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January 18, 2005 Agenda
AGENDA CITY OF DENTON CITY COUNCIL January 18, 2005 After determining that a quorum is presem, the City Council of the City of Demon, Texas will convene in a Work Session on Tuesday, January 18, 2005 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, hold a discussion, and give staff direction regarding the City of Demon's diversity efforts. Receive a report, hold a discussion, and give staff direction regarding the annual independem financial audit. o Receive a report, hold a discussion, and give staff direction regarding 2006 Congressional project requests. Receive a report, hold a discussion, and give staff direction regarding a proposed reorganization of the Legal Department. o Receive a report, hold a discussion and give staff direction concerning the airport terminal building project to include GRW Willis' initial recommendation to replace the existing terminal building. The Airport Advisory Board unanimously recommends the advice as outlined by the GRW Willis report (7-0). o Receive a briefing, hold a discussion and give staff direction regarding zoning amendments to the Denton Development Code affecting multifamily development. (SI04-0036, SUP for Multifamily) o Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of January 18, 2005. 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 GOVERNMENT CODE, as amended, as set forth below. 1. Closed Meeting: mo Consultation with Attorney -- Under TEXAS GOVERNMENT CODE Section 551.071. Receive a briefing from the City's attorneys on the status and a proposed settlement of potential litigation against S.J. Louis Co. where to discuss such matters 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. City of DeNon City Council Agenda January 18, 2005 Page 2 ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE 'PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Demon City Council on Tuesday, January 18, 2005 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE mo U.S. Flag Texas Flag "Honor the Texas Flag - i pledge allegiance to thee, Texas, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS mo Proclamations/Awards Yard of the Month Awards Recognition of staff accomplishments 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consem Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consem Agenda (Agenda items A-J). 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-J below will be approved with one motion, if items are pulled for separate discussion, they will be considered as the first items following approval of the Consent Agenda. mo Consider approval of a resolution by the City Council of the City of DeNon relating to the issuance of bonds by North Texas Higher Education Authority, inc.; approving the issuance of such bonds and the use of the proceeds of such bonds and; making certain findings in connection therewith; providing an open meetings clause; and providing an effective date. City of DeNon City Council Agenda January 18, 2005 Page 3 Bo Consider adoption of an ordinance of the City of DeNon, Texas, amending Section 22-38 of Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of DeNon, Texas, relating to facility and program fees by adopting a schedule of fees; repealing all fees in conflict with such schedule; repealing Ordinance No. 2004-262 and all ordinances in conflict with the new schedule of fees; and providing an effective date. The Parks and Recreation Board recommends approval (6-0). Co Consider adoption of an ordinance authorizing the financing for five refuse trucks, a motor grader, a skid steer loader, and five 3A ton 4 x 4 diesel pickup trucks for the Solid Waste Departmem, and a wheel loader and screener for Beneficial Reuse through a lease purchase financing agreement; providing for the expenditure of funds therefor; and providing an effective date (File 3279 - Lease Purchase of Refuse Trucks and Equipmem, approximate finance charges of $123,364.40). The Public Utilities Board recommends approval (7-0). Do Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of lab service for drinking water testing for the City of DeNon Water Production Division; providing for the expenditure of funds therefor; and providing an effective date (Bid 3273 - Annual Comract for Lab Service for Drinking Water Testing awarded to MWH Laboratories in the estimated amoum of $27,500). The Public Utilities Board recommends approval (7-0). mo Consider adoption of an ordinance approving an amendmem to the Golf Driving Range lease contract between the City of Denton and The Fundamentals Program, Inc. dba ONCourse USA to provide for the installation, maimenance, and operation of a batting range at North Lakes Park in the City of Denton; and providing an effective date. The Parks and Recreation Board recommends approval (5-0). Fo Consider adoption of an ordinance of the City of DeNon, Texas authorizing the City Manager to execute an agreemem for Professional Legal Services with the firm of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C. for legal services pertaining to represemation of the City before the Public Utility Commission of Texas, in connection with its transmission cost of service case; authorizing the expenditure of funds therefor; providing for retroactive effect of the agreement; and providing an effective date. The Public Utilities Board recommends approval (7-0). Go Consider adoption of an ordinance approving a commercial operator airport lease agreemem between the City of DeNon, Texas and GCBSXX LLC, and providing an effective date. The Airport Advisory Board recommends approval (5-0). Ho Consider adoption of an ordinance abandoning and vacating an eight foot wide utility easement affecting Block 34R, Lots 1 & 2, and Block 29, Lots 4, 5, 22 & 23 of the Preserve at Pecan Creek, Section A3, an addition to the City of Denton, Texas, according to the plat thereof, recorded in Cabinet V, Slide 279 of the plat records of Denton County, Texas and providing for an effective date. City of DeNon City Council Agenda January 18, 2005 Page 4 Consider adoption of an ordinance of the City of DeNon, Texas authorizing the City Manager to execute an agreemeN for Professional Legal Services with the Law Offices of Jim Boyle, PLLC. for Professional Legal and Lobbying Services related to the 79th Texas Legislative session pertaining to the City of Denton, Texas/Denton Municipal Electric; authorizing the expenditure of funds therefor; providing for retroactive effect and approval of the agreement; and providing an effective date. The Public Utilities Board recommends approval (7-0). Jo Consider adoption of an ordinance of the City Council of the City of DeNon, Texas authorizing the City Manager to execute a Water Main Pro-Rata ReimbursemeN AgreemeN between the City of DeNon and Nub Neighbors for reimbursement of the costs of building a water main, through pro-rata charges paid to the city for the benefit of the City of DeNon and Nub Neighbors as specified in the Pro-Rata Reimbursement Agreement; authorizing the transfer of funds pursuant to the agreement; and providing an effective date. The Public Utilities Board recommends approval (6-0). 4. PUBLIC HEARINGS mo Hold a public hearing and consider adoption of an ordinance regarding a Detailed Plan for Planned DevelopmeN 132 (PD-132) for approximately 24.8 acres. The property is generally located on the south side of Pockrus Page Road, on the east side of Lakeview Boulevard. 116 ResideNial lots are proposed. The Planning and Zoning Commission recommends approval (6-0). (Z04-0024, The Villages of Carmel/Preserve at Pecan Creek Sec. A2) Bo Hold a public hearing and consider adoption of ordinances for property located on the south side of Hickory Street, on the west side of Ruddell Street and known as Renaissance Court. An ordinance rezoning approximately 12.5 acres from Neighborhood Regional Mixed Use 12 (NRMU-12) zoning district to Neighborhood Regional Mixed Use (NRMU) zoning district, with an overlay. The Planning and Zoning Commission recommends approval (6-0). (Z04- 0045, Renaissance Court Rezoning) An ordinance adopting a Specific Use Permit for a multi-family developmeN. The Planning and Zoning Commission recommends approval (6-0). (Z04-0046, Renaissance Court SUP) o An ordinance adopting the Alternative Development Plan for a proposed multi-family developmeN. The Planning and Zoning Commission recommends approval (6-0). (ADP04-O006, Renaissance Court ADP) Co CoNinue a public hearing and consider adoption of an ordinance of the City of Denton, Texas, finding that the current rates of CoServ Gas Ltd. are unreasonable; approving CoServ Gas Ltd.'s revised and uncontested tariffs; approving a rate phase-in; authorizing coNinuation of deferral of carrying charges on plan held City of DeNon City Council Agenda January 18, 2005 Page 5 for future use; recognizing CoServ's right to surcharge for facility relocation required by the City; setting the effective date of new tariffs as February 1, 2005; finding the Cities' rate case expenses reasonable; severing the determination of the reasonableness of CoServ Gas Ltd.'s rate case expense from approval of the revised tariffs; retaining jurisdiction over the determination of the reasonableness of CoServ Gas Ltd.'s rate case expense issue until March 1, 2005; adopting a base rate case moratorium; finding that any relief requested by CoServ Gas Ltd. not specifically grained herein is denied; adopting a most favored nations provision; finding that the meeting at which this Ordinance is passed is open to the public as required by law; and providing for notice of this Ordinance to CoServ Gas Ltd; and providing an effective date. 5. ITEMS FOR INDIVIDUAL CONSIDERATION mo Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of sidewalks for the City of DeNon; providing for the expenditure of funds therefor; and providing an effective date (Bid 3272 - Prairie, Crawford, Paisley Sidewalks awarded to Floyd Smith Concrete, Inc. in the amoum of $162,145.18). Bo Consider adoption of an ordinance accepting sealed proposals and awarding a comract for Long Term and Short Term Disability Program for the City of DeNon; providing for the expenditure of funds therefor and providing an effective date (RFSP 3264 - Long Term and Short Term Disability Program awarded to UNUM Providem in the estimated annual amoum of $199,100). Co Consider adoption of an ordinance accepting competitive bids and awarding a comract for the purchase of fleet vehicles; providing for the expenditure of funds therefor; and providing an effective date (Bid 3251 - Fleet Vehicles 2005 awarded to the lowest responsible bidder for each item in the amoum of $496,428). The Public Utilities Board recommends approval of the Utility and Solid Waste vehicles (7-0). Do Consider adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment; providing for the expenditure of funds therefor; and providing an effective date (Bid 3253 - Fleet Heavy Equipmem 2005 awarded to the lowest responsible bidder for each item in the amoum of $780,133.57). The Public Utilities Board recommends approval of the Utility and Solid Waste vehicles (7-0). mo Consider approval of a resolution of the City of DeNon, Texas adopting the City of Denton's 2005 State Legislative Program for the 79th Texas Legislature; providing a repealer; and providing an effective date. Fo Consider approval of a resolution of the City of DeNon, Texas cominuing to urge the Texas Legislature not to adopt any school finance reform or tax system changes that would negatively affect city revenues and economic developmem efforts; and providing an effective date. City of DeNon City Council Agenda January 18, 2005 Page 6 G. Consider nominations/appoimmems to the City's Boards and Commissions. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: A. Willie Hudspeth regarding concerns of Southeast Denton. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Possible Cominuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. 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 ,2005 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: DEPARTMENT: ACM: January 18, 2005 Human Resources Kathy DuBose SUBJECT Receive a report, hold a discussion, and give staff direction regarding the City of DeMon's diversity efforts. BACKGROUND Workforce Diversity has been a long-standing commitmem of the City of DeNon. Our goal has been to create a diversified workforce that is reflective of the community at all levels of the organization, in every department, and to promote diversity as an opportunity to celebrate and value differences. The overall diversity effort is spearheaded by the City Manager who works inter-mutually with the Director of Human Resources. The Director of Human Resources oversees and monitors the organization's strategic plans and accomplishments. Various employee groups and community task forces have been developed to assist and support the overall diversity effort. The City of Denton recognizes the importance of and is dedicated to having a diversified workforce. In fact, diversity efforts of the City date back to the early 1980's with an Affirmative Action Plan. In 1992 the City progressed from Affirmative Action to Workforce Diversity, which shifted our focus from a "federally-mandated" mission to a sincere commitmem to develop an accessible and inclusive work environmem. Several Workforce Diversity plans have been developed over the years, and in September of 2002, the City Council was presemed with a new five-year diversity plan, effective from fiscal year 2002/2003 through 2006/2007. This plan consists of a history of our diversity efforts, organizational and departmental goals, and statistics that will be updated annually. Organizationally we have set goals for recruitment, retention, training, development, communication, taskforces, and committees. Some of the highlights in the areas of recruitment and retention are provided below. A full copy of the five-year Workforce Diversity Plan has been included in your backup. The plan is also posted on the City's website. In the area of recruitment: The Police, Fire, and/or Human Resources departments have historically participated in a variety of job fairs as well as local evens such as Juneteemh, Cinco de Mayo, Arts and Jazz Festival, and Fuego y Alma. A sample of the job fairs attended include San Amonio Agenda Information Sheet January 18, 2005 Page 2 Military Fair, Texas A & M-Commerce, MAC3 in Arlington, Fort Hood, TWU, and UNT. · All open positions are posted on the City's website, the DeNon Record Chronicle, DTV Channel 26, and the bulletin boards in Human Resources and the Service Cemer. · Depending on the needs of the departments and their budget, the Human Resources department works with the hiring supervisors to advertise in different mediums to target various applicants. · An on-line application was implememed in April of 2004 to allow for easier accessibility to the City's application process. Out of 9,641 non-civil service applications received in FY03/04, 3,312 (34%) were received on-line. Just in the first quarter of FY04/05, we have received 2,290 non-civil service applications of which 2,023 (88%) were received on-line. · On August 9, 2003, a dual Police Recruit exam was held at the University of North Texas and at the University of Houston in an effort to recruit more minorities. Sixteen (16) people tested in Houston and 218 tested in DeNon. One (1) African-American male who tested in Denton was hired from this test. Although we had a small number of test takers in Houston, the dual testing represents the City's committed effort to diversify its workforce. · On January 25, 2003, the Police Departmem hosted a 3 on 3 Women's Basketball Tournament at Denton High School in an attempt to recruit more women. From their experience, a number of athletes are imerested in becoming Police Officers. · The Police Department worked with the Public Information Office to produce a recruitmem video emitled "Behind the Badge." This video, finalized in February of 2004, is shown at job fairs, when speaking at Police Academies, and in Criminal Justice classes. The individuals in the video represem a diverse group of employees at the Denton Police Department and each section of the Police Department is represented. · In 2003, the Fire Chief, with the support of City Council, appoimed a committee, which consisted of six African-American citizens, to review the Fire Department's recruitment and hiring practices and to make recommendations for improving minority recruitmem. · In 2003, the City Manager worked with an advisory committee to review the recruitment and hiring practices of the organization as well as the diversity training for employees. In the area of retention: · We provide employees with opportunities for training and developmem through a variety of training programs. One training program that we require all new employees to attend is a four-hour Diversity workshop as part of New Employee eriemation (NEe). In FY03/04, 126 employees attended NEe. Sixteen (16) employees have attended in the first quarter of FY04/05. · In October of 2001, we implemented a 24-month supervisory training program called the STEP (Supervisory Tools for Effective Performance) Academy to help develop and prepare employees for supervisory roles, current or future. This program won a TML Excellence Award in 2002. Fifty-five (55) employees have graduated from the STEP Academy since its implementation. Agenda Information Sheet January 18, 2005 Page 3 · "Celebrating Differences" is included as one of the required classes in the STEP Academy. In FY03/04, 26 employees attended this training with training scheduled for January 11th, May 12th, and September 7th in FY04/05. · We have several policies in place, including but not limited to, Equal Employment Opportunity, Harassmem Prevemion, Ami-Discrimination, Workplace Violence Prevention, Employee Assistance Program, and Problem-Solving, that have been implememed to guide and protect all employees and to help create a workplace of inclusion and respect. · In October of 2004, the Human Resources department coordinated a "Diversity Awareness Month" to promote and reinforce the importance of diversity in the workplace. Activities included a showcase of cultural food and desserts, "Diversity Awareness" lunch-n-learn workshop, and disability awareness. These activities were highlighted on DTV's November 2004 Demon Magazine. Again, these are just brief examples of some of the things the City does to attract, retain and promote a diversified workforce. In August of 2004, the City Council was presemed with the City's workforce diversity statistics using employee data as of June 2004. These statistics are included on page 39 of the Workforce Diversity Plan that is attached as back-up. As evident from the chart, we closely mirror most racial categories, but we are somewhat behind the community's Asian represemation. We realize we have room to improve our statistics, and we are not as diverse as we would like to be in some departmems. However, a three (3) year city-wide comparison of our statistics for our regular full-time and regular part-time employees shows that we are improving overall in most categories. Three Year Comparison of Workforce Analysis 0.00% American Black Hispanic Indian Asian White Other ~12002 4.90% 9.10% 1.00% 1.10% 83.50% 0.40% [] 2003 5.50% 9.20% 1.10% 1.30% 82.50% 0.40% D2004 5.70% 10.30% 1.10% 1.20% 81.40% 0.30% Race Agenda Information Sheet January 18, 2005 Page 4 We surveyed other cities within Denton County, including Flower Mound, Lewisville, The Colony, Little Elm, Hickory Creek, Corinth, and Sanger to compare our workforce diversity statistics. Additionally, we surveyed the City of Carrollton since some of their city limits fall within Denton County and because they are of comparable size. Of the cities surveyed, only Lewisville and Sanger responded with data. The comparison is as follows: City of Denton Compared to Other Muncipalities Full-time/Part-time Only Black Hispanic Asian 'White Other More F~ma!~ M~!~ i i ^ information not tracked/provided. (1) 2000 Census - Denton County residents who are 18 years and over. Source: U.S. Census Bureau, Census 2000 Redistricting Data (Public Law 94-171) Summary File, Matrices PL1, PL2, PL3, and PL4. (2) Denton: Employee Data as of: June 22, 2004. (3) Lewisville: Employee Data as of: June 30, 2004. (4) Sanger: Employee Data as of: January 5, 2005. In summary, we work hard to ensure that we are fair, ethical, and legal in all that we do and are committed to ensuring that all employees, citizens, and applicants are treated with respect. We are committed to our efforts of achieving a more diversified workforce. We also realize that, while representation is important, diversity is about much more than that. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The 2004 workforce diversity statistics were provided to City Council on August 3, 2004. Attachment: Workforce Diversity Plan Respectfully submitted: Carla Romine Director of Human Resources ~rce Plan Fiscal Year 2002/2003 throu 2006/2007 Tab 1 II. lll. IV. Tab 2 Vo Tab 3 VI. Tab 4 VII. Workforce Diversity Plan Table of Contents Affirmative Action Program History ........................................... 1 A. Affirmative Action Program ............................................ 1 B. Affirmative Action Advisory Committee ........................ 1 Workforce Diversity Plan History ............................................... 1 A. Workforce Diversity Plan ................................................ 1 B. Workforce Diversity Plan Updates .................................. 1 C. Workforce Diversity Committee ...................................... 2 D. Diversity Task Force ........................................................ 2 E. Diversity Management Panel ........................................... 3 F. Diversity Management Panel Research, Findings and Recommendations ............................................................ 4 G. Workforce Diversity Plan Components ........................... 5 Workforce Diversity Plan Accomplishments .............................. 6 Current Workforce Diversity Plan Initiatives .............................. 11 Historical Timeline ...................................................................... 12 Organizational Strategies ............................................................. 14 Individual Department/Division Strategies .................................. 24 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page i Table of Contents (continued) Tab 5 VIII. Workforce Analysis ..................................................................... 38 City of Denton vs. Denton County Residents ............................. 39 City of Demon Workforce Summary ........................................... 40 Job Family Analysis -Excluding Seasonal, Special Agreemem and Temporary ........ 40 -Including Seasonal, Special Agreemem and Temporary .......... 41 -Seasonal, Special Agreemem and Temporary Summary ......... 42 City Manager's Office ................................................................. 43 Economic Development ............................................................. 44 Municipal Judge's Office ............................................................. 45 City Attorney's Office ................................................................. 46 Public Safety and Transportation Summary ................................ 47 Airport and Transit Operations .................................................. 48 Police .......................................................................................... 49 Fire ............................................................................................. 50 Engineering ................................................................................ 51 Planning and Development ........................................................ 52 Facilities Management ............................................................... 53 Fiscal and Municipal Services Summary ..................................... 54 Finance Administration .............................................................. 55 Fiscal Operations ....................................................................... 56 Management and Budget ........................................................... 57 Library Services ......................................................................... 58 Human Resources ...................................................................... 59 Technology Services .................................................................. 60 Utilities Summary ........................................................................ 61 Water and Wastewater Utilities ................................................. 62 Solid Waste ................................................................................ 63 Electric Utility ............................................................................ 64 Customer Service ....................................................................... 65 Parks and Recreation .................................................................. 66 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page ii Table of Contents (continued) Tab 6 IX. Appendices - Equal Employment Opportunity (EEO) Policy ........................ 67 - American with Disabilities Act (ADA) Policy ......................... 68 - Recruitment Efforts ................................................................... 70 - Performance Measures .............................................................. 79 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page iii Affirmative Action Program History A. Affirmative Action Program The City's Affirmative Action Program dates back to the early 1980's. Since that time, the City has maintained a policy of equal employment opportunity (EEO) and non-discrimination in employment. While policy established the framework in which the City operated, the end result was actually determined by daily practices and systematic compliance with the policy. As a result, the City's Affirmative Action Plan was developed and updated every two years until fiscal year 1996-1997. At that time, a five-year Workforce Diversity Plan was developed. B. Affirmative Action Advisory Committee The Affirmative Action (AA) Advisory Committee was implemented in 1983 and originally met annually to provide input on changes and/or revisions needed to the Affirmative Action Plan. In 1987, the committee moved from annual meetings to quarterly meetings continuing to provide input on changes as well as assist in evaluating/updating the plan. The AA committee was initially comprised of twelve (12) managers and supervisors. The Committee was facilitated by the Employee Relations Specialist and supervised by the Director of Personnel/Employee Relations. Employee sub-groups were developed as needed on specific issues. II. Workforce Diversity Plan History A. Workforce Diversity Plan The City progressed from Affirmative Action to Workforce Diversity (WFD) in 1992. At that time the City's focus and philosophy also progressed from a "federally-mandated" mission to a sincere commitment to develop an accessible and inclusive work environment. The City's diversity mission was to create a diversified workforce that reflected the demographics of the community. Critical elements in the WFD plan included: · Recruitment efforts to increase qualified protected class applicants · Data analysis of applicant tracking information, workforce statistics, etc. · Employee development efforts · Employee communication/education · External communication/community involvement B. Workforce Diversity Plan Updates Beginning in 1992, two (2) year WFD plans were developed and implemented for 1992-94 and 1994-96. These replaced the annual plan that served until that time. In 1996, the City began working on a five-year diversity plan with the assistance of Dr. Richard Lewis, diversity consultant. This plan began with fiscal year 1997/98 and expires at the end of fiscal year 2001/02. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 1 C. Workforce Diversity Committee The Affirmative Action Advisory Committee officially became the Workforce Diversity Committee in 1992. The WFD committee was comprised of twelve (12) diverse employees from throughout the organization plus a represemative from the Human Resources Department. The committee met on a monthly basis and reported to the City Manager. Outlined below is the vision and mission developed by the committee as well as the role it served: ,,/The committee's vision: "To enhance awareness of group differences within the organization with an emphasis on appreciation and value. As a result, to create an atmosphere in which employees are able to succeed without influence from group membership." ,,/The committee's mission: "The committee, in partnership with the City Manager and acting in an expert role, will develop selected goals and assess progress toward the achievement of workforce diversity." ,,/The committee's role(s): · Assess the organization's progress and standards · Be knowledgeable in the field of diversity · Develop and update plans and standards · Become bridge builders in the organization and the community D. Diversity Task Force In 1996, the City Council embarked on a planning process to address presem and future needs spurred by workforce and community diversity. The council recognized the importance of establishing a task force to study and report to the City on specific issues related to diversity. They completed a planning workshop in January of 1996 to provide a framework for appoiming and offering guidance for task force members. An overall mission statemem was developed by the City Council as a vision for idemifying and investigating diversity related issues. This mission statement was as follows: The City of Denton strives to capitalize on the contributions and interests of individuals from diverse backgrounds to enhance its mission, operations, and delivery of services. We will foster fairness and equal access for all employees and citizens. The Diversity Task Force was comprised of eighteen (18) members. Of these, fourteen (14) were citizens appoimed by the City Council and four (4) were City of DeNon employees. The task force was charged by the City Council with three broad objectives: 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 2 ,/ To study selected diversity issues and provide recommendations, ,/ To coordinate the task force efforts, where appropriate, with the City's Workforce Diversity Committee, and ,/ To complete the study with pertinent recommendations within nine months. Diversity Management Panel The Diversity Management Panel was created in direct response to Council approved recommendations by Diversity Consultant Dr. Richard Lewis and the Council-appointed Diversity Task Force. Chaired by the Director of Human Resources, the Diversity Management Panel consisted of fifteen (15) managers who were designated to discuss, research and provide plans of action to implement seven (7) recommendations from the Diversity Task Force. The Diversity Management Panel convened in May 1997 and disbanded in September 1997. The recommendations by Dr. Lewis and the Diversity Task Force were presented to the City Council by the City Manager in February 1997. The recommendations were as follows: · Implement a Diversity Management Panel that will be responsible for implementing recommendations accepted by the City Council. · Expand the City's internship program with a recruitment component aimed at attracting minority and female college students. · Establish temporary mobility positions designed to allow individuals to cross-train and improve their opportunities for upward mobility. Two (2) to three (3) positions are to be created and located in the City Manager's office. Minority employees are to be targeted. · Consider training options for the unemployed and underemployed that would continue to support programs such as the Summer Youth Employment and Training program administered by the North Texas Education and Training Co-op. · Create an Employee Recruitment Plan designed to consolidate the recruitment activities in the Human Resources Department, rather than the existing departmental approach. This effort is to be adequately funded and include a focused approach to improve minority participation. · Consider off-site Civil Service examinations. A systematic study should be conducted to determine the best off-site testing venues. · Update the City's compensation plan and bring pay ranges to "market" as soon as possible. Improved recruitment efforts are contingent upon competitive pay. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 3 Based Diversity Management Panel Research, Findings, and Recommendations In order to maximize the management panel's research efforts, the Diversity Management Panel was divided into four (4) sub-groups: Internship Program Mobility Positions Training for the unemployed and underemployed Employee recruitment plan and off-site civil service exams on their research and findings, the panel made the following recommendations: Recommendation 1: Increase the administrative aide and intern salaries to be competitive with the market. Current entry-level salary (in 1998) for the administrative aide, intern I and II positions are $5.15, $5.91 and $7.78 respectively. These positions will be analyzed and appropriately classified into market pay bands that will enable managers to attract qualified individuals and create a diversified workforce where necessary. Recommendation 2: Consider utilizing the developmental tracking option (18 months of additional experience and training to reach minimum qualifications of the position) for employees demonstrating potential for upward mobility in each department, effective May 1998. Generally, a lower cost is associated with hiring employee on developmental tracking (5% below entry salary). Any additional cost would be incurred by the individual departments. Recommendation 3: Create two (2) or three (3) mobility positions to be rotated from the City Manager's office (CMO) with the minimum qualifications of a bachelor's degree in public administration or a related field. The condition of employment would include a two (2) year minimum commitment and continuation of the employee's college education where appropriate. Mobility positions will be created for fiscal year 1998-99 only if staff is able to find available funding. In addition, an individual action plan and timeline will be designed to include two (2) years of training and development in four (4) to six (6) major departments such as: the CMO, Finance, Utilities and Human Resources. Departmental rotation would be based upon employee interest, area of expertise and organizational need. Recommendation 4: Continue City participation in the Texas Education and Training Co-op's Summer Youth Training program for fiscal years 1999-2003. Additionally, encourage participating departments to conduct departmental new employee orientation to target position responsibilities and departmental expectations to enhance the program's effectiveness. There is no salary or benefits cost associated with this recommendation. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 4 Recommendation 5: Continue annual recruitmem efforts to include an increase in recruitmem activities with local universities and technical colleges. Survey directors, managers and supervisors regarding upcoming recruitmem needs, include applications and an imerviewing schedule where feasible to increase the pool of qualified applicams for open positions, include represematives from the Workforce Diversity Committee and/or the departmems on scheduled recruitmem trips or job fairs where feasible effective October 1, 1998. There is no recommendation for a budget increase for FY 1998-99. Recommendation 6: As a pilot program, conduct one (1) off-site test for the Fire Departmem for fiscal year 1998-99. The approximate cost will be $4,000 - $5,000, which would include costs for recruiting, testing and post-testing (backgrounds). if the pilot program is successful, we recommend that the testing be expanded to include one (1) off-site testing per year in both Police and Fire. include funding in the 1998- 99 budget process for approval by Council and implememation by staff effective October 1, 1998. Recommendation 7: Continue to employ aggressive compensation strategies toward building a market- driven compensation plan. include compensation recommendations in the 1998- 99 budget process for Council approval. Recommendation 8: Devise tracking system to evaluate opportunities to hire minorities, women and other protected class individuals. Recommendation 9: Disband then redesign the Workforce Diversity Committee to be comprised of managers, as per the recommendation provided by Diversity Consultam Dr. Lewis effective October 1, 1998. Workforce Diversity Plan Components The five-year WFD Plan (effective fiscal year 1997/99 - 2001/2002) consisted of two major componems. These include: A. Component #1: Workforce Diversity Committee Plan The Workforce Diversity committee with assistance from Dr. Richard Lewis, diversity consultam, developed four (4) major issues with a goal and strategies for each issue. The four major issues include: · Expand communication of diversity issues. · increase individual professional growth and opportunity. · Positively impact the community's perception of the City of DeNon as an inclusive and accessible employer and service provider. · increase WFD members' ability to be expert advisors and educators in the area ofworkforce diversity. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 5 B. Component #2: Departmental/Divisional Plans Another component of the WFD plan included departmental issues, goals and strategies. Each department director was responsible for developing three (3) major issues with a goal and strategies for each issue. Two issues were identified by the City Council and City Manager: 1. Devise and employ aggressive strategies that would maintain and create where necessary diversity within employee-related activities, task forces and committees. 2. Devise and employ aggressive strategies to maintain and create where necessary a diversified workforce that reflects the demographics of qualified members of our community within each department or division while maintaining a race and gender neutral hiring, selection and promotion process. iii. Workforce Diversity Plan Accomplishments The Human Resources department has been evaluating the goals outlined in the workforce diversity plan. In January 2000, the Director of Human Resources presented a highlight of accomplishments for FY 1998/99 to the City Council as well as updated statistics as of January 13, 2000. The highlight of accomplishments since the implementation of the five-year plan reveals that the City has made great strides towards achieving its goals as outlined in the plan. Briefly, the City's efforts have included the following: Recommendation 1: Increase the administrative aide and intern salaries to be competitive with the market. Accomplishments: Administrative aide and intern salaries have increased by approximately thirty-three percent (33%) from fiscal year 1997/98 to fiscal year 2001/02. Recommendation 2: Consider utilizing the developmental tracking option (18 months of additional experience and training to reach minimum qualifications of the position) for employees demonstrating potential for upward mobility in each department, effective May 1998. Accomplishments: In 1998, a development tracking policy was established. Since the implementation of this policy, approximately ten (10) employees have been hired under the developmental tracking policy. Recommendation 3: Create two (2) or three (3) mobility positions to be rotated from the City Manager's Office with the minimum qualifications of a bachelor degree in public administration or a related field. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 6 Accomplishments: Due to the challenge of managing resources to effectively service a growing population in lean budget years, this recommendation has not been implemented to date. Recommendation 4: Cominue City participation in the Texas Education and Training Co-op's Summer Youth Training program for fiscal years 1999- 2003. Additionally, encourage participating departments to conduct departmental new employee orientation to target position responsibilities and departmental expectations to enhance the program's effectiveness. Accomplishments: The City of Denton actively participated in the Summer Youth JTPA program beginning in 1983 umil July of 1999 when the program's funding was cut. JTPA became the Workforce Investment Act at that time. As participants in the JTPA program, the City of Denton utilized the services of approximately 50-70 studems each year. The City of DeNon has also participated in the Workforce Investment Act program, but on a much smaller scale. Due to funding constraints and the requirements for youths to participate in the program, the number of youths available has declined. In April 2002, the City of DeNon participated in "Youth in Govemmem Day". The goal of this program is to introduce high school students to their local government in order to give them a better understanding as to what actually goes on in City Hall. The principals of DeNon and Ryan High Schools chose a group of six to eight students to represent their schools as "Student Ambassadors". The ambassadors are a diverse group, with an emphasis on involving at-risk students. As part of the program, the students shadowed several City of DeNon staff members. representatives from the Workforce departments on scheduled recruitment effective October 1, 1998. Recommendation 5: Cominue annual recruitmem efforts to include an increase in recruitment activities with local universities and technical colleges. Survey directors, managers and supervisors regarding upcoming recruitment needs, include applications and an imerviewing schedule where feasible to increase the pool of qualified applicams for open positions, include Diversity Committee and/or the trips or job fairs where feasible Accomplishments: · In conjunction with Police and Fire, the Human Resources department participated, and continues to participate in approximately twenty to twenty-five job fairs, recruitmem trips and career days each year; 1998 was the first year to include local high schools. In 2001, recruitment efforts expanded to include Cinco de Mayo and Juneteemh celebrations. · In 2002, the Human Resources department implemented a "recruitment on wheels" program to locally promote the City of Denton as a great place to work and to provide easy access for citizens to apply for positions. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 7 · Idemified and utilized protected class Police, Fire, and Human Resources employees as recruiters. · Expanded recruiting efforts to include advertising on the local government access channel and City of DeNon website. · Developed a list of minority publications commonly used by departmems for advertising and distributed the list to hiring supervisors to increase the awareness of minority advertising. · In 2001, the Fire Chief requested the City Council to authorize a Diversity Task Force consisting of three African-American and three Hispanic citizens to review the Fire department's recruiting and hiring process; the task force recommended to shift the focus of recruiting to the local level. Recommendation 6: As a pilot program, conduct one (1) off-site test for the Fire Department for fiscal year 1998-99. Accomplishments: In February 1999, the City conducted its first dual off-site civil service emry-level fire fighter exam at Wiley College in Marshall, Texas and at Texas Woman's University in DeNon, Texas. Of the 537 applicams participating in the exam, 118 were minorities. Recommendation 7: Continue to employ aggressive compensation strategies toward building a market-driven compensation plan. Accomplishments: · Increased non-civil service employee compensation by approximately thirty-seven percem (37%) from fiscal year 1997/98 to fiscal year 2001/02. Increased civil service employee compensation by approximately thirty- nine percem (39%) from fiscal year 1997/98 to fiscal year 2001/02. Recommendation 8: Devise tracking system to evaluate opportunities to hire minorities, women and other protected class individuals. Accomplishments: · The Human Resources department includes an "Applicant Data Record" (ADR) in all applications. This sheet tracks an applicam's ethnicity and gender and is completed by applicams on a volumary basis. At the end of each selection process, the Human Resources department sends a summary report to the hiring supervisor that includes the ethnicities and genders of the applicants who applied for the position, the ethnicities and genders of the applicants imerviewed, and the ethnicity and gender of the person hired (based on the ADRs received). · Approximately once a year, the Human Resources department summarizes the ethnicities and genders of employees both citywide and by department. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 8 This helps promote the awareness of some of the diversity make-up of the organization as compared to the Denton County civilian labor force. Recommendation 9: Disband then redesign the Workforce Diversity Committee to be comprised of managers, as per the recommendation provided by Diversity Consultant Dr. Lewis effective October 1, 1998. Accomplishments: The committee was disbanded. Diversity issues have been discussed with an "unofficial" committee of city employees who are certified through the National Coalition Building Institute (NCBI) to conduct diversity training. In fact, in 2000, this committee assisted the Human Resources department with hosting a "diversity awareness" month including weekly activities such as a "Taste of Diversity" food fair, disability training, and conflict resolution training. These employees represent various position levels and ethnicities in the organization. There has been some turnover of employees; however, currently there are five (5) certified employees. Other accomplishments include: Celebration of Diversity in the Community · Continued efforts to sponsor a myriad of festivals and celebrations including Cinco de Mayo, Juneteenth, Martin Luther King, Jr. celebration, Blues Festival, Jazz Festival, Special Olympics, etc. · Promoted the Zapotian project, which brought 130 Mexican performers to Denton · On October 17, 2000, the Mayor presented a proclamation for "undoing racism day" · On May 10, 2001, recognized San Nicolfis de los Garza, Nuevo Leon, Mexico as Denton's Sister City to create international opportunities for businesses, organizations and the youth and adults in Denton and San Nicolfis through educational, leadership, cultural and economic development programs · Translated the City of Denton employment application to Spanish in 2001 to better communicate with the Hispanic citizens · Continue efforts to support and partner with local organizations including the Hispanic Chamber, Black Chamber, Chamber of Commerce, Council of Governments, International Sister Cities, Texas Workforce Commission, Denton Housing Authority, etc. Community Communication Efforts · Initiated bilingual printing with the printing of some materials in Spanish · Initiated bilingual efforts on the website by incorporating a Spanish section · Ensured that the website is ADA compliant · Expanded DTV to include Spanish programming blocks 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 9 · Cominued to produce more documems in Spanish (i.e. Recycling campaign and Citizen Annual Report) · Expanded translation of slides on the DTV bulletin board system · Translated 15% of video public service announcemems imo Spanish · Incorporated more Hispanic families into material production · Designed and distributed a DTV Guide that lists programming and schedule · Redesigned DTV page on City of Demon website to be more user-friendly · implememed a marketing plan for DTV and new programming · Ensured that downloads of all publications are available on the website · Refocused annual report and formatted to the "community" rather than the "city" and expanded the distribution to more residems including our Spanish-speaking population · increased the use, diversity, and quality of photography in prim materials Workforce Communication and lnclusion Efforts · In August of 2000, the Human Resources department partnered with the Diversity facilitators to coordinate a diversity awareness momh. This awareness month featured several activities including "quiz your knowledge on cultures," "Building Community" workshop; "Taste of Diversity" food fair; "Disability Awareness" workshop, and "Resolving Interpersonal and Intergroup Conflict" workshop · Expanded employee benefits to include the "Employee Assistance Program" to help employees confidentially deal with life's stresses and the variety of personal problems that can develop from them · in September of 1999, the City Manager established "mid-level" managers meetings to allow employees to ask questions, minimize rumors, keep employees abreast of current developments in the organization, etc.; these meetings have cominued with the new City Manager · incorporated mass distribution of information via e-mail (i.e., upcoming trainings, wellness information, health benefit open enrollment meetings, mid-level managers meetings, departmemal newsletters) · Implemented a City of Denton intranet to openly share and allow accessibility to departmemal and City information Training and Development Opportunities · Continue to allocate funding for citywide training including, but not limited to, Seven Habits of Highly Effective People, New Employee Oriemation that features a 1/2-day diversity workshop, Teambuilding, Conflict Resolution, Communication, Harassment Prevention, and Spanish workshops · Technology Services implememed "City of Demon Leam2University" which allows employees to access computer software training through the imranet, allowing more flexibility for training 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 10 IV. · For fiscal year 2001/02, implememed a STEP (Supervisory Tools for Effective Performance) Academy to help supervisors develop better "interpersonal skills" or skills to more effectively deal with employees; this academy is also open to non-supervisory personnel · Continue to allocate funding for a tuition reimbursement program to encourage and promote cominued education for all employees who have successfully completed their introductory period; an average of 20 employees participate in the program each year · Developed and implememed approximately twelve (12) progression plans to provide employees development opportunities and the opportunity to move from position to position based on demonstrated knowledge, skills, and abilities, without a vacancy occurring (departmems/divisions participating include Water and Wastewater Field Services, Facilities Managemem, Human Resources, Streets and Drainage, Solid Waste) · Cominued efforts of Citizen's Police Academy and Citizen's Fire Academy to help promote and educate citizens and interested employees about the operations of the departments These accomplishments represent the City's sincere commitment to creating a diversified and inclusive organization. Great strides have been made in addressing the major issues idemified by the Diversity Task Force. Current Workforce Diversity Plan Initiatives The City of DeNon cominues to recognize the need and value of a diversified workforce and is committed to achieving an environmem of accessibility, inclusion, appreciation, and respect for all people regardless of race, color, national origin, religion, age, sex, or disability. Although this new five-year plan contains many of the same goals and strategies, it represents a continued commitment of the City's efforts to achieve and appreciate a diversified workforce. It should be noted that the plan contains some new strategies as well. The City recognizes that positive, long-term results take time and the commitment of all its employees and stakeholders. The City will cominuously monitor and periodically report on the progress being made. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 11 From Affirmative Action to Workforce Diversity... Historical Timeline Early 80's Affirmative Action Program began 1983 Affirmative Action Advisory Committee was implemented > Originally comprised of 12 managers and supervisors; facilitated by the Employee Relations Specialist and supervised by the Director of Personnel/Employee Relations > Originally met annually to provide input on changes and/or revisions needed to the Affirmative Action plan 1987 Affirmative Action Advisory Committee moved from annual meetings to quarterly meetings 1992 Progressed from Affirmative Action to Workforce Diversity in which the City progressed from a "federally-mandated" mission to a sincere commitment to develop an accessible and inclusive work environment > Two-year plan was developed > Affirmative Action Advisory Committee officially became the Workforce Diversity Committee which originally met monthly and was comprised of 12 diverse employees throughout the organization plus a representative from the Human Resources department; reported to the City Manager 1994 Another two-year diversity plan was developed 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 12 1996 Diversity Consultam, Dr. Richard Lewis, was hired to help the City start the development and implementation of five- year diversity plan Jan. 1996 City Council discussed importance of appoiming a task force to review City's diversity efforts; held a diversity planning workshop to provide framework for appoiming and offering guidance for task force members; task force was comprised of 18 members--14 citizens appointed by the Council and 4 City of DeNon staff members May 1997 A Diversity Managemem Panel was created in direct response to Council approved recommendations by Dr. Richard Lewis and the Diversity Task Force; consisted of 15 managers who were designated to discuss, research, and provide plans of action to implement recommendations from the Diversity Task Force Sept 1997 Diversity Managemem Panel disbanded Oct 1997 A five-year diversity plan was implememed Jan2000 The Human Resources Director made a presemation to the City Council highlighting diversity plan accomplishmems for fiscal year 1997/98; also presemed workforce diversity statistics as of January 13, 2000 July 2001 The City Council was presemed a written documem outlining workforce diversity statistics as of July 2, 2001, compared to the new 2000 census data 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 13 City of Denton Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Strategies Please note that all departments and divisions are expected to utilize the organizational strategies. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 14 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Recruitment: Devise and employ aggressive strategies to maintain and create where necessary a diversified workforce that reflects the demographics of qualified members of our community within each department or division while maintaining a race and gender neutral hiring, selection, and promotion process. Goal: To improve where necessary or maintain employee workforce makeup levels that reflect the demographics of qualified members of the community, while maintaining a race, gender, age, and disability neutral hiring, selection, and promotion process. 1. Improve or maintain workforce diversity where necessary in each department by targeting under-represented groups who are equally qualified (taking into consideration age, gender, race and disability). 2. Aggressively advertise and recruit to attract qualified minorities. Targeted media includes but is not limited to: · Minority publications · Internet · Professional organizations · Local cable access channel · Radio stations · Colleges, universities and business schools · City of Denton job line 3. Ensure a coordinated effort with departments and Human Resources to participate in recruitment fairs with Human Resources. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 15 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Recruitment: Devise and employ aggressive strategies to maintain and create where necessary a diversified workforce that reflects the demographics of qualified members of our community within each department or division while maintaining a race and gender neutral hiring, selection, and promotion process. Goal: To improve where necessary or maintain employee workforce makeup levels that reflect the demographics of qualified members of the community, while maintaining a race, gender, age, and disability neutral hiring, selection, and promotion process. 4. Establish and maintain a list of agencies, schools, publications, and businesses that may be contacted to recruit qualified minorities. 5. Through regular review by supervisors and Human Resources, ensure job descriptions are reflective of the knowledge, skills, and abilities required for all jobs and do not discriminate or create an artificial barrier for applicants/employees. 6. Ensure all employment advertisements and recruiting information contains a non-discrimination statement (i.e., ADA/EOE/ADEA). 7. Ensure supervisors who conduct employment interviews are trained and/or have the appropriate resources available to them to conduct proper, legal, and effective interviews. 8. Through a coordinated effort between Human Resources and Technology Services, continue to enhance the City's website to provide easy access by interested parties to applications and other pertinent recruitment, hiring, and City information. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 16 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Retention: Devise and employ strategies to retain a highly motivated, productive, and diverse workforce. Goal: Develop and maintain an inclusive and sensitive work environment. 1. Provide supervisors with resources to help build an enjoyable workplace for all employees (i.e., information on keeping employees motivated, suggestions for no cost to low cost recognition programs, etc.). 2. Provide supervisors with resources for appropriately welcoming, educating, providing feedback, and supporting employees during their introductory period. 3. Evaluate reasons why employees leave and make necessary adjustments to address areas of concern expressed during the employee's exit interview. 4. Educate employees regarding their responsibility for building and maintaining an inclusive and sensitive work environment (i.e., problem- solving policy, harassment prevention, etc.). 5. Continue to educate employees on benefits available to them to promote personal and professional growth (i.e., tuition reimbursement, employee assistance program, retirement benefits, health insurance, etc.). 6. Continue to devise a competitive and fiscally responsible compensation program and reward employees for their accomplishments and contributions to the City. 7. Continue to provide employees a process to file and resolve employment-related complaints, including but not limited to, harassment, discrimination and unfair employment practices, through the Human Resources department and ensure employees are educated on this process. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 17 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Retention: Devise and employ strategies to retain a highly motivated, productive, and diverse workforce. Goal: Develop and maintain an inclusive and sensitive work environment. 8. Regularly review employment-related processes, procedures, and policies to ensure they are non-discriminatory. 9. Identify and implement ways to create a work environment in which employees feel comfortable providing opinions and suggestions and feel empowered to make decisions and take calculated risks. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 18 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Training and Devise and employ aggressive strategies to promote Development: development and career advancement for all employees. Goal: To develop employees who are highly competitive and well- rounded. 1. Send employees to training and development programs and set training goals specific to each department position and/or job family. 2. Create a clear career path for all department positions identifying logical advancement and competencies needed to advance to the next level. 3. Send employees and encourage participation in diversity awareness, sensitivity, customer service, interpersonal and communications skills training. 4. Educate employees and encourage the use of tuition reimbursement for professional development. 5. Create cross-training and mentoring opportunities for all employees within each department to enhance career development and advancement opportunities for the City workforce. 6. Send employees to career advancement training so that employees may gain the skills necessary for promotional opportunities. 7. Utilize developmental tracking policy when possible. 8. Continue to train and provide assistance to supervisors so they can conduct an effective performance evaluation and provide timely and meaningful feedback to ensure professional development of all employees. 9. Encourage the use of a 360-degree feedback evaluation method as an employee development tool. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 19 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Training and Devise and employ aggressive strategies to promote Development: development and career advancement for all employees. Goal: To develop employees who are highly competitive and well- rounded. 10. Continue to publish a "Training Resource Guide" that: a. Identifies and summarizes the training workshops offered each fiscal year so employees can better plan and coordinate their training needs, and b. Provides a listing of training and development resources available to employees for checkout through the Human Resources department. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 20 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Communication: Devise and employ strategies to increase understanding and improve relationships between people of differem races, genders, ages, and disabilities. Provide and receive input from employees and stakeholders regarding the City of Demon's diversity efforts. Goal: To improve communication and increase positive interactions internally and externally. 1. Increase communication within each department and inform employees about events and issues that affect the entire organization. 2. Accept and promptly investigate all internal and external complaints regarding diversity and sensitivity issues. 3. Translate information as needed, including but not limited to: · Brochures · Posters and banners · Point of service contacts · Forms 4. Distribute a list of bilingual employees to the organization at least once a year so all employees will know who to call in the event they need translation assistance. 5. Implemem a bilingual pay policy and incemive program if funding is available. 6. Periodically provide conversational Spanish classes as part of the City's training program and encourage employees to attend. 7. Respond to all requests for information within a reasonable time period. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 21 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Communication: Devise and employ strategies to increase understanding and improve relationships between people of differem races, genders, ages, and disabilities. Provide and receive input from employees and stakeholders regarding the City of DeMon's diversity efforts. Goal: To improve communication and increase positive interactions internally and externally. 8. Periodically provide presentations to civic organizations to educate and gain input on the City's diversity efforts. 9. Provide public access to the City's workforce diversity plan through the City of DeNon website, library, etc. 10. Cominue to sponsor a myriad of festivals and celebrations such as Cinco de Mayo, Juneteenth, Martin Luther King, Jr. celebration, Special Olympics, etc. 11. Encourage the workforce to celebrate the diversity of the community and volumarily participate in community service-based organizations and projects. 12. Emphasize diversity as part of the employee evaluation process. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 22 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Organizational Taskforces and Committees: Devise and employ aggressive strategies that will maintain and create where necessary diversity within employee-related activities, task forces, and committees. Goal: To improve or maintain employee-related activity, task force, and committee representation at levels that reflect the demographics of the community. 1. When forming employee-related task forces or committees, endeavor to include representatives from all ethnic and economic groups to ensure that the representation level reflects the demographics of the community. 2. Implement strategies to educate employees concerning membership responsibility in employee-related task forces and committees to encourage participation. 3. Ensure staggered rotation of departmental and employee representatives on City committees. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 23 City of Denton Workforce Diversity Plan 2002-2003 to 2006-2007 Individual Department/Division Strategies Please note that not all departments and divisions will have strategies that are separate from the organizational strategies. Inclusion in this section depends on the services provided by each division. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 24 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 City Attorney's Office Legal Philosophy: Devise and employ aggressive strategies that will exemplify the City Attorney's office's recognition that the great strength of the American system of democracy has always come from diversity. Goal: To improve or maintain the City Attorney's office involvement in community measures which encourage cultural awareness and sensitivity through education and participation. 1. To the extent allowed by the Canons of Ethics, encourage Assistant City Attorneys to give pro bono legal advice to non-profit educational and cultural organizations not in a conflict of interest with the City, which promote ethnic and cultural awareness and sensitivity and allow discretionary time to be used for such advice. 2. Provide City Council with an annual report of pro bono legal hours expended by Assistant City Attorneys on projects of non-profit cultural organizations, which reflect the demographics of the community. 3. Encourage members of the Legal staff to become familiar with the history and traditions of various ethnic groups and different cultures representative of the community. 4. Encourage staff members to learn another language, such as Spanish, to improve understanding of other cultures. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 25 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 City Manager's Office Retention: Devise and employ strategies to maintain a highly motivated, productive, and diverse workforce. Goal: To increase opportunities for employees to increase diversity knowledge and participation. 1. Allow for the rotation of current employees to other departments and divisions with different compositions to allow for diverse learning experiences. 2. Support and encourage the membership and involvement of current employees with professional organizations and associations that promote diversity. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 26 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 City Manager's Office Taskforces and Committees: Devise and employ aggressive strategies that will maintain and create where necessary diversity within employee-related activities, task forces, and committees. Goal: To represent levels that reflects the demographics of the community. 1. When forming an employee-related task force or committee, endeavor to include representatives from all ethnic, gender, age, seniority, and economic groups to more accurately gain representation levels that reflect the demographics of the community. 2. When funding is available, seek intern, volunteer, or student employment opportunities that promote and encourage more diversity within the work environment. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 27 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 City Manager's Office Celebration of Diversity in the Community: Devise and employ strategies that encourage the work force to celebrate the diversity of the community. Goal: To improve the awareness of the diversity of the community. 1. Ensure the City Manager's Office staff has the opportunity to participate in all diversity training and awareness activities. 2. Ensure departmental representation opportunities on in-house and community celebration planning committees. 3. Ensure the opportunity for participation and/or representation in diverse community organizations. 4. Ensure the opportunity for celebration in diverse community events. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 28 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Police Police Devise employee strategies to attract, hire, and retain protected Recruitment: class individuals in the Police Department. Goal: To increase the diversity of the sworn workforce through effective recruitment, employment, and retention initiatives. 1. Identify and participate in recruiting opportunities that target qualified protected class individuals. 2. Design and implement creative recruiting initiatives beyond traditional career fair attendance. 3. Identify, train, and utilize protected class employees as recruiters in both traditional and non-traditional recruiting activities. 4. Mentor qualified civilian employees for sworn positions and protected class sworn personnel for promotional opportunities. 5. Consider diversity in transfer and promotional decisions involving equally qualified candidates. 6. Provide in-service training opportunities and encourage use of tuition reimbursement for professional development. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 29 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Police Community Partnerships: Devise strategies designed to build, improve, and sustain effective and cooperative partnerships between citizens and the Police Department. Goal: To increase employee understanding of issues related to diversity within the community and to increase opportunities for community participation in the prioritization of law enforcement activities. 1. Provide civil rights, racial sensitivity, and cultural diversity training to all sworn personnel every two years. 2. Provide diversity awareness, sensitivity, customer service, and communications training to all employees. 3. Accept and investigate all internal and external complaints related to diversity, racial profiling, and sensitivity issues. 4. Reinforce appropriate behavior of employees through training on Department and City policies, positive recognition, and negative discipline. 5. Emphasize diversity in Department activities such as the Citizen's Police Academy and the Training Academy Advisory Board. 6. Provide the opportunity for all citizens to participate in the consultation, adaptation, and mobilization phases of Community Policing. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 30 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Public Information Office Communication: Devise and employ strategies to increase understanding and improve relations between people of different races, genders, ages, and disabilities. Goal: 1) To expand educational outreach to the Hispanic community; 2) To increase DTV (Channel 26) viewers and viewer diversity; 3) To increase quality and versatility of publication material. 1. Produce more Spanish-speaking video public service announcements. 2. Cominue to expand DTV Spanish programming blocks. 3. Expand Spanish section to City of Denton website with the ultimate goal of establishing a complete Spanish version of the City's website by FY 2005/2006. 4. Expand communication plans to focus on targeting to our growing Hispanic population. 5. Expand DTV City Beat and Demon Magazine to include a Spanish version. 6. Expand workforce to include an official in-house Spanish translator when Denton Hispanic population reaches 25%. 7. Establish a listing for DTV in the Demon Record Chronicle TV Guide and the Charter digital cable on-screen menus. 8. Utilize PlO survey to determine future programming. 9. Market DTV to the Spanish population and to cable subscribers. 10. Incorporate 50% or more of print material into multi-media CD-ROM format or other electronic format. 11. Incorporate DTV programming into CD-ROM version of the annual report. 12. Produce all important/vital publications in Spanish. 13. Produce at least 50% of PIO publications in Spanish by FY 2004/2005. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 31 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Reprographics Training and Devise and employ strategies to promote development and Development: career advancement of employees Goal: To develop employees who are highly competitive and well- rounded. 1. Improve or maintain workforce diversity by targeting under-represented groups who are equally qualified (taking into consideration age, gender, race and disability). 2. Ensure that supervisors are trained in employee selection/placement and attend diversity workshops. 3. Ensure employee participation in STEP academy and other city training. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 32 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Reprographics Communication: Devise and employ strategies that provide information to people of different races, genders, ages, and disabilities. Goal: To improve communication and increase positive interactions internally and externally. 1. Ensure that all primed materials produced by Reprographics comply with the Publications policy (ADA/EOE/ADEA). 2. Provide primed materials in Spanish as requested. 3. Evaluate Spanish translation software for print and website. 4. Continue to ensure the city website is ADA compliant. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 33 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Purchasing Division Business Enterprise: Devise and employ strategies to include small, women, and minority owned businesses in the City's purchasing/bid process. Goal: To increase participation of small, women, and minority owned businesses in the City's purchasing and bid process. 1. Regularly attend and participate at the monthly meetings sponsored by North Central Texas College Small Business Development Center. 2. Provide direct FAX of "Notice to Bidder's" for supply, service or construction projects to African-American and Hispanic Chamber of Commerce. 3. Hold informal discussion sessions with leadership representatives of the African-American and Hispanic Chamber of Commerce. 4. Develop and maintain a "Welcome Prospective Supplies/Contractor Brochure." 3. Assign a specific individual to assist in bid document completion while maintaining the confidentiality of the bid process. 4. Continue to encourage small and minority participation in all legal notices of projects for bid. 5. Maintain the Purchasing Office as a central office/location to disseminate bid information and other pertinent information for any interested minority vendors. 6. Support compliance with legislature concerning Historically Underutilized Business (H.U.B.) as per Texas Local Government Code Chapter 252. 7. List the tracking of minority, women owned, HUB and disadvantaged business enterprise as a criteria in our evaluation of a new financial software system for the Purchasing function. