electrical Manufacturing Company, Houston, Texas, to provide two complete and fully functional substation bus duct replacements for DME personnel to install at the Hickory Substation in the lump-sum amount of $27,829. 2) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Mar-Properties, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 3) Consider approval of a Water Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a water main, through pro-rata charges paid to the city. 4) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and Quail Creek North, Ltd. for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. 5) Consider approval of a Sewer Main Pro-rata Reimbursement Agreement between the City of Denton and the Denton Independent School District for reimbursement of the costs of building a sewer main, through pro-rata charges paid to the city. Board Member George Hopkins moved to approve Consent Agenda Items #1-#5, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. Page 1 of 1 EXHIBIT 4 ORDINANCE NO. 2004- AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. FOR REIMBURSEMENT OF THE COSTS OF BUILDING A SEWER MAIN, THROUGH PRO-RATA CHARGES PAID TO THE CITY; AUTHORIZING THE TRANSFER OF FUNDS PURSUANT TO THE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas requires that the development owned by Quail Creek North, Ltd. ("Developer") commonly referred to as that real property described as the "Quail Creek Apartments" (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction; and said Developer is required to provide such real property with adequate sewer service by designing, constructing, and installing a sewer main; and WHEREAS, the City of Denton, Texas may lawfully reimburse the Developer for the costs of the sewer main installation by the Developer based upon pro-rata charges paid to the City by persons connecting to the sewer main pursuant to the Denton Development Code, Subchapter 35.21.10.1 and .2; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is authorized to execute a Sewer Main Pro-Rata Reimbursement Agreement Between the City of Denton, Texas and Quail Creek North, Ltd. (the "Agreement") to provide for the pro-rata reimbursement for the design, construction, and installation of 3,285 linear feet of 8-inch, 10-inch, 12-inch, and 15-inch diameter off-site sewer mains, substantially in the form of the attached Agreement, which is incorporated herewith by reference and made a part of this Ordinance for all purposes; subject however, to Developer, Quail Creek North, Ltd. entering into a Development Contract with the City of Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.2. SECTION 2. That the City Manager is hereby authorized to make such expenditures and transfers of funds under such conditions as are set forth in the attached Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Documents\Ordinances\04\Sewer Main Pro-Rata Reimb Oral-Quail Creek Apartments-2004.doc THE STATE OF TEXAS § COUNTY OF DENTON § SEWER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND QUAIL CREEK NORTH, LTD. WHEREAS, Quail Creek North, Ltd. ("Developer"), whose business address is 5400 LBJ Freeway, Dallas, Texas 75240, wishes to develop and improve certain real property named the "Quail Creek Apartments" (as shown in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction, and is required to provide such property with adequate sewer service by designing, constructing and installing a sewer main; and WHEREAS, the City of Demon, Texas ("City"), a municipal corporation, located at 215 East McKinney Street, Denton, Texas 76201, in accordance with its ordinances may reimburse Developer for the costs of the sewer main installed by the Developer based upon pro-rata charges paid to the City by persons subsequently connecting to the sewer main; NOW, THEREFORE, in consideration of their mutual promises, Developer and City agree as follows: Developer has designed, installed and constructed, 8-inch, 10-inch, 12-inch, and 15-inch diameter off-site sewer mains and all necessary appurtenances thereto, extending a total distance of approximately 3,285 feet ("Facilities"), located as shown on Exhibit II, attached hereto and incorporated herein by reference. This off-site sewer main shall be subject to pro-rata reimbursement in accordance with this Agreement. Prior to beginning construction of Facilities, Developer shall obtain at Developer's sole cost and expense, all necessary permits, licenses, and easements. If easements are needed, the deeds therefore obtained by Developer shall be reviewed and approved as to form and substance by City prior to the beginning of construction. If Developer is unable to acquire needed easements, Developer shall provide City with any requested documentation of efforts to obtain such easements, including evidence of negotiations and reasonable offers made to the affected property owners. Any easements for the Facilities obtained by the Developer shall be assigned to City, if not taken in City's name, prior to acceptance of the Facilities; and Developer warrants clear title to such easements and will defend City against any adverse claim made against such title. 3. The estimated cost of the design, construction, and installation of the Facilities subject to pro-rata reimbursement is: EXHIBIT 3 $108,412.80 (Developer's cost) or $33.00 per linear foot for 3,285 feet of off-site Facilities See attached Exhibit III for cost breakdown. Within thirty (30) days of the acceptance of the Facilities by the City, Developer shall submit to the City's Assistant City Manager of Utilities the actual cost of the Facilities. To determine the actual cost of the Facilities, the City shall have the right to inspect any and all records of Developer, his agents, employees, contractors, or subcontractors and shall have the right to require Developer to submit any necessary information, documents, invoices, receipts or other records to verify the actual cost of the Facilities to the City. The Assistant City Manager of Utilities shall review and verify the actual cost of the Facilities and certify the allowable reimbursable cost and the date the Facilities were accepted, which certificate shall be attached hereto and be incorporated herein by reference. After title to the Facilities have vested in the City, the City shall collect a pro-rata charge from any person connecting to the off-site Facilities in accordance with the provisions of the Code of Ordinances of the City. Within thirty (30) days of the receipt of pro-rata charges, the City shall transfer the applicable amount collected to Developer. o The City shall transfer to Developer pro-rata charges as are collected for a period of time for twenty (20) years from the date Facilities are accepted by City, as specified herein, but shall not transfer or reimburse to the Developer any amount of funds in excess of the certified cost of the Facilities, as determined by the City in paragraph 4 above. 7. The parties hereto recognize that the Facilities subject to this Agreement are necessary to provide sewer service to the Developer's property. The pro-rata charges to be collected by the City and transferred to Developer in accordance with the ordinances of the City and this Agreement are intended to reimburse the Developer for the Developer's cost of the Facilities by requiring persons connecting who benefit thereby, to participate in the cost of the Facilities. This Agreement shall not be considered to impose any obligation or liability upon the City to pay for the Facilities from its general revenues, bond funds or any other revenues it may receive, except for those pro-rata funds received from persons connecting to such Facilities. Should any court of competent jurisdiction determine that all or part of the City's ordinance on which the pro-rata charges to be paid to Developer under this Agreement are based, are found to be unlawful or invalid, the City may cease to charge or collect the pro-rata charges for connection to the Facilities, and will have no further obligations hereunder. 2 10. All notices, payments or communications to be given or made pursuant to this Agreement by the parties hereto, shall be sent to Developer at the business address given above and to the Assistant City Manager of Utilities for the City at the address given above. 11. The Developer shall indemnify and hold the City harmless from any and all claims, damages, loss or liability of any kind whatsoever, by reason of injury to property or person occasioned by any act or omission, neglect or wrongdoing of Developer, its officers, agents, employees, invitees, contractors or other persons with regard to the performance of this Agreement; and Developer will, at its own cost and expense, defend and protect the City against any and all such claims and demands. 12. This instrument embodies the whole agreement of the parties hereto, and there are no promises, terms, conditions or obligations other than those contained herein. This Agreement shall supersede all previous communications, representations or agreements, either verbal or written, between the parties hereto. 13. Developer shall not assign this Agreement without the express prior written consent of the City. 14. Any and all suits for any breach of this Agreement, or any other suit pertaining to or arising out of this Agreement, shall be brought and maintained in the court of competent jurisdiction in Denton County, Texas. 15. This Agreement shall be effective for a period of twenty (20) years from the date Facilities are accepted by the City, or until Developer has been paid all allowable reimbursable pro-rata charges for the Facilities, whichever occurs first; provided, however, should Developer fail to complete substantial construction of the Facilities within one year from the date of execution of this Agreement, this Agreement shall terminate. EXECUTED this the day of ,2004. "CITY" CITY OF DENTON, TEXAS By: Michael A. Conduff, City Manager ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY "DEVELOPER" QUAIL CREEK NORTH, LTD. By: ATTESTED BM / By:t. ~'[ e- o,'~ APPROVED AS TO LEGAL FORM: By: ~P)A/.~ S:\Our Documents\Contracts\04\Sewer Main Pro-Rata Agrmt-Quail Creek Apts-2004.doc Exhibit I Creek Vicini~ Map SITE E DISCLAIMER 3his data has been compiled for the City o~ DarVon. Various official and unofficial sources were used to gather this information. Every efl'or~ was made to ensure the accuracy of this data, however, no guarantee is given or implied as to the accuracy of said dat~ LLI / / 10f24/2003 11:19 9402708701 L~ANO UTILITY PAGE 02/02 LLANO UTILITY SERVICES, INC. 3501 F.M. 2181 * Suite 245 * Corinth, Texas 76205 (940)270-8700 * Fax (940)270~8701 OFFSITE BRIEAKDO'WN Page: 1 of ~ Project: QUAIL CREEK APARTMENTS Date: 10/23/03 CITY OF DENTON, TEXAS By: Cody Stovall / Job #: SANITARY SEV~ER 1 .. 4' DIAME [ER 'MANHOLE ~ EA $' 1,775.00 $15,~75.00 2 i5" SDR-3~ PvC SEWER pI/:;E 853 LF $ 27.00 $23,~31,00 40_ 12" SDR-35 PV~"S'EWER PIPE 527 LF $ 26.00 ~13,702.00: 4. 10" SDR-35 PVC SEWER'PIPE 1000 LF $ 21.00 $21,000.00 5. 8" SDR-35 PVC SEWER PIPE 905 L1~' $ 17.25 $15,6i 1.25 6. CONNEC;I' TO EXISTING 1 EA $ t,175.00. $1,175.00 7. SEWER 'I:~STING ... 3285 L/* $ 0.85 $2,792.25 8. TRENCH 3288 S 0.30 $985.50 ~JBT~T .AL SAlqITARY SEVeER .... $94,272.00' WATER 1. CAST IRoN~'ITrlNG8 0.5 .TN $ 2~5~00-00 $1,100.0b 2. 12" G.A.i'E,JtALVE ' 4 EA $ 1,425.00 $5,700.00 3. 12" DR~ PVC WATER PIPE 1925 LF $ 24.50$47,162.50.- 4. INST3~LL 1~2" PVC THROUGH _SLEEVE"' 250 LF $ 12.00 $3,000.00 _5: 8" BORE 40 LF $ '175,00 Si,000.00 ' _6._ C~.NNECT TO EXISTING 1 EA $ l,t 00.00 $1,160.00 - 7. WATER 'fESTJ-NG "' 1925 LF $ '0.25 $48 !.55 :8. '.['KENCH SAFETy_.. "" 1925' LF $ 0.15 '$588.75 ... SUBTOTAL WATER $65,832,50 - SUBTOTAL'SANITARy. iSEWER $94,272.00 :S.UBTOTAL WATER ... ' .... $65,832.50 . GRAND TOTAL $1160,104,50 NOTE:. PLEASE CALL IF YOU .HAVE ANY QUESTIONS. t oo¥ Project Manager/Estimator Direct: 940-270-5703 Ceil: 214-636.3468 Email: cstovall~llanoutility.com EXHIBIT 3 Sanitary Sewer Developers Cost 15% for engineering $ 94,272.00 $ 14,140.80 Total $ 108,412.80 CITY OF DENTON CITY COUNCIL MINUTES July 16, 2004 After determining that a quorum was present, the City Council convened in a Work Session on Friday, July 16, 2004 at 8:00 a.m. in the Council Work Session Room. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, Redmon and Thomson. ABSENT: None 1. The Council held a discussion and gave staff direction regarding nominations to the city's boards and commissions. Mayor Brock reviewed the nominations Council had submitted and the vacancies that still existed. Additional nominations were suggested with Council approval to be considered at the July 20th regular agenda. With no further business, the meeting was adjourned at 9:10 a.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES July 20, 2004 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, July 20, 2004 at 4:00 p.m. in the Council Work Session Room at City Hall: PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, Redmon and Thomson ABSENT: None 1. The Council received a report, held a discussion, and gave staff direction regarding the Bond Election process. Kathy DuBose, Assistant City Manager, stated that staff was putting together the Capital Improvement Program and the Bond Election was scheduled for February 5. Tentative schedule was in the backup. She stated that the Council would make appointments to the committee at the August 3 council meeting. Each council member would make seven nominations. The committee would have 50 members. Council Member Mulroy stated that the chair of the committee should run the meetings of the committee and not the Council. Montgomery asked if the committee members gave a list of items for the Capital Improvement Program to staff. DuBose stated that they had not in the past but could. 2. The Council received a report, held a discussion and gave staff direction regarding a proposal to conduct a mobility study for the Denia Neighborhood. Kelly Carpenter, Director of Planning and Development, stated that the Denia Neighborhood Plan was adopted in 1999. During a recent meeting of the Denia Neighborhood Association, a request was made for a mobility study of the Denia neighborhood. She stated that the Engineering Department requested a proposal from C&P Engineering to undertake a mobility study of three scenarios with the neighborhood. The scenarios proposed were: to evaluate the existing streets, existing access system and existing traffic volumes; utilize the current traffic volumes identified and evaluate access and street system presented in the currently approved mobility plan; and to evaluate the future conditions based on traffic volumes generated and distributed throughout the Denia neighborhood to account for the full build out of the study area. These traffic volumes would then be compared to the City's Mobility Plan to identify any inadequacies and recommend changes to address those inadequacies. The proposal was for $11,525 and currently no funding source had been identified. Mayor Brock stated that a citizen wanted to speak to the Council regarding this item. Montgomery motioned, McNeill seconded to allow the citizen to speak. General consensus of the Council was to allow the citizen to speak. Linnie McAdams stated that the neighborhood wanted the traffic study to include traffic coming up Bonnie Brae. City of DeNon City Council Minutes July 20, 2004 Page 2 CarpeNer advised that Bonnie Brae would be included in the study. Council directed staff to ideNify funding to complete the mobility study. 3. The Council received a report, held a discussion and gave staff direction regarding code enforcemeN procedures. Captain Joanie Housewright stated that the appearance of the city was primarily dependent upon the policies that regulated the development of properties and the policies that regulated the maiNenance of properties. The developmeN of property was regulated almost exclusively by the Development Code through the Planning Department and Building Inspections Department. The maiNenance of property was regulated by a variety of laws and ordinances with enforcement through the Code Enforcement Department and Building Inspections Department. Housewright reviewed curreN Code EnforcemeN procedures for violations involving high grass and weeds; trash and debris; junked vehicles; violations of regulations related to signs and zoning or land use; view obstructions; complaints regarding cars for sale on parking lots; car dealerships where vehicles are parked on sidewalks; solid waste complains; complains of neighborhoods blowing grass clippings into the drainage system; and stagnant water, especially in private pools. She stated that staff had reviewed the ordinances and procedures of other cities and State law and recommended revisions to the ordinances. The recommendation from staff regarding legislation for high grass and weeds and trash and debris included: abate, without notice, weeds higher than 48 inches; property of 20 acres or less be mowed in its entirety rather than the 100 feet required by the Denton ordinance; revisions to the definition of garbage, impure or unwholesome matter, junk, and nuisance; increase the administrative fee for the abatement process to $125.00. The recommendation from staff regarding legislation for junked vehicles included: a State law revision that changed the length of time for a junked vehicle to be inoperable to thirty days; revisions to the definition of an inoperable motor vehicle, inoperable vehicle, and junked vehicle; requiremeN that junked vehicles be screened by an opaque fence or enclosed in a building. Housewright briefly reviewed the Ft. Worth Code Rangers voluNeer program. Mayor Brock suggested that staff prepare a chart that showed recommended changes and current ordinances and place that on a future work session for discussion. 4. Staff responded to requests for clarification of conseN agenda items listed on the conseN agenda for the regular meeting of July 20, 2004. Regular Meeting of the City of DeNon City Council on Tuesday, July 20, 2004 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. City of Demon City Council Minutes July 20, 2004 Page 3 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamation/awards for this meeting. B. July Yard-of-the-Month Awards Mayor Brock presented the July Yard-of-the-Month awards to: Bill and Donna Smith Ed and Nancy Gibson Clim and Elizabeth Smith Bill, Robin and Griffin Schofield Javier Subias Larry and Beth Manning-Water Smart Yard Peter L. Holland, D.D.S. and Steven Alspach, D.D.S., M.S.-Business C. Recognition of staff accomplishments City Manager Conduffpresemed staff accomplishments to the Council and audience. 3. CITIZENS REPORTS A. The Council received citizen reports from the following: 1. Tom Sprabeary regarding increasing taxi rates. Mr. Sprabeary was not present. 2. Gary Naderi regarding increase in taxi rates. Mr. Naderi stated that he owned Ace Cab Company and requested that the Council increase the fares to $2.00. He was also requesting that the City change the ordinance to allow cabs to be 7 years old versus 5 years old. 3. Nell Yeldell regarding taxes and legal description of property. Ms. Yeldell stated that she was concerned about property taxes. She had been to the Denton Appraisal District to protest her taxes. She stated that she had purchased a different piece of property and the property description was listed as Block 3 and it should be Block 5 and warned it changed but no one would change it. 4. Willie Hudspeth regarding minority hiring and the tree ordinance. Mr. Hudspeth was concerned that there was no minority representation in the Fire Department. 5. Aron Frydberg regarding the sign code. City of Demon City Council Minutes July 20, 2004 Page 4 Mr. Frydberg was not present. 6. Carolyn Phillips regarding umimely liens and the black elderly. Ms. Phillips was not present. 7. Bob Clifton regarding various city issues. Mr. Clifton was not present. 8. Peternia Washington regarding more'~lucl~' for the'°oucl~'. Ms. Washington was not present. 9. Militza Bishop regarding TWU apartment development. Ms. Bishop expressed concerns about traffic and safety regarding the TWU apartmem developmem. She requested that a traffic study be done for Oakland and Austin. 10. Dessie Goodson regarding'¥esponsibility'. Ms. Goodson stated that she was upset because she had not received signed copies she had requested of items 6F, 6G, and 6H from the June 15 City Council meeting. 4. CONSENT AGENDA Montgomery motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions with a correction to item O to remove the nomination of Lovie Price to the Human Services Advisory Committee. On roll vote, Kamp "ayd', McNeill "ayd', Montgomery "ayd', Mulroy "ayd', Redmon "ayd', Thomson "ayd' and Mayor Brock 'hyd'. Motion carried unanimously. 2004-182-An ordinance amending Ordinance No. 2001-193 and Section 2-29 of the City Code relating to Rules of Procedure for the City Council of the City of Demon, Texas, and all amending ordinances and repealing and consolidating Ordinances 2001-204, 2002-018, 2003-235, 2003-373, 2004-014 and 2004-033; providing for recording of attendance at Council meetings and setting work session times; providing a severability clause; and declaring an effective date. R2004-034-A resolution approving the fiscal year 2005 Financial Plan of the Denco Area 9-1-1 District, pursuant to the Texas Health and Safety Code; Chapter 772, as amended; and providing an effective date. 2004-183-An ordinance of the City of Demon, Texas updating Impact Fees by amending Chapter 26, 'Utilities',' Section 26-210 through 26-232 of the City of Demon Code of Ordinances; adopting revised Land Use Assumptions and Capital Improvements Plans for Water and Wastewater Impact Fees; establishing new service areas for Wastewater Impact Fees; establishing new maximum impact fees per service unit and impact fees to be collected; creating schedules for the City of Demon City Council Minutes July 20, 2004 Page 5 assessment and collection of impact fees; amending the definition of 'hew development' comained in Section 26-213(9); adding the definition of'~ttility connectiorl' to Section 26-213(14); adding clarifying language to Section 26- 221(a) and (h); adding Section 26-221(i) which clarifies the powers of the Director respecting the enforcement, assessment, computation or collection of impact fees; revising procedures for administering impact fees; repealing conflicting ordinances and resolutions; providing a severability clause; providing for a penalty not to exceed $2,000 for each violation thereof; and providing an effective date. Do An exception to the Noise Ordinance for the purpose of Jagoe-Public, a hot mix asphalt plant need to operate between the hours of 7:00 p.m. and 6:00 a.m., Sundays through Thursdays, for 28 to 35 working days between July 21st and November 18~h, 2004. mo 2004-184-An ordinance of the City of Demon authorizing and ratifying an agreement between the City of Denton, Texas and the Juneteenth Committee to support the 2004 Juneteenth Celebration; providing for an effective date. Fo 2004-185-An ordinance approving an Interlocal Cooperative Agreement between the City of Demon & Demon County approving a project for completion of roadway pavement improvements on Long Road from the Denton Independent School District's western property line to Stuart Road adjacent to and serving the new Denton Athletic Facility/Advanced Career and Technology Center; and providing for an effective date. Go 2004-186-An ordinance of the City of Demon, Texas amending the provisions of Chapter 18 relating to motor vehicles and traffic by amending Section 18-107 to allow for disabled parking signs to be posted on a wall or on a post; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. Ho 2004-187-An ordinance of the City of Demon, Texas amending Section 18-13 of the Code of Ordinances of the City of Demon by prohibiting the operation of bicycles, motor assisted scooters, and neighborhood electric devices or any other similar vehicle or toy devices on sidewalks in the area surrounding the City Square; providing that this ordinance does not apply to any mobility impaired individual using a motorized device; providing for a severability clause; providing a repealing clause; providing for a penalty not to exceed two hundred dollars for a violation of this ordinance; providing for publication; and providing for an effective date. 2004-188- An ordinance authorizing the Mayor to execute an Interlocal Cooperation Agreemem between the City of Demon 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 agreement; and providing for an effective date. City of DeNon City Council Minutes July 20, 2004 Page 6 Jo 2004-189-An ordinance approving a Real Estate Contract between Deborah J. Wrenn as seller and the City of DeNon, Texas as purchaser for a tract of land commonly known as 1110 E. Sycamore located in the Cisco Survey, Abstract 1184 in the City of Denton, Denton County, Texas; authorizing the expenditure of funds and providing an effective date. Ko 2004-190-An ordinance authorizing the City Manager or his designee to execute a Wireline Crossing Agreemem with Union Pacific Railroad Company for an aerial wireline crossing located at Mile Post 718.38, Choctaw Subdivision, City of Denton, Denton County, Texas; authorizing the expenditure of funds, therefor; and providing an effective date. Lo 2004-191-An ordinance of the City of Denton, Texas, authorizing the Mayor to execute an Interlocal Cooperation Agreement between the City of Denton, Texas and the Denton Independent School District regarding the use of the Right of Way for DISD Fiber Optic System; and providing an effective date. Mo 2004-192-An ordinance on second reading to volumarily annex 63.32 acres of land generally located west of Swisher Road, and north of Edwards Road in the eastern section of the City of DeNon Extraterritorial Jurisdiction (ET J). The Planning and Zoning Commission recommends approval (4-0). (Longhorn Development Annexation, AO4-OOOD No R2004-035-A resolution of the City of DeNon, Texas, approving the acquisition of real property by the Denton County Central Appraisal District commonly known as 3901 Morse Street, Denton, Texas 76208; and providing an effective date. Oo Approved appoimmems to the following boards and commissions: 1. Airport Advisory Board-Don Smith, Larry Luce 2. Animal Shelter Advisory Committee-Kody MacKenna, Marilyn Wells, Joella Orr, Curtis Martin 3. Community Developmem Advisory Committee- LaNelle Winn, Ed Touraine, Sandra Benavides, Ron Aldridge 4. Construction Advisory and Appeals Board-Alan Nelson 5. Historic Landmark Commission- Randall Boyd, Darlene Mullenweg, Peggy Capps 6. Human Services Advisory Committee-Teri Rheault 7. Library Board-Lori Wolfe 8. Parks, Recreation and Beautification Board-Chuck Smith, Patrice Lyke, Geri Aschenbrenner 9. Planning and Zoning Commission- DeCarlo Noble, Vicki Holt, Mary Thibodeaux 10. Public Utilities Board-Phil Gallivan 11. TMPA-George Hopkins 12. Traffic Safety Commission-Connie Baker, Lelia Howell 13. Zoning Board of Adjustment-Cliff Reding, Cecil Adkins City of DeNon City Council Minutes July 20, 2004 Page 7 2004-193- An ordinance accepting competitive bids and awarding an annual contract for the purchase of EMS Supplies for Denton Fire Department; providing for the expenditure of funds therefor; and providing an effective date (Bid 3165- EMS Supplies awarded to the lowest responsible bidder for each item in the estimated amoum of $120,000). 