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 34 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Economic Development Business Enterprise: Devise and employ strategies to promote the success of small, women, and minority owned businesses in the City of Demon. Goal: To increase opportunities for small, women, and minority owned businesses to succeed. 1. Regularly attend and participate at the monthly meetings sponsored by North Central Texas College of Small Business Development Center. 2. Regularly attend and participate in meetings and activities with minority chambers and imemational business programs. 3. Actively promote regional programs that create opportunities for small, women, and minority owned businesses in imemational trade. 4. Provide micro-loans to small business owners to encourage job creation for low to moderate income citizens. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 35 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Fire Department Fire Devise employee strategies to attract and hire protected class Recruitment: individuals in the Fire Department. Goal: To work closely with the City's Human Resources Department for assistance and guidance in the recruitment and hiring process. 1. Continue and expand Fire Explorer Program. 2. Continue to pursue non-civil service job assignments in Department in support services. 3. Make every effort to talk to local community groups to minority participation in Fire Recruit tests. a) b) c) the Fire encourage Action 1: Actively solicit response from African American and Latino fraternities and sororities at surrounding universities, especially UNT and TWU. Action 2: Talk to local minority Chambers of Commerce as well as service clubs with large numbers of minority members. Action 3: Join and actively participate in Black Chamber of Commerce and Hispanic Chamber of Commerce. d) Action 4: Talk to local minority churches and church groups. Reconvene the Fire Department's Citizen Diversity Task Force November 2002. a) b) in Action 1: Meet after the October 2002 Civil Service test to review results. Action 2: Develop strategy for April 2003 Civil Service test since the DFD will be hiring at least 15 new Firefighter Recruits. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 36 CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Fire Department Fire Devise employee strategies to attract and hire protected class Recruitment: individuals in the Fire Department. Goal: To work closely with the City's Human Resources Department for assistance and guidance in the recruitment and hiring process. 5. Develop a Denton Fire Department recruitment video in FY 2002/2003. 6. Revise the Denton Fire Department informational brochure to be used for marketing and recruitment. 7. Use members of the Fire Department's Diversity Citizen Task Force in recruiting efforts. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 37 City of Denton Workforce Diversity Plan 2002-2003 to 2006-2007 Workforce Analysis 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 38 Workforce Analysis City of Denton vs. Denton County Residents 18 Years and Older 2000 Census BLaCk Hispanic Asian White Other MO~e 40~ Fema!e Ma!~ ~flfllan Race Races ~ ~i~ i~ i2~ i o x 5~6~o : 0~9 ~o 77~6 ~o 0~:~o 00~0 ~o City of Denton * 2000 Census - Denton County residents who are 18 years and over. Source: U.S. Census Bureau, Census 2000 ** Employee Data as of: June 22, 2004 ^ Data Not Available ^^ Data Not Tracked 1/4/2005 2004 Workforce Diversity Statistics - Workforce Comparison 39 City of Denton Workforce Summary Job Family Analysis Excluding Seasonal, Special Agreement and Temporary All Departments Employee Data as of: June 22, 2004 ~ ~iiv~ 0 0 30 o i o o ~o ~ffi~e/~i~ri~i ii i8 0 93 S3 ~ ~fe~i~i 8 i4 i 6 98 0 6i ~0 5~ 9 33 8 07 ~3 ~ ~g~fe~! 0 0 0 0 0 0 0 0 0 0 White 81.4% Race Other Black 0.3% 5.7% Under 40 52.2% Hispanic American 10.3% Indian 1.1% Asian 1.2% Gender Male Female 70.3% 29.7% Age 40 + 47.8% 1/4/2005 2004 Workforce Diversity Statistics - Job Family Excluding Seasonal 40 City of Denton Workforce Summary Job Family Analysis Including Seasonal, Special Agreement and Temporary All Departments Employee Data as of: June 22, 2004 o o 3o s i8 0 93 i08 33 3 8 0 07 ii06 138 i5 i6 ii88 7 589 88i 537 933 '~% 9:~% ~0% i~i% 80~8o~ 0:5o/o % 599~ 365% 635% 80.8% Race Other Black Hispanic American 0.5% 7.2% 9.4% Indian 1.0% Asian 1.1% Gender Under 40 59.9% Age Female Male 36.5% 63.5% 40 + 40.1% 41 1/4/2005 2004 Workforce Diversity Statistics - Job Family Including Seasonal City of Denton Workforce Analysis Seasonal, Special Agreement and Temporary Positions Employee Data as off June 22, 2004 indian 30 n ~oo 5~ 5o/o rVl~ ii ] 8 i 0 ] ii~ 0 20 ~16 i36 4050/o White 78.9% Race Other Black 1.2% 12.2% Age Hispanic 6.2% Under 40 86.0% American Indian 0.9% Asian 0.6% Gender Male Female 40.5% 59.5% 40 + 14.0% 42 1/4/2005 2004 Workforce Diversity Statistics - Seasonal City of Denton Workforce Analysis City Manager's Office* Mike Conduff, City Manager Employee Data as of: June 22, 2004 * Includes City Manager's Office, Internal Audit, Cable TV, Public Information Office, Reprographics, and Economic Development. White Race Asian 67.6% 0.0% American Other Black 0.0% Indian Hispanic 16.2% 0.0% 16.2% 40 + 48.6% Male 21.6% Gender Age Female 78.4% Under 40 51.4% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - City Manager's Office 43 City of Denton Workforce Analysis Economic Development* Linda Ratliff, Director Employee Data as off June 22, 2004 o o i o o o o o i o o To~a! 3 0 0 10 i 0 8 6 100i0% Percent 0;0~ 0i0:~ 7L5Vo 0i0Fo t2i9 I00i0Yo 55555555555: * Includes Community Services, Main Street, and Economic Development. White 71.5% Race American Indian Other Asian 0.0% 0.0% 0.0% Black '.1% Hispanic 21.4% Age Under 40 40 + 42.9% 57.1% Gender Male Female 7.1% 92.9% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Economic Development 44 City of Denton Workforce Analysis Municipal Judge's Office Robin Ramsay, Municipal Judge Employee Data as off June 22, 2004 i i Black Hispanic Asian White Other 40 2 Total lFemMe i 0 0 0 0 i 0 0 S0.0% iM~ l o o o o i o o so.oo/o '~ota~ I o I o I o I ol ~lol ~ I o 'ee~n* I 0.0% I 0.0% 0.0% I 0.0% l~O0.O°/ol 0.0% I ~00.0% I 0.0% Race Other American Hispanic 0% Indian 0% O% Asian O% Black O% White 100% Age 40 + 100.0% Gender Male Female 50.0% 50.0% Under 40 0.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Judge's Office 45 City of Denton Workforce Analysis City Attorney's Office Herb Prouty, City Attorney Employee Data as off June 22, 2004 ~ Other Race Black White 0.0% 0.0% Hispanic 90.0% 0.0% American Asian Indian 10.0% 0.0% · Age Under 40 30.0% 40 + 70.0% Gender Male Female 40.0% 60.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - City Attorney's Office 46 City of Denton Workforce Analysis Public Safety and Transportation* Jori Fortune, Assistant City Manager Employee Data as off June 22, 2004 * Includes Airport and Transit Operations, Police, Fire, Engineering, Planning and Development, and Facilities Management. 89.0% Race Other Black 0.2% 4.5% Hispanic American 4.9% Indian 0.9% Asian 0.5% · Under 40 56.3% Gender Male Female 79.1% 2O.9% Age 40 + 43.7% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - ACM-Pub Safety & Trans 47 City of Denton Workforce Analysis Airport and Transit Operations* Mark Nelson, Director Employee Data as off June 22, 2004 o o o i o o o i o o o ioo% Mille 0 0 0 i 0 ] i 5 i i000o/o ~fal I 0 I 0 [ 0 I 0 I n I ! I ~ [ ~ s Ii000°/o ¢ ~¢ I o,o ~ I o,o I o,o I o~o ~ 18o,o ~ I o,o~12o~o ~ I so~o ~ ~ r Ht o o o o ~ o o o ~ o ~/////////////////////////~ * Includes the Denton Municipal Airport and the Public Transportation Services. Race White Black 80.0% 0.0% Other Hispanic Asian American 20.0% 0.0% Indian 0.0% 0.0% Age Under 40 80.0% 40 + 20.0% Gender Female 0.0% Male 100.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Airport & Transit Oper. 48 City of Denton Workforce Analysis Police* Charles Wiley, Police Chief Employee Data as off June 22, 2004 * Includes Civil Service and Non-Civil Service employees. Also includes Animal Control, Code Enforcement, and the ACM of Public Safety and Transportation. Asian 0.0% White Race 84.7% American Hispanic Black Indian 6.3% 7.4% 1.6% Other 0.0% Under 40 Age 60.5% 40 + 39.5% Gender Male 76.8% Female 23.2% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Police 49 City of Denton Workforce Analysis Fire* Ross Chadwick, Fire Chief Employee Data as off June 22, 2004 o o o ~s ~oi~% o i o o ss 8~i8O/o Total 1 3 1 0 142 0 58 89 14~ 100;0% 'eeeeent 0i7% 2:0% 0~0% 96:6% 0~0% 395% 605% I000% ~5~ * Includes Civil Service and Non-Civil Service employees. Race American Hispanic Indian Black 2.0% 0.7% 0.7% Asian 0.0% White 96.6% Other 0.0% Male 89.8% 40 + 39.5% Gender Age Female 10.2% Under 40 6O.5% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Fire 50 City of Denton Workforce Analysis Engineering Charles Fiedler, Director Employee Data as off June 22, 2004 o i o o 8 o 0 0 0 Total 3 0 0 35 0 28 12 40 1000% White 87.5% Race Other 0.0% Black 5.0% American Hispanic Indian Asian 7.5% 0.0% 0.0% 40 + 70.0% Age Under 40 30.0% Gender Male 77.5% Female 22.5% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Engineering 51 City of Denton Workforce Analysis Planning & Development* Kelly Carpenter, Director Employee Data as off June 22, 2004 * Includes Planning, Building Inspections, and Consumer Health. Race American Indian Other Black Hispanic 0.0% White 0.0% 6.9% 6.9% Asian 79.3% 6.9% 40 + 44.8% Gender Male Female 37.9% 62.1% Age Under 40 55.2% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Planning & Development 52 City of Denton Workforce Analysis Facilities Management Bruce Henington, Director Employee Data as off June 22, 2004 i iiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Female 0 i 0 0 0 0 0~0~ MhI~ 0 0 0 ii 0 3 i2 80i0~ · o~aI 0 ] 1 0 0 14 0 II 15 100i0% Percent 0,0~ 6,7'/0 0,0~ 0,0~ 93,3'/0 White 93.3% Race Other Black Hispanic American 0.0% 0.0% 6.7% Indian 0.0% Asian 0.0% Male 80.0% 40 + 73.3% Gender Female 20.0% Age Under 40 26.7% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Facilities Mgmt 53 City of Denton Workforce Analysis Fiscal and Municipal Services* Kathy DuBose, Assistant City Manager Employee Data as off June 22, 2004 * Includes Finance Administration, Fiscal Operations, Management and Budget, Library Services, Human Resources, and Technology Services. White 78.7% Race Other Black Hispanic 0.0% 4.9% 12.2% American Indian 1.2% Asian 3.0% 4O 55.5% Age Gender Male Female 39.6% 60.4% Under 40 44.5% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - ACM-Fiscal Mgmt & Mun Srvcs 54 City of Denton Workforce Analysis Finance Administration Kathy DuBose, Assistant City Manager Employee Data as off June 22, 2004 Female 1 0 0 [ 0 1 0 [ 2 0 2 100.0% Male 0 0 0 lO 0 0 i 0 0 0 0.0% Total 0 0 i 0 0 0 2 100.0% Percent 5O,O~ O,O~ O,0 Race American Other Indian Hispanic 0.0% 0.0% 0.0% White Black 5O.O% 5O.O% Asian 0.0% 40 + 100.0% Gender Male Female 0.0% 100.0% Age Under 40 0.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Finance Administration 55 City of Denton Workforce Analysis Fiscal Operations* Diana Ortiz, Director Employee Data as off June 22, 2004 * Includes Treasury, Municipal Court, Tax, Risk Management, and Fleet Services. White 78.5% Race Other Black 0.0% 2.4% Hispanic 16.7% American Indian 2.4% Asian 0.0% 40 + 45.2% Age Under 40 54.8% Gender Female 52.4% Male 47.6% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Fiscal Oper. 56 City of Denton Workforce Analysis Management & Budget* Anna Mosqueda Employee Data as off June 22, 2004 0 0 ti 0 TOtal 1 7 1 3 24 0 2~ 9 36 100;0% ///////////// Percent * Includes Accounting, Budget, and Materials Management. Race Other Black 0.0% 2.8% White Asian 66.7% 8.3% Hispanic 19.4% American Indian 2.8% 40 ~ 75.0% Gender Male Female 41.7% 58.3% Age Under 40 25.O% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Fiscal Mgmt & Budget 57 City of Denton Workforce Analysis Library Services* Eva Poole, Director Employee Data as off June 22, 2004 * Includes Library Administration, Circulation, Technical Services, Adult Services, Children's Services, and Branch Libraries. Asian 0.0% White 82.2% Race American Indian Hispanic Black 0.0% 8.9% 8.9% Other 0.0% 40 + 57.8% Gender Age Under 40 42.2% Male Female 26.7% 73.3% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Library Srvcs 58 City of Denton Workforce Analysis Human Resources Carla Romine, Director Employee Data as off June 22, 2004 o o o o ~i~O/o lo o o o o o i ~% T0tal il 1 0 0 13 0 I0 ls 100;0% P999999999999'5 Percent 6,7~ 6,7~ 0,0Yo 0,0~ 86,6~ 0,0~ ~00~0~//////////~, White 86.6% Race American Other Indian 0.0% 0.0% Black 6.7% Hispanic Asian 6.7% 0.0% Under 40 66.7% Age 40 + 33.3% Gender Male 6.7% Female 93.3% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - H R 59 City of Denton Workforce Analysis Technology Services Alex Pettit, Director Employee Data as off June 22, 2004 o o o Total 0 [ 0 2 21 0 12 [ I2 [ 100i0% Percent 0,0Yo Other 0.0% Race Hispanic American Black 4.2% Asian Indian 0.0% 8.3% 0.0% White 87.5% 40 + 50.0% Gender Female 29.2% Age Under 40 50.0% Male 7O.8% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Technology Srvcs 60 City of Denton Workforce Analysis Utilities* Howard Martin, Assistant City Manager Employee Data as off June 22, 2004 88 Total [ 32 70 6 [ 6 379 2 [ 238 495 100i0% P999999999999 Percent 6,5~ I4,I~ 1,2Vo t,2~ 76,6~ * Includes Water, Wastewater, Solid Waste, Streets, Traffic Control, Drainage, Electric, Customer Service, and Parks and Recreaton. Race Other Black 0.4% 6.5% Hispanic 14.1% American Indian 1.2% Asian 1.2% 76.6% 40 48.1% Gender Male 77.2% Age Female 22.8% Under 40 51.9% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - ACM-Utilities 61 City of Denton Workforce Analysis Water and Wastewater Utilities* Jim Coulter, Director Employee Data as off June 22, 2004 i ~ 20 0 ~s ~si5O/o i i0 2 ~08 0 8~:5% Total [ 11 16 3 3 128 0 85 76 161 100;0% Percent 6,8~ 9,9~ 1,9~o 1,9~ ~9~5~ ~~. * Includes Water Administration, Water Distribution, Water Meter & Repair, Wastewater Collection, Drainage, Street and Traffic Control, Industrial Pre-Treatment, Water Lab, Wastewater Lab, Bio-Solids, Wastewater Treatment, and Wastewater Administration Race Other Black Hispanic White 0.0% 6.8% 9.9% American Indian 79.5% 1.9% Asian 1.9% 40 + 52.8% Gender Male Female 84.5% 15.5% Age Under 40 47.2% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Water & Wastewater Utilities 62 City of Denton Workforce Analysis Solid Waste* Vance Kemler, Director Employee Data as off June 22, 2004 Female 0 i 0 0 8~8~ Total 3 21 [ 2 1 53 0 44 36 80 1000% ////////////// * Includes Solid Waste Administration, Residential, Commercial, Recycling, and Landfill. White 66.2% Race Other 0.0% Asian Black 1.3% American Hispanic 3.7% Indian 26.3% 2.5% 40 + 55.0% Gender Male 91.2% Age Female 8.8% Under 40 45.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Solid Waste 63 City of Denton Workforce Analysis Electric Utilities* Sharon Mays, Director Employee Data as off June 22, 2004 * Includes Electric Administration, Utilities Dispatch, Electric Distribution, Electric Substations, Electric Metering, Fiber GIS, Electric Communications, and Electric Marketing. Race American Other Black Hispanic Indian 0.0% White 0.0% 2.8% 6.5% Asian 88.8% 1.9% 40 + 52.3% Gender Male 81.3% Age Female 18.7% Under 40 47.7% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Electric 64 City of Denton Workforce Analysis Customer Service Employee Data as off June 22, 2004 0 0 0 8~iso/o 0 0 0 Total 8 6 0 0 26 [ 1 I2 29 41 100;0% Percent t9i5Yo 0i0~ 63;4Yo 2i5~o Yo ~00~0~ Race Asian White 0.0% 63.4% Hispanic Other 14.6% Black 2.5% 19.5% Under 40 70.7% Age 40 + 29.3% Gender Male Female 12.2% 87.8% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Customer Service 65 City of Denton Workforce Analysis Parks & Recreation* Janet Simpson, Director Employee Data as off June 22, 2004 0 0 0 ~0 0O/o i5 0 0 35 ~8 38 ~o0% P r nt o 2 12 o I ~2° o o I o ~/~/~/~/~:~:~:~:~:~:~:~:~ * Includes Parks Administration, Recreation, Parks Maintenance, and Keep Denton Beautiful. Race White Other Black 70.1% 1.2% 7.5% Hispanic 20.0% American Asian Indian 0.0% 1.2% Age Under 40 63.7% 40 + 36.3% Gender Male 7O.O% Female 30.0% Data does not include special agreement, seasonal, and/or temporary employees. 1/4/2005 2004 Workforce Diversity Statistics - Parks and Recreation 66 CITY OF DENTON POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: HUMAN RESOURCES REFERENCE NUMBER: 100.01 SUBJECT: EQUAL EMPLOYMENT OPPORTUNITY iNITIAL EFFECTIVE DATE: 07-04-92 TITLE: EQUAL EMPLOYMENT OPPORTUNITY LAST REVISION DATE: POLICY STATEMENT: It is the policy of the City of DeNon to afford equal opportunity in employmem to all individuals regardless of race, color, religion, gender, age, disability status, national origin, or other protected classification. Therefore, the City is committed to the following principles of Equal Employmem Opportunity law which are designed to achieve a diversified work force: 1. To recruit, hire and promote all job classifications without regard to race, color, religion, gender, age, disability status, national origin or other protected classification. 2. To base decisions of employmem so as to further the principles of equal employmem opportunity and work force diversity. To ensure that in-house advancemem decisions are made in accordance with the principles of equal employmem opportunity by imposing only valid requiremems for in-house advancement opportunities. To ensure that all personnel actions, including but not limited to compensation, benefits, transfers, layoffs, return from layoff, training, education through tuition reimbursemem, will be administered without regard to race, color, religion, gender, age, disability status, national origin, or other protected classification. To ensure that all facilities of the City of DeNon are available to employees on a non- discriminatory basis; and that all social and recreation programs sponsored for employees be open to participation without regard to race, color, religion, gender, age, disability status, national origin, or other protected classification. 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 67 CITY OF DENTON POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: HUMAN RESOURCES REFERENCE NUMBER: 100.02 SUBJECT: EQUAL EMPLOYMENT OPPORTUNITY iNITIAL EFFECTIVE DATE: 07/07/92 TITLE: AMERICANS WITH DISABILITIES ACT LAST REVISION DATE: (ADA) POLICY STATEMENT: It is the policy of the City of Demon to provide equal access to all City sponsored services, programs, and activities for citizens and employees with disabilities, as provided by the "Americans with Disabilities Act" of 1990, 42 U.S.C. § 12101, et seq., as the same may be amended from time to time (the ADA). The City will not discriminate against a "qualified individual with a disability," as this term is defined by the ADA, with regard to job applications, hiring, advancement, discharge, compensation, training and other terms, conditions and privileges of employmem. The City will make reasonable modifications and accommodations in policies, practices, and procedures to ensure equal access; will provide auxiliary aids and services when necessary to provide effective communication, and will operate its programs so that, when viewed as a whole, those programs are readily accessible to, and useable by, individuals with disabilities. ADMINISTRATIVE PROCEDURES: The City Manager shall appoim members to the "City ADA Committee" to: ensure policy training and implementation, assist in making reasonable accommodation decisions where the accommodation will not result in a hardship to the City, provide a forum for reviewing grievances, and act as a source of information on ADA for the employees of the City of Demon. Membership of the City ADA Committee shall be as follows: the Risk Manager, one represemative from the Human Resources Department, from the Fire Department, from the Engineering Department, from the Parks and Recreation Department, from the Planning Department, from the Police Department, and two representatives from the Utilities Departmem. In making recommendations, the Committee shall use due diligence to obtain input or advice from not less than one community member who has a disability. 1/5/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 68 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) TITLE: AMERICANS WITH DISABILITIES ACT (ADA) REFERENCE NUMBER: 100.02 ii. III. iV. The City Manager shall appoint an ADA Coordinator who will serve as the ADA Committee Chairperson. Questions concerning general ADA policy, reasonable accommodations, and grievances by citizens or employees not resolved by Department shall be directed to the ADA Coordinator for resolution. The ADA Coordinator shall convene the ADA Committee, as required, to resolve issues or make recommendations to Departments, the City Manager or the City Council, as appropriate. In order to be qualified for a City position, an applicant must have the skills, experience and knowledge as reflected by the essential functions of the position with or without reasonable accommodation, inquiries regarding pre-employment or employment procedures, interviews, and hiring shall be directed to the Human Resources Department for resolution. Supervisor training will be conducted by the Human Resources Department as required to educate the supervisors of the requirements of Title i of the ADA. The Building Inspections Division will, prior to issuing a building permit, advise applicants of the need to comply with the requirements of Title iii of the Americans With Disabilities Act. All supervisors are responsible for continually monitoring and evaluating current policies, procedures, facilities and programs to achieve and maintain compliance with this policy. 1/5/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 69 Recruitment Mailing List: CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Recruitment Efforts Educational Institutions The following institutions are sen City of DeNon position opportunity lists on a weekly basis: ATI Job PlacemeN Technical/Paraprofessional Billy Ryan High School High School Graduates Demon High School High School Graduates Brookhaven College Technical/Paraprofessional Cedar Valley College All Denton Independent School District All DISD Graduate Job Placement All Eastfield College Minority East Texas State University Minority Education America All E1-CeNro College Minority Hutson-Tillotson College Minority Jarvis Christian College Minority Mountain View College All National Education CeNer All 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 70 North Cemral Texas College All North Texas Education/Training Coop All Paul Quinn College Minority Richland College All Southern Methodist University All St. Phillip's College Minority Texas State Technical College Technical Texas Woman's University All University of Houston - University Park All University of Texas at Arlington All University of North Texas All University of Texas - Pan American All Churches The following churches are sero City of Demon position opportunity announcemems on a weekly basis: Catholic Charities Diocese of Ft. Worth All Emmanual Baptist Church Minority Morse Street Baptist Church Minority Mt. Calvary Baptist Church Minority Mt. Pilgrim Baptist Church Minority 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 71 Potters House Church All Simmons Street Church of Christ Minority St. Andrew Church of God In Christ Minority St. Andrew Presbyterian Church All Media Each organization is sero City of Demon position opportunity announcemems on a weekly basis: wwvwv, cityo fdenton.com All Demon Record-Chronicle All Local Governmem Access (Cable 26) All Hispanic Yellow Pages Minority Municipalities Each municipality is sero City of Demon position opportunity announcemems on a weekly basis: City of Arlington All City of Carrollton All City of Dallas All City of Demon (approx. 26 departmems) All 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 72 City of Farmers Branch All City of Flower Mound All City of Fort Worth All City of Garland All City of Grand Prairie All City of Hurst All City of Irving All City of Lewisville All City of Plano All City of Richardson All Other Organizations Each organization is sero City of Demon position opportunity announcemems on a weekly basis: Achievements TEC All Continental Credit Corporation All Dallas Housing Authority All Denton County MHMR All Denton Housing Authority Minority Denton State School All Friends of the Family All 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 73 Goodwill Industries of Denton, inc All ingleside Family Service Center Minority Interfaith Ministries Minority irving Cares All LULAC Minority Naval Reserve Recruiting All Positive Outcomes All Texas Department of Human Services Minority Texas Dept. of Health All Texas Legal Services Minority Texas Rehabilitation Commission All Texas Workforce Commission All Triangle Temporaries All United Way of Denton All Veteran Department All West Texas Legal Services All __~_e_partment Retluested Advertising in addition to the 79 sources previously listed, additional advertising is available at the request of the department. Some sources used in the past include: American Society of Civil Engineers Engineers 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 74 Affirmative Action Register Minority wwwv.ala.or Librarian-Professional American City & County Executive/Professional wwwv.blackvoices.com Minorities wwwv.careerbuilder.com wwwv.govjob.net All wwwv.careerweb.com All CE News Civil Engineering Dallas Examiner Minority Police/Fire Dallas Morning News All DFW Community News Professional Employment Guide All Employment Today Maintenance/Clerical Fort Worth Star Telegram Professional Gov't Finance Officers Assoc. of US & Professional Canada Gov't Finance Officers Assoc. of Texas Finance-Professional (GFOA) All wwwv.hotjobs.com All International City Management Association Professional/Executive (ICMA) City Government IPMA Executive/Professional International Right-of-Way Association Engineering/Transportation Jobs & Careers Magazine All 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 75 www.joblatino.com Minority www.publicsectoriobs.com www.iobsin~overnmem.com All Latino Momhly Minority/Professional Minority Job Bank Minorities Public Power Weekly Utilities - Professional Public Works Classified Utilities - Professional All www.techies.com Technology - Professional Texas City Managers' Association (TCMA) Executive/Professional Texas Lawyer Legal-Professional Texas Society of Certified Public Accoumams Professional Texas Municipal League (TML) Executive/Professional The Dallas Observer Executive/Professional The Town & Country Magazine Executive/Professional TWU-Advertising Professional UNT-Advertising Professional 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 76 Recruitment Trips Attended Since Fiscal Year 1998/99: A representative from Police, Fire, and/or Human Resources participated in the following recruiting and career fairs at some point since fiscal year 1998/99. Each year these departments analyze the success of each event to determine where to go the following year. Arts and Jazz Festival Denton, TX Austin EMS Conference Austin, TX Baylor University's Career Fair Waco, TX Central Texas College Killeen, TX Cinco de Mayo* Denton, TX Dallas Independent School District Job Fair Dallas, TX Denton/Ryan High Career Night Denton, TX Ft. Worth Independent School District Job Fair Fort Worth, TX Fuego y Alma Celebration* Denton, TX Golden Triangle Mall Denton, TX Greater Denton Career & Business Fair Denton, TX Juneteenth Celebration* Denton, TX Louisiana Tech University* Ruston, LA MAC3 Job Fair Arlington, TX Mayor's Committee on Person with Disabilities* Fort Worth, TX McMurray State University Abilene, TX McNeese State University* Lake Charles, LA National Forum for Black Public Administrators* Austin, TX NCOA Military Job Fair* Tyler, TX Northeast Louisiana State University* Monroe, LA Northwestern State University* Natachitoches, LA 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 77 Red River Career Expo Lawton, TX SACUPA* San Antonio, TX Sam Houston State University Huntsville, TX San Antonio EMS Conference San Antonio, TX San Antonio Military Job Fair Randolph AFB, TX Southwest Oklahoma Lawton, OK Southwest Texas Career Day San Marcos, TX Southwest Texas State University San Marcos TX Southwest Texas State University Abilene, TX St. Mary's College* San Antonio, TX St. Phillip's College* San Antonio, TX Stephen F. Austin Career Day Nacogdoches, TX Tarleton State University Stephenville, TX Tarrant County Community College Fort Worth, TX Texas A&M University* Kingsville, TX Texas A&M University* Commerce, TX Texas College* San Antonio, TX Texas Woman's University Denton, TX University of North Texas Denton, TX University of Texas at Dallas Richardson, TX University of Texas at San Antonio San Antonio, TX West Central State University Abilene, TX Wiley College* Marshall, TX * TargetedJbr minorities 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 78 Department: CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Performance Measures Division: This chart is intended to be a resource for department directors and supervisors to use to determine how effective their diversity efforts have been. Recruitment # of positions filled during the year # of protected class hires Average number of protected class applicants interviewed per job Average number of protected class applicants available to interview per job # of recruiting trips attended by a representative of the department # of minority publications/websites targeted (please list): Turnover Total # of regular full-time and regular part- time employees in department Total # of regular full-time and regular part- time employees terminated (voluntary and involuntary) % turnover (# terminated/total #) Reasons for termination (voluntary and involuntary) (please list): Training and Development # of employees in department participating in tuition reimbursement # of employees in department who received a degree while utilizing the tuition reimbursement program # of employees in department participating in the STEP academy 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 79 Department: CITY OF DENTON Workforce Diversity Plan 2002-2003 to 2006-2007 Performance Measures Division: This chart is intended to be a resource for department directors and supervisors to use to determine how effective their diversity efforts have been. Training and Development, continued # of employees in department participating in other in-house training (not including STEP academy participants) # of employees attending external training programs Average number of personnel hours spent in training classes during the year # of employees in department on developmental tracking # of employees in department who successfully completed development tracking Employee Relations # of employees who filed a formal or informal grievance with direct supervisor, a supervisor in his/her chain of command, and/or Human Resources # of employee disciplines given: -oral reprimand -written reprimand -suspension -performance improvement plan -decision making day -termination # of employees who successfully completed a performance improvement plan 1/4/2005 2002-2003 5 Year Diversity Plan - Updated 2004.doc Page 80 AGENDA INFORMATION SHEET AGENDA DATE: January 18, 2005 DEPARTMENT: Finance ACM: Kathy DuBose SUBJECT Receive a report, hold a discussion, and give staff direction regarding the annual independem financial audit. BACKGROUND Annually, an independem audit of the City of DeMon's financial statemems is performed on the previous fiscal year. The audit is conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The audit also includes an assessment of the accounting principles used as well as the overall financial statement presentation. The auditors express an opinion on the financial statements based on their audit. PRIOR ACTION/REVIEW .(Council, Boards, Commissions) The independent auditor presents the results of their audit of the previous fiscal year annually. FISCAL INFORMATION The Comprehensive Annual Financial Report for September 30, 2004 includes the independem auditors opinion on the financial statements based on their audit. EXHIBITS a) Comprehensive Annual Financial Report b) Single Audit Reports c) Report to Management Respectfully submitted: Kathy DuBose Assistam City Manager AGENDA INFORMATION SHEET AGENDA DATE: January 18, 2005 DEPARTMENT: City Manager's Office CM/DCM/ACM: Michael A. Conduff, City Manager SUBJECT: Receive a report, hold a discussion, and give staff direction regarding 2006 Congressional project requests. BACKGROUND: Congressional funding priorities have been a key focus for the DeNon City Council. In past years, Denton has monitored legislation closely to identify those issues that were beneficial to local government and those issues that could potentially be harmful. Denton has always had priority funding needs but was not successful in obtaining earmarked federal funding for those projects. Congressman Burgess's election to the House of Representatives Congressional District number 26 in November 2002 provides Denton with an advocate in Congress. This new representation, along with the excellent relationship the city shares with Senator Kay Bailey Hutchison, and the emerging relationship with Senator John Cornyn, has assisted Denton in having a voice in Congress. For FY2005, DeNon submitted 14 priority projects (Attachmem 1) to be considered by Congress for either TEA-21 funding for transportation initiatives or appropriation requests. Denton was successful in obtaining $3.4 million dollars in funding for FY2005. This includes $3.2 million for the Dowmown Multimodal Transportation Facility and $200,000 for Dowmown Redevelopment Infrastructure. Further, the projects previously submitted for the Denton Airport are either curremly being funded by TxDOT or are programmed for funding within the next few years. Additionally, the previous FM 2499 Segmem 5 project has been funded by TxDOT and other transportation partnerships. Pending the outcome of the February 5th CIP bond election that includes a project to widen the railroad bridge on US 377, funding to widen US 377 will be complete. Attachment 2 provides a complete summary of FY2005 project requests. DeNon is now being asked by our Washington represemative to submit priority projects for FY2006 to be considered for TEA-21 funding and appropriation requests. The leadership of the House Transportation & Infrastructure Committee has informed members of the House that they will need to submit project requests for the reauthorization of TEA-21 during the 109~h Congress. The process for submission will be much the same as the process used for the 108~h Congress requiring both an electronic and hard copy of the questionnaire and a formal request letter for each project to the Committee. The Committee deadline for submission of the projects is early February. FY 2006 Congressional Priority Projects January 18, 2005 AttachmeN 3 outlines the proposed congressional priority projects for your consideration. These projects are being proposed based on the advice of our Washington represeNative, their significance, and the likelihood that they will receive consideration. Transportation projects include: · Western Loop 288 ($15 Million) · 1-35 Bridges ($16 Million) · FM 1830 ($10 Million) · 1-35 ($200 Million) · Mayhill ($9 Million) Other Appropriation Projects include: · DeNon Municipal Airport Infrastructure ImprovemeNs ($2.7 Million) · Pedestrian & Bicycle Linkages - Pecan Creek Trail Loop ($3.5 Million) · Library Outreach Program ($650,000) · DeNon Radio Communications INeroperability ($2.4 Million) · DeNon Police Technology ($1.367 Million) ACTION REQUIRED: Project submission recommendations and prioritization is required. We have been advised by Barbara McCall that funding for projects will be reduced for FY 2006 and that we may have a better chance for success by submitting a few high priority projects. PRIOR ACTION/REVIEW: Due to time constrains for submission, Council did not review FY2005 projects prior to submission. The completed project books were conveyed to the Council on March 4, 2004. Respectfully submitted: Betty Williams Director of Management & Public Information Attachments: Attachment 1: FY 2005 Congressional Priority Requests Attachment 2: FY 2005 Appropriation Request Summary Attachment 3: Proposed FY 2006 Congressional Project Requests '"'"' ! CITY COUNCIL Mayor Euline Brock Mayor Pro Tem Hark Burroughs Council Member Raymond Redmon Council Member .]ack Thomson Council Member Bob Montgomery Council Member Pete Ka m p Council Member Perry McNeill FY 2005 CITY STAFF City Manager Michael A. Conduff Assistant City Manager Kathy L. DuBose Assistant City Manager 3on Fortune Assistant City Manager Howard Martin City of Denton, Texas - www.cityofdenton.com Project Summary Page I PRO3ECT FY 2005 PAGE Denton West Loop 288 Denton FM 2499, Segment 5 Denton US Highway 377 3 4 5 Denton Interstate Highway 35 East Denton Downtown Multimodal Transportation Facility Denton Municipal Airport 6 7 8 Denton Section 5307 Transit Formula Grant Flexibility Denton Pecan Creek Trail Loop Denton Downtown Redevelopment Infrastructure 9 10 11 Denton Downtown Museum Complex Denton Library Community Outreach Program 12 13 Denton Radio Communications Interoperability 14 Denton Police Technology 15 Denton Contact Information 17 City of Denton, Texas - www.cityofdenton.com Project Summary Page 2 Congressional Priority Project - FY 2005 WEST LOOP 288 EXTENSION · ~ons~u~ion ~un~ing ye~ i~en~i[ie~ · ~ons~u~ien ~Ost en~i~e p~oie~i es~i~a~e~ ~35 ~illiOn City of Denton, Texas - www.cityofdenton.com Project Summary Page 3 Congressional Priority Project - FY 2005 FM 2499, SEGMENT 5 ri ~ate se~me~ City of Denton, Texas - www.cityofdenton.com Project Summary Page 4 Congressional Priority Project - FY 2005 US HZGHWAY 377 City of Denton, Texas - www.cityofdenton.com Project Summary Page 5 Congressional Priority Project - FY 2005 INTERSTATE HIGHWAY 35 EAST fe~a sta~§! M~s · S~dUl~ fo~ M~S pUbli~ h~a~i~g~ not yet annOUnced! ~i~iP~d i~ 200~ City of Denton, Texas - www.cityofdenton.com Project Summary Page 6 Congressional Priority Project - FY 2005 DOWNTOWN M ULTZMODAL TRANSPORTATZON FACZLZTY City of Denton, Texas - www.cityofdenton.com Project Summary Page 7 Airport Project- FY 2005 TRANSPORTATTON APPROPRTATTONS REQUEST: Denton Municipal Airport (DTO) City of Denton, Texas - www.cityofdenton.com Project Summary Page 8 Transit Project- FY 2005 LEGISLATIVE PRIORITY PRO3ECT REQUEST: SECTION 5307 TRANSIT FORMULA GRANT FLEXIBILITY Denton receives rant (se~ion Urbanized i~po~ant issue fo~ Benton; LewiS~illeandB City of Denton, Texas - www.cityofdenton.com Project Summary Page 9 Pedestrian/Bicycle Mobility- FY 2005 PEDESTRIAN AND BICYCLE LINKAGES PROPOSAL Pecan Creek Trail Loop ecrea~i ona! ~raj! user mai is, fa~o~jes~ se~oo!s, 6; 6 mil es o one,et ail ~ 2,600 City of Denton, Texas - www.cityofdenton.com Project Summary Page 10 Infrastructure- FY 2005 DOWNTOWN REDEVELOPMENT ZNFRASTRUCTURE TOTA~ City of Denton, Texas - www.cityofdenton.com Project Summary Page 11 Museum Project - FY 2005 DOWNTOWN REDEVELOPIVlENT ~0 ~0 major universities ~OUl~ enhance i~s viability' ~~~~~~~~~~~~ ~~~~~~~~~~ ~eD o ~n to o a~ e ~ ~rovDe a am~i~ e ~ ~ u ra!~ ~ e ~ a s ~i~g a revie~o arc~ite~u~ai m o~eiso ~e De~to~ ~ui!~ings a!ong w i~ m o~e!s~ 0 m ajo~ u n jve~si~j esi o~amflinDenmna~ aim e~n~e~io~e U n i~em~bt m age by effe medina's e !!e ge ~eg ~ he ~e!l~e e~ rqus~c ~e n~] nues~e e~i~y ~ouse "~ e the ~i r ~adie e~as" ~is i n eh ~!!e~i~n a!ua ~!ee o!!e e ~ions a! o n gwi~ha gallery foe! o e a! a ~i st s an fl a g e~ fo~mi e n~ e e~ o u! d City of Denton, Texas - www.cityofdenton.com Project Summary Page 12 Community Outreach Program - FY 2005 LTBRARY - COMMUNTTY OUTREACH PROGRAM BOOkmObile AdU City of Denton, Texas - www.cityofdenton.com Project Summary Page 13 Police Protection Projects- FY 2005 RADIO COMMUNICATIONS INTEROPERABILITY tower; simulcastin g all transmissions an d installation of ACU~000 for ARC,WIDE communications Interoperability to suppoR the Homeland securi~ se~ice Delivery Response PROBLEMXDENTXFXCATXOFI: Th e c u r r e n tra d i o sy st e m u t iii ze d byD e n t o n p u b liC S a feb/i s an e igh t ~ c h a n n elm ot o ro I a 800MhZ Trun k i ng system t h arco n sistS of maj orco m po n e nts t h ata re so metwelve to fiffee n year SOld; D u e to t herecentra P id growt hi nDento n~ de mograp h iC p rojectio n s indicate CallS for service cove rag ea rea~ Dead S Pots ¢~a n db u i ld ing penet ratio n ;bOth ca trying eq ual we ig ht relative to e m erg e ncy c o m mu n ica rio n s a n dh o m e I a n dsec u ri~ e m erg e ncy se rvic ed e live ry;Ad d itio n allY; the events of 9/ have placed demands on the DPDand DFDthatnecessitatea system u pgra d e in s u p portof t h e p u b I ic sa fe~ m i ssio n i XDEFITXFXED SOLUTXON: comprehensive bUildin g penetrations for all emergency communication s; FUAhe enhancement Ofthi s syste m WOUl d include the additio n of an ACU~I000 !nteroperabilit-y System that Will provid e fo r a II communicatio n needs o f th e Dento n Home lan d security nitiativesi PROJE CT FUN DXNG REQ UX REM E NTS: Uti l iZi ng exi st i n g ci~ of Dentonp ro Pertt for th e seco nd antenna site; the projected costs fo r this Project; $2;400;000; City of Denton, Texas - www.cityofdenton.com Project Summary Page 14 Police Protection Projects- FY 2005 POLICE TECHNOLOGY Th e De nto n PO ljceDe pa ~me ntha si d e ntjfjeds i x j nit jatjves co n~jn edw JthJ n i~ H o me la n d SeCu r J~ Pla n t h at a re d e s ig n ed tO i nc rea s e p ub li¢ s a fe~ Pro d U ~M an de n h an C e se ~i ce d eli ye Wt h ro u g h th e a d d itio n o ¢ teChnology; Add i ngthese tOOlS Will ena b le theCi of De nto n to be be~erprepa red to respo ndj n8 p ~oa~ivema n ne r to add ~essHomela n d secu~i~issues nd iv id ualP~oje de~ H Ptions a re a~a Ched to this d o C u m e nt; p roi e~i d e n tiff c a rio nan d Cost p roi e~io nfo rea C h Corn po n e n t are~ DigitalVideo Close circuit~ v ia]ntern~ProtOCOl $[75~000 Uti l ize c u r re nt digital C~ tec h nolog y an d d eskto psoffwa ~e; w h iChal IOWSt he pla ce mentor digital came~asi n eac h WO~kgCoupacea of each campus within the C ibf; Nonito[ing of sec u ri~wi I lbe p ~ovJd ed at specifiC d es kto P mo n ito Fi ngpoi ntsw it h in ea C h De Pa~ me nt~ a nd can be ~outed backto the po lice Depa~ment~iathewidea~ea netwoFk; Where instant notificati© na nd d ispatc h ofP U bliCsa fe~Pe ~son nelwillOCCUr; This sy~emwill a lsoa asan C u r re n tech no I ~ va i la b leal IO w s t h e capt u reo f drive rli ce n s e i n fo r m at jo nv ia ca rd sw i pe devices i n patrol cars aswel las moro to/c les wi lien able officersto ele~ro n iCallY read drive r lice n sei n fo rmation ;rap idl¥ i n putt hevi o la rio n COd e int h ed er ice a nd P tint t h e citatio n att he scene: AI I d ataisthe n securelytra nsfe fred tothe m un ici pa I Cou~ systemthus eli m i nating the ma nu al d a~ input Whilevi~uallY eliminating erro~s~ produ~iv i~ i ncr~sesin bOth organizationsexponentiallV; Dig i tal I n ~ ca r Vi deo SYSt e m $ [ 95; 000 P h a se on e e m p IOyS PUb l ic ~ P ri~a tepa ~ n e rs hiP w ithlOCal fi nan C iali n stit uti on s sC bOO IS government bUildings and othe securi sensitive facilities to provid e ShO~range transmission of live vide o du~ing a ct i ticaI incident; AS a~Fivin g office rs Co me into t~an s m issi o n ran g e ;t he i~ Digital V i d e o syste m au to m a t icaI I yin te ra Ctsw it h th a to ~ th echOS e n so u cce a nd a Co mplete t h re ata ~ ess me ntca n be q u ic klY m a d e; w h i c hW ill fa C il ira ret h e develop ment ora n a pp roPriate tacti~l response; The secon d phaseco nsist of u pg tad i ng cu~e nt systems to t henew digital vid eoPlatfo ~m o n pat~Ol ~e h icles capable of i ntera ~ing co m p ute rs patroI offi ce rsw i I I be a b letocapt urea Udio an dy id eoa nd sro re an d/O r~e I ay t h is digital d ara L iv e sc an D igita I Fi n g e r p r i n t SVSte m S 275; 000 T nstallationofa digital f inge~p ~in ca ptu re device pe~ma nently mounted in theDenton jail for comparison to lOcal ViOlators; couple this wit h and interface to the AU tomated F in g e r p tint !d e n tiff cation Syste m (A FI S )state o fTexa s id e ntifi~ti o n syste m fo auto ma tic transmission a nd co rnpa H son of pe rso nsi n CustodY; Th is Will be compli me ntedbYthe a d d itio n o fa po Ra b le u n itt h atw ill be d e P lOyed a s pa A ora Child I DP r~ ram Iocally; The wire lessly transmit Print data to the POI ice DepaRment for Iota I compariso n and identiff cationi City of Denton, Texas - www.cityofdenton.com Project Summary Page 15 Police Protection Projects- FY 2005 POLI'CE TECHNOLOGY (Continued) center that Will also be the mobile emergency ope~ations cente fortheCi~; !n a d d iti© n ithe mo bile bUS Will~espond With t heHa za ~dou s H ate rial~ea m a nd/o~ $300;000 to com pi ere this comma nd VehiCle into a mobile EOC; UPG~DE AND RELOCATZON OF THEC! EOC: r hard e pa Ame ntis t rai n in g ce n te r; Thesi zeof t h eEOC i snora d eq u a re fo r a Ci~ appr©aching 100;000 people and expected to dOUble in population in the next ten toff ftee n years; Aninte ri m re lo~tionor theEOC roanothe ciera Cili Will p rOVid e a mu Ohm° re satisfa CtO E OC e nviro n me nt until th e EOCiSUlti matelY city of Denton, Texas - www.cityofdenton.com Project Summary Page 16 CITY OF DENTON CONTACT [NFORHATZON Reqional & Local Transportation Policies Euline Brock, Mayor 215 E. McKinney, Denton, TX 76201 940-349-7717 euline.brock@cityofdenton.com Staff Leqislative Issues Betty Williams Director of Management & Public Information City Hall, 215 E. McKinney, Denton, TX 76201 940-349-8307 betty. Will ia ms@cityofdenton, com Transit & Airport ~lon Fortune, Assistant City Manager City Hall, 215 E. McKinney, Denton, TX 76201 940-349-8535 ion. Fortune@cityofdenton.com Surface Transportation / Roadways Charles Fiedler, Director of Engineering City Hall East, 601 E. Hickory, Denton, TX 76201 940-349-8948 cha rles.fied ler c~_~!5/ofdenton .com Community Development Barbara Ross Community Development Administrator 101 W. Locust St., Ste 500 Denton, TX 76201 940-349-7726 barbara.ross@cityofdenton.com Police Charles Wiley Police Chief 601 E. Hickory St. Denton, TX 76201 940-349-7925 charles.wiles@cityofdenton.com Mark Burroughs, Mayor Pro Tem 215 E. McKinney, Denton, TX 76201 940-382-4357 mark.burroughs@cityofdenton.com Parks & Recreation ~la net Simpson Director of Parks & Recreation 321 E. McKinney Street Denton, TX 76201 940-349-8274 ja net.simpson@cityofdenton .corn Library Eva Poole Director of Library Services 3020 N. Locust St. Denton, TX 76209 940-349-8750 eva.poole@cityofdenton.com City of Denton, Texas - www.cityofdenton.com Project Summary Page 17 "8 >- >- z z >_ o O ~ , 0 ,,,~ ~ o o c ~ 0 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Human Resources Kathy DuBose SUBJECT Receive a report and hold a discussion regarding a proposed reorganization of the Legal Department. BACKGROUND As part of the City Attorney's 2004-2005 goals, Herb Prouty was requested to "Evaluate the structure and organization of the total Legal department and recommend any needed changes." On December 3, 2004, Prouty presented the members of the City Council Appointee Performance Measures Committee (CAPMC) with a report outlining his proposal for the reorganization. His report along with an organizational chart and a recommendation memorandum from Perry McNeill, Chair of the CAPMC, was included in the January 7th City Council packet. The same information has been attached as back-up for this agenda item. PRIOR ACTION/REVIEW Council was provided a copy of the Herb Prouty's reorganization memorandum, an organization chart, and a recommendation memo from Perry McNeill, Chair of the CAPMC, in the January 7th City Council packet. FISCAL INFORMATION There will be a fiscal impact associated with any increases or reclassifications of staff. Herb Prouty has identified the fiscal impact and any increases awarded this fiscal year will be covered by existing funds in the Legal Department. Attachment: Recommendation Memorandum from Perry McNeill Legal Department Reorganization Memorandum from Herb Prouty 2005-2006 Legal Department Organization Chart 2004 Legal Department Areas of Responsibility Respectfully submitted: Carla J. Romine Director of Human Resources City Council, 215 E McKinney, Denton, Texas, 76201 Telephone (940) 349-8554 MEMORANDUM DATE: January 4, 2005 TO: Honorable Mayor and Members of the City Council FROM: Perry McNeill, Chair, City Council Appointee Performance Measures Committee SUBJECT: Reorganization of Legal Department As part of the City Attorney's 2004-2005 goals, Herb Prouty was requested to "Evaluate the structure and organization of the total legal department and recommend any needed changes." On December 3, 2004, Prouty presented the members of the City Council Appointee Performance Measures Committee (CAPMC) with a report outlining his proposal for the reorganization. A copy of his report is attached including the proposed Organizational Chart. I have also included the minutes from our last Committee meeting. In preparing his recommendation, Prouty conducted a comprehensive study that included: · Ten (10) North Central Texas cities that have approximately the same population or a similar size City budget, · The organization of the legal departments of both the City of Atlanta, Georgia and the City of Reno, Nevada due to their reputation of having a well-organized and well-run Legal department, and · Several law office management presentations made at legal seminars. · To help evaluate the organization of these Legal departments, Prouty requested copies of their organizational charts, mission statements, and staffing and performance indicators. Prouty's recommendations are included in his attached report. The committee met on December 16, 2004, with Prouty to review and discuss his proposed reorganization of the Legal department. As a result of our discussions, the committee is recommending the following: 1. Open Records Officer The CAPMC is in agreement with adding the duties of Open Records Officer to the Assistant City Attorney Eddie Martin's existing functions. These duties will Page 1 of 3 cover requests under the Open Records Act. They will encompass both written request for Texas Attorney General opinions as well as responses to information requests from the public. 2. Increase the Use of Software and Hardware Technology in the Legal Department The Committee was extremely supportive of increasing the use of technology as it has the potential to make the office more efficient. This change can provide the opportunity to make the flow of paperwork more efficient as well as potentially reduce the number of professional staff positions in the Legal Department. Designating one of the staff or professionals as the Technology Officer would be an essential component of this plan. An extremely important side benefit is the opportunity to reduce the $46,000 charge from Technology Services. It is the CAPMC's recommendation that this initiative be pursued. 3. Legislative Coordinator Function The CAPMC spent considerable time working on this concept. The four recommendations from Prouty were discussed at length. While the City needs to be a player in this arena, it was felt that utilization of current manpower could be accomplished in a more efficient manner with a change. The City PlO and the TML already provide a great deal of the efforts needed in this area. The recommendation is to move part of this function to the City PlO office. Also watch the TML legislative notices lists to see if added Lobbyists activity is needed at the State level on a particular issue. If deemed necessary, contract for such activity with an appropriate individual as DME currently does. It should be noted that Prouty's research did not find any other Cities of our size with a Legislative Coordinator in the Legal Department. The current Assistant City Attorney doing this function would be re-assigned other duties from existing staff, pending implementation of #7 below. 4. Reclassi _fy Staff Positions to Legal Assistant and Legal Secretary_ Prouty described the possibility of re-classifying the existing secretarial positions to those of Legal Assistant and Legal Secretary and naming an Office Manager. The CAPMC is strongly in favor of this action and recommends that this action be pursued through normal HR procedures. The possibility of having part of the work shifted to paraprofessionals is attractive as it can reduce the number of required licensed attorneys in the Legal Department. A companion recommendation to this is covered in #7 below. The funds needed to re-train the existing staff for these new positions are available in the current budget. 5. Full-time Police Legal Advisor The Committee did not feel that the current workload would justify a full time Assistant City Attorney assigned to the Police Department at this time. The CAPMC recommends that an evaluation during the coming year of this function continue and also include the need for a Legal Advisor for the Fire Department. Page 2 of 3 Given the fact that the City's Municipal Court cases are growing at a large rate, the duties of the current prosecutor will have to be evaluated to see if providing legal advice to the Police Department can continue. Prouty's report indicates that many cities the size of DeNon do have a full-time Police Legal Advisor. 6. Changes in Pay Scales and Position Remuneration Changes Prouty recommended a number of pay scale changes for both individuals and positions. While these may be justified changes, the Committee felt that these were managemem decisions that should be pursued through normal budget and HR procedures. 7. Changes in the Philosophy of City Legal Procedures and Practices As noted in the minutes, the CAPMC discussed the number of staff attorneys assigned to the Department and the mechanism of defending litigation against the City. The Committee is of the opinion that given the necessity of so many differem legal specialties needed, that the City should move toward one or two attorneys who are project and program managers for outside contract attorneys. The City will still need a Prosecutor and an attorney for the Utility Departmem. We recommend that the City pursue this technique as practiced by other Cities such as Bryan. This will entail a RIF for the legal department. 8. Proposed Reorganization Chart Assuming that the Legal Departmem is moved in the direction of the recommendation in #7, two project managemem attorneys, a prosecutor, a utility attorney and legal assistant and secretaries, the need to create the two divisions, Civil Law and Criminal Law made not need to be implememed. In summary the committee supports changes that would utilize the currem Legal staff more effectively and reduce the need for more permanem staff attorneys in the presem and future, including outsourcing, enhanced technology and enhanced training opportunities to certify more staff as Legal Assistams. We will be prepared to discuss these recommendations further at the January 18, 2005, work session. In the meantime, please let me or any of the other CAPMC members know if you have any questions. Attachments CC2 Michael A. Conduff Herb Prouty Page 3 of 3 City Attorney's Office City of Denton, Texas 215 East McKinney Denton, Texas 76201 (940) 349-8333 Fax (940) 382-7923 MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Pro Tem Perry McNeill Council Member Bob Montgomery Council Member Jack Thomson Herbert L. Prouty, City Attorney December 20, 2004 Revised Reorganization of Denton Legal Department One of the Council Employees' Performance Measures Committee's goals for me was to look at the organization of the Legal Department and to recommend any changes. Attached to this memorandum is a new Organizational Chart for the office, along with a revised "Areas of Responsibility" Chart showing the assignments of each attorney and support staff member in the office. There are a number of changes in the Organization Chart as a result of a detailed study of the organization of legal departments of ten North Central Texas cities who have either approximately the same population or a similar size city budget. I also reviewed the organization of the legal departments of both the City of Atlanta, Georgia and the City of Reno, Nevada. Both of these cities are considered to have well organized and well run legal departments. Additionally, we reviewed several law office management presentations made at legal seminars. The primary changes to the organization are as follows: 1. The reclassification of Diane Presley to Legal Secretary. The reclassification of Stephanie Berry from Prosecutor to Prosecutor/Police Legal Advisor. o The reclassification of Jerry Drake from Senior Assistant City Attorney/Litigation Chief to Senior Assistant City Attorney/Litigation Chief/Technology Coordinator. The reclassification of Toni Reedy from Legal Secretary to City Attorney to Office Administrator/Legal Secretary to City Attorney. 5. The reclassification of Eddie Martin as Assistant City Attorney III/Open Records Officer. o Changes in job assignments in the "Areas of Responsibility" Chart to reflect changes in reorganization and to add responsibilities created by the Council's creation of new committees and the passage of new ordinances. R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Commktee\3 - BU Lgl Dept Reorg.doc December 20, 2004 Page 2 The reasons for these changes are explained below: PROCESS AND OUTCOME OF ORGANIZATIONAL STUDY We requested information on municipal law office organization, including organizational charts, mission statements, staffing and performance indicators, from eleven North Central Texas cities that had approximately the same population or had a similar size budget as the City of Denton. Nine of those cities - irving, Plano, Grand Prairie, Waco, Lewisville, College Station, Garland, Mesquite, and Wichita Falls responded. The nine cities that responded were compared with the City of Denton to make ten cities in the organizational comparison. The cities of Reno, Nevada and Atlama, Georgia, both with considerably larger populations and much larger legal departments, were examined due to their reputation of having well-organized legal departments. The results of the cities surveyed were: Staffing: The staffing of the legal departmems varied from a low of 3.5 persons in the City of Lewisville to 16 in the City of irving. The average staff of the ten cities surveyed was 8.85 or 9 full-time equivalems (FTE). The City of Demon has a legal departmem often FTE, slightly above the average. DeNon is one of only two cities to provide legal services to an electric utility, one of few cities which handles most of its litigation in-house, and which provides legal advice to a complete utility departmem which has its own water, solid waste, drainage, and wastewater utilities and provides legal advice on a complete range of municipal services. Mike Copeland, who works for and is paid from the Utility Departmem budget, was not included as an FTE in the Legal Department. None of the ten cities, other than Denton, have a separate attorney working under and reporting to their utility department. · Strategic Plan: Of the ten cities surveyed, only the Denton Legal Department had a strategic plan. · Mission Statement: Denton was only one of two cities which had a mission statement, detailed departmemal objectives, and performance indicators. · Legislative Coordinator: Denton was the only legal department to have a legislative coordinator on staff to coordinate the City's legislative activities. Accredited Support Staff: The number of Denton support staff compares favorably with the other cities. But several of the cities have more legal assistants or about the same number of legal assistants as they have legal secretaries to augment the full-time lawyers on staff. Denton is the only legal department surveyed whose entire support staff has passed exams to gain the status of Accredited Legal Secretary or the title of Certified Legal Assistant for its professional support staff members. Some of the legal departments surveyed, like Plano, have created legal secretary steps - Legal Secretary i and ii and Senior Administrative Legal Secretary positions. Office Administrator: Denton is one of the few cities not to have someone in the office who is charged with the responsibility of being an office administrator. This is usually someone on the support staff who is in charge of generally administrating the support staff under the guidance of the City Attorney, scheduling, preparing office procedure manuals, organizing R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Commktee\3 - BU Lgl Dept Reorg.doc December 20, 2004 Page 3 the filing system, coordinating the workload and generally supervising day-to-day office activities. Police Legal Advisor: A number of the larger legal departmems have a person who serves as Police Legal Advisor either directly under the Chief of Police or as part of the Legal Department. In situations where the Police Legal Advisor is under the Chief of Police, such as in Plano, the Legal Department is able to utilize a portion of this person's time to perform other legal services. Technology Coordinator: Although none of the departments surveyed has a technology coordinator, based on recommendations from recent law office management seminars, the importance of technology cannot be under-emphasized. The only way the Denton Legal Department has been able to keep up with its increased workload in the last four fiscal years is through the utilization of technology. Having a qualified person in the department to manage technology is a key to the future success of the department. Open Records Officer: Several of the departments had a person designated - either a lawyer or a legal assistam - as the Open Records Officer. This person is in charge of handling all public information requests including writing requests for opinions to the Attorney General. RECOMMENDATIONS Reclassi_fy Diane Presley as Legal Secretary_: This is a function Diane has been performing for several years but she has not had the title or the salary to go along with this classification due to a number of budget cuts. This year Diane passed the difficult Accredited Legal Secretary exam on her first attempt and also achieved one of the highest scores on the test given as part of the graduation from the City's award winning STEP Academy Program. In view of this, we feel we would be foolish not to advance Diane Presley to Legal Secretary status. This will require a salary increase which can be covered from funds in the existing budget. The salary increase would be effective on January 1, 2005. Reclassify Stephanie Berry from Prosecutor to Prosecutor/Police Legal Advisor: This is a role that Stephanie Berry has been performing for many years without the recognition either in job title or salary. As indicated above, most of the larger cities have a Police Legal Advisor position either under the Chief of Police or under the Legal Department. In the last budget, Police Chief Wiley requested a Police Legal Advisor for his department. This was among the requests cut from his budget. I believe he intends to continue to keep requesting this position until the Council approves a full-time Police Legal Advisor for the Police Department. Denton has grown so that the need is probably here now for a full time Police Legal Advisor. Many cities of Demon's size have a full time Police Legal Advisor and another attorney who prosecutes cases in municipal court to avoid conflict of interest problems. But, until Chief Wiley's request is granted, Stephanie Berry will have to continue to play the dual role of Prosecutor/Police Legal Advisor to the extent she can perform this dual role without violating ethical duties and avoiding conflicts. This dual role is becoming increasingly difficult since the caseload of the Prosecutor has increased 200 percem R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Commktee\3 - BU Lgl Dept Reorg.doc December 20, 2004 Page 4 during the time that Stephanie Berry has filled this position. Also, the Police Department, Code Enforcement, and the Municipal Court have increased their staffing by 34 percent, 100 percent and 40 percent, respectively, over the past ten years, while we have retained only one person to fill both the Prosecutor and Police Legal Advisor roles. This reclassification will involve a small step increase - five percent - to be effective April 1, 2005, which can be covered from the existing budget. Even with this increase - Stephanie's salary will be below the average salary paid to police legal advisors in other cities due to the importance for accurate legal advice to law enforcement. The Organization Chart has also been changed to place more emphasis and recognition on our criminal law, in addition to our civil law responsibilities. Technology Coordinator: During the past four fiscal years there has been no increase in the staffing of the Legal Department while there have been increases in the staffing of the Police, Fire and other departments to whom this department provides legal advice. Partially as a result of those increases, the enactment of new legislation such as the gas well ordinance which has expanded out duties, and the creation of new committees to which this department provides legal services, such as the Ethics and Tree Committees, there have been significant increases in the Legal Department's workload. This is demonstrated by the fact that in fiscal year 2000-2001 the Legal Department reviewed only 3,527 documents while in the latest fiscal year 2003-2004 that figure was approximately 8,900 documents - an increase of approximately 150 percent in the document production workload. Additionally, in litigation pending cases have increased from 9 to 17 and collections have almost quadrupled from a little over $200,000 in the 2000-2001 fiscal year to nearly $800,000 this last fiscal year. The only way we have been able to keep up with this increasing workload is through more efficient use of technology. Due to what we perceive to be a tight financial situation for the City of Denton in upcoming fiscal years, it will be very difficult for the Legal Department to add any additional staff despite the workload increases. Accordingly, we must be even more aggressive in the use of technology in order to continue to provide quality legal services while the City is growing. Jerry Drake, in addition to being an attorney, is a mechanical engineer. He is also extremely knowledgeable about computer technology. We feel we need to move away from the more generic computer technology services being provided by Technology Services. Although Technology Services does a great job and the programs they provided have been very helpful, these programs are not specifically tailored to the needs of the Legal Department. Law office management consultants indicate that legal departments - to be efficient in the future and to avoid malpractice - must obtain technology specific to the legal profession and should designate a person in charge of technology. We can accomplish this by designating Jerry Drake as Technology Coordinator. Both the Police and Fire Departments already have someone who is acting in the role of Technology Coordinator. This probably will also require the purchase of legal technology specific programs such as case management software similar to task specific programs which other departments like Police, Fire, Finance, Accounting and the Library Departments have already received, and moving away from dependence on the more generic programs provided by Technology Services. Since there is no money in our current budget for such programs, we will probably request such a technology package in our 2005-2006 budget request. Either through assignment pay or a reclassification, we R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Commktee\3 - BU Lgl Dept Reorg.doc December 20, 2004 Page 5 would propose a step - five percent - increase in salary for Jerry beginning April 1, 2005. This increase is probably overdue since former City Manager, Mike Jez, had promised a reclassification and increase four years ago when Jerry took on most of our litigation services, which has not been implemented partially due to budget concerns. Office Administrator: Another primary need made apparent by our organizational study was the need to have someone designated as Office Administrator or Coordinator. Ed Snyder has been attempting to partially fill this need but his workload has become so heavy he can no longer be charged with this responsibility. Toni Reedy, my Legal Secretary, is the natural person for that job. Under this title she will be in charge of generally supervising two other support staff members and coordinating the activities of the office. Toni also has achieved her Accredited Legal Secretary status and, like Diane Presley, made one of the highest scores on the test given to graduates of the award winning STEP Academy Program. There is no money available in our budget for this fiscal year to increase her salary. Open Records Officer: Eddie Martin has been handling public information requests for several years. We need to designate him as Open Records Officer for the department in recognition of this role and to place the burden for responding to these requests primarily on one person. The number of these requests and their importance has steadily grown. Many of the legal departments surveyed have a person either on the support staff or an attorney who performs this function. Again, unfortunately, there is no money in the budget to award a salary increase for this change in function. Legislative Coordinator: Similar to the situation with Jerry Drake, at the time former City Manager, Mike Jez, asked Dottie Palumbo to assume the duties as Legislative Coordinator, due to her experience as a lobbyist for TML, she was promised a promotion in rank and an increase in pay which as not been forthcoming, again partially due to budget problems. We have never been able to fully fund this position due to the unavailability of funds. There is no money in the current budget to provide assignment pay or a five percent step increase for assuming these additional duties. Since no other legal department surveyed performs these functions, it may be time to determine if the City can provide assignment pay for this position, if we want to discontinue this position or to reassign it to someone on the City Manager's staff, or whether it is time for the City to outsource this function by hiring a full time registered lobbyist to assist us. The workload of this position has grown enormously over the past four years with numerous special sessions of the Legislature and more tracking of legislation at the state and federal level. Additional Legal Assistant: Based on the study and the trends in the legal profession, we need to have one of our three accredited legal secretaries obtain her certification as a legal assistant. Legal assistants can perform legal research and other functions an attorney performs under the supervision of an attorney. This will make us more in line with the staffing ratio of the legal departments we surveyed and help us meet increasing demands for legal services without increasing staff. Explore Steps in Legal Secretary_ Positions: The study indicates several cities, like Plano, have steps in the legal secretary positions. I will explore with Human Resources the R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Commktee\3 - BU Lgl Dept Reorg.doc December 20, 2004 Page 6 feasibility of adding Legal Secretary I and II positions with the II position being at a higher market band. If we implement this and move some personnel to the higher market band, there is no money in the current fiscal year budget to reward the employee with a corresponding step increase. Christine Dick, who has also passed the difficult Accredited Legal Secretary exam, would be one of the support staff considered for the Legal Secretary II position. Summa_ry: These changes in the organization and the reclassification and changes in job assignments will help bring the Denton Legal Department into the 21 st century. It will also assist us in continuing to provide quality legal services in the foreseeable future. Due to rapid changes in technology, one of the primary areas where the Legal Department will have to continue to improve is in efficiently using technology and becoming computer literate in new technology specific to our profession as it becomes available. Due to the tremendous increase in workload during the past four fiscal years and the anticipated future workload increase, with no foreseeable increases in staffing during the upcoming fiscal years, a shift from the generic type of technology provided by Technology Services to more legal profession specific technology is indicated. Please do not hesitate to contact me with any questions you have in regard to these suggested changes or to make any comments concerning the proposed changes. If I do not hear from you to the contrary, I intend to implement these changes on or shortly after January 1, 2005. HLP:tr Attachments cc: Michael A. Conduff, City Manager Herbert L. Prouty R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Committee\3 - BU Lgl Dept Reorg.doc LEGAL DEPARTMENT STAFF AREAS OF RESPONSIBILITY Herb Prouty City Attorney Ext. 7799 Ed Snyder Deputy City Attorney Ext. 8336 Jerry Drake Senior Assistant City Attorney/Litigation Chief/ Technology Coordinator Ext. 8333 · Acts as 0 0 0 0 0 0 Consultant for the following: City Council City Manager's Office Council Employee Performance Review Committee Finance Public Information Emergency Management · Reviews Gas and Electric Franchises and all Utility Rate Increase Requests. · Backup to Utility Attorney on Water, Wastewater, and other Utility Issues. · Backup to Deputy City Attorney on Economic Development · Backup for Utility Attorney on Public Utility Board. · Conflict of Interest/Ethics Questions. · Supervises all Attorneys and the Legal Assistant. · Prepares Semi-annual and Annual Reports and reports to the Performance Review Committee on the Departmental Strategic Plan. · Coordinates Departmental Budget Preparation. · Acts as Consultant for the following: o Airport o Economic Development o Engineering o Materials Management o Parks & Recreation o Planning o Facilities Management · Real Estate, Eminent Domain and Transportation Matters including DCTA. · Backup for and Acting City Attorney in City Attorney's Absence. · Supervises Support Staff. · · · Heads and Coordinates all Litigation except Eminent Domain. Handles Claims Against the City. Coordinates with Assistant City Attorney III as Consultant for Fire and Police except first backup on Civil Service issues. Acts as Technology Coordinator; Formulates Technology Programs and Services for the office. Reviews Hotel Occupancy Tax Fund Contracts. Serves as Second Backup to Municipal Prosecutor. Revised as of 12/15/04 R:\Agendas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Committee\5 - BU Areas ol'Responsibilty 2004.doc Legal Department Staff Areas of Responsibility Page 2 Dottie Palumbo Senior Assistant City Attorney/ Legislative Coordinator Ext. 8393 Eddie Martin Coordinates all Legislative Activities for State and Federal Issues. · Acts as Consultant for the following: o Development Code o Planning © Building inspections o Code Enforcement · Approves Construction and Development Contracts. · Approves Gas Well Contracts, Permits and Bonds. · Approves Cable Franchises, Telecommunication Access Line Payments and Cable Franchise Payments and Disputes. · Serves as Backup for Board of Adjustment, Community Development, Code Construction Board, and Economic Development Partnership Board. · Acts as Consultant for the following: Assistant City Attorney III/ Open Records Officer Ext. 8239 Board of Adjustment Community Development Historic Landmark Commission Human Resources Library Main Street Civil Service Code Construction Board Fire Department · Responds to Public information Requests; Chief Open Records Officer. · Handles Employee Terminations, Disciplinary Actions, and EEOC Complaints. · Handles Claims by the City, Bankruptcies and Related Collections. · Reviews Personnel Policies. · Serves as First Backup for Prosecutor. Stephanie Berry Assistant City Attorney ii Prosecutor/ Police Legal Advisor Ext. 8334 · Municipal Court Prosecutor/Police Legal Advisor · Chief Prosecutor for all Municipal Court Cases. · Acts as Consultant for the following: o Animal Control o Code Enforcement · Police Legal Advisor o Police Open Records Requests © Drafts Law Enforcement Related Ordinances © Advises on Search and Arrest Warrants © Advises Police Department on Legal Issues Revised as of 12/15/04 R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Committee\5 - BU Areas ol'Responsibilty 2004.doc Legal Department Staff Areas of Responsibility Page 3 Mike Copeland* Utility Attorney Ext. 8158 Stephanie Ford Legal Assistant Ext. 8143 Toni Reedy Office Administrator/ Legal Secretary to the City Attorney Ext. 8335 Christine Dick Legal Secretary Ext. 8397 Diane Presley Legal Secretary Ext. 8130 Acts as Consultant for Denton Municipal Electric, Solid Waste, Water and Wastewater. © Rate Ordinances o Impact Fee Ordinances Amendments and Disputes © Complaints and other matters © Utility Bankruptcy Collections © Oversize Lines and Pro Rata Utility Matters © Utility Professional Service Contracts © Public Utility Board Legal Advisor Certified Legal Assistant. Assists Attorneys in Defending and Prosecuting Litigation. Performs Legal Research Regarding Various issues Under Supervision of Attorneys. Coordinates with Outside Counsel. · Accredited Legal Secretary and Serves as Secretary to the City Attorney. · Serves as Office Administrator under City Attorney; Assisting Deputy City Attorney Supervise Support Staff. · Serves as Secretary to the Assistant City Attorney ii. · Budget Officer under City Attorney's Supervision. Oversees Filing System. · Accredited Legal Secretary. · Serves as Secretary to the Deputy City Attorney. · Backup Secretary to Litigation Chief · Assists with Claims Filed Against the City of Demon and Prepares Monthly Report. Oversees Codification of City of Demon Ordinances. · Accredited Legal Secretary. · Serves as Secretary to the Assistant City Attorney iii and Senior Assistant City Attorney. · Responsible for Updating Law Library. · Serves as Legal Department Receptionist. · Processes all Purchases and invoices. · Property Collections Assistant-Prepares Monthly Report *Although Mike Copeland is an Assistam City Attorney, he is assigned to Utilities and works under the supervision of the Assistam City Manager for Utilities. Revised as of 12/15/04 R:\Agcndas\January 18, 2005\Backup\Legal Reorg - CC Peri'Measures Committee\5 - BU Areas ol'Responsibilty 2004.doc AGENDA INFORMATION SHEET AGENDA DATE: January 18, 2005 DEPARTMENT: CM/DCMACM: Airport and Transit Operations Jon Fortune, Assistant City Manager SUBJECT Receive a report, hold a discussion and give staff direction concerning the airport terminal building project to include GRW Willis' initial recommendation to replace the existing terminal building. The Airport Advisory Board unanimously recommends the advice as outlined by the GRW Willis report (7-0). BACKGROUND The City of Denton is the recipient of a two-part grant through the Texas Department of Transportation, Aviation Division (TxDOT) for the construction of a new terminal building and the addition of a new parking lot for the facility. To select and hire a qualified design firm for this project, the City of DeNon established a selection committee. This committee consisted of the Airport Board Chairman, the City of DeNon Purchasing Manager, the City of DeNon Director of Facilities Management and the Airport Director. The Selection Committee developed a project scope and incorporated it imo a request for proposals (RFP) for the design and engineering services for this project. A short-list of three qualified firms was developed from the proposals submitted to the City. Upon completion of an imerview process involving each of the candidate firms, the City of Denton entered into a contract with GRW Willis, Inc to provide design services for the Airport Terminal Project. GRW Willis is a well known architectural and design firm with extensive experience in the general aviation community. The Selection Committee requested that GRW Willis make a recommendation on the best and most practical design for the future needs of the Denton Airport. With this understanding, Mr. Chuck Willis and Mr. Brian Glass of GRW Wills, Inc. conducted an extensive survey of the existing terminal building to determine how the current facility and this particular site interface with the functionality of airport operations, both airside and landside. Brian Glass, Project Manager for GRW Willis, produced a report documenting specific design issues as they relate to the current airport terminal building. It is important to note the GRW Willis report investigated whether the currem terminal building was designed by local architect O'Neil Ford. GRW Willis was provided with an earlier report conducted by the firm of Ford, Powell and Carson, Architects and Planners, Inc. based in San Antonio, Mr. Ford's firm. This report is dated March 22, 2004 and examined the history of the structure and whether the facility could be incorporated into a new design. Using this report and additional research on the history of the current terminal building, GRW Willis states that no conclusive evidence could be found to indicate the current terminal facility was designed by O'Neil Ford. However, the research concluded that local architect Roland Laney may have been the Architect of Record. Mr. Glass indicates the current facility is located "... at the visual and functional center of the airport..." and therefore, recommends maintaining this site for the Airport Terminal Building. The report also identified several issues that "question the structural integrity" of the current facility. The report reviewed and outlined three primary options: (1) Demolish the existing facility and utilize the site for new construction; (2) remodel and incorporate the current facility into a new design; and (3) relocate the existing structure to another location. Based on the two primary concerns (quality of construction of the current facility and budgetary constraints) GRW Willis recommends the existing facility be demolished and the site used for the construction of a new airport terminal building. The GRW Willis report has been attached for review. OPTIONS i. Demolition of the existing structure to allow for new construction on the site ii. Incorporate the existing structure into a new design iii. Relocate the existing structure to allow for new construction on the site IV. Provide staff direction with additional options RECOMMENDATION The Airport Advisory Board unanimously (7-0) recommends approval of Option i, demolish the existing structure and allow for new construction on the site. ESTIMATED SCHEDULE OF PROJECT Staff and GRW Willis will immediately initiate the design process based on the recommendation and direction provided by Council. Final design concepts could be available by April 2005 upon approval of concepts by TxDOT, Aviation Division. Construction schedule could begin in June 2005 with a targeted completion date of early 2006. PRIOR ACTION/REVIEW GRW Willis, Inc. conducted a survey of the facility and provided a recommendation for Option I above in a report dated January 5, 2005 "Existing Terminal Building Evaluation and Recommendation for Action." FISCAL INFORMATION A 50:50 match grant for design and construction services has been executed between TxDOT and the City of Demon for an airport terminal building and parking lot. The total terminal project participation by TxDOT will be $400,000. The City's match is $300,000 for the stand- alone terminal building and an additional $100,000 for the parking lot improvemems; total City match is $400,000. An additional $163,000 of local CIP funds will also be used in the project. Total estimated project budget is $963,000. EXHIBITS GRW Willis, Inc., 'Existing Terminal Building Evaluation and Recommendation for Action', report dated January 5, 2005 Respectfully submitted: Mark Nelson Director of Airport and Transportation Operations Existing Terminal Building Evaluation and Recommendation for Action Denton Municipal Airport Denton, Texas January 5, 2005 Prepared by: GRW Willis, I.c. 1161 Corporate Drive West, suite 1 70 Arlington, Texas 76006 Phone (817) 543-1100 Fax (817) 274-8878 Existing Terminal Building Evaluation and Recommendation for Action Denton Municipal Airport Denton, Texas Introduction: Due to continued growth and development at the Denton Municipal Airport the existing general aviation terminal facilities have become inadequate to meet the current and future needs. The City has received two associated grants from the Texas Department of Transportation Aviation Division, for the construction of a new terminal building which helps to establish the base program and budget for the new building. The architectural firm GRW Willis, Inc. has been retained to design this new terminal facility, and is in the early project- programming phase of the design process. A study dated March 22, 2004 was commissioned by the City of Denton to assist "in making a determination about the existing Airport Terminal Building and its future ability to serve the needs of the Airport''~. This study focused on evaluating the building condition and upon the issue of whether the building had been designed by the noted architect O'Neil Ford. It examined his possible role with the building design, but presented no conclusive evidence that he was or was not the design architect. The study also stated that the building is too small to serve the needs of the airport and as indicated in the recent master plan, that it has several significant defects and fails to meet certain current codes. However, the study also noted that the existing structure could, with sensitive design, be incorporated into the new project. The existing building occupies the most suitable location on the airport for a terminal building. Based upon the existing layout and operation of the airport, both the airport master plan and the preliminary studies undertaken by GRW Willis, Inc., support the use of the site of the existing terminal for the new building. With the approval of the TxDOT grant and the start of a new terminal building project, the issue of what to do with the existing terminal building has become a critical element of design, and must be addressed quickly in order to proceed with the project schedule. Options: Three options identified in the March '04 study have been reaffirmed by GRW Willis, Inc., and are presented below. Each option has some merit and significant costs associated with it. The options are: · Incorporating the existing structure into the new terminal building · Demolition of the existing structure to allow for expansion on the site · Relocating the existing structure to allow for expansion on the site Each of these alternatives are explored in this current study. Report on the Existing Airport Terminal Building for the City of Denton, Texas - March 22, 2004. 