2004-194-An ordinance accepting competitive bids and awarding an annual comract for the purchase of Overhead 13.2 kV Capacitor Bank Assemblies for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 3177- Overhead 13.2 kV Capacitor Bank Assemblies awarded to Wesco Distribution in the estimated amoum of $38,000). 2004-195-An ordinance accepting competitive bids and awarding a comract for the purchase of printing, typesetting, distribution and advertisement sales for the Parks and Recreation Departmenfs PLAY Seasonal Brochure; providing for the expenditure of funds therefor; and providing an effective date (Bid 3186-Annual Comract for P.A.R.D. Seasonal Catalogs awarded to the lowest bidder for each section in the gross amount of $41,595 less $12,000 (Estimated Ad Revenue) for a net estimated cost of $29,595). 2004-196-An ordinance accepting competitive bids and awarding a comract for the purchase of two 15 kV Bus Duct replacements for the Hickory Street Substation; providing for the expenditure of funds therefor; and providing an effective date (Bid 3172 -Hickory Substation Bus Duct Replacemems awarded to Powell Electrical Manufacturing Company in the amoum of $27,829). 2004-197-An ordinance accepting competitive bids and awarding a comract for the purchase of a hydraulic excavator for the Water Distribution Department; providing for the expenditure of funds therefor; and providing an effective date (Bid 3178-Hydraulic Excavator awarded to Continemal Equipmem Company L.P. in the amoum of $131,463.29). Approved the minutes of June 1, June 8, and June 15 Regular Meetings and June 15 Luncheon. 5. PUBLIC HEARINGS A. The Council held a public hearing and consider adoption of an ordinance rezoning approximately 19 acres from the Neighborhood Residemial 4 (NR-4) zoning district to the Neighborhood Residemial Mixed Use 12 (NRMU-12) zoning district, and approximately 63 acres to the Neighborhood Residemial Mixed Use 12 (NRMU-12) zoning district. The property was generally located west of Swisher Road, and approximately 1,500 feet north of Edwards Road. The Planning and Zoning Commission recommended approval (6-0). (Z04-0002, Longhorn) Kelly Carpemer, Director of Planning and Development, stated that a multi-family development with a golf course was proposed. The multi-family use was permitted in the NRMU-12 zoning district, however the golf course was classified as outdoor recreation and required approval of a Specific Use Permit in addition to the zoning. Opposition was 7.9%. City of Demon City Council Minutes July 20, 2004 Page 8 The Mayor opened the public hearing. Mark Webb, representing One Longhorn Land I, LP, spoke in support. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-198 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR THE ZONING OF AN APPROXIMATE 82 ACRE TRACT OR PARCEL OF LAND TO THE NEIGHBORHOOD RESiDENTiAL MIXED USE 12 (NRMU-12) ZONING DISTRICT, APPROXIMATELY 25 ACRES OF WHICH IS CURRENTLY ZONED NEIGHBORHOOD RESiDENTiAL 4 (NR-4) AND APPROXIMATELY 63 ACRES OF WHICH iS CURRENTLY ZONED NEIGHBORHOOD RESiDENTiAL 4 (NR-4) INTO THE CITY OF DENTON, SAID 88 ACRE TRACT IS GENERALLY LOCATED IN THE GIDEON SURVEY, ABSTRACT NO. 1330, WEST OF SWISHER ROAD, AND APPROXIMATELY 1,500 FEET NORTH OF EDWARDS ROAD 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. (Z04-0002) Kamp motioned, McNeill seconded to adopt the ordinance. On roll vote, Kamp"ayd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd' and Mayor Brock'hyd'. Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 0.56 acres from Neighborhood Residemial 4 (NR-4) zoning district to Neighborhood Residemial Mixed Use (NRMU) zoning district. The property was generally located south of McKinney Street and approximately 900 feet west of Loop 288. The Planning and Zoning Commission recommended approval (6-0). (Z04-0019, Church's Chicken) Larry Reichhart, Assistant Director of Planning and Development, stated that this application was associated with an application for the Special Use Permit (SUP) for a drive-through facility, and a variance request from driveway separation requirements. The Planning and Zoning Commission approved the driveway separation variance on June 23, 2004. No property owners within 200 ft. of the property had responded. He stated that the proposed zoning change was compatible with neighboring zoning designations. The Mayor opened the public hearing. Karen Mitchell, Mitchell Planning Group, spoke in support of this item and the next item. The Mayor closed the public hearing. The following ordinance was considered: City of Demon City Council Minutes July 20, 2004 Page 9 NO. 2004-199 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZON1NG CHANGE FROM NEIGHBORHOOD RESIDENTIAL 4 (NR-4) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR APPROXIMATELY 0.56 ACRE OF LAND LOCATED GENERALLY SOUTH OF MCKINNEY STREET AND APPROXIMATELY 900 FEET WEST OF LOOP 288 AND LEGALLY DESCRIBED AS A PORTION OF TRACT 66 OF THE M. YOACHUM SURVEY IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY 1N THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z04-0019) Redmon motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp"ayd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd' and Mayor Brock'hyd'. Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance for a Specific Use Permit (SUP) for a drive-through facility for Church's Chicken. The property was generally located south of McKinney Street and approximately 900 feet west of Loop 288. The Planning and Zoning Commission recommended approval (6-0). (Z04-0020, Church's Chicken) Larry Reichhart, Assistant Director of Planning and Development, stated that the restaurant was a permitted use in the proposed NRMU zoning district, but a drive-through facility required a Specific Use Permit. He stated that staff recommended approval of the SUP for the drive- through facility, and site plan approval on the request and location of the drive-through facility with conditions: the drive-through facility shall be as provided in the site plan; and an access easement or the connection between the property and the driveway to the east must be provided prior to final plat approval. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-200 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT FOR A DRIVE-THROUGH FACILITY ON APPROXIMATELY 0.56 ACRE OF LAND GENERALLY LOCATED SOUTH OF MCKINNEY STREET AND APPROXIMATELY 900 FEET WEST OF LOOP 288, WITHIN A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (Z04-0020) City of DeNon City Council Minutes July 20, 2004 Page 10 Kamp motioned, Redmon seconded to adopt the ordinance. On roll vote, Kamp"ayd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd' and Mayor Brock'hyd'. Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 1.25 acres from Dowmown Residemial 1 (DR-l) zoning district to Dowmown Residemial 2 (DR-2) zoning district. The property was generally located southeast of Underwood Street at Avenue A. The Planning and Zoning Commission recommended approval (6-0). (Z04-0022, Underwood and Avenue A) Larry Reichhart, Assistant Director of Planning and Development, stated that multi-family use was proposed. Staff had received three written responses expressing opposition, which was 13.5%. He stated that changing the zoning from DR-1 to DR-2 would increase the density from 8 dwelling units to 30 per acre, and for this particular site would allow a maximum developmem of approximately 37.5 units (75 bedrooms). The Mayor opened the public hearing. The applicant, Scott Brown, spoke in support. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-201 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZON1NG 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 1.25 ACRES OF LAND LOCATED GENERALLY SOUTH OF UNDERWOOD STREET AT AVENUE A AND LEGALLY DESCRIBED AS TRACT 642, 643, 644, AND 645 OF THE E. PUCHALSKI SURVEY 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. (Z04-0022) Thomson motioned, Redmon seconded to adopt the ordinance. On roll vote, Kamp'hyd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson'hyd' and Mayor Brock'By'. Motion carried 6-1. E. The Council held a public hearing and considered adoption of an ordinance regarding a Specific Use Permit for a drive-through facility. The approximately 0.72 acre property was in a Neighborhood Residemial Mixed Use (NRMU) zoning district and was generally located on the east side of Lillian Miller Parkway, approximately 170 feet north of Wind River Lane and approximately 100 feet west of Lake Fork Circle. The Planning and Zoning Commission recommended approval (6-0). (Z04-0021, Dry Clean Super Center) City of DeNon City Council Minutes July 20, 2004 Page 11 Larry Reichhart, Assistant Director of Planning and Development, stated that the Specific Use Permit was required for all drive-through uses. Staff had received three written responses in opposition to the request, which was 11%. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Sid Hollingsworth, 4725 Nall Rd, Dallas, in support Ray Ellis, 4725 Nall Rd, Dallas, in support Mary Brower, 3205 Meredith Lane, in support Eddy Lymon, 2405 Great Bear Lane, in support Marty Rivers, 2000 Whitefish Court, in support Clemence Rawley, 1421 Humers Ridge Circle, Vice Homeowner's Association, opposed to additional traffic plans Presidem of Humers Ridge and non-conforming building Commem Cards were received from the following individuals in opposition to the ordinance. Sharon McKee, 1204 Tulane Carolyn Gold, 1413 Humers Ridge Circle Curtis L. Gold, 1413 Humers Ridge Circle Lynn Thompson, 1520 Hunters Ridge Circle The Mayor closed the public hearing. The Mayor re-opened the public hearing. Paul Rawley, 2420 Champlain Lane, spoke regarding a curb cut on Wind River Lane. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-202 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT FOR A DRIVE-THROUGH FACILITY ON APPROXIMATELY 0.72 ACRE OF LAND GENERALLY LOCATED ON THE EAST SIDE OF LILLIAN MILLER PARKWAY, APPROXIMATELY 170 FEET NORTH OF WIND RIVER LANE AND APPROXIMATELY 100 FEET WEST OF LAKE FORK CIRCLE, WITHIN A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (Z04-0021) Thomson motioned, McNeill seconded to adopt the ordinance with the following conditions: increase the height of the proposed six-foot masonry fence to a height of eight feet, architecture City of DeNon City Council Minutes July 20, 2004 Page 12 of structure be consistent with surrounding structures, illuminated sign be recessed into the building, existing live oak trees along fence line be preserved, landscaping resemble existing landscaping on CVS site, stop sign be erected at the exit of the site, safety bollards be located on north side of lot, all signs cease illumination at 10 pm, and parking lot lighting not extend beyond the property line. On roll vote, Kamp"ayd', McNeill"ayd', Momgomery'~my', Mulroy'~my', Redmon"ayd~ Thomson"ayd' and Mayor Brock'~my'. Motion carried 4-3. F. The Council held a public hearing and considered adoption of an ordinance regarding rezoning of approximately 8.3 acres from the Neighborhood Residemial 2 (NR-2) zoning district to an Employmem Cemer Commercial (EC-C) zoning district. The property was generally located on the south side of University Drive, and approximately 900 feet east of Thomas Egan Road. An office and light-manufacturing park was proposed. The Planning and Zoning Commission recommended approval (6-0). (Z04-0023, Shady Creek Business Park) Larry Reichhart, Assistant Director of Planning and Development, stated that the requested zoning change would allow the applicam to develop the property for a medical cemer and retail uses. Staff had received no written responses from property owners within 200 feet of the site. The Mayor opened the public hearing. Allen Bussell, representing the owner, spoke in support. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-203 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF APPROXIMATELY 8.3 ACRES FROM THE NEIGHBORHOOD RESiDENTiAL 2 (NR-2) ZONING DiSTRiCT TO THE EMPLOYMENT CENTER COMMERCIAL (EC-C) ZONING DISTRICT; THE PROPERTY IS GENERALLY LOCATED ON THE SOUTH SIDE OF UNIVERSITY DRIVE, APPROXIMATELY 900 FEET EAST OF THOMAS EGAN ROAD 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. (Z04-0023) Montgomery motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp "ayd', McNeill"ayd; Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd'and Mayor Brock"ayd'. Motion carried unanimously. G. The Council held a public hearing and considered adoption of an ordinance rezoning approximately 30.7 acres from a Neighborhood Residemial 2 (NR-2) zoning district to approximately 6.2 acres of Neighborhood Residemial 4 (NR-4) and 24.5 acres of Neighborhood Residemial 6 (NR-6) zoning districts with an overlay district. The property was generally located at the southwest corner of Hinkle and Windsor intersection. Single-family development was proposed. The Planning and Zoning Commission recommended denial (5-1). NOTE: H SUPERMAJORITY VOTE BY THE COUNCIL IS REQUIRED FOR APPROVAL. (Z04-O017, The Cove at North Lakes) City of Demon City Council Minutes July 20, 2004 Page 13 Larry Reichhart, Assistant Director of Planning and Development, stated that under the proposed zoning of 6.2 acres of NR-4 and 24.5 acres of NR-6 with an overlay zoning designation up to 24 NR-4 lots and 117 NR-6 lots could be developed totaling 141 residential lots. Under the existing NR-2 zoning a maximum of 61 residemial lots could be developed. Staff had received seven responses in opposition from property owners, which represemed 8.2%. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Karen Mitchell, Mitchell Planning Group, in support Allen Bussell, 1621 Amanda Court, in support Commem Cards were received from the following individuals in opposition to the ordinance. Dureen White, 720 Headlee Richard White, 720 Headlee Peggy Gist, 1215 Meadow Ridge Dr. Kay Norman, 1213 Meadow Ridge Arlene Morrison, 624 Headlee Ivy Doak, 518 Northridge Mason Kearby, 601 Magnolia Helen Kearby, 601 Magnolia Terry and Hazel Masten, 402 Magnolia Lee Nahrgang, 506 Northridge Joan Taylor, 1209 Tulane Tom Buckley, 519 Magnolia Betty Nabors, 524 Magnolia Homer Nabors, 524 Magnolia Bess Buckley, 519 Magnolia Mildred Marsh, 717 Headlee Doretha Wilson, 301 Mimosa Cletice Gilley, 1200 Tulane Alice Pockrus, 2500 Hinkle Drive Jean Frank, 12500 Hinkle Drive #1 Judith M. Garbar, 1200 Meadow Ridge Drive Etna Roberson, 1211 Meadow Ridge Charles Wilson, 301 Mimosa Gail Garber, 1200 Meadow Ridge Colleen Briscoe, 507 Magnolia Maurine Petty, 707 Headlee The following individuals spoke during the public hearing: Avon Cline, 714 Mimosa, in opposition Gail Garber, 1200 Meadow Ridge Drive, in opposition Darby Reinke, 701 Northridge, in opposition Kay Selby, 428 Northridge, in opposition Harold Perry, 720 Mimosa, in opposition City of Demon City Council Minutes July 20, 2004 Page 14 Jack Frisby, 405 Magnolia, in opposition Lisa Melby, Administrator at Denton Good Samaritan Village, 2500 Hinkle, concerned about residems, density, and traffic on Hinkle Patrice Frisby, 405 Magnolia, in opposition The Mayor closed the public hearing. The following ordinance was considered: AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 30.7 ACRES FROM NEIGHBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO 6.2 ACRES OF NEIGHBORHOOD RESIDENTIAL 4 (NR-4) AND 24.5 ACRES OF NEIGHBORHOOD RESIDENTIAL 6 (NR-6), WITH AN OVERLAY DISTRICT; SUCH PROPERTY BEING GENERALLY LOCATED AT THE SOUTHWEST CORNER ON WINDSOR DRIVE AND HINKLE STREET INTERSECTION AND LEGALLY DESCRIBED AS TRACT 31 OF THE R. BEAUMONT SURVEY ABSTRACT NUMBER 61 AND TRACTS 54 AND 56 OF THE MEISENHEIMER SURVEY ABSTRACT NUMBER 810 IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; SUCH OVERLAY DISTRICT ESTABLISHES DIFFERENT REGULATIONS THAN WOULD NORMALLY BE PERMITTED IN THE NR-6 DISTRICT, INCLUDING THE REDUCTION OF THE NUMBER OF PERMITTED RESIDENTIAL LOTS, THE INCREASING OF BUILDING SETBACKS, AND LIMITATIONS OF PERMITTED LAND USES; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z04-0017) Thomson motioned to deny the zoning request. McNeill motioned to approve zoning of NR-4 for the emire piece of property. Motion died for lack of a second. Montgomery seconded the original motion. On roll vote, Kamp"ayd', McNeill"ayd', Montgomery 'hyd', Mulroy "ayd', Redmon "ayd', Thomson "ayd' and Mayor Brock 'hyd'. Motion carried unanimously. H. The Council considered the following: 1. The City Council held a public hearing and considered adoption of an ordinance creating a Special Sign District for the Unicorn Lake development. The purpose of the Special Sign District was to allow signage for the development, located south of Interstate 35 East along both sides of Wind River Lane, deviating from the requirements of Subchapter 15 of the Development Code relating to directional signage. The Planning and Zoning Commission recommended approval (3-3). NOTE: A SUPERMAJORITY VOTE BY THE COUNCIL WAS REQUIRED FOR APPROVAL. (SD04-0002, Unicorn Lake DevelopmenO Larry Reichhart, Assistant Director of Planning and Development, stated that the Development Code did not address%vay finding' signs. The proposed sign district would allow an off-premise %vay finding'sign to be located on public property. One neutral response from a property owner was submitted to staff. A supermajority vote of the City Council was required to approve this case since the Planning and Zoning Commission recommended denial. City of DeNon City Council Minutes July 20, 2004 Page 15 The Mayor opened the public hearing. The following individuals spoke during the public hearing: Melissa Lindelow, 1717 Main Street, #2800, Dallas, in support Bob Shelton, 3300 Sundown, in support The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-204 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, CREATING AN OVERLAY DISTRICT AND APPROVING A SPECIAL SIGN DISTRICT PLAN ON AN APPROXIMATE 0.023 ACRE OF LAND LOCATED AT THE INTERSECTION OF STATE SCHOOL ROAD AND UNICORN LAKE BOULEVARD LEGALLY DESCRIBED AS 0.023 ACRES OF TRACT 19 OF THE M.E.P. & R.R. SURVEY ABSTRACT NUMBER 950 IN THE CITY OF DENTON, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (SD04-0002) Mulroy motioned, Thomson seconded to adopt the ordinance with updated exhibits. On roll vote, Kamp "ayd', McNeill "ayd', Momgomery "ayd; Mulroy "ayd', Redmon'hyd', Thomson "ayd' and Mayor Brock"ayd'. Motion carried unanimously. 2. The Council considered adoption of an ordinance authorizing the City Manager or his designee to approve a Right of Way Use Agreement, to allow a monument sign and other improvements to be located within street right-of-way at Unicom Lake Blvd. and State School Road to indicate emryway imo Unicom Lake, said tract being described as a 0.023 acres of land situated in the M.E.P. & P.R.R. Survey, Abstract No. 950, in the City of Denton, Denton County, Texas, being part of a 2.631 acre tract of land, conveyed as tract two to the City of DeNon by Deed recorded in County Clerk's file No. 2004-56699, Real Property Records, DeNon County, Texas, and providing an effective date. The following individuals spoke regarding the ordinance: Melissa Lindelow, 1717 Main Street, #2800, Dallas, in support Bob Shelton, 3300 Sundown, in support The following ordinance was considered: NO. 2004-205 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPROVE A RIGHT OF WAY USE AGREEMENT TO ALLOW A MONUMENT SIGN WITHIN STREET RIGHT-OF-WAY AT UNICORN LAKE BLVD. AND STATE SCHOOL ROAD TO INDICATE ENTRYWAY INTO UNICORN LAKE; AND PROVIDING AN EFFECTIVE DATE. City of DeNon City Council Minutes July 20, 2004 Page 16 Mulroy motioned, Thomson seconded to adopt the ordinance. On roll vote, Kamp'hyd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd' and Mayor Brock'hyd'. Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance amending, repealing and replacing Ordinance No. 2002-244 of the City of DeNon, Texas, establishing fees to be charged for emergency ambulance services and standby emergency ambulance services in the City as provided for in Sec. 27-102 of Article IV of Chapter 27"Vehicles For Hird'ofthe Code of Ordinances of the City of DeNon, Texas; repealing all ordinances in conflict herewith; providing a severability clause; and providing for an effective date. Ross Chadwick, Fire Chief, stated that the last change of emergency ambulance fees was in 2002. He stated that costs to provide emergency medical services continued to increase, and an increase was needed to remain competitive with other area emergency medical services providers. Chadwick stated that the proposed ordinance would increase the Resident Transport Fee to $475.00 and the Non-Residem Basic Transport Fee to $600.00. A Commem Card was received from Bill Lewis, 900 Brush Creek Road, Argyle, in support of the ordinance. The following ordinance was considered: No. 2004-206 AN ORDINANCE AMENDING, REPEALING AND REPLACING ORDINANCE NO. 2002-244 OF THE CITY OF DENTON, TEXAS, ESTABLISHING FEES TO BE CHARGED FOR EMERGENCY AMBULANCE SERVICES AND STANDBY EMERGENCY AMBULANCE SERVICES IN THE CITY AS PROVIDED FOR IN SEC. 27-102 OF ARTICLE IV OF CHAPTER 27 "VEHICLES FOR HIRE' OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp"ayd', McNeill"ayd', Montgomery "ayd', Mulroy "ayd', Redmon "ayd', Thomson "ayd' and Mayor Brock 'hyd'. Motion carried unanimously. B. The Council considered adoption of an ordinance of the City of DeNon, Texas amending Chapter 16 relating to licenses, permits and business regulations by changing the definition of soliciting in Article III titled Solicitors and Itinerant Merchants; providing a severability clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. Captain Joanie Housewright reviewed the changes to the solicitor's ordinance. She stated that it expanded the definition of soliciting to include a person who asked for a ride, employmem, City of DeNon City Council Minutes July 20, 2004 Page 17 goods, services, financial aid, monetary gifts, or any article represeming monetary value, for any purpose in any public place, it excluded requesting a ride, employmem, goods, services, or financial aid from a friend or relative. The new definition also included a person who distributed without remuneration goods, services, or publications. The proposed ordinance also added a definition for solicitor. It excluded those individuals who set up and operated a temporary business within a building of another business, individuals soliciting employment at the Day Labor Site were exempted. However, the change in the definition of soliciting allowed for the regulation of individuals soliciting employmem. The proposed revision included the addition of a definition of the Day Labor Site that would require the laborers to solicit employment at least fifty feet from the intersection of the driveway entrance and West Collins and at least 20 feet from the curb of any adjacent streets. Council Member Thomson asked how it would be enforced. Housewright stated that they would start with warnings. She stated they were having small cards prepared that they could hand to people that were homeless, etc. The following individuals spoke regarding the ordinance: Dessie Goodson, 1511 N. Elm, Apt. 8, in opposition Ann Pemberton, 2118 Cherrywood Lane, in opposition Bill Thomas, 2205 Archer Trail, in support Bob Moses, 115 W. Hickory, in support Ed Prout, 215 E. Oak Street, in support George Gibson, 1401 Lynhurst, asked the City to get the word out that help was available Ken Willis, 111 N. Elm Street, in support Robb Bertelsen, 110 W. Oak Street, in support Council Member Redmon requested a six-month evaluation of the ordinance if approved. The following ordinance was considered: NO. 2004-207 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING CHAPTER 16 RELATING TO LICENSES, PERMITS AND BUSINESS REGULATIONS BY CHANGING THE DEFINITION OF SOLICITING IN ARTICLE iii TITLED SOLICITORS AND ITINERANT MERCHANTS; PROVIDING A SEVERABiLiTY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. McNeill motioned, Kamp seconded to adopt the ordinance and requested a six-month evaluation. On roll vote, Kamp"ayd', McNeill"ayd~ Momgomery"ayd', Mulroy"ayd', Redmon"ayd', Thomson"ayd' and Mayor Brock"ayd'. Motion carried unanimously. C. The Council considered adoption of an ordinance of the City of DeNon, Texas approving an interlocal Cooperation Agreement by and between the City of Denton, Texas and the Texas Woman's University pertaining to the use of and upgrade of Civic Cemer Park; and providing an effective date. City of Demon City Council Minutes July 20, 2004 Page 18 This item was pulled from consideration by TWU. D. The Council considered nominations/appoimmems to the City's boards and commissions. Council Member Kamp nominated Larry Calvert to the Construction Advisory and Appeals Board. Council Member Kamp nominated Mary Tisher to the Human Services Advisory Committee. Council Member Thomson nominated Judy Deek to the Library Board. Council Member McNeill nominated John Vann to the Airport Advisory Board. Mayor Brock announced the appointment of Jeanie Chilton to the Denton Housing Authority. E. New Business The following items of New Business were suggested for future agendas: 1. Council Member Redmon asked if staff could look for other ways of funding traffic analysis studies for neighborhoods. F. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff reminded the Council of the retreat on Thursday and Friday, July 22 and 23, 2004. G. Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. H. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 11:12 p.m. JANE RICHARDSON ASST. CITY SECRETARY CITY OF DENTON, TEXAS EULINE BROCK MAYOR CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES ANNUAL PLANNING SESSION JULY 22 & 23, 2004 LANTANA LODGE, 2200 FM 1192, PILOT POINT, TEXAS The Annual Planning Session of the City of DeNon City Council convened at 3:00 p.m. on Thursday, July 22, 2004, at the Lantana Lodge located at 2200 FM 1192 in Pilot Point Texas. PRESENT: Mayor Euline Brock, Mayor Pro Tem Perry McNeill, Council Members Pete Kamp, Jack Thomson, Bob Montgomery, and Joe Mulroy. ABSENT: Council Member Raymond Redmon The following items were considered: 1) The Council discussed operating procedures including structure of Council meetings, work session procedures and topics, information requests, attendance at in-city and out-of-city functions, communication with Council Members, and the budget process. The Council discussed policy and procedure implemeNation and feedback to ensure compliance. Feedback should include citizen input, council observations and staff input. Council requested that citizen reports be moved to the end of the Council meeting and that the time for the reports be reduced to four minutes. In addition, Council requested that a legal announcement regarding Council responses to citizen reports and rule violations be made. The Council requested that the Council AssistaN develop a log and notify Councilmembers of where upcoming official evens are occurring and who will be in attendance. The Council also requested that staff white papers include an executive summary and that staff presentations only focus on the highlights. 2) The Council discussed city departmeNs including communication and concerns among departments, customer service, efficiency of departments, utility, drainage and wastewater budgeting and transfers, police protection, diversity in the city workplace, and the development review process. The Council requested a grid to explain what and why Utility DepartmeN transfers were made to the general fund. The Council service and improvement resulted from requested that the Development Review process focus on customer moving projects through the process. Several suggestions for were discussed. The Council requested a list of service cuts that have the budget cuts that have taken place over the last couple of years. The Council also requested that an upcoming work session be ideNified to discuss diversity. The Council discussed the possibility of changing the policy of hiring non- certified firefighters to hiring certified firefighters as an opportunity to bring diversity City of DeNon City Council Minutes July 22 & 23, 2004 Page 2 to the Fire Department. During the discussion of police protection and the cost of hiring additional police officers, the Council discussed the cost of installing red light cameras to be used as a means of increasing safety and relieving the workload of the police department. Customer service issues relating to phone issues were also discussed. 3) The Council discussed planning and developmem including multi-family developmem standards, economic developmem drivers and developmem in north DeNon, dowmown projects, and transportation issues including passenger rail and a rail station. The Council discussed the upcoming Capital Improvemem Bond issue project. They discussed projects that could be recommended to the committee for consideration, such as property acquisition for a dowmown transportation facility, further improvements to the perimeter streets on the Square, a consultant to review transportation projects and how the projects relate to the Downtown Master Plan, and considered a professional staff person to direct the Downtown development. The Council also discussed the City's currem ratio of multi-family versus single-family developmem and whether the ratio was appropriate for the community. The Council requested that an upcoming work session to re-examine the multi-family versus single family unit ratio in the Denton Plan, to review the allowable uses in each zoning category, to examine incentives for higher standards for multi-family development, to examine limits on the number of units in a developmem and to have a legal review of square footage requiremems. The Council also discussed economic developmem opportunities on University Drive, and the partnership with UNT Research Park and associated retail development. 4) The Council discussed service and responsiveness to citizens. Due to lack of time roads, rezoning, urban center density, voter registration, state issues, district forums and involvement of youth and young adults in government were not discussed. The Council discussed concerns they have received regarding disconnected phone calls. 5) Due to lack of time, the Council was unable to discuss environmental concerns. Environmental concerns will be the topic of the August 10, 2004, planning session meeting. Council adjourned their meeting at 6:00 p.m. On Friday, July 23, 2004, at 8:30 a.m. Council resumed their discussions of the listed topics. PRESENT: Mayor Euline Brock, Mayor Pro Tem Perry McNeill, Council Members Raymond Redmon, Pete Kamp, Jack Thomson, Bob Montgomery and Joe Mulroy ABSENT: None City of Demon City Council Minutes July 22 & 23, 2004 Page 3 Discussion on the listed topics resumed. in six momhs. The meeting adjourned at 2:25 p.m. Council requested that a mid year retreat be scheduled Euline Brock Mayor City of Demon Betty Williams Deputy City Secretary City of Demon CITY OF DENTON CITY COUNCIL MINUTES July 27, 2004 After determining that a quorum was presem, the City Council of the City of DeNon, Texas convened in a Special Called Work Session on Tuesday, July 27, 2004 at 4:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock, Council Members Kamp, McNeill, Momgomery, Mulroy, Redmon, and Thomson ABSENT: None 1. The Council received a report and held a discussion regarding budgeting processes. Kathy DuBose, Assistam City Manager of Fiscal and Municipal Services, imroduced John Gross, Finance Director of Aurora, Colorado for thirteen years, who would present an overview of governmental budgeting processes. Gross stated that elemems of a budget included developing good financial policies, developing programmatic, operating, and capital policies and plans, developing programs and services that were consistent with policies and plans, and developing management strategies. Gross stated that in a zero based budget, expenditures were generally identified by services or programs and further by levels of that same service or program. He stated that it was administratively very expensive. In program budgeting, expenditures were shown by program, and could cut across organizational and funding boundaries. In a line item budget, expenditures were identified by type: salaries, contractual services, and supplies. In an organizational budget, which the majority of govemmems use, expenditures were idemified by organizational unit, usually a department. 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for the meeting of July 27, 2004. Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the following. 1. The Council considered the following in Closed Meeting: mo Consultation with Attorney- Under TEXAS GOVERNMENT CODE Section 551.071. The Council discussed and considered legal issues concerning road damage caused by gas well operations and considered a settlemem agreement with a gas well operator, where to discuss these legal issues concerning the above stated matters with the attorneys in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and would jeopardize the City's position in administrative proceedings or in potential litigation. City of DeNon City Council Minutes July 27, 2004 Page 2 Special Called Regular Meeting of the City of DeNon City Council on Tuesday, July 27, 2004 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 There were no proclamations/awards presemed. B. Recognition of staff accomplishments City Manager Conduffpresemed staff accomplishments to the Council and audience. 3. CITIZENS REPORTS A. The Council received citizen reports from the following: Tenia Hoops regarding Water and Wastewater Utilities. Windsor Drive, spoke regarding her utility bill-high water usage and Ms. Hoops, 2320 E. wastewater charges. 2. Dessie Goodson regarding'¥esponsibilit:~'. Ms. Goodson was not presem at the meeting. The Mayor announced that the Council would attend a public hearing at the Civic Cemer being held by the Texas Commission on Environmemal Quality regarding an air quality permit sought by Acme Brick. The Council returned to the Council Chambers and Mayor Pro Tem McNeill reconvened the meeting at 8:00 p.m. with the Mayor remaining at the TCEQ Public Hearing. The Council considered the following: 4. CONSENT AGENDA Mulroy motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll vote, Kamp "ayd', McNeill "ayd', Momgomery "ayd', Mulroy 'hyd', Redmon"ayd', and Thomson"ayd'. Motion carried 6-0. A. R2004-036-A resolution of the City of DeNon, Texas, authorizing the City Manager to execute a Certificate of Coordination between the City of Denton, City of DeNon City Council Minutes July 27, 2004 Page 3 Texas and the Housing Authority of the City of DeNon, providing for coordination of certain library services with DeNon Housing Authority Family Self-Sufficiency Program; and providing for an effective date. Bo 2004-208- An ordinance accepting competitive bids and awarding an annual comract for the purchase of gasoline and diesel fuel; providing for the expenditure of funds therefor; and providing an effective date (Bid 3182-Annual Comract for Gasoline and Diesel Fuel in the estimated amoum of $1,000,000). Co 2004-209- An ordinance accepting competitive bids and awarding an annual comract for the purchase of Tire Repair and Tire Changing Services; providing for the expenditure of funds therefor; and providing an effective date (Bid 3183- Annual Comract for Tire Repair and Tire Changing awarded to Briscoe Tire Inc. in the estimated amoum of $100,000). Do 2004-21 O-An ordinance approving the expenditure of funds for the purchase of a standby reuse water pump and motor assembly for the Pecan Creek Water Reclamation Plant 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 3194-Purchase of Standby Pump for Pecan Creek Water Reclamation Plant to Johnston Pump Company in an amoum not to exceed $37,938). mo 2004-211-An ordinance approving a Pro Rata Reimbursement Agreement for drainage improvements between the City of Demon, Texas and Windjammer, Ltd. pursuant to the City's Drainage Pro Rata Ordinance contained in Article VII of Chapter 26 of the Code of Ordinances of the City of DeNon; modifying that certain economic developmem agreemem dated March 23, 2004 between the City of DeNon and Windjammer, Ltd.; and providing an effective date. Fo 2004-212-An ordinance of the City of DeNon, Texas authorizing the City Manager to execute a Professional Services Agreement with Teague Nall and Perkins, Inc. for engineering services related to Channel Improvements to Tributary PEC-4 and a branch of Tributary PEC-4; authorizing the expenditure of funds therefor; and providing an effective date. Go Approved appoimmems to the following boards and commissions: 2. 3. 4. 5. Airport Advisory Board-John Vann Construction Advisory and Appeals Board-Larry Calvert Human Services Advisory Committee-Mary Tisher, Jan Hillman Library Board-Judy Deek Traffic Safety Commission-Tracy Beck, Michael Kozak 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered an exaction variance of Section 35.19.4 (A)(5) of the Code of Ordinances concerning Drainage Standards. The 9.071-acre parcel was located on the North side of Wind River Lane just east of the Wind River Subdivision. A multi-screen movie theatre was proposed. The Planning and Zoning Commission recommended denial (4-2). (V04- 0001 Cinemark Addition Drainage Variance) City of Demon City Council Minutes July 27, 2004 Page 4 This item was pulled from consideration by the applicam. B. The Council considered adoption of an ordinance of the City of Demon, Texas, establishing fees to be charged for annual alarm permits as provided for in Sections 4-26 and 4- 29 of Article II of Chapter 4'~darm Systemg' of the Code of Ordinances of the City of Demon, Texas; repealing all ordinances in conflict herewith; providing a severability clause; and providing for an effective date. Captain Lee Howell stated that the proposed ordinance set the fee for an annual alarm permit at $20.00. The following ordinance was considered: NO. 2004-213 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ESTABLISHING FEES TO BE CHARGED FOR ANNUAL ALARM PERMITS AS PROVIDED FOR IN SECTIONS 4-26 AND 4-29 OF ARTICLE II OF CHAPTER 4"ALARM SYSTEMS' OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Thomson motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp'hyd', McNeill 'hyd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', and Thomson"ayd'. Motion carried 6-0. C. The Council considered adoption of an ordinance of the City of Demon, Texas amending the provisions of Chapter 4 relating to alarms by amending Sections 4-26, 4-29 and 4- 31 to establish an annual time period for alarm permits and to establish the collection of an annual alarm permit fee; providing for a severability clause; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; and providing for an effective date. Captain Lee Howell stated that the proposed ordinance established the annual time period of an alarm permit and grained authority to collect a fee. The following ordinance was considered: NO. 2004-214 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE PROVISIONS OF CHAPTER 4 RELATING TO ALARMS BY AMENDING SECTIONS 4-26, 4-29 AND 4-31 TO ESTABLISH AN ANNUAL TIME PERIOD FOR ALARM PERMITS AND TO ESTABLISH THE COLLECTION OF AN ANNUAL ALARM PERMIT FEE; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. City of DeNon City Council Minutes July 27, 2004 Page 5 Montgomery motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp "ayd', McNeill"ayd', Momgomery"ayd', Mulroy"ayd', Redmon"ayd', and Thomson'hyd'. Motion carried 6- 0. D. The Council considered nominations/appoimmems to the City's boards and commissions. Council Member Kamp nominated Maureen Jamail to the Community Developmem Advisory Committee. Council Member Thomson nominated Charles McLain to the Human Services Advisory Committee. Mayor Brock nominated Pat Langa to the Library Board. Council Member Kamp nominated Georgianne Burlage to the Traffic Safety Commission. E. New Business The following items of New Business were suggested for future agendas: 1. Council Member Redmon requested that staff research the process for raising taxi cab rates. 2. Council Member Kamp stated that at the Demon Tomorrow II Conference there was discussion regarding cities being Wi-Fi cities. She requested information on Demon becoming a Wi-Fi city. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff did not have any items for Council. G. Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no cominuation of the Closed Meeting. H. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. City of Demon City Council Minutes July 27, 2004 Page 6 With no further business, the meeting was adjourned at 8:15 p.m. JANE RICHARDSON ASST. CITY SECRETARY CITY OF DENTON, TEXAS EULINE BROCK MAYOR CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 3, 2004 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 3, 2004 at 4:00 p.m. in the Council Chambers at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Mulroy, Redmon and Thomson. ABSENT: Council Member Montgomery 1. The Council received a report, held a discussion and gave staff direction regarding tree preservation regulations. (SI03-0012, Tree Preservation) Mark Burroughs, Chair of the Council Tree Preservation Committee, stated that numerous meetings had been held regarding this subject plus many meetings of the Council subcommittee. It was necessary to achieve a balance between property owners and those interested in tree preservation. Policy issues included agricultural exemptions; an undesirable tree list; small lot and infill exclusion table; and applicability with platting and gas wells (new issue). After review with the Subcommittee Chair, the recommendation of the Committee was to remove the agricultural exemption. Agricultural properties could seek relief through the process or could seek rezoning to a "rural" zoning designation. Council Member Montgomery arrived at the meeting. Burroughs stated that the subcommittee was recommending to reduce the standards for undesirable trees and to change the designation to secondary trees or secondary tier trees. The committee recommended a small lot and infill exclusion table. The subcommittee did not reach consensus on applicability of the proposed regulations to non-residential projects with an active preliminary or final plat. The question was whether the projects with an active preliminary or final plat were subject to the regulations or were the regulations applied at the time of a building permit application. Larry Reichhart, Assistant Director for Planning and Development, reviewed the policy issues that were before the council. Council discussion included: A definition of pre-construction design versus the permit process. A projected time frame for development from start to finish. Consider a non-activity clause for infrastructure started on a development but no progress for a certain time period. The intent was not to assist people trying to avoid the regulations but to consider those who had already made a sizeable financial investment. The development of a secondary list for trees with mitigation ratios for those types of trees. Refine the recommended tree list (page 14 of the ordinance). Continue to reevaluate the final ordinance on a regular basis such as every 6 months. City of DeNon City Council Minutes August 3, 2004 Page 2 Staff would review the suggestions made and incorporate relative modifications into a revised ordinance for Council consideration. Those recommendations included: The agricultural exemption would be eliminated An undesirable tree list would be developed The small lot table would stay with a second tier tree list included The developmem of a non-activity clause versus a platting clause Trees would be mitigated 1-1 for gas wells in flood plains ESA trees/non-ESA trees - save more ESA trees that would mitigation. be credited towards 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for the meeting of August 3, 2004. The City Council attended a reception for Board and Commission members at 5:00 p.m. in the Council Work Session Room at City Hall. The City Council then convened in the Council Chambers at 6:00 p.m. 1. The Council considered approval of a resolution of appreciation for retiring Board/Commission members. Montgomery motioned, McNeill seconded to approve the resolution. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. 2. Oath of Office for New Board Members City Secretary Jennifer Walters administered the Oath of Office to the new and cominuing board and commission members. Regular Meeting of the City of Demon City Council on Tuesday, August 3, 2004 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 There were no proclamations/awards for this meeting. B. Recognition of staff accomplishmems City Manager Conduffpresemed staff accomplishmems to the Council. City of DeNon City Council Minutes August 3, 2004 Page 3 3. CITIZEN REPORTS A. Council received citizen reports from the following: 1. Troy Nivens, DeNon Police Officers Association, regarding upcoming police department budget and equipment concerns. Officer Nivens stated that the DPOA authorized a public comment regarding concerns related to salaries, manpower and equipmem. The salary for DeNon police officers was no longer competitive with area cities. The members of the DPOA were appreciative of the 3% across the board increase recemly grained all city employees. The City was also short with staffing levels compared with citizen population. Vehicles were also a concern as many were aged. These concerns were not presented in a negative light but were a way to communicate concerns with the City Council. 2. Dessie Goodson regarding "responsibility". Ms. Goodson stated that she had requested copies of ordinances but had not received the correct ordinances. The Council did not abide its own rules. It applauded during the Council meeting, which was in conflict with the rules of procedures. 4. CONSENT AGENDA Kamp motioned, Thomson seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. mo 2004-215 - An ordinance accepting competitive bids and awarding an annual comract for the purchase of refuse bags; providing for the expenditure of funds therefor; and providing an effective date (Bid 3170 -Annual Comract for Semi- Transparent and Transparent Refuse Bags awarded to the lowest responsible bidder for each item in the estimated amoum of $70,000). Bo 2004-216 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of PVC electrical fittings and accessories; providing for the expenditure of funds therefor; and providing an effective date (Bid 3179 - PVC Electrical Fittings and Accessories awarded to Techline in the estimated amoum of $293,407.31). Co 2004-217 -An ordinance awarding a comract for the purchase of Cisco hardware, software and peripherals supporting high speed communications connectivity over the City of DeNon network for voice and data services as awarded by the State of Texas Building and Procurement Commission through the Catalog Information Service Vendor (CISV) Catalog Program; providing for the expenditure of funds therefor; and providing an effective date (File 3199 - Purchase of Cisco Hardware and Software for Teleworks System awarded to InterNetwork Experts in the amoum of $47,543). City of Denton City Council Minutes August 3, 2004 Page 4 2004-218 - An ordinance authorizing the City Manager to execute an Imerlocal Cooperative Purchasing Program Agreemem with the City of Plano, Texas under Section 271.102 of the Local Government Code, to authorize participation in various City of Plano comracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 3200 - Imerlocal Agreemem with the City of Plano, Texas). 2004-219 - An ordinance accepting competitive bids by way of an Imerlocal Cooperative Purchasing Program Participation Agreemem with the City of Plano under Section 271.102 of the Local Governmem Code, for the purchase of irrigation equipment; providing for the expenditure of funds therefor; and providing an effective date (File 3191 - Imerlocal Agreemem for Irrigation Equipment with the City of Plano, contract awarded to Interspec, LLC in the estimated amoum of $26,000). 2004-220 - An ordinance accepting competitive bids and awarding a comract for the purchase of a hydraulic excavator for the Electric Distribution Department; providing for the expenditure of funds therefor; and providing an effective date (Bid 3188 - Hydraulic Excavator 40 HP Class awarded to Cominemal Equipmem Company L.P. in the amoum of $33,131.68). Approved tax refunds for the following property taxes: Tax Name Reason Amount Year I ~c ~ ~i~ iB~i~ ~nt~ 8~~nt~ $ 2. Countrywide/Scott Olson Duplicate Payment 2003 604.84 4. Robson Ranch HOA DCAD Supplemental 2003 1012.30 Change 6. Title Resources Overpayment 2003 1098.21 8. Washington Mutual/Brian & Duplicate Payment 2003 713.95 R2004-037 - A resolution approving the financing by the HFDC of Central Texas, Inc. of a health facility located within the City of Denton, Texas; providing an effective date. 2004-221 - An ordinance of the City of DeNon, Texas prohibiting parking during certain hours on the east side of Newton Street beginning 461 feet north of its intersection with Morse Street and continuing north to a point approximately 856 feet north of the imersection; providing a savings clause; providing a severability clause; providing a penalty not to exceed two hundred dollars; and declaring an effective date. City of DeNon City Council Minutes August 3, 2004 Page 5 Jo 2004-222 - An ordinance of the City of DeNon, Texas prohibiting parking during certain hours on the both sides of Sun Valley Drive from its intersection with Stuart Road east for a distance of approximately 125 feet; providing a savings clause; providing a severability clause; providing a penalty not to exceed two hundred dollars; and declaring an effective date. Ko 2004-223 - An ordinance authorizing the City Manager or his designee to execute an Encroachment Agreement to allow the installation of a monument sign within an existing City of Denton Public Utility Easemem located adjacem to Lillian Miller Parkway just North of Wind River Road, said tract being described as a 0.0003 acres of land situated in the John McGowan Survey Abstract No. 797, in the City of Denton, Denton County, Texas, being part of a Lot 1, Block A of Wind River Estates Phase 1, an Addition to the City of Denton, Denton County, Texas, according to the Plat thereof recorded in Cabinet O, Slide 27, Plat Records, Denton County, Texas, and providing an effective date. Lo Confirmed the re-appointment by the City Manager of Dr. Tory Caeti to the Civil Service Commission. Mo Approved appoimmems to the following boards and commissions: 2. 3. 4. 5. Airport Advisory Board Community Developmem Advisory Committee Human Services Advisory Committee Library Board Traffic Safety Commission 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered adoption of an ordinance of the City of DeNon, Texas approving an Interlocal Cooperation Agreement between the City of Denton and the Denton County Transportation Authority providing LINK Operations Funding Assistance for September 2004, and providing an effective date. Mark Nelson, Director of Airport and Transportation, stated that the agreement would assist with potential shortfall for September. TxDot was no longer providing grant funding since the approval of the Denton County Transportation Authority. The following ordinance was considered: NO. 2004-224 AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY TRANSPORTATION AUTHORITY PROVIDING LINK OPERATIONS FUNDING ASSISTANCE FOR SEPTEMBER 2004, AND PROVIDING AN EFFECTIVE DATE. City of DeNon City Council Minutes August 3, 2004 Page 6 Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. The Council considered approval of a resolution authorizing the City Council to appoint a Special Citizens Advisory Committee for the Capital Improvement Program; and declaring an effective date. Kathy DuBose, Assistant City Manager, presented the details of the resolution and the procedures to follow. The following resolution was considered: NO. R2004-038 A RESOLUTION AUTHORIZING THE CITY COUNCIL TO APPOINT A SPECIAL CITIZENS ADVISORY COMMITTEE FOR THE CAPITAL IMPROVEMENT PROGRAM; AND DECLARING AN EFFECTIVE DATE. Mulroy motioned, Kamp seconded to approve the resolution. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. C. The Council considered appoimmems to a special Citizens Advisory Committee to study capital improvemem needs for projects to be included in a February 2005 bond election and discuss the charge for the committee. After discussion, Council determined that members would submit wording suggestions for the committee charge to the Agenda Committee to draft the wording. Council Members appoimed the following individuals to the Committee: Council Member Kamp Phil Gallivan Pat Gobble Charlye Heggins Maureen Jamail Randy Robinson Martha Len Nelson Bob Sherman Council Member McNeill Jo Kuhn Scott Ball Polly Diebel City of Demon City Council Minutes August 3, 2004 Page 7 Richard Huckabee Gus Seligmann Roni Beasley Alan Nelson Council Member Montgomery Marge Durrance David Weir Phil Young Bob Hum Council Member Mulroy Curtis Martin Jim Kirkpatrick Stacy Huckabay Ellen Fuller Mary Behrens Shannon Smith Charlice Kruger Council Member Redmon did not have any appoimmems at this meeting. Council Member Thomson Karen Devinney Gary Hayden Jennifer Siegfried Marvin Crabb Patrice Lyke John Johnson Bill Cheek Mayor Brock Jerry Mohelnitzky Dave Kimble David Biles Debbie Johnson Mayor Brock nominated Mark Burroughs as Chair of the CIP Blue Ribbon Committee. McNeill motioned, Momgomery seconded to approve the names of the individuals appoimed to the committee and the nomination for chair of the committee. On roll vote, Kamp "aye", McNeill "aye", Momgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. City of Demon City Council Minutes August 3, 2004 Page 8 Commissions. Mayor Brock announced the Housing Authority. The Council considered nominations/appoimmems to the City's Boards and appointment of Jeanie Chilton and Calvin Evans to the Denton Mayor Brock nominated Bob Bland to the Public Utilities Board. E. New Business There was no New Business suggested by Council for future agendas. F. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff did not have items for Council. G. There was no cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. H. 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 7:11 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 5, 2004 After determining that a quorum was presem, the City Council of the City of DeNon, Texas convened in a Special Called Work Session on Thursday, August 5, 2004 at 9:00 a.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock, Mayor Pro Tem McNeill, Council Members Kamp, Montgomery, Mulroy, Redmon, and Thomson. ABSENT: None 1. The Council received a report, held a discussion, and gave staff direction regarding the 2004-2005 Budget and the 2004-2009 Capital Improvemem Program. Mike Conduff, City Manager, presemed an overview regarding the developmem of the budget. Kathy DuBose, Assistam City Manager of Fiscal and Municipal Services, presemed the details of the budget proposal. · The General Fund reserve level would be increased to 13.50%. · The sales tax would be projected at a 7.5% growth. · The 2004-05 tax rate was proposed at $.57765, which was a $.0295 increase. · Compensation - a 3% cost of living adjustmem for non-civil service employees and a 3% cost of living adjustmem and normally scheduled step increases for Civil Service employees. · Public Safety issues included the building of a public safety training facility, the collection for emergency medical services, the opening of Fire Station #7 with associated increase in personnel and replacement vehicles for the Fire Department, the funding for school crossing guards, funding for amicipated public safety retiremems, and replacemem vehicles for the Police Department. · TIP Strategies Process was included at a cost of $144,000 for an image and branding survey, and brand image and marketing with one half to be paid out of the general fund and half to be paid out of the utility fund. · Library services included 10 new positions and operation/maimenance costs for the reopening of the Emily Fowler Library. · Human Services comributions were recommended for a 3.3% increase. · Streets would continue to be a budgetary consideration with a consideration for a street maintenance fee dedicated solely to street maintenance. · Parks and Recreation capital projects included Lake Forest Park with 2 field service worker positions delayed and the landscape architect position delayed in this budget year. The Civic Center fee structure was proposed to be changed. A trash compactor truck was proposed to be added. Curremly the parks were maimained at a service level below established standards for park maintenance, recreation center hours would continue to operate at a reduced 5 hours per week with capital project management and development delayed. · The airport would continue with the new terminal building project, the taxiway realignment/terminal apron and the environmental assessment and engineering of a 1500 foot runway extension. City of DeNon City Council Minutes August 5, 2004 Page 2 Council Member Mulroy left the meeting. · Other services included the capital improvement election, LINK, impact fee program and the neighborhood empowerment program. · Hotel Occupancy Tax funding for 2004-05 was projected at 1% over currem revenues. Council Member Mulroy returned to the meeting. · The Aquatic Cemer was projected to have a net deficit of $372,141 for next year. Major issues for 2004-05 included implememing expanded and new programs; emphasis on marketing and sponsorships; no increase in admission fees; staff salaries and benefits increase; utility ECA rate increase; energy conservation; maintenance cost increase and hiring delays. · Solid Waste issues cemered on residemial rate decrease of $.45 per momh for bag service; residemial curbside recycling rate increase of $.92 per month; projected bond sale of $1.55 million and a decrease of 6 FTE's. · Electric issues included no base rate increase; electric ECA budgeted at $.051/KWH for the 1st quarter and $.044/KWH for the remaining of the year; an increase of .5 FTE. · Water issues cemered on no retail rate increases; projected bond sale of $2.6 million; and an increase of 8.5 FTE's. · Wastewater issues included a rate increase of 9%; no bond sale projected for 2004-05; and an increase of 1 FTE. · Utility transfers were described including return on investmem, administrative transfers and franchise fees. · The Capital Improvemem Program included the implememation of a citizens advisory committee, a February 5, 2005 election for $28 million worth of bonds. · The remaining budget calendar was discussed. An additional meeting was scheduled for August 16th starting at 7:30 a.m. Council discussed prior drainage debt and the method in which the prior debt was placed in the budget. With no further discussion, the meeting was adjourned at 4:00 p.m. EULINEBROCK MAYOR CITY OFDENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 10, 2004 After determining that a quorum was present, the City Council convened on Tuesday, August 10, 2004 at 4:00 p.m. in the City Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, Redmon and Thomson. ABSENT: None The City Council convened in a Special Called Meeting to consider the following: 1. The Council considered approval of a resolution of the City Council of Demon Texas placing a proposal on the September 7, 2004, City Council Public Meeting Agenda to adopt a 2003 tax rate that will exceed the lower of the rollback rate or 103 percent of the effective tax rate; calling a public hearing on a tax increase to be held on August 24, 2004, requiring publication of a Notice of Public Hearing on a tax increase in accordance with the law; and providing an effective date. Discussion by Council amended the wording in several "whereas" sections changing the wording from "desires" to "considering". The following resolution was considered: NO. R2004-039 A RESOLUTION OF THE CITY COUNCIL OF DENTON TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 7, 2004, CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2003 TAX RATE THAT WILL EXCEED THE LOWER OF THE ROLLBACK RATE OR 103 PERCENT OF THE EFFECTIVE TAX RATE; CALLING A PUBLIC HEARING ON A TAX INCREASE TO BE HELD ON AUGUST 24, 2004, REQUIRING PUBLiCATiON OF A NOTICE OF PUBLIC HEARING ON A TAX INCREASE IN ACCORDANCE WITH THE LAW; AND PROVIDING AN EFFECTIVE DATE. McNeill motioned, Montgomery seconded to approve the resolution as amended. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Following the completion of the Special Called Meeting, the City Council convened in a Planning Work Session. 1. The Council received outcome statemems and held a discussion regarding Neighborhoods. Mike Conduff, City Manager, stated that there were no new outcome statements from the prior neighborhood discussion. Council did not have any new outcome statements to present with the neighborhood discussion. City of DeNon City Council Minutes August 10, 2004 Page 2 2. The Council received a report and held a discussion regarding Environmem. Ken Banks, Water Resources Program Manager, discussed environmemal issues facing the City of Denton. Elements of that discussion included the fact that this was a wide-ranging topic, citizen involvement was needed, and conflicts would arise on how to best manage the environmem. The purpose of the discussion was to discuss the process of shaping a vision for environmental management in Denton. Good municipal environmental management was based on a sound socio-economic framework and was people-cemered with public health and environmemal protection as mutually reinforcing goals. It needed to address people's quality of life, allow for equal access to open space and recreational opportunities, integrate economic developmem and environmemal sustainability, be an efficiem use of energy resources and allow for public participation in environmental governance with public participation. Banks presented a history of water based environmental management. Traditional regulations focused on controlling well defined point sources and the fact that as those sources became more regulated, the quantities of pollution entering the environment decreased. Regulators began to realize that cleaning up point sources was not enough and non-point sources became a more important issue. Current environmental work centered on more than just point sources. Past problems with permit failures, more stringent wastewater and stormwater permits and a focus on anticipation of problems prompted this focus plus. Future issues included air quality, storm water, watershed/wastewater and environmentally sensitive areas. There was a theory on the three major types of environmental management: federal and state level issues; quality of life issues; and a new environmemal managemem paradigm that dealt with federal and state regulatory issues with increased local issues. Banks reviewed regulatory compliance issues. Quality of life local non-regulatory issues were driven by citizen groups. local organizations and businesses. This was an unfunded mandate driven by local concerns. Implementation was difficult and resource intensive, needed to be a flexible process with opportunities for participation. A new environmental management paradigm combined both of these issues. It was an overlap between quality of life and regulation. This was an unfunded mandate driven by both regulation and by local concerns. Curremly regulatory compliance for water/wastewater/stormwater was generally maintained. Environmental issues were an economic and social reality. Citizens expected a municipality to have an active role in environmemal protection and there may be a need for the city to develop a more comprehensive environmental management approach. Jim Coulter, Director of Water/Wastewater, discussed organizational steps necessary to establish an environmental department. A matrix approach would be considered that would coordinate many facets of environmemal managemem within the city and would require clear policy direction, at all levels within the organization, for successful implementation. Such a re- organization would help unify many of the currem environmemal activities. The proposed environmemal departmem would consist of a manager, a policy specialist, a special projects coordinator- municipal lab, watershed protection, and industrial pretreatment divisions. Council discussed the addition of air quality testing to report to other agencies. Coulter stated that a crucial issue regarding regulatory concerns was to not harm the established regulatory requiremems by spreading currem resources over too many areas of responsibility. There was also a need to have enough resources to be able to perform anticipatory research and City of Demon City Council Minutes August 10, 2004 Page 3 other work to ensure that adequate resources were in place to meet current and near-future regulatory challenges. Council discussion included: The Council Environmental Committee needed to meet soon to formulate an overall city policy for environmemal compliance. Consider inspection techniques for small outside engines such as weed trimmers, lawnmowers, etc. City wide clean up days were needed for hazardous wastes. More publication of city efforts in these areas was needed for public information. Add to the city website information on programs provided/efforts. 3. Suggestions for Agenda Committee on future agenda items and/or placement of items for upcoming agendas. City Manager Conduff stated that Council had indicated additional topics for discussion. He suggested that Council might want to prioritize these topics along with the planning session issues. He suggested Council bring back high priority issues and reschedule planning session topics or use one of the planning sessions to reprioritize. Feedback on the issues would be reviewed by the Mayor and Mayor Pro Tem at the Agenda Committee meeting and then presemed to the Council. These topics could also be included on Monday's breakfast meeting. With no further business, the meeting was adjourned at 5:40 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 16, 2004 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Monday, August 16, 2004 at 7:30 a.m. in the City Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, Redmon and Thomson. ABSENT: None 1. The Council received a report, held a discussion, and gave staff direction regarding the 2004-2005 Budget and the 2004-2009 Capital Improvement Program, including a draft charge to the special citizens advisory committee. Mayor Brock suggested a listing by Council on what was felt to be the remaining outstanding unresolved budget issues. She felt that the major issues included the debt service from the 1996 drainage bonds and whether to transfer that back to the general fund budget; utility transfers in general; police funding; cutback in library and parks hours; and park maintenance. Council Member Mulroy requested a citywide table of organizational labor costs. Mayor Pro Tem McNeill noted that sales tax collections would be over budget by the end of the year. Council Member Mulroy questioned the deferral of the payment for general insurance from last year's budget to this year's budget. City Manager Conduff stated that that was an intentional decision based on the economy at the time. Past councils had held the line on tax increases and deferred certain payments. Council discussed the philosophy of deferring payments from a prior year to the next year and having to meet those costs in a future budget. Mayor Pro Tem McNeill stated that if property taxes were not raised to the proposed rate, items that would not be funded included the opening of the Emily Fowler Library, 1/4 of the cost of the health insurance increase, and a reduction in social services funding. He questioned how those items could be prioritized, as those three items were not ones to cut. The citizens had voted for those items and now they needed to pay for them. He was not sure that Council was asking for enough of a tax increase. Council Member Mulroy agreed that 3 cents might not be enough based on everything that needed to be done. Council discussed the cost of adding two new police officers, the philosophy of the vehicle take home policy and whether that policy was still affordable. Council Member Mulroy and Mayor Pro Tem McNeill suggested that the vehicle take home policy be examined to determine if the total number of vehicles was too large for the philosophy. City of Demon City Council Minutes August 16, 2004 Page 2 Council Member Montgomery felt it was a utilization factor as expensive pieces of equipment were only being used 50 hours a week at most. The City was paying for vehicles whether they were being used or not and he questioned if the City was getting the full value for the cost of the vehicle. Mayor Brock stated that another philosophical discussion was the fact that the 2000 bond election had scheduled to add an additional cent to fund bond programs but the Council at that time did not want to add that increase and raise taxes. The voters had authorized the additional increase but it had not been added. Council Member Mulroy felt it was not honest to keep taxes artificially low and then next year again have to try and keep up. Council discussed the proposed tax rate, the rollback tax rate and the effective tax rate. A street maintenance fee was also discussed relative to assisting with future CIP funding. Council expressed the negative effects of a rollback election and how services would be severely affected if a rollback election were successful. Mayor Pro Tem McNeill asked if the proposed 3% salary increase for employees was an across the board increase or merit increase. City Manager Conduff replied that it would be an across the board increase as a merit increase typically had a minimum and maximum increase associated with it and with a 3% increase the numbers would be very small. Council Member Thomson stated that public safety was an importam issue and he was committed to putting on more police officers. He was not sure that the function of a city was to fund social services and would be in favor of reducing the amoum of funding to social services in order to help with the budget. He liked the idea of $1 per person per population for funding of social services. Council Member Redmon agreed and felt that the City had a large number of nonprofit organizations that could pick up the funding for social services. Additional police officers could be hired if funding were reduced to social services. A proposal was made to reduce social services by 33% that would provide $98,330 for the budget and to reduce the budgeting for social services by one third for next three years in order to have the funding level percentage at $1 per person per population. Council discussion on the proposed reduction in social services funding included the consequences for such a reduction, the fact that Denton was much higher in funding for social services than many area cities, and a concern that a higher level of funding was attracting individuals to Denton for these services. Consensus of the Council was to reduce the social services funding by 1/3 across the board with first priority for the recaptured funds going to public safety. City of DeNon City Council Minutes August 16, 2004 Page 3 Council Member Mulroy indicated that his budget priorities would be to add one cent from the prior approved bond package for public safety; restore the library and recreation cemer hours; incrementally restore the maintenance of the parks to an acceptable level; and empower the City Manager to find additional ½% funding for an incentive based work environmem. Mayor Brock indicated that she would like to keep the tax rate under $.60. Mayor Pro Tem McNeill indicated that he would like to keep the increase at $.05. City Manager Conduff stated that staff understood the Council's priorities and would keep the tax increase at $.05 to accomplish what was needed to be done. Staff would also work to find a ½ cent in the budget to go with 3% proposed employee increase that would be implemented through merit increases. Consensus of the Council was to address street maintenance in the budget but with no figures at this time. Council Member Redmon questioned if a CIP would still be viable given the $.05 tax increase. Consensus of the Council was to continue with the CIP process. Council discussed the drainage issue relative to the 1996 drainage bonds and placemem of the debt. Council Member Mulroy listed his concerns as: Changes in the drainage structure were presemed at City Council and Public Utilities Board meetings. The PUB had three times voiced strong concerns on how the issue was being handled. He felt the issues had not been fully presented to community and that it created a new tax for general government money. Charging ROI and a franchise fee for a drainage fee was not correct. The drainage fee was not paying for new projects - it was paying back old debt. Mayor Pro Tem McNeill stated that ROI was not a separate line item for drainage and asked if it was a part ofwastewater. City Manager Conduff stated that it was budgeted under wastewater. Council Member Montgomery stated that if correct, how could the situation be rectified. He felt that the City could inform the citizens that this needed to be corrected and staff needed to show how to get back on track. Mayor Pro Tem McNeill stated that from a procedural standpoint, a prior Council had voted to make that change, and whether right or wrong, it was a legal action. The current Council had the ability to change it back. City of DeNon City Council Minutes August 16, 2004 Page 4 Council discussed the pros and cons of charging ROI and franchise fees on drainage. Consensus of the Council was to continue to very seriously examine the issue as soon as possible and get more information on the issue. Council then discussed the CIP program and the draft charge to the Advisory Committee, suggesting a few word changes to the charge. 2. The Council considered, discussed and debriefed outcomes on various local issues discussed at the Council Retreat of July 22 and 23, 2004 including without limitation: streets; planning, zoning, and developmem issues, including urban density, dowmown projects, gas well drilling, and residential development; economic development; customer service; government efficiency and operating procedures; public safety issues; utility budgeting and transfers; workplace diversity; local environmemal issues including code enforcemem and green building standards; transportation; and statewide issues like school funding and Council operating procedures. Council reviewed the list of action items from the council retreat and made suggestions/changes to the list. With no further business, the meeting was adjourned at 11:45 a.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 17, 2004 After determining that a quorum was presem, the City Council convened in a Work Session on Tuesday, August 17, 2004 at 5:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Redmon and Thomson. ABSENT: Council Member Mulroy 1. The Council received a report and held a discussion regarding the job descriptions and 2004 performance goals for the City Manager, City Attorney, and Municipal Judge. City Manager Conduff stated that a council subcommittee had been formed to review the job descriptions of the three council employees and 2004 performance goals had been set. Mayor Pro Tem McNeill, chair of the subcommittee, stated that the subcommittee had met with the three employees to review the job descriptions and had made minor changes. They also discussed the performance goals with the three employees and no changes had been made at the mid-year review. There was an item on the regular agenda for council approval of the job descriptions. Council Member Mulroy arrived at the meeting. 2. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for August 17, 2004. Regular Meeting of the City of Demon City Council on Tuesday, August 17, 2004 at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards Mayor Brock presemed a proclamation for "Alpha Company Day". B. August Yard-of-the-Momh Awards Mayor Brock presented August Yard of the Month Awards to: Chris and Ladene Therson Susan Blakenship David and Judy Nichols Mark and Shara Collins Mary Dunbar City of DeNon City Council Minutes August 17, 2004 Page 2 Karina and Ken Smith Watersmart - Wayne Mitchell and Marcia Staff Business - Oak Meadows Apartmems C. Recognition of staff accomplishments City Manager Conduffpresemed staff accomplishmems to Council. 3. CITIZENS REPORTS A. The Council received citizen reports from the following: 1. Carolyn Phillips regarding the elderly Black and unfriendly liens. Ms. Phillips was not present at the meeting. 2. Alan Johnson regarding the Planning and Zoning Commission and the gas well ordinance. Mr. Johnson was not present at the meeting. 3. Dessie Goodson regarding responsibility. Ms. Goodson stated that she had asked to speak on an agenda item at the last council meeting and was not afforded the opportunity to do so. She had questions regarding her utility bill and her charges and would not pay the charges umil her questions had been answered. 4. Phillip Young regarding police protection. Mr. Young stated he was pleased that the Council was moving forward with the addition of police officers in the proposed budget even with the possibility of a tax increase. He felt it was vital to cominue with the community based policing effort. There needed to be enough officers to keep abreast of what was happening in the community. 4. CONSENT AGENDA Mayor Brock requested that Items F and G be considered separately. McNeill motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Items F and G. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Items F and G were considered. Mark Nelson, Director of Airport and Transit Operations, stated that each agreement was an opportunity to extend the current agreement with TWU and UNT to allow students, staff and City of DeNon City Council Minutes August 17, 2004 Page 3 faculty access to the LINK system. The universities paid for the service based on the amount of ridership. Mayor motioned, Kamp seconded to adopt the ordinance for Item F. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. Mayor motioned, Thomson seconded to adopt the ordinance for Item G. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. mo 2004-225 - An ordinance authorizing the City Manager to execute a Sewer Main Cost Participation Agreement between the City of Denton, Texas and Windsor Farms Partners, L.P. for the city's participation in the oversizing of sewer mains; and in accordance with the terms and conditions of this ordinance; authorizing the expenditure of funds therefor; and providing an effective date. Bo 2004-226 - An ordinance of the City of DeNon, Texas, authorizing the City Manager to execute an agreemem between the City and the Owsley Community School to provide for improvements to the facility at 2535 Charlotte Street, Denton, Texas; authorizing the expenditure of funds therefor, not to exceed $35,000 and providing for an effective date. Co 2004-227 - An ordinance of the City Council of the City of DeNon, Texas, approving an agreemem between the City of DeNon and the Cumberland Presbyterian Children's Home; providing for the use of funds for developmem for transitional housing; authorizing the City Manager to execute the agreement and to expend funds with respect to the agreement; and providing for an effective date. Do Approved the job descriptions for the City Manager, City Attorney, and Municipal Judge. mo 2004-228 An ordinance authorizing the Mayor to execute an Interlocal Cooperation Agreement between the City of Denton and the Texas Department of Public Safety ("TDPS") to implemem the provisions of Chapter 706 of the Texas Transportation Code for the Denial of Driver's License Renewal upon failure to appear or failure to pay a judgment in Municipal Court; authorizing the payment of fees pursuant to the provisions of said agreement; and providing for an effective date. Fo 2004-229 An ordinance authorizing the Mayor to execute an Interlocal Agreemem between the City of DeNon and Texas Woman's University to provide for off-campus motor carrier passenger service for TWU students, staff and faculty; and providing for an effective date. Go 2004-230 An ordinance authorizing the Mayor to execute an Interlocal Agreemem between the City of DeNon and University of North Texas to provide City of DeNon City Council Minutes August 17, 2004 Page 4 for off-campus motor carrier passenger service for UNT students, staff and faculty; and providing for an effective date. Ho 2004-231 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of Polymer Concrete Pull Boxes for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 3190 - Concrete Polymer Pull Boxes awarded to Techline, inc. in the estimated amoum of $72,590). 2004-232 - An ordinance approving the expenditure of funds for the purchase of Video Cameras and Comrollers for the City of DeNon Traffic Comrol Department; available from only one source in accordance with the provisions of State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3197 - Purchase of Video Cameras/Comrollers for Traffic Signals to Paradigm Traffic Systems, Inc. in the amount of $61,640.10). Jo Approved a request for an exception to the Noise Ordinance for the purpose of a music festival, The No Name Fest, conducted by Creatures for Awareness, in the parking lot located behind Lucky Lou's at 1207 W. Hickory, on Saturday, August 28, 2004, from 2:00 p.m. to 9:00 p.m. The exception was specifically requested for an increase in the maximum allowable decibels for an outdoor music festival. 5. PUBLIC HEARING A. The Council held a public hearing and considered adoption of an ordinance amending Subchapter 35.7 (Special Purpose and Overlay Districts) of the DeNon Developmem Code. The Planning and Zoning Commission recommended approval (6-0). (SI04-0018, Historic District AmendmenO Kelly Carpenter, Director of Planning and Development, stated that this was a housekeeping item. The historic district regulations were not listed in the Development Code but rather in the former zoning code. This ordinance would add those regulations to the Developmem Code. There were no changes from the regulations in the prior code. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2004-233 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING PORTIONS OF SUBCHAPTER 7 OF THE DENTON DEVELOPMENT CODE PERTAINING TO HISTORIC PRESERVATION AND THE OAK-HICKORY DISTRICT; PROViDiNG City of DeNon City Council Minutes August 17, 2004 Page 5 FOR THE INCLUSION OF THE CURRENT RULES AND REGULATIONS PERTAINING TO HISTORIC PRESERVATION AND THE OAK-HICKORY HISTORIC DISTRICT TO THE DENTON DEVELOPMENT CODE, WITHOUT ANY SUBSTANTIVE CHANGES; PROVIDING A PENALTY CLAUSE WITH A MAXIMUM FINE OF $2000.00 PER DAY FOR A VIOLATION THEREOF; A SEVERABILITY CLAUSE; AND AN EFFECTIVE DATE. (S 104-0019) Thomson motioned, Mulroy seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council reviewed, discussed, and considered approval of the Charge to the Special Citizens Advisory Committee to study capital improvement needs. City Manager Conduff stated that staff had incorporated the suggested changes made the previous day by Council. Mulroy motioned, Kamp seconded to approve the charge to the Special Citizens Advisory Committee. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. The Council considered appoimmems to a special Citizens Advisory Committee to study capital improvemem needs for projects to be included in a February 2005 bond election. Council Member Momgomery appoimed Herbert Holl, June Barry and Carol Collins. Council Member Redmon appoimed Alma Clark, Fred Hill, Sherri McDade, Robert Bell, Rick Woolfolk, Luz Briseno and Maria Rivera. Mayor Brock appoimed Marc Culp, David Vanderlaan and John Priddy. Mulroy motioned, Kamp seconded to approve these appointments. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. and Commissions. The Council considered nominations/appoimmems to the City's Boards Mayor Brock announced that she had reappointment Bill Giese and Rudy Moreno to the Denton Housing Authority. Mulroy motioned, McNeill seconded to approve the prior nomination of Bob Bland to the Public Utilities Board. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. City of Demon City Council Minutes August 17, 2004 Page 6 D. New Business Council suggested the following items for future agendas: 1. Mayor Pro Tem McNeill requested Council revisit its charge to the Airport Advisory Committee. 2. Council Member Redmon requested information relative to the Police Department and the factor of number of officers on the force. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda City Manager Conduff did not have any items for Council. F. There was no Closed Meeting held at this meeting. G. There was no official action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. With no further business, the meeting was adjourned at 7:12 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 18, 2004 Join Meeting of the City of DeNon City Council and the DeNon IndependeN School District Board of Trustees on Wednesday, August 18, 2004 at 12 noon in the Council Work Session Room. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, and Thomson. ABSENT: Council Member Redmon 1. Mayor Brock called the meeting to order and announced a quorum of the Council was present. 2. The Council received a report and held a discussion regarding an update on the outdoor learning center. Howard Martin, Assistant City Manager, presented an update on the Clear Creek Natural Heritage CeNer. Trails were being cleared and maiNained for public use. There was a possibility that additional property could be acquired in the area. Staff was also working on obtaining grants for wetland mitigation. 3. The Council received a report and held a discussion regarding an update on bond issues. The DISD preseNed a video on their bond package. Discussion included where future growth would be in the district and the anticipation that commercial development would occur around the new growth. 4. The Council received a report and held a discussion regarding an update from DISD regarding the athletic center. Dr. Braswell, Superintendent of Schools, stated that the new athletic stadium was almost complete. Long Road would be upgraded and opened by September 3rd. Opening ceremonies were being planned and marketing strategies for the stadium were being considered. 5. The Council received a report and held a discussion regarding an update from DISD regarding enrollmeN. DISD staff presented opening day attendance figures. There was a 5% growth over last year after the 1st day of school. It was felt that attendance would increase during the next several days due to late arrivals. 6. The Council received a report and held a discussion regarding an update on upcoming legislative issues. Dottie Palumbo, Assistant City Attorney, presented information on possible legislative issues. It was discussed that cooperation on the local level among the various entities should be maiNained. City of Demon City Council Minutes August 18, 2004 Page 2 7. The Council held a discussion regarding an annual calendar. Consensus of the Council and Board of Trustees was to establish meeting times on a yearly basis, when possible. Wednesday at noon was a preferred day and time. The next two meetings would be held on November 17th with the DISD hosting and February 9, 2005 with the City hosting. 8. Determine next meeting date. This item was considered with Item #7. 9. With no further business, the meeting was adjourned at 1:50 p.m. EULINEBROCK MAYOR CITY OFDENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 24, 2004 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Tuesday, August 24, 2004 at 4:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, and Mulroy. ABSENT: Council Members Redmon and Thomson. 1. The Council received a report, held a discussion and gave staff direction regarding Tax Increment Financing (TIF) Districts and Public Improvement Districts (PID). David Medanich and Jeff Leuschel, First Southwest Company, made a presentation regarding economic development tools. One economic development tool to consider was a tax increment reinvestment zone. Medanich reviewed the definition of a tax increment reinvestment zone, what could be funded from such a zone, sources of revenue, who could participate in a tax increment reinvestment zone, criteria for a zone and how it was created. A second economic development tool was a public improvement district. Medanich explained what a PID was, what could be funded with a PID, how it was created, sources of revenue, and financing alternatives. A third economic development tool was a Chapter 380 Economic Development Program. Medanich reviewed the purpose and incentives authorized with a Chapter 380 Economic Development Program. Medanich summarized that the project needed to be defined first and then determine what incentives, if any, may apply. Each project needed to be evaluated on its own merit. Successful economic development often included multiple funding options. Regardless of economic development policy, all proposals should be examined and the financial advisor and bond counsel involved early in order to save the project time and money. Council Member Redmon arrived at the meeting. Council discussed the above outlined economic development tools including the authority of a TIF Board of directors, and whether a TIF could be used for a conference center/hotel. Bill Dahlstrom, Holigan Corporation, reviewed the proposed development at the Villages of Carmel. He stated that it was hoped that a TIF could be used for roadway improvements for Pockrus Page Road and Lakeview Blvd. A PID was also suggested to overlay the entire district for public improvements and the maintenance of those public improvements. 2. The Council received a report, held a discussion and gave staff direction regarding single- family and non-single family development standards. Larry Reichhart, Assistant Director of Planning and Development, reviewed single family design standards from the previous code and the existing code plus the potential issues dealing with minimum design standards. He presented single-family design standards including characteristics of quality design and options to consider such as increasing design standards, requiring minimum lot sizes or a combination of both. Council discussion included: · Provide more options to developers in order to provide for quality housing. · Consider infill development/redevelopment standards. · Consider how many more tax credit housing developments to support in the City. City of Demon City Council Minutes August 24, 2004 Page 2 · The effective date of the Development Code - February 2002. · Number of homes built under the new code - 50 homes to date. · Date new standards would be applicable-at what phase in development - time of preliminary plat. · Effect new standards would have on developmems in progress-acceptance of preliminary plat would not comply with new standards. · Consider minimum square footage regulation on homes. · Concern regarding the number of multi-family units in Denton. · Concern about the low occupancy rate for current multi-family units. · Ratio of single-family to multi-family development may need to be altered. Following the completion of the Work Session, the Council convened in Closed Session to consider the following: 1. Closed Meeting: DELIBERATIONS REGARDING CERTAIN PUBLIC POWER UTILITIES: COMPETITIVE MATTERS - UNDER TEXAS GOVERNMENT CODE SECTION 551.086. The Council received a presentation and information from staff pertaining to the Demon Municipal Electric ("DME") Proposed Annual Budget for the Fiscal Year 2004-2005, consisting of competitive electric and commercial information respecting the details of the present and future operational and financial plans and strategies of DME; and discussed, deliberated, considered, and provided Staff with direction regarding such matters. PRESENT: Mayor Brock; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery, Mulroy, Redmon and Thomson. ABSENT: None Special Called Meeting of the City Council on Tuesday, August 24, 2004 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. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered approval ora resolution of the City Council of the City of Demon, Texas placing a proposal on the September 21, 2004, City Council Public Meeting Agenda to adopt a 2004 tax rate that will exceed the lower of the rollback rate or 103 percent of the effective tax rate; calling a public hearing on a tax increase to be held on September 7, 2004, requiring publication of a Notice of Public Hearing on a tax increase in accordance with the law; and providing an effective date. City of Demon City Council Minutes August 24, 2004 Page 3 City Manager Conduff stated that this resolution would only call for the public hearing and set the time to vote on the rate. This was only a notice to the public with no action required by the Council at this time. The following resolution was considered: No. R2004-040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 21, 2004, CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2004 TAX RATE THAT WILL EXCEED THE LOWER OF THE ROLLBACK RATE OR 103 PERCENT OF THE EFFECTIVE TAX RATE; CALLING A PUBLIC HEARING ON A TAX INCREASE TO BE HELD ON SEPTEMBER 7, 2004, REQUIRING PUBLICATION OF A NOTICE OF PUBLIC HEARING ON A TAX INCREASE IN ACCORDANCE WITH THE LAW; AND PROVIDING AN EFFECTIVE DATE. Mulroy motioned, McNeill seconded to approve the resolution. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Redmon "aye", and Mayor Brock "aye". Motion carried unanimously. A. New Business The following items of New Business were suggested by Council for future agendas: 1. Council Member Momgomery asked that staff explore the possibility of improvements to Taliaferro Street between Elm and Locust. B. Items from the City Manager City Manager Conduff did not have any items for Council. C. Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Council cominued with the Closed Meeting. D. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned. EULINEBROCK MAYOR CITY OFDENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Finance Kathy DuBose SUBJECT Consider approval of a Resolution appointing members to the Board of Directors of the North Texas Higher Education Authority; and declaring an effective date. BACKGROUND The North Texas Higher Education Authority, Inc. (NTHEA) was established as a non-profit corporation for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans. The cities of Arlington and Denton exercise the powers enumerated under Section 53.47 of the Texas Education Code and the directors of the Authority are appointed by the cities. Under Section 53.47 the Authority may issue revenue bonds or borrow money to provide funds for the purchase of student loans guaranteed under provisions of the Higher Education Act of 1965, as amended. The Authority issued its first revenue bonds for such purpose in 1979. PRIOR ACTION/REVIEW At its August 12, 2004 meeting the North Texas Higher Education Authority Board took action to nominate individuals to Places 2, and 4 on its board for the term October 1, 2004 through September 30, 2005. The incumbents, Mr. Governor Jackson, Place 2, Mr. Dan Tonn, Place 4, have expressed a willingness to serve another term. Therefore, the names of Mr. Governor Jackson, and Mr. Dan Tonn are respectfully submitted for the Council's consideration for reappointment. FISCAL INFORMATION There is no fiscal impact to the City of Denton. EXHIBITS Letter from NTHEA Resolution Respectfully submitted: Kathy DuBose, Assistant City Manager Fiscal and Municipal Services North Texas Higher Education Authority, Inc. Higher Education Servicing Corporation August 13, 2004 Honorable Euline Brock Demon City Council City of Denton 215 East McKinney Denton, Texas 76201 Re: North Texas Higher Educatmn Authority, Inc, Appointment for Places 2 and 4 - Dear Mayor Brock: At its August 12, 2004 meeting, file North Texas Higher Education Authority Board took action to nominate ~nclividuals to Places 2 and 4 on its board for thc tem~ October 1, 2004 through September 30, 2006. The incumbents, Governor Jackson for Place 2 and Mr. Dan Tram for Place 4, have expressed a willingness to serve another troth. Therefore, the names of Mr. Governor Jackson and Mr, Daniel Torm are respectfully submitted for the City Council's consideration for re-appointment. I will very much appreciate your notifying me of the action taken by the City Council on thc nominees. Please extend our continued thanks to the individual Council members fbr their support of thc Authority and its activities. Sincerely, President o~/~/' ' .... 1250 E. Copeland Rd., Strife 200 , Arlington, Texas 76011-4921 · (817) 265-9158 · wwxv. n. thca.com S:\Our Documcnts\Rosolutions\04\Nor/h Toxas llighcr Education Au/hority.doc RESOLUTION NO. A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE NORTH TEXAS HIGHER EDUCATION AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for Places 2 and 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. have expired; and WHEREAS, the Board has nominated Mr. Governor Jackson - Place 2 and Mr. Dan Tonn - Place 4 on the Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That Mr. Governor Jackson is hereby reappointed to Place 2 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2004 and continuing through September 30, 2006. SECTION 2. That Mr. Dan Tonn is hereby reappointed to Place 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2004 and continuing through September 30, 2006. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: Legal Department CM/DCM/ACM: Ed Snyder, Deputy City Attorney SUBJECT: AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING PAYMENT OF THE AWARD OF SPECIAL COMMISSIONERS INTO THE REGISTRY OF THE COURT IN CONDEMNATION PROCEEDING STYLED THE CITY OF DENTON, TEXAS V. ED WOLSKI, ETAL., CAUSE NO. ED-2003-01178 PENDING IN THE PROBATE COURT OF DENTON COUNTY, TEXAS; AND DECLARING AN EFFECTIVE DATE. BACKGROUND: On June 3, 2003, the City Council passed Ordinance No. 2003-162, authorizing the City to acquire the subject property and to institute condemation proceedings if necessary. A Statement in Condemnation was filed with the Probate Court on September 15, 2003. The Special Commissioners' hearing in this matter was held on March 24, 2004, and resulted in an award of $210,000. OPTIONS: Pay Award of Special Commissioners into the Registry of the Probate Court and proceed with Airport runway expansion project. RECOMMENDATION: The Legal Department recommends the City pay the award of the Special Commissioners into the Registry of the Probate Court. PRIOR ACTION/REVIEW: On June 3, 2003, by Ordinance No. 2003-162, the City Council found that a public necessity existed and that public welfare and convenience required the acquisition of real property title and interests for the subject property. FISCAL INFORMATION: $210,000.00. EdSnyder ;. / Deputy Clt?o?aey S:\Our Docum~nt~\Ordinances\04\wolski I I acre award ordinan¢¢.do~ ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING PAYMENT OF THE AWARD OF SPECIAL COMMISSIONERS INTO THE REGISTRY OF THE COURT IN CONDEMNATION PROCEEDING STYLED THE CITY OF DENTON, TEXAS V. ED WOLSKI,, ET AL., CAUSE NO. ED-2003-01178 PENDING IN THE PROBATE COURT OF DENTON COUNTY, TEXAS; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Correction Award of Special Commissioners, attached hereto as Exhibit "A", in condemnation proceeding styled The Cay of Denton, Texas v. Ed Wolski, et al., Cause No. ED-2003-01178 pending in the Probate Court of Denton County, Texas is hereby authorized to be paid into the Registry of the Probate Court.. SECTION 2. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ., 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBE~~TORNEY BY: t,-" -- ' CAUSE NO. ED-2003-01178 CITY OF DENTON, TEXAS Plaintiff ED WOLSKI, TRUSTEE, VIRGINIA FRYMAN, MARGARET RUSSELL, VELMA EDITH CAMPBELL, BETTY DURHAM, RICHARD CLAYTON DIJRttAM, AND DEVON ENERGY OPERATING COMPANY, L.P. Defendants CONDEMNATION PROCEEDINGS FILED IN THE PROBATE COURT' OF DENTON COUNTY, TEXAS CORRECTION AW.4JID OF SPECIAL COMMISSIONERS On August 25, 2004 the special commissioners in this condenmation proceeding signed the Award of Special Commissioners (the "Award") which was duly filed with the Judge of said court on August 26, 2004. It has come to the commissioners' attention that there was au inadvertent error in the legal description of the property being condemned in that the two line call on page 3 of this Correction Award of Special Commissioners (the "Correction Award") which is in bold type was not included (the "Omitted Call"). The legal description of the subject property in the Statement of Condemnation is correct as it contains the Omitted Call. This Correction Award is being signed by the commissioners for the sole purpose of correcting the legal description of the subject property to conform to the Statement of Condemnation so as to include the Omitted Call. In all other respects this Correction Award is the same as the Award. On the 25th day of August, 2004, in the City of Denton, Denton County, Texas, the above styled proceedings in eminent domain came on to be heard before the undersigned, three disinterested freeholders of Denton County, Texas, heretofore appointed as Special Commissioners, by the Judge of the Probate Court of Denton County, Texas to assess damages caused by these proceedings, and came the Petitioner, the City of Denton, Texas, a home-role municipal corporation, situated in Denton County, Texas. Also came Defendants as hereinafter mentioned, and all parties having mmounced ready, the Commissioners proceeded to hear evidence and arguments of the parties, and made the following findings: I. That on the 15th day of September, 2003, the City of Denton, Petitioner, filed its Statement in Condemnation, which was subsequently amended, with Petitioner's First Amended Statement in Condemnation being filed on or about May 26, 2004 (the "Statement"). In the Statement, Petitioner, upon the facts and for the purposes therein stated, seeks judgment vesting in the City of Denton, Texas fee simple title in that certain tract or parcel of land containing 11.441 acres, together with improvements thereon and appurtenances thereto (the "Property") as more particularly described below, save and except oil and gas interests, of the owners of said oil and gas interest but without having the right to use the sm'face of the property for the extraction of such oil and gas interests: FIELD NOTES to all that certain tract of land situated in the J. Scott Survey, Abstract Number 1222 in the City and County of Denton, Texas and being a part of the called 125.6898 acre tract described in the deed from G.C. Ledyard, Jr., Trustee to Ed Wolski, Trustee and Vir~nia Fryman recorded in Volume 2895 Page 470 of the Real Property Records of Denton County, Texas; the subject tract being more particularly described as follows: BEGINNING for the Northwest comer of the tract being described herein at a P.K. nail set for the most Northerly Northwest comer of said 125.6898 acre tract in Jim Christal Road in the apparent North line of said Survey at the Northeast comer of a called 5.000 acre tract 1II described in the deed to Ed Wolski, Trustee recorded in Volume 2886 Page 224 said Real Property records; THENCE North 89 Degrees 58 Minutes 45 Seconds East with said North line in said Road a distance of 207.40 feet to a P.K. nail set for the Northeast comer of the herein described tract; Award of Special Commissioners - Page 2 THENCE South 08 Degrees 37 Minutes 50 Seconds West a distance of 1089.00 feet to a capped iron rod set for the Southeast comer of the herein described tract, in the North line of a called 16.174 acre City of Denton tract described in the instrument filed under Clerk's File Number 94-R0071011 Real Property Records; THENCE North 89 Degrees 52 Minutes 36 Seconds West with the North line of said 16.174 acres a distance of 578.22 feet to a capped iron rod set on the East line of Masch Branch Road; THENCE North 00 Degrees 02 Minutes 12 Seconds East along the East line of said Road a distance of 679.15 feet to a capped iron rod set for the Northwest comer of the herein described tract and in the Soufl~ line of said 5.00 acre tract; THENCE North 89 Degrees 58 Minutes 52 Seconds East with the South line thereof a distance of 533.80 feet to a found ¼" iron rod for the Southeast corner of said 5.000 acres; THENCE North with the East line thereof a d/stance of 396.02 feet to the PLACE OF BEGINNING and enclosing 11.441 acres of land. The Property is being acquired for Denton Municipal Airport expansion purposes. II. That upon consideration of the Statement, duly filed with the Court, the Judge of said Court, did appoint Greg Boling, Larry Collister, and Miller Davidge as Special Commissioners to assess damages caused by the talcing of the Property (called the "Special Commissioners" ). Thereafter, the said Special Commissioners, qualified as such, each took the Oath prescribed by law, which Oaths are on file with the papers in this cause. That after having so qualified, said Special Commissioners by written order, designated and appointed the 25th day of August, 2004, ~tt 9:00 a.m. in the City Hall Work Session Room at City Hall, 215 East McKinney, Denton, Denton County Texas, as the date, time, and place for hearing said Statement and the parties, said date being the earliest practical time and such place being in the County in which the Property is situated. Award of Special Commissioners -Page 3 Vo That a written notice of such date, time and place of the hearing was issued by the Special Commissioners and the Defendants, Ed Wolski, Trustee, Virginia Fryman, Margaret Russell, Velma Edith campbell, Betty Durham, Richard Clayton Durham, and Devon Energy Operating Company, L.P., were duly served with notice and notified in the time and manner required by law of such hearing and the time and place thereof. VI. That on the 25th day of August, 2004, said Special Commissioners did convene and the following named parties appeared in person or by their attorneys: Edwin M. Snyder, attorney for the City of Denton, Petitioner Ken Wright, Attorney for Virginia Fryman Tom Dirickson, Attorney for Ed Wolski, Trustee and announced ready for such hearing and said Special Commissioners proceeded to hear evidence as to the damages to be sustained by the owners or parties having an interest in the Property by reason of the taking of the Property. After hearing and considering the evidence, said Special Commissioners did fred and determine and accordingly assess damages to be paid by the City of Denton, Texas, according to the rules of damages set forth in Title 4, Chapter 21 of the Texas Property Code as follows: 1. Total damages to be paid, including damages to the remainder if any, by City of Denton, Petitioner, jointly to Defendants Ed Wolski, Trustee, Virginia Fryman, Margaret Russell, Velma Edith Campbell, Betty Durham, Richard Clayton Durham, and Devon Energy Operating Company, L.P.