1 Building Survey: On November 10th, 2005 GRW Willis staff visited the Denton Municipal Airport to conduct a physical condition survey of the existing terminal building. Work to be accomplished included photographing and documenting the existing conditions and to identify items that must be considered in reuse, relocation or demolition of the structure. ^nalysis: The existing building is situated adjacent to the main general aviation aircraft parking apron on the airport, approximately 60' north of the recently constructed air traffic control tower. This separation is inside a 25-meter (82') security buffer recommended by the FAA for control towers. The main stub taxiway that provides access from the runway to the apron brings arriving aircraft directly to the existing terminal building site. The site is also located at the termination of Airport Road, the main access route from the City of Denton, which is the principle public access to all development areas on the east side of the airport. This places the existing terminal building at the visual and functional center of the airport, and at the principle junction of aircraft and automotive movement areas. Figure 1 - South Exterior - Existing Terminal The initial impression of the building is that it appears to have been well used and maintained. Architecturally, it is a simple form consisting of two shed roof structures of unequal heights, a style common to the 1960's. The building measures approximately 40'x 36' including porches. The south elevation is shown in Figure 2, above. The roofline covers approximately 1,700 square feet, about 1,000 square feet of enclosed interior space. The airside of the building consists of a glass enclosed lobby area surrounded by a porch while the portion of the building closer to the landside is sheathed with wood with a plaster finish. The glass is single thickness and un-insinuated. The wall separating the two roof forms and main interior areas of the building appears to be a central bearing wall and cannot easily be eliminated or relocated. The airside portion of the building originally served as a lobby and waiting area and the landside portion once contained an office, vending area, mechanical spaces and toilets. Due to lack of space the lobby is now used as a meeting room and a workstation for airport staff. There are numerous files and documents stored in this area as well. The original vending area, complete with sliding glass doors has been converted to an office. The mechanical space has been filled with stored janitorial supplies and more file storage. The existing toilets are functional but do not comply with current ADA or Texas Accessibility Standards. In order to meet these mandatory requirements, major building modifications and expansion would be necessary. AI RS [[) Ii P()R( I Of FiC[ 0 F F I~C E LIGHI' I NG VAULT ;LANDSIDE EXIS"IFI NG TE R,MI NAL, BUILDING DENTON MU ~I(.IPAL AIRPORT Figure 2 The building is constructed of light wood framing, wood sheathing with a plaster finish and has a composite shingle roof. The light construction and widely spaced framing members have not aged well. One of the most noticeable defects is the airside porch constructed of three posts supporting a beam. The columns and this beam are made of structural members clad with wood. As shown in Figures 3 and 4, below, the wood beam has warped and twisted, pushing the column out of plumb. The structural integrity of this condition is in question and not considered acceptable for extended use of the structure. Figure 3 - Beam Figure 4 - Beam It could not be determined by visual inspection how the structural members in the columns and beams are actually constructed. It was noted that the column cladding does not extend to the floor below. On closer inspection, it was determined that the columns bear on a single, approximately 1" diameter threaded steel rod, shown below in Figure 5. Disassembling the cladding would be required to determine what is inside the beam and columns. Figure 5 - Construction at Base of Column The floors in the porch and lobby areas of the building are finished with brick pavers set directly on the floor slab. Many of the pavers that have been exposed to the weather have cracked, are broken or are missing. In the lobby area there are many that have been stained by repeated water damage. In another area the floor has been damaged by an accidental chemical spill. The foundation has cracking typical of a slab on grade and has transmitted cracks into the floors and the walls but otherwise seems to have performed well. Foundation repair may not be required; however the cracking must be mitigated through structural repairs and possible replacement of the flooring and the installation of a sub floor system to isolate this cracking. The glazing on the airside of the building are single panes of glass set in two different styles of frames. This indicates that some of the windows and frames have been replaced since the original construction. Because the level of the porch and the main lobby area are the same, the storefront glass framing system is not sufficient to keep water out of the building. There are water stains as evidence of past problems and excessive amount of sealant (Figure 6) has been used in an attempt to keep the water out of the building. Figure 6 - Window Sealant There are also stains indicating water damage on the interior load-bearing wall. It appears that there is a problem with the flashing where the lower roof meets the load-bearing wall. The light construction of this building is most evident in the attic space. This area has large Iouvered panels that allow ventilation, but also reduce the thermal efficiency of the building. Where the walls and roof decks meet there are significant gaps and places to allow the weather to enter the building. The joist and framing are light members and widely spaced. The lack of sufficient space in the office area below has resulted in the use of this area for storage of airport documents and supplies. It should also be noted that the building's roofing is weathered and in need of replacement. The airport staff has indicated that there has been a significant amount of maintenance deferred on the existing air-conditioning system and, based on the age of the system, replacement maybe required soon. The attic space should be weatherproofed and insulated before any equipment is repaired or replaced. Figure 7 - Attic Figure 8 - Attic As stated previously, the existing toilets are not ADA or TAS compliant. The toilets in the present location and configuration could not be upgraded without significant modification, including the elimination of the screen walls at the entry and one fixture in each toilet room. Options Considered: Based upon the preceding survey and analysis, a summary of each option discussed previously is provided below: Incorporation of the existing structure into the new building would require complete reconfiguration of the interior space. The building location and orientation towards the apron make it suitable to serve as the main airside entrance or lobby space; however the load bearing wall in the center of the building would require beams and columns to allow enough space for this function. All problems with the flooring, columns, beams, glazing, roof, water leaks and air-conditioning would require repair. The existing toilets would probably need to be removed. If the space could be incorporated into the new building plan, the cost to accomplish the basic repairs and modifications could range from $60 to $85 per square foot or $60,000 to $85,000. If the space was improved to the quality of new construction, the price could approach or exceed the full cost of new construction of $150 per square foot. Incorporation may also reduce design flexibility in the new terminal layout, and force design solutions that may not be as economical or functional as a totally new structure. Additionally, the existing building may need to be so dramatically altered that any historic or architectural value in the building could be lost. Demolition cost of the existing structure and associated site utilities is estimated at approximately $10,000 to $15,000. This would allow full use of the site and maximum flexibility for the design, and would allow more economical construction. Relocation of the existing structure would require that a new location be found and secured, and a new foundation constructed. The cost of the relocation would be a basic fee for preparing the structure for transport and then additional cost per mile. This could cost as much as $25,000. The new site would require utilities such as power, water and electricity as well as phone lines. The building must comply with all city and state building codes. All the repairs to the flooring, columns, beams, glazing, roof, water leaks and air-conditioning would still be required. ADA issues such as bringing the toilets into compliance and providing accessible parking and routes into the building must be addressed. Site work for such a project, depending on the availability of utilities and other factors could range from $60,000 to $80,000. The cost for a simple slab on grade foundation could cost approximately $20,000 depending on the condition of the soils. The cost to make all the modifications to the structure could range from $60,000 to $85,000. The total cost to relocate the building could range from $140,000 to $185,000. Because of extent of large glass areas in the building, and the light structure, there is considerable concern that the building may not survive relocation. Cost Summary Table Option Range of Costs Demolition $10,000 - $15,000 Temporary Office Space: One important issue common to all options will be the requirement to provide temporary office space for the airport staff during construction of the new terminal; this issue is mentioned only as point to be considered in the total project budget. The cost for the temporary offices will depend upon the kind of space provided. Recommendation: The following factors have been influential in our recommended action: The existing terminal building site is the most suitable location to meet the airport's current and future needs. This site is the center of airport activity and the focus of airside and landside activities. The current and future needs of the airport are defined in the recent Airport Master Plan, which calls for a terminal building of approximately 4,000 square feet with the capability to expand and be compatible with the ultimate configuration of the aircraft parking apron. The current terminal site is the only location that can accomplish all of these requirements. As indicated in the March '04 report, the O'Neil Ford connection cannot be fully established (or denied) and it appears that his personal role in the actual design of this structure may be questionable. The quality of construction of the existing building must be considered. The light framing of load bearing walls, condition of the structural elements at the porch and design of the attic, roof and mechanical systems indicated that the building is at the end of its useful life. It would be unrealistic to believe that this structure could serve as part of a new terminal building for another 40 years. Finally, the City of Denton has established a project budget, based on available funding and the TxDOT grant which makes financial issues of great importance. Based on recent cost estimates and bids for similar airport terminal projects, we do not believe it will be possible to fund all of the new construction required to serve the airports needs and remodel the existing building to a condition suitable for incorporation into the new building. For these reasons we recommend that City demolish the existing terminal building and reuse the site to construct the new Airport Terminal Building. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Planning and Development Department Jon Fortune, Assistant City Manager SUBJECT: SI04-0036 (Multi-family mixed use regulations) Receive a report, hold a discussion and give staff direction regarding proposed amendments to the Development Code related to multi-family development. BACKGROUND At the November 18, 2004 joint City Council and Planning and Zoning Commission Work Session to discuss methods to increase housing value and to affect the ratio of single family to multi-family units, Council directed staff to prepare regulations related to multi-family development as part of a mixed use development, specifically related to the existing L (4) limitation. The existing L (4) limitation requires that multi-family development be designed as part of a mixed-use development of ten acres or more and is now used in both the Neighborhood Residential Mixed Use - 12 (NRMU-12) and Neighborhood Residential Mixed Use zoning districts. The staff drafted an amendment to the Development Code that responds to the Council's and the Planning and Zoning Commission's direction. The Planning and Zoning Commission discussed the multi-family/mixed use amendments at its work session on January 12, 2005. The Planning and Zoning Commission was unable to reach consensus on the issues raised by the amendments and seeks guidance from the City Council. The Planning and Zoning Commission is scheduled for another work session to discuss these amendments on January 26 and for action on February 9. The proposed amendment is set forth below as a Zoning amendment to the Development Code: The existing L4 limitation is proposed to be modified and applied to the NRMU-12, NRMU, RCC-D, RCC-N, RCR-1 and RCR-2 zoning districts for multi-family development as follows: [Multi-family is] "Permitted as part of a mixed-use development often (10) acres or more and only as part of a mixed-use development with non-residential uses permitted by the underlying zoning district or in conjunction with a master planned development. (1) "Mixed-use is defined as any development that combines three or more mutually supporting land uses on a single parcel or site or within a master plan development. Land uses may be mixed vertically, within the same physical structure, or horizontally, within connecting buildings (physical and functional integration of project components, including uninterrupted pedestrian connections) on the same lot and/or under unified control. Multi-family as a single use cannot exceed 40% of the acreage. (2) "Master Plan Development is defined as coordinated development proposals that incorporate one or more compact development options, such as cluster development, mixed-use, and higher densities in a comprehensive, integrated planning approach of an overall site instead of on a lot-to-lot basis. (3) "Master Plan Development, existing is defined as existing development projects approved prior to February 20, 2002, that have platting, infrastructure or development activity since their approval, and that incorporate one or more compact development options, such as cluster development, mixed use, and higher densities in a comprehensive, integrated planning approach of an overall site instead of on a lot-to-lot basis. To ensure that the non-residential component in a mixed use development is actually developed, all multi-family proposed as part of a mixed-use development in the NRMU-12, NRMU, DR-2, DC-N, DC-G, RCR-1, RCR-2, RCC-N and RCC-D zoning districts shall: (1) Require a development agreement, including a phasing plan; stipulating that non- residential development will be phased first, with multi-family residential phased last or only after 50% or more of the non-residential component has been developed. (2) Phasing Plan is defined as a graphic and narrative document that indicates the sequence and/or timing of intended development. (a) The Phasing Plan will describe and illustrate implementation of the project when development is anticipated to occur in multiple phases over a number of years. Phasing may be specified in a sequential order (1, 2, 3,...) or by time period (2005, 2006, 2007,...). (b) The phasing plan shall show how the project is to be incrementally developed. It shall relate the development phases to infrastructure requirements for each phase. (c) If a phased project proposes a disproportionate share of the common amenities, including, but not limited to, open space, landscaping and/or recreational facilities to future phases, assurances are required so that if the future phases are not developed, a sufficient mix of uses, or common amenities shall be provided for the phases actually developed. 1. Assurances shall be in the form of a letter of credit, escrow or recorded agreement by the mortgage holder or by the property owner guaranteeing the development of the non-residential and common amenities. 2. Assurances shall be submitted in conjunction with or prior to a phasing plan for the development is approved. (3) Before building permits may be issued for any portion of the project, a preliminary site plan for the entire project must be approved. Diversification of ownership shall not be considered a valid basis or justification for a variance or an amendment to a previously approved site plan." Discussion associated with proposed regulations · Although both CM-G and CM-E zoning districts allow multi-family development, they are not included in the proposed changes associated with L(4). Multi-family development in those two districts are already limited by L(6) which requires mixed use development as stated below: "[Multi-family] Permitted only on a 2'd story and above, when an office, retail, or other permitted commercial use is on the ground floor along an avenue, collector, or arterial street, otherwise office or retail uses are not required" · How much multi-family should be allowed? The regulations propose a maximum amount of multi-family at 40% (by acreage) of the total development. Although there is no data to support that mix (Attachment 1), it might be too high for large acreage developments or it might be to low for smaller developments. A matrix could be developed that would decrease the amount of multi-family allowed as the total acreage of the development increases, but again, there is no data available to support such a matrix. Although the maximum density allowed in each of the zoning districts limit the amount of multi-family that could be developed, the amount could also be capped by a total number of units allowed for any one project. · The majority of new multi-family development near the Universities and Downtown are typically less than ten acres. Applying the mixed use and 10 acre requirement will in essence stop all multi-family development in those areas. One possible solution would be to revise the current L(5) limitation to allow multi-family developments by right in the downtown area and near the universities. L(5) is currently applied to multi-family developments in the DR- 2, DC-N and DC-G zoning districts and states: Within this district the density of apartments will be calculated as one bedroom equating to .5 units. L(5) could be incorporated into L(4) and revised to state: Multi-family developments in the Central Business District and within 1/4 mile of TWU and UNT that are less than two (2) acres are not required to provide a mixed use component in the design. Within these areas, the density of apartments will be calculated as one bedroom equating to .5 units. This could allow small multi-family developments on appropriate infill lots to occur near the universities and downtown where they are needed. Provide Incentives Encouraging Mixed Use Development Incentives are not included in the proposed zoning amendment. However, political will and zoning regulations cannot control the market that usually determines the feasibility of creating mixed-use developments. The City of Denton could assist the development of mixed-use projects by investigating in a combination of tools to encourage the quality and type of mixed- use developments that would fiscally and aesthetically enhance the City including: Design Assistance --ranging from providing diagrams, pictures, and sample designs (i.e., "this will work"), to preparing complex site plans, computer simulations and modeling (e.g., transportation, drainage, etc.)tailored to individual projects. Capital Improvement Plans -- Including line items for unspecified infill and redevelopment projects for infrastructure, land or public amenity improvements. Marginal Cost Pricing -- A reduction to development charges, fees and exactions may be warranted for some types of projects and in town center locations (e.g., transit oriented developments, mixed use projects, etc.). Financial Incentives -- Financial incentives (i.e., beyond Marginal Cost Pricing) may include public improvement cost-sharing; land acquisition and write-downs; tax credits and abatement; low-interest loans and other financial incentives; application fee reductions or waivers; and expedited permit processing for development advancing a legitimate public purpose (e.g., public space, transit-oriented development). Tax Increment Financing (TIF) --A tool used by municipalities whereby property values in a particular district are frozen at a certain level; when property values rise, the taxes or the increased values are then funneled back into redevelopment projects there. Public Improvement District (PID) -- Under Texas law, municipalities may create special districts in which to improve landscaping, streetscapes, public amenities, parking facilities, infrastructure need and other municipal amenities. Partnerships -- Local governments can partner with other agencies and organizations that have a mutual interest in promoting infill and redevelopment. Tranched investments -- Some developers have successfully financed projects by allocating different returns to different lenders according to their expectations (tiered or tranched investments). A large, mixed-use project in Albuquerque was financed using an innovative approach that segmented the debt by allocating different returns to lenders according to their varying expectations of timing and cash flow expectations. This structure reduces the amount of the loan needed from a conventional lender who wants high short-term returns, allowing the developer to finance the project with more patient investments that facilitate a higher quality product. ATTACHMENTS 1. Staff'Analysis 2. Summary of Mixed-Use Regulations in other Cities Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development Attachment 1 Staff Analysis What is the definition of Mixed-Use Development? The Denton Development Code does not define mixed use development. The proposed amendment would define "mixed use development". There is no universally accepted definition of mixed-use development. Mixed-use usually refers to development that combines several mutually supporting uses on a single parcel or site or within a master plan development. Uses may include residential, office, retail, commercial, civic, and/or institutional. The scale of mixed-use development ranges from a single stand-alone neighborhood market with a second-story apartment, to a major development with several hundred thousand square feet of integrated housing, offices, shops, streets, and public space. Land uses may be mixed vertically or horizontally. Mixed land uses may be within the same physical structure or within buildings on the same lot. Mutually supportive land uses are integrated rather than separated or buffered from one another. Mixed-use developments are typically characterized by: · Three or more significant revenue-producing uses that are mutually supporting. These uses may include retail/entertainment, office, residential, hotel and/or civic/cultural/recreation. · Significant physical and functional integration of project components (and thus a relatively close-knit and intensive use of land), including uninterrupted pedestrian connections; and · Development in conformance with a coherent plan that frequently stipulates the type and scale of uses, permitted densities, and related items. National Trends Mixed-use developments are commonplace in densely populated, "24-hour" cities such as New York, Chicago, and Boston. Such developments are less common in mid-sized cities with less population density, but have been utilized with increasing frequency as a revitalization tool in such markets. Mixed-use projects are frequently the centerpiece of large-scale development initiatives with broad goals -- such as revitalizing inner-city areas or creating a central "place" in suburban communities. The most common mixture of uses is residential/retail, with office/retail as another common form. The emerging trend is to incorporate large entertainment venues or cultural institutions as anchors for mixed-use projects in urban settings to attract residents who want to live close to dining, entertainment and culture. Local Trends The North Central Texas Council of Governments estimates that shifts in population in the Metropiex over the next 30 years will result in a decreasing demand for single family detached housing and a simultaneous increase in demand for housing alternatives. By 2020, one quarter of the population of Dallas/Fort Worth will be over the age of 65. Higher density housing and mixed-use developments have occurred in Dallas, Piano, Fort Worth, and Southiake with other cities such as Frisco, Hurst, Irving and Arlington investigating the ways to regulate/encourage mixed uses. Mockingbird Station in Dallas and Legacy Development in Piano are examples of this type of development. In many cases, these projects have been able to capitalize on distinct qualities - such as unique designs with new construction, mix of uses -- to attract high-income tenants to the rental units. Location also plays a factor in maintaining occupancy rates of these developments. At the confluence of the Red and Blue lines of the DART light rail system of North Dallas, Mockingbird Station also is also sited at a highly visible imersection of Mockingbird Road and US 75 and within walking distance of Southern Methodist University. What are the mixed-use and multi-family development issues in Denton? The issue in DeNon is two-fold: a perceived over abundance of multi-family developmem and a lack of mixed-use developments in Denton. During development of The Denton Plan, four planning principles captured the essence of citizens' commems and imerests: inclusion, sustainability, balance and maimenance. The principle of balance is curremly of particular concern to City leaders. According to the Plan, the practical aspect of land use balance is reflected in the ratio and relationship between residential and nonresidential uses. The Denton Plan recommends a 60:40 ratio of single-family to multi-family housing by 2020. In 1998, prior to the plan's adoption, the ratio was 51:49. As of October 31, 2004, the ratio is 55:45, showing a trend in the direction of the goal. The University of North Texas and Texas Woman's University play a significam role in the demand for housing in the city. Because of a relatively young, transiem and very mobile university-related population, DeNon has a large percemage of multi-family dwelling units. The Denton Development Code embodies a set of zoning districts aimed at allowing mixed uses and improves the single family to multi-family ratio. Currently, eleven zoning districts allow multi-family developmem. The zoning districts and their land use categories are as follows: Table 1: Zoning Districts Allowing Multi-family Development NRMU- 12 DR-2 CM-G RCR- 1 NRMU DC-N CM-E RCR-2 DC-G RCC-N RCC-D While multi-family developmem appears to be booming in DeNon, it is unclear why mixed-use projects have not been a significant factor in Denton. Whether it is the market or the regulations of the Denton Development Code driving single-use developments is difficult to say. The DeNon Code does allow the opportunity for mixing uses by allowing residemial uses in nonresidemial zoning districts. The lack of mixed-use developmems is not a phenomenon exclusive to Denton. It would appear that the market is the major factor. Mixed-use developments have occurred on a limited basis since the adoption of the Denton Development Code. To date, there is one mixed-use development on the ground, the redevelopment of the Harpool's site at the southeast comer of Bell and McKinney. Several master planned developments are currently underway that include a mixed-use component: Unicorn Lake, Denton Station and the Villages of Carmel. Typically, mixed-use zoning districts are recommended in central cities or downtowns, town centers, regional centers, transit communities, main streets, major transportation corridors and employment centers/areas. Allowing multi-family residential uses in all eleven zoning districts identified in Table 1 follows this logic and is consistent with the land use goals and strategies contained in the Denton Plan: · Residential uses should occur within the downtown university core, community mixed-use centers, regional mixed-use centers, and employment centers (pg. 37). · Establish mixed-use development areas that allow housing in regional, community and neighborhood centers, and the downtown university core district (pg. 39). · Allow higher-density, single and multi-family housing along major arterial roads and near intersections of arterial and collector roads (pg. 40). · ...higher residential density occurs in regional, community, and neighborhood activity centers, where it makes sense (pg. 40). · High densities should be concentrated where infrastructure can support them and near jobs, schools, shopping, and cultural centers. · Increase the number of housing units and achieve higher housing densities in the downtown university core and mixed-use centers (pg. 40). Is there a commonly accepted ratio or percentage mix of uses required in successfully mixed-use projects? / How are other cities addressing mixed-use? Planning staff researched other cities' mixed-use ordinances and districts to identify best practices for: · The appropriate mixing of uses in various zoning districts · Mechanisms utilized to ensure that the non-residential component is built · A definition for mixed-use developments · An application of master planned developments under this new mixed-use definition. Our research did not uncover specific best practices for any of the purposes stated above. In fact, in each of the cities studied, the mixed-use regulations varied widely in their application and structure. (Attachments 1 and 2 contain a summary of the findings.) Conclusion Our research of various cities did not uncover a clearly defined development program that specifies an appropriate mix and scale of uses. The mix and scale of uses are derived from market analysis, characteristics of the site, physical constraints and opportunities, the financing environment and financing constraints, public objectives, zoning regulations, and timing and phasing. Successful mixed-use projects have no clearly dominant use, but a careful balance of USES. In all of the cities researched, multi-family is allowed as a single use in other zoning districts. Only the two Colorado cities specifically established a ratio and/or percentage mix of uses. According to conversations with the Planning staff, these figures were not based on any market research/scientific study. Fort Worth is in the process of amending its mixed-use ordinance because mixed-uses aren't being developed. The proposed changes relate to design standards and mix ratios. Colorado Springs is the only city in our research that has a mechanism in place that attempts to ensure that certain components of a mixed-use project are built. Colorado Springs ensures only the public amenities phase of the development by requiring phasing development plans to implement a mixed-use concept plan and requiring assurances in the form of a letter of credit, escrow or recorded agreement by the mortgage holder, or if none, by the property owner guaranteeing the development of common amenities. In the majority of the cities studied, with Addison and Fort Worth being the exception, difficulties have been in attracting the high-density residential component. Obtaining successful mixed-use developments are inherently more complex than single-use projects because of the different space needs of mobility, open space, privacy, and parking. There are also numerous considerations related to the mix of uses, including the proportion of uses, the physical relationship between uses, and the compatibility of uses to each other. Care must be taken to be flexible in the establishment of ratios and percentage mixes so that a project is not made to force a market that does not exist, ultimately resulting in failure. Attachment 2 Summary of Mixed-Use Regulations in Other Cities Addison (Population 14,100) A building containing more than one authorized use with the exception of residential uses is allowed as mixed use. Similarly, a mixed use (with residential) is a building containing more than one authorized use, with nonresidential uses limited to the ground floor. Horizontal mixed- uses are not included in the definition. These regulations were developed in partnership with the developer of the project. Two initial phases developed were commercial uses per the developer's discretion. Commercial businesses struggled for lack of residential density to support the commercial uses. Farmers Branch (Population 27,400) The approval of a mixed-use district of approximately 144 acres, designated as Farmers Branch DART Station Area, also known as the Station Area Form-Based Code is currently under City Council consideration. The Form-based Code regulates land-development by setting careful and coherent controls on building form, while employing more flexible parameters relative to building use and density. The Form-Based Code uses simple and clear graphic prescriptions and parameters for height, siting, and building elements to address the basic necessities for forming good public space. Success cannot be determined since proposed regulations have not been approved or implemented. Piano (Population 243,500) Downtown Business/Government (BG), Central Business District 1 (CB-1), and Commercial and Employment (CE) all permit mixed use. Mixed-use districts are also permitted in Planned Development districts incorporating the standards of the CB-1 and BG mixed-use districts. Success in getting mixed-use developments: · Multiple ownerships have made the development of PD-20 challenging. Multiple owners have challenged the approved development timeline. Multi-family uses have developed first and only few small offices have developed. · PD-65/CB-1 was successfully developed. According to city staff, the primary reason was that original developers did the entire development. · The Plano Town Center has experienced failure in capitalizing fully on their retail spaces. Without bringing certain retail design styles to the lower floors of the structure, the marketability to high-end retail has been hindered. Fort Worth (Population 598,850) Mixed-use includes a structure or project containing residential and nonresidential uses and is allowed in MU-1 and MU-2 districts. Amendments to the MU-1 and MU-2 zoning districts are currently being considered because mixed-uses aren't being developed. The proposed changes relate to design standards and mix ratios. Success in getting mixed-use developments: · Currently, the City of Fort Worth has about 70 mixed-use districts, including several urban villages. Few projects have a mix of uses in the same building. Most are single-use projects, primarily multi- family, that contribute to a larger mixed-use site or district. Southlake (Population 24,550) The location of different land uses, including commercial retail, office, residential, public, and other uses in proximity to one another either in the same building or in separate buildings but in the same developmem or block. The primary difference between Southlake and other cities is that one master developer is providing the mixed use template. The mixed uses are not being developed by several developers over time. Success in getting mixed-use developmems: The mix of uses expected at the time of the creation of the DT district has been obtained. However, planners recognize the need for higher residential densities to make the town center more livable. Bloomington, MN (Population 85,301) So far, four mixed-use projects have been proposed and/or approved. According to staff, a common componem of all four mixed-use projects is public financial participation. Zoning has not been the driving force behind any of these projects. City input and leverage through financial participation has definitely played a role. Three of the projects are not in "mixed use" zones and were approved as planned developmems. According to staff, the main problem is landowner/developer reluctance. But as more successful projects are built and the market demand demonstrated, the reluctance seems to be softening a bit. Another issue is infrastructure capacity, specifically road capacity. Although transit oriemed, these developmems, being very dense, still generate a lot of traffic, which needs to be accommodated. Colorado Springs, CO (Population 377,006) Success in getting mixed-use developmems · Few mixed-use developmems proposed and none approved. · Planned developmems (PD) implememing the mixed-use guidelines are moving forward. · Major obstacles for mixed-use developmems: - Up-froM engineering costs, which are higher than typical projects and - The availability of other zoning district allowing straight retail, office or multi-family USES. Frisco, CO (Population 2,628) Mixes use is defined as a project of attached or detached structures intended for more than one of the following uses, residemial, office, retail, commercial, industrial, institutional and public, and is allowed in Cemral Core (CC) district and Mixed-Use (MU) district. Success in getting mixed-use developmems: The Main Street area seems to be attracting mixed-use developments. However, regulations fall short in noise abatement requirements when apartments are located above restaurants. La Mesa, CA (56,049) Mixed-uses are projects that combine residemial uses with one or more of the following uses: office, retail, emertainmem, restauram, or community facilities. Mixed-use projects may be arranged vertically (ground-level retail, office, restauram, emertainment, or community facility with residemial uses above) or horizomally (commercial uses on a portion of the property linked by pedestrian connections to residemial uses as part of a unified developmem project). Mixed- use zoning districts include Mixed-Use Overlay Zone applies to only lots in the RB-D and C-D Zones. Success in getting mixed-use developmems: No formal applications for mixed-use developments have been processed yet because of the recent adoption of the ordinance. However, staff is aware of developers being imerested in redeveloping sites and providing residential units above office and retail uses. 10 AGENDA INFORMATION SHEET AGENDA DATE: January 18, 2005 DEPARTMENT: Finance ACM: Kathy DuBose SUBJECT Consider approval of a resolution by the City Council of the City of DeNon relating to the issuance of bonds by North Texas Higher Education Authority, Inc.; approving the issuance of such bonds and the use of the proceeds of such bonds; and making certain findings in connection therewith; providing an open meetings clause; and providing 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 Cities appoint the directors of the Authority. Under Section 53.47 the Authority may issue revenue bonds or borrow money to provide funds for the purchase of studem loans guarameed under provisions of the Higher Education Act of 1965, as amended. The City of DeNon is not financially obligated in any way. The Authority assumes sole responsibility for the administration of the Authority's studem loan program. The Authority issued its first revenue bonds for such purpose in 1979. NTHEA is requesting the City's approval to issue and deliver (1) taxable studem loan revenue bonds or other obligations, in one or more series in an amount not to exceed $75,000,000, during the first quarter of calendar year 2005, and (2) studem loan revenue bonds or other obligations, in one or more series in an amoum not to exceed $108,000,000 during the first quarter of calendar year 2005, utilizing a 2004 Private Activity Bond Carryforward and a 2005 Private Activity Bond Allocation. The City has previously approved the Authority's borrowing. In October 2004, NTHEA applied for and amicipates receiving approval for a reservation of tax-exempt allocation under the state volume cap of about $108 million. Approximately $60 million of the Authority's currem outstanding bonds will be maturing prior to November 2005, and the Authority's purchases are expected to be at least $175 million. Therefore, the Authority proposes to issue approximately $108,000,000 in tax-exempt and $75,000,000 of taxable variable rate demand notes in early 2005. The proceeds will be Agenda Information Sheet January 18, 2005 Page 2 used to refund certain existing debt and to supplement recycled principal payments to acquire loans from lenders participating in the Authority's program, as well as to fund consolidation loans for certain of the Authority's borrowers who have loans with multiple lenders and can benefit from the consolidation program. Additional issuance of bonds might be required later in 2005 because approximately $118,000,000 of the Authority's current outstanding bonds will mature in December 2005. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Since 1979 Council has approved resolutions to issue NTHEA student loan revenue bonds. FISCAL INFORMATION There is no fiscal impact to the City of Denton. EXHIBITS Memo from NTHEA Resolution Respectfully submitted: Kathy DuBose, Assistant City Manager North Texas Higher Education Authority, Inc. Higher Education Servicing Corporation m5o East Copeland Road o Suite 200 · Arlington, TX 76o1~ (8~7) 265-9~58 MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and Council City of Demon North Texas Higher Education Authority, Inc. November 23, 2004 Request for Approval for Issuance of Tax-Exempt and Taxable Student Loan Revenue Bonds As you know, the North Texas Higher Education Authority, Inc. (NTHEA) is required by law to obtain approval from its sponsoring cities for issuances of debt to finance its student loan secondary market program activities. The Authority last came to you in November 2003 for approval of $150,000,000 in taxable auction-rate securities and $42,000,000 in tax-exempt bonds. The proceeds of these issuances were utilized to refund maturing bond financings and acquire studem loans from the Authority's participating lenders. In October 2004, NTHEA applied for and amicipates receiving approval for a reservation of tax-exempt allocation under the state volume cap of about $108 million. Approximately $60 million of the Authority's currem outstanding bonds will be maturing prior to November 2005, and the Authority's purchases are expected to be at least $175 million. Therefore, the Authority proposes to issue approximately $108,000,000 in tax-exempt and $75,000,000 of taxable variable rate demand notes in early 2005. The proceeds will be used to refund certain existing debt and to supplemem Denton Memo recycled principal payments to acquire loans from lenders participating in the Authority's program, as well as to fund consolidation loans for certain of the Authority's borrowers who have loans with multiple lenders and can benefit from the consolidation program. Additional issuance of bonds might be required later in 2005 because approximately $118,000,000 of the Authority's current outstanding bonds will mature in December 2005. The attached summary will provide you with details of the Authority's historical financing activities. Also, you may be interested to know that to date, NTHEA has acquired loans aggregating approximately $1.7 billion, of which approximately $890 million is currently outstanding. As always, the City's support is gratefully acknowledged. NTHEA is proud to be in the sponsorship of a council who believes strongly in its stated purpose of providing students access to financial assistance for higher education. Should you have any questions or require further information, please contact: Kathryn Bryan, Assistant Secretary North Texas Higher Education Authority, Inc. 1250 East Copeland Road, Suite 200 Arlington, TX 76011-4921 (817) 265-9158 Thank you again for your interest and support of the program. Enclosure Denton memo 2 NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC. FINANCING ACTIVITIES 1979 - November 23, 2004 Tax-Exempt Financings: Date Type 1979 Series A 1980 Series B 1982 Series A 1982 Series B 1983 Series A&B 1985 Series A 1987 Series 1987 1990 Series 1990 Amount $10,000,000 6,000,000 11,845,000 25,000,000 50,000,000 23,100,000 98,000,000 50,000,000 1991 Series 1991A-F 153,500,000 1991 Series 1991G 90,000,000 1993 Series 1993A-D 140,000,000 1996 Series 1996 A-D 1998 Series 1998 2000 Series 2000A 2000 Series 2000 B 2001 Series 200lA 2003 Series 2003 2OO4 Series 2004 Total Tax Exempt Financings 43,000,000 40,815,000 67,580,000 35,000,000 39,545,000 73,400,000 42,000,000 $998,785,000 Purpose Current Outstanding Balance Credit Provider New Loan Purchases New Loan Purchases Refund Series A&B New Loan Purchases New Loan Purchases Refund 1982B Refinance Loans Held Under Line of Credit Refinance Loans Held Under Line of Credit Refinance West Texas Debt/New Loan Purchases Refinance West Texas Debt Refinance 1991G Bonds/New Loan Purchases Refinance Portion of 1991 Bonds/New Loan Purchases Refinance Portion of 1993 Bonds/New Loan Purchases Refinance Portion of 1991 & 1993 Bonds and Line of Credit New Loan Purchases Refinance Portion of 1993 Bonds/ New Loan Purchases Refinance Portion of 1993 & 2000 Bonds Refinance Portion of 1990 & 2001 -0- 87,750,000 1,000,000 50,000,000 -0- 70,000,000 35,000,000 40,815,000 18,080,000 35,000,000 37,545,000 73,400,000 42,000,000 $490,590,000 None None AMBAC AMBAC AMBAC AMBAC Bank of America Lloyds Bank AMBAC/ Lloyds Bank Mitsubishi Lloyds Bank AMBAC/ Lloyds Bank Bank of America Bank of America Bank of America Lloyds Bank Lloyds Bank Lloyds Bank NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC. FINANCING ACTIVITIES 1979 - November 23, 2004 Taxable Financings: Date Type Amount Purpose Current Outstanding Balance Credit Provider 1986 Line of Credit 1989 Line of Credit 1990 Line of Credit 1995 Four-year Advance 1996 Line of Credit 2000 Line of Credit 2002 Series 2002 $ 90,000,000 100,000,000 50,000,000 25,000,000 50,000,000 75,000,000 155,000,000 2003 Series 2003 30,000,000 2003-2 Series 2003-2 150,000,000 Total Taxable Financings $ 725,000,000 New Loan Purchases and to Refinance Loans Held Under Series 1983A and 1983B New Loan Purchases Interim Financing of Loans for 1990 Bonds New Loan Purchases New Loan Purchases New Loan Purchases New Loan Purchases and to Refinance SLMA Line of Credit New Loan Purchases New Loan Purchases -0- -0- -0- 67,000,000 155,000,000 30,000,000 150,000,000 $402,000,000 Fuji Bank Sallie Mae Bank One Sallie Mae Fuji Bank Bank of America ARC/Lloyds Bank Indenture ARC/Lloyds Bank Indenture ARC/Lloyds Bank Indenture RESOLUTION NO. A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THERE~VITH; PROVIDING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority") was established as a non-profit corporation, pursuant to the Texas Non-Profit Corporation Act, for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans; and WItEREAS, the City of Denton and the City of Arlington have requested the Authority to exercise the powers provided for in Section 53.47 of the Texas Education Code, as amended, for and on their behalf; and WHEREAS, pursuant to such request, the Authority has issued student loan revenue bonds or otherwise borrowed money to obtain funds to purchase student loans which are guaranteed under the provisions of the Higher Education Act of 1965, as amended, and additional funds are now needed to continue the program; WHEREAS, the Authority requests that the City approve the Authority's issuance of bonds, to be issued in one or more series, as needed, to augment the Authority's student loan program; WI~IEREAS, the City wishes to approve the issuance of the Authority's bonds provided that City is not responsible in any way for such bonds, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver (1) taxable student loan revenue bonds or other obligations, in one or more series in an mount not to exceed $75,000,000, during the first quarter of calendar year 2005, and (2) student loan revenue bonds or other obligations, in one or more series in an amount not to exceed $108,000,000 during the first quarter of calendar year 2005, utilizing a 2004 Private Activity Bond Carryforward and a 2005 Private Activity Bond Allocation. The bonds or other obligations are to be issued for the purposes of obtaining funds to purchase student or parent loan notes which are guaranteed under the Higher Education Act of 1965, as amended, refunding outstanding obhgations of the Authority, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53, Texas Education Code. SECTION 2. The City of Denton, Texas requests that the Authority exercise the powers enumerated and provided for in Section 53.47, Texas Education Code, as amended, and 45375850.4 that such non-profit corporation shall, in this connection, exercise such powers for and on behalf of the City of Denton, Texas and the State of Texas, as contemplated by Section 53.47(e), (f) and (g), Texas Education Code, as amended. SECTION3. The City of Denton, Texas does not agree to assume any responsibility in connection with the administration of the Authority's student loan program. Sole responsibility for the administration of the Authority's student loan program is assumed by the Authority. SECTION 4. Further, it is recognized by the City of Denton, Texas that the instruments which authorize the issuance of bonds, notes, or obligations by the Authority will specifically state that the City of Denton, Texas is not obligated to pay the principal of or interest on the bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the payment of any obligations of said Authority whether theretofore or hereaRer incurred; and in this connection, attention is called to the Constitution of the State of Texas, wherein it is provided that a city may incur no indebtedness without having made provisions for its payment, and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any present or future funds, assets or money for the payment of any indebtedness or obhgation of the Authority. SECTION 5. It is hereby officially found and determined that the meeting at which this resolution is passed is open to the public, as required by law, and that public notice of the time, place and purpose of said meeting was posted, as required by law. SECTION6. This resolution shall become effective immediately upon its passage and approval. [Remainder of This Page Intentionally Left Blank] 45375850.4 2 PASSED AND APPROVED this the day of ., 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: / 45375850.4 3 CERTIFICATE OF SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the following: 1. On the day of , 2005, the City Council of the City of Denton, Texas convened in regular session at its regular meeting place in City Hall, with the duly constituted members of the City Council being as follows: Euline Brock Raymond Redmon Pete Kamp Jack Thomson Perry McNeil Bob Montgomery Joe Mu[roy Mayor Council Member, District 1 Council Member, District 2 Council Member, District 3 Council Member, District 4 and Mayor Pro Tern Council Member, At Large Place 5 Council Member, At Large Place 6 and all Council Members were present at said meeting, except the following: Among other business considered at said meeting, the attached resolution, entitled: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH was introduced and submitted to the Council for approval and passage. After presentation and due consideration of the resolution, and upon a motion by ., seconded by ., the resolution was duly passed and adopted by the City Council, to be effective immediately, by the following vote: voted "For" ~ voted "Against" __ abstained all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date. 2. The attached resolution is a true and correct copy of the original resolution on file in the official records of the City of Denton, Texas. The duly qualified and acting members of the City Council of the City of Denton, Texas, on the date of the aforesaid Council 45375850.4 1 meeting are those persons above named; and according to the records of my office, each member of the City Cotmcil was given advance notice of the time, place and purpose of the meeting, and that said meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the entitled resolution, was posted and given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government Code. 1N WITNESS THEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the day of ~ 2005. (Seal) Jennifer Walters, City Secretary City of Denton, Texas 45375850.4 2 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Parks & Recreation Howard Martin, Utilities 349-8232 SUBJECT Consider approval of an ordinance amending Section 22-38 of Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of Demon, Texas, relating to facility and program fees by adopting a schedule of fees; repealing all fees in conflict with such schedule; repealing Ordinance No. 2004-262 and all ordinances in conflict with the new schedule of fees: and providing an effective date. The Parks, Recreation and Beautification Board approved these proposed fees at their January 3, 2005, meeting with a 6-0 vote. BACKGROUND This ordinance amendment relates only to fee changes for Civic Center rentals. No other General Fund fee changes for the Parks and Recreation Departmem are proposed in this amendment. The renovation of the Demon Civic Cemer is expected to be completed by April 2005. Since the facility is often reserved momhs in advance, it is necessary to set new rates for the facility to quote to prospective renters. The proposed renovations will make the Demon Civic Cemer more marketable for business meetings and seminars. The addition of three meeting rooms (two reclaimed from former offices, plus a new Community Room that is being added to the from of the building as part of the renovation) will be available for remal, and it is expected that the combined availability of meeting rooms in addition to the large rotunda will make the Civic Center much more versatile. Fee Development This ordinance deals only with General Fund fees for facility remals. Other fees normally charged for building use, such as building attendams, security, and cleaning fees are set by the Parks and Police departments and are not included in this request. In setting proposed remal fees, first a comparison study was made of other meeting facilities in Denton and other nearby cities. A survey was conducted of competitors' pricing and Civic Center prices were set to be competitive with similar facilities. Although it is difficult to find facilities with the same amenities, size and price structure to compare to, it was determined that a number of facilities did charge for a minimum block of time in either four or eight hour incremems for smaller meetings, with an average price of about $24 per hour per room, some of which may hold up to 50 people. Civic Center meeting rooms will range from $15 - $55 per hour with no minimum rental time required. This will provide more flexibility to customers' needs and provide greater value, because renters will pay only for the hours they want to use. Weekday rates differ from evening and weekend prime time rates. Rental rates are lower during off-peak hours during the week to attract additional rentals. A rental of five weekday or weekday evening hours, a ten-hour weekend rental, or an eight-hour rental of the entire facility on either weekdays or weekends converts to a maximum daily rate. Rotunda Rentals Rentals for the large rotunda area are being proposed at $65 per hour for weekday rentals and $85 per hour for evening and weekends. In addition to General Fund fees for the facility, building attendant fees of $10 per hour will be added to attend to the requests for the renter, and monitor building maintenance and safety. According to the price comparison survey, the Civic Center was under-priced for the amount of square footage available for use. For other banquet type facilities that could hold over 500 people, per person charges range from $2 to $5 per person, while the Civic Center averaged less than $1 per person when the maximum rate of $500 per day was charged and the maximum of 600 people were being accommodated. Fees had not been adjusted recently, because the building was badly in need of renovation, and because of the lack of small meeting room space requested by many potential renters to complement the use of the rotunda area for business meetings or seminars. The proposed rates for the Civic Center rotunda will still be a good value compared to other facilities of similar size because renters are allowed to bring in their own food or caterer. The attached ordinance details fees for room combinations including the plaza and kitchen areas. Non-General Fund Fees The following fees are not General Fund fees but are a part of normal rental contracts. presented to you for your information. This is Cleaning/Set up Fees No cleaning fee will be charged for meeting room rentals during regular business hours. Large rentals that occur on weekends and rentals, at which food or alcohol is served, require a special cleaning. Alcohol rental cleaning fees require a crew to mop up spilled drinks and for major restroom cleanings when large crowds are in attendance. No set-up fees will be charged to arrange meeting rooms for rentals. Large rotunda rentals that require set up and take down (more than 200 tables and chairs) will be assessed charges of $5 per table and $1 per chair. Damage/Cleaning Deposits An $800 damage deposit will continue to be required for alcohol rentals. Checks are held and returned if no damage occurs or no supplemental cleaning or maintenance is required. Cleanup after a major rental by the special crews may be as much as $600, with the additional $200 to cover attendant, staff and administrative costs to facilitate these cleanings which must be completed late at night or sometimes on Sunday to ready the building for the next business day. This deposit might also be applied to repairs such as broken restroom doors, etc. that may occur during large receptions. If such extra cleanings or repairs are required, the renter will forfeit their deposit to pay for those services. Police Security Alcohol rentals will continue to be assessed a Security Fee of $20 per hour per officer, with one officer required for every 100 guests expected at events at which alcohol is served. These funds are deposited directly into the Police Department General Fund revenue account. In past years, $6,000-$10,000 in security fees have been generated for the police budget from Civic Center rentals. Revenue Projection Traditionally, the Civic Center has been used by the Parks and Recreation Department for many of its children/teen programs and special events because of the lack of space to hold such programs as summer camps, classes, meetings, etc. in other facilities. The Civic Center will continue to serve as a location for these activities. The Civic Center will be a much more attractive and marketable facility after the renovations are completed by April 2005. To promote its new features, special Grand Opening events are planned, including an Open House for citizens and businesses, a Chamber Mixer and a Caterer's Orientation to showcase the new catering kitchen that is part of the renovation. New marketing materials are being created and promotional opportunities are being explored while the Center is closed for remodeling. An advertising campaign is also planned prior to the opening. OPTIONS Council may approve fees as proposed, deny the fee increases, or direct staff to revised the proposed fee schedule for the Civic Center. RECOMMENDATION Staff recommends approval of the proposed fee schedule for the Civic Center. ESTIMATED SCHEDULE OF PROJECT Renovations to the Civic Center are expected to be completed by April 2005. already being accepted. Bookings are PRIOR ACTION/REVIEW (Council, Boards, Commissions) Parks, Recreation and Beautification Board approved these fees at their Jan. 3, 2005, meeting with a 6-0 vote. FISCAL INFORMATION General Fund revenues for FY 04-05 are estimated at $17,245, if the Civic Center is open at least six months and bookings are received as anticipated. Projections for FY 05-06 are increased to $42,415 for General Fund for the second year of operation. BID INFORMATION N/A EXHIBITS 1. Ordinances - 2004 and Proposed 2. Civic Center Fee Schedule 3. Minutes from Jan. 3, 2005, Parks Recreation and Beautification Board meeting 4. Civic Center Floor Plan Prepared by: Lorraine McGregor, Program Area Manager Parks and Recreation Respectfully submitted: Janet Simpson, Director Parks and Recreation Department Si'~ D~mel~t~C~'clin~s'~OS~P~ Fac~l~ and program Fees.2OOs.doe ORDINANCE NO. AN ORDINANCE AMENDING SECTION 22-38 OF CHAPTER 22 (PARKS AND RECREATION) OF THE CODE OF ORDINANCES OF THE CITY OF DENON. TEXAS, RELATI2gG TO 'FACILITY AND PROGRAM FEES BY ~PTING A SCHEDULE OF FEES; REPEALING ALL FEES IN CONFLICT WITH. SUCH SCHEDULE; REPEALING ORDINANCE NO, 2004-262 AND ALL ORDINANCES IN CONFLICT WITH ~E~W SCHEDULE OF FEES; AND PROVIDING.AN EFFECTIVE DATE. COUNCIL OF THE CITY DENTON HEREBY ORDAINS: ~.E.CTION 1. See. 22-28 of the Code of Ordinances of the City of Denton, Texas .i~ araended to read as follows: See. 22-28. Facility and program fees, The depaxtment of parks and recreation shall charge and collect the fees for the use of buildings and facilities and for recreational programs, servicms~ and merchandise offered by the department in the amounts established in a "Schedule of Fees" ag, opted from time to time by ordinance of the city council, The director of the department may. set, charge and collect fees for classes, trips, equipment, merchandise, police or story services, mad: other programs, services, events and merchandise provided or offered by the department where no fee is established in the "Schedule of Fees". The fee or charge shall be based on the .costs of providing the event, service, equipmem or goods. SE~.ION.2. The "Schedule of Fees" for FY 2004-2005 and' until such time as such sehed~e ~ amended is se/forth in Exhibit "A", which is attached hereto and made a part hereof ali p~ses. S~ON 3. Ordinanoe No. 2004-262 and all ordinances, parts of ordinances, fee schedules or fees in force when the provisions of this ordinance become effective w?deh are inconsistent or in conflict with tho terms or provisions contained in this ordinance are hereby repealed. Orddnanee No. 2004-262 excepted, all ordinances, parts of ordinances, fee schedules or fees not inconsiste~ or in conflict with the terms or provisions contained in this ordinance shall remain in full force' and effect. SECT!ON..4~. The provisions of this Ordinance are separable, and the invalidity of any phrase or paxt of this ordinance shall not affect the validity or effectiveness of the remainder of this ordinance. $_~.G~!ON.5. ns Ordinance shall become effective imrn~atelY upon/ts:passage and ~roval, EXHIBIT 1 S~Our Do~umea~ts~Ordin-an~es~05~Parks Fa~ilityand program Fees-200$floe P~SED ~ APPROVED ~y of: EUL~E ATTEST: JEN~qlF~ WALTERS, C~Y SECRETARY BY: APPROVED AS TO LEGAL FORM: Page 2 Exhibit A PARKS AND RECREATION FEES General Fund Only Effective January 18, 2005 TYPE FEE (resident~non.resident) Full gym .................................................... .60,00/70,00 (per hour) Half gym ................................................... 30,00/35,00 (per hour) Recreation center meeting rooms ...................... 20.00.r25.00 (Per hour) Civic Centc~: (New General Fund Fees ibr Civic Center) Civic Center: · Rotunda: $65 per hour (weekdays) $85 per hour (eVening~ and weekends) Maximum dailyrate: $650 M-F; $850 S-S · Meeting Room h Meeting Room 2 Rooms 1 & 2 * Community Room $I 5 per hour (weekdays) $25 per hour(evenings and weekends) Maximum dailyrate: $ 75 weekdays $125 evenings $250 weekends $25 per hour (weekdays) $35 per hour (evenings and weekends) Maximum dailyrate: $125 weekdays $175 evenings: $350 weekends $40 per hour (weekdays) $55 per hour (evenings axed weekends) Maximum daily .rate: $200 weekdays $275 eve~ings $550 weekends $40 per hour (weekdays) $55 per hour (evenings and weekends) Maximum daily rate: $200 weekdays $275 evenings $550 week.ds Page 1 of 3 Rooms 1, 2 & Community Room $85 p~r hour (weekdays) $115 per hour (evenings and weekends) Maximum daily rate: $425 weekdays $575 evenings $l,1.50 weekends Plaza $15 'per hour Plaza with restrooms $15/hr., and rental of a meeting mom for restroom access · Kitchen $15 per hour with meeting room 'rental $20 per hour for kitcheu only rental * Entire Facility Weekdays ~*~ M -P, 8 a.ttt - $ p.rm Evenings ~ M -F, 5 p.m.- I W~da = Sat - Sun., all day $160 per hour (weekdays) $210 per horn' (eveffmgs aad weekends) Maximum daily rate: $1,280 weekdays $1,680 (eveaings and weekends) l~'xtra SlOper hour charged R~ the renler for Buitd~ A~dm~ ~d ~m~h R~ Fred (~ Cle~g ~ (P~) ~d ~ufi~ ~ges (~d m Poli~ Dep~t) ~y aim ~. A ~able ~ge ~osit is ~m he~ ~ m~ m ~e~ if no ~gcs ~. Senior Center multi,pm'pose room ....................... 17.50/22.50 per quadrant ........................ 70.00/90.00 entire room Atliletie fie~: · AtMetie field (w/o ligllts) ............................ 12.50 o Athleti¢field (w/ligh0 ...............................20.00 Temxis: * Group court rental (w/o lights) ...................... 3.00/4.50 (per hour) * .Group court text. al (w/lights) ........................ 6.00/9.00 (per'hour) Admissions Individual cOurt:USe fe~ .......................... , .... 1.75 (i ~ hfs) during posted ~s; Only Individual season pass..., ............................ 35.00/~.00 Family Season pass,. ................................. 75.00/80;00 Y~uth SP0m Youth Sports Impact Fee. ~ ............................... 10.00 p~ P~cipant/p~ :season Page 2 of 3 Team mgistrati°n/season.. ...... ,,:., ............... i30~O0/team:per sea's°n FEE (resident/non~residenO ... Park. Vendor. One-day booth permit: * Non-profit vendor ....................................15.00 - For-profit ............................................... 25;00 Park Shelter Reservations Four.hour reservation: · Small shelter(capaoity: 25 persons) o Individual/non.profit ........................ 15,00 o Commercial .................................... 50~00/60.00 · Large shelter (capacity: 50 persons) o Individual/non.profit ........................ $0.00/60.00 o Commercial .................................... 100,00/I20.00 Civic Center_Garden iReser~aflon hudividual (4 hours) .................................. 25.00/30,00 Commercial (4 hours) ................................ 50.00/60,00 Ci~c..C~nt~r .~a~: ~ohithea~r Unlighted (1 hour) ..................................... 5.00/10.00 Lighted (1 hour) ....................................... 10.00/20,00 Pr~r~Ad~~on..F~ .......................... 4.50 (assessed for each program/class r%dstration per individual, both: resident and non.~esident). Non-resldentProeramFee ............................. 5;00 (assessed for e~ach program/class registration per individual, nonresident OltlIy). Page 3 of 3 0RDINANCE N0.. ,,~, ~(~r'~ ~,~ AN ORDINANCE AMENDING SECTION 22-38 OF CHAPTER 22 (PARKS AND RECREATION) OF THE CODE OF ORDINANCES OF TI-lB CITY OF DENTON, TEXAS, RELATING TO FACILITY AND PROGRAM FEES BY ADOPTING A SCHEDULE OF FEES; REPEALING ALL FEES IN CONFLICT WrFH SUCH SCHEDULE; REPEALING ORDINANCE NO. 2003-267 AND ALL ORDINANCES IN CONFLICT WITH THE NEW SCHEDULE OF FEES; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY DENTON HEREBY ORDAINS: SECTION 1.. Sec. 22-28 of the Code of Ordinances of the City :of Denton, Texas is amended to read as follows: Sec. 22-28. Facility and program fees. The depar~ent of parks and recreation shall charge and collect the fees for the use of buildings and facilities and for recreational programs, services, and merchaudise offered by the department in the amounts established in a "Schedule of Fees" adopted from time to time by ordinance of the city council. The director of the department may set, charge and collect fees for classes, trips, equipment, merchandise, police or supervisory services, and other programs, services, events and merchandise provided or offered by the department where no fee is established in the "Schedule of Fees". The fee or charge shall be based on the costs of providing the event, service, equipment or goods. SECTION 2. The "Schedule of Fees" for FY 2004-2005 and until such time as such schedule is amended is set forth in Exhibit "A", Which is attached hereto .and made a part h~eof for all purposes. SECTION 3. Ordinance No. 2003-267. and all ordinances, parts of ordinances, fee schedules or fees in force when the provisiom of this ordinance become effective which are ,inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed. Ordinance No. 2003-267 eXcepted, all ordinances, parts of ordinances, fee schedules or fees not inconsistent or in conflict with 'the terms or provisions contained in this ordinance shall remain in full force and effect. SECTION 4, The provisions of ~s ordinance are.separable, and thc invalidity of' any phrase or pm of ~s ordinance shall not affect the validi~ or effectiveness of the remainder of ~s ordinance. SECTION 5. ~s ordinance shall become effective mediately'upon its: passage and approval. EULINE BRO~, MAYOR ATTEST: JENNIFER WALTERS, C~ S'E~TARY APPRO~D AS TO LEGAL FO~: HERBERT L. PRO~, CITY ATTO~Y BY: '~ Page 2 Exhibit A ]PARKS ~ ~C~ATION FEES Genera! Fund Only Effective October I, 2004 TYPE FEE (resident/non-residenO. , Full gym.,..,,.~..: ............. '. ........................... 60.00/70.00 Ocr hour) Italf ~ ................................................... 30,00/35,00. ~:er hour') Recreation center meeting rooms ...................... 20.00/25,00 ~er'hour.') Cihe Center: · Per hour ....., .......................................... 50.00 · Per day .................................. ........ ~ ..... 500.00 Senior Center multipurpose room ..... ,..., ..... ,' ..... ,:. 17.50/22,50 per quadrant ........................ 70.00/90.00 entire room Athletic fields: · Athletic field (w/o HghtS) ............................ I2.50 · Athletic field (w/light) ............................... 20.00 Tennis: · Group eom rental (w/o lights) ........... , .......... 3.00/4~50 ~er hour) - Group court rental (w/lights) ........................ 6.00/9:00 (perhour) Admissions Tennis: · Individual court use fee .............................. 1,75:(1 ~ tn:s) during posted ~s. :only · Indi~dual:seasonp~s .... ~ ............................ 35.00/40.00 · Family season pass ..................................... 75.00/80,00' youth Sports Youth Sports Impact Fee ................................. 10;00 per p~cipant/per season AduK Sports, · Team registration/season ............................ 130.00/team per Reason Page 1 of 2 TYPE FEE (resident/non,resident) Park Vendor Sal, es One-day booth permit: · Non-profit vendor .................................... 15.00 · For-profit ............................................... 25.00 Park Shelter Reservations Four-hour reservation: · Small shelter (capacity: 25 per.sons) o Individual/non-profit ........................ 15.00 o Commercial ................................... 50.00/60.00 · Largo shelter (capacity: 50 persons) o Individual/non-profit ........................ 50.00/60.00 o Commercial ................................... 100.00/120.00 Civic Center Garden Reservation · Individual (4 hours) .................................. 25.00/30.00 · Commercial (4 hours) ................................ 50.00/60.00 Civic Center Park Amphi. t. heater · Unlighted (1 hour) .................................... 5.00/10.00 · Lighted (I hour) ....................................... 10.00/20.00 Program Administration Fee .......................... 4.50 (assessed for each program/class registration per individual, both resident and non-resident). Non-resident Program Fee .............................5.00 (assessed for each program/Class registration per individual, non-resident only), Page 2 of 2 Meetin¢ 1 Meeting ~ Room 2 Plaza Rotunda Kitchen W M ommunity Room Lobby Office EXHIBIT 3 Center Manager's Draft Parks, Recreation and Beautification Board Minutes January 3, 2005 Members present: Teresa Andress, Ross Richardson, Jo Kuhn, Chuck Smith, Patrice Lyke, and Geri Aschenbrenner. Staff present: Emerson Vorel, John Whitmore, Bob Tickner, Janie McLeod, Lorraine McGregor, Cathy Avery, and Gary Calmes. Chairman Teresa Andress called the meeting to order at 6:00 p.m. Awards and Recognition - Emerson announce the winners from the Parks and Recreation Awards luncheon that recognizes employees outstanding performances. Approvals of Minutes - Minutes from the December 6, 2004, meeting were accepted as distributed. ACTION ITEMS Revised Fees for the Civic Center - Lorraine discussed the revised fees for the rental of the Civic Center. She commented that there had been a few inconsistencies with the fees but that they had been resolved. Lorraine added that the fees are competitive with other facilities in the area. ACTION: Geri Aschenbrenner made a motion to approve the revised proposed rental fees. Jo Kuhn seconded the motion and it was passed unanimously. UNT Use of Denia Fields - John discussed UNT's request for the use of the Denia Park ballfields. John said UNT would make a financial contribution for the improvements and use of the fields. Staff has met with the Denia Neighborhood Association and incorporated their concerns into the interlocal cooperation agreement between UNT and the City. ACTION: Ross Richardson made a motion to approve UNT's request to use the fields and provide the improvements agreed upon in the interlocal agreement. Jo Kuhn seconded the motion and it was passed unanimously. DISCUSSION ITEMS Aquatic Center Fiscal Year 2003-04 Operation Report. John reviewed the report page by page with the Board. John commented that the largest factor in the reduced revenue for the water park was the number of rain days during the summer months. John asked if the Board had any questions; they did not. DIRECTOR'S REPORT Project Status Report - There were no questions regarding the distributed report. There being no further business, the meeting adjourned at 6:55 p.m. EXHIBIT 4 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET January 18, 2005 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Tom Shaw 349-7133 SUBJECT Consider adoption of an Ordinance authorizing the financing for five refuse trucks, a motor grader, a skid steer loader, and five 3A ton 4 x 4 diesel pickup trucks for the Solid Waste Departmem, and a wheel loader and screener for Beneficial Reuse through a lease purchase financing agreemem; providing for the expenditure of funds therefore; and providing an effective date (File 3279-Lease Purchase of Refuse Trucks and Equipmem, approximate finance charges of $123,364.40). (The Public Utility Board approved this item by a vote of 7-0). LEASE/PURCHASE ORDER INFORMATION This third party lease purchase financing agreemem is for the funding of five refuse trucks, a motorgrader, a skid steer loader and five 3/4 ton 4 x 4 diesel pickup trucks for the City of DeNon Solid Waste Department and a wheel loader and screener for the Wastewater Beneficial Reuse Department. A detailed list of the trucks and equipment and actual or estimated cost is attached as back up for your review. Several are listed on this agenda for individual consideration; others will be presemed at a later date. The lease period will be for five years with 10 bi-annual paymems of $144,364.14 including principal and imerest. The trucks and other equipmem will become the property of the City of DeNon at the end of the lease period. Chapter 271 Subchapter A Section.005c of the Texas Local Government Code exempts the acquisition of third party lease purchase financing from the competitive bid process. However, staff did solicit competitive proposals with rates varying from 4.15%APR to the low of 3.13% APR. Approval of this agreemem is for funding only. Competitive bids or imerlocal agreemems for the purchase of the trucks will be presented to Council for final approval. This agreement is imended to make funds available for the future acquisitions. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its January 10, 2005 meeting. RECOMMENDATION Awarded to Chase Equipmem Leasing Inc. (formerly Bank One) at an effective rate not to exceed 3.13% with an estimated cost of financing in the amoum of $123,364.40. Agenda Information Sheet January 18, 2005 Page 2 PRINCIPAL PLACE OF BUSINESS Chase Equipment Leasing Inc. Dallas, TX ESTIMATED SCHEDULING OF PROJECT Funds will be available upon Council approval and will be dispersed as equipment is received. The first payment is due within November 30, 2005 and every six months thereafter throughout the five-year agreement period. FISCAL INFORMATION The finance charges or interest in the approximate total amount of $123,364.40 will be paid as a portion of the semi-annual payments. The total amount of the lease is approximately $1,443,364.40 and will be paid from budgeted equipment acquisition funds of Solid Waste and Wastewater departments. Financed Amount Finance Charges Total Payback $1,320,000.00 Approx. $ 123,364.40 Approx. $1,443,364.40 Approx. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Attachment 2: 1AlS-File 3279 Equipment List Proposal from Chase Equipment Leasing Attachment 1 Proposed Equipment Listing Equipment January 18~ 2005 Agenda Motorgrader Skid Steer Loader Wheel Loader 3/4 Ton 4 x 4 Diesel Pickup Future Agendas Rear Load Refuse Truck Brush Truck Roll Off Refuse Truck Container Transfer Truck Dirt/Rock Screener Quant. Purchase Price 1 each $199,361 1 each $ 33,737 1 each $ 85,850 5 each $ 26,368 Estimated Purchase Price 2 each $140,000 1 each $130,000 1 each $130,000 1 each $ 53,000 1 each $275,000 Total $199,361 $ 33,737 $ 85,85O $131,840 $280,000 $130,000 $130,000 $ 53,000 $275,000 Total Approximate Cost $1,320,000 CHASE At tael~ent 2 8111 Preston Road Dallas, Texas 75225 December 28, 2004 Mr. Tom D. Shaw, C.P.IVl. Purchasing Agent City of Denton 901 B Texas Street Denton, TX 76201 RE: Tax-exempt Lease-Purchase Proposal Dear Mr. Shaw: Chase Equipment Leasing Inc. ("CELI"), and Bank One, collectively 3P Morgan Chase & Co., for itself, its successors, and assigns, is pleased to submit this financing proposal to the City of Lubbock (the "Lessee"). This letter is a proposal only and is contingent upon the Lessee's compliance with the requirements of the Internal Revenue Code of 1986, as amended, and all applicable state laws related to Lessee's ability to enter into a tax-exempt lease-purchase financing for the intended purposes. The terms and provisions of this financing are subject to credit and business approval in accordance with 3P Morgan Chase & Co's internal procedures, as well as certain conditions set forth below: TRANSACTTON: LESSEE: LESSOR: ESTIMATED FINANCING AMOUNT: BANK QUALIF][ED: USE OF PROCEEDS/TITLE: SECURITY: EXPECTED FINANCING TERM: PAYMENT MODE/FREQUENCY: Fixed-rate, fully amortizing, privately placed tax- exempt lease-purchase agreement ('Agreement") with $1.00 buyout at end of term. City of Denton, TX Chase Equipment Leasing Inc. $1,320,000 This proposal assumes that Lessee will not issue less than $10 million in tax-exempt obligations this calendar year and that the Lessee will designate this lease as a "non-qualified" tax-exempt obligation. To finance the acquisition of vehicles and equipment, the legal title of which shall vest in the Lessee during the term of the Agreement. CEL! shall obtain a lien on the financed equipment. The Agreement shall be subject to annual appropriation. Five (5) Years Payments shall be made semiannually in arrears, with the first payment due November 30, 2005 (assuming a commencement date of March 30, 2005) and the remaining payments due semi annually thereafter. PROPOSED INTEREST RATE: 3.13% City of Denton December 28, 2004 Page 2 PROPOSED LEASE PAYMENTS: $144,364.14 TNTEREST RATE LOCK: DOCU M ENTATZON: PROPOSAL EXPZRATZON: The above proposed Interest Rate and Financing Payments are valid through and including 3anuary 15, 2005. If bid acceptance not occur on or before such date, the proposed interest rate and financing payments are subject to adjustment to reflect changes in market conditions. CELI or its counsel shall prepare Documentation. This proposal will expire if bid acceptance does not occur by January 15, 2005. If acceptance has not occurred by this date, the Financing Rate and Payment Amounts wili be adjusted according to market conditions. This proposal is subject to credit and documentation approval at 3P Morgan Chase & Co's sole discretion. To render a credit decision, Lessee shall provide CELT with three (3) years of audited financial statements, a copy of the budget for the current fiscal year and other information as may be requested by CEL]['s Municipal Credit Group. We appreciate your interest in Chase Equipment Leasing ]:nc. and look forward to your favorable response. Should you have any questions regarding this proposal or need additional information, please contact me at 614/213-9561 or via email at john_pelzer@bankone.com. Sincerely, Chase Equipment Leasing Inc. 3ohn Pelzer Leasing Inside Sales ORDINANCE NO. AN ORDINANCE AUTHORIZING THE FINANCING FOR FIVE REFUSE TRUCKS, A MOTOR GRADER, A SKID STEER LOADER, AND FIVE 3A TON 4 X 4 DIESEL PICKUP TRUCKS FOR THE SOLID WASTE DEPARTMENT, AND A WHEEL LOADER AND SCREENER FOR BENEFICIAL REUSE THROUGH A LEASE PURCHASE FINANCING AGREEMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (FILE 3279-LEASE PURCHASE OF REFUSE TRUCKS AND EQUIPMENT, APPROXIMATE FINANCE CHARGES OF $123,364.40). WHEREAS, In the 2004-2005 budget process the City Council authorized the purchase of five refuse trucks, a motorgrader, a skid steer loader, five 3A ton 4 x 4 diesel pickup trucks and a wheel loader and screener from the to be determined lowest responsible bidders pursuant to Chapter 252 of the Texas Local Government Code in the estimated principal sum of $1,320,000; and WHEREAS, Section 271.005 of the Local Government Code authorizes the City council, in its discretion, to contract for the financing of personal property; and WHEREAS, the City Council finds that the herein authorized financing of the budgeted equipment through a lease purchase agreement with Chase Equipment Leasing Inc. is appropriate and in the public interest; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be expended for the herein authorized lease purchase agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby authorizes a lease purchase agreement to finance the acquisition of six refuse trucks and a composting machine with Chase Equipment Leasing inc., said agreement providing for a financed amount of $1,320,000 having ten bi-annual payments of approximately $144,364.14 with an effective rate of not to exceed 3.13% over 5 years. SECTION 2. The City Manager, or the Purchasing Agent as his designee, is authorized to enter into a lease purchase agreement on behalf of the City in accordance with the terms set forth in Section 1 and to expend the funds provided for in Section 1. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ';:' "' 3-ORD-File 3279 Page 2 of 2 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities 6) Receive a report and hold a discussion regarding vehicle replacement criteria utilized by the City. Howard Martin, ACM/Utilities, reviewed the criteria that determine vehicle replacement. He explained that the criteria are based on estimated useful life; miles/hours the vehicle has been in operation and the amount of repairs. Each piece of equipment is evaluated on a 15-point scale. When the point total reaches 15 the vehicle meets the criteria for replacement. Martin also gave an explanation of the categories in the points system. The Motor Pool fund tracks the information on all vehicles and maintains funding for all equipment/vehicle replacements. Each department provides funding for the initial purchase of the equipment/vehicle in their operating budgets. Using estimated life, each department provides money to the Motor Pool Fund for replacement costs so that funds are always available to replace equipment in a timely manner. This was an information only item and required no vote by the Board. 7) Consider approval of Bid No. 3251 accepting competitive bids and awarding a contract for the purchase of fleet vehicles to the lowest responsible bidders in an amount not to exceed $412,434.00. Tom Shaw, Purchasing Agent, presented this item. Shaw also introduced Mike Ellis, the new Fleets Superintendent to the Board. Board Member Phil Gallivan moved to approve Bid No. 3251, with a second from Board Member Bill Cheek. The motion was approved by a vote of 7-0. 8) Consider approval of Bid No. 3253 accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment to the lowest responsible bidder in an amount not to exceed $398,181.07. Page 1 of 2 Shaw also presented this item. Smith moved to approve Bid No. 3253, with a second from Board Member Bob Bland. The motion was approved by a vote of 7-0. 9) Consider approval of Bid No. 3279 for five refuse trucks, a motor grader, a skid steer loader, and five 3A ton 4 x 4 diesel pickup trucks for the Solid Waste Department, and a wheel loader and screener for the Beneficial Reuse division through a lease-purchase financing agreement to Chase Equipment Leasing, Inc. in an amount not to exceed $123,364.40. Shaw presented this bid. Bland moved to approve Bid No. 3279, with a second from Hopkins. The motion was approved by a vote of 7-0. The meeting was adjourned at 11:09 a.m. Charldean Newell, Chairperson Howard Martin, ACM/Utilities Lynn Pedrick, Secretary Page 2 of 2 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET January 18, 2005 Materials Management Kathy DuBose Questions concerning this acquisition may be directed to Jim Coulter 349-7194 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual contract for the purchase of lab service for drinking water testing for the City of Denton Water Production Division; providing for the expenditure of funds therefore; and providing an effective date (Bid 3273-Annual Contract for Lab Service for Drinking Water Testing awarded to MWH Laboratories in the estimated amount of $27,500). (The Public Utility Board approved this item by a vote of 7-0). BID INFORMATION This contract is to select a laboratory to perform analyses on drinking water influent and effluent to comply with drinking water regulations imposed by the Environmental Protection Agency and Texas Commission on Environmental Quality. These tests are in addition to tests performed at the plants and by the Denton Municipal Laboratory. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this item at its January 10, 2005 meeting. RECOMMENDATION Awarded to the lowest responsible bidder, MWH Laboratories, in the estimated amount of $27,500. PRINCIPAL PLACE OF BUSINESS MWH Laboratories Monrovia, CA ESTIMATED SCHEDULE OF PROJECT This is an annual contract with the option to renew for an additional year, contingent upon pricing remaining the same. Agenda Information Sheet January 18, 2005 Page 2 FISCAL INFORMATION This item will be funded from account 630100.7988. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1 :Tabulation Sheet 1-AlS-Bid 3273 BTD # 3273 Attachment 1 DATE: 12/21/04 ANNUAL CONTRACT FOR LAB SERVTCE FOR WATER TESTTNG QtYi BioVir ~ Clancy Laboratories, Lab- EHL Environmental Analytical MWH Inc. Division Consultants, Services, Inc. Laboratories Inc. South Bend, Principle Place of Business: Benicia, CA St. Albans, VT Williston, VI Monrovia, CA IN $394.00 Giardia and Ctyptosporidium Filtered I 26 EPA Method 1622/1623 *Follow LT2 $450.00 $455.00 $419.00 $440.00 Rules $497.00 Grabbed lA 46 Haloacetic Acids SM6251 B $165.00 NO BID $130.00 2 96 Trihalomethanes EPA 551 $65.00 NO BID $45.00 3 18 Bromide EPA 300.0 A/B $18.00 NO BID $30.00 4 I MTBE EPA 524.2/624 $150.00' NO BID $100.00 5 I Volatile Organics EPA 524.2 $150.00 NO BID $150.00 6 19 Bromate EPA 300.1B $75.00 NO BID $75.00 Bidder must be able to provide Provided in 7 pickup service for samples (please NO BID N/C quote additional cost for pick up) quote price* Bidder must be available for after 8 hours and emergency sample Yes analysis 8a Please quote additional cost for $100.00 (Quoted test N/C 100% after hours analysis cost) X 3 Surcharge 8b Please quote additional cost for $200.00 (Quoted test N/C 100% emergency analysis cost) X 3 Surcharge Please state any additional costs involved with analysis of heavy 9 metals or organic polluntants not See Bid See Bid* See Bid N/C lised on this bid (example: sample preparation cost, sample storage cost, etc. Please indicate processing time for analysis under normal conditions in calendar days (standard turn 14 Days 14 Days 21 Days lO around time from receipts off report by the City of Denton). Processing time Please indicate processing time for emergency analysis. 11a Processing time 48 Hours 24 Hours 48 Hours Will any analysis quoted in this bid 12 be subcontracted? If yes, please No No No Yes, EPA mark items that will be 1622/1623 subcontracted on the proposal. Addendum # I Yes Yes Yes Yes Yes SHIPMENT 1 Day 1 Day 1 Day 5 Days 21 Days ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF LAB SERVICE FOR DRINKING WATER TESTING FOR THE CITY OF DENTON WATER PRODUCTION DIVISION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3273-ANNUAL CONTRACT FOR LAB SERVICE FOR DRINKING WATER TESTING AWARDED TO MWH LABORATORIES IN THE ESTIMATED AMOUNT OF $27,500). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER ITEM# VENDOR AMOUNT 3273 1-6 MWH Laboratories 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 on file in the office of the Purchasing Agent; 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 ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 3-ORD-Bid 3273 BTD # 3273 Exhibit A DATE' 12/21/04 ANNUAL CONTRACT FOR LAB SERVICE FOR WATER QtYi MWH Laboratories Principle Place of Business: Monrovia, CA Giardia and Ctyptosporidium 1 26 EPA Method 1622/1623 *Follow LT2 $440.00 Rules lA 46 Haloacetic Acids SM6251 B $130.00 2 96 Trihalomethanes EPA 551 $45.00 3 18 Bromide EPA 300.0 A/B $30.00 4 I MTBE EPA 524.2/624 $100.00 5 I Volatile Organics EPA 524.2 $150.00 6 19 Bromate EPA 300.1B $75.00 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities The Chair, Charldean Newell, informed the Board that Item # 10 would be discussed after Agenda Item #5. The Board would convene into a Closed session as follows: CONSENT AGENDA: 1) Consider approval of Bid No. 3273 to Montgomery Watson Harza Laboratories for the annual contract for Lab Service for Drinking Water Testing. 2) Consider approval of a Professional Services Agreement with Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., Austin, Texas in an amount not to exceed $65,000 for legal services related to Denton Municipal Electric's (DME) updated Transmission Cost of Service (TCOS) case at the Texas Public Utilities Commission. 3) Consider approval of an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC, Austin, Texas in an amount not to exceed $68,000 for representation of the City electric and water utility interests during the 79th Texas Legislative Session. 4) Consider approval of the purchase of a back-up emergency diesel powered generator for the operation ofwastewater facilities during a loss of power from American Generators, Miami, Florida for an amount not to exceed $47,500. Board Member George Hopkins moved to approve Consent Agenda Items #1-4, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. Page 1 of 1 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Parks & Recreation Howard Martin, Utilities 349-8232 SUBJECT Consider approval of an ordinance to amend the Golf Driving Range lease contract between the City of DeNon and The Fundamemals Program, Inc. dba ONCourse USA to provide for the installation, maintenance, and operation of a batting range at North Lakes Park in the City of Denton: and providing an effective date. The Parks, Recreation and Beautification Board approved this proposed contract at their December 6, 2004, meeting with a 5-0 vote. BACKGROUND The City entered into a lease agreement with The Fundamentals Program, Inc. dba ONCourse USA on March 8, 1999, and renewed the lease agreemem in December 2002, to operate a golf driving range at North Lakes Park. The lessee has proposed to expand his current services to include the installation, maimenance, and operation of a batting range adjacem to the golf driving range. The batting range will allow batters to see the results of their efforts by hitting into a simulated baseball field. This concept appeals to adult softball and youth baseball players. Batters will purchase a bucket of 25 balls from the golf range for approximately $3.00. The balls are deposited in a bin at the batting range, the bin feeds into a pitching machine, and the batter hits the ball into the range. The range features outfield fences that simulate 'home run' distances. The office for the golf driving range will double as the office for the batting range. The City will receive fees based on a minimum momhly rate plus a percemage of the momhly gross revenues. A neighborhood meeting was held in July when the concept was originally proposed to the City. Neighborhood commems included the desire for the design of the facility to tie-in with other park improvements, to maintain the view of the trees and lake as much as possible, provide landscaping and maintain the facility at an appropriate level, and to honor the intent of the North Lakes Master Plan. OPTIONS Approve the lease comract amendmem and allow ONCourse USA to proceed with developing the batting range; or disapprove the lease contract amendment and the golf driving range will continue its current operation. RECOMMENDATION Staff recommends approval of the lease contract amendment effective February 1, 2005. ESTIMATED SCHEDULE OF PROJECT Installation of the batting range equipment will start within 30 days of amendment approval and open in the spring, 2005. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The original lease was approved by Council on March 2, 1999, and expired March 7, 2002. Council amended the lease on May 16, 2000, to more accurately reflect the actual operations under the lease agreement. The lease was renewed in December 2002. The Parks, Recreation and Beautification Board approved the lease amendment and installation of the batting range in their December 6, 2004, meeting. FISCAL INFORMATION The 2005 estimate of revenue to the City is $3,500, increasing to $5,500 for 2006. The golf driving range lease with the batting range amendment may be renewed and extended upon mutual agreement for three (3) additional five (5) year periods. The actual revenue may vary since a portion of the fees collected is based on a percentage of the batting range gross revenues. BID INFORMATION N/A EXHIBITS 1. Map of golf driving range, batting range, and immediate vicinity. 2. Amendment to Golf Driving Range Lease 3. Parks, Recreation and Beautification minutes Respectfully submitted: Janet Simpson, Director Parks and Recreation Department Prepared by: John F. Whitmore, Superintendent of Leisure Services Parks and Recreation Department Exhibit A I] North Lakes Park 639 I ,,--'Bonnie B~aeS-'treet~-~ , J Batting Range Property Golf Driving Range Area r c . /,--- Tennis Center Recreation Center t BONNIE Softball Complex F Parks, Recreation and Beautification Board Minutes December 6, 2004 Members present: Teresa Andress, Ross Richardson, Geri Aschenbrenner, Chuck Smith and Patrice Lyke. Members absent: Jo Kuhn and Reggie Heard. Staff present: Janet Simpson, Emerson Vorel, Bob Tickner, John Whitmore, Janie McLeod, Lancine Bentley, and Lorraine McGregor. Others present: Jay Epp. Chairman Teresa Andress called the meeting to order at 6:00 p.m. Awards and Recognition - Janet announced that Texas Recreation and Parks Society (TRAPS) had awarded Denia Recreation Center the Lone Star Programming - Certificate of Merit Award for their Black Light Basketball program. Approval of Minutes - The minutes was approved as distributed. ACTION ITEMS Consider an amendment to the Golf Driving Range Lease to allow for a Batting Range. Janet reviewed the discussion from the last meeting regarding Goin' Yard Batting Range. She said the range is owned by Jay Epp, and had proposed to operate on a sub lease from ONCourse USA, owned by Randy Brittain, to provide batting range services in North Lakes Park. The proposed batting range would be located immediately to the west of the current golf driving range. Goin' Yard assumes the full cost of the construction and operation of the facility. Ross asked if the batting range would interfere with the golf driving range. Janet explained that the batters are in cages and could not be hit by stray golf balls and that the range would not be in the way of the golf driving range. She added that a neighborhood meeting was held in July. Neighborhood comments included the desire for the design of the facility to tie-in with other park improvements, to maintain the view of the trees and lake as much as possible, provide landscaping and maintain the facility at an appropriate level, and to honor the intent of the North Lakes Master Plan. Action: Ross made a motion to approve the request to amend the Golf Driving Range Lease to allow for the construction and operation of a Batting Range. Patrice second the motion and it was passed unanimously. Consider a request for a Public Sewer Line Easement at Pebble Brook Open Space Park on Loop 288. Bob discussed the proposed routing of the sewer easement across the park area for the reconstruction of Loop 288 to connect with an existing easement passing through the open space area. Bob added that after reviewing the options, this is the most prudent and cost effective way to provide a major gravity sewer line to this part of the city. The sub-surface line will not interfere with future park development at this site. Action: Ross made a motion to approve the request of a sub-surface use of a portion of the Pebble Brook Open Space Park for the purpose of a utility easement in accordance with Chapter 26 of EXHIBIT 3 the Texas Parks and Wildlife Code; providing for a utility easement. Geri seconded the motion and it was approved unanimously. Bob said the item would be presented to the City Council at the January 4th meeting. DISCUSSION ITEMS Discuss Proposed Changes in Fees for the Civic Center. Janet said the Civic Center has been under renovation and will be completed April 2005. She said there would be additional meeting rooms, improvements to the interior design, and the kitchen will be enlarged to accommodate catering. Janet introduced Lorraine McGregor, Program Area Manager, who discussed the proposed fee increases for rentals for the Civic Center. Lorraine added that the there will be an Open House for the public and a Chamber of Commerce mixer there in April. This item will be presented to the Board as an Action Item at the January meeting. DIRECTOR'S REPORT Project Status Report - Janet said that the Lake Forest Park cost estimates came in higher than budgeted and that staff is working on ways to get the facility built. The park is a few months behind schedule. Keep Denton Beautiful - Janet said that Lancine was able to get a grant from the Green Ribbon that will cover most of the costs for the design and landscape development of the medians on Highway 77. Any expenses that the grant doesn't cover will be funded from the Governors Achievement Award that KDB won in 2003. Items for Next Meeting - Proposed Changes in Fees for the Civic Center. There being no further business, the meeting was adjourned at 6:45 p.m. S:\Our Documcnts\Ordinancesk0$~Amcndm~nt to Driving Range Lease.doc ORDINANCE NO. AN ORDINANCE APPROVING AN AMENDMENT TO A GOLF DRIVING RANGE LEASE FOR NORTH LAKES PARK DATED DECEMBER 10, 2002 TO PROVIDE FOR THE INSTALLATION, MAINTENANCE AND OPERATION OF A BATTING RANGE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton and Fundamentals Program, Inc. dba ONCourse USA ("Lessee") entered into that certain Golf Driving Range Lease Contract for North Lakes Park dated December 10, 2002 (the "Existing Lease"); and WHEREAS, the City and Lessee desire to amend the .Existing Lease to provide for the installation, maintenance and operation of' a batting range at North Lakes Park substantially in accordance with the Amendment to Golf Range Lease attached hereto and made a part hereof by reference (the "Amendment"); and WHEREAS, the City Council finds that the Amendment is in the pubhc interest; NOW, THEREFORE; THE COUNCIL OF THE CITY .OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Amendment is hereby approved. The City Manager or his designee is hereby authorized to execute the Amendment on behalf of the City and to exercise the City's rights and obligations thereunder. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ~ 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L.. PROUTY, ATTORNEY BY: CITy Page 2 AMENDMENT TO GOLF DRIVING RANGE LEASE NORTH LAKES PARK, CITY OF DENTON THIS AGREEMENT is made effective the __ day of (the "Effective Date") between the City of Denton, Texas Fundamentals Program, Inc. dba ONCourse USA (the "Lessee"). ,2005 (the "City") and the WITNESSETH: WHEREAS, the City and Lessee entered into that certain Golf Driving Range Lease Contract for North Lakes Park dated December 10, 2002 (the "Existing Lease"); and WHEREAS, the City and Lessee desire to amend and do hereby amend the Existing Lease to provide for the installation, maintenance and operation of a batting range at North Lakes Park (this "Amendment"); and NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereby agree as follows: The Existing Lease is hereby amended as follows: 1. Section 1 of the Existing Lease is amended by adding the following: "The Leased Premises are hereby expanded to include that portion of the North Lakes Park described in Exhibit "A" attached hereto and made a part hereof by reference (the additional area is called "the "Batting Range Property"). Lessee is entitled to use the Batting Range Property for the purpose of installing, maintaining and operating a baseball and softball batting range as more particularly described in this Lease" 2. Section 4 of the Existing Lease is amended by adding the following: "For use of the Batting Range Property Lessee agrees to pay to the City additional rental payments as are particularly described in Exhibit "B" attached hereto and made a part hereof by reference." 3. Section 7 of the Existing Agreement is amended by adding the following: "Within 30 days after the Effective Date of this Amendment, Lessee shall cause the commencement of construction and installation on the Batting Range Property, of baseball and softball range facilities generally in accordance with a written site design that shall be submitted to the City for approval prior to commencement of construction and installation (the "Site Design"). Construction and installation will be completed on or before April 1, 2005. Prior to commencing construction and installation Lessee shall submit plans and specifications to the Director for approval as provided in this Section 7. Page 1 Notwithstanding any provision to the contrary, the following shall constitute the personal property of the Lessee ("Lessee's Propertf'): a. 6 - Baseball Feed Cabinet b. 6 - Baseball Feed Hose c. 6 - Jugs Pitching Machines d. 6 - Soft-Flex Baseballs (900 per station) e. 6 - Baseball Pitching Machine Cover f. 1 - 9' Baseball Picker g. 1 - Golf Ball Deflector Attachment h. 1 - Baseball Washer i. Baseball Bats & Helmets j. Baseball Mats & Pails Lessee may pledge Lessee's Property as collateral for a loan. So long as Lessee is not in default under this Lease, it may remove Lessee's Property at the expiration of the Lease or any extension thereof. If Lessee fails to remove Lessee's Property within 30 days after such expiration, Lessee's Property at the election of the City will become the property of the City. 4. Sections 10 and 13 of the Existing Lease is amended to add the following: "With regard to the Batting Range Property and operations, Lessee intends to subcontract and/or sublease to a third party, Goin'Yard, Inc. ( the "Sublessee"). The City approves the Sublessee so long as he complies with all terms of this Lease and that Lessee shall remain fully responsible to the City under the Lease for the Batting Range Property and operations." 5. Section 21 of the Existing Lease is amended to add the following: "Lessee shall comply with all insurance requirements of this section for the Batting Range Property and operations." 6. The Existing Lease is amended to add the following Section 27: "27. Batting Range Operations. In addition to all other requirements of this Lease, Lessee shall maintain the following standards of operation for the Batting Range: a. Provide City with a schedule of planned promotions or events to help prevent conflicts with other park activities, b. Provide City with an operational schedule that will allow access to the range for routine maintenance during normal park maintenance hours, c. Seek prior approval from the Director for any sponsor advertising, Page 2 7. All other terms and conditions of the Existing Lease not amended by this Amendment shall remain in full force and effect. In this regard any reference to leased premises or North Range Lakes Driving Range area, or similar language identifying the property subj eot to this Lease, shall also include the Batting Range Property. Signed as of the Effective Date set forth above. CITY OF DENTON, TEXAS BY: Michael A. Conduff City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERB~~ATTORNEY BY: v ~ /~r THE FUNDAMENTALS PROGRAM, INC. Dba ONC,~~e USA ~ j President Page 3 639' :B:O'N'N!;'E :¢ .-. / _ r-~ / Golf Driving'Range Area F Tennis Center )~-.~ ./ Exhibit B Batting Range Schedule of Payments Addendum to Lease Agreement for 2005-21 Schedule of payments is for 9 monthly lease payments in 2005 (April to December) and 12 monthly lease payments per year from 2006-2021. Lessee also agrees to pay City of Denton an additional 5% of monthly gross revenue collected from barfing range from Aug. 1, 2005 - Dec. 31,2006. Monthly lease payment and payment of 5% of monthly gross for the preceding month is due to City of Denton no later than the 5th business day of each month. YEAR NUMBER OF PAYMENTS 2005 4 2005 5 2006 12 AMOUNT OF MONTHLY PAYMENT $200 per month (April-July) $200 per month plus 5% of monthly gross (Aug.-Dec.)* $300 per month plus 5% of monthly gross* *Total amount paid for batting range is not to exceed the scheduled lease payment for the driving range, Payment would be driving range payment + batting range payment = new lease payment. Should the Lease be renewed and extended in accordance with section 2 of the Existing Lease the lease payments for the Batting Range Property will renegotiated at that time. Page 4 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Electric Utility Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of DeNon, Texas authorizing the City Manager to execute an agreemem for Professional Legal Services with the firm of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C. for Legal Services pertaining to Represemation of the City before the Public Utility Commission of Texas, in connection with its Transmission Cost of Service Case; authorizing the expenditure of funds therefor; providing for retroactive effect of the agreemem; and providing an effective date. (The PUB recommends approval 7-0) BACKGROUND In 1996, as a result of action required by the Texas Legislature, the Public Utility Commission of Texas (PUCT) established a statewide transmission system. All electric utilities in Texas (including municipal utilities) were required to pay for transmission they used and recover their investment in transmission they had built through a PUCT dictated methodology. In order to recover Denton Municipal Electric's transmission investment, DME must file its cost data with the PUCT and receive a ruling from the PUCT establishing a DME transmission rate. This filing is referred to as a Transmission Cost of Service (TCOS) filing. DME is also required to file a transmission Earnings Report on June 1 of each year. DME made its first TCOS filing in 1996. On September 20th, 2002, Denton filed with the PUC for its second TCOS. As a result of that filing, DeMon's TCOS annual revenue increased from $768,620 to $995,000 (29%). DME was also allowed to recover the consultant and attorney fees associated with preparation of its filing through a surcharge on its TCOS. Since the 2002 TCOS filing, significam additions have been made to the DME transmission system, in addition, corrections have been made to DME's fixed asset records and project accouming records. R. J. Covington Consulting (RJC) has completed a new TCOS filing package based on the new and corrected data. That package, which requested an annual TCOS revenue increase of $2.9 million, was filed with the PUCT on October 25, 2004. DME has received three Requests for information (RFi's) on the filing from the PUCT staff. The subject contract is to cover the expenses that will be incurred in the legal administration of the filing. $65,000 is the best estimate that can be made at this point in the process. It assumes that the PUCT staff'will be aggressive in their review of the filing, due to the size of the increase requested, but that it will be possible to reach a settlement on the approved increase level rather than progressing to a contested hearing process. If a contested hearing process is required, the cost may go up. if there are fewer questions than anticipated, the cost could be less. It is customary to recover the costs associated with preparing a filing as part of the rate granted by the PUC. Our filing has requested cost recovery of expenses related to preparation and filing of this TCOS case. OPTIONS 1. Approve the proposed contract. 2. Withdraw the TCOS application and forgo the potential additional revenue. RECOMMENDATIONS DME recommends approval of the proposed contract. PRIOR ACTION/REVIEW (Council, Boards, Commission) The subject contract was approved by the Public Utilities Board at its January 10, 2005 meeting by a vote of_ to _ with _ members present. FISCAL INFORMATION Cost not to exceed $65,000. rate. Cost should be recovered through surcharge on approved TCOS EXHIBITS 1. Ordinance 2. Agreement 3. PUB Minutes Respectfully submitted: Sharon Mays Director of Electric Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL LEGAL SERVICES WITH THE FIRM OF LLOYD, GOSSELINK, BLEVINS, ROCHELLE & TOWNSEND, P.C. FOR LEGAL SERVICES PERTAINING TO REPRESENTATION OF THE CITY BEFORE THE PUBLIC UTILITY COMMISSION OF TEXAS, IN CONNECTION WITH ITS TRANSMISSION COST OF SERVICE CASE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING FOR RETROACTIVE EFFECT OF THE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems that it is in the public interest to engage the law firm of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., of Austin, Texas (the "Firm") to provide professional legal services to the City of Denton, Texas ("City") pertaining to representation of the City and Denton Municipal Electric ("DME") before the Public Utility Commission of Texas ("PUC") regarding its electric transmission cost of service rate case; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the above-referenced professional legal services, and that limited City staff cannot adequately perform the specialized services and tasks which are primarily centered in Austin, Texas, with its own personnel; and WHEREAS, the City has heretofore engaged the Firm by numerous previous Agreements for Professional Legal Services to perform similar services to those services provided for in the Agreement for Professional Legal Services attached hereto. Further, that the Firm has performed and provided legal services benefiting the City under the most recent Agreement on a continuous and uninterrupted basis, involving immediate deadlines imposed on litigants by the PUC, in order to safeguard and represent the interests of the City and DME before the PUC. Accordingly, it is appropriate that the new Agreement for Professional Legal Services by and between the City and the Firm attached hereto, should be ratified and confirmed, and should be retroactively approved and made effective as of October 1, 2004, in order to properly compensate the Firm for its work that has already directly benefited the City, and which work was done at the specific instance and request of the City; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act", generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and the Council hereby finds and concludes that the Firm is appropriately qualified under the provisions of that law to be retained as outside legal counsel for the City and DME respecting this engagement; NOW THEREFORE, 1 EXHIBIT 1 THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the recitations set forth and contained in the foregoing preamble are expressly incorporated by reference into this Ordinance. SECTION2: That the City Manager is hereby authorized to execute an Agreement for Professional Legal Services by and between the City and the law firm of Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., of Austin, Texas, in substantially the form of the Agreement for Professional Legal Services attached hereto and incorporated herewith by reference. SECTION 3: That the award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of the Firm and the ability of the Finn to perform the services needed by the City for a fair and reasonable price. SECTION 4: That the expenditure of funds as provided in the attached Agreement for Professional Legal Services is hereby authorized. SECTION 5: That the above and foregoing Agreement for Professional Legal Services is hereby ratified, confirmed, and retroactively approved, and shall be effective from and after October 1, 2004. SECTION6: That except as otherwise provided in Section 5 above, this Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ., 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S:\Our Documents\Ordinances\04\Lloyd Gosselink-PSA-TCOS-PUC 2004-Ord.doc 2 STATE OF TEXAS § COUNTY OF DENTON § AGREEMENT FOR PROFESSIONAL LEGAL SERVICES THIS AGREEMENT, made and entered into this ~ day of , 200 , by and between LLOYD GOSSELINK BLEVINS ROCHELLE & TOWNSEND, P.C., a Texas Professional Corporation, 111 Congress Avenue, Suite 1800, Austin, Texas, 78701 (hereinafter "Consultant" or "Firm"), with Lambeth Townsend, Shareholder, having full authority to execute this Agreement on behalf of the Firm; and the CITY OF DENTON, a Texas Municipal Corporation, 215 E. McKinney, Denton, Texas 75201 (hereinafter "City"), with Michael Conduff, City Manager, having full authority to execute this Agreement on behalf of the City. WITNESSETH: WHEREAS, the City deems it necessary and in the public interest to employ legal counsel to provide professional legal services with respect to protection of the City's interests in its application to change City's rates for wholesale transmission service ("TCOS Rates") to be filed with the Public Utility Commission of Texas ("PUC" or "Commission"); and WHEREAS, the Consultant is willing to perform such services in a professional manner as an independent contractor; and has competently and efficiently performed similar services for the City in City's 1996 application to establish City's TCOS Rates, which was PUC Docket No. 15767, in City's 2002 application to establish City's TCOS Rates, which was PUC Docket No. 26672, and in numerous other matters before the PUC over the past several years; and the City has selected Consultant on the basis of demonstrated competence and qualifications necessary to perform the needed services; and WHEREAS, the City desires to engage the Consultant to render the professional services in cormection therewith, for a fair and reasonable price; consistent with, and for a fee not higher than the recommended practices and fees published by the applicable professional associations; and such fees do not exceed any maximum provided by law; all in accordance with the provisions of Chapter 2254 of the Texas Government Code (the "Professional Services Procurement Act"); and the Consultant is willing to provide such services; NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the City and Consultant do hereby mutually AGREE as follows, to wit: I. Scope of Services: The Consultant shall perform the following services in a professional manner working as an independent contractor not under the direct supervision and control of the City: EXHIBIT 2 A. Services to be provided: Consultant shall represent the City in City's application to change rates for wholesale transmission service before the Public Utility Commission, including without limitation, the professional and legal services attendant to preparing and submitting the application, responding to all discovery relating to the application, and attending all prehearing conferences and settlement negotiations in relationship to the application, and to consult with the City through its Denton Municipal Electric staff with regard to all filings, hearings, appeals, and other issues related to the application, and to assist in any subsequent actions in response to the Commission's final order concerning the application. Based on previous experience, the City and Consultant expect that the application can be resolved by settlement among the parties without a contested case hearing. If a contested case hearing is required, a new agreement for professional services will be required as the compensation in this Agreement does not contemplate a contested case hearing and appeals therefrom. o To consult with the City Manager, the Assistant City Manager for Utilities, the Director of Denton Municipal Electric, the City Attorney, the Assistant City Attorney for Utilities, and/or other designated administrative personnel or staff regarding any and all aspects of the professional services to be performed, including legal research, analysis, and advice with respect to the proceeding concerning City's application to change rates for wholesale transmission service. This will include coordinating activities with the Director of Denton Municipal Electric, the City Attorney, and their respective staff to efficiently perform the services required and to preserve the Attorney/Client privilege, work product, and all other applicable exceptions to the discovery or disclosure of documents produced by the City and the Consultant under the Scope of Services hereinabove. The Consultant shall perform all the services required by this Agreement in a timely fashion, and shall complete them in compliance with schedules established by the City through its Director of Denton Municipal Electric as appropriate to carry out the terms and conditions of this Agreement. II. Term: This Agreement shall be retroactively effective as of October 1, 2004. The Agreement shall terminate either upon the completion of the professional services provided for herein or upon the exhaustion of all professional fees provided for hereunder, whichever event shall first occur. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence of this Agreement. Consultant shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible during the term of this Agreement, and to meet the schedules established by the City, through its Director of Denton Municipal Electric, or her designee. PSA - Denton & Lloyd Gosselink Page 2 HI. Compensation and Method of Payment: The Consultant shall charge the following fees for its professional services provided to the City hereunder, based upon the following hourly billing rates for the attomeys and support staff involved in this matter: Staff Hourly Rate Lambeth Townsend, Shareholder Thomas L. Brocato, Associate Melissa E. Ramirez, Associate Paralegal Law Clerk $ 250.00 $ 210.00 $180.00 $ 90.00 $ 75.00 Consultant agrees that all charges for the legal services hereunder, including expenses as set forth in Section III. C. below, shall not exceed $65,000.00. The Consultant shall endeavor to have the attorneys and employees listed in Section III.A. above, reasonably attempt to reduce costs by utilizing other qualified shareholders, associates, and paralegals wherever feasible or possible. The Consultant shall bill the City through the submission of itemized invoices, statements, and other documentation, together with support data indicating the progress of the work and the services performed on the basis of monthly statements, showing hourly rates indicating who performed the work, what type of work was done, and descriptions and/or details of all services rendered, including a daily, and an entry- by-entry reflection of billable time spent on this engagement, along with specific descriptions and supporting documentation, if available, respecting any reasonable and necessary out-of- pocket expenses incurred by Consultant in performing the professional services provided for under this Agreement. Professional fees shall be billed in minimum one-tenth (1/10) hour increments. Additionally, the City shall either pay directly or reimburse the Consultant, as the case may be, for reasonable and necessary actual out-of-pocket expenses, including but not limited to, long-distance telephone, telecopier, reproduction, postage, overnight courier, and transportation and travel. All copies will be charged at the rate of fifteen cents ($.15) per copy for copies made within Consultant's offices, with as much photocopying as possible being done by outside vendors at bulk rates or by the City to reduce costs if bulk copying is necessary or appropriate. The parties agree that the charges for outgoing telecopies from Consultant shall be $.25 per page and that there will be no charge for incoming telecopies. The parties anticipate that invoices or statements for professional services will be generated on a monthly basis and that said invoices or statements will be sent to the City by Consultant on or about the 15th day of each month. The City shall make payment to the Consultant within thirty (30) days after receipt of an appropriate itemized invoice or statement. To the extent that any fees or expenses are disputed by the City, the City shall notify Consultant within thirty (30) days after its receipt of the invoice or statement, and shall'otherwise pay all undisputed amounts set forth in the invoice or statement within thirty (30) days after its PSA - Denton & Lloyd Gosselink Page 3 receipt of the invoice or statement. All reimbursable expenses, including, but not necessarily limited to travel, lodging, and meals, shall be paid at the actual cost, pursuant to the terms, conditions, and limitations set forth herein. All invoices or statements shall be a reviewed by the Director of Denton Municipal Electric, or her designee; and shall be reviewed and approved by the Assistant City Attorney/Utilities. It is understood and agreed that the Consultant shall work under the coordination and general supervision of the Director of Denton Municipal Electric, or her designee. All notices, invoices, statements, and payments shall be made in writing and may be given by personal delivery or by mail. As to notices: to Michael Conduff, City Manager, City of Denton, 215 East McKinney, Denton, Texas 76201 or to his designee. As to invoices, statements, or payments: to Michael S. Copeland, Assistant City Attorney/Utilities, Utility Administration Department, at the same address, as to the City; and to Lambeth Townsend, Lloyd/Gosselink, 111 Congress Avenue, Suite 1800, Austin, Texas 78701, as to the Consultant. When so addressed, the notice, invoice, statement and/or payment shall be deemed given upon deposit of same in the U. S. Mail, postage prepaid. In all other instances, notices, invoices, statements, and/or payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the responsible person or office to which notices, invoices, statements and/or payments are to be sent, provided reasonable notice is given. IV. Professional Competency: Ao Consultant agrees that in the performance of these professional services, Consultant shall be responsible to the level of competency and shall use the same degree of skill and care presently maintained by other practicing professionals performing the same or similar types of work. For the purpose of this Agreement, the key persons who will be performing most of the work hereunder shall be Lambeth Townsend and Georgia Cramp, Shareholders, and Melissa E. Ramirez, Associate. However, nothing herein shall limit Consultant from using other qualified and competent members of the firm to perform the services required herein if such delegation is reasonably appropriate and properly protects the City's interests. Any agreements, ordinances, notices, instruments, memoranda, reports, letters, and other legal documents prepared or obtained under the terms of this Agreement are instruments of service and the City shall retain ownership and a property interest therein. If this Agreement is terminated at any time for any reason prior to payment to the Consultant for work under this Agreement, all such documents prepared or obtained under the terms of the Agreement shall upon termination be delivered to and become the prope ~rtY of the City upon request and without restriction on their use or further compensation to the Consultant. V. Establishment andMaintenanceofRecords: Full and accurate records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of at least three years after receipt of final payment under this Agreement. PSA - Denton & Lloyd Gosselink Page 4 VI. Audits and Inspection: At any time during normal business hours and upon reasonable notice to the Consultant, there shall be made available to the City all of the Consultant's records with respect to all matters covered by this Agreement. The Consultant shall permit the City to audit, examine, and make excerpts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement. VII. Accomplishment of Project: The Consultant shall commence, carry on, and complete this professional engagement with all practicable dispatch; in a sound, economical and efficient matter; and, in accordance with the provisions hereof and all applicable laws. In accomplishing the project, the Consultant shall take such steps as are appropriate to insure that the work involved is properly coordinated with any related work being carried on by the City. VIII. Indemni~ and Independent Contractor Relationship: Consultant shall perform all services as an independent contractor not under the direct supervision and control of the City. Nothing herein shall be construed as creating a relationship of employer and employee between the parties. The City and Consultant agree to cooperate in the defense of any claims, action, suit, or proceeding of any kind brought by a third party which may result from or directly or indirectly arise from any negligence and/or errors or omissions on the part of the Consultant or from any breach of the Consultant's obligations under this Agreement. In the event of any litigation or claim under this Agreement in which Consultant is joined as a party, Consultant shall provide suitable counsel to defend City and Consultant against such claim, provided the Consultant shall have the fight to proceed with the competent counsel of its own choosing. The Consultant agrees to defend, indemnify and hold harmless the City and all of its officers, agents, servants, and employees against any and all such claims to the extent of coverage by Consultant's professional liability policy. The Consultant agrees to pay all expenses, including but not limited to attorney's fees, and satisfy all judgments that may be incurred or rendered against the Consultant's professional liability insurance policy. Nothing herein constitutes a waiver of any rights or remedies the City may have to pursue under either law or equity, including, without limitation, a cause of action for specific performance or for damages, a loss to the City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. Consultant shall maintain and shall be caused to be in force at all times during the term of this Agreement, a legally binding policy of professional liability insurance, listed by Best Rated Carders, with a rating of "A-" or above, issued by an insurance carrier approved to do business in Texas by the State Insurance Commission. Such coverage shall cover any claim hereunder occasioned by the Consultant's negligent professional act and/or error, act, or omission, in an amount not less than $1,000,000 combined single limit coverage per occurrence. In the event of change or cancellation of the policy by the insurer, the Consultant hereby covenants to immediately notify the City in writing thereof; and in such event, the Consultant shall, prior to the effective date of change or cancellation, serve a substitute policy furnishing the same or higher amount of coverage. The Consultant shall provide a copy of the declarations page of such policy to the City through its Director of Denton Municipal Electric simultaneously with the execution of this Agreement. PSA - Denton & Lloyd Gosselink Page 5 IX. Termination of Agreement: In connection with the work outlined in this Agreement, it is agreed and fully understood by the Consultant that the City may cancel or indefinitely suspend further work hereunder or terminate this Agreement at any time upon written notice to Consultant, Consultant shall cease all work and labor being performed under this Agreement. Consultant may terminate this Agreement by giving the City fifteen (15) days written notice that Consultant is no longer in a position to continue representing the City. Consultant shall invoice the City for all work satisfactorily completed and shall be compensated in accordance with the terms of this Agreement. All reports and other documents, or data, or work related to the project shall become the property of the City upon termination of this Agreement. This Agreement may be terminated in whole or in part, in writing, by either party in the event of substantial failure by the other party to fulfill its obligations under this Agreement through no fault of the terminating party. Provided, however, that no such termination may be affected, unless the other party is given [ 1] written notice (delivered by certified mail, remm receipt request) of intent to terminate, and not less than thirty (30) calendar days to cure the failure; and, [2] an opportunity for consultation with the terminating party prior to termination. Nothing contained herein or elsewhere in this Agreement shall require the City to pay for any work which is unsatisfactory or which is not submitted in compliance with the terms of this Agreement. X. Alternate Dispute Resolution: The Consultant agrees that, if necessary, it will use its best efforts to resolve any disputes regarding the Agreement through the use of mediation or other forms of alternate dispute resolution set forth in Chapter 154 of the Texas Civil Practices and Remedies Code (V.A.T.C.S.). XI. Entire Agreement: This Agreement represents the entire agreement and understanding between the parties and any negotiations, proposals, or oral agreements are intended to be integrated herein and to be superseded by this written Agreement. Any supplement or amendment to this Agreement, in order to be effective, shall be in writing and signed by the City and the Consultant. XII. Compliance with Laws: The Consultant shall comply with all federal, state, local laws, roles, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereafter be amended, including but not limited to the Texas Disciplinary Rules of Professional Conduct. XIII. Governing Law: For the purpose of determining place of agreement and law governing same, this Agreement is entered into in the City and County of Denton, State of Texas, and shall be construed in accordance with, and governed by the laws of the State of Texas. Venue and jurisdiction of any suit or cause of action arising under or in connection with this Agreement shall lie exclusively in a court of competent jurisdiction sitting in Denton County, Texas. PSA - Denton & Lloyd Gosselink Page 6 XIV. Discrimination Prohibited: In performing the services required hereunder, the Consultant shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. XV. Personnel: mo Consultant represents that it has or will secure at its own expense all personnel required to perform the services required under this Agreement. Such personnel shall not be employees nor have any contractual relations with the City. Consultant shall inform the City of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement, in accordance with Consultant's responsibilities under the Texas Disciplinary Rules of Professional Conduct. Bo All services required hereunder will be performed by the Consultant or under its direct supervision. All personnel engaged in work shall be qualified and shall be licensed, authorized, or permitted under state and local laws to perform such services. XVI. Assignabili.ty: The Consultant shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the City thereto. XVII. Severabilitv: All agreements and covenants contained herein are severable, and in the event any of them, with the exception of those contained ha sections headed "Scope of Services", "Independent Contractor Relationship", and "Compensation and Method of Payment" hereof, shall be held to be invalid by any court of competent jurisdiction, this Agreement shall be interpreted as though such invalid agreements or covenants were not contained herein. XVIII. Responsibilities for Claims and Liability: Approval by the City shall not constitute nor be deemed a release of the responsibility and liability of the Consultant for the accuracy and competency of its work; nor shall such approval be deemed to be an assumption of such responsibility of the City for any defect in any report or other documents prepared by the Consultant, its shareholders, associates, employees, officers, or agents in connection with this engagement. XIX. Modification of Agreement: No waiver or modification of this Agreement or of any covenant, condition, or 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 as aforesaid. The parties further agree that the provisions of this article will not be waived as herein set forth. XX. Captions: The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. PSA - Denton & Lloyd Gosselink Page 7 XXI. Binding Effect: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns, where permitted by this Agreement. IN WITNESS HEREOF, the City of Denton, Texas has executed this Agreement in four (4) original counterparts by and through its duly authorized City Manager; and Consultant has executed this Agreement by and through its duly authorized undersigned Shareholder; dated this ~ day of ,200 CITY OF DENTON, TEXAS A Texas Municipal Corporation ATTEST: JENNIFER WALTERS, CITY SECRETARY By: Michael Conduff, City Manager By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: ATTEST: LLOYD GOSSELINK ROCHELLE BLEVINS ROCHELLE & TOWNSEND, P.C. A Texas Professional Corporation By: PSA - Denton & Lloyd Gosselink Page 8 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities The Chair, Charldean Newell, informed the Board that Item # 10 would be discussed after Agenda Item #5. The Board would convene into a Closed session as follows: CONSENT AGENDA: 1) Consider approval of Bid No. 3273 to Montgomery Watson Harza Laboratories for the annual contract for Lab Service for Drinking Water Testing. 2) Consider approval of a Professional Services Agreement with Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., Austin, Texas in an amount not to exceed $65,000 for legal services related to Denton Municipal Electric's (DME) updated Transmission Cost of Service (TCOS) case at the Texas Public Utilities Commission. 3) Consider approval of an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC, Austin, Texas in an amount not to exceed $68,000 for representation of the City electric and water utility interests during the 79th Texas Legislative Session. 4) Consider approval of the purchase of a back-up emergency diesel powered generator for the operation ofwastewater facilities during a loss of power from American Generators, Miami, Florida for an amount not to exceed $47,500. Board Member George Hopkins moved to approve Consent Agenda Items #1-4, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. EXHIBIT 3 Page 1 of 1 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Airport and Transit Operations Jon Fortune, Assistam City Manager SUBJECT Consider adoption of an ordinance approving a commercial operator airport lease agreement between the City of Demon, Texas and GCBSXX, LLC and providing an effective date. The Airport Advisory Board has reviewed and unanimously approved (5-0) the proposed lease agreement. BACKGROUND GCBSXX LLC wishes to lease a parcel of land totaling approximately 34,000 square feet at the Denton Airport. The terms of the lease will obligate GCBSXX, LLC to construct a hangar totaling approximately 10,000 square feet within 720 days. This facility will be constructed for the purpose of commercial and general aviation aircraft storage and aircraft sales. OPTIONS I. Approve the lease as proposed. II. Provide staff direction with additional lease options. RECOMMENDATION The Airport Advisory Board has reviewed and unanimously approved (5-0) the proposed lease agreement. Airport Staff recommends the approval of this lease agreement as proposed. ESTIMATED SCHEDULE OF PROJECT The lease would become effective January 18, 2005 and continue through the 17th day of January 2035 (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. The Airport Advisory Board has reviewed and unanimously approved (5-0) the proposed lease agreement. FISCAL INFORMATION The lease rate for the identified site is $0.17 per square foot per year. The lease rate for the first two years will total $5,780 per year. 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 Respectfully submitted: Mark Nelson Director of Airport and Transit Operations S:\Our Documents\Ordinances\04\GCBSXX Airport Lease. doc ORDINANCE NO. AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND GCBSXX, 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 a airport lease agreement for commercial operator between the City of Denton and GCBSXX, LLC, in substantially the form of the Airport Lease Agreement which is attached to and made a part of this ordinance for ali purposes. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERB~UTY,By: ~'~~ CITY ATTORNEY GCBSXX Airport Lease,doc AIRPORT LEASE AGREEMENT COMMERCIAL OPERATOR This Lease Agreement is made and executed to be effective as of the Eighteenth day of January, 2005 (the "Effective Date") at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and GCBSXX LLC, hereinafter referred to as "Lessee". WITNESSETH: 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. CONDITIONS OF I,EA SE AGRF, F, MF. NT NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION SHALL BE BINDING. A. PI~INCIPLES OF OPERATIONS. The right to conduct aeronautical and related activities for famishing services to the public is granted to Lessee subject to Lessee agreeing: 1. To furnish said services on a fair, equal and not unjustly discrim/natory 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. NON-DISCRIMINATION: Lessee, for itself, its personal representatives, successors, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: 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, religion, 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 all 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. RIG}IT OF INTDIVIDIIAI,~q TO MAINTAIN 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-EXCIll,qlVF. RIGPlT. 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. PIJVll]C ARF~A,q. 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 Govemment 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. The hangar/office/shop complex as currently proposed as provided in Section II.D. does not violate this provision. 5. This Lease Agreement shall be subordinate to the provisions of any existing or GCBSXX Airport Lease.doc Page 2 future agreement between Lessor and the United States or agency thereof, relative to the operation or maintenance of the Airport. II. LEASED PREMISES 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 m, the following described land situated in Denton County, Texas: A. I.AND. A tract of land, being approximately 170 feet by 200 feet or 0.7805 acres, drawn and outlined on Attachment "A", and legally described in Attachment "B" as Parcel 1, 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 then 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. IMPROVEMENTS PROVIDED ElY LESSOR: NONE: improvements provided by Lessor, except as set forth in Article II.E. below. There will be no "Access to Utilities" 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. 