~ is.in the amount of Two Hundred Ten Thousand Dollars and 00 cents ($210,000.00). The above award is apportioned as follows: Award of Special Commissioners - Page 4 Ed Wolski, Trustee: $105,000.00 Virginia Fryman: $105,000.00 Margaret Russell, Velma Edith Campbell, Betty Durham, Richard Clayton Durham: $0 Devon Energy Operating Company, L.P.: $0 2. The costs of these proceedings are adjudged against the City of Denton. SIGNED THIS THE 30th day of August, 2004. The foregoing Correction Presiding Judge of the Probate ,2004. SPECIAL COMMISSIONERS Award of Special Commissioners was filed with me the Court of Denton County, Texas, on the day of JUDGE PRESIDING Award of Special Commissioners - Page 5 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Parks and Recreation Howard Martin, 8232 SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of a music festival, the 7th Annual Blues Festival, sponsored by the Denton Black Chamber of Commerce. The event will take place at the North Texas Fairgrounds on Friday, September 17th from 4:30 until 11:00 p.m. and Saturday, September 18, 2004, from 4:00 p.m. to 12:00 p.m. The exception is specifically requested for an increase in the maximum allowable decibels for an outdoor music festival. BACKGROUND Elihu Gillespie, with Demon Black Chamber of Commerce, has submitted a request for an increase in the noise level from 70 to 75 decibels for the 7th Annual Blues Festival. The event is expected to have 2,500 people in attendance each night. Friday night's concert theme will be "Cool to Attend School" and will be an alcohol free night. Rap music will be featured on Friday night. Saturday night will feature blues music. There will be an admittance fee of $10.00 per person and children under 12 are free. The proceeds from the festival will be for the "Young Entrepreneur Leadership" mentoring program and for scholarships to be awarded at the annual Demon Black Chamber of Commerce Banquet. Amplified sound will be used for both music and public announcemems. PRIOR ACTION/REVIEW (Council, Boards or Commissions) None FISCAL INFORMATION None EXHIBITS 1. Request Letter from the Denton Black Chamber of Commerce Respectfully submitted: Janet Simpson Director of Parks and Recreation Prepared By: Janie McLeod, Community Events Coordinator DENTON BLACK CHAMBER OF COMMERCE Septsmber !, 2004 Janie McLeod Communi~ Events Coordina~r 321 E. McKinney Denton, TX 76201 Dear Ms. McLeod, and members of the DenOn Ci~ Council: This year the Denton Black Chamber of Commerce will host iR 7m annual blues festival; Denton Bluesfest 2004. This event will be held at the No~h Texas State Fairgrounds on Fdday, September 17, 2004, and Saturday, September 18, 20~. The Friday event times are 4:30 p.m. until ~ ~, and the focus will be on our high school and college Youth. Ente~ainment will feature nationally known Rap and Hip Hop a~ists. The Saturday times am 4:00 p.m. until ~. and will feature conventional Blues with national Blues legend Bobby Blue Bland as well as regional and local blues a~ists. Proceeds from this event will be used to help fund our annual scholarship and Young Minori~ Entrepreneur Program. am requesting an exception to the annual event since this event ends at ~1+3¢~ on both nights. We are requesting an exception for the houm of operation and for a sound level not to exceed 70 dba, If you have any questions, please contact me at (972) 347-3252 at your earliest convenience. Elihu Gillespie, Chairman Denton Black Chamber of Commerce R(). Box 51026 Dec,tom Texas 762(i,6 Phone (940) 686-4376 Fax (940) 382-9695 E-mail: i n i~br~t:~demo;nblackchamber;com EXHIBIT 1 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Fiscal Operations Kathy DuBose SUBJECT Hold a Public Hearing on a proposal to adopt a tax rate of .59815 per $100 valuation, which will exceed the lower of the rollback rate or 103 percent of the effective tax rate. BACKGROUND In the Friday, July 30, 2004, Reading File, staff provided Council with a copy of the required notice of effective tax rate calculation to be published in the Sunday, August 1 newspaper. Municipalities are required to publish their rollback tax rates in the newspaper, along with the effective tax rate and other required schedules. The rollback tax rate divides the overall property taxes into two categories--maimenance and operations (M&O) taxes and debt service taxes. By law, the rollback rate for taxing units are set at an eight percem (8%) increase in operating (M&O) taxes. The effective tax rate is generally the property taxes divided by the current year's taxable value of properties that were on the tax roll in both years. This rate excludes taxes on properties no longer in the taxing unit and also excludes the currem taxable value of new properties (growth). The City of Demon's effective rate is $.54070/$100 valuation and the rollback rate is $.58155/$100 valuation. The Texas Property Tax Code mandates specific publications to be provided by the City. The code specifies that "When a proposed rate exceeds the lower of the rollback rate or 103 percent of the effective rate, the taxing unit's governing body must vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item." The governing body must schedule a public hearing on the proposal, publish a quarter-page notice notifying the public of the hearing, and publish a second quarter-page notice before adopting the tax rate. While the proposed 2004-05 budget includes a .59815 tax rate, it exceeds 103% of the effective tax rate as well as the rollback tax rate and requires a public hearing. ESTIMATED SCHEDULE 08/24/04 08/29/04 09/07/04 09/12/04 09/21/04 Vote to place Proposal on Future Agenda Publish Required Notice Hold Public Hearing Publish Second Required Notice Adopt Tax Rate Agenda Information Sheet September 7, 2004 Page 2 PRIOR ACTION/REVIEW On August 5 and August 16, 2004, Council met and discussed the tax rate. FISCAL INFORMATION The proposed property tax rate is $.59815/$100 valuation for the 2004-05 proposed budget. EXHIBITS Notice of Public Hearing Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations Notice of Public Hearing on Tax Increase The City of Denton, Texas will hold a public hearing on a proposal to increase total tax revenues from properties on the tax roll in the preceding year by 10.6 percent. Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted. The public hearing will be held on September 7, 2004, at 6:30 p.m. at the City Council Chambers in City Hall located at 215 E. McKinney Denton, Texas 76201. FOR the proposal: AGAINST the proposal: PRESENT and not voting: ABSENT: Mayor Brock and Mayor Pro Tern McNeill, Council Members: Montgomery, Mulroy, Thomson, Kamp, Redmon The following table compares taxes on an average home in this taxing unit last year to taxes proposed on the average home this year. Again, your individual taxes may be higher or lower, depending on the taxable value of your property. Average residence homestead value Last Year This Year $117,730 $120,498 General exemptions available (amount available on the average homestead, not including senior citizen's or disabled person's exemptions) $5,000 $5,000 Average taxable value $112,730 $115,498 Tax Rate .54815/$100 .59815/$100 Tax $617.92 $690.85 Under this proposal, taxes on the average homestead would increase by $72.93 or 11.8 percent compared with last year's taxes. Comparing tax rates without adjusting for changes in property value, the tax rate would increase by 5¢ per $100 of taxable value or 9.1 percent compared to last year's tax rate. These tax rate figures are not adjusted for changes in the taxable value of property. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: September 7, 2004 Management and Budget Kathy DuBose SUBJECT Hold a public hearing and receive citizen input on the 2004-05 proposed budget. BACKGROUND City Charter and State Law require that prior to budget adoption, a public hearing be conducted to allow citizens the opportunity to provide input on the proposed budget. The required notice has been published and a public hearing has been scheduled as required. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The proposed budget was delivered to City Council on July 30, 2004 and was discussed at budget workshops held on August 5, and August 16, 2004. FISCAL INFORMATION The proposed 2004-05 budget totals $353,700,089 in estimated resources and $352,875,571 in estimated expenditures. Respectfully submitted: Kathy DuBose Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose SUBJECT Consider a resolution of the City Council of the City of DeNon, Texas announcing that it will vote on a tax rate at its regularly scheduled meeting of September 21, 2004; providing for publication of notice of such vote on the tax rate; and providing an effective date. BACKGROUND In the Friday, July 30, 2004, Reading File, staff provided Council with a copy of the required notice of effective tax rate calculation to be published in the Sunday, August 1 newspaper. Municipalities are required to publish their rollback tax rates in the newspaper, along with the effective tax rate and other required schedules. The rollback tax rate divides the overall property taxes into two categories--maimenance and operations (M&O) taxes and debt service taxes. By law, the rollback rate for taxing units are set at an eight percem (8%) increase in operating (M&O) taxes. The effective tax rate is generally the property taxes divided by the current year's taxable value of properties that were on the tax roll in both years. This rate excludes taxes on properties no longer in the taxing unit and also excludes the currem taxable value of new properties (growth). The City of DeMon's effective rate is $.54070/$100 valuation and the rollback rate is $.58155/$100 valuation. The Texas Property Tax Code mandates specific publications to be provided by the City. The code specifies that "When a proposed rate exceeds the lower of the rollback rate or 103 percent of the effective rate, the taxing unit's governing body must vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item." The governing body must schedule a public hearing on the proposal, publish a quarter-page notice notifying the public of the hearing, and publish a second quarter-page notice before adopting the tax rate. While the proposed 2004-05 budget includes a .59815 tax rate, it exceeds 103% of the effective tax rate as well as the rollback tax rate and requires a public hearing. ESTIMATED SCHEDULE 08/24/04 08/29/04 09/07/04 09/12/04 09/21/04 Vote to place Proposal on Future Agenda Publish Required Notice Hold Public Hearing Publish Second Required Notice Adopt Tax Rate Agenda Information Sheet Page 2 September 7, 2004 PRIOR ACTION/REVIEW On August 24, 2004 Council voted to place a proposal on a future agenda. FISCAL INFORMATION The proposed property tax rate is $.59815/$100 valuation for the 2004-05 proposed budget. Respectfully submitted: Diana G. Ortiz Director of Fiscal Operations S:\Our DocumonLS\RosoluLions\04\VOLO on Lax rato.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS ANNOUNCING THAT IT WILL VOTE ON A TAX RATE AT ITS REGULARLY SCHEDULED MEETING OF SEPTEMBER 21, 2004; PROVIDING FOR PUBLICATION OF NOTICE OF SUCH VOTE ON THE TAX RATE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, at its regularly scheduled meeting of August 24, 2004, the City Council voted to place a proposal on the September 21, 2004 City Council regular meeting to adopt a proposed tax rate of $0.59815 per $100 valuation, which will exceed the lower of the rollback rate or 103 percent of the effective tax rate; and WHEREAS, the City Secretary duly recorded the vote of the City Council on that matter; and WHEREAS, the City Council also called a public hearing for its regular meeting of September 7, 2004 on the tax increase; and WHEREAS, publication of notice of that public hearing on the tax increase was made in accordance with the law, and said public hearing was held on September 7, 2004 and all proponents and opponents of the tax increase were given an adequate opportunity to present their views at the public hearing; and WHEREAS, the City Council wishes to finally set the date, time, and place of the meeting at which it will vote on the tax rate; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council will vote on the proposed tax rate at its regularly scheduled meeting of September 21, 2004, which will commence at 6:30 p.m. and will be held in the City Council Chambers at City Hall at 215 East McKinney, Demon, Texas 76201. SECTION 2. Prior to the vote on the tax rate, the City Manager and the Assistant City Manager are directed to publish in the Denton Record-Chronicle, a newspaper having general circulation in the City, the attached Notice of Vote on the Tax Rate, which is made a part of this resolution for all purposes, such publication to be in compliance with the requirements of the Texas Tax Code. SECTION 3. This resolution shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the 7th day of September, 2004, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et seq. The City Secretary is hereby advised to record this resolution and the vote on the proposal to place the item for a tax increase on the September 21, 2004 City Council agenda. S:\Our Documoms\RosoluLions\04\VOLO on Lax rato.doc PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Councilmember Euline Brock, Mayor Pete Kamp Perry McNeill, Mayor Pro Tem Bob Montgomery Joe Mulroy Jack Thomson Raymond Redmon Voted For Voted Against Page 2 Notice Of Vote on Tax Rate The City of Denton, Texas conducted a public hearing on a proposal to increase the total tax revenues of the City of Denton, Texas from properties on the tax roll in the preceding year by 10.6 percent on September 7, 2004 at 6:30 p.m.. The City Council of the City of Denton, Texas is scheduled to vote on the tax rate that will result in that tax increase at a public meeting to be held on September 21, 2004, 6:30 p.m. at the City Council Chambers at City Hall located at 215 E. McKinney, Denton, Texas 76201 AGENDA DATE: DEPARTMENT: AGENDA INFORMATION SHEET September 7, 2004 Economic Development Wendy Nalls X7234 CM/DCM/ACM: Mike Conduff ~ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager accept a grant award from the Texas Department of Housing and Community Affairs for an Emergency Shelter Grant Program and take all other actions necessary to administer the grant under the Emergency Shelter Grant Program; and providing for an effective date. BACKGROUND This is the fourth consecutive year, the Texas Department of Housing and Community Affairs (TDHCA) has awarded the City of Denton Emergency Shelter Grant Programs (ESGP) funds for services to the homeless and those at-risk to become homeless. The 2004-2005 ESGP award from the TDHCA is for sixty-one thousand one hundred and fifteen dollars ($61,115.00) for homelessness prevention services. The 2004-2005 ESGP Award of $61,115.00 is a reduction of $53,405 or 47% from the 2003-2004 ESGP Award of $114,520.00. The homelessness prevention services will be provided by HOPE, Inc. OPTIONS Option 1: Adopt an ordinance to authorize the City Manager to accept the $61,115.00 2004-2005 Emergency Shelter Grant Program award from the Texas Department of Housing and Community Development. Option 2: Deny the $61,115.00 2004-2005 Emergency Shelter Grant Program award from the Texas Department of Housing and Community Development. RECOMMENDATION Staff recommends adoption of the ordinance to authorize the City Manager to accept the $61,115.00 2004-2005 Emergency Shelter Grant Program award from the Texas Department of Housing and Community Development. ESTIMATED SCHEDULE OF PROJECT The Emergency Shelter Grant Program award must be expended during the 2004-2005 ESGP program year which is September 1, 2004 to August 31, 2005. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Emergency Shelter Grant Program award has been reviewed by the Denton County Homeless Coalition, the designated Continuum of Care lead entity for services to the homeless and those at risk to become homeless in Denton County. FISCAL INFORMATION The Emergency Shelter Grant Program requires a 100% match, the match will be provided by HOPE, Inc. Prepared by: Wendy Nails Human Services Coordinator Respectfully submitted: Linda Ratliff Economic Development Director S:\Our Documcnts\Ordinancos\04\cmcrgony sholdcr grant. DOC ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT FOR SIXTY ONE THOUSAND ONE HUNDRED AND FIFTEEN DOLLARS FROM THE TEXAS DEPARTMENT OF HOUSING AND COMMUNTY AFFAIRS EMERGENCY SHELTER GRANT PROGRAM AND TAKE ALL OTHER ACTIONS NECESSARY; 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 accept a gram award of sixty one thousand one hundred and fifteen dollars ($61,115.00) through the Emergency Shelter Gram 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 Denton, Texas, intends to sub-contract with a local social service agency to provide services through the emergency shelter grant program; and WHEREAS, the Texas Departmem of Housing and Community Affairs requires the appropriate certifications and the City Council deems it in the public interest to authorize the City Manager to execute a grant agreement; 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 Department of Housing and Community Affairs and all appropriate officials thereof, a grant agreement, together with all necessary certifications, 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 Grant Program pursuant to Sec. 2306.094 of the Texas Governmem 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 execute an agreement and administer this grant. S:\Our Documcnts\Ordinancos\04\cmcrgony sholdcr grant. DOC SECTION 2. That the Community Development Administrator is authorized, under the supervision of the City Manager, to handle all fiscal and administrative matters relating to the administration of the Emergency Shelter Grant 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 ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 of 2 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO. 424117 FOR THE EMERGENCY SHELTER GRANTS PROGRAM CFDA NO. I4.231 SECTION 1. THE PARTIES This agreement is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (herein the "Department") and CITY OF DENTON (herein the "State Subrecipient" or "Subrecipient"). SECTION 2. GRANT PERIOD The period for performance of this agreement, unless earlier terminated, is September 1, 2004 through August 31, 2005 (herein the "Grant Period"). SECTION 3. STATE SUBREC~IENT PERFORMANCE State Subrecipient shall conduct, in a satisfactory manner as determined by Department, an Emergency Shelter Grants Program pursuant to the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. Sec. 11371 et. seq.) (herein the "Act"). Subrecipient shall perform ail activities in accordance with the terms of the Budget (herein "Exhibit A"); the Match (herein "Exhibit B"); the Applicable Laws and Regulations (herein "Exhibit C"); the assurances, certifications, and other statements made by Subrecipient in its Emergency Shelter Grants Program (herein "ESGP") application, and with all other terms of this grant agreement. SECTION 4. DEPARTMENT OBLIGATIONS Ao In consideration of Subrecipient's full and satisfactory performance of this agreement, Department shall reimburse the actual allowable costs incurred by Subrecipient in an amount up to: $6t,115.00 Department's obligations under this agreement are contingent upon the actual receipt of adequate ESGP funds from the U.S. Department of Housing and Urban Development (herein "HUD"). If sufficient funds are not available to make payments under this grant agreement, Department shall notify Subrecipient in writing within a reasonable time after such fact is determined. Department shall then terminate this agreement and will not be Iiable for the failure to make any payment to Subrecipient under this agreement. 1 o fi4 Department shall not be liable to Subrecipient for any costs which: (1) have been reimbursed to Subrecipient or are subject to reimbursement to Subrecipient by any source other than Department; (2) are not allowable costs, as set forth in the Act and Section 6(B) of this agreement; (3) are not strictly in accordance with the terms of thisagreement, including the exhibits; (4) have not been reported to Department within sixty (60) days following termination of this agreement; or (5) are not incurred during the Grant Period, exclusive of pre-award travel and/or per diem expenses to attend the ESGP Implementation Workshop. Subrecipient shall refund to Department any sum of money which has been paid to Subrecipient by Department, which Department determines has resulted in an overpayment, or which Department determines has not been spent strictly in accordance with the terms of this agreement. Subrecipient shall make such refund within fifteen (15) days after the Department's request. SECTION 5. METHOD OF PAYMENT / CASH BALANCES Each month Subrecipient may request an advance payment by submitting to Department a properly completed Monthly Funding/Financial/Performance Report (MFFPR) that may include a request for advance funds (Projected Expenses) in an amount not to exceed Subrecipient's actual cash needs for the month for which such advance is sought. Subrecipient's requests for advance payments shall be limited to the minimum amounts needed for the effective performance of this agreement, and shall be timed as closely as possible with Subrecipient's actual immediate cash requirements. Subrecipient shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Subrecipient. Co Department may use a cost reimbursement method of payment if (1) in excess of need; (2) Department identifies any deficiency in the cash controls or financial management system used by Subrecipient; or (3) Subrecipient fails to comply with any of the reporting requirements of Section 9. All funds paid to Subrecipient under this contract are paid in trust for the exclusive benefit of the eligible Subrecipients of ESGP services and for the payment of allowable expenditures. 2 of 14 SECTION 6. ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES Except as specifically modified by law or regulation, in performing this agreement, Subrecipient shall comply with the administrative requirements set forth in OMB Circular No. A-110 (nonprofit organizations) or the regulations codified at 24 C.F.R. Part 85 (units of state or local government), whichever is applicable to Subrecipient. Except as specifically modified by law or regulation, in performing this agreement, Subrecipient shall comply with the cost principles set forth in OMB Circular No. A- 122 (nonprofit organizations) or OMB Circular No. A-87 (units of state or local government), whichever is applicable to Subrecipient. Notwithstanding any other provision of this grant agreement, Department shall only be liable to Subrecipient for costs incurred or performances rendered for activities specified in 24 C.F.R. Sec.576.21(a). Department shall not be liable to Subreeipient for the costs of any other activities, including but not limited to: (1) acquisition of an emergency shelter for the homeless; (2) renting commercial transient accommodations for the homeless (such as hotel or motel rooms) unless the conditions in Section 22(J) of this agreement have been met; (3) renovating, rehabilitating, or converting buildings owned by primarily religious organizations or entities except as specifically authorized by 24 C.F.R. Sec. 576.23¢). D. Use of Alcoholic Beverages. None of the funds provided under this contract shall be used for the payment of salaries to any employee who uses alcoholic beverages while on active duty. No funds provided under this contract for travel expenses shall be used for the purchase of alcoholic beverages. SECTION 7. MATCH REQUIREMENT Subrecipient shall provide an amount of funds equal to the amount of funds provided by Department under this agreement (herein "Subrecipient's Match"). Subrecipient's Match must be provided during the Grant Period from sources other than ESGP funds. Funds used to match a previous ESGP award may not be used to match the award made under this agreement. Subrecipient's Match may include resources provided by any sub-Subrecipient to which Subrecipient provides funds under this agreement. Amounts may be counted towards Subrecipient's Match only if such amounts are costs or resources of a type specified in Exhibit B, Match and only if such amounts are computed in accordance with this Section. In calculating the amount of 3 of 14 Subrecipient's Match, Subrecipient may include, but is not limited to, cash donations; the value of any donated material or building; the value of any lease on a building; any salary paid Subrecipient's staff (or that of its sub-Subrecipients) in carrying out the activities required under this agreement; and the time and services contributed by volunteers to carry out such activities, determined at the rate of Five Dollars ($5.00) per hour. Subrecipient shall determine the value of any donated material or building or any lease, using any method reasonably calculated to establish a fair market value. SECTION 8. RETENTION AND ACCESSIBILITY OF RECORDS A. Subrecipient shall maintain fiscal records and supporting documentation for all expenditures of funds made under this agreement in a manner that conforms to OMB Circular No. A-87 or A-I22 and this agreement. Subrecipient shall comply with the retention and custodial requirements for records as set forth in OMB Circular No. A- l 10 or 24 C.F.R. Part 85. B. Subrecipient shall give HUD, the Comptroller General of the United States, the Auditor of the State of Texas, and any Department authorized representative, access to and the fight to reproduce ali records belonging to or in use by Subrecipient pertaining to this grant agreement. Such access shall continue as long as Subrecipient retains the records. Subrecipient shall maintain such records in an accessible location. Subrecipient shall ensure that any subsubcontractors receiving funds provided under this grant shall comply with the record retention and custodial requirements specified in this Section. SECTION 9. REPORTING REQUIREMENTS A. Subrecipient shall submit to Department such reports on the performance of this grant as may be required by Department including but not limited to the reports specified in this Section. B. Subrecipient shall electronically submit a Monthly Funding/Financial/Performance Report (MFFPR) to the Department on or before the twentieth (20th) day of each month following the reported month in the Grant Period, beginning no later than October 20, 2004, regardless of whether Subrecipient makes a fund request. C. Subrecipient shall submit a final MFFPR to the Department within sixty (60) days after the end of the Grant Period. The failure of Subrecipient to provide a full accounting of all funds expended under this agreement within sixty (60) days shall be sufficient reason for Department to deny or terminate any future agreements with Subrecipient. If this contract provides assistance for renovation, rehabilitation, or 4 of 14 conversion, in addition to the electronic final report, Subrecipient shall submit under separate cover photographs of the finished construction work. D. Subrecipient shall submit to Department within twenty (20 days) days after the termination of this contract an IDIS Annual Performance Report prepared according to ESGP Policy Issuance instructions. E. Subrecipient shall submit to Department no later than sixty (60) days after the termination of this contract a cumulative inventory report of all equipment having a unit acquisition cost of $500 or more, acquired in whole or in part with funds received under this or previous ESGP contracts. Upon the termination of this contract, Department may transfer title to any such equipment having a unit acquisition cost of $1000 or more to itself or to any other entity receiving ESGP funds from Department. F. If Subrecipient fails to submit, in a timely and satisfactory manner, any audit, report or response required by this agreement including responses to monitoring reports, Department may withhold payments otherwise due to Subrecipient hereunder. If Department withholds such payments, it shall notify Subrecipient in writing of its decision and the reasons therefore. Department may withhold payments until such time as the delinquent obligations for which funds are withheld are fulfilled by Subrecipient. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this agreement. Subrecipient receives ESGP funds from Department over two or more Grant Periods, funds may be withheld or this agreement suspended or terminated for Subrecipient's failure to submit a report or response (including a report of audit) past due under a prior grant agreement. SECTION 10. MONITORING AND TECHNICAL ASSISTANCE Department or its designee may conduct periodic on-site monitoring and evaluation of the efficiency, economy, and effectiveness of Subrecipient's performance of this agreement. Department wilt advise Subrecipient in writing of any deficiencies noted during such monitoring. Department wilt provide technical assistance to Subrecipient and will require or suggest changes in Subrecipient's program implementation, accounting, personnel, procurement, or management procedures in order to correct any deficiencies noted. Department may conduct follow-up visits to review and assess the efforts Subrecipient has made to correct previously noted deficiencies. Department may place Subrecipient on a reimbursement method of payment, terminate this contract, or invoke other remedies in the event monitoring or other reliable sources reveal material deficiencies in Subrecipient's performance or if Subrecipient fails to correct any deficiency within a reasonable period of time. 5 of 14 SECTION 1 I. INDEPENDENT CONTRACTOR Department is contracting with Subrecipient as an independent contractor. To the extent allowed by law, Subrecipient agrees to hold Department harmless and to indemnify Department from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occurring or in any way incident to, arising out of, or in connection with Subrecipient's performance of this contract. SECTION 12. PROCUREMENT Subrecipient shall develop and implement procurement procedures that conform to the administrative requirements referenced in Section 6 and with any procurement guidelines issued by Department. If Subrecipient is a unit of local government, it shall also comply with all applicable state and local laws relating to procurement. Subrecipient shall not procure supplies, equipment, materials, or services except in accordance with such procurement procedures. SECTION 13. CONFLICT OF INTEREST / NEPOTISM A. Subrecipient shall comply with the conflict of interest provisions at 24 C.F.R. Sec. 576.57(d). B. Subrecipient represents that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict with the performance of this agreement and that no person having suchinterest shall be employed by Subrecipient or serve as a member of its governing body. C. Subrecipient shall ensure that no officer, employee, or member of the governing body of Subrecipient shall vote for or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of Subrecipient's governing body or to any officer or employee who would directly supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. SECTION 14. LEGAL AUTHORITY A. Subrecipient represents that it possesses the legal authority to enter into this agreement and to perform the services Subrecipient as obligated itself to perform hereunder. 6 of 14 The person signing this contract on behalf of Subrecipient hereby warrants that he/she has been duly authorized by Subrecipient's governing board to execute this agreement on behalf of Subrecipient and to bind Subrecipient to the terms herein set forth. Department shall have the right to terminate this contract if there is a dispute as to the legal authority of either Subrecipient or the person signing this contract to enter into this contract or to render performances hereunder. Subrecipient is liable to Department for any money it has received from Department for performance of the provisions of this contract, if Department has terminated this contract for reasons enumerated in this Section 14. SECTION 15. LITIGATION AND CLAIMS Subrecipient shall give Department immediate notice in writing of any action or claim, including any proceeding before an administrative agency, filed against Subrecipient and arising out of the performance of this agreement. Subrecipient shall promptly furnish Department with copies of all pertinent papers received by Subrecipient with respect to such action or claim. SECTION 16. SECTARIAN ACTIVITY The performance of this agreement shall not involve, and no portion of the funds received by Subrecipient hereunder shall be used in support of, any sectarian or religious activity. SECTION 17. CHANGES AND AMENDMENTS Any change in the terms of this agreement, which is required by a change in state or federal law or regulation is automatically incorporated herein and is effective on the date designated by such law or regulation. Except as otherwise expressly provided in this agreement, any change in the terms of this agreement shall be reduced to writing and agreed upon by both parties. Any change to the amount of this contract as shown in Section 4 A shall be by an amendment hereto in writing and signed by both parties. Any change to the amount specified per activity category shall be requested in writing by the contractor and authorized by a letter signed by the director of the Community Affairs Division. Pursuant to Department policy, no Subrecipient-initiated amendments will be approved or processed during the first 90 days or the last 30 days of the Grant Period. 7 of 14 SECTION 18. DEPARTMENT ISSUANCES Performance of this grant agreement must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Department by Subrecipient, and the assurances and certifications made to HUD by the State of Texas with regard to the operation of the Texas ESGP. In order to ensure the legal and effective performance of this contract, Department may issue policy directives, which serve to establish, interpret, or clarify the requirements of this agreement. Such directives shall be promulgated by Department in the form of ESGP Issuances and shall be binding upon Subrecipient as if written herein. ESGP Issuances shall not alter the terms oft his agreement so as to release Department of any obligation specified in Section 4 to reimburse costs incurred by Subrecipient prior to the effective date of said Issuance. SECTION 19. TERMINATION AND SUSPENSION Department may terminate this agreement, in whole or in part, at any time Department determines that Subrecipient has failed to comply with any term of this agreement. Department shall notify Subrecipient of such determination in writing prior to the thirtieth (30th) day preceding the date of termination to provide the reasons for such termination, the effective date of such termination, and in the case of partial termination, the portion of the agreement to be terminated. Nothing in this Section shall be construed to limit Department's right to withhold payment or immediately suspend Subrecipient's performance of this agreement if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Subrecipient's performance. Suspension shall be a temporary measure pending either corrective action by Subrecipient or a decision by Department to terminate this agreement. Upon receipt of notice of suspension or termination, Subrecipient shall cancel, withdraw, or otherwise terminate any outstanding orders or subcontracts related to the performance of this agreement and shall cease to incur costs hereunder. Department shall not be liable to Subrecipient for costs incurred after termination of this agreement. Notwithstanding any exercise by Department of its right of suspension or of early termination, Subrecipient shall not be relieved of any Iiability to Department for damages due to Department by virtue of any breach of this agreement. Department may withhold payments to Subrecipient until such time as the exact amount of damages due to Department by Subrecipient is agreed upon or is otherwise determined and paid. 8 of 14 SECTION 20. AUDIT For any fiscal year included within the Grant Period during which the Subrecipient expended $500,000 or more in total federal financial assistance, Subrecipient shall arrange for the performance of an annual audit of the funds received and performances rendered under this grant agreement. The audit shall be made in accordance with the Single Audit Act Amendments of 1996, 31 U.S.C. ch. 75; and OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations". The term "federal financial assistance" includes awards of federal financial assistance received directly from federal agencies, or indirectly tlu'ough units of state and local government. Bo Subrecipient shall submit two (2) copies of the report of such audit to Department within thirty (30) days after the completion of the audit, but no later than nine (9) months after the end of the audit period. Subrecipient shall insure that the audit report is made available for public inspection within thirty (30) days after completion of the audit. Audits performed under this Section are subject to review and resolution by Department or its authorized representative. C. For each fiscal year ending within or immediately after the Grant Period, Subrecipient must submit an "Audit Certification Form" (available from the Department) within sixty (60) days after the Subrecipients fiscal year end. Department reserves the right to conduct additional audits of the funds received and performances rendered under this grant agreement. Subrecipient agrees to permit Department or its authorized representative to audit Subrecipient's records and to obtain any documents, materials, or information necessary to facilitate such audit. Subrecipient shall be liable to Department for any costs disallowed pursuant to audit(s) of funds received under this agreement. Subrecipient shall reimburse such disallowed costs with funds that are not provided under this contract. SECTION 21. TRAVEL Allowable travel costs under this contract shall be determined in accordance with OMB Circulars A-122 or A-87, as applicable, any Department Issuance on travel, and with Contractor's written travel policy. Contractor's written travel policy shall delineate the rates which Contractor shall use in computing the travel and per diem expenses of its board members and employees. Prior to incurring any costs for travel, contractor must provide Department with a copy of its travel policy and evidence that such policy has been approved by Contractor's governing body. If Contractor has no established written travel policy, the travel regulations applicable to Department employees shall apply. 9 oft4 SECTION 22. SPECIAL CONDITIONS Department shall not release any funds under this agreement until Department has determined that Subrecipient's fiscal control and fund accounting procedures are adequate to assure the proper disbursat of and accounting for such funds. Department shall not release any funds under this agreement until Department has received a properly completed Depository/Authorized Signatory Form (Department Form) from Subrecipient. C. Subrecipient shall have obligated (as such term is defined in 24 C.F.R. Sec. 576.3) all funds provided under this agreement on or before January 1, 2005. Department may recapture any funds not so obligated. Do Subrecipient shall ensure that any building rehabilitated with funds provided under this agreement is maintained as a shelter for the homeless for not less than a three- year period, or for not less than a ten-year period if such funds are used for major rehabilitation or conversion of the building. The applicable period shall be calculated in accordance with 24 C.F.R. Sec.576.53(b). E. If Subrecipient uses funds received under this agreement to provide essential services, homeless prevention, or maintenance and operating costs, the activities must be carded out until all of the funds made available under this agreement for such activities are expended or for the Grant Period, whichever is shorter. Subrecipient may use one or more sites or structures to carry out the activities but it must serve the same general population. The "same general population" means the types of homeless persons originally served with the funds or persons in the same geographical area. F. Subrecipient shall make known that use of the facilities and services funded under this agreement are available to all on a nondiscriminatory basis. Subrecipient also must adopt and implement procedures designed to make available to interested persons information concerning the existence and location of services and facilities that are accessible to persons with a disability. Go Subrecipient shall administer, in good faith, a policy designed to ensure that its homeless facility is free from the illegal use, possession, or distribution of drugs or alcohol. H. Subrecipient shall not expend ESGP funds for any activities that would result in the displacement of persons or businesses. Subrecipient shall, to the maximum extent practicable, involve, through employment, volunteer services, or otherwise, homeless individuals and families in constructing, renovation, maintaining, and operating facilities assisted under this agreement, in 10 of 14 providing services assisted under this agreement, and in providing services for occupants of facilities assisted under this agreement. J. If Subrecipient intends to provide emergency shelter for homeless persons in hotels or motels, or other commercial facilities providing transient housing, Subreeipient must provide the Department with a certification that: (1) leases negotiated between Subrecipient and providers of such housing provide or will provide that the living space will be rented at substantially less that the daily room rate otherwise charged by the facility; and (2) the Subrecipient has considered other facilities as emergency shelter, and has determined that use of the facilities provides the most cost-effective means of providing emergency shelter in its service area. Subrecipient shall develop and implement procedures to ensure theconfidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted under this agreement, and that the address or location of any family violence shelter project assisted will, except with written authorization of the person or persons responsible for the operation of such shelter, not be made public. Subrecipient shall ensure that any building for which ESGP amounts are used for renovation, conversion, or major rehabilitation must meet local government safety and sanitation standards. M. None of the funds provided under this agreement may be used in connection with any dwelling unit unless the unit is protected by a hard-wired or battery-operated smoke detector installed in accordance with National Fire Protection Association Standard 74. N. Subrecipient shall only subcontract for budget line items under this contract which are not specified in Exhibit A after Subrecipient has submitted information concerning each such proposed subcontract to Department and has obtained Department's prior written approval of Subrecipient's intent to enter into such proposed contract. Subrecipient, in subcontracting for any performances described in this contract, expressly understands that in entering into such subcontracts, Department is in no way liable to Subrecipient's subcontractor(s). In no event shall any provision of this paragraph, specifically the requirement that Subrecipient obtain Department's prior written approval of a subcontract, be construed as relieving Subrecipient of the responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all of the terms of this contract, as if such performances were rendered by Subrecipient. Department's approval under this paragraph does not constitute adoption, ratification, or acceptance of Subrecipient's or subcontractor's performance hereunder and Department maintains the right to insist upon Subrecipient's full compliance with the terms of this contract. 11 of 14 SECTION 23. POLITICAL ACTIVITY AND LOBBYING None of the funds provided under this contract shall be used for influencing the outcome of any election, or the passage or defeat f any legislative measure. This prohibition shall not be construed to prevent any official or employee of Contractor from furnishing to any member of its governing body upon request, or to any other local or state official or employee or to any citizen information in the hands of the employee or official not considered under law to be confidential information. Any action taken against an employee or official for supplying such information shall subject the person initiating the action to immediate dismissal from employment. No funds provided under this contract may be used directly or indirectly to hire employees or in any other way fund or support candidates for the legislative, executive, or judicial branches of government of Contractor, the State of Texas, or the government of the United States. Co None of the funds provided under this contract shall be expended in payment of the salary for full-time employment of any employee who is also the paid lobbyist of any individual, firm, association, or corporation. None of the funds provided by this contract shall be expended in payment of the partial salary of a part-time employee who is required to register as a lobbyist by virtue of the employee's activities for compensation by or on behalf of industry, a profession or association related to operation of Contractor. A part-time employee may serve as a lobbyist on behalf of industry, a profession, or association so long as such entity is not related to Contractor. Except as authorized by taw, no contract funds shall be expended in payment of membership dues to an organization on behalf of Contractor or an employee of Contractor if the organization pays all or part of the salary of a person required to register under Chapter 305, Govermnent Code. D. None of the funds provided under this contract shall be paid to any official or employee who violates any of the provisions of this section. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Con~ess in connection with this federal contract, grant, loan, or cooperative agreement, Subrecipient shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 12 of 14 SECTION 24. PREVENTION OF FRAUD AND ABUSE Subrecipient shall establish, maintain, and utilize internal systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in the performance of this agreement and to provide for the proper and effective management of ail program and fiscal activities funded by this agreement. Subrecipient's internal control systems and ali transactions and other significant events are to be clearly documented and the documentation shall be readily available for monitoring by Department. Subrecipient shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the performance of this agreement. Subrecipient shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. Subrecipient may not discriminate against any employee or other person who reports a violation of the terms of this agreement or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 25. MAINTENANCE OF EFFORT Funds provided to Subrecipient under this agreement may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Subrecipient had this agreement never been executed. SECTION 26. NO WAIVER No right or remedy given to Department by this contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 27. SEVERABILITY If any portion of this agreement is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. 13 of 14 SECTION 28. PRIOR ORAL AND WRITTEN AGREEMENTS All oral and written agreements between the parties to this contract relating to the subject matter of this agreement that were made prior to the execution of this agreement have been reduced to writing and are contained herein. SECTION 29. EXttlBITS The exhibits identified below are hereby made a part of this agreement: I. Exhibit A, Budget 2. Exhibit B, Match 3. Exhibit C, Applicable Laws and Regulations SIGNED this day of .,2004. CITY OF DENTON TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: By: Michael A. Conduff City Manager Edwina P. Cardngton Executive Director This agreement is not effective unless signed by the Executive Director of Department or her authorized designee APPROVED AS TO FORM: CITY ATTORNEY CITY OF DENTON, TEXAS 14 of 14 EXHIBIT A Contractor: CITY OF DENTON Contract: 424117 Contract Period: 09/01/2004-08/31/2005 Orig? N Amd? N Activity Total Category Description of Activities Funds State Administration 2350.00 (City and County Only) Operation Administration 5876.00 HOPE, Inc. Executive Director Intake Worker/Administrative Assistant A REHABILITATION .00 B ESSENTIAL SERVICES .00 Salaries .00 Other .00 C MAINTENANCE, OPERATIONS, AND FURNISHINGS .00 Maintenance (contractual agreements only) .00 Operation (excluding staff but including) .00 Furnishings (list item(s)) .00 D HOMELESSNESS PREVENTION 52889.00 HOPE, Inc. Rent Utilities Security Deposit TOTAL 61115.00 15 of 4 EXHIBIT B Contractor: CITY OF DENTON Contract: 424117 Contract Period: 09/01/2004 - 08/31/2005 Orig? N Amd? N Sotlrce DONATIONS Materials Dollar Value .00 Building .00 Funds HOPE, Inc. CDBG Rent/Deposit Subsidy $4,000 EFSP Rent/Utility Subsidy $25,000 2900O.OO LEASE or RENT $16,800/year lease 2-4% of space -- $4,000 4000.00 SALARIES HOPE, Inc. Executive Director $5,000 Case Manager $19,000 Administrative Assistant $4,700 28000.00 VOLUNTEERS (~ $5.00/hour) .00 OTHER HOPE, Inc. General Operating funds/fundraisers 1000.00 TOTAL 62000.00 16 of 4 EXHIBIT C APPLICABLE LAWS AND REGULATIONS Grantee shall comply with the Act specified in Section 3 of this agreement; the OMB Circulars and regulations specified in Section 6 of the grant agreement; and with all other federal, state, and local laws and regulations applicable to the activities and performances rendered by Grantee under this agreement including but not limited to the laws, and the regulations promulgated thereunder specified in this Exhibit C. I. NONDISCRIMINATION AND EQUAL OPPORTUNITY Title VI of the Civil Rights Act of 1964, (42 U.S.C. Sec. 2000d et seq.); 24 C.F.R. Part 1, "Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban Development - Effectuation of Title VI of the Civil Rights Act of 1964"; Title VIII of the Civil Rights Act of 1968, "The Fair Housing Act of 1968" (42 U.S.C. Sec. 3601 et seq.) and implementing regulations; Executive Order 11063, as amended by Executive Order 12249, and 24 C.F.R. Part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063". The failure or refusal of the Contractor to comply with the requirements of Executive Order 11063 of 24 C.F.R. Part 107 shall be a proper basis for the imposition of sanctions specified in 24 C.F.R. Sec. 107.60.; The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. Sec. 6101 et seq.) and implementing regulations at 24 C.F.R, Part 146; The prohibitions against discrimination against otherwise qualified individuals with disabilities under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794) and implementing regulations at 24 C.F.R. Part 8. For pm-poses of the Emergency Shelter Grants Program, the term "dwelling units" in 24 C.F.R. Part 8 shall include sleeping accommodations; The affirmative action requirements of Executive Order 11246 and the regulations issued under the Order at 41 C.F.R. Chapter 60; and Executive Orders 11625, 12432, and 12138. Contractor shall make efforts to encourage the use of minority and women's business enterprise in connection with activities funded under this contract. II. EMPLOYMENT OPPORTUNITIES Section 3 of the Housing and Urban Development Act of t968 (12 U.S.C. Sec. 1701u). 