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. D.~ IMPROVF. MF. NTS PROVIDED BY LESSEE. On the Leased Premises, Lessee shall construct a hangar not less than 10,000 square feet with taxiway access and appropriate culverts or drainage as required by City ordinances in the utility right of way south and north of the proposed developments as well as other knprovements as determined necessary by City ordinances. GCBSXX Airport Lease,doc- Page 3 Lessee shall also construct 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 above described improvements to be constructed by Lessee are called the "Lessee's Improvements"). Construction of Lessee's Improvements shall be commenced no later than 270 days and completed no later than 720 days after the Effective Date (the "Construction Period"). Construction of Lessee's Improvements are considered conunenced upon issuance of a building permit and construction of any portion of the hangar/office/shop complex. Construction of Lessee's Improvements are considered complete upon the issuance of a Certificate of Occupancy for the entire hangar/office/shop complex, drainage and utility improvements are completed. 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. E. EASEMENTS. Lessor and Lessee by mutual agreement may establish, on the Leased Premises, easements for public access on roads and taxiways. F. ACCESS TO l YTII,IT1F.q. Lessor represents that there are water, sewer and 3- phase electricity lines within close proximity 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. III. T_F_.,R3d The term of this I_ease Agreement shall be for a period of thi_rt~ (30) years, com- mencing on the 18th day of January, 2005 and continuing through the 17 day of January of 2035, unless earlier terminated under the provisions of the Lease Agreement (the "Lease Term"). Lessee has the option to renew for two (2) additional ten (10) year terms. In order to exercise the first option Lessee must provide written notice to Lessor of its intent to exercise the first 10 year option no later than 180 day before the expiration of the 30 year primary tenn. To exercise the second option such written notice must be provided no later than 180 days before the expiration of the first 10 year option term. The rental and terms to be negotiated for the option terms shall be reasonable and consistent with the then value, rentals and terms of similar property on the Airport. GCBSXX Airport Lease.doc- P&~e 4 IV. PAYMENTS: RENTALS A'KFF) FF.F.,q Lessee covenants and agrees to pay Lessor, as consideration for this Lease Agreement, the following payments, rentals and fees: A. LAND AND RFNTAL_ Shall be due and payable to Lessor in the sum of $0.17 per square foot or $5,780.00 per year (the "Original Rent"), payable in twelve (12) equal monthly installments in the sum of four-hundred and eighty-one dollars ($481.66) in advance, on or before the 1 st 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. Notwithstanding the foregoing, the annual rental will be reduced by the current lease rate per square foot, as adjusted by the CPI-U referenced in Section 1V.C., times the number of square feet comprising all easements established in accordance with Article II (D). B. LF~SSOR IMPROVEMENTS RENTAI.S. NONE: improvements on the Leased Premises. There are no Lessor C. PAY1MF. NT; PENAl ~TY; AD.II JSTMENTS. Ail payments due Lessor from 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 mount 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-Fort Worth Bureau of Labor Statistics bears to the previous odd month 2004 index (September), which was 170_0 (1982-84 = 100). Each rental adjustment, if any, shall occur on the tst day of January, beg/nning 2007, and every other year thereaiter 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 GCBSXX Airport Lease,doc Page 5 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 applicable 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 purchasing 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. RIGHTS AND OFIi JGATIC~NS OF I,F. SSEF. A. USE OF LEASED PREMISES. Lessee is granted the non-exclusive privilege to engage in owner/operator activities providing the following aviation services: Hangar and Office Space I .easing, Lessee is granted the non-exclusive right to rent hangar and office space. 2. General Aircraft Maintenance. Lessee is granted the non-exclusive right to conduct airframe and power plant maintenance services. Aircraft Management Services_ Lessee is granted the fight to manage aircraft and flight operations for third parties. 4. Aircraft Sales and grokerage. Lessee is granted the non-exclusive right to engage in the sale and/or brokering of aircraft. 5. Tie-Down Service.q. Lessee is granted the non-exclusive fight to charge for tie- down 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. Except as specifically authorized in this Lease Agreement, no person, business or corporation may operate a commercial, retail or industrial business upon the Leased GCBSXX Airport Lease.doc Page 6 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..qTANDARDS_ Lessee shall meet or exceed the following standards: Address. Lessee shall file with the Airport Manager and keep current its mailing addresses, telephone numbers and contacts where it can be reached in an emergency. 2. liqt. Lessee shall file with the Airport Manager and keep current a list of its tenants and sublessees. Conduct Lessee shall contractually require its employees and sublessees (and sublessee's invitees) to abide by the terms of tlfis Lease Agreement. Lessee shall promptly enforce its contractual rights in the event of a default of such covenants. o IIt/lities: Taxes and Fees_ 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. l,aw.q. Lessee shall comply with all current and future 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. Maintenance 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 fi.om 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 Ruilding.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) located on the Leased Premises be repainted. The Lessor may require Lessee GCBSXX Airport Lease.doc- Page 7 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 with/n 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. Unauthorized use of l.ea~qed Premises. 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. Dwellinga. 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. Lessee may have a pilot lounge, including restroom and shower facilities for use by flight crew and passengers. 10. Quit Po~t~iorl. 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 all 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, GCBSXX Airport Lease.doc- Page 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 from all premise defects or conditions. TI-IF. I.ESSOR AND THE I,F.S,qF.F. EXPRF.SSI.Y INTF.ND THLq 1NDF.MNITYPROV[qlON TO REQIIIRF. I,F.SSF. F, TO 1-NIDEMN1FY AND PROTF, CT THE LF.SSOR FROM THE. CONSF.QIIF.NCF, S OF THE I,F.,qSOR'S OWN NF.GIIGENCF, WHII.F. LF.SSOR IS PARTICIPATING IN THIS IJF.ASE AGRF~F.MF, NT WHF.RF. THAT NF.GI,IGF.NCF. IS A CONCI~RR1NG CAILqF. OF THE. INJI~RY: DF.ATH; OR DAMAGE. NOTWITHSTANDING TH~ TF.RMS OF THE. PRE.CE.DING SF.NTF.NCF.S: THIS INDF.MNITY PROVISION DOF.S NOT APPI,Y TO ANY CI,AIM> l.ID~q,q; DAMAGF.: CAIISF~ OF ACTION. SUIT AND IJARIIJTY WHF.RF. THE. INJIIRY: DF.ATI4; OR DAMAGF. RFSIH,TS FROM THE, SOI,F. NEGIJGF~NCF. OF TI-IF. I,F.S~qOR OR ANY OF ITS F.MPI,OYEF.S~ CONTRACTORS: OR AGF.NTS: IINMIXF.D WITH TI-IF. FAIII,T OF ANY OTHER PF.RSON 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. Haz. ardous 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, role or aeronautical GCBSXX Airport Lease.doc- Paqe 9 regulation being violated. Should Lessee, Lessee's agent, or the person(s) responsible for the violation(s) fail to cease and desist fi.om 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 Lease Agreement. C. SlGN.q~ 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 from 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. Lessee shall be permitted the right to place two wall signs, no greater than thirty-two square feet each, identifying the commercial hangar operation. All signage shall comply with all applicable ordinances including the City of Denton sign ordinance." D. ENTRY. Lessor and its designees shall have the fight 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. COVENANTS BY I~E,qgOR Lessor hereby agrees as follows: A. PEACEFI Il J ENJOYMI~,N.T. 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. CIDMPIJANCE. Lessor warrants and represents that in the establishment, construction and operation of the Airport, that Lessor has heretofore and at this time is GCBSXX Airport Lease.doc- Paqe 10 complying with all existing rules, regulations, and criteria distributed by the Federal Aviation Administration, or any other governmental authority relating to and including, but not limited to, noise abatement, air 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. VII. SPECIAL 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. RITNWAYS AND TAX1WAY.q. Because of the present thirty thousand (30,000) pound continuous use weight bearing capacity of the taxiway, 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 liability for any damages to the Airport that might result. VIII. LEASEHOLD IMPROVEMENTS A. REQII1REMENT~q: 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; GCBSXX Airport Lease.doc- Page 11 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 alt parties for all purposes of this Lease Agreement. No later than 30 days after completion of the Lease Improvements, Lessee shall 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 Improvements"). B. ADDITIONAL CONSTRIJCTION OR IMPROVEMENTS: 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. OWNERSH1POFIMPROVEMFNTq: 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 lquilding~, No building or permanent fixture may be removed from the Leased Premises. gasumplio, a, The Lease Improvements shall automatically become the property of Lessor absolutely free, without any cost to Lessor, at the end of the Lease Term, or any extension thereof. o Failure to Complete l.exsee'~q lmprovement.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.D. of this Lease Agreement. Cancellation nr Termination. Should this Lease Agreement be canceled 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 GCBSXX Airport Lease.doc- Page 12 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, or should such separate valuation be older than two years, 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%. However, if Lessee provides written notice to Lessor within said 30 day cure period that it is impossible to cure such default within said time period, then the Lessor may consent to an extension of such time to cure, which consent will not be unreasonably withheld. tX. SUBROGATION OF MORTGAGEE 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 Term. It 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. RIG}IT OF EASEMENT 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. Construction in or at the easement shall be completed within a reasonable time. XI. AgSIGNMENT OF I,EASE Lessee expressly covenants that it will not assign this Lease Agreement, convey more GCBSXX Airport Lease.doc- Pa~e 13 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 tie-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 assiglunent, 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. XI[. INSI IR ANCE A. REQUIRED INISIIRANCE: 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: 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 coveting 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. 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. ADDITIONAl. COVFR AGF..q: In addition to the above referenced coverages, the following insurance is required if the activity or exposure exists or is contemplated: 1. Aircraft Fuel/Oil Storage and Dispensing - Comprehensive Commercial (Public) General Liability shall include coverage or separate coverage shall be provided for GCBSXX Airport Lease.doc- Page i4 Environmental Impairment Liability. Aircraft Sales or Aircraft Charter and Air Taxi - Aircraft Liability in the mount of $1,000,000 per occun'ence to include Hull Coverage and Liability. In addition, Passenger Liability in an mount of $100,000 per person (per passenger seat) shall be provided. Aircraft Rental or Flight Training - Aircraft Liability in the mount of $1,000,000 per occurrence to include Hull Coverage and Liability, Passenger Liability in the amount of $100,000 per person (per passenger seat) and Student/Renter Liability covering all users in the amount of $500,000 per occurrence. Specialized Commercial Fly/ng (including crop dusting, seeding, and spraying, banner towing and aerial advertising, aerial photography and surveying, fire 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. Aircraft Storage, Maintenance and/or Repair - Aircraft Liability in the amount of $1,000,000 per occurrence to include Hull Coverage and Liability. In addition, Hanger Keepers Liability in the amount of $500,000 per occurrence shall be provided. The requirement for Hangar Keepers Liability shall not apply to individual owner/operators whose primary use of the hangar space is the storage of their own aircraft. The requ/rement does not apply to such individuals notwithstanding the fact that they may, from time to time, permit the storage of non-owned aircraft in the hangar space and charge a fee for the storage of such aircraft so long as such use is in the nature of a rent-sharing agreement rather than a commercial aircraft storage business. C. COVERAGE RF. QI IIREMENTS: All insurance coverages shall comply with the following requirements: All 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. GCBSXX Airport Lease.doc- Page 25 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 fi-om 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 reqnired 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 I,ATION BY I.F. SgOR 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 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. However, if Lessee provides written notice to Lessor within said 30 day cure period that it is impossible to cure such default within said time period, then the Lessor may consent to an extension of such time to cure, which consent will not be unreasonably withheld. In the event of default, Lessor has the right to purchase any or all of the Lease Improvements under the provisions of Section VIII.C.4. hereof. XIV. CANICF~TJ.ATION ElY T.F~s~qF~E 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 GCBSXX Airport Lease.doc- Page 16 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, rule 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. Should Lessor close the Airport and relocate the Airport to another location during the primary term of this Lease Agreement, Lessee shall have the right to relocate its facilities to the new airport at a suitable location under the same or similar terms of this Lease Agreement. The cost of relocation of Lessee's facilities will be shared by Lessor and Lessee in proportion to the number of years remaining on the primary term of this Lease Agreement. In this regard Lessor will be responsible for 1/30 of the such costs for every year remaining on the primary term. XV. MISCEIJ.ANF. OUS PROVISIONS A. ENTIRE AGREEMENT. This Lease Agreement constitutes the entire understanding between the parties and as of/ts Effective Date supersedes all prior or independent Agreements between the parties coveting the subject matter hereof. Any change or modification hereof shall be in writing signed by both parties. B. IqlNDING 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. SEVER AIRILITY~ Ifa 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 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: GCBSXX Airport Lease.doc- Page 17 City Manager City of Denton 215 E. McKinney Street Denton, Texas 76201 Fax No.940.349.8596 2. If to Lessee, addressed to: Mr. Finley Ledbetter, Managing Partner Mr. Ray Kinney, Partner Mr. David Shulman, Partner Mr. John O'Neill, Partner GCBSXX LLC 3820 Granada Trail Denton, Texas 76205 Phone: 940-390-5505 E. HEADINGS. The headings convenience of reference only and do provision of this Agreement. used in this Lease Agreement are intended for not define or limit the scope or meaning of any F. GOVERNING I JAW AND VENUE. 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. I. FORCE MAJEIIRE. None of the Parties shall be in default or otherwise liable for any delay in or failure of performance under this Lease Agreement if such delay or failure arises by any reason beyond their reasonable control, including any act of God, any acts of the common enemy or terrorism, the elements, earthquakes, floods, fires, epidemics, riots, failures or delay in transportation or commun/cations. However, lack of funds shall not be deemed to be a reason beyond a Party's reasonable control. The Parties will promptly inform and consult with each other as to any of the above causes, which in their judgment may or could be the cause of a delay in the performance of this Lease Agreement. GCBSXX Airport Lease.doc- Page 18 1N WITNESS WHEREOF, the parties have executed this Lease Agreement as of the Effective Date first above written. CITY OF DENTON, TEXAS, LESSOR BY: MICHAEL A. CONDUFF, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: GCBSXX LLC M3n~AGING PARTNER GCBSXX Airport Lease.doc- Page 19 ACKNOWLEDGMENTS THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the __ Michael A. Conduff, municipality. day of ,2005, by City Manager of the City of Denton, Texas, on behalf of said NOTARY PUBLIC, STATE OF TEXAS THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ,3 day of ,~0a'llkO. rq. ,200.5 by Finley Ledbetter, Managing Partner, GCBSXX LLC, a Texas corporation, on behalf of said corporation. NOTARY PUBLIC, STATE OF TEXAS GCBSXX Airport Lease,doc- Page 20 Attachment A- Ledbetter- Pr',:k~,~ line Pro~f'~ Line Pn:~:~'~ Line P~ ~ P~a~ ~ D~ .1~. 5' S[d~lk ~ Pa~ng ~ ~ p~ ~ [ C~ ~er P~a~ D~ ~ Pa~ng ~ ~ pm~ Line ~ 4' ~ ~ ~a'~ ~" ; ......... Bar Di~ ~ ' Bar ~ Spar%an Drive Spartan Ddve Contractor. Henry Rife Construction Inc. · P.O. Box 2936 Denton, TX 76202 (940) 243-1141 Project Ledbetter Hangar Lot 141 Denton Airport, Denton,.TX AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Engineering Jon Fortune, Assistant City Manager SUBJECT Consider adoption of an ordinance of the City of DeNon abandoning and vacating an eight foot wide utility easement affecting Block 34R, Lots 1 & 2, and Block 29, Lots 4,5,22 & 23 of the Preserve at Pecan Creek, Section A3, an addition to the City of Denton, Texas, according to the plat thereof, recorded in Cabinet V, Slide 279 of the Plat Records of DeNon County, Texas and providing for an effective date. BACKGROUND The currem property owner has requested that the City of DeNon abandon its utility easemem interests. Staff research of the records and field inspection indicate that no public facilities such as utilities were installed in the subject tracts as part of the original development. The easements were originally dedicated during the time of formal platting activity for the subdivision, in order to provide circuit runs for street lighting. During the installation of electric facilities for the subdivision, an alternative, more cost-effective, route for energizing the street lights was developed, thus eliminating the need for the subject easement tracts. The applicant wishes to remove the subject easement encumbrances to give more flexibility in developing the residemial lots, thus the improving marketability of those affected lots. Staff performs an analysis on requests easement abandonment as follows: · Is the property tract requested for abandonmem considered "excess right-of-way"? · Does the property tract requested for abandonmem have a cominued public use? · Is it in the best interest of the general public to abandon the government's rights in the subject abandonment tract? · Would the granting of this request establish a precedent for right-of-way abandonment for future requests? Staff findings on this analysis are as follows: 1. The right-of-way tracts requested fit the criteria of excess right-of-way. Excess right-of-way is defined as: Property acquired or used by the City for right-of-way and subsequemly declared excess (not needed for the Project, road or streetscape). 2. There were no public facilities installed in any of the proposed abandonment tracts; therefore there is no cominued public use. 3. Abandonmem is in the public imerest because the areas for subject abandonmem no longer have a compelling future public use. The required utility infrastructure for the developmem has been constructed and there are no future connectivity or extension needs. 4. This abandonment would not set a precedent because the above three standards have been met. OPTIONS 1. Approve the ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED PROJECT SCHEDULE Spring 2005 PRIOR ACTION/REVIEW Development Review Staff FISCAL INFORMATION Initial application fee of $150.00 ATTACHMENTS > Location map > Draft ordinance Prepared by: Paul Williamson Real Estate & Capital Support Manager Respectfully submitted: Kelly Carpenter, Director Planning Department N Location Map ORDINANCE NO. AN ORDINANCE ABANDONING AND VACATING AN EIGHT FOOT WDE UTILITY EASEMENT AFFECTING BLOCK 34R, LOTS 1 8, 2, AND BLOCK 29, LOTS 4, 5, 22, & 23 OF THE PRESERVE AT PECAN CREEK, SECTION A3, AN ADDITION TO THE CITY OF DENTON, TEXAS, ACCORDING TO THE PLAT THEREOF, RECORDED IN CABINET V, SLDE 279 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND PROVDING FOR AN EFFECTIVE DATE; WHEREAS, the City of Denton has received a request for the abandonment of a certain utility easement, and WHEREAS, the Development Review Committee of the City of Denton, Texas reviewed the requested abandonment and recommended approval, and WHEREAS, the Council of the City of Denton, Texas has determined that the utility easement being abandoned and vacated is no longer needed for public use, and WHEREAS, this is abandonment is to the underlying fee owners so that Chapter 272 of the Texas Local Government Code does not require that the City receive fair market value for the abandonment, NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1. The recitations and findings contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. An 8 foot wide utility easement affecting Block 34R, Lots 1 & 2, and Block 29, Lots 4, 5, 22 & 23 of The Preserve at Pecan Creek, Section A3, an addition to the City of Denton, Texas, according to the plat thereof recorded in Cabinet V, Slide 279 of the Plat Records of the Denton County, Texas (the "Easement"), is permanently vacated, abandoned, and extinguished as a public easement. This abandonment ordinance only abandons the 8-foot wide utility easement. There are other easements affecting some of these lots that are not abandoned by this ordinance. SECTION 3. By reason of such abandonment and vacation the City of Denton's property interest in the Easement shall, by operation of law, revert to the owners abutting the Easement herein abandoned, and the City of Denton releases any and all claims to the use of the abandoned and vacated property as a public easement. A certified copy of this ordinance may be recorded in the Real Property Records of Denton County, Texas to evidence this abandonment. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the __ day of ,2005. Page 1 EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: By:HERBERT~~'~'~L' C7 ATTORNEY Page 2 EXHIBIT "A" LEGAL DESCRIPTION FOR THE ABANDONMENT OF A PUBLIC UTILITY EASEMENT COMMENCING at the Southwest comer of Lot 2, Block 34R, Thc Preserve at Pecan Creek, Section A3, an addition to the City of Denton, Denton County, Texas, according to the plat filed for record in Cabinet "V", Slide 279, of thc Plat Records of Denton County, Texas, and being on the North right-of-way line of Moor Hen Drive, a 50-foot fight-of-way; THENCE North 02 degrees 22 minutes 57 seconds East, along the common linc between Lots 1 and 2 of said Block 34R, a distance of 5.00 feet, to the POINT OF BEGINNING for the herein described tract; THENCE North 87 degrees 37 minutes 03 seconds West, along a line 5.00 feet from and parallel with the North right-of-way tine of said Moor Hen Drive, a distance of 4.00 feet, to a point for comer; THENCE North 02 degrees 22 minutes 57 seconds East, along a linc 4.00 feet from and parallel with the West line of said Lot 2, at a distance of 102.73 feet, to a point for comer on the South line of a 5-foot Utility Easement as shown on the aforementioned Preserve at Pecan Creek addition; THENCE South 86 degrees 52 minutes 17 seconds East, along the South tine of said 5-foot Utility Easement, a distance of 8.00 feet, to a point for comer; THENCE South 02 degrees 22 minutes 57 seconds West, along a line 4.00 feet from and parallel with the West tine of said Lot 2, Black 34R, a distance of I02.62 feet, to a point for comer; THENCE North 87 degrees 37 minutes 03 seconds West, a distance of 4.00 feet, to the POINT OF BEGINNING, and containing 0.0 t 9 acre (821 square feet) of land. See attached Exhibit "B" dated March 11, 2004 Murel W. Miller Date: 03-11-04 Registered Professional Land SurveyOr No. 5438 State of Texas .EXHIBIT B UTILITY EASEMENT ABANDONMENT BEING A PORTION OF LOTS 1 & 2, BLOCK 34R THE PRESERVE AT PECAN CREEK, SECTION A3, AN ADDITION TO THE CITY OF DENTON, DENTON COUNTY, TEXAS. BLOCK JJR F--5' u.£. JCob. V, S~ide 279, C.f. 5 6 BEARING ,~ DISTANCE TABLE L2 L3 POC. KRU$ PAGE ROAD cent,rJine--~ /-~ (variable width right-of-way) NO2'22'57"E 5.00' N87'37'O,3"W 4. $8,6'52'17"E ,9. N87'.37'OJ"W 4. 00' ' r cob. v, Slide 279, P,R.D.C,T. I/Cob. V, Slide -- MOOR HEN DRI~ ~Poln~; o~' N 8'7'37'03" W Co~menc/n9 ~.~ 7 8 BLOCK ,.71 THE PRESERt, E AT PECAN CREEK, SECTION ,43 I). THE BEARING BASTS FOR THIS; EXHIBIT IS THE NORTH RIGHT-OF-WAY LINE OF MARSH RAIL DRIVe, AS SHOIffV ON THE PLA T OF' THE PRESERVE AT PECAN CREEK, SECTION AJ, ACCORDING TO THE PLAT FILE FOR RECORD IN CABINET "V*', SLIDE 279, P,R.O.C.T. (BEING ,9 CAB.- CABINE~' PG. - PAGE U.E - UTILITY EASEMENT LR.F. - IRON ROD FOUND P.O.B. - POINT OF BEGINNING D.R. EC.T. - DEED RECORD5 OF DENTON COUNTY, TEXAS P.R.T.C.T. - PLAT RECORDS OF DENTON COUNTY, TEXAS 2). SEE EASEMENT DESCRIPTION ON EXHIBIT A, DATED MARCH 11, 2004. SURVEYOR'S CERllFICAUON I, ldurel W. Miller, Registered Professional Land Surveyor, hereby state that the sole purpose for thrs exhibit was for the abandonment of an existing util|t¥ easement in The Preserve at Pecan Creek Section g~ filed for record in Cablnet V, Slide 279, P.R.D.C.T. ~el V~. Miller Date: March 11. 2004 Registered Professional Land Surveyor No. 5438 State of Texas mlmla mycoskie+mcinnis+associates 200 east abram arlington, texas 76D10 817-469-1671 fax; 817-274-8757 SHEET I OF 1 J,~._ C~ ~Y: 14W, M. ~ I¢0,: 2082-0-1 EXHIBIT "C" LEGAL DESCRIPTION FOR THE ABANDONMENT OF A PUBLIC UTILITY EASEMENT COMMENCING at the Northwest comer of Lot 5, Block 29, The Preserve at Pecan Creek, Section A3, an addition to the City of Denton, Denton County, Texas, according to the plat filed for record in Cabinet "V", Slide 279, of the Plat Records of Denton County, Texas, and being on the South fight-of-way line of Marsh Rail Drive, a 50-foot fight-of-way; THENCE South 02 degrees 22 minutes 57 seconds West, along the common tine between Lots 4 and 5, of said Block 29, a distance of 5.00 feet, to thc POINT OF BEGINNING for the herein described tract; THENCE South 87 degrees 37 minutes 03 seconds East (Bearing Basis), along a line 5.00 feet from and parallel with the South right-of-way tine of said Marsh Rail Drive, a distance of 4.00 feet, to a point for comer; THENCE South 02 degrees 22 minutes 57 seconds West, along a line 4.00 feet from and parallel with the West line of said Lot 5, at a distance of 105 feet passing the South tine of said Lot 5, and continuing in all a total distance of 2t0.00 feet to a point for comer on the North line ora 5-foot Utility Easement as shown on thc aforementioned Preserve at Pecan Creek addition; THENCE North 87 degrees 37 minutes 03 seconds West, along the North line of said 5-foot Utility Easement, a distance of 8.00 feet to a point for comer; THENCE North 02 degrees 22 minutes 57 seconds East, along a line 4.00 feet from and parallel with the West line of Lot 22, of said Block 29, at a distance of 105 feet passing the South line of said Lot 4, and continuing in all a total distance of 210.00 feet to a point for comer; THENCE South 87 degrees 37 minutes 03 seconds East, a distance of 4.00 feet, to the POINT OF BEGINNING, and containing 0.039 acre (1,680 square feet) of land. See attached Exhibit "B" dated March 11, 2004 MureI W. Miller Date: 03-11-04 Registered Professional Land Surveyor No. 5438 State of Texas EXHIBIT "D' UTILITY EASEMENT ABANDONMENT BEING A PORTION OF LOTS 4, 5, LOTS 22, 23, BLOCK 29 THE PRESERVE AT PECAN CREEK, SECTION A3, AN ADDITION TO THE CITY OF DENTON, DENTON COUNTY, TEXAS. 16 MARSH RAIL -' '-~-~' ~of---~) ~o/n~ o~~ -- D~ _ ~5' U.E. ~LI ./Cob. V, SJide 279. 0.039 A~ES m ~ 8' ~.E. 0.680 S~ARE ~r)~ ~J c~. v Sl~ ~ BEARING · DISTANCE TAB~ 2 j 5 6 L2 S87'JT'OJ'E 4. 00' ! ~ ]~[ r tJ NBZ'J7'OJ'W & 00' m~ P~ ~r I ~ I ~1 ~ ~ ' ~.~.o.c.~ I ~ I ~ I ~ ~ -- ~ .~. - PAGE ~ m t.R.K - IRON ROD FOUND P.O.B, - POINT OF BEGINNING ~5' U.E, ' ~8' U,E. ' DENTON-COUN~ Cob. V Side 27~ ~ Cob. V, Slide 279, .'~ P R D C.T, GO~ENROD D~ ~' u.c (50' Right-of-way) ~ N 87'37'03" W NO TES I). THE BEARING BASIS FOR THIS EXHIBIT I.E. THE NORTH RIGHT-OF-WAY LINE OF MARSH RAIL OR/lIE, AS SHOFdV ON THE PLAT OF THE PRESERVE AT PECAN CREEK, SECTION AS, ACCORDING TO THE PLAT FILE FOR RECORD tN CABINET 'V"'. SUDE 279, P.R.D.C.T. (BEING N87'57'O$~W) 2). SEE EASEMENT DESCRIPTION ON EXHIBIT A, DATED MARCH II, 2004. SURVEYOR'S CERTIFICATION I, Mural W. MiIler, Registered Professional Lend Surveyor, hereby state that the sole purpose for this exhibit was for the abandonment of on exrsting utility easement in 'lhe Preserve at Pecan Creek Section n~ filed for record in Cabinet V, Slide 279, P,R.D.C.T. Mural W. Millet Date: Match 1~, 2~4 Registered Professional Land Surveyor NO, 5438 State of Texas mlmla mycoskie +mcinnis+associates cml en§ineerin0 $~JrVe~rtg lamtscape archilec~u~e planning 200 east abram orllngton, {exas 76010 817-469-1671 fox: 817-274-8757 uti CHECk) BY: .~.~M. JO~. ~0.: 2~92-0-m SHEET I OF I AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Electric Utilities Howard Martin, Utilities 349-8232 SUBJECT Consider approval of an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC for representation of electric and water utility interests during the 79~h Texas Legislative Session. (The PUB recommends approval 7-0) BACKGROUND There are many areas of importance to our utilities that are influenced by the Texas Legislature. We have found, from our experience during the last four legislative sessions, that our ability to operate successfully and economically can easily be harmed by legislative action unless we monitor its activity carefully and are prepared to actively intervene to protect our interests. The 79~h Texas Legislative Session is expected to be an active one in both the water and electric areas. Water areas expected to require attention are: · Issues related to the implementation of SB2. · Issues related to water conservation. · Water rights permitting, particularly as it relates to water reuse and environmental return flows. Electric areas expected to require attention are: · implementation of a new wholesale market design based on locational marginal pricing theory (often referred to as LMP or a "nodal" design), which could significantly increase the price to consumers of electricity in the DFW area over those same costs in other areas of the state. · Efforts to extend the university discount beyond 2007 or to expand its applicability to other entities. · imposition of limits on a municipal utility's ability to utilize its facilities to support new technologies such as delivery of broadband services over electric distribution lines. · imposition of limits on a municipal utility's ability to charge for such things as attachments to its poles by other utilities. · Attempts to weaken the ability of municipal utilities to maintain the confidentiality of issues such as the terms of individual wholesale power purchase contracts. Although all the issues listed for the electric area are importam, the wholesale market redesign issue is the most problematic. DME and its consultants have worked diligently for the last year and a half with the market stakeholder process that was set up to develop a new wholesale market design. Those efforts have met with limited success. The new PUC Commissioners seem more willing to consider all sides of the issues presented to them than their predecessors. It has been possible to get some support within the stakeholder wholesale market design process for including accommodations that could reduce the risks to the DFW. However, every time those expressing concerns about the "Texas Nodal Team (TNT)" proposals have begun to gain some momentum for their positions, the well-organized and well-funded coalition that strongly supports the TNT market design rallies and eliminates most progress that has been made. This same coalition has been actively lobbying both the PUC Commissioners and legislators for support. If DFW and small retail consumers are to be protected, it is necessary for all those working on their behalf to work aggressively to gain legislative support for their position. Mr. Boyle represented DME during the 75th, 76th, and 77th Legislative sessions and represented both DME and the water utility during the 78th Legislative session. He has now included Monty Akers (formerly legislative represemative for TML) to as part of the support he provides. That team has been working on DME's behalf during 2004 to educate the staff members of key Legislators on the "nodal" issue. During the 79th Texas Legislative Session, Mr. Boyle and Mr. Akers will work both independemly on behalf of DeMon's electric and water utilities and in conjunction with both utility's technical consultams, professional organizations such as TPPA and TML, other experts on utility matters and other cities with similar interests. They will provide the daily presence in Austin required to discuss issues with staff members and key players that is needed to learn about behind the scenes maneuvering in time to influence it. This type of work takes a large amount of time. Utilization of professionals located in Austin, supplememed by carefully planned visits from City staff and elected officials, is the most efficient way to protect our interests. Mr. Boyle provides an unusual form of legislative represemation. Most individuals offering this service simply take legislation and back-up data prepared by their cliems and use their connections to present it to the appropriate legislators. Mr. Boyle drafts legislation, does legal research in support of positions, and prepares background material as well as providing emrde to the appropriate legislators. He is also very good at finding other entities who have similar interests and forming coalitions to get things done. His fees for these expanded services are lower than most individuals in this business. OPTIONS 1. Approve the contract as proposed. 2. Approve legislative representation for either DME or Water but not for both utilities. 3. Do not approve any form of legislative representation for the electric and water utilities. RECOMMENDATION Both DME and the Water Utility feel it is critically important that we are prepared to protect the City's interests as they relate to each utility by having a daily presence in Austin during the 78th Legislative Session. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This contract was approved by the Public Utilities Board at its January 10, 2005 meeting by a vote of 7 to 0 with 7 members present. FISCAL INFORMATION The cost of these services is $13,000 per month, for five months for a total not to exceed amount of $68,000. This fee will be split between the electric and water utilities based on the level of service provided to each utility. EXHIBITS 1. Ordinance 2. Agreement 3. PUB Minutes Respectfully submitted, Sharon Mays Director of Electric Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL LEGAL SERVICES WITH THE LAW OFFICES OF JIM BOYLE, PLLC. FOR PROFESSIONAL LEGAL AND LOBBYING SERVICES RELATED TO THE 79TM TEXAS LEGISLATIVE SESSION. PERTAINING TO THE CITY OF DENTON, TEXAS/DENTON MUNICIPAL ELECTRIC; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIIDING FOR RETROACTIVE EFFECT AND APPROVAL OF THE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it necessary and appropriate and in the public imerest to engage the Law Offices of Jim Boyle, PLLC ("Boyle"), of Austin, Texas, to provide professional legal services and lobbying services pertaining to represemation of the City of DeNon, Texas ("City") and its municipal electric utility, DeNon Municipal Electric ("DME") during the 79th Texas Legislative Session; and WHEREAS, the City has previously retained and engaged the professional legal services of Boyle on numerous occasions in the last nine (9) years, and has operated under numerous other Agreemems For Professional Legal Services, approved by the City Council, and signed by the City Manager, regarding legislative issues and lobbying services; DeNon Municipal Electric issues at the PUC and in the courts; and other engagements which have demonstrated Boyle's considerable expertise of relevam issues concerning the City as well as DME; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the hereinabove described professional services by DeNon Municipal Electric, and that limited City staff cannot adequately perform the specialized legal and lobbying services and tasks, which are wholly centered in Austin, Texas, with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act," generally provides that a city may not select a provider of professional services on the basis of competitive bids, but must select the provider of professional services on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and the City Council hereby finds and concludes that Boyle is appropriately qualified under the provisions of the law, to be retained as outside legal and lobbying counsel for the City and for DeNon Municipal Electric, respecting this engagemem; and WHEREAS, the City Council has provided in the City budget for the appropriation of funds to be used for the procuremem of the foregoing professional legal services, as set forth in the Agreement for Professional Legal Services; 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. EXHIBIT 1 SECTION 2: That the City Manager is hereby authorized to execute an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC, of Austin, Texas for professional legal and lobbying services pertaining to the interests of the City and of DME in proposed legislation before the 79~h Texas Legislative Session as hereinabove described, in substantially the form of the Agreement for Professional Legal Services attached hereto and incorporated herewith by reference. SECTION 3: That the award of this Agreement is on the basis of the demonstrated competence and qualifications of the Law Offices of Jim Boyle, PLLC, and the ability of the Law Offices of Jim Boyle, PLLC, to perform the professional legal and lobbying services needed by the City for a fair and reasonable price. SECTION 4: That the expenditure of funds as provided for in the attached Agreement for Professional Legal Services is hereby authorized. SECTION 5. That the above and foregoing Agreement for Professional Legal Services is hereby ratified, confirmed, and retroactively approved, and shall be effective from and after January 1, 2005. SECTION 6 That except as otherwise provided in Section 5 above, this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of January, 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: STATE OF TEXAS COUNTY OF DENTON AGREEMENT FOR PROFESSIONAL LEGAL SERVICES THIS AGREEMENT, made and entered into this the day of January, 2005, but effective as of January 1, 2005, by and between the Law Offices of Jim Boyle, PLLC, 1005 Congress, Suite 550, Austin, Texas 78701, acting by and through Jim Boyle, Esq. having full authority to execute this Agreement on behalf of the firm, hereinafter referred to as "Consultant"; and the City of Denton, Texas, a municipal corporation, 215 East McKinney Street, Denton, Texas 76201, acting by and through its duly authorized City Manager, hereinafter referred to as "City." WITNESSETH WHEREAS, the City finds it necessary to employ experienced outside legal counsel to perform professional legal services and State lobbying services in a highly specialized area of law, public utility law; and wishes to retain Consultant to represent the City of Denton, Texas, specifically its electric utility and its water utilities, in accordance with the emphasis and focus that is generally identified and is more particularly set forth in Exhibit "A" (the "Scope of Services") attached hereto, before the 79® Texas Legislative Session; and WHEREAS, the Consultant is willing to perform such services in a professional manner as an independent contractor; and the City desires to engage the Consultant to render the professional services in connection therewith, and the Consultant is willing to provide such services; and the Consultant will also be working with Monte' Akers, Esq. of the law firm of Bovey, Akers & Bojorquez, L.L.P., Austin, Texas to provide additional coverage of the objectives of this Agreement; and NOW, THEREFORE, in consideration of the promises and mutual obligations set forth herein, and for good and valuable consideration, the City and Consultant do hereby mutually AGREE as follows: SECTION 1: Scope of Services. The Consultant shall perform the following services in a professional manner working as an independent contractor not under the direct supervision and control of the City: A. Services to be provided: (1) Consultant shall provide, without limitation, all those services set forth in Exhibit "A," incorporated by reference herewith and made a part of this Agreement for all purposes; and Consultant shall attend legislative hearings, contact key legislators and legislative staff, and perform other related lobbying activities as are reasonably required by the City. EXHIBIT 2 (2) Consultant shall consult with the Mayor, the City Manager, the Assistant City Manager for Utilities, the Director of Electric Utilities, the City Attorney, and the Utility Attorney as needed; and any other designated City administrative personnel, regarding any and all aspects of the special services to be performed, including legal research and legal advice with respect to such matters. This will include coordinating with the Assistant City Manager for Utilities, the Director of Electric Utilities, the City Attorney, and the Utility Attorney and their staff, to efficiently perform the services required and to communicate the City's legislative program or issues to other interested parties or legislators only to the extent necessary to advance the City's legislative agenda. (3) Consultant shall provide regular weekly status reports to the City; and interim reports to the~City by telephone and/or facsimile on matters that are time- sensitive. Consultant shall perform all the services required by this Agreement in a timely fashion, and shall complete them in reasonable compliance with any schedules established by the City through its Assistant City Manager for Utilities, as appropriate, to carry out the terms and provisions of this Agreement. SECTION 2: Term. This Agreement has been retroactively approved and shall be effective from and after January 1, 2005. The professional services of Consult~int as provided by this Agreement shall commence on January 1, 2005 and shall continue until the expiration of the term of this Agreement, on May 31, 2005. The term of this Agreement is generally tied to the schedule of the 79th Texas Legislative Session. This Agreement may additionally be sooner terminated by either party in accordance with the provisions hereofi Time is of the essence of this Agreement, and the Consultant shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible during the term of this Agreement, and to meet the schedules established by the City, through its Assistant City Manager for Utilities, or as the progress of this matter may require. SECTION 3: Compensation and Method of Payment. A. Consultant shall be paid a lump sum retainer fee for the sum of $13,000 per month, for each of the five (5) months that this Agreement is in full force and effect. Due to the unique and specialized nature of the services provided, the City recognizes and agrees that the payment of a monthly retainer fee, rather than an hourly fee, for Consultant's services in the area of work covered by this Agreement, is the usual and customary method of compensation for such professional services. In addition, the City shall reimburse Consultant for all out-of-pocket expenses incurred in connection with this Agreement, at Consultant's actual cost. For in-house photocopies, Consultant shall charge $.15 per copy. For in-house faxes, Consultant shall charge $.25 per page plus telephone charges. City and the Consultant agree that the lump-sum monthly fees and the out-of-pocket expenses payable to Consultant under this Agreement shall not exceed the sum of $68,000. Contract For Professional Legal Services - Page 2 B. The Consultant shall utilize his best efforts in representing the City's interests, and may, from time-to-time, as reasonably necessary or appropriate, delegate tasks to be performed within the Scope of Services of this Agreement, by utilizing qualified partners, associates, paralegals, law clerks, and other legislative support personnel employed by Consultant. Assistance provided by Consultant's staff is included in the above monthly lump-sum fee. Assistance provided by individuals who do not work for Consultant is not included in the monthly lump-sum fee. Any such fees shall be submitted to the City as a reimbursable out-of-pocket expense incurred. To the extent that any such expense will exceed $500.00, Consultant will first contact the City's Assistant City Manager for Utilities or the Director of Electric Utilities, for advance approval to expend such an amount. Consultant shall bill the City through the submission of a monthly invoice, statements, and other documentation, including reasonable supporting data or information identifying those out-of-pocket expenses incurred by Consultant and invoiced to the City. C. Upon completion of services for a month's work performed hereunder, the City shall make payment to Consultant within thirty (30) days of the satisfactory completion of services for the given month's work and receipt of an invoice or statement. The parties anticipate that invoices or statements for services will be generated on a monthly basis and that said invoices or statements will be sent to the City on or about the 5th day of each month, following the firm's rendering services to the City for the preceding month. All invoices and bills issued by the Consultant shall be approved by the Director of Electric Utilities an~ the Utility Attorney. D. It is understood that the Consultant shall work under the coordination and general supervision of the Assistant City Manager for Utilities and the Director of Electric Utilities. E. It is understood that all notices, billing statements and invoices shall be made in writing and may be given by personal delivery, by telecopy, or by U.S. Mail. Billing statements and invoices sent by mail shall be addressed to: Michael S. Copeland, Utility Attorney, 215 East McKinney Street, Denton, Texas 76201 [Fax (940) 349-8120]. Notices sent by mail shall be addressed both to Mr. Copeland as well as to: Michael A. Conduff, City Manager, 215 East McKinney Street, Denton, Texas 76201 [Fax (940) 349-8596.] When so addressed, the notice, invoice, and/or payment shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the responsible person or office to whom notices, invoices, and/or payments are to be sent, provided reasonable written notice is given. SECTION 4: Professional Competency. A. Consultant agrees that in the performance of these professional services, Consultant shall be responsible for the level of competency and shall use the same degree of skill and care presently maintained by other practicing professionals performing the same or similar types of work in the State of Texas. For the purpose of this Agreement, the key person who will be performing most of the work hereunder shall be Jim Boyle, Contract For Professional Legal Services - Page 3 Esq. However, nothing herein shall limit Consultant from using other qualified and competent members of his law firm, or the services of Monte Akers, Esq. of the law firm of Bovey, Akers & Bojorquez, L.L.P., Austin, Texas to perform the services required herein. B. All legal opinions and other legal documents prepared or obtained under the terms of this Agreement are instruments of service and the City shall retain ownership and a property interest therein. If this Agreement is terminated at any time for any reason prior to payment to the Consultant for work under this Agreement, all such documents prepared or obtained under the terms of the Agreement shall upon termination be delivered to and become the property of the City upon request and without restriction on their use or further compensation to the Consultant. SECTION 5: Establishment and Maintenance of Records. Full and accurate records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of at least three (3) years after receipt of final payment under this Agreement. SECTION 6: Audits and Inspection. At any time during normal business hours and upon reasonable notice to the Consultant, there shall be made available to the City all of the Consultant's records with respect to all matters covered by this Agreement. Consultant shall permit the City to audit, examine, and make excerpts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement. SECTION 7: Accomplishment of Project. Consultant shall commence, carry on, and complete any and all projects with all practicable dispatch, in a sound, economical and efficient manner, and, in accordance with the provisions hereof and all applicable laws. In accomplishing the projects, the Consultant shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the City. SECTION 8: Indemnity and Independent Contractor Relationship. A. The Consultant shall perform all services as an independent contractor not under the direct supervision and control of the City. Nothing herein shall be construed as creating a relationship of employer and employee between the parties. The City and Consultant agree to cooperate in the defense of any claims, action, suit, or proceeding of any kind brought by a third party which may result from or directly or indirectly arise from any negligence and/or errors or omissions on the part of the Consultant or from any breach of the Consultant's obligations under this Agreement. In the event of any litigation or claim under this Agreement in which Consultant is joined as a party, Consultant shall provide suitable counsel to defend the City and Consultant against such claim, provided the Consultant shall have the right to proceed with the competent counsel of its own choosing. The Consultant agrees to defend, indemnify and hold harmless the City and all of its officers, agents, servants, and employees against any and all such claims to the extent of coverage by Consultant's professional liability policy. The Contract For Professional Legal Services - Page 4 Consultant agrees to pay all expenses, including but not limited to attorneys' fees, and satisfy all judgments which may be incurred or rendered against the Consultant's professional liability insurance policy. Nothing herein constitutes a waiver of any rights or remedies the City may have to pursue under either law or equity, including, without limitation, a cause of action for specific performance or for damages, a loss to the City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. B. Consultant shall maintain and shall be caused to be in force at all times during the term of this Agreement, a legally binding policy of professional liability insurance, listed by Best Rated Carders, with a rating of "A-" or above, issued by an insurance carrier approved to do business in Texas by the Texas Board of Insurance. Such coverage shall cover any claim hereunder occasioned by the Consultant's negligent professional act and/or error or omission, in an amount not less than $500,000 annual aggregate, per claim. In the event of change or cancellation of the policy by the insurer, the Consultant hereby covenants to forewith advise the City thereof; and in such event, the Consultant shall, prior to the effective date of change or cancellation, serve substitute policies furnishing the same coverage. The Consultant shall provide a copy of such policy or the declarations page of the policy; which ever is reasonably satisfactory, to the City through its Assistant City Manager/Utilities, simultaneously with the execution of this Agreement. SECTION 9: Termination of Agreement. A. In connection with the work outlined in this Agreement, it is agreed and fully understood by the Consultant that the City may cancel or indefinitely suspend further work hereunder or terminate this Agreement at any time upon written notice to Consultant, Consultant shall ceas~ all work and labor being performed under this Agreement. Consultant may terminate this Agreement by giving the City fifteen (15) days written notice that Consultant is no longer in a position to continue representing the City and state the reason(s) therefore. Consultant shall invoice the City for all work satisfactorily completed through the date of the notice, and shall be compensated in accordance with the terms of this Agreement. All reports and other documents, or data, or work related to the project shall become the property of the City upon termination of this Agreement. B. This Agreement may also alternatively be terminated, in whole or in part, in writing, by either party, in the event of substantial failure by the other party to ful fill its obligations under this Agreement through no fault of the terminating party. Provided, however, that no such termination may be affected, unless the other party is given [I] written notice (delivered by certified mail, return receipt requested) of intent to terminate, and not less than thirty (30) calendar days to cure the failure; and [2] an opportunity for consultation with the terminating party prior to termination. Contract For Professional Legal Services - Page 5 C. Nothing contained herein or elsewhere in this Agreement shall require the City to pay for any work which is unsatisfactory or which is not submitted in compliance with the terms of this Agreement. SECTION 10: Alternate Dispute Resolution. The Consultant agrees that, if necessary, it will use its best efforts to resolve any disputes regarding the Agreement through the use of mediation or other forms of alternate dispute resolution set forth in Chapter 154 of the Texas Civil Practice and Remedies Code (V.A.T.C.S.). SECTION 11: Entire Agreement. This Agreement represents the entire agreement and understanding between the parties, and any negotiations, proposals, or oral agreements are intended to be integrated herein and to be superseded by this written Agreement. Any supplement or amendment to this Agreement to be effective shall be in writing and signed by the City and the Consultant. SECTION 12: Compliance with Laws. The Consultant shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereafter be amended, including but not limited to the Texas Disciplinary Rules of Professional Conduct. SECTION 13: Governing Law. For the purpose of determining place of agreement and law governing same, this Agreement is entered into in the City and County of Denton, State of Texas, and shall be governed by the laws of the State df Texas. Venue and jurisdiction of any suit or cause of action arising under or in connection with this Agreement shall be exclusively in a court of competent jurisdiction sitting in Denton County. SECTION 14: Discrimination Prohibited. In performing the services required hereunder, the Consultant shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. SECTION 15: Personnel. A. The Consultant represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or have any contractual relations with the City. Consultant shall inform the City of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement, in accordance with Consultant's responsibilities under the Texas Disciplinary Rules of Professional Conduct. B. All services required hereunder will be performed by the Consultant or under its direct supervision. All personnel engaged in work shall be qualified and shall be authorized or permitted under state and local laws to perform such services. SECTION 16:Assignability. The Consultant shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the City thereto. Contract For Professional Legal Services - Page 6 SECTION 17: Required Legal Disclosure. State law requires Consultant to advise you that the State Bar of Texas investigates and prosecutes professional misconduct committed by Texas Attorneys. Although not every complaint against or dispute with a lawyer involves professional misconduct, the State Bar's Office of General Counsel will provide you with information about how to file a complaint. For more information, call 1-800-932-1900. This is a toll-free call. SECTION18: Severability. All agreements and covenants contained herein are severable, and in the event any of them, with the exception of those contained in sections headed "Scope of Services", "Independent Contractor Relationship," and "Compensation and Method of Payment" hereof, shall be held to be invalid by any court of competent jurisdiction, this Agreement shall be interpreted as though such invalid agreements or covenants were not contained herein. SECTION 19: Responsibilities for Claims and Liability.. Approval by the City shall not constitute nor be deemed a release of the responsibility and liability of the Consultant for the accuracy and competency of its work; nor shall such approval be deemed to be an assumption of such responsibility of the City for any defect in any report or other documents prepared by the Consultant, its employees, officers, agents and consultants. SECTION 20: Modification of Agreement. No waiver or modifcation of this Agreement or of'any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and 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 as aforesaid; and, the parties further agree that the Provisions of this section will not be waived as herein set forth. SECTION 21: Captions. The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. SECTION 22: Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Agreement. IN WITNESS WHEREOF, the City of Denton, Texas, has executed this Agreement in four (4) original counterparts by and through its duly-authorized City Manager; and Consultant has executed this Agreement by and through its duly-authorized undersigned proprietor, on this the day of January, 2005. Contract For Professional Legal Services - Page 7 CITY OF DENTON A Texas Municipal Corporation ATTEST: JENNIFER WALTERS, CITY SECRETARY By: Michael A. Conduff, City Manager By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY ATTEST: "CONSULTANT" LAW OFFICES OF JIM BOYLE, PLLC BY:%~oyl~e, ~~'g'~ By: Contract For Professional Legal Services - Page 8 EXHIBIT "A" SCOPE OF SERVICES The Law Offices of Jim Boyle, PLLC, Austin, Texas (the "Consultant") shall provide legal and legislative services, advice, and assistance to the City of Denton, Texas ("City") as well as its electric utility, Denton Municipal Electric ("DME") and its water utilities, under the Agreement for Professional Legal Services (the "Agreement") attached hereto; with Monte Akers, Esq. of the law firm of Bovey, Akers & Bojorquez, L.L.P., Austin, Texas to insure thorough coverage of the objectives of the Agreement, in connection with State legislative activities in the 79th Texas Legislative Session related to: DME: Any legislation related to implementation of a new wholesale market design based on locational marginal pricing theory (often referred to as LMP or a "nodal" design), which could significantly increase the price to consumers of electricity in the DFW area over those same costs in other areas of the state. Any legislation related to efforts to extend the university discount beyond year 2007, or to expand its applicability to other entities. · Any legislation related to imposition of limits on a municipal utility's ability to utilize its facilities to support new technologies, such as delivery of broadband services over electric distribution lines. · Any legislation related to imposition of limits on a municipal utility's ability to charge for such things.as attachments to its poles by other utilities. · Any legislation to weaken the ability of municipal utilities to maintain the confidentiality of issues; such as the terms of individual wholesale power purchase contracts. Denton Water Utilities: · Any legislation related to water issues or water conservation issues having a special impact upon the City. · Any legislation related to the wastewater issues or wastewater reuse issues having a special impact upon the City. · Any legislation related to the implementation of SB 2, vis-fi-vis the City. · Any legislation related to drainage or storm water issues having a special impact upon the City. · Any legislation related to environmental issues dealing with utilities, having a special impact upon the City. · Any legislation related to water rights permitting (particularly as it relates to water reuse and environmental return flows). Contract For Professional Legal Services - Page 9 Services to be provided by the Firm include: Preparing and recommending legislative proposals of benefit to the City/DME Development of a strategic legislative plan for the City/DME Preparation of issue papers and reports for legislators and staff · Analyzing proposed legislative bills for potential impact upon the City/DME · Communicating with key legislators and their staffs · Meeting with the Denton City Council and/or the Denton, Texas, as requested, to provide advice, regarding City/DME legislative plans, strategies, reasonable advance notice. Denton Public Utilities Board in recommendations, and guidance and other related issues, upon S:\Our Documents\Contracts\05XJim Boyle-79th Legislature-Lobbying Svc-PSA.doe Contract For Professional Legal Services - Page 10 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities The Chair, Charldean Newell, informed the Board that Item # 10 would be discussed after Agenda Item #5. The Board would convene into a Closed session as follows: CONSENT AGENDA: 1) Consider approval of Bid No. 3273 to Montgomery Watson Harza Laboratories for the annual contract for Lab Service for Drinking Water Testing. 2) Consider approval of a Professional Services Agreement with Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., Austin, Texas in an amount not to exceed $65,000 for legal services related to Denton Municipal Electric's (DME) updated Transmission Cost of Service (TCOS) case at the Texas Public Utilities Commission. 3) Consider approval of an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC, Austin, Texas in an amount not to exceed $68,000 for representation of the City electric and water utility interests during the 79th Texas Legislative Session. 4) Consider approval of the purchase of a back-up emergency diesel powered generator for the operation ofwastewater facilities during a loss of power from American Generators, Miami, Florida for an amount not to exceed $47,500. Board Member George Hopkins moved to approve Consent Agenda Items #1-4, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. Page 1 of 1 EXHIBIT 3 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2004 Water Utilities Howard Martin, Utilities 349-8232 SUBJECT Consider adoption of an ordinance of the City Council of DeNon, Texas authorizing the City Manager to execute a Water Main Prorata Reimbursement Agreement between the City of Denton and NUB neighbors 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. (The PUB recommends approval 6-0). BACKGROUND The residems of Sanders Road expressed imerest in obtaining City water service. On June 25, 2003 staff provided the residents with a cost estimate for extending a waterline along Sanders Road. The estimated cost for the waterline that would extend the entire length of Sanders Road (Exhibit 1) was $97,500, which amoumed to an average cost per property owner of $11,000. The current policy for staff to recover costs from a City constructed waterline extension requires up-front collection of the entire pro rata fee based on 60% of the average per-foot frontage cost. Due to the relatively high cost per property owner, the residents requested alternative funding options, one of which involved the City providing financing to each residem requesting service. As a means to provide the residems with a more feasible alternative, staff brought a few funding options to the Board on July 21, 2003. The Board authorized staff to present the residents of Sanders Road with an option to finance the cost of the extension if 70% of the residents were willing to participate in the project. In the event that 70% participation was not met, a second option was available to staff and the residents whereby the City would construct the waterline under the current pro rata provision if at least 50% were willing to participate. In this option, each participating property owner would pay pro rata as per the current ordinance (60% of the average per-foot fromage cost) and the City would fund the remaining cost of the line with the ability to collect pro rata from any future connections. Neither participation criteria was met. The participation criteria for both alternatives were established as a means to provide some assurance that a portion of the City's investmem would be recovered. One of the residems on Sanders Road has lost service from his well and is curremly receiving water service from the City via a temporary connection. This Property Owner is willing to pay a major portion of the cost for an extension to, and across the frontage of his property, but cannot afford the emire cost. The cost for this piece of the extension would be $37,927 and would not extend past the Property Owner's property along the emire length of the Road (Exhibit 2). In order to facilitate the extension, an alternative to current policy, which requires the Property Owner to pay for the entire cost of the extension, was brought to the Board on January 12, 2004. Staff recommended a cost share with the Property Owner whereby the City and the Property Owner would each pay half of the cost and split any future pro rata reimbursements. The Board authorized staff to negotiate the pro rata agreement. Staff has negotiated an agreement with the Property Owner (Exhibit 3) as authorized by the Board. The City and the Property Owner will each pay 50% of the total extension cost. Any pro rata reimbursements will be split 50/50 between the City and the Property Owner up to the amount at which the Property Owner has been reimbursed for the portion of the off-site protion of the line that exceeds the Property Owner's cost based on the per-foot frontage of the Property Owner's property. A typical pro rata agreement would require the developer to fund the entire project; the developer would be reimbursed 100% of any pro rata collected. In this agreement the City is funding 50% of the project and will be collecting 50% of any pro rata reimbursements. Per the City's pro rata policy, any connection to the extension will require payment in the amount of 60% of the average per-foot frontage cost of the property requesting service. If the waterline does not extend entirely across the frontage of the property requesting service, the property owner will be required to extend the line across the entire frontage before connecting to the line. To ensure equity to both the Property Owner involved with this agreement and any future residents requesting service from the extension, pro rata provisions as per the City's current ordinance will apply. Any future extensions requested by a resident on Sanders Road will be offered the same 50% City pro rata match that has been detailed in this agenda. OPTIONS Enter into an agreement with the Property Owner wherein the City and the Property Owner each fund 50% of the total project cost and split the any pro rata reimbursements 50/50 up to the amount at which the Property Owner has been reimbursed for the portion of the costs that exceeded the actual per-foot frontage cost of the Property Owner's property. Provide staff with alternative suggestion and renegotiate the terms of the agreement. RECOMMENDATION Staff recommends entering into the 50/50 pro rata agreement under the terms discussed above. PRIOR ACTION/REVIEW (Council, Boards, Commissions) July 21, 2003 (PUB) -Authorized staff to offer the residents of Sander Road with a financing option for the waterline extension if the participation criterion was met. If the participation criterion was not met for financing, the Board authorized staff to follow through with the second alternative; construction of the waterline if at least 50% of the residents were willing to pay pro rata. The motion to proceed with funding resources and a cost recovery policy for Sanders Road was approved by a 6-0 vote. January 12, 2004 (PUB) -Neither participation criteria established at the July 23, 2003 PUB meeting were met. PUB authorized staff to negotiate a pro rata agreement with residents willing to pay at least 50% of the extension costs. The motion to proceed with the extension was approved unanimously. December 13, 2004 (PUB) -Authorized staff to proceed with the negotiated terms of the agreement whereby the City and the Property Owner would split the cost of the extension and any pro rata collected. The motion to enter into the 50/50 pro rata agreement was approved by a 6-0 vote. FISCAL INFORMATION Total Project Costs for 1,025 linear feet of 8" waterline, extending from the eastern end of Sanders Road, the connection point to the existing waterline, to the western property boundary of the participating Property Owner's property (Exhibit 3), is $37,927. Both the City and the Property Owner will each fund $18,963.50 of the project cost. The total frontage for Property Owner's property is 478 linear feet. Under the current pro rata policy the Property Owner is responsible for 60% of the average cost per linear foot of frontage. The waterline cost for the Property Owner's 478 linear feet is 60% of $17,686, which is $10,611.60. The property owner will be reimbursed 50% of all pro rata fees collected up to a maximum of $8,315.90, the difference between half of the total project cost and the Property Owner's cost per-foot of the Property Owner's frontage. EXHIBITS Ordinance Site Map of Sanders Road Waterline Extension as Originally Proposed Site Map of Sanders Road Waterline Extension Phase 1 (partial extension as described under the terms of the agreement) Pro-Rata Agreement PUB Minutes Prepared by: Respectfully submitted: Howard Martin Assistant City Manager of Utilities Tim Fisher Assistant Director of Water Utilities ORDINANCE NO. 2005- 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 NUB NEIGHBORS REGARDING SWISHER ROAD WATER LINE PHASE 1, PROVIDING FOR REIMBURSEMENT OF THE COSTS OF BUILDING A WATER MAIN TO BOTH THE CITY OF DENTON AND NUB NEIGHBORS AS SPECIFIED IN THE AGREEMENT, 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 DeNon, Texas requires that the real property owned by Nub Neighbors ("Property Owner) commonly referred to as that real property described as the "Swisher Road Water Line Phase 1" (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of DeNon, Texas or its extraterritorial jurisdiction; and said Property Owner is required to provide such real property with adequate water service by designing, constructing, and installing a water main; and WHEREAS, the City of DeNon, Texas may lawfully reimburse the Property Owner for the sum of $8,315.90 representing the agreed-upon portion of the costs of the water main installation by the Property Owner based upon pro-rata charges paid to the City by any 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 Reimbursemem Agreemem Between the City of DeNon, Texas and Nub Neighbors (the "Agreemem") to provide for the pro-rata reimbursemem to Nub Neighbors of the sum of $8,315.90 only, with all remaining pro-rata charges to be paid to the City, for the design, construction, and installation of 1,025 linear feet of 8-inch diameter 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 Property Owner, Nub Neighbors emering into a Development Contract with the City of Denton, Texas in accordance with the Denton Developmem Code, Subchapter 35.16.20.2. SECTION 2. That the City Manager is hereby authorized to make such expenditures and transfers of funds to the City and to Nub Neighbors under such conditions and limitations as are set forth in the attached Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. EXHIBIT 1 PASSED AND APPROVED this the day of January, 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: S:\Our Documents\Ordinances\05\Water Main Pro-Rata Reimb Ord-Neighbors-2005.doc Sanders Road Proposed Waterline Extension Project I. Sanders ROad WA TERL!NE EXTENSION :, Ir( Ryan ROad : EXHIBIT 2 Sanders Road Proposed Waterline Extension Project t~" WATERLINE Sanders Road 0 ' ' ~ Proposed Extension I' ' EXHIBIT 3 THE STATE OF TExAs § COUNTY OF DENTON § WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND NUB NEIGHBORS WHEREAS, Nub Neighbors ("Property Owner"), whose address is 309 Sanders Road, Denton Texas 76210 wishes to develop and improve certain real property named Swisher Road Waterline Phase 1 (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 Property Owner for the part of the costs of the water main installed by the Property Owner, based upon pro-rata charges paid to the City by persons connecting to the water main; NOW, THEREFORE, in consideration of their mutual promises, Property Owner and City agree as follows: Property Owner has designed, installed and constructed, 8-inch diameter water main and all necessary appurtenances thereto, extending a total distance of approximately 1025 feet ("Facilities"), located as shown on Exhibit I, attached hereto and incorporated herein by reference. This water mah~ shall be subject to pro-rata reimbursement in accordance with this Agreement. Prior to beginning construction of Facilities, Property Owner shall submit payment to the City in the amount of $18,962.50, thereby funding 50% of the cost of 1025 feet of water line as described in Exhibit I. The Property Owner shall obtain at Property Owner's sole cost and expense any necessary easements. The City shall design and install the water line, shall obtain all necessary permits and licenses and shall survey and prepare documentation for any required easements. If Property Owner is unable to acquire needed easements, Property Owner 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 Property Owner shall be assigned to City, if not taken in City's name, prior to acceptance of the Facilities; and Property Owner warrants clear title to such easements and will defend the City against any adverse claim made against such title. The cost for the design, construction, and installation of the Facilities subject to pro- rata reimbursement is: EXHIBIT 4 $18,962.50 (Property Owner cost) or $18.50 per linear foot (1025 linear feet of Facilities) and $18,962.50 (City cost) or $18.50 per linear foot (1025 linear feet of Facilities) The City has established cost for the project, which has been agreed upon by the Property Owner, in the amount of $37,925.00. The City will collect pro-rata for all connections of properties abutting and adjacent to both the off-site and. perimeter portions the water line improvement described in this Agreement. Pro- rata charges shall be $37.00 per linear foot. Pro-rata reimbursements to the Property Owner shall be in the amount of $18.50 per linear foot regarding pro-rata charges received by the City; SUBJECT HOWEVER to the limitation that total payment(s) to be made by the City under this Agreement to Property Owner amount to, and are limited to a total of $8,315.90; that is the City and Property Owner shall each receive 50% of each pro-rata payment made to the City, until such time as the 50% share of the Property Owner, in the amount of $8,315.90, ~ has been fully paid. Thereafter, after the Property Owner has been repaid the amount of $8,315.90, the City shall solely retain all further pro-rata charges received from persons connecting to the Facilities. After title to the Faculties have vested in the City, the City shall collect a pro-rata charge from any person connecting to the 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, ~e City shall transfer the applicable amount collected to Property Owner in accordance with the provisions of Paragraphs 3 and 5 of this Agreement. The City shall transfer to Property Owner 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 Property Owner an amount of funds in excess of $8,315.90. Once the Property Owner has received the maximum amount of reimbursement, $8,315.90, the City shall then continue to collect pro-rata charges to recover the City's remaining portion of expenditures excluding any costs associated with oversize participation; and no further payments shall be made to the Property Owner. The Property Owner and the City also recognize the possibility that no one will seek to connect to the Facilities described in this Agreement for a period of time for twenty (20) years; in which case, the Property Owner and the City each recognize the risk that they will receive no funds pursuant to this Agreement. The parties hereto recognize that the Facilities subject to this Agreement are necessary to provide water service to the Property Owner's property. The City may decide that it will participate in the cost of funding a water main that would provide greater water capacity than the Facilities Property Owner is required to install. If the City elects to oversize the 8-inch water line to a 12-inch water line, any additional cost and expense will be borne solely by the City. The pro-rata charges to be collected and transferred to Property Owner shall be based on the terms of this Agreement, as though the Facilities subject to this Agreement were installed. o The pro-rata charges to be collected by the City and transferred to Property Owner in accordance with the ordinances of the City and this Agreement are intended to reimburse the Property Owner for the Property Owner's share of the 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 solely from those pro-rata funds received from any persons connecting to such Facilities. o 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 Property Owner 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. All notices, payments or communications to be given or made pursuant to this Agreement by the parties hereto, shall be sent to Property Owner at the business address given above and to the Assistant City Manager of Utilities for the City at the address given above. 