1 of 4 III. UNIFORM FEDERAL ACCESSIBILITY STANDARDS For major rehabilitation or conversion, the Uniform Federal Accessibility Standards at 24 C.F.R. Part 40, Appendix A. IV. LEAD-BASED PAINT The requirements, as applicable, of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. Sec. 4821~4846) and implementing regulations at 24 C.F.R. Part 35. In addition, Contractor must also meet the following requirements relating to inspection and abatement of defective lead-based paint surfaces: (1) Treatment of defective paint surfaces must be performed before final inspection and approval of the renovation, rehabilitation, or conversion activity under 24 C.F.R. Part 576; and (2) Appropriate action must be taken to protect shelter occupants from the hazards associated with lead-based paint abatement procedures. V. USE OF DEBARRED, SUSPENDED, OR INELIGIBLE CONTRACTORS The provisions of 24 C.F.R. Part 24 relating to the employment engagement of services, awarding of contracts, or funding of any Contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status. I. FLOOD INSURANCE No site proposed on which renovation, major rehabilitation, or conversion of a building is to be assisted under 24 C.F.R. Part 576, other than by grant amounts allocated to States under Sec. 576.43, may be located in an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards unless: (1) The community in which the area is situated is participating in the National Flood Insurance Program and the regulations thereunder (44 C.F.R. Parts 59 through 79) or (ii) Less than a year has passed since FEMA notification regarding such hazards; and (2) Contractor will ensure that flood insurance on the structure is obtained in compliance with section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. Sec. 4001 et seq.). 2 of 4 VII. COASTAL BARRIERS In accordance with the Coastal Barrier Resources Act, 16 U.S.C. 3501, no financial assistance under the Act may be made available within the Coastal Barrier Resources System. Contractor shall comply, where applicable, with the Coastal Zone Management Act of 1972 (16 U.S.C. Sec. 1451 et seq.) as amended, particularly section 307(c) and (d) (16 U.S.C. Sec. 1456(c) and (d)). VIII. ENVIRONMENTAL STANDARDS If Grantee is a unit of local government, it shall assume the environmental responsibilities specified in section 104(g)(1) of the Housing and Community Development Act of 1974 and 24 C.F.R. Part 58. Grantee shall assist Department and HUD in their compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. Sec. 470 et seq.); Executive Order 1 t593; and the Archaeological and Historical Preservation Act of 1966 (16 U.S.C Sec. 489a-1 et seq.) by: (a) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects by activities funded under this contract and notifying Department and HUD of the existence of any such properties, and (b) complying with all requirements established by HUD to avoid or mitigate adverse effects upon such properties. Grantee shall ensure, pursuant to Executive Order 11783, that the facilities under its ownership, lease, or supervisions which shall be utilized in the accomplishment of this grant agreement are not listed on the Environmental Protection Agency (EPA) list of violating facilities and that it shall notify Department and HUD of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in carrying out this agreement is under consideration for listing by the EPA. Grantee shall comply with the provisions of the National Environment Policy Act of 1969 (P.L. 91-190) and Executive Order 11514, as amended by Executive Order 11991, which promote efforts to prevent or eliminate damage to the environment and biosphere and require an Environmental Impact Statement when plans and programs may affect the quality of the by Executive Order 11991, which promote efforts to prevent or eliminate damage to the environment and biosphere and require an Environmental Impact Statement when plans and programs may affect the quality of the environment. To the extent applicable, Grantee shall comply with ali of the requirements of Section 1 t4 of the Clean Air Act, as amended (42 U.S.C. Sec. 1857 et seq.), and Section 308 of the Federal Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq,), respectively, relating to inspection, monitoring, entry, reports, and information, as well as other requirements 3 of 4 specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder. Grantee shall comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards, and Executive Order 11288, relating to prevention, control, and abatement of water pollution. Grantee shall assist Department and HUD in their compliance with Executive Order 11988, Flood Plain Management, which requires avoidance, to the extent possible, of the long and short term impacts associated with the occupancy and modification of floodplains and avoidance of the direct of indirect support of floodplain development whenever there is a practicable alternative. 4 of 4 AGENDA DATE: DEPARTMENT: CITY ATTORNEY: AGENDA INFORMATION SHEET September 7, 2004 Legal Department Herbert L. Prouty, City Attorney SUBJECT. Consider an ordinance establishing rules and procedures for the City of Demon Council Ethics Committee for the purpose of advising the City Council of the City of Demon on the Ethics policy for elected and appoimed officials - City of Demon, Texas; and providing an effective date. BACKGROUND. - By Resolution No. R2004-025, the Demon City Council adopted the Ethics Policy for Elected and Appoimed Officials -City of Demon, Texas, ("Ethics Policy"). The Council Ethics Committee met and made recommendations in the form of the attached ordinance on the procedures that the Council Ethics Committee would use in being a Notice of a Potential Violation of the Ethics Policy to the attention of the Denton City Council. This ordinance would allow the Council Ethics Committee to follow the rules of procedure that all Council created committees follow, to provide notice of the potential violation to the appointed or elected official, to gather information and to forward a recommendation to the Denton City Council on a potential violation of the Ethics Policy or any issues that may arise concerning the Ethics Policy. OPTIONS. - The City Council may adopt the ordinance or direct staff to make changes to the ordinance and then adopt the ordinance as amended. The City Council may also decline to adopt the ordinance. FISCAL IMPACT. - This ordinance has no fiscal impact other than the staff time necessary to implement the procedure. Respectfully submitted, Herbert L. Prouty City Attorney S:\Our Documcnts\Ordinances\04\AIS- Council E/hies Committee.doc S:\Our Documents\Ordinances\04\COUNCIL Ethics Committee. DOC ORDINANCE NO. AN ORDINANCE ESTABLISHING RULES AND PROCEDURES FOR THE CITY OF DENTON COUNCIL ETHICS COMMITTEE FOR THE PURPOSE OF ADVISING THE CITY COUNCIL OF THE CITY OF DENTON ON THE ETHICS POLICY FOR ELECTED AND APPOINTED OFFICIALS - CITY OF DENTON, TEXAS; AND PROVIDING AN EF- FECTIVE DATE. WHEREAS, the DeNon City Council heretofore established a Council Ethics Committee to recommend whether the City of Denton should adopt an ethics policy; and WHEREAS, by Resolution No. R2004-025, the Denton City Council adopted the Ethics Policy for Elected and Appoimed Officials -City of DeNon, Texas, ("Ethics Policy"); and WHEREAS, the DeNon City Council desires to establish rules and procedures for the committee to act as an advisory body to the DeNon City Council on issues that may arise under the Ethics Policy for the City of Denton; and WHEREAS, the City Council finds that it is in the public imerest to establish the commit- tee as a standing committee of the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations comained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The City Council hereby establishes a standing committee to be called the Council Ethics Committee (the "Committee"). The Committee shall consist of three City Coun- cil Members with a citizen member with expertise in government ethics as an ex officio member. The Committee members shall serve at the pleasure of the City Council umil successors are duly appoimed by the City Council and become qualified. The City Attorney, or his or her designee, shall serve as legal advisor to the Committee, except where the City Attorney may have a con- flict of imerest under the Texas Disciplinary Rules of Professional Conduct. The City Secretary, or his or her designee, shall serve as the recording secretary to the Committee and shall provide such administrative services as necessary. SECTION 3. The duties of the Committee shall include advising the DeNon City Coun- cil on the Ethics Policy and gathering information from the Citizens of Denton regarding any as- pect of the Ethics Policy. SECTION 4. The Committee shall comply with the rules of procedure governing its op- eration pursuant to Article III Chapter 2 of the Code of Ordinances of the City of Denton. SECTION 5. Any person, including any Elected or Appoimed Official of the City of Denton, or any person acting on behalf of a public or private entity may request the Committee to consider an issue arising under the Ethics Policy by filing a written Notice of Potential Viola- tion, ("Notice"), of the Ethics Policy with the City Secretary. SECTION 6. The City Secretary shall make a copy of the Notice and provide a copy of the Notice to the Elected or Appointed Official, who is named in the Notice, and to the Chairman of the Committee. SECTION 7. Within thirty days, the Chairman shall place the Notice on the Agenda of the Committee, the Committee shall meet and conduct hearings as necessary, provide notice of the meeting to the Elected or Appointed Official, and consider whether to advise the City Coun- cil on the Notice. The Committee may extend this time period if the Committee needs additional information to advise the City Council. SECTION 8. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM: September 7, 2004 City Manager's Office Mike Conduff, City Manager SUBJECT Consider nominations/appoimmems to the City's Boards and Commissions and consider appointing a committee to recommend nominations to the Economic Development Partnership Board. BACKGROUND Council Member Redmon has a nomination for a vacam position on the Animal Shelter Advisory Committee. The Economic Development Partnership Board will have three positions to be filled October 1, 2004. A City Council Nomination Committee made nominations for the Board's original membership in September 2003. Another City Council Committee is needed to nominate members to fill the three positions from the following categories: - One City Council Member - One Demon Chamber of Commerce Board Member - One representative from the City's top 20 taxpayers If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary AGENDA DATE: DEPARTMENT: CITY ATTORNEY: AGENDA INFORMATION SitEET September 7, 2004 Legal Department Herbert L. Prouty, City Attorney SUBJECT. - Consider a resolution requesting that the Texas Municipal League support legislation for the creation and funding for regional rail systems, including an optional sales tax increase; and providing an effective date. BACKGROUND. - Mobility throughout the North Texas area is a key element of a continued positive quality of life and economic viability. To maintain mobility, enhance the quality of life for citizens, promote economic development, and address issues associated with reducing roadway congestion and achieving federal air quality mandates, funding for regional transportation, including a local option sales tax may be necessary. In addition, local governments, transit entities, and the State should have a common base for taxable goods and services, including any goods and services newly taxed by the Texas State Legislature. Area leaders have served on committees of the North Central Texas Regional Transit Initiative and have met to address the region's regional transit needs, mil funding requirements, and institutional arrangements to meet the region's rail transit needs and have adopted a Statement of Principles for the implementation of a Regional Rail System in North Central Texas. Legislation is necessary to provide for existing transportation authorities to maintain their funding, responsibilities and commitments and at the same time provide for representation for the three existing transportation authorities in the governance of the new regional rail system. OPTIONS. - The City Council may adopt the resolution or direct staff to make changes to the resolution and then adopt the resolution as amended. The City Council may also decline to adopt the resolution. Respectfully submitted, Herbert L. l~'routy City Attorney S:\Our Documents\Resolutions~04\TML- Regional Transportation Opfionl Sales Tax.doc RESOLUTION NO. RESOLUTION OF THE CITY OF DENTON CITY COUNCIL REQUESTING THE TEXAS MUNICIPAL LEAGUE SUPPORT LEGISLATION FOR THE CREATION AND FUNDING FOR REGIONAL RAIL SYSTEMS, INCLUDING AN OPTIONAL SALES TAX INCREASE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 27- 29, 2004 in Corpus Christi, Texas; and WHEREAS, a safe and reliable transportation system and clean air are essential to the continued economic growth and vitality of the cities and counties in the State of Texas; and WHEREAS, area leaders have served on committees of the North Central Texas Regional Transit Imtiative and have met to address the region's regional transit needs, rail funding requirements, and institutional arrangements to meet the region's rail transit needs and have adopted a Statement of Principles for the implementation of a Regional Rail System in North Central Texas; and WHEREAS, legislation is necessary to provide for existing transportation authorities to maintain their funding, responsibilities and commitments and at the same time provide for representation for the existing transportation authorities in the governance of the new regional rail system; and WHEREAS, there should be a mechanism for additional geographic areas to join new regional rail systems; and WHEREAS, local governments, transit entities, and the State should have a common base for taxable goods and services, including any goods and services newly taxed by the Texas State Legislature, and WHEREAS, some Texas cities have reached the maximum limitation on sales tax and legislation is necessary to give cities the option to increase the sales tax cap for funding for regional rail systems needs; and WHEREAS, legislation is necessary for the creation and funding for regional rail systems; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council requests that the Texas Municipal League support legislation for the creation of a regional rail authority, allowing existing transportation authorities to have representation and allowing additional geographic areas to join, and also, support funding for regional rail systems, including a region wide local optional sales tax increase and including any goods and services newly taxed by the Texas State Legislature. SECTION 2. That the City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. S:\OuT DoeumentskResolutions~04\TMLv Regional Transportation Optionl Sales Tax.doc SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ., 2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY EULiNE BROCK, MAYOR BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AGENDA DATE: DEPARTMENT: CITY ATTORNEY: AGENDA INFORMATION SHEET September 7, 2004 Legal Department Herbert L. Prouty, City Attorney SUBJECT. - Consider a resolution requesting that the Texas Municipal League support legislation that automatically removes the ad valorem tax exemption or reduces the ad valorem tax exemption to the ratio of student occupation for Higher Education Authorities; and providing an effective date. BACKGROUND. - Chapter 53 of the Texas Education Code allows cities to create Higher Educational Authorities or nonprofit corporations acting on their behalf to acquire educational facilities or housing facilities for students. These housing facilities are often apartment complexes that receive an ad valorem tax exemption and may not have any students living in the apartments or a small proportion of students occupying the apartment. This resolution asks for support on removing or reducing the ad valorem tax exemption in proportion to the student occupation of the apartments. OPTIONS. - The City Council may adopt the resolution or direct staff to make changes to the resolution and then adopt the resolution as amended. The City Council may also decline to adopt the resolution. Respectfully submitted, H~erbe/"~L~. Pr~ty-~-~'~-~'~ City Attorney RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON CITY COUNCIL REQUESTING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION THAT AUTOMATICALLY REMOVES THE AD VALOREM TAX EXEMPTION OR REDUCES THE AD VALOREM TAX EXEMPTION TO THE RATIO OF STUDENT OCCUPATION FOR HIGHER EDUCATION AUTHORITIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 27-29, 2004 in Corpus Christi, Texas; and WHEREAS, Chapter 53 of the Texas Education Code allows cities to create Higher Educational Authorities or nonprofit corporations acting on their behalf to acquire educational facilities or housing facilities for students; and WHEREAS, these housing facilities are often apartment complexes that receive an ad valorem tax exemption and may not have any students living in the apartments; and WHEREAS, local taxing entities are thereby deprived of needed property tax revenues; NOW THEREFORE, TFIE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council requests that the Texas Municipal League support legislation that automatically removes the ad valorem tax exemption or reduces the ad valorem tax exemption to the ratio of student occupation for housing facilities of Higher Education Authorities. SECTION 2. That the City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED tiffs the day of 2004. EULINEBROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AGENDA DATE: DEPARTMENT: CITY ATTORNEY: AGENDA INFORMATION SHEET September 7, 2004 Legal Department Herbert L. Prouty, City Attorney SUBJECT. - Consider a resolution requesting that the Texas Municipal League support legislation for a method of road assessment damages or increased fees paid by heavy tracks in using city, county and state roads; and providing an effective date. BACKGROUND. - Cities in North Texas are experiencing a tremendous amount of road damage as a result of gas well drilling in the Barnett Shale. Legislation is needed that provides for a method of road assessment damages or increased fees paid by heavy trucks in using city, county or state roads. In addition, the resolution is written broadly to capture heavy tracks who damage city roads other than heavy trucks related to gas wells. OPTIONS. - The City Council may adopt the resolution or direct staff to make changes to the resolution and then adopt the resolution as amended. The City Council may also decline to adopt the resolution. Respectfully submitted, Herbert L. Prouty City Attorney RESOLUTION NO. RESOLUTION OF THE CITY OF DENTON CITY COUNCIL REQUESTING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION FOR A METHOD OF ROAD ASSESSMENT DAMAGES OR INCREASED FEES PAID BY HEAVY TRUCKS IN USING CITY, COUNTY OR STATE ROADS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 27 - 29, in Corpus Christi, Texas; and WHEREAS, the cities in North Texas are experiencing a tremendous amount of road damage as a result of gas well drilling in the Barnett Shale; and WHEREAS, legislation is needed that provides for a method of road assessment damages or increased fees paid by heavy tmcks in using city, county or state roads; NOW THEREFORE, THE COUNCIL OF TIlE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council requests that the Texas Municipal League support legislation that provides for a method of road assessment damages or increased fees paid by heavy tracks in using city, county or state roads. SECTION 2. That the City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AGENDA iNFORMATION SHEET AGENDA DATE: September 7, 2004 DEPARTMENT: Legal Department CITY ATTORNEY: Herbert L. Prouty, City Attomey SUBJECT. - Consider a resolution requesting that the Texas Municipal League support legislation for funding options, including funding for maintenance and operation, of city owned or city/private partnerships for convention centers, including hotels; and providing an effective date. BACKGROUND. - Many cities in Texas need convention centers. Convention center funding is necessary for the construction, maintenance and operation of convention centers. State legislation is needed for funding options, including funding for maintenance and operation, of city owned or city/private partnerships for convention centers, including hotels. This resolution would ask the Texas Municipal League for its support for legislation for convention center funding options, which includes funding for convention hotels. OPTIONS. - The City Councii may adopt the resolution or direct staff to make changes to the resolution and then adopt the resolution as amended. The City Council may also decline to adopt the resolution. Respectfully submitted, Herbert L. Prouty City Attorney RESOLUTION NO. RESOLUTION OF THE CITY OF DENTON CITY COUNCIL REQUESTING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION FOR FUNDING OPTIONS, INCLUDING FUNDING FOR MAINTENANCE AND OPERATION, OF CITY OWNED OR CITY/PUBLIC PRIVATE PARTNERSHIPS FOR CONVENTION CENTERS, INCLUDING HOTELS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 27 - 29, in Corpus Christi, Texas; and WHEREAS, convention center funding is necessary for the construction, maintenance and operation of convention centers, including hotels; and WHEREAS, state legislation is needed for funding options, including funding for maintenance and operation, of city owned or city/private partnerships for convention centers and convention center hotels; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council requests that the Texas Municipal League support legislation for funding options, including funding for maintenance and operation, of city owned or city/private partnerships for convention centers, including convention center hotels. SECTION 2. That the City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ,2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY :~~ AGENDA DATE: DEPARTMENT: CITY ATTORNEY: AGENDA INFORMATION SHEET September 7, 2004 Legal Department Dorothy G. Palumbo, Senior Assistant City Attorney/ Legislative Coordinator SUBJECT: Consider approval of a resolution of the City of Denton City Council requesting the Texas Municipal League to support legislation that repeals Section 403.003 of the Texas Local Government Code, the drainage exemption for state entities; and providing for an effective date. BACKGROUND: During the 2003 regular session, the legislature enacted legislation that exempts state properties, state colleges and universities from pay/ng municipal storm water utility fees. These state entities benefit from the flood prevention and storm water control provided by storm water utilities. All entities should pay their fair share of the city's efforts to prevent flooding and to respond to costly federal mandates relating to storm water run-off. When state entities are exempted from municipal drainage fees, the remaining rate payers make up the difference. This resolution would ask TML to support legislation wkich repeals the exemption for state entities from municipal drainage fees. The City Attorney's Status Report contains more information on this item. FISCAL: The exemption for state properties and state universities impacted the mtmicipaI drainage fee by approximately $252,000.00. This caused a 7 ½ % increase to the remaining rate payers. OPTIONS: The City Council may adopt the resolution, direct staff to make changes to the resolution or decide not to adopt the resolution. Respectfully submitted, Dorothy G. Ffilumbo Senior Assistant City Attorney/ Legislative Coordinator S:~Our l~oe ament~ ,gist atien ~t ~tate~dS I~ah~g~ Fe~.d~ RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, REQUESTING THE TEXAS MUNICIPAL LEAGUE SUPPORT LEGISLATION THAT REPEALS SECTION 430.003 OF THE TEXAS LOCAL GOVERNMENT CODE, THE DRAINAGE EXEMPTION FOR STATE ENTITLES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, during the 2003 regular session, the legislature enacted legislation that exempts state properties and public institutions of higher education from paying municipal storm water utility fees; and WHEREAS, these state properties and public institutions of higher education benefit fi:om the flood prevention and storm water control provided by storm water utilities, and to continue to exempt them would cause other private and public entities to seek exemptions from municipal drainage fees; and WHEREAS, these state properties and pubhc institutions of higher education should pay their proportional share of the City's efforts to prevent flooding and to respond to costly federal mandates relating to storm water mn-off; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council requests that the Texas Municipal League support legislation repealing Section 430.003 of the Texas Local Government Code, the state properties and public institutions of higher education exemption fi:om municipal drainage fees. SECTION 2. That the City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ,2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY EULINE BROCK, MAYOR