10. The Property Owner 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 Property Owner, its officers, agents, employees, invitees, contractors or other persons with regard to the performance of this Agreement; and Property Owner will, at its own cost and expense, defend and protect the City against any and all such claims and demands. 11. 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. 12. Property Owner shall not assign this Agreement without the express written consent of the City. 13. 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. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 14. This Agreement shall be effective for a period of twenty (20) years from the date Facilities are accepted by the City, or until Property Owner has been paid all allowable reimbursable pro-rata charges for the Facilities, totaling $8,315.90, whichever event occurs first; provided, however, should Property Owner 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 January, 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 By: "PROPERTY OWNER" IGId BORS S:\Our Documents\Contracts\05\Water Main-Pro Rata-Neighbors-2005.doc 4 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES December 13, 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, December 13, 2004, at 9:04 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. PRESENT: Bob Bland, Bill Cheek, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities EXCUSED: John Baines ITEMS FOR INDIVIDUAL CONSIDERATION: 4) Receive a report, hold a discussion, and give staff direction pertaining to the pro rata agreement for the extension of a water line along Sanders Road. Tim Fisher, Assistant Director of Water Utilities, presented this report. The residents of Sanders Road expressed interest in obtaining City water service. The estimated cost for the water line is $97,500, which amounts to an average cost per property owner of $11,000. The current policy for staff to recover costs from a City constructed water line extension requires up-front collection of the entire pro rata fee based on 60% of the average per- foot frontage cost. The Board authorized staff to present the residents of Sanders Road with two financing options for funding the extension. The residents met neither participation criteria. The participation criteria for both alternatives were established as a means to provide some assurance that a portion of the City's investment would be recovered. One of the residents on Sanders Road has lost service from his well and is currently receiving water service from the City via a temporary connection. This resident is willing to pay a major portion of the extension, but cannot afford the entire cost. In order to facilitate the extension, the Board authorized staffto negotiate a pro rata agreement. The agreement stipulates that the City and the resident will each pay 50% of the total extension cost. Any pro rata reimbursements will be split 50/50 between the City and the resident up to the amount at which the resident has been reimbursed for the portion of the cost that exceeds the resident's actual cost based on the per-foot frontage of the resident's property. A typical pro rata agreement would require the resident/developer to fund the entire project; the resident/developer would be reimbursed 100% of any pro rata collected. In this agreement, the City is funding 50% of the project and will be collecting 50% of any pro rata reimbursements. EXHIBIT 5 Per the City's pro rata policy, any connection to the extension will require payment in the amount of 60% of the average per-foot frontage cost of the property requesting service. If the water line does not extend entirely across the frontage of the property requesting service, the property owner will be required to extend the line across the entire frontage before connecting to the line. To ensure equity to both the resident involved with this agreement and any future residents requesting service from the extension, pro rata provisions as per the City's current ordinance will apply. Any future extensions requested by a resident on Sanders Road will be offered the same 50% City pro rata match that has been detailed in this agenda. Hopkins moved to approve entering into the 50/50 pro rata agreement, with a second from Cheek. The motion was approved by a vote of 6-0. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January l8,2005 Planning and Development Department Jon Fortune, Assistant City Manager SUBJECT: Z04-0024 (Preserve at Pecan Creek, Section A2) Hold a public hearing and consider adoption of an ordinance regarding a Detailed Plan for Planned Development 132 (PD-132) for approximately 24.8 acres. The property is generally located on the south side of Pockrus Page Road, on the east side of Lakeview Boulevard. 116 Residential lots are proposed. The Planning and Zoning Commission recommends approval (6- 0). BACKGROUND Applicant: Holigan Land Development, Ltd. Dallas, Texas Due to the realignment of Lakeview Boulevard, the applicant proposes to amend the detail plan to allow 115 detached single-family residential lots as stated within the NR-6 zoning designation. The Detailed Plan for the Planned Development 132 (PD-132) zoning district allows for the development of single-family residential lots. Legal notices were mailed to property owners within 200 feet of the property. Staff has received 6 written responses in opposition to the request. Currently, 2.1% of the land within 200 feet of the subject property is owned by people in opposition to the request. OPTIONS 1. Approve as submitted. 2. Approve with conditions 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of the request (6-0; Commissioner Noble absent). ESTIMATED PROJECT SCHEDULE The subject property is platted. Final replats will be required to conform to the proposed amended detail plan. PRIOR ACTION/REVIEW The following is a chronology of Z04-0024, commonly known as the Preserve at Pecan Creek: The subject property was designated as Planned Development 132 (PD-132) zoning district by Ordinance 88-166. An amended Concept Plan for PD-132 was approved November 17, 1998, by Ordinance 89-394. The Detailed Plan for Sections A, B, D & G was approved November 17, 1998, by Ordinance 98-395. ATTACHMENTS 1. Staff'Analysis 2. Location/Zoning & Land Use Maps 3. Notification Map & Information 4. Site Photos 5. Letter from Applicant 6. Proposed Detailed Plan 7. Written Responses from Property Owners within 200 Feet of Site 8. December 15, 2004, Planning & Zoning Commission Meeting Minutes 9. Draft Ordinance Prepared by: Chris Fuller Planner II Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development ATTACHMENT 1 Staff Analysis Summary of Request The applicant is requesting approval of a Detailed Plan for Planned Development 132 (PD-132). The detail plan must be amended in order to accommodate the realignment of Lakeview Boulevard. The applicant is proposing 115 single-family residential lots. The proposed Detailed Plan is in conformance with the approved Concept Plan. Existing Condition of Property Adjacent zoning: North: Neighborhood Residential Mixed Use (NRMU) South: Planned Development 132 (PD-132) West: Planned Development 132 (PD-132) East: Planned Development 132 (PD-132) Photina Avenue and utilities between Fox Sledge Lane and Indian Paint Way along with a temporary access to Pockrus Page have been constructed with the original PD development. The revised layout utilizes those existing utilities and roads in its design. Additionally, the developer has agreed to close the temporary access at Pockrus Page and Indian Paint Way as was required with the previous PD. Comprehensive Plan Analysis The subject site is located within the "Neighborhood Centers" future land use area. These areas may develop in conventional patterns or may be developed in a pattern of 'neighborhood centers'. Neighborhood centers are oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to-day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school. The proposed zoning change is in compliance with the approved Concept Plan. Development Code/Zoning Analysis The applicant is requesting approval of a Detailed Plan for Planned Development 132 (PD-132). The detail plan must be amended in order to accommodate the realignment of Lakeview Boulevard. The applicant is proposing 115 single-family residential lots. The single-family homes will be built according to the NR-6 standards set forth within the Development Code. The chart below states the development standards within the NR-6 zoning district. The following limits apply to subdivision of more than 2 acres in lieu of minimum lot size and dimension requirements: Maximum lot coverage 60% Minimum landscaped area 40% Maximum density, dwelling units 6 per acre Minimum front yard setback 10 feet Minimum side yard 6 feet Minimum side yard adjacent to a 10 feet street Minimum rear yard 10 feet Minimum side yard for non- 4 feet attached buildings Maximum building height 40 feet 10 feet plus 1 foot for each Minimum yard when abutting a foot of single-family use or district building height above 20 feet Masonry Walls The applicant proposes to construct a continuous eight (8) foot masonry wall along the east and west right-of-way lines for Lakeview Boulevard. The applicant also proposes to construct a continuous six (6) foot masonry wall along the south right-of-way line for Pockrus Page Road. Both walls will be constructed in accordance with the standards set forth in the Development Code. The developer will be responsible for construction and the Home Owner's Associate will be responsible for maintenance. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to construction of walls located within right-of-way. Landscapin~ Landscaping, Code. including street trees, will conform to the standards set forth in the Development Parks and Open Space This development is intended to become Phase III of the Villages of Carmel. The applicant asserts the parks and open spaces within the entire Villages of Carmel subdivision will be applicable for this development. 4 Sidewalks Sidewalks will be provided along all public and residential streets. The sidewalks within this development shall conform to the standards set forth within the Development Code. Both four (4) and five (5) foot sidewalks will be provided and shall conform to the sidewalks on either side of the development. The change from four (4) foot sidewalks to five (5) foot sidewalks shall occur at intersections (the sidewalks in the adjacent Preserve at Pecan Creek are four (4) foot wide. The applicant proposes the eliminate sidewalks within the Indian Paint Way cul-de-sac in order to accommodate the Fire Code requirements while adhering to the Denton street design standards. Streets and Parking The street serving the block north of Photinia Avenue, between Lakeview Boulevard and Fox Sedge Lane, shall be considered a residential street. Single-family homes will be front-served, with front entry driveways and garages. Signs The applicant proposes subdivision entrance monuments at the following intersections: Lakeview & Old Lakeview; Lakeview & Photinia; and Lakeview & Pockrus Paige. The applicant also proposes to construct subdivision signs on the masonry screening walls along Pockrus Page and Lakeview Boulevard. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to wall construction of signs located within right-of- way. Signs will conform to the standards set forth within the Development Code. Block Length and Cul-de-Sacs The applicant requests to deviate from the block length and cul-de-sac requirements of the New Code. This is in order to accommodate the realignment of Lakeview Boulevard and the existing street and block layout of the adjacent Preserve at Pecan Creek subdivisions. Block lengths will exceed the New Code standards and the cul-de-sac will not include a view corridor requirement. Deviation from the Development Code The applicant proposes to deviate from the Development Code in three areas: 1. Block length; 2. Cul-de-sac view corridor requirements; 3. Sidewalks within the cul-de-sac. Block Length The applicant proposes to exceed the block length as stated within the Development Code. The maximum block length is 600 feet for a street that is largely single-family residential, with an average lot width of 100 feet or less. The code indicates that this is not a requirement if adjacent properties are developed. Cul-de-Sac Cul-de-sacs are to be connected at the end to adjacent streets or common area by a minimum 30- foot view corridor. The applicant is requesting to deviate from this requirement. Sidewalk within the Cul-de Sac The Code states that all developments shall, within a dedicated right-of-way or easement, provide sidewalks between the ends of courtyard streets and cul-de-sacs. The applicant requests to deviate from this standard to accommodate the increased pavement requirement in the Development Code, while maintaining the Right-of-way width of the cul-de-sac that approved in the previous PD. If the sidewalk was moved to an easement along the curb, there would insufficient area for landscaping Staff Findings · The proposed amended Detailed Plan is consistent with the approved Concept Plan for Planned Development 132; · The NR-6 zoning regulations is compatible with the adjacent neighborhoods; · The proposed deviations from the subdivision regulations are reasonable considering the required retrofit of the design facilitated by the realignment of Lakeview Boulevard and given the existing utilities and roads built prior to the Mobility Plan Amendment for Lakeview Boulevard. · The development is in compliance with the New Code (excepting above). Staff Recommendation Based on above findings staff recommends approval of the requested Detailed Plan Amendment for Planned Development 132 with the following conditions: 1. Perimeter walls will be constructed in accordance with the standards set forth in the Development Code. The developer will be responsible for construction and the Home Owner's Associate will be responsible for maintenance. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to construction of walls located within right-of-way; 2. Landscaping, including street trees, will conform to the standards set forth in the Development Code; 3. Sidewalks will be provided along all public and residential streets. The sidewalks within this development shall conform to the standards set forth within the Development Code. Both four (4) and five (5) foot sidewalks will be provided and shall conform to the sidewalks on either side of the development. The change from four (4) foot sidewalks to five (5) foot sidewalks shall occur at intersections and/or driveways. 4. Signs will conform to the standards set forth within the Development Code. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to wall construction of signs located within right-of-way. 5. The developer shall permanently close the temporary access at Pockrus Page and Indian Paint Way with the first phase of development. ATTACHMENT 2 Location/Zoning Map NORTH Land Use Map ATTACHMENT 3 Notification Map 200' Notification Line NORTH Scale: None Public Notification Date November 30, 2004 200' Legal Notices* sent via Certified Mail: 35 Number of responses to 200' Legal Notice · In Opposition: 6 · In Favor: 0 · Neutral: 0 *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 ATTACHMENT 4 Site Photos Request for Planned Development Amendment The Preserve Section A2 Holigan Land Development requests that the Planned Development 132 (PD i32) zoning district with regard to the 24.861 acres described in Exhibit "A" (the "Subject Property") be amended according to the development standards and a new detailed plan (the "Detailed Plan") for the Subject Property attached hereto as Exhibit "B" and incorporated herein by reference: Two Options. Holigan Land Development requests that two options (designated as "Option 1" and "Option 2" on Exhibit B) be approved for the development of the Subject Property. Option 1 allows the development of single-family detached lots only. Option 2 allows the development of single-family attached (townhome) lots in addition to the single-family detached lots. Either Option 1 or Option 2 will be selected at platting. t Uses Permitted. The only uses permitted on the Subject Property are those uses permitted in the NR-6, Neighborhood Residential 6 District as set forth in the City of Denton Development Code as of the date of the adoption of this ordinance by the Denton City Council. 3. Detailed Plan. The Subject Property must be developed in general conformance with the Detailed Plan. Development Standards. The Subject Property shall be developed in accordance with the Development Standards set forth herein and on the Detailed Plan, except as amended in ordinance. Except as noted herein as variances from The Denton Development Code in force at the time of this request, and amended in ordinance, the development of the Subject Property will conform to the development standards in The Denton Development Code for single-family attached and detached housing in the NR-6 zoning category. 5. Density_:. The maximum density is six (6) units per acre. Masonry Wall, Fences, Berms.., ..etc., along Lakeview Boulevard and Pockrus Paige Road. A masonry wall, being eight (8) feet in height, must be constructed continuously along the east and west right-of-way lines for Lakeview Boulevard as set forth on the Detailed Plan. A masonry wall, being six (6) feet in height, must be constructed continuously along the south right-of-way line for Pockrus Paige Road as set forth on the Detailed Plan. Developer is responsible for construction of masonry walls which will be constructed in accordance with the development standards in The Denton Development Code. Developer wiI1 obtain a Right-of-Way agreement prior to constructing wall if wall is to be constructed in Right of Way. Landscaping: Because there are no protected (10+ inches) trees within the subject Property, mitigation shall not be required for development of the Subject Property. Landscaping will conform to the rules set forth in the landscape standards set forth in the The Denton Development Code except that townhome lots must provide at least 10% of 3676426vl 124531/00008 the lot area for landscaping. Street trees in the Subject Property will conform to the landscaping requirements of The Denton Development Code. Parks and Open Space: This Planned Development will become Phase III of the Villages of Carmel, which is located on the north side ofPockrus Paige Road as identified on the Detailed Plan. Parks and open space requirements for this Planned Development will be satisfied by the parks and open space within the entire Villages of Carmel subdivision (Phases I, II, and III). Common areas will be maintained by the HOA. Sidewalks: This Planned Development shall have 4' and 5' wide sidewalks, to conform to the sidewalks on either side of the development (sidewalks in the adjacent Preserve at Pecan Creek are 4' wide), as allowed by The Denton Development Code. Sidewalks shall be provided along all public residential streets. The change in sidewalk width from 4' to 5' shall occur at intersections, as allowed by The Denton Development Code. Sidewalks shall not be required on the cul-de-sac on Indian Paint Way in order to accommodate the requirements of the Fire Code, while still adhering to the City of Denton street design standards. 10. Streets, Alleys, Parking Lots, etc.: a. The street serving the block north of Photinia Avenue, between Lakeview Boulevard and Fox Sedge Lane, shall be considered a residential street under either the Option 1 or Option 2 development scenarios. If Option 2 is developed, the number of lots on this residential street shall be considered a variance from the requirements of The Denton Development Code. b. Streets shall be as shown on the Detailed Plan. Street locations are provided on the Detailed Plan. c. If Option 1 is developed, alleys and/or shared parking lots shall not be required in this Planned Development. d. If Option 2 is developed, alleys will be located at the rear of the townhome lots. Alleys will be residential alleys and will conform to The Denton Development Code. e. All single-family detached homes will be front-served, with front entry driveways and garages. f. If Option 2 is developed, townhome lots will be rear-served, with rear entry driveways and garages. g. Minimum parking standards consist of two parking spaces per residential lot. Garage spaces may be used to satisfy the off-street parking requirement for townhome lots. 11. Signs: Subdivision entrance monuments will be constructed at the following intersections: Lakeview/Old Lakeview; Lakeview/Photinia; and Lakeview/Pockrus Paige Road. Subdivision signs may be constructed on the masonry screening walls on Pockrus Paige Road and/or Lakeview Boulevard. All signs will conform to the requirements of The Denton Development Code. Right-of-way agreements will be obtained prior to constructing any signs with fight-of-ways. 3676426v1124531/00008 12. Block Length and .Cul-de-Sacs: This Planned Development shall vary from the New Code as follows, in order to accommodate the surrounding already-constructed streets and blocks (which are not constructed according to New Code) and to provide a more reasonable flow of traffic given the City-required placement of Lakeview Blvd within the Subject Property: a. Block lengths shall be as shown on the Detailed Plan. b. Cul-de-sacs shall be as shown on the Detailed Plan (300') and shall not require a 30' wide view corridor. 13. Townhome Lots: Townhome lots in this Planned Development will conform to the Denton Development Code requirements for attached single family dwellings, with the following exceptions: (i) Townhomes shall receive residential refuse service (instead of commercial service). 3676426vl 124531/00008 F !11~ IL'i ATTACHMENT 7 Written Responses from Property Owners Within 200 Feet of the Site Property Owner & Address Support / Neutral / Comments Oppose Opposed Veronica Alexander 4601 Baytree Avenue Criss Murdoch 4607 Baytree Avenue Marla Testerman 4510 Baytree Avenue Jack Cox 4508 Baytree Avenue Darin and Cindy Haddock Trisha Van Duser 4507 Baytree Avenue Opposed Opposed Opposed Opposed Opposed It is my understanding Town Homes will be built on the site increasing the population tremendously. This eliminates the peace and tranquility, which prompted me to buy my home in Denton. Also of great importance is the continuing decreasing property value. Not enough information regarding the type pf development i.e. home size, value, etc. Oppose plan if there will be town homes, condos or apartments built in my development. Based on the telecom (sic) with Chris Fuller on 11.22.04, whereas he stated the town homes were to be built on subject site. Strongly opposed to town homes, condos or apartments in our neighborhood. Property value of present homes has decreased already and too many homes are for sale in area. Bringing in lesser valued homes will continue to decrease current values of property. CondenseItTM 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 1 2 3 4 5 6 7 $ 9 10 ll 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 5 COMMISSIONER POWELL: Item No. 4 is a public hearing. Hold a public hearing and consider making a reco~mnendation to City Council on the following items. A -- nmnber 4A is a Detailed Plan for Planned Development for approximately 24,8 acres. The property is generally located on the south side of Pockrus Page Road on the east Page 7 approval with five conditions that are in your backup. Again, I wanted to point out that this proposed plan is as a result of that alnendment to tile Mobility Plan bringing Lakeview Boulevard ttu'ough here. We can go to the overhead. There are a couple of issues that you will hear about tonight from the residents. One side of Lakeview Boulevard, 116 residential lots. Mr. Reicl~hart. Ma. RU~CUU~tT: Thank you. We are looking at an mnendlnent to a Detailed Plan for PD-132. On the overhead is file project location. And what you're looking at now is the existing PD layout. And if you recall -- 7 8 ~9 10 11 12 of them is regarding Indian Paint Way, which again, is this road right hoc. In its current configuration, there's a temporary access up to Pockrus Page Road. In 2001, there was an amendment to the Detailed Plan, which allowed for that temporary access to exist. Prior to that with tile original improvement of thc excuse me a second -- Lakeview Boulevard prior to February of this year, the Mobility Plan had Lakeview Boulevard in this alignment, it's current alignment, if you will. h~ February of this year, City Council approved an amenthnent to our Mobility Plan which brings Lakeview Boulevard now up through this and then further north. So what we're looking at tonight is an amendment to tile Detailed Plan to acconmxodate file revision to tile Mobility Plan ['or Lakeview Boulevard. This is file land use, its neighborhood centers. Opposition is curreutly at 2.1 percent. Part of the Planned Development and here is the proposed alignment and here this vacant parcel right through here is the new Page 6 alignment for Lakeview Boulevard. And what the applicant 13 14 15 16 17 18 19 20 21 22 23 24 25 Detailed Plan, there was no access, direct acce.~s to Pockms Page. Pockrus Page went all the way through aud eventually lined up with Lakeview Boulevard. And the applicant at the time did get a variance for parameter paving. And the reasoning at the time, is there was very limited impact by the Preserve on Pockrus Page. And this temporary access was allowed with a following eo mnendment. And one of the concerns of some of the neighbors is that because they do lmve access at this time, riley should have done the parameter paving and done a lot o~' improvements to Pockrus Page. But, again, that was done through the PD amenchnent. The other issue is if -- and one of our Page 8 has tried to do is just amend the po to allow that. This road is currently in place. This is Indian Paint Way and you'll be hearing a little bit about that as we continue tl~rough this. The proposed development docs deviate from our Development Code at this time in three areas in its block length. And it's these two blocks right here excoed file 600 foot length. And, again, they're trying -- in its previous configm'ation, it did also exceed and, again, we're just trying to fit this in. The cul-de-sac view corridor at the end of Indian Paint Way, the new Code calls to have that open so you get some visibility into the subdivision. And then sidewalks within the cul-de-sac, again Indian Paint Way, the right-of-way was currently at 50 foot. Our pavement section has increased in the new code, so they're going to be able to acco~mnodate the pavement section in that right-of-way for emergency vehicles. But they are not going to be putting a sidewalk, they'll be dead-ending it on either side into tile cul-de-sac instead of carrying it all the way around. With that, we believe those -- those are fairly minor given thc consideration of Lakevicw Boulevard being put ttu'ough hoc now. And we are reconnncnding 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 conditions was a recommendation to close off that temporary access with tile first phase of the development. In order to get to Lakeview Boulevard, folks would have to come through and take a little bit more lengthy route in order to get through and get to Lakeview Boulevard. And there are some folks that want to maintain that access further. One of the -- our condition, based on the previous -- file most recent eo amen&riehl was to -- it was ahnost a two-phase to close off this access and require access up at Edwards at a future date. Those still -- atnendanents are still in place, if you will. Quite honestly, there was a -- transpo~afion requirements that have been brought flxrough all through -- all these PD phases. At the last mnendment it didn't get attached to the ordinance. We feel it's a very simple revision on our part to bring it forward and get that attached. But that was the intent at the time was to close off Indian Paint Way based on opposition, we've been hearing from folks out here, and then make this route available to everybody because that's already in place. The -- as you see in your backup, there are five conditions of approval that we're recmmnending Again, with a Planned Development, we can recotmnend and PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 5 - Page 8 CondcnsoltTM 5 6 7 8 10 11 12 13 14 15 I6 17 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 8 19 2O 21 22 23 24 25 Page 9 you can put conditions, any conditions you want on a Planned Development. That's why we do have some conditions. The applicant has seen these and is in agreement with these. Additionally, with the Planned Development, what they're doing, what you see on the ground or on the paper here, the lot sizes and thc configurations, what they'll build, and then they will go to our NR-6, what - all of the regulations and requirements of NR-6, the setbacks, the architectural details, street trees, all that, that's in the Code now, they will abide by those conditions as this build out this portion of the subdivision. I think -- I know you'll hear cormnents regarding the alignment of Lakeview Boulevard. And, again, in order for this aligmnent to change again, we feel there's two ways for that to happen, either a city initiated mnenchnent to the Mobility Plan, we don't feel that's going to -- is very likely considering we just amended it in February of this year. The other way is for somebody, it could be anybody, to bring forward an amendment to our Comprehensive Plan. The mobility plan is part of the Comprehensive Plan. They fill out an application, pay the fees, provide their justifications, and we would bring it through the public review process as we would any Comprehensive Plan. So really tonight, this aligmnent is not part of tile proposed Detailed Plan. It is in effect that it's part of the Detailed Plan. It's going through it and Page 10 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 11 16 Planned Developments that we carried over into tile new Code because it was relatively new at that time. COMMISSIONER ROY: And by making this change then the n~v section that's currently out there vacant -- MR. REICHHART: uh-huh. COMMISSIONER ROY: -- will be built according to the new Code, thc Ne-6 code? MR. REICHHART: well, I nleafl, [hey could have picked anything. But what they did was say, well, the NR-6 setbacks, tile NR-6 regulations is what we want to do. So instead of writing them all out separately, they simply said whatever your Code says about NR-6 is how we will build this. So it's already written down and with a lot of eD's, th~'ll identify all of their setbacks and roof pitches and how the houses will look and all of that. They're just saying we're going to meet your Code. COMMISSIONER ROY: okay. Thank you. MR. REICHHART: 'that was a simpler way to do it, quite honestly. COMMISSIONER POWELL: Any other questions of s~aff?. Mr. Strange. COMMISSIONER STRANGE: In our backup and then you had an also a slide of the current land use before the realignment of Lakevicw. Yeah, so in the Page 12 current PD, this was to be zoned or zoning was basically for residential application? MR. REICHHART: Yes. COMMISSIONER STRANGE: And how many lots were to be contemplated in the stone site versus this 115 how they address it, you know, they're proposing the brick walls and such, we feel is part of the ~'v. l~ut to align this in any other location isn't really part of this process. It could be moved within the eD, but it really ncc& to connect point A going through to Point B. I can answer any questions you have. I do know the applicant is present and th~ do have a presentation that will outline this process again. But I just did want to bring out those points because I know you will hear about them tonight. COMMISSIONER POWELL: Any questions of staff?. Mr. Roy. COMMISSIONERRO¥: ¥c..flh. Clarify please for me, this PD was approved quite some time ago. MR. REICHHART: Yes, sir. And I don't have the exact date. I can get the information. COMMISSIONER ROY: But pre the current Code? MR. REICHHART: YeS. And it was one of the 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 lots? for you. MR. REICHHART: I'll get that information COMMISSIONER STRANGE: okay. MR. REICHHART: 119. COMMISSIONER STRANGE: In here? MR. REICHHART: I believe it's 116 -- 115, I'm sorry. COMMISSIONER STRANGE: okay. So there's 115 in the current? MR. REICHHART: In the proposed. COMMISSIONER STRANGE: In the proposed? MR. REICHHART: 119 in the current. COMMISSIONER STRANGE: Okay. That's what I needed. Taank you. COMMISSIONER POWELL: Anything else for staff?. I have a couple of questions, then, Larry, if I may. MR. REICHHART: Yes, sir. COMMISSIONER POWELL: YOU said several PLANNING AND ZONIIqG MINUTES DECEMBER 15, 2004 Page 9 - Page 12 CondcnscltTM 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Page 13 times, NR-6, and I'm supposing what you meant by that is this is all single family development? MR. RE[CHHART: Yes, sir. COMMISSIONER POWELL: There are no aparUncnts? MR. REICHHART: NO, as a matter of ~act, and to clarify a little bit, too, when the Holigan folks picked up this parcel, and came in to talk to us about what they should do and what coutd be done, it was our recommendation that riley consider some town homes out there and especially along Lakeview Boulevard. And they tried a nmnber of different scenarios to try to get that to work. And given the constraints of the -- you know, they're locked in with how much land they have and where Lakeview is going and all of that, we just couldn't come up with a plan that was really conducive to file current existing -- where the utilities were, where the roads were. They did try a couple of different locations, again, at our suggestion. But they pulled that. Some neighbors were concerned about apartments or town homes. And they listened to the neighbors and said we'll just go straight single family, COMMISSIONER POWELL: okay. I know I'm beating this to death. But for the benefit of the people 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 15 MR. REICHHART: That is correct. COMMISSIONER POWELL: Thank you very much. Any other questions of staff?. Would the -- would the developer -- excuse me, would the applicant like to make a presentation? If you'd give us your name and address, please, MS. BUSH: My name is Mary Bush. I'm a project manager with Holigan Land Development. My address is 15950 North Dallas Parkway, Dallas, Texas, COMMISSIONER POWELL: Thank you, ma'am. MS, BUSH: The presentation that I'm going to give tonight goes over some of the inforumtion that Larry spoke to already. I wanted to start out with just a little bit of history. We are dwdoping a parcel to the north of this area that we're talking about tonight, which is called tile VilIages of Carmel and we intend for this area in The Preserve to become the Phase III of that development. So you will hear us refer to that as Phase III. Just, as I mentioned, some history, we originally accmnulatcd several parcels. This is north of Pockrus Page Road, the gray area that's oa the slide there, that is -- was originally intended to become VilIage5 of Cannel, Phase I, Phase a, and a Town Center. Basically, because of the issues Page 14 sitting out there and the people out looking at us, this is single family only, no multiple family, no town homes at all, period? MR, REICHHART: That is correct. COMMISSIONER POWELL: okay. And this alignment and size and description of Lakeview has nothing to do with these people, the people that arc asking for tiffs, they're building this, laying this out according to the Mobility Plan that has already -- it is already in place. We're not voting on the Mobility Plan tonight? MR. RE[CHHART: That is correct. COMMISSIONER POWELL: Or thc size of tile road or the construction of it or the location of it or anything like that? MR. R~[CHHART: That iS correct. And to clarify, Lakeview Boulevard is designed, ultimately, to be six lanes divided. Initially, the initial developments don't warrant that type of construction, so it will probably be two lanes for, you know, a nmuber of years until more and more development warrants additional lanes. COMMISSIONER POWELL: NOW, I know I'm beating this to death, but I want the people to understand that before people get excited. There is nothing we're doing tonight that has anything to do with the size or makeup of this street? 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 :22 23 24 25 Page 16 surrounding Lakcview, we decided to purchase tile additional tract that we're talking about tonight, tile Preserve Tract. The reason for that was because we had some issues with the previous developer in trying to coordinate our alignments through our property, tlu:ough their property and we found that it was easier and better for the citizens and for the City to go ahead and just purchase that, so that we could make a -- have a decision be made and it be finalized. And then one more parcel is the parcel outline there in yellow, which is adjacent to the Flower's Bakery. And this is also in the process of being purchased by us and this is to acconm~odatc an electrical easement for the City of Denton Utility Company. And the reason I'm mentioning that will be clear in just a few minutes. We did not inlend to purchase the addifioual properties. We decided to do so to acconm~odale the street and to provide some park area as well as the electrical casement to the west side. We are referring to those as Villages of Carmel, Phase III, the Preserve piece that we're speaking about tonight, and Phase ~vwhich is the Flower's Property. The Flower's Property will fulfill the park requirements for all of file Villages of Cannel, Phase 1, 2 and 3. So that's why I'm bringing it up PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 13 - Page 16 Conden selt m 4 5 6 .7 8 9 10 I1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 5 6 7 8 9 10 11 12 13 14 15 16 17 18 i9 20 21 22 23 24 25 Page 17 tonight. And then, of course, the very last bullet there, the alignment of Lakeview did require us to change the Derailed Plan and to reconfigure the lots. I think Larry has already covered this pretty clearly, but the diagram on the right side there talks about the existing Derailed Plan and where Lakeview would go if it were going Page 19 connection to the rail trail as well as open space for the residents. That's the end of my presentation. If there are any questions we'll be happy to answer them. COMMISSIONI~R I'OWELL: Any questions of the applicant? MS. CARPENTER: I have one. COMMISSIONER POWELL: staff has a question. right through that plan, you can see that it goes right tlu'ougl~ the streets and the lots, And then the new plan is on the other side with tile new alignmeut of Lakeview. The current plan in place looks like this. We've already seen it a couple of times, It's ad. iacent to built and plotted sections of The Preserve. So we're fitting in between two sections. Surrounding zoning is compatible to our NR-6 request. We've got NRMU, NRMU-12 and NR-6. ^nd the existing final plat as we mentioned earlier is 119 single family lots. Okay. Our changes are, again, to become part of Villages of Carmel, Phase m. we'll have 115 lots, single family detached units with no town homes or apartments of any kind, We have minor vahances from the Denton Code, which are what Larry spoke about already. These are related to the block length in order to fit into the existing development. Our building standards are those with 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 MS. CARPENTER: Hi, Mary. MS. BUS,: ~i, Kclly. MS, CARPENTER: On tho slide -- several slides back you referred to several variances, can you go back to that slide? MS. BUSH: Sure can. MS, CARPENIER: okay. It -- I think it's true that those are not variances. You didn't go to the Zoning Board of Adjustments. Those arc simply -- they are variances? MR. REICHHART: TO clarify, flue PD process does allow us to grant variances to the subdivision regulations through the vr~ process. So they really are variances to the subdivision regs. MS. CARPENTER: okay. That's what I wanted to clarify, they truly are variances. COMMISSIONER POWELL: But they can be approved here tonight? Page 18 The variances that we requested are both to fit into the existing subdivision as well as to help with the traffic flow on Lakeview. Residents expressed some concerns about having nmltiplo crossings o1' an eventual six-lane road. And so that's why we tried to keep the st~mt alignments the same as they were. And then cmmnon areas, NR application, there are some -- there are some promises to build masonry walls along Pockrus Page and Lakeview, Conunon areas will be -- like those will be mainrained by the HO^, 'this is our proposed plan. We've seen this already. It's 115 [ets of varying sizes, alt 50-foot wide, different lengths. The density is 4.6 units per acre, which is equivalent to what is currently planned. And then the open space requireanents, as I mentioned earlier, will be fulfilled by the new parcel that we're purchasing to the west, what we are calling Villages of Carmel, Phase IV, you can see the black arrow up at the top corner, pointing to an area, there's a heavily wooded area with a pond. We are in talks with Bob Tickner and Janet Simpson of the Parks Department. They am agreeable to exploring having a park over hem so we'll have some nice open space with some trees. In addition, this park area has access down to the Denton Rail Trail. So it would have direct 1 2 3 4 5 6 7 8 9 10 1! 12 13 14 ~5 16 17 18 19 20 21 22 23 24 25 Page 20 MS. CARPENTER; Right. That's what I was getting at. Thank you. COMMISSIONER POWELL: Mr. Roy. COMMISSIONER ROY: Yes. If I understand correctly, you're going to be in between two sections of a different developers property, you've purchased a unfinished part of Thc Preserve? MS, BUSH: COITect. COMMISSIONER ROY: okay. Vv2~cn you purchased that land for your dcvclopment and it's going to be part of this Villages of Cannel, did you take on coinmitments from Thc Preserve developer that lie had made to thc existing residents? MS. BUSH: uarold, do you want to adch'ess that? COMMISSIONER POWELL: oive us your name and address, please. MR. HOLIGAN: I'm Harold Holigan. I live at 53t0 Menders Lane in Dallas. COMMISSIONER POWELL: Thank you, sir, MR. HOLIGAN: And Pm flue owner of the development we're talking about. And I'm sorry. Would you remind repeating that question? COMMISSIONER ROY: when the residents of The Preserve, the big development of The Preserve, PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 17 - Page 20 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 ~16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 lO It 12 13 14 15 ~6 17 lg 19 20 21 22 23 24 25 Page 21 purchased their properties there, they had made representation to us in our backup package that they were promised certain tilings. And nay question is, when you purchased the undeveloped portion of The Preserve, did you then take on the responsibility for committing to fulfill the cotmniunents that were given to the citizens? MR. HOLIGAN: Yes, those associated with that Phase 2A, or Section 2A, they call it in The Preserve. And we have the doetm~ents that were signed with tile City and we're fulfilling those requirements. We also negotiated with thean to take that out of The Preserve and i 2 3 4 5 6 7 8 9 10 11 Page 23 ColLins and I reside at 2322 Houston Place, which is on the western section of urban Denton as we know it near the downtown area. I may be here on a wrong Agenda because the newspaper advertised this was to be -- give the input about the Development Code itself, and I sec there's a specificity of a particular development project that apparcaltly we're expected to address. Did I misunderstand file newspaper? COMMISSIONER ?OWELL: YeS, sir. You're just at the wrong time of the evening. You're in the right church -- you're in the right church, the wrong pew, to make it a part of Villages of Cannel. And we have signed documents on that. COMMISSIONER ROY: okay. Thank you, sir. MR. HOLIGAN: okay. Any other questions.'? COMMISSIONER POWELL: Any other questions of the applicant? I don't see any here. Thank you, sir. MR. ItOLIGAN: xhank you very much. COMMISSIONER POWELL: seeing no more questions of tile applicant, I will open the public hearing 12 13 14 15 16 17 18 ~19 20 sir. Give us another half hour or so and we will be with you. MR. COLLIrCS: vll be back in a half of hour. Sorry to take up this time but that's what I was going on by your. staff, and I called today earlier. COMMISSIONER POWELL: I understand, sir. Betty Cox followed by Maureen Jamail. Give us your name and address, please. MS. COX: okay. My name is Betty Cox. My and I have cards from people who would like to speak. But before I bring you up here, I want to point out that we're only going to be discussing what's on the Agenda tonight. We're not discussing the width of the road or the placement of the road or anything like that. That's not Page 22 21 22 23 24 25 address is 4508 BayTree and our property at the moment backs up to Indian Paint. I would like to bring to the attention problems that we've observed there with Indian Paint being open at Pockrus Page. At the top of the hill as you're approaching to turn on to Indian Paint, there is Page 24 part of the ball game tonight. WJ. Rosdale, and followed by Mr. Tom Collins. If Mr. Collins would come down and sit in the on-deck chair~ I would appreciate it. Yes, sir. Give us your name and address. MR. RODDY: GOOd evening. I'm WJ. Roddy. I live at 4135 Ridge Lane in Denton. COMMISSIONER POWELL: YeS~ sir. MR. nODDY: over there on Swisher Road just right where Edwards runs into it. And I'm really enthused to have that because we need a way to get the traffic out of that area. So anything that would help bring in that. And it seems like they have a beautiful proposal. Now, I've been living out there for 20 years. I'm not a newcomer in that area, so we do need the traffic out of there. And that would be a good way to get it out. I appreciate it. COMMISSIONER POWELL: Thank you, sir. And I'm son'y I mangled your name, sir. MR. ROODY: That's all right. I appreciate it. COb.,~j.IISSIONER POWELL: Mr. Collins followed by Betty Cox. If Ms. Cox would come down and sit in the on-deck chair. Give us your name and address, sir. MR. COLLINS: Good evening. My name is Tom 1 2 3 4 5 6 7 8 9 t0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a hill. And as you approach that and you're turning, you cannot see over the hill, the traffic that's approaching you. So when which you go to turn, you're never quite sum that it's clear. And there's been at least three accidents at that corner. We haw had problems there as well as with speeding. One day I was coming down Indian Paint with a car which was approaching me on the opposite lane at tile speed limit. Ali of a sudden a young man came up behind that car, pulled into my lane to pass because he didn't sm me, and I had to pull off the road. We have had many residents that live there have compIained that trying to back out of their driveways, they have been nearly broadsided by cars because they are speeding. And we've called and reported it to the police and all. But we have had that as well as problems at night with young people coming down the road. We find evidence of partying that has gone on at file side of thc road there at night. We've heard it. And so, therefore, we have found it -- because it's in our backyard to be a problem. COMMISSIONER FOWELL: well, ma'am, if I understood staff correctly, that intersection is going to be shut off. MS. COX: Yes. I'm hoping that's what will PLANNING AND ZONING MllqUTES DECEMBER 15, 2004 Page 21 - Page 24 CondenseltTM 1 2 3 4 5 6 7 8 9 10 1I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 be approved, absolutely, because we -- like I said, we have had these situations that I kind of just wanted you to know about. COMMISSIONER POWELD Thank you, ma'am. MS, COX; YOlk're wel¢olne. COMMISSIONER. POWELL: }daumen Jmnail Page 25 Page 27 MS. WIELAND: YeS. But I was addressing the widening of Lakcvicw, and so you're saying that that's not being discussed this evening? COMMISSIONER ~'OWEt,t,: The widening of Lakeview is not on the Agenda and we're not discussing it. MS. W[ELAND: okay. So I'm out of order. followed by Kevin McConnaek. If Mr, McConnack would crone down and sit in the on-deck chair. Ms JAMArL: Good evening. My name is Maureen Jmnai[. I live at 4208 Boxwood Drive, Denton Texas 76208. Thank you, Chairman Powell and Planning and Zoning Conunissioners for hearing me this evening, i was very pleased 1o hoax thai we were no! going to be revisiting lhe Lakeview Boulevard issue tonight as you me 7 8 9 10 11 12 13 14 COMMISSIONER POWELL: Thank you. Yes, sir. I've held you up here a long time. Could we have your name and address, sir? MR. MCCORMACK: GOOd evening, Couunission and staff. My name is Kevin McCormack and I live at 3031 Swisher Road, in Denton. My house is adjacent to The Preserve and the Pecan Creek Elementary School. I have followed and have been a part of this Preserve Development all vely awa~e of the fact that two years, numerous meeling, voluminous e-mai[ messages and a plethora of hours went into making that decision. And I think lhat alt involved realty did the best job they could for majority of lhe people in the City of Denton. I mn here this evening in support of the proposed plal ameudmenl and design associated with the public hemming for a ?D-t3Z Harold Holigan and the 15 16 17 18 19 2O 21 22 since its approval by the CounciI November 18th, 1998 and it is a beautiful development and we are proud to be located near it. However, there are a couple of issues that remain. And I'd like to address them tonight. Nmnber one, is the extension of Edwards Road eastward to tie into Lakeview Boulevard. That's this yellow section right here from Swisher Road on over to the existing Lakevie~v Holigaa Development Group have a wonderful concept in the future development of the Villages of Cannel The Hoiigan Group has proposed a carefully planned development that Page 26 once built out will add to the promise of this area of Denton, As you know and has been iIlustrated here this evening, The Preserve at Pecan Creek and the Villages of Carmel will be neighboring conmmnitles. As a resident of Tile Preserve at Pecan Creek, I am excited at the prospect of having this development neighbor ours. I've spoken to many other residents of The Preserve, and all that I have spoken to have expressed the same sentiment that I am sharing with you-all here this evening. We are delighted to have the Villages of Cannel as our neighbor and are very happy to support the proposed single family homes that are planned for this area and that are being discussed here this cvcning. I would like to encourage you-alt to support this proposed change. In doing so, you will be furthering tile positive development taking place in tile southern region of Denton. Thank you very much for your time this evening. COMMISSIONER POWELL: Thank you, ma'am. Mr. McCormack followed by Janice Randel. If Ms. Randcl would -- Ms. Randel is not going speak. Followed by Jennifer Focke. Jennifer Focke, not going to speak either. Followed by Janice Wioland. Is them a Janice Wieland here? 23 24 25 1 2 3 4 5 6 7 8 9 10 11 Boulevard. This extension was supposed to be itl place by the time the Pecan Creek Elementary School opened. The school is now in its second year of opea'ation. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 28 On April 1 ith, 2001, the Planning and Zoning reco~mnended 01-003 to Council to accept an amended concept plan that did not include the Edwards Extension as was originally planned. I feel like this was a huge oversight as the developer had intended to build this extension in tile beginning. And now there is no connectivity for Lakeview and it currently dead-ends at a swiimning pool. Currently all eastbound Edwards Road traffic is now directed onto Swisher Road and has to wind through this development on Indian Paint Way to reach 1-35. I don't believe anyone wants this kind of traffic trend to continue. My second point is on June 13th, '01, the Commission recolmnended Z-01-006 that granted the developer a variance to not to have to improve tho section of Pockrus Page running between Indian Paint Way and the rear entrance of the Pecan Ch:ok Elementary School. That's this other little circle here, section from Indian Paint over to the rear entry. This was granted to save the developer about $80,000.00 and because the development would not impact Pockms Page Road at all with any connectivity. A few weeks after this was approved, planning required thc developer to pave and open up hldian Paint Way onto Pockrus Page to provide connectivity. Ihn sure thc PLANNING AND ZONING MiNUTES DECEMBER 15, 2004 Page 25 - Page 28 CondcnscltTM lO il 12 14 17 18 19 20 21 22 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 29 Conmfissioa recognizes the fact that the residents of Denton want the road infrastructure in place before any development receives any building permits. In smmnary, I respectfully reconunend that the Comanission -- recommend to the Co~mnission that the following imprownents be a part of a Detailed Plan, Z-04-0024. One, the extension of Edwards Road eastward to tie into Lakeview Boulevard being placed before building begins. And, two, the portion of Pockrus Page between Indian Paint Way and the rear entry to the school be improved to city specs including the brick walls before the housing begins. Maybe staff can shed some light on this. COMMISSIONER POWELL: Thank you very much, s Jr. MR. MCCORMACK: YeS, sir. Thank you. COMMISSIONER POWELL: I will ask staff if riley have any conunents on that before we go back to the applicant. MS. CARPENTER: Mr. Chairomn, I'd like to call David Sahnon, who's tile City Engineer, down to address the questions. COMMISSIONER POWELL: Thank you, Mr. Salmon. MR. SALMON: Good evening. The Preserve Page 30 Planned Development originally required Edwards Road to be connected to Lakeview Boulevard. And actually that requirement is still in place for a later phase of the Preserve. I believe it's one of the -- I believe it's associated with some of the phases at tile north end of what -- the existing alignment of Lakeview Boulevard. When Pecan Creek Elementary School was constructed, Planned Development was revisited and an amendment was proposed and ultimately approved by the Planning and Zoning Coumlission and the City Council to close the connection of Pockrus Page Road over to Lakeview Boulevard. And in the original et), that closure would have triggered the extension of Edwards Road. But during that revision process, that trigger was taken out of the et~, and, instead, the developer was required to make a ~nporaw connection on Indian Paint Way. So that's how that happened. The connection to indian Paint Way is a te~nporary connection that was specified during a vt) amendment and it was to take the place teanporarily of extending Edwards Road over to Lakeview. Tile variances that wet~e granted with respect to parameter paving and Pockrus Page Road were granted with the condition that there were going to be no internal streets within the Preserve that would have direct access to Pockrus Page Road. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ~9 20 21 22 23 24 25 Page 31 During that Po amenchnent that I mentioned previously, the Planning and Zoning Conmfission and the City Council both voted to allow a temporary connectiox~ of Indian Paint Way which does actually provide a direct connection between The Preserve, but it was intended to be temporary. And it was simply to replace a connection that was being removed in order to build the elementary school. So that really had no -- really had no effect on file variance that had beeo previously granted. I can try to answer the questions or if there's anything else regarding those issues that you want to ask, I'I1 be glad to answer those.. COMMISSIONER FOWELL: MS. Holt has a question, I think. COMMISSIONER HOLT: YC,$. 1V[r. Sahnon, what is the time line on the Edwards Road extension? MR. SALMON: The Edwards Road Extension is connectvod to development of specific tracts at the north cad of the Preserve. And I don't remmnber the specific tracts, but I think there's three or four tracts at the very north end of The Preserve. And if any one of those tracts are developed, then Edwards Road will have to be extended at that time. But those are tracts that are not currently -- fllere are no development proposals on any of those tracts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 i7 18 19 20 21 22 23 24 25 Page 32 COMMISSIONER HOLT: SO nothing will be done until those tracts go in? MR. SALMON: COITect. If ally one of those three or four tracts at the very north end were to be developed, then that would be triggered, and they would have to extend Edwards Road. COMMISSIONER HOLT: Thank you. COMMISSIONER POWELL: Mr. Roy. COMMISSIONER ROY: I have two questions. One was following up on Mrs. Holt's point. Is there any logical tie-ia between what we're considering tonight and the advancement of the Edwards Road connection to Lakeview Boulevard? Something we are approving tonight or possibly approving, is there any relationship? I'm straggling MR. SALMON: well, thc piece of property that we're talking about this evening is part of the original Preserve Planned Development. t mean, I suppose that's what the connection is. You know, we're talking about a piece of property tonight tha~ was originally part of the Preserve ?v. And we're talking, specifically, about the piece whc~re the ~nporary connection of Indian Paint is located. So, in essence, I mean, this particular amenchnent to file i'D will do away with that temporary PLANNING AND ZON1NG MINUTES DECEMBER 15, 2004 Page 29 - Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 ~10 ii 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CondcnscltTM Page 33 connection. So if this amenchnent were approved, it will do away with the temporary connection on Indian Paint Way and it specifically does not require any other connectivity to Lakevicw Boulevard other than what would be provided through the subdivision and some of the other existing street~. COMMrSSIONE.R ROY: okay. My second question, you explained that the connection between Pockrus Page to Lakeview Boulevard was dropped specifically by an action, the P & Z and the City Council. I didn't understand why it was dropped. MR. SALMON: The Pockrus Page Road, the old aligmnent of Pockrus Page Road goes right through the middle of Pecan Creek Elementary School Building. So in 1 2 3 4 5 6 7 8 9 10 11 t2 13 14 order to build that building, they had to amend the and the solution at that time was to provide the temporary connection on Indian Paint. COMMISSIONER ROY: NOW, I understand. Thank you. COMMISSIONER POWELL: MS. Holt. COMMISSIONER HOLT: Thank you. If we close up the end of Indian Paint until Edwards is completed, what's that going to do to the traffic problem? MR. SALMON: If someone were driving on Pockrus Page Road and wanted to get over to Lakeview to Page 35 were on the overhead earlier were actually diagrams of the Villages of Carmel which is a different development. It's not The Preserve. COMMISSIONER STRANOE: But do you have something there that shows file alignmcnt of Edwards Road so we can see where exactly we're talking about this? MR. SALMON: okay. This key map hem shows the remain - or at least a portion of the remainder of The Preserve. And Edwards Road is located right there. And this is the proposed extension. There is no road there right now. Swisher Road mas north and south along this property line. And then Edwards Road continues west. When any -- I think there arc two or tiptoe, maybe four Page 34 ultimately access 1-35, they would have to come to an existing street that's located in Phase A-3 of The Preserve and then jog across. This is an existing street, 15 16 17 18 19 20 21 22 23 24 25 and then dowa~ Indian Paint. So the connection that we're talking about closing is up at the north end of Indian Paint. There would still be a physical way to get from Pockrus Page to Lakeview Boulevard. It just becomes more circuitous. COMMISSIONER HOLT: NOW, that's Pockms Page up at the top? MR. SALMON: correct. COMMISSIONER HOLT: Okay. Thank you. COMMISSIONER POWELL: Any other questions of staff here? Thank you, sir. COMMISSIONER STRANGE: I have one. pieces of The Preserve that are north of Edwards Road and including the section immediately south of Edwards Road, that if any of those pieces of The Preserve up at the far north end were developed, they would have to build at least a portion of that extension. So the idea is that if any of the northern portions of Thc Preserve were to be constructed, there would have to be construction of Edwards Road. COMMISSIONER STRANOE: SO these other Villages of Carmel are going to be west of that -- MR. SALMON: YeS, Villages of Carmel that Page 36 we looked at earlier on the screen is off to the west. COMMISSIONER STRANGE: But they don't get as far over even as the end of that extension? 4 5 6 7 8 9 10 11 12 13 14 15 way over would be tlmee, 400 you. COMMISSIONER POWELL: oh, I'm sorry, Mr. Strange. I didn't see your name up here. COMMISSIONER STRANGE: IS my light on? COMMISSIONER POWELL: It'S here now. COMMISSIONER STRANGE: YOU aLii.Ideal to the fact that the future alignments are the ones north. And we saw one of those diagrams earlier with all of that gray area shown above this. Is that the phases you're talking about? MR. SALMON: NO. 1' think the diagrams that MR. SALMON: NO. They don't come ail the to Swisher Road. COMMISSIONER ST_RANGE: okay. Or to what the end of the proposed -' MR. SALMON: NO. COMMISSIONER STKANGE: -- Edward extension? MR. SALMON: NO. They~lB a couple, two, feet away from that. COMMISSIONER STRANOE: All right. Thank COMMISSIONER POWELL: Mr. Roy. COMMISSIONER ROY: SO ~e requirement to 16 17 18 19 20 21 22 23 24 25 extend Edwards Road over to Lakeview is a requirement for the developer of The Preserve, not a requir~nent for lhe developer of the Villages of Carmel; is that correct? MR. SALMON: That's correct. Now, that's not to say that if when tile developer of the Villages of Cannel does a ~IA for some of the fumm phases, that's not to say that if file traffic impact analysis showed a need for additional access, that that couldn't be required at that time. But we're not there yet. So there's more than one way to get that connection made, but right now, PLANNING AND ZONIIqG MINUTES DECEMBER 15, 2004 Page 33 - Page 36 CondcnseltTM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 6 7 8 9 10 it 12 I3 14 15 16 17 18 19 20 21 22 23 24 25 Page 37 tile only existing trigger is continued development of The Preserve. COMMISSIONER ROY: well~ just as a colrhmeut, it would make sense to me that that connection be made. It looks tike to everyone's benefit, the Villages of Cam~el and The Preserve, but that's not the issue before us, I guess. Thank you. COMMISSIONER POWELL: Any other questions of staff here? Thank you, sir. Before 1[ close the public hearing, I want to make sure I've given everybody an opportunity to speak. Is them anybody else that would like to speak for, against or on this issue? Ma'mn, please come forward and give us your nmne and address. MS. FOCKE: My name is Jennifer Focke. I live at 6016 Photinia Avenue in The Preserves of Pecan Creek. And I originally came to talk about Lakeview Boulevard, but as I've heard I will defer to that at this time. But Mr. Sahnon was talking about if the Edwards Road were to go through, that he would change -~ the Pockms Page would come down and cut through and there are some existing houses is what my concern was. And I understand other persons' concerns with the closing of what's now Indian Paint Way, but my concern now is that I live over here and that there are -- the traffic patterns Page 38 would just -- this is really all in relationship to Lakeview, but I just would like people to take into consideration that the traffic pattern bringing it through here, is that this is all -- oh, dais is actually Fox Ledge. I thought this was farther west. Okay. Because my understanding is that this area right here all has houses, but I thought we were farther west. So I apologize. COMMISSIONER POWELL: Not a problcal. MS. FOCKE: Never mind. COMMISSIONER POWELL: You're hel~ to get your questions answered. Anyone else want to speak on this issue? Seeing no other speakers, I will close the public hearing and I will ask the applicant if he would -- he or she would like to rebut anything that was brought up to this point? MR~ HOLIOAN: Again, my name is Harold Holigan. And I'm the developer. I think a couple of questions came up as to when that particular road is going to be extended across to Lakeview. Thafs Edwards Road extension and The Reserve came in and the City approved a revised plan on 3-22-01 and on it Item No. 14 required transportation improvements is Iteln 14 is construct Edwards Road between Swisher Road and Lakeview Boulevard as a 36 foot back-to-back street, six inches thick asphalt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 39 or concrete with no parking or direct driveway access. And triggered by the development of tract L, N or O in The Preserve. And so when any one of those tlwcc tracts are going through to be approved, then Edwards Road is supposed to be -- they're going across there. The second item I'd like to point out as Betty, one of the speakers from The Preserve pointed out, the Paint Way today going into Pockrus Page is an accident waiting to happen, and it has happened on many occasions as silo pointed out. And if you go out there and drive, you're down in a lull as you're going west on Pockrus Page. And when you tuna into Paint Way, it's on a hill and as you're pulling up to make the left to go into Paint Way, you don't see the cars coming west -- coming east on Pockrus Page. And that's why there's been three bad accidents. And I really believe there's been more than three. But Betty is aware of at least three fairly serious accidents there and this takes care of that problem. The other situation is when we started with this development and we got with both The Preserve and the City, and we got with the homeowners group -- we've been meeting with the Preserve Homeowners Group now. And they're in favor of closing it off. The City told us that they were in favor of closing it off and both parties 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 40 requested we close it off and put a cul-de-sac. And as the staff pointed out, that that was always the plan to close that off. And so what we're trying to do is accomanodate what the City had requested, and what the Homeowners CJroup out there has requested. But I also drink from a traffic viewpoint, it's the right thing to do. Thank you very much. COMMISSIONER POWELL: stay here a second, sir. I've got a question. I don't know if anyone else does or not. There's five conditions that staff has put on this. I assume you've read them. MR. HOLIGAN: YeS. COMMISSIONER POWELL: And I'm assuming that you're for them? MR. HOLIOAN: YeS, I am. COMMISSIONER POWELL: I didn't want you to get away without making sure of that. MR. HOLIGAN: NO~ sir. I'm in favor of this. COMMISSIONER POWELL: Thank you very nmch. MR. HOLIOAN: Thank you. COMMISSIONER POWELL: I have closed the public hearing and the applicant has had time to rebut, and I guess now it's time for the Co~mnission to discuss or a motion or both. Ms. Holt. PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 37 - Page 40 CondenseltTM 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I6 17 1§ 19 20 21 22 23 24 25 Page 41 COMMISSIONER HOLT: I move approval. COMMISSIONER I'OWELL: ! have a motion for approval by Ms. Holt. COMMISSIONER STRANGE; second. COMMISSIONER WATKINS: S~:ond. COMMISSIONER POWELL: I have a second by Mr. Strange. He beat out George th~m a little bit. Is there any discussion -- staff. MR~ REIC~e~A~X: TO clarify, with staff conditions? COMMISSIONER HOLT; with staff conditions, Prn sorry, MR. REICI-IHART: Thank yoU, COMMISSIONER POWELL: Thank you~ Mr. Reickhart, Any discussion on this? Mr, Watkins. COMMISSIONER WATKINS: Thank you, Mr. Chairman. The thing that confused me was the new Lakeview Boulevard. We're talking about two Lakeview Boulevards, And most of the talk has concerned connecting up the old Lakeview Boulevard. It s~ems to me that the one we'm talking about now, I saw a gre~ Crayola mark here, there, and yonder, but when you get down to it, with the new Lakeview Boulevard, you'll go right straight to it and it wiR open it up. So even though I didn't get to second the motion, I'm going to vote for it. Thank you, Mr. Chairman, COMMISSIONER POWELL: Mr. Roy. COMMISSIONER ROY: To me, the only real negative issue on this item that was brought up was the absence of the expected Edwards Road extension to Lakeview, to the old Lakeview Boulevard. But it's clear now what will trigger that. And while I understand the citizens' concern about that issue, you know, that's not really what we're dealing with here. We are dealing with the issue at hand, not that particular road. So I'm going to support the motion. And I believe one of the things to think about, at least, in my mind is that the chances of that Edwards Road being extended over to the old Lakeview Boulevard is probably going to happen before the new Lakeview Boulevard is built. I'm guessing that's going to be the -- what's going to happen because of thc cost. So I think that's one of the reasons to be concerned about getting over to the old Lakeview Boulevard. Thank you. COMMISSIONER POWELL: Any other discussion? I see nothing on the board. Based on that, and since we have a motion and a second, no matter who seconded it, I'll ca[[ for a vote. Motion passes 6 to 0 of those present, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25 Page 43 Page 44 PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 41 - Page 44 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR APPROVAL OF A DETAILED PLAN FOR 24.8 ACRES LOCATED WITHIN PLANNED DEVELOPMENT 132 (PD-132) ZONING DISTRICT; THE SUBJECT PROPERTY IS GENERALLY LOCATED ON THE SOUTH SIDE OF POCKRUS PAGE ROAD, ON THE EAST SIDE OF LAKEVIEW BOULEVARD IN THE CITY OF DENTON, DENTON COUNTY, TEXAS;PROVIDING FOR A PENALTY IN THE MAX]IVIUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABIL1TY CLAUSE AND AN EFFECTIVE DATE. (Z04-0024) WHEREAS, on November t7, 1998, by Ordinance 98-394, the City Council approved a Concept Plan for 427.6 acres of land to Planned Development 132 (PD-132) zoning district; as more particularly described therein; and WHEREAS, on April 14, 2004, Holigan Land Development, Ltd. Applied to provide a Detailed Plan for 24.81 acres of land located within PD-i32 and more particularly described in Exhibit "A" attached hereto and made a part hereof as Exhibit "A" (the "Property"), said Detailed Plan being on file in the offices of the City's Planning Department, a copy of which is attached hereto and made a part hereof as Exhibit "B" (the "Detailed Plan'); and WHEREAS, on December 15, 2004, the Planning and Zoning Commission recommended approval of the Detailed Plan; and WHEREAS, the City Council fmds that the Detailed Ptan is consistent with the approved Concept Plan for PD-132; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorPorated herein by reference. SECTION 2. Ordinance No. 98-394 providing for the approval of an mended Concept Plan for the Planned Development Zoning District Classification and Use Designation for the property described as PD-132 is amended by approving the Detailed Plan for the Property with the following conditions. 1. Perimeter walls will be constructed in accordance with the standards set forth in the Development Code. The developer will be responsible for construction and the Home Owner's Associate will be responsible for maintenance. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to construction of walls located within right-of-way; 2. Landscaping, including street trees, will conform to the standards set forth in the Development Code; 3. Sidewalks will be provided along all public and residential streets. The sidewalks within this development shall conform to the standards set forth within the Development Code. Both four (4) and five (5) foot sidewalks will be provided and shall conform to the sidewalks on Page 1 either side of the development. The change from four (4) foot sidewalks to five (5) foot sidewalks shall occur at intersections and/or driveways. 4. Signs will conform to the standards set forth within the Development Code. The developer will also be required to obtain the necessary Right-of-Way Agreements prior to wall construction of signs located within right-of-way. 5. The developer shall permanently close the temporary access at Poekms Page and Indian Paint Way with the first phase of development. 'SECTION 2. The provisions of this ordinance as they apply to the Property, shall govem and control over any conflicting provisions of Ordinance No. 98-394, but all the provisions of Ordinance No. 98-394, as they apply to that remaining portion of the district not herein amended, shall continue in force and effect and shall apply to the remainder of said district. SECTION 3. The City's official zoning map is amended to show the approval of the detailed plan. SECTION 4. Anyperson violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 5. This ordinance shall become effective fourteen (14) days fi'om the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the __ day of ,2005. EULIN BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: BY: · (t / Page 2 Exhibit A EXmB~T *A~ .M~S ~o ~o~ D~SCmPI~O~ AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Planning and Development Department Jon Fortune, Assistant City Manager SUBJECT - Z04-0045 (Renaissance Court, Zoning Change) Hold a public hearing and consider adoption of an ordinance rezoning approximately 12.5 acres from Neighborhood Regional Mixed Use 12 (NRMU-12) zoning district to Neighborhood Regional Mixed Use (NRMU) zoning district, with an overlay. The property is located on the south side of Hickory Street, on the west side of Ruddell Street. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Applicant: Isbell Engineering Group, Inc. Sanger, TX The applicant is requesting the zoning change in order to meet the mandatory density as required by the terms of the tax-credit financing for the affordable housing development. The NRMU zoning district would allow the applicant to develop the necessary 150 units per the financing terms. The applicant is proposing an overlay to permit only multi-family uses, to permit only 150 residential units, and to amend the side yard setback adjacent to single-family uses or districts. The overlay would not allow any development other than multi-family uses, no more than 150 residential units, and reduce the side yard setback from 20 feet to 15 feet plus one foot for every foot over 20 feet of building height. This request is in conjunction with Z04-0046 (Specific Use Permit) and ADP04-0006 (Alternative Development Plan). Public notification and property owner responses are provided in Attachment 3. As of this writing, staff has received no written responses in opposition from property owners within 200 feet of the subject site. OPTIONS 1. Approve as submitted. 2. Deny. 3. Postpone consideration. 4. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval (6-0). ESTIMATED PROJECT SCHEDULE The subject property is platted. PRIOR ACTION/REVIEW The following is a chronology of Z04-0045: Ordinance 2002-040, adopted February 2002 placed the subject property in the Neighborhood Regional Mixed Use 12 (NRMU-12) zoning district and land use classification. Prior to the adoption of the Development Code (Ordinance 2002-040), the property was zoned Multi-Family. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map) 4. Letter from Applicant 5. Zoning Exhibit 6. December 15, 2004 Planning & Zoning Commission Meeting Minutes 7. Draft Ordinance Prepared by: Chris Fuller Planner II Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development ATTACHMENT 1 Staff Analysis Summary_ of Zoning Request The applicant is requesting to rezone approximately 12.5 acres from a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district to a Neighborhood Residemial Mixed Use (NRMU) zoning district, with an overlay to permit only multi-family uses and to permit only 150 units and to modify the buffer requiremems. Multi-family residemial uses are proposed. Existing Condition of Property The subject property is developed as the 177-unit Phoenix Apartmems, which are curremly vacant. Adjacem Zoning North: Neighborhood 4 (NR-4) zoning district South: Neighborhood Residemial Mixed Use 12 (NRMU-12) zoning district East: Community Mixed General (CM-G) zoning district West: Neighborhood Residemial 4 (NR-4) zoning district The Denton County Courthouse and Denton County Criminal Justice facilities are located to the east of the subject site. The properties to the west and north are developed as single-family residential uses along Hickory Street. Comprehensive Plan Analysis The subject site is located in an "Existing Land Use" future land use area. New developmem in this district should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. The request to rezone the subject property is compatible with the Future Land Use Plan (Existing Land Use) and with the surrounding zoning designations. The proposed zoning change is in compliance with the Denton Plan. Developmem Review Analysis Transportation The property will be accessed by Ruddell Street and Hickory Street. Public Infrastructure Adequate utilities exist to service the proposed development. Development Code / Zoning Analysis The applicam is requesting the zoning change in order to develop the property for multi-family residential uses. Based on the current NRMU-12 zoning district, 12 dwelling units are allowed per acre. Typically, this would allow the 12.5-acre tract to have a maximum of 150 units; however, 1.8 acres of the parcel was dedicated as right-of-way with the original plat in 1969, known as Dreamland Addition. Though never constructed, the right-of-way dedication reduced the overall property acreage to 10.7 acres for calculating density. The applicam is proposing to rezone to an NRMU zoning designation, which would allow a maximum density of 30 dwelling units per acre or 321 dwelling units. The applicant is proposing an overlay to permit only multi- family uses and to permit only 150 dwelling units. The DeNon Housing Authority received tax- credit financing that requires a minimum of 150 units to be developed. Therefore, the applicant is requesting to rezone to an NRMU designation in order to achieve the 150 dwelling units needed for financing. The overlay would reduce the side yard setback from 20 feet to 15 feet plus one foot for every foot over 20 feet of building height. The chart below illustrates the difference between the zoning districts. Limitations for each use are explained below the chart. Note, the applicant is proposing an overlay to permit only multi- family uses. Single Family Dwellings P N Accessory Dwelling Units L(1) N Attached Single Family Dwellings P L(40) Duplexes P N Group Homes SUP SUP SUP Multi-Family Dwellings P L(4) Hotels N P Bed and Breakfast L(10) P Retail Sales and Service L(15) L(17) Restaurant or Private Club N L(11) Drive-through Facility N SUP Professional Services and Offices L(14) L(17) Quick Vehicle Servicing N SUP Administrative or Research N L(14) Facilities Broadcasting of Production Studio N L(14) Semi-public, Halls, Clubs, and L(15) P Lodges Business / Trade School N L(14) High School N SUP Medical Centers N P Maximum density, dwelling units 12 30 per acre Maximum lot coverage 60% 80% Minimum landscaped area 40% 20% Maximum building height 40 feet 65 feet Limitations: L(1): Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform to the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000sq. ft. GHFA. 4. One additional parking space shall be provided that conforms to the off-street parking provisions of this Chapter. L(4): Permitted as part of a mixed use development of ten (10) acres or more and only in conjunction with office, retail or other permitted commercial or institutional uses. L(10): All restrictions of L(8), but limited to no more than 5 guest units. L(11): Limited to sit down only, and no drive up service permitted. Limited to no more than 100 seats and no more than 4,000 square feet of restaurant area. L(14): Uses are limited to no more than 10,000 square feet of gross floor area. L(15): Uses are limited to no more than 5,000 square feet of gross floor area per lot. An SUP is required for additional square footage for Semi-Public Halls, Clubs and Lodges. L (40): Limited to a maximum 12 units per acre. The limitations listed above regulate the specifics of each use allowed within the zoning district. Any proposed development on this site is required to be in compliance with the site design standards of the Development Code. An approved site plan for the proposed development will be required prior to the issuance of any building permit. Staff Findings · The proposed overlay will permit only multi-family development; · The proposed overlay will permit only 150 dwelling units, which is fewer than existed originally; · The proposed zoning change is compatible with surrounding zoning designations; · The proposed zoning change is compatible with the Future Land Use Plan; · The proposed zoning change is compliance with the intent of the Denton Plan. Staff Recommendation Based on the above findings, staff recommends approval of the requested zoning change with the overlay. ATTACHMENT 2 Location/Zoning Map NORTH Land Use Map ATTACHMENT 3 Notification Map NORTH Scale: None Public Notification Date: November 30, 2004 200' Legal Notices* sent via Certified Mail: 31 Number of responses to 200' Legal Notice: · In Opposition: 0 · In Favor: 0 · Neutral: 0 *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 'Tntegrfly In Engineering" ISBELL ENGINEERING GROUP, INC. STRUCTURAL ' CIVIL · GEO TECHNICAL · CONSTRUCTION MA TERIALS . SURVEY I III November 10, 2004 Members of the Planning and Zoning Commission City of Denton City Hall West Planning and Development Department 221 N. Elm Denton, TX 76201 Re: Denton Housing Authority Renaissance Court Zoning Change Request IEG No: C04358 Dear Planning and Zoning Commission: Isbell Engineering Group, Inc (lEG) respectfully submits the following justification letter on behalf of the Denton Housing Authority for the zoning amendment application for the t2.5611- acre Renaissance Court apartments on Hickory and Ruddell Streets. We request public hearings before the City of Denton Planning and Zoning Commission and the City Council to consider the request, lEG will hold a neighborhood meeting on November 17th prior to the Planning and Zoning Commission hearing. I. Introduction Isbell Engineering Group, Inc (lEG) requests the rezoning of 12.5611 acres from NRMU- 12 to NRMU. The Phoenix Apartments, currently vacant, formerly housed 177 units. The Housing Authority will demolish the remaining vacant buildings and replace them with 150 new apartment units in residential-style buildings. The Housing Authority received tax-credit financing that requires 150 units to be built on thek property. The Dreamland Addition Plat dedicated right-of-way on Ruddell and Hickory Streets. Thus the Housing Authority only owns 10.7623 acres instead of 12.5611 acres. This difference in acreage would only allow 129 units under the current NRMIJ-12 zoning. The acreage may increase to 11.092 ifa 50-foot, unused right-of-way is abandoned. The proposed redevelopment of the Phoenix Apartment into Renaissance Court will greatly improve the character of the neighborhood and will provide attractive, decent affordable housing for the City of Denton. The apa[t, ments will be for a mix of affordable housing residents--30, 40, 50, and 60 percent of the area median income as well as contract rents. 1405 W. Chapman Dr. Jv ~ 400 $. Armstrong Sanger, Texas 76266 Denison, Texas 75020 Phone: 940-458-7503 Phone: g03-465-0333 Fax: 940-458-7417 e-mail: isl~ll(~isbellengineertng,com Fax: 903~463-1941 I of 10 Figure 1: Existing RuddeH Apartments to be DemoKshed Figure ~: ~outh fi/de of Property Home Of~: 1405 W. Onapman Dr, Sanger, Texas 76266 Phone: 940-458-7503 Pax: 940-458-7417 e-mail: isbell@isbellengineering.com 2 of 10 Br.flch O,.c~: 400 $, Armstrong Denison, Texas 75020 Phone: 903-465~0333 II. Description of Site, Surrounding Land Uses, and Zoning The site is part of the Southeast Denton neighborhood and is across the street on Ruddell from county uses, such as the Denton County Courthouse and the Denton County Jail. The site is also bordered by single family homes on the west and north. Housing Authority property borders on the south, with the Housing Authority main office further south. The Phoenix Park is immediately west of the site and south of single family homes. Li ''Ii ii II II ' Home Office: 1,t05 W. Chapman Dr. Sanger, Texas 76266 Phone: 94(]-458-7503 ~ax: 940-458-7417 e~mail: istmll@isbeJlengineefl ng.co m 3of 10 Brnnch Office: 400 S. Armstrong Denison, Texas 75020 Phone: g03-465-0333 Fax: 903-463q941 Housing Authority To the South The site currently houses 130 remaining vacant apartments out of an original 177 units as well as a vacant office space. The south side of the property is vacant, since the apartments were already demolished. The proposed NP, MU zoning complies with Denton's Comprehensive Plan. NRMU zoning allows commercial uses not permitted under N1LMU-12, however, the Denton Housing Authority does not have the intention or ability to build any commerdal development. The zoning change is solely to allow the increase in density of mulfifamily units from 12 units per acre to 30 units per acre. The surrounding zoning is N-R-4, with the exception of the CM-G zoning for the property adjacent to the Demon County buildings. The NRMU is compatible with the residential nature of the neighborhood and will act as a buffer to the more intense CM-G zoning and uses to the east. The attractive design of the apartment complex will be a gateway to the Southeast Denton neighborhood along Hickory Street. 1405 W. Chapman Dr. Sanger, Texas 76266 Phone: 940-458-7503 ~ax: 940458-7417 e-mail: isbell@isbelleflgineering,com 4 of 10 Bganch Office: 400 S. Armstrong Denlson, Texas 75020 Phone; 903~465-0333 IlL Description of Proposed Development and Zoning Overlay The Housing Authority is proposing a major redevelopment of the Phoenix Apartments on Ruddell Street. The apartments will provide elevations that comply with the Denton Development Code but also include a residential-style development, with porches, columns, and pitched roofs. The building fa9ade will be a mixture of brick and Hardi siding to create a townhouse or row house feel to the development. The development will also include an onsite management office, a pool, a fitness room, a community room, and a laundry facility. There will also be other amenities, such as a gazebo, barbeque grills, and a community garden. Renaissance Court will contain 150 apartments in two-story buildings. Most units will be two-stories, with the exception of the 12 units that will contain one-story accessible units on the ground with separate apartments above. There will be 53 one-bedroom units, 67 two-bedroom units, and 30 three-bedroom units. This zoning request however, includes a request to create an overlay district. This district would limit the number of units to 150 or approximately 14 units per acre. The zoning overlay district also includes a modification on the yard abutting the single-family use or district. Instead of 20 feet plus one foot for every building height over 20 feet, the yard will be reduced to 15 feet plus one foot for every foot over 20 feet of building height. The total yard with a 26-foot building height will be 21 feet. ""Home Office: 1405 w. Chapman Dr. $anger, Texas 76266 Phone: 940-458-7503 Fax: 940-450-7417 e-maih isbellOisbellengineefi ng.co m Sol 10 Branch O;;ice: 400 S. Armstrong Denison, Texas 75020 Phone: g03.465-0333 Fax: 903-463-194!. 1405 W. Chapman Dr, Sanger, Texas ?6266 Phone: 9q0-458-7503 Fax: 940458-7417 e-mai1: IsbetJ ~isbellengineering.com 6 of 10 Branch Office: 400 S, Armstrong Denison, Tex~s 75020 Phone: 903-465-0333 r Home Office: 1405 W. Chapman Dr. Sanger~ T~as 76266 Phone: 940-458-7503 Fax: 940-458-7417 e-marl: isbe~l@ls~lengineefing,com 7of 10 Branch Office~ 4O0 S. Armstrong Denison, Texas 75020 Phone: 903-465-0333 ~' Ho me'~e: Sa~g~r, Texas Phone: 940-458-7503 Fax: 940-458-7417 e-mail: lsbell~isbellengineedng.com 8 of 10 ut :;1 ,. '" I' Br~nch Office: ~00 S. ~mstrong OenJson, Texas 75020 Phone: 903~465-0333 IlL Description of Anticipated Impacts on City Schools The site with 150 units will have decreased impacts on the Denton Independent School District, given that the Phoenix Apartments had I77 units. The 150 multifamily units will generate 36 elementary students, 15 middle school students and 30 high school students. Utilities Water Water service will be provided with a 6" water line looped through the site from the existing water lines along Hickory Street and Ruddell Street for the portion of the site north of the drainage channel and similarly with a 6" water line looped through the site from the existing water line along Ruddell for the portion of the site north of the drainage channel. Fire hydrants will be provided at a spacing that complies with the Denton Development Code and Fke Department requirements. Wastewater Sanitary sewer service will be provided for the portion of the site north of the drainage channel with a private sanitary sewer line that runs through the site and connects to the existing 21" sanitary sewer main parallel to and south of the drainage channel. For the portion of the site south of the drainage channel, a private sanitary sewer line will connect to the existing 8" sanitary sewer main south of the property. Manholes will be spaced appropriately and adequate pipe slopes will be provided. Drainage Runoff from the site will be captured imo a private underground storm sewer system that will discharge into the existing drainage channel that traverses the site. Inlets will be placed in the parking areas and laterals will tie into a trunk line that runs along the proposed access drive. Curb inlets will be placed in the access drive to capture mnofffrom other parking areas and the access drive. A reinforced concrete headwall will be constructed at the outlet into the drainage channel. A rock riprap apron will be provided at the toe of the headwall to prevent erosion. Solid Waste IEG will coordinate with City staffto determine the best configuration to accommodate solid waste access needs. Home Office: 1405 W, Chapman Dr. Sanger, Texas 76266 Phone: 940-458-7503 Fax: 940-458-7417 e-mall: isbell~lsbetlengineedng.com 9of 10 Branch Office: 400 S. Armstrong Denlson, Texas 75020 Phone: 903.465-0333 Fax: 003.463.1941 Traffic According to the Denton Mobility Plan, Ruddell Street and Hickory Street are collector streets. The zoning amendment will generate approximately 988 trips per day, a decrease from the 1166 trips generated by the 177 units. The Dreamland Addition plat includes right-of-way dedications for both streets and an unused 50-foot right-of-way that the Housing Authority that is in the process of abandonment. IV. Request for Favorable Consideration After reviewing the above letter content and accompanying documentation, we anticipate that you will agree with our presentation. We request the City of Denton's favorable consideration of our zoning change request. We believe the proposed Renaissance Court will be a benefit to the surrounding neighborhood and the City of Denton as a whole. We look forward to working with Denton Housing Authority and the City of Denton to bring this project to a successful completion. We appreciate your time and consideration with this matter. Respectfully submitted, Isbell Engineering Group, Inc Vicki Oppenheim, AICP Senior Planner Home Office: 1405 W. Chapman Dr. Sanger, Texas 76;266 Phone: 940-458~7503 Fax: 940-458-7417 e-mail: isbeJl@isbellenglneedng.com 10 of 10 ~r~h Office:" ' 400 S. Armstrong Dentson, Texas 75020 Phone: 903-465-0333 Fax: 903-463-1941 CondensoltTM 1 2 3 4 5 6 7 8 10 11 12 13 i4 15 16 17 18 19 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 45 COMMISSIONF_,R POWELL: We wilt now go to Item 4B, 4C and 4D. And I'm going to ask staff to cover all tla~e of these at one time. And then we will have a public hearing covering all three at one time, also. Yes, sir. Mr. Fuller. MR. miLER: ^11 right. Thank you. And good evening. I will try to go through this as quickly and thoroughly as possible. The applicant is requesting to rezone from the NRMU-12 zoning district to file NRMU zoning district with an overlay. This is tile site of file Phoenix Aparunents. The overlay will encompass three areas. It will permit only multi-family uses, no conm~ercial, no retail~ only multi-family uses will be allowed, although the density in the rmMU zoning district is higher than the NaMU-12, the applicant will cap the density to 150 units. That will be the maximum allowable units within that development. The applicant is also requesting to reduce the side yard from 20 feet to 15 feet. And pardon me, this is not working at the moment. Okay. The applicant is requesting file mzoning change in order to meet the mandatory density as required by the terms to the Tax Credit Financing for the Denton -- for file Affordable Housing Development. The rqr~MU zoning will allow the applicant to achieve the 150 Page 46 dwelling units they'd need. Staff has mailed legal notices to the residents for all tlm:e public hearing itmns within 200 feet. We have received none in opposition. Today we did receive several that were ia favor. And you received that in your backup prior to the public hearing. Staff is reconunending approval of the zoning application. And, again, t'd like to clarify that only multi-family uses will be permitted. There wilt be no more than 150 units, and this is actually a reduction from what is currently them, 177 units. We're also considering a Specific Uso Pemfit request. A Specific Use Permit allows staff, the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 47 Development Plan. An Alternative Development Plan is an opportunity -- it's a mechanism when the applicant cannot meet the standards of the Development Code, it can meet the intent or the objectives by providing someflfing that's even better. The applicant is requesting the Alternative Development Plan for tlu'ee issues primarily, the placement of street trees, the residential buffering, and the landscaping within the parking lot. The placement of street trees, the Development Code requires that street trees be placed between a curb and a sidewalk at even intervals of 30 feet. The applicant asserts that there is not enough room along Ruddell to put in the streets between the sidewalk and curb. However, to mitigate that, what they are providing are larger sidewalks, they're increasing from four feet to five feet, and they're going to provide more street trees than are required. For the buffer, if you look, where it says eight foot opaque feuce, you'll see there am single family residential lots that are akcady platted. A multi-family development is required to provide screening to single family zoning districts and residents. Typically, that would be a six-foot high opaque fence with a ten-foot green landscaped area with trees every 30 feet, however, this provides a unique circmnstance that them 1 2 3 4 5 6 7 8 9 10 11 12 Page 48 was a utility casement that runs along those lots. The applicant, therefore, is seeking to put in an eight-foot opaque fence with ten feet of green area, however, you cannot put fences or trees within a utility cascqnent, therefore, rather than putting trees there, they'll put more along Ruddell. In addition, the parking lot landscaping, the applicant is required to present seven percent parking lot landscaping. They're about 350 feet short in one of tile parking lots, I think, two or tkree of the parking lots, a total of 350 feet, which would be about a parking space and a half if you were to have a 9 by 18 parking Conm~ission and City Council to review a site plan. And I know the overhead is a little difficult to read. But if youql look in your backup, you'll see a better copy. The applicant is requesting a Specific Use Permit because in the Neighborhood Residential Mixed Use Zoning District which is before you, in order to develop multi-family, that is, apa~nents, a Specific Use Permit is requil'cd. The applicant is deviating from time coxnponents of our Denton Development Regulations, but we're going to discuss that in a moment with the Alternative Development Plan. So understand with the zoning case, we have the Specific Use Pemtit that is triggered by that rezoning. And we have the Alternative t3 14 15 16 17 18 19 20 21 22 23 24 25 space, that's how much they're short. However, they are going to double the tree canopy coverage within the landscape -- within that parking lot. So before you, we have the zoning with an overlay, you have a Specific Use Request and you have an Alternative Development Plan. Staff reconnnends approval of all three. I'm available for any questions you may have. COMMISSIONER POWELL: Mr. Strange. COMMISSIONE.R STRANGE: would you clarify for me the street tree aspect? I understood you to start with by saying, there was -- we were going to have to modify it because there was not enough room for street PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 45 - Page 48 Condens~ItTM 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 l0 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 49 trees. And then you said they were going to double tile street trees. And then -- because they can't get them in the parking lot, they're going to double the canopy. Whet~e are they going to put these if they can't put them in the area there for the street trees? MR. FULLER: They don't have room to put them between the curb and the sidewalk. They do have -- they would just be closer to the structure& They will be between the sidewalk and the structure rather than the curb and tile sidewalk. You would place thc curb -- normally, you would have curb, tree, sidewalk. What they m~e proposing is curb, larger sidewalk, street trees. So your street trees are going to be closer to your buildings. But there would just be more of them. COMMISSIONER STRANGE: we're not going to make them put them 30 feet apart, are we? MR. FULnEa: NO, they're actually going to have more. COMMISSIONER STRANGE: Good. COMMISSIONER ['dWELL: Mr. Watkins, COMMISSIONER WATKINS: Thank you, Mr. Chairman. What I see across is a creek and presently, there's nothing on the south side of the creek, I think. Docs this go down to the fence for the building, the office building? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 Page 51 Page 50 MR. FULLER: I'll have to let the applicant -- I'm not sure if that does or not. COMMISSIONER WATKINS: okay. I.,ct's back up a little bit. On the drive-through -- MR. FULLER: uh-huh. COMMISSIONER WA'IXINS: -- we have talked somewhat about block length. Now, this is 3/10Ihs of a mile by my odometer. So the drive through the center -- MR. FULLER: That'S an internal access. It acts as a street. But it does meet the intent of the Code. COMMISSIONER WATKINS: It does meet the Code? MR. FULLER: Yes. It's not a public street -- or it's just an internal access. COMMISSIONER WATKINS: okay. Well -- my concern, of course, is you're going to have all of these people in there. And so you're going to build a street in there and put parking places and then turn cars loose through there. Are there any plans -- and this is on the Alternative Development Plan, I suppose, are them any plans to use something other than concrete or asphalt on the parking lot as far as runoff goes? We talked about that some to keep the water from going directly to the creek. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 t6 17 18 19 20 21 22 23 24 25 MR, FULLER: Fronl staff's perspective, that will be more of a platting issue when they come in with their construction plans, what type of material they'll use to construct the street, but the applicant may be able to answer that. COMMISSIONER WATKmS: okay. And you said eight-foot opaqu~ fence on the back side? MR. FULLER: Yes, sir. COMMISSIONER WATKINS: NOW, from what I read, there's going to be some two-story apartments on the back side? MR. FULLER: ~Jh-huh. COMMISSIONER WATKINS: will that meet the Code? MR. FULLER: Yes. Six foot would be required. So riley are acmalty exceeding the Code with an eight-foot fence. COMMISSIONER WATKINS: ^11 right. Thank you. COMMISSIONER POWELL: Dr. Thibodeaux. COMMISSIONER TH[BODEAUX: Yes. Thank you. I'm interested in yom' opaque fence -- I see where tile eight foot and the arrow is pointing there, does it mn all of the way to tile end of that? M~. FU[CER: Xo the left, so to speak? Page 52 COMMISSIONER THIBODEAUX: TO tile left? u}~. FUJIYa: NO, it won't. That will give open access to that park. This site is adjacent to the park area. Now, because this is an Alternative Development Plan, you do have the opportunity to place a condition that they do extend the fence, but if that -- if that condition is what you desire, I would suggest or certainly mention that it would be opportunistic -- it would be a good opportunity to give access to the residents to the park, not just an opaque fence with no access points. COMMISSIONER THIBODEAUX: Right. And arc those properties to the north on your map, they're occupied north of that fence? MR. FULLER: YeS, they are. COMMISSIONER THIBODEAUX: And the additional trees, is that Ruddell? MR~ FULLER: NO, actually -- COMMISSIONer{ THIBODEAUX: where is Ruddell7 MR. FU~.LER: Ruddell, if you're looking, it says additional stnm trees, that is along it's whore Ruddell. COMMISSIONER THIBODEAUX: okay. COMMISSIONER POWELL: That map is not running north and south. It's running sideways, PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 49 - Page 52 CondcnscItTM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER THIBODEAUX: okay. direction, as it's laying there. MR. FULLER: YeS. COMMISSIONER ?OWELL: Any other questions of staff here? Seeing none, I'll ask the applicant if they would look to make a presentation. Please give us your name and address, sir. MR. FULENCHEK: certainly. Good evening. Jeff Fulenchek. 115 Falls Creek in Gunter, Texas. I am vice-president of Carlton Residential ?roperty, the Developer and I'm going to be very short because a lot of this stuff is of technical nature and I'ii turn this over to our civil engineer. But I just wanted to make a couple of points, one of which -- that's already been made. This proposal is actually reducing the density of the curt, eat housing which is there from 177 units to 150. We'd be taking it from 1970's Vintage really dilapidated and vacant property to, obviously, a new Class A building, town home design. We have been Page 53 But for my 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Page 55 five-year process in getting the funding lined up and so forth and we're essentially ready to go as soon as we can get through the zoning process and get a building permit. As been mentioned, we have a zoning request before you and essentially we need to be able to build 150 units because of the financing that we have. And when Isbell Engineering went ahead and did the boundary survey, we discovered that the deed didn't really adequately describe the property that was available for development. Really rather than 12.5 acres, we really have 10.8 at this point. And, thus, we nccd this zoning change to be able to move forward with the project. As has been mentioned, we have a zoning overlay district that will restrict the nmnber of units and the use on the property. We will only build multi-family apartments, no other types of uses will be allowed. Then: will be only 150 units and we also have modified the building setback line along the single family. We also have a right-of-way abandonment working with the neighborhood and thc City for over a year and have had a lot of neighborhood input on this design. And the reason for the zoning, and, again, I'll let Vicky, our civil engineer handle this a little bit more is the deed read that we had a little bit larger amount of acreage because the street dedication wasn't taken into Page 54 account. So when we designed this for a 150 units, wc had thought we were meeting the current zoning. When it was approved for funding, it would have to remain 150 units for that funding to go through and for this housing to be in place. Again, we're file developer. The Housing Authority will be a long-term owner of this. And to answer yotrr question, sir, it docs go to the fence next to the Housing Authority Building. And at this point, I'll turn it over to Vicky, our Civil Enginem:. If you should have any further questions at thc end, just feel fmc to ask. COMMISSIONER POWELL: Give US your name and address, please. MS. APENHEIM: I'm Vicky Apenheim with Isbell Engineering Group, 1405 West Chapman Drive in Sanger, Texas. Ym very pleased to present to you tonight Renaissance Court. It really is a renaissance -- proposed renaissance of this neighborhood, southeast Denton. Right now there are existing Phoenix Apartments, they are completely vacant and this is viewed a~ a complete rehabilitation and renewal of this neighborhood including the entire Ruddcll Street. As been mentioned, there's been a team effort in developing this site. It's been really a 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 application and process that would increase the acreage to 11.092 acres eventually. As has beeu mentioned, the acrcage difference is because of the street dedication, the area in red shows you the property that we do not have that we thought we had originally. Tile site -- the existing Page 56 apartments and the single family to the west. As been mentioned, they are occupied. These are the existing apartments and the drainage channel. And the entire site, 12.5 acres will be rezoned ~RMU. This is sort of a conceptual drawing of what we propose. This is looking from Ruddell to the west, a very walkable pedestrian friendly development row house effect, several architectural styles. We believe it's a very high quality development. And it will be a complete new vision for this neighborhood. I guess I can go on to the Specific Use Permit, if you want me to. COMMISSIONER POWELL: Yes, ma'alll. MS. APENHEIM: okay. We also, as you know, meet the Specific Use Permit if we get the NRMU zoning approved. The site plan shows access off of Hickory as well as Ruddell. This street is a private street that we'll be developing with concrete to answer an earlier question. We propose underground storm sewer into the channel. So all water will get underground into the channel as soon as possible to address drainage issues. We also -- having -- since this is a private street, we're having to treat it as such in terms of landscaping and tree requirements. And that is part of tl~e Alternative Development Plan Request, not only Ruddell Street, but also the internal private street, as well. PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 53 - Page 56 Condens¢ItTM 5 6 7 8 9 10 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 t8 19 20 21 22 23 24 25 Page 57 There's also a clubhouse facility that will be proposed along with the 18 buildings and tin'ce different types. As has been mentioned, only multi-family units will be allowed. We'll have five building styles, which I will be showing you, provide tlaee different building types of Itu'ce possible style variations. And there will be also different configurations because of the different units that we have within each building. This is an example of type one and type two elevations. Typo throe, all brick with hardy side board. And this is an example of a variation. We call it file traditional, having a more colonial look. We have the Texas HilI Country version with brackets and tile gable and more siding. And also the craftsman with a hipped roof, full brick column. We will have 53 one-bedroom apartments, 67 two-bedrooms, 30 three-bedrooms. It will be mixed income development, largely affordable housing. There will be a clubhouse 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Page 59 And this is the proposed monmnent sign for the development on Hickory. I'm here to answer any questions you may have. Also, representatives from file Housing Authority are here as well. Thank you. COMMISSIONER POWELL: Ar~ thgre any questions of the applicant here? Mr. Roy. COMMISSIONER ROY: On one of your drawings you showed an exit of your internal road onto Hickory. That's very near the curve there at Ruddell. Arc we going to be hearing from you folks later on about variances from a curb cut point of view or is that part of the approval we're doing now? MS. APENHEIM: Ire Hickory Street entrance, tile alignment has been approved by the staff. We changed the alignment slightly to linc up with RuddeI1 across the street. And as far as we know, it meets all City requirements and radiuses and alignment and so forth. COMMISSIONER ROY: okay. One 1110113 with on-site management, a pool, fitness room, colrmmnity room, laundry facility. There will be a gazebo, barbecue grills, cotmnunity garden. And we will have numerous trees tkroughout the site. There arc 282 new trees on site, and 40 off site. We're going to have 40 trees off-site across the street near the existing Denton County facility. And that Page 58 will be part of the requirmalents for the ^m, that I will be discussing in a moment. So the Alternative Development Plan is something we also have requested as a third item. As been mentioned, a landscape buffer, we're normally required to have ten feet plus trees, plus a fence. We're providing an enhanced fence and a buffer, but no trees in that buffer. The Housing Authority has met with all but two residents along that fence, and they're all in support of the fence being built on their property line. Everybody in the neighborhood has been in support of this project. We've had -- we had a neighborhood meeting. Wc also had a smaller meeting with other residents. There's been no opposition whatsoever. Also, the parking lot, we doWt quite meet parking lot landscaping, so, again, we have provided extra trees across the street as well as internal trees. Street trees as has been menfioned, the spacing, we don't quite meet in the number, but we've provided them elsewhere as well as we have more than enough u'ee canopy, 63 percent tree canopy on the site versus 40 percent. This is the illustration of the fence that will be along the single family, wood pickets with a masonry colmnn, spaced approximately every 100 feet along the property line. 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 question. Then you talk about trees across the street. MS. APENHEIM: Yes. COMMISSIONER ROY: Is that Housing Authority property there? MS. ^I'nNHmM: This is City right-of-way. And so we will have 40 trees in the City rigla-of-way that the Housing Authority will maintain, plant and maintain. Page 60 COMMISSIONER ROY: Thank you. MS. APENHEIM: SO we will have a visual all along the street. COMMISSIONER POWELL: MS. Holt. COMMISSIONER HOLT: Yeg. So there are really only two entrances, that one on Hickory and then one down on Ruddell and then that -- I~m not talking about that one on that end, this longer portion. MS. APENHE[M: Yes, COMMISSIONER HOLT: tS that enough -- that seems like a lot of apartments to just have one entrance and exit since all of those -- they're just like parking little bays out there or whatever you want to call them, little nodes or something. So there is really only one entrance and one exit. Why is that? MS. APENHEIM: we]l, We believe that is adequate. There are approximately 40 units over here and a little over a 100 here and we believe that is adequate. We want to have the main entrance off of Hickory. And we don't want to have too much traffic flow this way. We wanted to keep it just on the one internal street in and out. At this point, staff has had no problem with that and we believe it's adequate. COMMISSIONER HOLT: okay. That just seems like a lot of traffic possibly. How many parking spaces PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 57 - Page 60 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 61 are provided in that larger area? MS. APENHEIM: well, it's 266 total. I'm not sure of the breakdown between the two. I imagine 2/3rds of that are probably in this area, in the larger area. I'd have to go back to the plans and actually count them out. COMMISSIONER HOLT: And that center road will be two-way? MS, APENHEIM: Yes, COMMISSIONER HOLT: okay, Thank you. COMMISSIONER POWELL: 1 have a question based on Ms. Holt's question, I'm assuming and I know assuming will get me in trouble, that staff could tell me whether the fire marshal has seen this and is okay with it, and I'm getting a nodded yes, so I'll take that as a nodded yes. MS. APENHEIM: Yes, very early on we spoke with the fire marshal and he reviewed it. COMMISSIONER POWELL: Thank you. Any other questions of the applicant? Seeing none, I thank you. MS. APENHEIM: Thank you. COMMISSIONER POWELL: I'll open a public -- a combined public hearing for items 4B, a rezoning of approximately 12 and a half acres; 4C, a Specific Use Permit for mutti-family development; and 4D, an Page 62 Allernative Development Plan for a proposed multi-family development. I only have one card. I'll ask Mr. Moreno if he'd come forward and give us his name and address, and speak on the issue. And I want to point out that Mr. Moreno is a fine example of a former P & Z Conurdssioner. MR. MORENO: YOU want to trade scats? I've had some practice up there. I'm Rudy Moreno, 3608 Marianne Circle h~re in Denton. I'm a board member on the Denton Housing Authority and I just wanted to raise my hand in support of this proposal. And hope that you reconm~end approval to the City Council. It's a good-looking plan in all seriousness. I think it's about time the Housing Authority built something. It's been too t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 I2 13 Page 63 me, it puts our Development Code where it should be, how · it's used, the AD?, the su?. and it's ali being used in a situation whore it should be used, whore there are ciremnstances of file size of the lot, and in-fill and that's where all of those things that we've put in the Development Code should be used, and they're being used correctly. And so i think this looks like a really nice addition. Thank you. COMMISSIONER POWELL: [ believe it would be time for a motion. And I have a, I believe, a motion from Mr. Roy followed by Mr. Wa&ins. COMMISSIONER ROY: I move approval of Item 4B. COMMISSIONER POWELL: I have a motion to approve 4B by Mr. Roy. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: second by Mr. Wa&ins. We will vote on this issue before we go any further. Is there any discussion on 4B? Seeing none, I'll call for a vo~e. 4B passes 6-0 of those present. We will go to 4C. Mr. Strange. COMMISSIONER $IRAN~E: [ would move -- recolrmm~d approval of 4C, which is Z-04-0046. COMMISSIONER POWELL: Thank you, Mr. Strange. Is there a second? Page 64 COMMISSIONER HOLT: second. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: I have a second by Ms. Holt. I believe that was Ms. Holt, was it? MS, CARPENTER: Yes. COMMISSIONER POWELL: she beat out George again. You're a little slow tonight, George. I have a motion and a second. Is there any discussion on the floor? Seeing none, I'll call for a vote. Motion passes 6 to 0 of those present. We're to Item 4D, Ms. Holt. COMMISSIONER HOLT: Move approval. COMMISSIONER POWELL: MS. Holt moves long. We need to move forward with this project. And that's all I have. Any questions? COMMISSIONER POWELL: ^ny questions of Rudy? Mr. Moreno, thank you very much. MR. MORE~O: okay. Thanks, Mr. Chairman. COMMISSIONER POWELL: I'm assmning the applicant does not want to rebut that. Is there anyone else here to speak for, against or on this issue? Seeing none, I will close the combined public hearing. Ms. Holt has something to say here. COMMISSIONER HOLT: I just wanted to say this really looks hke a really great plan and it -- to 14 I5 16 17 18 19 20 21 22 23 24 25 approval. COMMISSIONER ROY: second. COMMISSIONER POWELL: Second by Mr. Roy. Any discussion on 4D? Seeing none, Pll call for a vote. 4D passes 6-0 of those present. That takes care of Item 4 and we thank you very much for that nice presentation. PLANNING AI~ID ZONING MINUTES DECEMBER 15, 2004 Page 61 - Page 64 CondensoltTM 1 2 3 4 5 6 7 8 10 11 12 13 i4 15 16 17 18 19 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 45 COMMISSIONF_,R POWELL: We wilt now go to Item 4B, 4C and 4D. And I'm going to ask staff to cover all tla~e of these at one time. And then we will have a public hearing covering all three at one time, also. Yes, sir. Mr. Fuller. MR. miLER: ^11 right. Thank you. And good evening. I will try to go through this as quickly and thoroughly as possible. The applicant is requesting to rezone from the NRMU-12 zoning district to file NRMU zoning district with an overlay. This is tile site of file Phoenix Aparunents. The overlay will encompass three areas. It will permit only multi-family uses, no conm~ercial, no retail~ only multi-family uses will be allowed, although the density in the rmMU zoning district is higher than the NaMU-12, the applicant will cap the density to 150 units. That will be the maximum allowable units within that development. The applicant is also requesting to reduce the side yard from 20 feet to 15 feet. And pardon me, this is not working at the moment. Okay. The applicant is requesting file mzoning change in order to meet the mandatory density as required by the terms to the Tax Credit Financing for the Denton -- for file Affordable Housing Development. The rqr~MU zoning will allow the applicant to achieve the 150 Page 46 dwelling units they'd need. Staff has mailed legal notices to the residents for all tlm:e public hearing itmns within 200 feet. We have received none in opposition. Today we did receive several that were ia favor. And you received that in your backup prior to the public hearing. Staff is reconunending approval of the zoning application. And, again, t'd like to clarify that only multi-family uses will be permitted. There wilt be no more than 150 units, and this is actually a reduction from what is currently them, 177 units. We're also considering a Specific Uso Pemfit request. A Specific Use Permit allows staff, the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 47 Development Plan. An Alternative Development Plan is an opportunity -- it's a mechanism when the applicant cannot meet the standards of the Development Code, it can meet the intent or the objectives by providing someflfing that's even better. The applicant is requesting the Alternative Development Plan for tlu'ee issues primarily, the placement of street trees, the residential buffering, and the landscaping within the parking lot. The placement of street trees, the Development Code requires that street trees be placed between a curb and a sidewalk at even intervals of 30 feet. The applicant asserts that there is not enough room along Ruddell to put in the streets between the sidewalk and curb. However, to mitigate that, what they are providing are larger sidewalks, they're increasing from four feet to five feet, and they're going to provide more street trees than are required. For the buffer, if you look, where it says eight foot opaque feuce, you'll see there am single family residential lots that are akcady platted. A multi-family development is required to provide screening to single family zoning districts and residents. Typically, that would be a six-foot high opaque fence with a ten-foot green landscaped area with trees every 30 feet, however, this provides a unique circmnstance that them 1 2 3 4 5 6 7 8 9 10 11 12 Page 48 was a utility casement that runs along those lots. The applicant, therefore, is seeking to put in an eight-foot opaque fence with ten feet of green area, however, you cannot put fences or trees within a utility cascqnent, therefore, rather than putting trees there, they'll put more along Ruddell. In addition, the parking lot landscaping, the applicant is required to present seven percent parking lot landscaping. They're about 350 feet short in one of tile parking lots, I think, two or tkree of the parking lots, a total of 350 feet, which would be about a parking space and a half if you were to have a 9 by 18 parking Conm~ission and City Council to review a site plan. And I know the overhead is a little difficult to read. But if youql look in your backup, you'll see a better copy. The applicant is requesting a Specific Use Permit because in the Neighborhood Residential Mixed Use Zoning District which is before you, in order to develop multi-family, that is, apa~nents, a Specific Use Permit is requil'cd. The applicant is deviating from time coxnponents of our Denton Development Regulations, but we're going to discuss that in a moment with the Alternative Development Plan. So understand with the zoning case, we have the Specific Use Pemtit that is triggered by that rezoning. And we have the Alternative t3 14 15 16 17 18 19 20 21 22 23 24 25 space, that's how much they're short. However, they are going to double the tree canopy coverage within the landscape -- within that parking lot. So before you, we have the zoning with an overlay, you have a Specific Use Request and you have an Alternative Development Plan. Staff reconnnends approval of all three. I'm available for any questions you may have. COMMISSIONER POWELL: Mr. Strange. COMMISSIONE.R STRANGE: would you clarify for me the street tree aspect? I understood you to start with by saying, there was -- we were going to have to modify it because there was not enough room for street PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 45 - Page 48 Condens~ItTM 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 l0 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 49 trees. And then you said they were going to double tile street trees. And then -- because they can't get them in the parking lot, they're going to double the canopy. Whet~e are they going to put these if they can't put them in the area there for the street trees? MR. FULLER: They don't have room to put them between the curb and the sidewalk. They do have -- they would just be closer to the structure& They will be between the sidewalk and the structure rather than the curb and tile sidewalk. You would place thc curb -- normally, you would have curb, tree, sidewalk. What they m~e proposing is curb, larger sidewalk, street trees. So your street trees are going to be closer to your buildings. But there would just be more of them. COMMISSIONER STRANGE: we're not going to make them put them 30 feet apart, are we? MR. FULnEa: NO, they're actually going to have more. COMMISSIONER STRANGE: Good. COMMISSIONER ['dWELL: Mr. Watkins, COMMISSIONER WATKINS: Thank you, Mr. Chairman. What I see across is a creek and presently, there's nothing on the south side of the creek, I think. Docs this go down to the fence for the building, the office building? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 Page 51 Page 50 MR. FULLER: I'll have to let the applicant -- I'm not sure if that does or not. COMMISSIONER WATKINS: okay. I.,ct's back up a little bit. On the drive-through -- MR. FULLER: uh-huh. COMMISSIONER WA'IXINS: -- we have talked somewhat about block length. Now, this is 3/10Ihs of a mile by my odometer. So the drive through the center -- MR. FULLER: That'S an internal access. It acts as a street. But it does meet the intent of the Code. COMMISSIONER WATKINS: It does meet the Code? MR. FULLER: Yes. It's not a public street -- or it's just an internal access. COMMISSIONER WATKINS: okay. Well -- my concern, of course, is you're going to have all of these people in there. And so you're going to build a street in there and put parking places and then turn cars loose through there. Are there any plans -- and this is on the Alternative Development Plan, I suppose, are them any plans to use something other than concrete or asphalt on the parking lot as far as runoff goes? We talked about that some to keep the water from going directly to the creek. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 t6 17 18 19 20 21 22 23 24 25 MR, FULLER: Fronl staff's perspective, that will be more of a platting issue when they come in with their construction plans, what type of material they'll use to construct the street, but the applicant may be able to answer that. COMMISSIONER WATKmS: okay. And you said eight-foot opaqu~ fence on the back side? MR. FULLER: Yes, sir. COMMISSIONER WATKINS: NOW, from what I read, there's going to be some two-story apartments on the back side? MR. FULLER: ~Jh-huh. COMMISSIONER WATKINS: will that meet the Code? MR. FULLER: Yes. Six foot would be required. So riley are acmalty exceeding the Code with an eight-foot fence. COMMISSIONER WATKINS: ^11 right. Thank you. COMMISSIONER POWELL: Dr. Thibodeaux. COMMISSIONER TH[BODEAUX: Yes. Thank you. I'm interested in yom' opaque fence -- I see where tile eight foot and the arrow is pointing there, does it mn all of the way to tile end of that? M~. FU[CER: Xo the left, so to speak? Page 52 COMMISSIONER THIBODEAUX: TO tile left? u}~. FUJIYa: NO, it won't. That will give open access to that park. This site is adjacent to the park area. Now, because this is an Alternative Development Plan, you do have the opportunity to place a condition that they do extend the fence, but if that -- if that condition is what you desire, I would suggest or certainly mention that it would be opportunistic -- it would be a good opportunity to give access to the residents to the park, not just an opaque fence with no access points. COMMISSIONER THIBODEAUX: Right. And arc those properties to the north on your map, they're occupied north of that fence? MR. FULLER: YeS, they are. COMMISSIONER THIBODEAUX: And the additional trees, is that Ruddell? MR~ FULLER: NO, actually -- COMMISSIONer{ THIBODEAUX: where is Ruddell7 MR. FU~.LER: Ruddell, if you're looking, it says additional stnm trees, that is along it's whore Ruddell. COMMISSIONER THIBODEAUX: okay. COMMISSIONER POWELL: That map is not running north and south. It's running sideways, PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 49 - Page 52 CondcnscItTM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER THIBODEAUX: okay. direction, as it's laying there. MR. FULLER: YeS. COMMISSIONER ?OWELL: Any other questions of staff here? Seeing none, I'll ask the applicant if they would look to make a presentation. Please give us your name and address, sir. MR. FULENCHEK: certainly. Good evening. Jeff Fulenchek. 115 Falls Creek in Gunter, Texas. I am vice-president of Carlton Residential ?roperty, the Developer and I'm going to be very short because a lot of this stuff is of technical nature and I'ii turn this over to our civil engineer. But I just wanted to make a couple of points, one of which -- that's already been made. This proposal is actually reducing the density of the curt, eat housing which is there from 177 units to 150. We'd be taking it from 1970's Vintage really dilapidated and vacant property to, obviously, a new Class A building, town home design. We have been Page 53 But for my 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Page 55 five-year process in getting the funding lined up and so forth and we're essentially ready to go as soon as we can get through the zoning process and get a building permit. As been mentioned, we have a zoning request before you and essentially we need to be able to build 150 units because of the financing that we have. And when Isbell Engineering went ahead and did the boundary survey, we discovered that the deed didn't really adequately describe the property that was available for development. Really rather than 12.5 acres, we really have 10.8 at this point. And, thus, we nccd this zoning change to be able to move forward with the project. As has been mentioned, we have a zoning overlay district that will restrict the nmnber of units and the use on the property. We will only build multi-family apartments, no other types of uses will be allowed. Then: will be only 150 units and we also have modified the building setback line along the single family. We also have a right-of-way abandonment working with the neighborhood and thc City for over a year and have had a lot of neighborhood input on this design. And the reason for the zoning, and, again, I'll let Vicky, our civil engineer handle this a little bit more is the deed read that we had a little bit larger amount of acreage because the street dedication wasn't taken into Page 54 account. So when we designed this for a 150 units, wc had thought we were meeting the current zoning. When it was approved for funding, it would have to remain 150 units for that funding to go through and for this housing to be in place. Again, we're file developer. The Housing Authority will be a long-term owner of this. And to answer yotrr question, sir, it docs go to the fence next to the Housing Authority Building. And at this point, I'll turn it over to Vicky, our Civil Enginem:. If you should have any further questions at thc end, just feel fmc to ask. COMMISSIONER POWELL: Give US your name and address, please. MS. APENHEIM: I'm Vicky Apenheim with Isbell Engineering Group, 1405 West Chapman Drive in Sanger, Texas. Ym very pleased to present to you tonight Renaissance Court. It really is a renaissance -- proposed renaissance of this neighborhood, southeast Denton. Right now there are existing Phoenix Apartments, they are completely vacant and this is viewed a~ a complete rehabilitation and renewal of this neighborhood including the entire Ruddcll Street. As been mentioned, there's been a team effort in developing this site. It's been really a 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 application and process that would increase the acreage to 11.092 acres eventually. As has beeu mentioned, the acrcage difference is because of the street dedication, the area in red shows you the property that we do not have that we thought we had originally. Tile site -- the existing Page 56 apartments and the single family to the west. As been mentioned, they are occupied. These are the existing apartments and the drainage channel. And the entire site, 12.5 acres will be rezoned ~RMU. This is sort of a conceptual drawing of what we propose. This is looking from Ruddell to the west, a very walkable pedestrian friendly development row house effect, several architectural styles. We believe it's a very high quality development. And it will be a complete new vision for this neighborhood. I guess I can go on to the Specific Use Permit, if you want me to. COMMISSIONER POWELL: Yes, ma'alll. MS. APENHEIM: okay. We also, as you know, meet the Specific Use Permit if we get the NRMU zoning approved. The site plan shows access off of Hickory as well as Ruddell. This street is a private street that we'll be developing with concrete to answer an earlier question. We propose underground storm sewer into the channel. So all water will get underground into the channel as soon as possible to address drainage issues. We also -- having -- since this is a private street, we're having to treat it as such in terms of landscaping and tree requirements. And that is part of tl~e Alternative Development Plan Request, not only Ruddell Street, but also the internal private street, as well. PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 53 - Page 56 Condens¢ItTM 5 6 7 8 9 10 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 t8 19 20 21 22 23 24 25 Page 57 There's also a clubhouse facility that will be proposed along with the 18 buildings and tin'ce different types. As has been mentioned, only multi-family units will be allowed. We'll have five building styles, which I will be showing you, provide tlaee different building types of Itu'ce possible style variations. And there will be also different configurations because of the different units that we have within each building. This is an example of type one and type two elevations. Typo throe, all brick with hardy side board. And this is an example of a variation. We call it file traditional, having a more colonial look. We have the Texas HilI Country version with brackets and tile gable and more siding. And also the craftsman with a hipped roof, full brick column. We will have 53 one-bedroom apartments, 67 two-bedrooms, 30 three-bedrooms. It will be mixed income development, largely affordable housing. There will be a clubhouse 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Page 59 And this is the proposed monmnent sign for the development on Hickory. I'm here to answer any questions you may have. Also, representatives from file Housing Authority are here as well. Thank you. COMMISSIONER POWELL: Ar~ thgre any questions of the applicant here? Mr. Roy. COMMISSIONER ROY: On one of your drawings you showed an exit of your internal road onto Hickory. That's very near the curve there at Ruddell. Arc we going to be hearing from you folks later on about variances from a curb cut point of view or is that part of the approval we're doing now? MS. APENHEIM: Ire Hickory Street entrance, tile alignment has been approved by the staff. We changed the alignment slightly to linc up with RuddeI1 across the street. And as far as we know, it meets all City requirements and radiuses and alignment and so forth. COMMISSIONER ROY: okay. One 1110113 with on-site management, a pool, fitness room, colrmmnity room, laundry facility. There will be a gazebo, barbecue grills, cotmnunity garden. And we will have numerous trees tkroughout the site. There arc 282 new trees on site, and 40 off site. We're going to have 40 trees off-site across the street near the existing Denton County facility. And that Page 58 will be part of the requirmalents for the ^m, that I will be discussing in a moment. So the Alternative Development Plan is something we also have requested as a third item. As been mentioned, a landscape buffer, we're normally required to have ten feet plus trees, plus a fence. We're providing an enhanced fence and a buffer, but no trees in that buffer. The Housing Authority has met with all but two residents along that fence, and they're all in support of the fence being built on their property line. Everybody in the neighborhood has been in support of this project. We've had -- we had a neighborhood meeting. Wc also had a smaller meeting with other residents. There's been no opposition whatsoever. Also, the parking lot, we doWt quite meet parking lot landscaping, so, again, we have provided extra trees across the street as well as internal trees. Street trees as has been menfioned, the spacing, we don't quite meet in the number, but we've provided them elsewhere as well as we have more than enough u'ee canopy, 63 percent tree canopy on the site versus 40 percent. This is the illustration of the fence that will be along the single family, wood pickets with a masonry colmnn, spaced approximately every 100 feet along the property line. 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 question. Then you talk about trees across the street. MS. APENHEIM: Yes. COMMISSIONER ROY: Is that Housing Authority property there? MS. ^I'nNHmM: This is City right-of-way. And so we will have 40 trees in the City rigla-of-way that the Housing Authority will maintain, plant and maintain. Page 60 COMMISSIONER ROY: Thank you. MS. APENHEIM: SO we will have a visual all along the street. COMMISSIONER POWELL: MS. Holt. COMMISSIONER HOLT: Yeg. So there are really only two entrances, that one on Hickory and then one down on Ruddell and then that -- I~m not talking about that one on that end, this longer portion. MS. APENHE[M: Yes, COMMISSIONER HOLT: tS that enough -- that seems like a lot of apartments to just have one entrance and exit since all of those -- they're just like parking little bays out there or whatever you want to call them, little nodes or something. So there is really only one entrance and one exit. Why is that? MS. APENHEIM: we]l, We believe that is adequate. There are approximately 40 units over here and a little over a 100 here and we believe that is adequate. We want to have the main entrance off of Hickory. And we don't want to have too much traffic flow this way. We wanted to keep it just on the one internal street in and out. At this point, staff has had no problem with that and we believe it's adequate. COMMISSIONER HOLT: okay. That just seems like a lot of traffic possibly. How many parking spaces PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 57 - Page 60 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 61 are provided in that larger area? MS. APENHEIM: well, it's 266 total. I'm not sure of the breakdown between the two. I imagine 2/3rds of that are probably in this area, in the larger area. I'd have to go back to the plans and actually count them out. COMMISSIONER HOLT: And that center road will be two-way? MS, APENHEIM: Yes, COMMISSIONER HOLT: okay, Thank you. COMMISSIONER POWELL: 1 have a question based on Ms. Holt's question, I'm assuming and I know assuming will get me in trouble, that staff could tell me whether the fire marshal has seen this and is okay with it, and I'm getting a nodded yes, so I'll take that as a nodded yes. MS. APENHEIM: Yes, very early on we spoke with the fire marshal and he reviewed it. COMMISSIONER POWELL: Thank you. Any other questions of the applicant? Seeing none, I thank you. MS. APENHEIM: Thank you. COMMISSIONER POWELL: I'll open a public -- a combined public hearing for items 4B, a rezoning of approximately 12 and a half acres; 4C, a Specific Use Permit for mutti-family development; and 4D, an Page 62 Allernative Development Plan for a proposed multi-family development. I only have one card. I'll ask Mr. Moreno if he'd come forward and give us his name and address, and speak on the issue. And I want to point out that Mr. Moreno is a fine example of a former P & Z Conurdssioner. MR. MORENO: YOU want to trade scats? I've had some practice up there. I'm Rudy Moreno, 3608 Marianne Circle h~re in Denton. I'm a board member on the Denton Housing Authority and I just wanted to raise my hand in support of this proposal. And hope that you reconm~end approval to the City Council. It's a good-looking plan in all seriousness. I think it's about time the Housing Authority built something. It's been too t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 I2 13 Page 63 me, it puts our Development Code where it should be, how · it's used, the AD?, the su?. and it's ali being used in a situation whore it should be used, whore there are ciremnstances of file size of the lot, and in-fill and that's where all of those things that we've put in the Development Code should be used, and they're being used correctly. And so i think this looks like a really nice addition. Thank you. COMMISSIONER POWELL: [ believe it would be time for a motion. And I have a, I believe, a motion from Mr. Roy followed by Mr. Wa&ins. COMMISSIONER ROY: I move approval of Item 4B. COMMISSIONER POWELL: I have a motion to approve 4B by Mr. Roy. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: second by Mr. Wa&ins. We will vote on this issue before we go any further. Is there any discussion on 4B? Seeing none, I'll call for a vo~e. 4B passes 6-0 of those present. We will go to 4C. Mr. Strange. COMMISSIONER $IRAN~E: [ would move -- recolrmm~d approval of 4C, which is Z-04-0046. COMMISSIONER POWELL: Thank you, Mr. Strange. Is there a second? Page 64 COMMISSIONER HOLT: second. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: I have a second by Ms. Holt. I believe that was Ms. Holt, was it? MS, CARPENTER: Yes. COMMISSIONER POWELL: she beat out George again. You're a little slow tonight, George. I have a motion and a second. Is there any discussion on the floor? Seeing none, I'll call for a vote. Motion passes 6 to 0 of those present. We're to Item 4D, Ms. Holt. COMMISSIONER HOLT: Move approval. COMMISSIONER POWELL: MS. Holt moves long. We need to move forward with this project. And that's all I have. Any questions? COMMISSIONER POWELL: ^ny questions of Rudy? Mr. Moreno, thank you very much. MR. MORE~O: okay. Thanks, Mr. Chairman. COMMISSIONER POWELL: I'm assmning the applicant does not want to rebut that. Is there anyone else here to speak for, against or on this issue? Seeing none, I will close the combined public hearing. Ms. Holt has something to say here. COMMISSIONER HOLT: I just wanted to say this really looks hke a really great plan and it -- to 14 I5 16 17 18 19 20 21 22 23 24 25 approval. COMMISSIONER ROY: second. COMMISSIONER POWELL: Second by Mr. Roy. Any discussion on 4D? Seeing none, Pll call for a vote. 4D passes 6-0 of those present. That takes care of Item 4 and we thank you very much for that nice presentation. PLANNING AI~ID ZONING MINUTES DECEMBER 15, 2004 Page 61 - Page 64 S:\Our Documents\Ordinances\04~Z04-0045,doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM THE NEIGHBORHOOD REGIONAL MIXED USE 12 (NKMU- 12) ZONING DISTRICT TO A NEIGHBORHOOD REGIONAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION WITH AN OVERLAY TO PERMIT ONLY MULTI-FAMILY USES, NO MORE THAN 150 RESDENTiAL UNITS, AND REDUCE THE SIDE YARD SETBACK FROM 20 FEET TO 15 FEET PLUS ONE FOOT FOR EVERY FOOT OVER 20 FEET OF BUILDING HEIGHT FOR APPROXIMATELY 12.5 ACRES OF LAND LOCATED ON AT THE SOUTHWEST CORNER OF HICKORY STREET AND RUDDELL STREET IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z04-0045) WHEREAS, Isbell Engineering Group, Inc., has applied for a change in zoning for approximately 12.5 acres of land more particularly described in Exhibit "A" attached hereto and made a part hereof as Exhibit "A" (the "Property") from Neighborhood Regional Mixed Use 12 (N-RMU-12) zoning district to a Neighborhood Regional Mixed Use (NRMU) zoning district classification and use designation, with an overlay to permit only multi-family uses, no more than 150 residential units, and reduce the side yard setback from 20 feet to 15 feet plus one foot for every foot over 20 feet ofbnilding height; and WHEREAS, on December 15, 2004, the Planning and Zoning Commission recommended approval of the requested change in zoning; and WHEREAS, the City Council makes the following findings: The change in zoning, including the overlay district, is consistent with the Comprehensive Plan; and The overly district will protect and enhance the Property and surrounding area which are distinct from lands and structures outside of the overlay district and the immediate neighborhood; and The regulations imposed in the overlay district serve important and substantial public interests by preserving the integrity and of the neighborhood surrounding the overlay district while offering a different type; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The zoning district classification and use designation of the Propertyis hereby changed from Neighborhood Regional Mixed Use 12 (NRMU- 12) zoning district to a Neighborhood Regional Mixed Use (NRMU) zoning district classification and use with an overlay to permit only multi-family uses, no more than 150 residential units, and reduce the side yard setback from 20 feet to 15 feet plus one foot for every foot over 20 feet of building height. SECTION 3. Notwithstanding the description of the Property, the property being rezoned includes all property to the centerline of all adjacent street rights-of-way. SECTION 4. The City's official zoning map is amended to show the change in zoning district classification. SECTION 5. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 6. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 7. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the ~ day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY PAGE 2 Exhibit A - AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Planning and Development Department Jon Fortune, Assistant City Manager SUBJECT - Z04-0046 (Renaissance Court, Specific Use PermiO Hold a public hearing and consider adoption of an ordinance concerning a Specific Use Permit for a multi-family developmem. The approximately 12.5 acre property is in a Neighborhood Residemial Mixed Use-12 (NRMU-12) zoning district and is generally located on the south side of Hickory Street, on the west side of Ruddell Street. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND Applicam: Isbell Engineering Group, Inc. Sanger, TX The applicam requests a Specific Use Permit (SUP) for a multi-family developmem. In the Neighborhood Residemial Mixed Use (NRMU) zoning district an SUP is required for all multi- family uses. The applicam, on behalf of the DeNon Housing Authority, is requesting an SUP for 150 multi-family dwelling units. 150 units will allow the applicam to meet the mandatory density as required by the terms of the tax-credit financing for the affordable housing development. This request is in conjunction with Z04-0045 (Zoning to NRMU) and ADP04-0006 (Alternative Developmem Plan). Public notification and property owner responses are provided in Attachmem 3. As of this writing, staff has no written responses from property owners within 200 feet of the subject site. OPTIONS 1. Approve as submitted. 2. Approve with conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval (6-0). ESTIMATED PROJECT SCHEDULE The subject property is platted. PRIOR ACTION/REVIEW The following is a chronology of Z04-0045: Ordinance 2002-040, adopted February 2002 placed the subject property in the Neighborhood Regional Mixed Use 12 (NRMU-12) zoning district and land use classification. Prior to the adoption of the Development Code (Ordinance 2002-040), the property was zoned Multi-Family. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map) 4. Letter from Applicant 5. Site Plan exhibits 6. Landscape Plan 7. Minutes from the December 15, 2004, Planning & Zoning Commission Meeting 8. Draft Ordinance Prepared by: Chris Fuller Planner II Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development ATTACHMENT 1 Staff Analysis Summary_ of Zoning Request The applicant requests a Specific Use Permit (SUP) for a multi-family development. In the Neighborhood Residential Mixed Use (NRMU) zoning district a specific use permit is required for all multi-family uses. The applicant is proposing to demolish the existing vacant 177 multi- family units and construct 150 multi-family units with the associated site improvements. Existing Condition of Property The subject property is developed as the Phoenix Apartments, which are currently vacant. Adjacent Zoning North: Neighborhood 4 (NR-4) zoning district South: Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district East: Community Mixed General (CM-G) zoning district West: Neighborhood Residential 4 (NR-4) zoning district The Denton County Courthouse and Denton County Criminal Justice facilities are located to the east of the subject site. The properties to the west and north are developed as single-family residential uses along Hickory Street. Comprehensive Plan Analysis The subject site is located in an "Existing Land Use" future land use area. New development in this district should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. The request to rezone the subject property is compatible with the Future Land Use Plan (Existing Land Use) and with the surrounding zoning designations. The proposed zoning change is in compliance with the Denton Plan. Development Review Analysis Transportation The property will be accessed by Ruddell Street and Hickory Street. Public Infrastructure Adequate utilities exist to service the proposed development. Development Code / Zoning Analysis The applicant has requested to deviate from the Code in three areas, which will be addressed with the Alternative Development Plan. The applicant proposes alternatives to the street tree requirements and residential buffering requirements. Section 35.6.5 of the Denton Development Code states that a Specific Use Permit shall be issued only if all of the following conditions have been found: 1. That the specific use will be compatible with and not injurious to the use and enjoyment of the other property nor significantly diminish or impair property values within the immediate vicinity; The proposed developmem is less imense than the existing use (less units) and should enhance the property and should not diminish or impair property values in the immediate vicinity. 2. That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; Multi-family uses currently exist on the site, therefore it is unlikely that establishment of this specific use will impede the normal and orderly developmem of the surrounding property. 3. The adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; All necessary supporting facilities are curremly provided, and additional improvemems will be forthcoming with the proposed developmem. 4. The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; All proposed parking areas and driveways meet the requiremems of the City of DeNon. The design and location of the proposed drive-through does not impact pedestrian traffic. Additional pedestrian walkways will be provided. 5. That adequate nuisance preventions measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise, and vibration; The applicam will be required to provide a buffer between the developmem and the existing single-family lots and zoning districts. 6. That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; The development shall adhere to the lighting standards within the Development Code. 7. That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. The applicam has submitted a landscape plan for consideration with this specific use permit request (Attachmem 6). All landscaping and screening requiremems are in conformance with the Denton Development Code or are being considered with the Alternative Development Plan. Section 35.6.6 allows the approval authority to recommend additional conditions on the proposal to protect the public and the welfare of the community. Staff Findings 1. The proposed use is compatible with the intent of The Denton Plan, the Denton Development Code. The applicant has met all requirements of a Specific Use Permit. 2. The establishment of a multi-family development at this location will not have a detrimental impact on the surrounding area. Staff Recommendation Based on the above findings, staff recommends approval of the Specific Use Permit. El ATTACHMENT 2 Map NORTH Land Use Map ATTACHMENT 3 Notification Map NORTH Scale: None Public Notification Date: November 30, 2004 200' Legal Notices* sent via Certified Mail: 31 Number of responses to 200' Legal Notice: · In Opposition: 0 · In Favor: 0 · Neutral: 0 *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 "Int~gr#y In Engtn~rlng" ISBELL ENGINEERING GROUP, INC. STRUCTURAL ' CIVIL · GEO TECHN/CAL · CONS TRUCT/ON MA TERIA LS , S URV£Y November 10, 2004 Members of the Planning and Zoning Commission City of Denton City Hall West Planning and Development Department 221 N. Elm Denton, TX 76201 Re; Denton Housing Authority Renaissance Court Specific Use Permit IEG No: C04358 Dear Planning and Zoning Commission: Isbell Engineering Group, Inc respectfully requests favorable consideration of the Specific Use Permit for the proposed 150 units of Housing Authority apartments in Renaissance Court. The granting of the SUP will be in the public interest to provide high-quality affordable apartments for Denton residents. The proposed development will be a substantial improvement in design and appearance to the existing vacant Phoenix apartments currently on the site. The Southeast Denton neighborhood's character will benefit from the demolition of the existing units and the construction of 150 new, residential-style apartments. The architectural features will meet all design standards in the Development Code. An alternative landscaping design for the residential buffer is included in an accompanying Alternative Development Plan application. HomeT~}ffice':'- 1405 W. Chapman Dr. Sangert Texas 76266 Phone: 940-458-7503 Fax: 940-458-7417 nl ' 't'l i "' r"l iii i '1" =ii ifil I"Fi ,il= e-maih Isbell@isbellengineering.com 1 of 5 400 S. Armstrong Denison, Texas 75020 Phone: 903-465-0333 Fax: 903-4634941 Description of Development Re'mm mis/~ms¢e Ce,itl 1405 W. Chapman Dr. Sanger, Texas 76266 Phone: g,40-158-7503 Fax: gq0-q58-7,+17 e-malh isbell@isbetlengineering.com 2 of 5 Branch O[~ei' ....... q(]O S. Armstrong Denison, Texas 75020 Phone: 903-zi65-0333 ~.~? ........... Demon Ho~g Axal~r The Housing Authority is proposing a major redevelopment of the Phoenix Apartments on Ruddell Street. The apartments will provide elevations that comply with the Denton Development Code and includes a residential~style development, with porches, columns, and pitched roofs. The building faqade will be a mixture of brick and Hardi siding to create a townhouse or row house feel to the development. The development will also include an onsite management office, a pool, a fitness room, a community room, and a laundry facility. There will also be other amenities, such as a gazebo, barbeque grills, and a community garden. As an accent to the buildings, tree-lined walkways will cross the development and connect the buildings. Renaissance Court will contain 150 apartments in two-story buildings. Most units will be two-stories, with the exception of the 12 units that will contain one-story accessible units on the ground with separate apartments above. There will be 53 one-bedroom units, 67 two-bedroom units, and 30 three-bedroom units. The current acreage of the property is 11.092 acres if the 50-foot right-of-way to be abandoned is included. The acreage is 10.7988 if the 50-foot right-of-way is not included as part of the Housing Authority property. Home Office: Branch Office: 1405 W. Chapman Dr. 400 S, Armstrong Sange~, Texas 76266 Denlson, Texas 75020 Phone: 940-458-7503 Phone: 903-465-0333 Pax; 940-458-7417 e-maih isbell@lsbelfengineering.eom Fax: 903-463-1941 3of 5 Request to Planning Director for Variance from Street Trees Parkway Requirements~ The Renaissance Court site is an infill site. The current parkway of 3 feet or less does not allow enough room for the planting of street trees. The existing 4-foot sidewalk will be removed and replaced with a 5-foot sidewalk. IEG requests a variance to allow the sidewalk to be placed along the back of curb. The parkway for the trees would be on the property between the sidewalk and the buildings Renaissance Court Meets the Requirements for Approval: The Specific Use Permit application complies with the following requirements for approval: 1. That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; The proposed Renaissance Court is a significant improvement to the existing, vacant and dilapidated Phoenix Apartments. This will not impair property values. 2. That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; The multifamily use is an existing use on the property. Given that the development will be high quality, the use will not impede surrounding development. 3. That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; Adequate utilities will be provided by tying into existing water and sewer lines. The drainage will be upgraded by underground storm sewer by discharging into the existing drainage channel. The roads have already been dedicated and improved. We propose a private access drive through the entire site that connects Ruddelt Street to Hickory Street. There are existing buildings that were already served by existing infrastructure 4. The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; The development will have an internal drive with fire lanes offthis to serve the apartment buildings. There will be ample pedestrian walkways to the buildings and leading to the improved public sidewalk. ~ .... , .......... 'r' "' Branch Home ce: 1405 W. Chapman Dr. 400 S. Armstrong $anger, Texas 76266 Denlson, Texas 75020 Phone: 940-458-7503 Phone: 903-465-0333 Pax: 940-458-7417 e-mail: isbell@isbellengineer~ng.com Pax: 903-463-1941 4of5 5. That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, chtst, noise and vibration; There will be no nuisances that will require any additional remediation. 6. That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and Lighting will be located on the buildings and will adhere to fighting standards in the City of Denton that allows no more than ~A foot candle of light to go beyond the property line. 7. That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. All of the landscaping complies or exceeds the Denton Development Code with the exception of the buffering to single-family. This issue is being addressed with an enhanced buffering fence and 1 O-foot green buffer in an Alternative Development Plan. We believe the City of Denton will agree that Renaissance Court will be an important improvement to the Southeast Denton neighborhood. We look forward to working with the Denton Housing Authority and the City in bringing this project to a successful completion. Sincerely, ~ Vicki Oppenheim, AICP Home Office: 1405 W. Chapman ~-. Sanger, Texas 76266 Phone: 940-458-7503 Fax: 940-458-7417 e-mall: isbell@lsbe[le, ngineerirtg.co m 5of5 Branch G~..~e: 400 $. Armstrong Dentson, Texas 75020 Phone: g03-465-0333 Fax: 903-.~3-1941 !. IliJJJ ~ CondensoltTM 1 2 3 4 5 6 7 8 10 11 12 13 i4 15 16 17 18 19 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 45 COMMISSIONF_,R POWELL: We wilt now go to Item 4B, 4C and 4D. And I'm going to ask staff to cover all tla~e of these at one time. And then we will have a public hearing covering all three at one time, also. Yes, sir. Mr. Fuller. MR. miLER: ^11 right. Thank you. And good evening. I will try to go through this as quickly and thoroughly as possible. The applicant is requesting to rezone from the NRMU-12 zoning district to file NRMU zoning district with an overlay. This is tile site of file Phoenix Aparunents. The overlay will encompass three areas. It will permit only multi-family uses, no conm~ercial, no retail~ only multi-family uses will be allowed, although the density in the rmMU zoning district is higher than the NaMU-12, the applicant will cap the density to 150 units. That will be the maximum allowable units within that development. The applicant is also requesting to reduce the side yard from 20 feet to 15 feet. And pardon me, this is not working at the moment. Okay. The applicant is requesting file mzoning change in order to meet the mandatory density as required by the terms to the Tax Credit Financing for the Denton -- for file Affordable Housing Development. The rqr~MU zoning will allow the applicant to achieve the 150 Page 46 dwelling units they'd need. Staff has mailed legal notices to the residents for all tlm:e public hearing itmns within 200 feet. We have received none in opposition. Today we did receive several that were ia favor. And you received that in your backup prior to the public hearing. Staff is reconunending approval of the zoning application. And, again, t'd like to clarify that only multi-family uses will be permitted. There wilt be no more than 150 units, and this is actually a reduction from what is currently them, 177 units. We're also considering a Specific Uso Pemfit request. A Specific Use Permit allows staff, the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 47 Development Plan. An Alternative Development Plan is an opportunity -- it's a mechanism when the applicant cannot meet the standards of the Development Code, it can meet the intent or the objectives by providing someflfing that's even better. The applicant is requesting the Alternative Development Plan for tlu'ee issues primarily, the placement of street trees, the residential buffering, and the landscaping within the parking lot. The placement of street trees, the Development Code requires that street trees be placed between a curb and a sidewalk at even intervals of 30 feet. The applicant asserts that there is not enough room along Ruddell to put in the streets between the sidewalk and curb. However, to mitigate that, what they are providing are larger sidewalks, they're increasing from four feet to five feet, and they're going to provide more street trees than are required. For the buffer, if you look, where it says eight foot opaque feuce, you'll see there am single family residential lots that are akcady platted. A multi-family development is required to provide screening to single family zoning districts and residents. Typically, that would be a six-foot high opaque fence with a ten-foot green landscaped area with trees every 30 feet, however, this provides a unique circmnstance that them 1 2 3 4 5 6 7 8 9 10 11 12 Page 48 was a utility casement that runs along those lots. The applicant, therefore, is seeking to put in an eight-foot opaque fence with ten feet of green area, however, you cannot put fences or trees within a utility cascqnent, therefore, rather than putting trees there, they'll put more along Ruddell. In addition, the parking lot landscaping, the applicant is required to present seven percent parking lot landscaping. They're about 350 feet short in one of tile parking lots, I think, two or tkree of the parking lots, a total of 350 feet, which would be about a parking space and a half if you were to have a 9 by 18 parking Conm~ission and City Council to review a site plan. And I know the overhead is a little difficult to read. But if youql look in your backup, you'll see a better copy. The applicant is requesting a Specific Use Permit because in the Neighborhood Residential Mixed Use Zoning District which is before you, in order to develop multi-family, that is, apa~nents, a Specific Use Permit is requil'cd. The applicant is deviating from time coxnponents of our Denton Development Regulations, but we're going to discuss that in a moment with the Alternative Development Plan. So understand with the zoning case, we have the Specific Use Pemtit that is triggered by that rezoning. And we have the Alternative t3 14 15 16 17 18 19 20 21 22 23 24 25 space, that's how much they're short. However, they are going to double the tree canopy coverage within the landscape -- within that parking lot. So before you, we have the zoning with an overlay, you have a Specific Use Request and you have an Alternative Development Plan. Staff reconnnends approval of all three. I'm available for any questions you may have. COMMISSIONER POWELL: Mr. Strange. COMMISSIONE.R STRANGE: would you clarify for me the street tree aspect? I understood you to start with by saying, there was -- we were going to have to modify it because there was not enough room for street PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 45 - Page 48 Condens~ItTM 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 l0 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 49 trees. And then you said they were going to double tile street trees. And then -- because they can't get them in the parking lot, they're going to double the canopy. Whet~e are they going to put these if they can't put them in the area there for the street trees? MR. FULLER: They don't have room to put them between the curb and the sidewalk. They do have -- they would just be closer to the structure& They will be between the sidewalk and the structure rather than the curb and tile sidewalk. You would place thc curb -- normally, you would have curb, tree, sidewalk. What they m~e proposing is curb, larger sidewalk, street trees. So your street trees are going to be closer to your buildings. But there would just be more of them. COMMISSIONER STRANGE: we're not going to make them put them 30 feet apart, are we? MR. FULnEa: NO, they're actually going to have more. COMMISSIONER STRANGE: Good. COMMISSIONER ['dWELL: Mr. Watkins, COMMISSIONER WATKINS: Thank you, Mr. Chairman. What I see across is a creek and presently, there's nothing on the south side of the creek, I think. Docs this go down to the fence for the building, the office building? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 Page 51 Page 50 MR. FULLER: I'll have to let the applicant -- I'm not sure if that does or not. COMMISSIONER WATKINS: okay. I.,ct's back up a little bit. On the drive-through -- MR. FULLER: uh-huh. COMMISSIONER WA'IXINS: -- we have talked somewhat about block length. Now, this is 3/10Ihs of a mile by my odometer. So the drive through the center -- MR. FULLER: That'S an internal access. It acts as a street. But it does meet the intent of the Code. COMMISSIONER WATKINS: It does meet the Code? MR. FULLER: Yes. It's not a public street -- or it's just an internal access. COMMISSIONER WATKINS: okay. Well -- my concern, of course, is you're going to have all of these people in there. And so you're going to build a street in there and put parking places and then turn cars loose through there. Are there any plans -- and this is on the Alternative Development Plan, I suppose, are them any plans to use something other than concrete or asphalt on the parking lot as far as runoff goes? We talked about that some to keep the water from going directly to the creek. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 t6 17 18 19 20 21 22 23 24 25 MR, FULLER: Fronl staff's perspective, that will be more of a platting issue when they come in with their construction plans, what type of material they'll use to construct the street, but the applicant may be able to answer that. COMMISSIONER WATKmS: okay. And you said eight-foot opaqu~ fence on the back side? MR. FULLER: Yes, sir. COMMISSIONER WATKINS: NOW, from what I read, there's going to be some two-story apartments on the back side? MR. FULLER: ~Jh-huh. COMMISSIONER WATKINS: will that meet the Code? MR. FULLER: Yes. Six foot would be required. So riley are acmalty exceeding the Code with an eight-foot fence. COMMISSIONER WATKINS: ^11 right. Thank you. COMMISSIONER POWELL: Dr. Thibodeaux. COMMISSIONER TH[BODEAUX: Yes. Thank you. I'm interested in yom' opaque fence -- I see where tile eight foot and the arrow is pointing there, does it mn all of the way to tile end of that? M~. FU[CER: Xo the left, so to speak? Page 52 COMMISSIONER THIBODEAUX: TO tile left? u}~. FUJIYa: NO, it won't. That will give open access to that park. This site is adjacent to the park area. Now, because this is an Alternative Development Plan, you do have the opportunity to place a condition that they do extend the fence, but if that -- if that condition is what you desire, I would suggest or certainly mention that it would be opportunistic -- it would be a good opportunity to give access to the residents to the park, not just an opaque fence with no access points. COMMISSIONER THIBODEAUX: Right. And arc those properties to the north on your map, they're occupied north of that fence? MR. FULLER: YeS, they are. COMMISSIONER THIBODEAUX: And the additional trees, is that Ruddell? MR~ FULLER: NO, actually -- COMMISSIONer{ THIBODEAUX: where is Ruddell7 MR. FU~.LER: Ruddell, if you're looking, it says additional stnm trees, that is along it's whore Ruddell. COMMISSIONER THIBODEAUX: okay. COMMISSIONER POWELL: That map is not running north and south. It's running sideways, PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 49 - Page 52 CondcnscItTM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER THIBODEAUX: okay. direction, as it's laying there. MR. FULLER: YeS. COMMISSIONER ?OWELL: Any other questions of staff here? Seeing none, I'll ask the applicant if they would look to make a presentation. Please give us your name and address, sir. MR. FULENCHEK: certainly. Good evening. Jeff Fulenchek. 115 Falls Creek in Gunter, Texas. I am vice-president of Carlton Residential ?roperty, the Developer and I'm going to be very short because a lot of this stuff is of technical nature and I'ii turn this over to our civil engineer. But I just wanted to make a couple of points, one of which -- that's already been made. This proposal is actually reducing the density of the curt, eat housing which is there from 177 units to 150. We'd be taking it from 1970's Vintage really dilapidated and vacant property to, obviously, a new Class A building, town home design. We have been Page 53 But for my 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Page 55 five-year process in getting the funding lined up and so forth and we're essentially ready to go as soon as we can get through the zoning process and get a building permit. As been mentioned, we have a zoning request before you and essentially we need to be able to build 150 units because of the financing that we have. And when Isbell Engineering went ahead and did the boundary survey, we discovered that the deed didn't really adequately describe the property that was available for development. Really rather than 12.5 acres, we really have 10.8 at this point. And, thus, we nccd this zoning change to be able to move forward with the project. As has been mentioned, we have a zoning overlay district that will restrict the nmnber of units and the use on the property. We will only build multi-family apartments, no other types of uses will be allowed. Then: will be only 150 units and we also have modified the building setback line along the single family. We also have a right-of-way abandonment working with the neighborhood and thc City for over a year and have had a lot of neighborhood input on this design. And the reason for the zoning, and, again, I'll let Vicky, our civil engineer handle this a little bit more is the deed read that we had a little bit larger amount of acreage because the street dedication wasn't taken into Page 54 account. So when we designed this for a 150 units, wc had thought we were meeting the current zoning. When it was approved for funding, it would have to remain 150 units for that funding to go through and for this housing to be in place. Again, we're file developer. The Housing Authority will be a long-term owner of this. And to answer yotrr question, sir, it docs go to the fence next to the Housing Authority Building. And at this point, I'll turn it over to Vicky, our Civil Enginem:. If you should have any further questions at thc end, just feel fmc to ask. COMMISSIONER POWELL: Give US your name and address, please. MS. APENHEIM: I'm Vicky Apenheim with Isbell Engineering Group, 1405 West Chapman Drive in Sanger, Texas. Ym very pleased to present to you tonight Renaissance Court. It really is a renaissance -- proposed renaissance of this neighborhood, southeast Denton. Right now there are existing Phoenix Apartments, they are completely vacant and this is viewed a~ a complete rehabilitation and renewal of this neighborhood including the entire Ruddcll Street. As been mentioned, there's been a team effort in developing this site. It's been really a 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 application and process that would increase the acreage to 11.092 acres eventually. As has beeu mentioned, the acrcage difference is because of the street dedication, the area in red shows you the property that we do not have that we thought we had originally. Tile site -- the existing Page 56 apartments and the single family to the west. As been mentioned, they are occupied. These are the existing apartments and the drainage channel. And the entire site, 12.5 acres will be rezoned ~RMU. This is sort of a conceptual drawing of what we propose. This is looking from Ruddell to the west, a very walkable pedestrian friendly development row house effect, several architectural styles. We believe it's a very high quality development. And it will be a complete new vision for this neighborhood. I guess I can go on to the Specific Use Permit, if you want me to. COMMISSIONER POWELL: Yes, ma'alll. MS. APENHEIM: okay. We also, as you know, meet the Specific Use Permit if we get the NRMU zoning approved. The site plan shows access off of Hickory as well as Ruddell. This street is a private street that we'll be developing with concrete to answer an earlier question. We propose underground storm sewer into the channel. So all water will get underground into the channel as soon as possible to address drainage issues. We also -- having -- since this is a private street, we're having to treat it as such in terms of landscaping and tree requirements. And that is part of tl~e Alternative Development Plan Request, not only Ruddell Street, but also the internal private street, as well. PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 53 - Page 56 Condens¢ItTM 5 6 7 8 9 10 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 t8 19 20 21 22 23 24 25 Page 57 There's also a clubhouse facility that will be proposed along with the 18 buildings and tin'ce different types. As has been mentioned, only multi-family units will be allowed. We'll have five building styles, which I will be showing you, provide tlaee different building types of Itu'ce possible style variations. And there will be also different configurations because of the different units that we have within each building. This is an example of type one and type two elevations. Typo throe, all brick with hardy side board. And this is an example of a variation. We call it file traditional, having a more colonial look. We have the Texas HilI Country version with brackets and tile gable and more siding. And also the craftsman with a hipped roof, full brick column. We will have 53 one-bedroom apartments, 67 two-bedrooms, 30 three-bedrooms. It will be mixed income development, largely affordable housing. There will be a clubhouse 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Page 59 And this is the proposed monmnent sign for the development on Hickory. I'm here to answer any questions you may have. Also, representatives from file Housing Authority are here as well. Thank you. COMMISSIONER POWELL: Ar~ thgre any questions of the applicant here? Mr. Roy. COMMISSIONER ROY: On one of your drawings you showed an exit of your internal road onto Hickory. That's very near the curve there at Ruddell. Arc we going to be hearing from you folks later on about variances from a curb cut point of view or is that part of the approval we're doing now? MS. APENHEIM: Ire Hickory Street entrance, tile alignment has been approved by the staff. We changed the alignment slightly to linc up with RuddeI1 across the street. And as far as we know, it meets all City requirements and radiuses and alignment and so forth. COMMISSIONER ROY: okay. One 1110113 with on-site management, a pool, fitness room, colrmmnity room, laundry facility. There will be a gazebo, barbecue grills, cotmnunity garden. And we will have numerous trees tkroughout the site. There arc 282 new trees on site, and 40 off site. We're going to have 40 trees off-site across the street near the existing Denton County facility. And that Page 58 will be part of the requirmalents for the ^m, that I will be discussing in a moment. So the Alternative Development Plan is something we also have requested as a third item. As been mentioned, a landscape buffer, we're normally required to have ten feet plus trees, plus a fence. We're providing an enhanced fence and a buffer, but no trees in that buffer. The Housing Authority has met with all but two residents along that fence, and they're all in support of the fence being built on their property line. Everybody in the neighborhood has been in support of this project. We've had -- we had a neighborhood meeting. Wc also had a smaller meeting with other residents. There's been no opposition whatsoever. Also, the parking lot, we doWt quite meet parking lot landscaping, so, again, we have provided extra trees across the street as well as internal trees. Street trees as has been menfioned, the spacing, we don't quite meet in the number, but we've provided them elsewhere as well as we have more than enough u'ee canopy, 63 percent tree canopy on the site versus 40 percent. This is the illustration of the fence that will be along the single family, wood pickets with a masonry colmnn, spaced approximately every 100 feet along the property line. 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 question. Then you talk about trees across the street. MS. APENHEIM: Yes. COMMISSIONER ROY: Is that Housing Authority property there? MS. ^I'nNHmM: This is City right-of-way. And so we will have 40 trees in the City rigla-of-way that the Housing Authority will maintain, plant and maintain. Page 60 COMMISSIONER ROY: Thank you. MS. APENHEIM: SO we will have a visual all along the street. COMMISSIONER POWELL: MS. Holt. COMMISSIONER HOLT: Yeg. So there are really only two entrances, that one on Hickory and then one down on Ruddell and then that -- I~m not talking about that one on that end, this longer portion. MS. APENHE[M: Yes, COMMISSIONER HOLT: tS that enough -- that seems like a lot of apartments to just have one entrance and exit since all of those -- they're just like parking little bays out there or whatever you want to call them, little nodes or something. So there is really only one entrance and one exit. Why is that? MS. APENHEIM: we]l, We believe that is adequate. There are approximately 40 units over here and a little over a 100 here and we believe that is adequate. We want to have the main entrance off of Hickory. And we don't want to have too much traffic flow this way. We wanted to keep it just on the one internal street in and out. At this point, staff has had no problem with that and we believe it's adequate. COMMISSIONER HOLT: okay. That just seems like a lot of traffic possibly. How many parking spaces PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 57 - Page 60 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 61 are provided in that larger area? MS. APENHEIM: well, it's 266 total. I'm not sure of the breakdown between the two. I imagine 2/3rds of that are probably in this area, in the larger area. I'd have to go back to the plans and actually count them out. COMMISSIONER HOLT: And that center road will be two-way? MS, APENHEIM: Yes, COMMISSIONER HOLT: okay, Thank you. COMMISSIONER POWELL: 1 have a question based on Ms. Holt's question, I'm assuming and I know assuming will get me in trouble, that staff could tell me whether the fire marshal has seen this and is okay with it, and I'm getting a nodded yes, so I'll take that as a nodded yes. MS. APENHEIM: Yes, very early on we spoke with the fire marshal and he reviewed it. COMMISSIONER POWELL: Thank you. Any other questions of the applicant? Seeing none, I thank you. MS. APENHEIM: Thank you. COMMISSIONER POWELL: I'll open a public -- a combined public hearing for items 4B, a rezoning of approximately 12 and a half acres; 4C, a Specific Use Permit for mutti-family development; and 4D, an Page 62 Allernative Development Plan for a proposed multi-family development. I only have one card. I'll ask Mr. Moreno if he'd come forward and give us his name and address, and speak on the issue. And I want to point out that Mr. Moreno is a fine example of a former P & Z Conurdssioner. MR. MORENO: YOU want to trade scats? I've had some practice up there. I'm Rudy Moreno, 3608 Marianne Circle h~re in Denton. I'm a board member on the Denton Housing Authority and I just wanted to raise my hand in support of this proposal. And hope that you reconm~end approval to the City Council. It's a good-looking plan in all seriousness. I think it's about time the Housing Authority built something. It's been too t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 I2 13 Page 63 me, it puts our Development Code where it should be, how · it's used, the AD?, the su?. and it's ali being used in a situation whore it should be used, whore there are ciremnstances of file size of the lot, and in-fill and that's where all of those things that we've put in the Development Code should be used, and they're being used correctly. And so i think this looks like a really nice addition. Thank you. COMMISSIONER POWELL: [ believe it would be time for a motion. And I have a, I believe, a motion from Mr. Roy followed by Mr. Wa&ins. COMMISSIONER ROY: I move approval of Item 4B. COMMISSIONER POWELL: I have a motion to approve 4B by Mr. Roy. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: second by Mr. Wa&ins. We will vote on this issue before we go any further. Is there any discussion on 4B? Seeing none, I'll call for a vo~e. 4B passes 6-0 of those present. We will go to 4C. Mr. Strange. COMMISSIONER $IRAN~E: [ would move -- recolrmm~d approval of 4C, which is Z-04-0046. COMMISSIONER POWELL: Thank you, Mr. Strange. Is there a second? Page 64 COMMISSIONER HOLT: second. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: I have a second by Ms. Holt. I believe that was Ms. Holt, was it? MS, CARPENTER: Yes. COMMISSIONER POWELL: she beat out George again. You're a little slow tonight, George. I have a motion and a second. Is there any discussion on the floor? Seeing none, I'll call for a vote. Motion passes 6 to 0 of those present. We're to Item 4D, Ms. Holt. COMMISSIONER HOLT: Move approval. COMMISSIONER POWELL: MS. Holt moves long. We need to move forward with this project. And that's all I have. Any questions? COMMISSIONER POWELL: ^ny questions of Rudy? Mr. Moreno, thank you very much. MR. MORE~O: okay. Thanks, Mr. Chairman. COMMISSIONER POWELL: I'm assmning the applicant does not want to rebut that. Is there anyone else here to speak for, against or on this issue? Seeing none, I will close the combined public hearing. Ms. Holt has something to say here. COMMISSIONER HOLT: I just wanted to say this really looks hke a really great plan and it -- to 14 I5 16 17 18 19 20 21 22 23 24 25 approval. COMMISSIONER ROY: second. COMMISSIONER POWELL: Second by Mr. Roy. Any discussion on 4D? Seeing none, Pll call for a vote. 4D passes 6-0 of those present. That takes care of Item 4 and we thank you very much for that nice presentation. PLANNING AI~ID ZONING MINUTES DECEMBER 15, 2004 Page 61 - Page 64 S:\Our Documents\Ordinances\04~aZ0~-00~6.doe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT FOR A MULTI-FAMILY DEVELOPMENT AND USE ON APPROXIMATELY 12.5 ACRES OF LAND GENERALLY LOCATED AT THE SOUTHWEST CORNER OF HICKORY STREET AND RUDDELL STREET, WITHIN A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION; PROVIDING FOR A PENALTY IN THE MAX]IvlUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (Z04-0046) WHEREAS, Isbell Engineering Group, Inc., has applied for a specific use permit for a multi- family development and use within a Neighborhood Residential Mixed Use zoning district classification and use designation on approximately 12.5 acres as more particularly described in Exhibit "A" attached hereto and made a part hereof by reference (the "Property"); and WHEREAS, on December 15, 2004, the Planning and Zoning Commission recommended approval ora Specific Use Permit for a multi-family development and use in accordance with the site plan on file in the City's Planning Department, a copy of which is attached hereto and made a part hereof as Exhibit "B" (the "Site Plan"); and WHEREAS, the City Council finds that the Specific Use Permit is consistent with The Denton Plan; and WHEREAS, in accordance with Subchapter 6 of the Development Code of the City of Denton, Texas, the City Council finds that all of the following conditions exist: The multi-family development and use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; and The establishment of a multi-family development and use will not impede the normal and orderly development and improvement of surrounding property; and Adequate utilities, access roads, drainage, and other necessary supporting facilities have been or will be provided; and The design, location, and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; and Adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise, and vibration; and Directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and There is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein. SECTION 2. A specific use permit is hereby approved on the Property to allow a multi- family development and use within a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation in accordance with the Site Plan. SECTION 3. Notwithstanding the description of the Property, the property being rezoned includes all property to the centerline of all adjacent street rights-of-way. SECTION 4. The City's official zoning map is amended to show the change in zoning district classification. SECTION 5. Anyperson violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 6. This ordinance shall become effective fourteen (14) days fi.om the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the __ day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: PAGE 2 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY. PAGE 3 Exhibit A - Exhibit B AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: CM/DCM/ACM: January 18, 2005 Planning and Development Department Jon Fortune, Assistant City Manager SUBJECT - ADP04-0006: (Renaissance Court, Alternative Development Plan) Hold a public hearing and consider adoption of an ordinance regarding the Alternative Development Plan for a proposed multi-family development. The approximately 12.5 acre property is in a Neighborhood ResideNial Mixed Use-12 (NRMU-12) zoning district and is generally located on the south side of Hickory Street, on the west side of Ruddell Street. A zoning change for a Neighborhood ResideNial Mixed Use (NRMU) designation and a Specific Use Permit has been requested in association with this application. The Planning and Zoning Commission recommends approval (6-0). BACKGROUND ApplicaN: Isbell Engineering Group, Inc. Sanger, TX The purpose of an alternative development plan is to provide an option for developments that do not meet the site design standards as outlined in the Development Code; but meet or exceed the objectives of the DeNon Plan and DevelopmeN Code. The applicant is proposing to vary from the site design standards concerning street tree location, parking lot landscaping and buffer requirements. The applicant is proposing to plant street trees on both sides of the northern end of Ruddell Street to mitigate the parking lot and street tree requiremeNs. The applicaN also proposes to build an eight foot high buffer fence with masonry columns and trim along the property line adjaceN to the existing single-family lots instead of the required 6' high fence with trees planed at 30 foot intervals in a 10' wide open space. An existing utility easement prevents the applicant from planting the required trees. This request is in conjunction with Z04-0045 (Zoning to NRMU) and Z04-0046 (Specific Use Permit). Public notification and property owner responses are provided in AttachmeN 3. As of this writing, staff has received no written responses from property owners within 200 feet of the subject site. OPTIONS 1. Approve 2. Approve with conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval (6-0). ESTIMATED PROJECT SCHEDULE The subject property is platted. PRIOR ACTION/REVIEW The following is a chronology of Z04-0045: Ordinance 2002-040, adopted February 2002 placed the subject property in the Neighborhood Regional Mixed Use 12 (NRMU-12) zoning district and land use classification. Prior to the adoption of the Development Code (Ordinance 2002-040), the property was zoned Multi-Family. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Public Notification (Property Owner Notification Map) 4. Letter from Applicant 5. Site Plan Exhibits 6. Minutes from the December 15, 2004, Planning & Zoning Commission Meeting 7. Draft Ordinance Prepared by: Chris Fuller Planner II Respectfully submitted: Kelly Carpenter, AICP Director of Planning and Development ATTACHMENT 1 Staff Analysis Summa _ry of Alternative Development Plan Request Placement of Street Trees: Section 35.13.7.C. (Street Tree Requirements) requires the location of street trees to be between the curb and sidewalk, planted at a rate of one tree for every 30 feet and evenly spaced. © The applicant is proposing to vary from the site design standards concerning street trees located along Ruddell Street. The applicant asserts Ruddell Street does not provide enough room for the planting of street trees. The applicant proposes to replace the existing four (4) foot sidewalk with a five (5) foot sidewalk that will be located adjacent to the curb. The street trees would be located between the sidewalk and the buildings. © The proposed street tree design along the internal private drive also varies from the above requirements. The variations include the number of trees (88 required, 76 provided) the location (behind sidewalk) and not being evenly spaced. © To mitigate (or meet the intent of the code) the applicant is proposing to plant 40 street trees along the northern portion of Ruddell on the east side of the street (across the street from their project). Buffer: Section 35.13.8 (Buffer and Screening Requirements) requires a minimum 6' high wood fence and a minimum of 10' landscaped area with one tree for every linear foot. © Although the applicant can provide a fence and the 10' landscaped area, they cannot plant the required trees due to an existing utility easement along the west side of the property. Fences and trees are not permitted to be located within easements. To compensate for the lack of screening trees the applicant is proposing an eight (8) foot tall fence with enhanced details (brick columns & trim), rather than a six (6) foot fence, and additional street trees along Ruddell Street. Parking Lot Landscaping: Section 35.13.10.C (Landscape Standards) requires a minimum of 7% of the total parking area be landscape. © The applicant has divided the parking lots into small sub-areas throughout the development. The rear parking lots fall short of the 7% landscaped area by approximately 200 sf (or about one parking space) and the three smaller lots along Ruddell are short by about 150 sf. The amount of parking provided meets the minimum requirements of the code and due to the constraints of the site (relatively narrow and floodplain) the site design does not allow for any additional parking opportunities which could be converted into landscaped areas. However, the applicant has provided landscaped areas around the perimeters of all the parking lots. Additionally they are providing sidewalks adjacent to all the parking lots creating a pedestrian system linking buildings to parking lots and to the public sidewalks. If the amount of landscaped areas adjacent to the parking lots is considered into the calculations, the amount of landscaped area within 15' of the parking lots is over 25%. Additionally, the applicant is providing additional tree canopy coverage (approximately twice the required 15%) to offset the reduced landscaped area. Existing Condition of Property The subject property is developed as the Phoenix Apartments, which are currently vacant. Adjacent Zoning North: Neighborhood 4 (NR-4) zoning district South: Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district East: Community Mixed General (CM-G) zoning district West: Neighborhood Residential 4 (NR-4) zoning district The Denton County Courthouse and Denton County Criminal Justice facilities are located to the east of the subject site. The properties to the west and north are developed as single-family residential uses along Hickory Street. Comprehensive Plan Analysis The subject site is located in an "Existing Land Use" future land use area. New development in this district should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. Development Code/Zoning Analysis Section 35.13.5 (Alternative Development Plan) states, "An applicant may propose an Alternative Development Plan which meets or exceeds the design objectives of this Subchapter but does not meet the standards of this Subchapter. The Alternative Development Plan provides the option to address the design criteria through a flexible discretionary." (listed below) identifies the criteria for approval of an Alternative Preserve Existing Neighborhoods. The proposed development will replace the currently vacant Phoenix Apartments. The development will also buffer the existing neighborhood from the Denton County Correctional Facilities. The addition of street trees and public walkways will improve the existing streetscape. 2. Assure quality development that fits in with the character of Denton. The proposed building elevations will conform to the standards set forth within the Development Code. The development will include a clubhouse, recreational amenities, as well as additional open space. 3. Focus new development to activity centers to curb strip development and urban sprawl. The proposed development is neither strip development nor urban sprawl. 4. Ensure that infrastructure is capable of accommodating development prior to the development occurring. The infrastructure in the site area will be adequate to serve the proposed development. The applicant has provided documentation (Attachment 5) explaining the reasons for the parking lot design as proposed. Section 35.13.5.A. Development Plan. 1. STAFF FINDINGS 1. The proposed eight (8) foot opaque fence, with ten (10) feet of green space, is an adequate buffer between the development and the existing single-family lots and meets the intent of the code; 2. The proposed location of street trees on site will provide the desire streetscape and will minimize the deviation from the standards of the Development Code, additionally, the proposed additional street trees along Ruddell Street exceeds the intent of the code; 3. The landscape areas adjacent to the parking lots and the additional tree canopy coverage minimizes the lack of landscaped area in the parking lots and meets the intent of the code 4. The proposed site design meets the intent of the Development Code. STAFF RECOMMENDATION Staff'recommends approval of ADP04-0006. El ATTACHMENT 2 Map NORTH Land Use Map ATTACHMENT 3 Notification Map NORTH Scale: None Public Notification Date: November 30, 2004 200' Legal Notices* sent via Certified Mail: 31 Number of responses to 200' Legal Notice: · In Opposition: 0 · In Favor: 0 · Neutral: 0 *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 ISBELL ENGINEERING GROUP, INC. STRUCTURAL · CIVIL · GEO TECHNICAL · CONSTRUCTION MATERIALS' SURVEY December 8, 2004 Members of the Planning and Zoning Commission City of Denton City Hall West Planning and Development Department 221 N. Elm Denton, TX 76201 Denton Housing Authority · Renaissance Court Alternative Development Plan lEG No: C04358 Isbell Engineering Group, Inc respexlfidly requests favorable consideration of the Alternative Development Plan for the Housing Authority's proposed Renaissance Court apartments. This request is a companion application with the Specific Use Permit application and the Zoning Amendment application. We request an alternative for the 10-foot buffer along the residential properties to the west. We also request an alternative for the street tree requirements. All other landSCaping elements will comply with the Denton Development Code. The site was platted in 1970 as the Dreamland Addition Plat. This plat dedicated a 16-foot utility along its western boundary that holds a sanitary sewer line. Given that this was an existing utility easement, the Housing Authority did not create this condition. Since fences and trees are not permitted in utility easements, it is not possible to build a 6-foot high fence in the easement as well as plant trees every 30 feet. A practical alternative to the buffeting requirements is to provide an enhanced screening fence on the property line and leave 10 feet of green, buffer space within the property. The screening fence will have cedar posts with 8-foot masonry columns and a decorative cap every 100 feet. Along the existing single-family homes, 956 linear feet will have an enhanced 8-foot screening fence (see Detail Sheet), which ends at an adequate site distance from the last house to the south. Summary of ADP Requests: 1. Plant Street Trees Behind the Sidewalk, Not In the Parkway: The Renaissance Court site is an infill site. The current parkway on Ruddell Street of 3 feet or less does not allow ~Home Office: 1405 W, Chapman Dr. Sanger, Texas 76256 Phone: 940-458..7503 Fax: 940-458-7417 e-mail: isbell~lsbellengineering,com 1 of 3 Branch Office: Deflison, Texas 75020 Phone: 903-465-0333 Fax; 903-463-1941 enough room for the planting of street trees. The existing 4-foot sidewalk will be removed and replaced with a 5-foot sidewalk. IEG requests a variance to allow the sidewalk to be plac~ along the back of curb. The parkway for the trees would be on the property between the sidewalk and the buildings. This will also be the case for the street trees on the internal, private street. The width of the site is only 275 feet, not enough to be able to plant the trees in a parkway with two rows of buildings and an internal street.. Replace 10-foot Buffer and Tree~ Behind Wood Buffer Fence: 956 linear feet of · enhanced fence with masonry columns to replace typical wood fence and steel posts. 14o buffer trees provided, but green space is provided. No buffer fence will be required adjacent to the Phoenix Park. Regularly-Spaced Street Trees at a Rate of 1:30 Linear Feet: Only 34 rather than 57 street trees will be planted on the west side of the internal street. Only 49 trees will be on the east side. 40 street trees will be planted on Ruddell Stre~ to compensate for the street tree requirement. The Housing Authority will maintain these trees. These stree~ trees will also help SCreen the county jait from view of the apartment residents. The ADP me~s all of the four criteria for an Alternative Development Plan: 1. Preserve Eristing Neighborhood: The Renaissance Court WIll be a high quality addition to the neighborhood. The residemial architecture will preserve the residential character of the neighborhood while also enhancing the neighborhood. The development will also buffer the neighborhood from the Denton County Courthouse and Jail. The street trees that are being planted on the east side of Ruddell Street as part of the ADP will enhance the entire streetscape and upgrade the neighborhood beyond the immediate property. 2. Assure quality development that fits in with the character of Denton: The attractive brick and Hardi siding buildings with residential, row-house architecture is a quality development that wilt enhance the neighborhood and the Denton County hub.- The proposed amenities, including a clubhouse with a pool and a go?ebo, will provide recreational and open space features that will enhance the image of the City of Denton. The enhanced buffer fence will also add a quality feature to the residences behind the project. 3. Focus new development to activity centers to curb strip development and urban sprawl: This project is the redevelopment of a distressed irzfill property. The property is also adjacent to the Denton County facilities, a major activity c~ater for the City of Denton. 4. Ensure that infrastructure is capable of accommodating development prior to the development occurring: Adequate utilities will be provided by tying into existing water and sewer lines. The drainage will be upgraded by underground storm sewer by discharging into the existing drainage channel. The roads have already been dedicated and improved. We propose a private access drive through the entire site that come. ets Ruddell Street to Hickory Street. There are existing buildings that were already served by existing infrastructure. 1405 W. Chapman Dr. Sanger~ Texas 76266 Phone: 940-458-7503 Pax; 940-45&7417 . e-mail: isbe~l~isbellengineering.com 2of3 Bran~:b' ~ice: 400 $. Arms~ong Denlson, Texas 75020 Phone: 903-465-0333 Fax: ~03~4&3-194I We beli~e thc City of Denton will a~r¢o that Renaissanoo Court will be an important improvement to the Southeast Denton neighborhood. We look forward to working with the Denton Housing Authority and the City in bringing this project to a successful completion. Vieki Oppenl~eirn, AICP 1405 W. Ct~pman Dr. Sanger~ Texas 76266 Phone: 940-458-7503 Fax: 940-458-7417 I Jill ' I"I' i e-maih isbe~l@isbeJtengineering,com 3of3 Branch Office: 400 S. Armstrong Denison, Texas 75020 Phone: 903-465-0333 Fax: 903-463-1941 I I il ~ CondensoltTM 1 2 3 4 5 6 7 8 10 11 12 13 i4 15 16 17 18 19 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 45 COMMISSIONF_,R POWELL: We wilt now go to Item 4B, 4C and 4D. And I'm going to ask staff to cover all tla~e of these at one time. And then we will have a public hearing covering all three at one time, also. Yes, sir. Mr. Fuller. MR. miLER: ^11 right. Thank you. And good evening. I will try to go through this as quickly and thoroughly as possible. The applicant is requesting to rezone from the NRMU-12 zoning district to file NRMU zoning district with an overlay. This is tile site of file Phoenix Aparunents. The overlay will encompass three areas. It will permit only multi-family uses, no conm~ercial, no retail~ only multi-family uses will be allowed, although the density in the rmMU zoning district is higher than the NaMU-12, the applicant will cap the density to 150 units. That will be the maximum allowable units within that development. The applicant is also requesting to reduce the side yard from 20 feet to 15 feet. And pardon me, this is not working at the moment. Okay. The applicant is requesting file mzoning change in order to meet the mandatory density as required by the terms to the Tax Credit Financing for the Denton -- for file Affordable Housing Development. The rqr~MU zoning will allow the applicant to achieve the 150 Page 46 dwelling units they'd need. Staff has mailed legal notices to the residents for all tlm:e public hearing itmns within 200 feet. We have received none in opposition. Today we did receive several that were ia favor. And you received that in your backup prior to the public hearing. Staff is reconunending approval of the zoning application. And, again, t'd like to clarify that only multi-family uses will be permitted. There wilt be no more than 150 units, and this is actually a reduction from what is currently them, 177 units. We're also considering a Specific Uso Pemfit request. A Specific Use Permit allows staff, the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 47 Development Plan. An Alternative Development Plan is an opportunity -- it's a mechanism when the applicant cannot meet the standards of the Development Code, it can meet the intent or the objectives by providing someflfing that's even better. The applicant is requesting the Alternative Development Plan for tlu'ee issues primarily, the placement of street trees, the residential buffering, and the landscaping within the parking lot. The placement of street trees, the Development Code requires that street trees be placed between a curb and a sidewalk at even intervals of 30 feet. The applicant asserts that there is not enough room along Ruddell to put in the streets between the sidewalk and curb. However, to mitigate that, what they are providing are larger sidewalks, they're increasing from four feet to five feet, and they're going to provide more street trees than are required. For the buffer, if you look, where it says eight foot opaque feuce, you'll see there am single family residential lots that are akcady platted. A multi-family development is required to provide screening to single family zoning districts and residents. Typically, that would be a six-foot high opaque fence with a ten-foot green landscaped area with trees every 30 feet, however, this provides a unique circmnstance that them 1 2 3 4 5 6 7 8 9 10 11 12 Page 48 was a utility casement that runs along those lots. The applicant, therefore, is seeking to put in an eight-foot opaque fence with ten feet of green area, however, you cannot put fences or trees within a utility cascqnent, therefore, rather than putting trees there, they'll put more along Ruddell. In addition, the parking lot landscaping, the applicant is required to present seven percent parking lot landscaping. They're about 350 feet short in one of tile parking lots, I think, two or tkree of the parking lots, a total of 350 feet, which would be about a parking space and a half if you were to have a 9 by 18 parking Conm~ission and City Council to review a site plan. And I know the overhead is a little difficult to read. But if youql look in your backup, you'll see a better copy. The applicant is requesting a Specific Use Permit because in the Neighborhood Residential Mixed Use Zoning District which is before you, in order to develop multi-family, that is, apa~nents, a Specific Use Permit is requil'cd. The applicant is deviating from time coxnponents of our Denton Development Regulations, but we're going to discuss that in a moment with the Alternative Development Plan. So understand with the zoning case, we have the Specific Use Pemtit that is triggered by that rezoning. And we have the Alternative t3 14 15 16 17 18 19 20 21 22 23 24 25 space, that's how much they're short. However, they are going to double the tree canopy coverage within the landscape -- within that parking lot. So before you, we have the zoning with an overlay, you have a Specific Use Request and you have an Alternative Development Plan. Staff reconnnends approval of all three. I'm available for any questions you may have. COMMISSIONER POWELL: Mr. Strange. COMMISSIONE.R STRANGE: would you clarify for me the street tree aspect? I understood you to start with by saying, there was -- we were going to have to modify it because there was not enough room for street PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 45 - Page 48 Condens~ItTM 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 l0 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 49 trees. And then you said they were going to double tile street trees. And then -- because they can't get them in the parking lot, they're going to double the canopy. Whet~e are they going to put these if they can't put them in the area there for the street trees? MR. FULLER: They don't have room to put them between the curb and the sidewalk. They do have -- they would just be closer to the structure& They will be between the sidewalk and the structure rather than the curb and tile sidewalk. You would place thc curb -- normally, you would have curb, tree, sidewalk. What they m~e proposing is curb, larger sidewalk, street trees. So your street trees are going to be closer to your buildings. But there would just be more of them. COMMISSIONER STRANGE: we're not going to make them put them 30 feet apart, are we? MR. FULnEa: NO, they're actually going to have more. COMMISSIONER STRANGE: Good. COMMISSIONER ['dWELL: Mr. Watkins, COMMISSIONER WATKINS: Thank you, Mr. Chairman. What I see across is a creek and presently, there's nothing on the south side of the creek, I think. Docs this go down to the fence for the building, the office building? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 Page 51 Page 50 MR. FULLER: I'll have to let the applicant -- I'm not sure if that does or not. COMMISSIONER WATKINS: okay. I.,ct's back up a little bit. On the drive-through -- MR. FULLER: uh-huh. COMMISSIONER WA'IXINS: -- we have talked somewhat about block length. Now, this is 3/10Ihs of a mile by my odometer. So the drive through the center -- MR. FULLER: That'S an internal access. It acts as a street. But it does meet the intent of the Code. COMMISSIONER WATKINS: It does meet the Code? MR. FULLER: Yes. It's not a public street -- or it's just an internal access. COMMISSIONER WATKINS: okay. Well -- my concern, of course, is you're going to have all of these people in there. And so you're going to build a street in there and put parking places and then turn cars loose through there. Are there any plans -- and this is on the Alternative Development Plan, I suppose, are them any plans to use something other than concrete or asphalt on the parking lot as far as runoff goes? We talked about that some to keep the water from going directly to the creek. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 t6 17 18 19 20 21 22 23 24 25 MR, FULLER: Fronl staff's perspective, that will be more of a platting issue when they come in with their construction plans, what type of material they'll use to construct the street, but the applicant may be able to answer that. COMMISSIONER WATKmS: okay. And you said eight-foot opaqu~ fence on the back side? MR. FULLER: Yes, sir. COMMISSIONER WATKINS: NOW, from what I read, there's going to be some two-story apartments on the back side? MR. FULLER: ~Jh-huh. COMMISSIONER WATKINS: will that meet the Code? MR. FULLER: Yes. Six foot would be required. So riley are acmalty exceeding the Code with an eight-foot fence. COMMISSIONER WATKINS: ^11 right. Thank you. COMMISSIONER POWELL: Dr. Thibodeaux. COMMISSIONER TH[BODEAUX: Yes. Thank you. I'm interested in yom' opaque fence -- I see where tile eight foot and the arrow is pointing there, does it mn all of the way to tile end of that? M~. FU[CER: Xo the left, so to speak? Page 52 COMMISSIONER THIBODEAUX: TO tile left? u}~. FUJIYa: NO, it won't. That will give open access to that park. This site is adjacent to the park area. Now, because this is an Alternative Development Plan, you do have the opportunity to place a condition that they do extend the fence, but if that -- if that condition is what you desire, I would suggest or certainly mention that it would be opportunistic -- it would be a good opportunity to give access to the residents to the park, not just an opaque fence with no access points. COMMISSIONER THIBODEAUX: Right. And arc those properties to the north on your map, they're occupied north of that fence? MR. FULLER: YeS, they are. COMMISSIONER THIBODEAUX: And the additional trees, is that Ruddell? MR~ FULLER: NO, actually -- COMMISSIONer{ THIBODEAUX: where is Ruddell7 MR. FU~.LER: Ruddell, if you're looking, it says additional stnm trees, that is along it's whore Ruddell. COMMISSIONER THIBODEAUX: okay. COMMISSIONER POWELL: That map is not running north and south. It's running sideways, PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 49 - Page 52 CondcnscItTM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER THIBODEAUX: okay. direction, as it's laying there. MR. FULLER: YeS. COMMISSIONER ?OWELL: Any other questions of staff here? Seeing none, I'll ask the applicant if they would look to make a presentation. Please give us your name and address, sir. MR. FULENCHEK: certainly. Good evening. Jeff Fulenchek. 115 Falls Creek in Gunter, Texas. I am vice-president of Carlton Residential ?roperty, the Developer and I'm going to be very short because a lot of this stuff is of technical nature and I'ii turn this over to our civil engineer. But I just wanted to make a couple of points, one of which -- that's already been made. This proposal is actually reducing the density of the curt, eat housing which is there from 177 units to 150. We'd be taking it from 1970's Vintage really dilapidated and vacant property to, obviously, a new Class A building, town home design. We have been Page 53 But for my 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Page 55 five-year process in getting the funding lined up and so forth and we're essentially ready to go as soon as we can get through the zoning process and get a building permit. As been mentioned, we have a zoning request before you and essentially we need to be able to build 150 units because of the financing that we have. And when Isbell Engineering went ahead and did the boundary survey, we discovered that the deed didn't really adequately describe the property that was available for development. Really rather than 12.5 acres, we really have 10.8 at this point. And, thus, we nccd this zoning change to be able to move forward with the project. As has been mentioned, we have a zoning overlay district that will restrict the nmnber of units and the use on the property. We will only build multi-family apartments, no other types of uses will be allowed. Then: will be only 150 units and we also have modified the building setback line along the single family. We also have a right-of-way abandonment working with the neighborhood and thc City for over a year and have had a lot of neighborhood input on this design. And the reason for the zoning, and, again, I'll let Vicky, our civil engineer handle this a little bit more is the deed read that we had a little bit larger amount of acreage because the street dedication wasn't taken into Page 54 account. So when we designed this for a 150 units, wc had thought we were meeting the current zoning. When it was approved for funding, it would have to remain 150 units for that funding to go through and for this housing to be in place. Again, we're file developer. The Housing Authority will be a long-term owner of this. And to answer yotrr question, sir, it docs go to the fence next to the Housing Authority Building. And at this point, I'll turn it over to Vicky, our Civil Enginem:. If you should have any further questions at thc end, just feel fmc to ask. COMMISSIONER POWELL: Give US your name and address, please. MS. APENHEIM: I'm Vicky Apenheim with Isbell Engineering Group, 1405 West Chapman Drive in Sanger, Texas. Ym very pleased to present to you tonight Renaissance Court. It really is a renaissance -- proposed renaissance of this neighborhood, southeast Denton. Right now there are existing Phoenix Apartments, they are completely vacant and this is viewed a~ a complete rehabilitation and renewal of this neighborhood including the entire Ruddcll Street. As been mentioned, there's been a team effort in developing this site. It's been really a 2O 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 application and process that would increase the acreage to 11.092 acres eventually. As has beeu mentioned, the acrcage difference is because of the street dedication, the area in red shows you the property that we do not have that we thought we had originally. Tile site -- the existing Page 56 apartments and the single family to the west. As been mentioned, they are occupied. These are the existing apartments and the drainage channel. And the entire site, 12.5 acres will be rezoned ~RMU. This is sort of a conceptual drawing of what we propose. This is looking from Ruddell to the west, a very walkable pedestrian friendly development row house effect, several architectural styles. We believe it's a very high quality development. And it will be a complete new vision for this neighborhood. I guess I can go on to the Specific Use Permit, if you want me to. COMMISSIONER POWELL: Yes, ma'alll. MS. APENHEIM: okay. We also, as you know, meet the Specific Use Permit if we get the NRMU zoning approved. The site plan shows access off of Hickory as well as Ruddell. This street is a private street that we'll be developing with concrete to answer an earlier question. We propose underground storm sewer into the channel. So all water will get underground into the channel as soon as possible to address drainage issues. We also -- having -- since this is a private street, we're having to treat it as such in terms of landscaping and tree requirements. And that is part of tl~e Alternative Development Plan Request, not only Ruddell Street, but also the internal private street, as well. PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 53 - Page 56 Condens¢ItTM 5 6 7 8 9 10 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 t8 19 20 21 22 23 24 25 Page 57 There's also a clubhouse facility that will be proposed along with the 18 buildings and tin'ce different types. As has been mentioned, only multi-family units will be allowed. We'll have five building styles, which I will be showing you, provide tlaee different building types of Itu'ce possible style variations. And there will be also different configurations because of the different units that we have within each building. This is an example of type one and type two elevations. Typo throe, all brick with hardy side board. And this is an example of a variation. We call it file traditional, having a more colonial look. We have the Texas HilI Country version with brackets and tile gable and more siding. And also the craftsman with a hipped roof, full brick column. We will have 53 one-bedroom apartments, 67 two-bedrooms, 30 three-bedrooms. It will be mixed income development, largely affordable housing. There will be a clubhouse 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Page 59 And this is the proposed monmnent sign for the development on Hickory. I'm here to answer any questions you may have. Also, representatives from file Housing Authority are here as well. Thank you. COMMISSIONER POWELL: Ar~ thgre any questions of the applicant here? Mr. Roy. COMMISSIONER ROY: On one of your drawings you showed an exit of your internal road onto Hickory. That's very near the curve there at Ruddell. Arc we going to be hearing from you folks later on about variances from a curb cut point of view or is that part of the approval we're doing now? MS. APENHEIM: Ire Hickory Street entrance, tile alignment has been approved by the staff. We changed the alignment slightly to linc up with RuddeI1 across the street. And as far as we know, it meets all City requirements and radiuses and alignment and so forth. COMMISSIONER ROY: okay. One 1110113 with on-site management, a pool, fitness room, colrmmnity room, laundry facility. There will be a gazebo, barbecue grills, cotmnunity garden. And we will have numerous trees tkroughout the site. There arc 282 new trees on site, and 40 off site. We're going to have 40 trees off-site across the street near the existing Denton County facility. And that Page 58 will be part of the requirmalents for the ^m, that I will be discussing in a moment. So the Alternative Development Plan is something we also have requested as a third item. As been mentioned, a landscape buffer, we're normally required to have ten feet plus trees, plus a fence. We're providing an enhanced fence and a buffer, but no trees in that buffer. The Housing Authority has met with all but two residents along that fence, and they're all in support of the fence being built on their property line. Everybody in the neighborhood has been in support of this project. We've had -- we had a neighborhood meeting. Wc also had a smaller meeting with other residents. There's been no opposition whatsoever. Also, the parking lot, we doWt quite meet parking lot landscaping, so, again, we have provided extra trees across the street as well as internal trees. Street trees as has been menfioned, the spacing, we don't quite meet in the number, but we've provided them elsewhere as well as we have more than enough u'ee canopy, 63 percent tree canopy on the site versus 40 percent. This is the illustration of the fence that will be along the single family, wood pickets with a masonry colmnn, spaced approximately every 100 feet along the property line. 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 question. Then you talk about trees across the street. MS. APENHEIM: Yes. COMMISSIONER ROY: Is that Housing Authority property there? MS. ^I'nNHmM: This is City right-of-way. And so we will have 40 trees in the City rigla-of-way that the Housing Authority will maintain, plant and maintain. Page 60 COMMISSIONER ROY: Thank you. MS. APENHEIM: SO we will have a visual all along the street. COMMISSIONER POWELL: MS. Holt. COMMISSIONER HOLT: Yeg. So there are really only two entrances, that one on Hickory and then one down on Ruddell and then that -- I~m not talking about that one on that end, this longer portion. MS. APENHE[M: Yes, COMMISSIONER HOLT: tS that enough -- that seems like a lot of apartments to just have one entrance and exit since all of those -- they're just like parking little bays out there or whatever you want to call them, little nodes or something. So there is really only one entrance and one exit. Why is that? MS. APENHEIM: we]l, We believe that is adequate. There are approximately 40 units over here and a little over a 100 here and we believe that is adequate. We want to have the main entrance off of Hickory. And we don't want to have too much traffic flow this way. We wanted to keep it just on the one internal street in and out. At this point, staff has had no problem with that and we believe it's adequate. COMMISSIONER HOLT: okay. That just seems like a lot of traffic possibly. How many parking spaces PLANNING AND ZONING MINUTES DECEMBER 15, 2004 Page 57 - Page 60 CondenseltTM 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 Page 61 are provided in that larger area? MS. APENHEIM: well, it's 266 total. I'm not sure of the breakdown between the two. I imagine 2/3rds of that are probably in this area, in the larger area. I'd have to go back to the plans and actually count them out. COMMISSIONER HOLT: And that center road will be two-way? MS, APENHEIM: Yes, COMMISSIONER HOLT: okay, Thank you. COMMISSIONER POWELL: 1 have a question based on Ms. Holt's question, I'm assuming and I know assuming will get me in trouble, that staff could tell me whether the fire marshal has seen this and is okay with it, and I'm getting a nodded yes, so I'll take that as a nodded yes. MS. APENHEIM: Yes, very early on we spoke with the fire marshal and he reviewed it. COMMISSIONER POWELL: Thank you. Any other questions of the applicant? Seeing none, I thank you. MS. APENHEIM: Thank you. COMMISSIONER POWELL: I'll open a public -- a combined public hearing for items 4B, a rezoning of approximately 12 and a half acres; 4C, a Specific Use Permit for mutti-family development; and 4D, an Page 62 Allernative Development Plan for a proposed multi-family development. I only have one card. I'll ask Mr. Moreno if he'd come forward and give us his name and address, and speak on the issue. And I want to point out that Mr. Moreno is a fine example of a former P & Z Conurdssioner. MR. MORENO: YOU want to trade scats? I've had some practice up there. I'm Rudy Moreno, 3608 Marianne Circle h~re in Denton. I'm a board member on the Denton Housing Authority and I just wanted to raise my hand in support of this proposal. And hope that you reconm~end approval to the City Council. It's a good-looking plan in all seriousness. I think it's about time the Housing Authority built something. It's been too t 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 I2 13 Page 63 me, it puts our Development Code where it should be, how · it's used, the AD?, the su?. and it's ali being used in a situation whore it should be used, whore there are ciremnstances of file size of the lot, and in-fill and that's where all of those things that we've put in the Development Code should be used, and they're being used correctly. And so i think this looks like a really nice addition. Thank you. COMMISSIONER POWELL: [ believe it would be time for a motion. And I have a, I believe, a motion from Mr. Roy followed by Mr. Wa&ins. COMMISSIONER ROY: I move approval of Item 4B. COMMISSIONER POWELL: I have a motion to approve 4B by Mr. Roy. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: second by Mr. Wa&ins. We will vote on this issue before we go any further. Is there any discussion on 4B? Seeing none, I'll call for a vo~e. 4B passes 6-0 of those present. We will go to 4C. Mr. Strange. COMMISSIONER $IRAN~E: [ would move -- recolrmm~d approval of 4C, which is Z-04-0046. COMMISSIONER POWELL: Thank you, Mr. Strange. Is there a second? Page 64 COMMISSIONER HOLT: second. COMMISSIONER WATKINS: second. COMMISSIONER POWELL: I have a second by Ms. Holt. I believe that was Ms. Holt, was it? MS, CARPENTER: Yes. COMMISSIONER POWELL: she beat out George again. You're a little slow tonight, George. I have a motion and a second. Is there any discussion on the floor? Seeing none, I'll call for a vote. Motion passes 6 to 0 of those present. We're to Item 4D, Ms. Holt. COMMISSIONER HOLT: Move approval. COMMISSIONER POWELL: MS. Holt moves long. We need to move forward with this project. And that's all I have. Any questions? COMMISSIONER POWELL: ^ny questions of Rudy? Mr. Moreno, thank you very much. MR. MORE~O: okay. Thanks, Mr. Chairman. COMMISSIONER POWELL: I'm assmning the applicant does not want to rebut that. Is there anyone else here to speak for, against or on this issue? Seeing none, I will close the combined public hearing. Ms. Holt has something to say here. COMMISSIONER HOLT: I just wanted to say this really looks hke a really great plan and it -- to 14 I5 16 17 18 19 20 21 22 23 24 25 approval. COMMISSIONER ROY: second. COMMISSIONER POWELL: Second by Mr. Roy. Any discussion on 4D? Seeing none, Pll call for a vote. 4D passes 6-0 of those present. That takes care of Item 4 and we thank you very much for that nice presentation. PLANNING AI~ID ZONING MINUTES DECEMBER 15, 2004 Page 61 - Page 64 S:\Our Documenls\Ordinances\04L~DP04-0006.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AN ALTERNATIVE DEVELOPMENT PLAN ON APROXIMATELY 12.5 ACRES OF LAND GENERALLY LOCATED AT THE SOUTHWEST CORNER OF HICKORY STREET AND RUDDELL STREET, WITHIN A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR THE PURPOSE OF APPROVIDING ALTERNATWES TO CERTAIN SITE DESIGN STANDARDS INCLUDING LOCATING STREET TREES BETWEEN THE SIDEWALK AND THE BUILDINGS, PROVIDING AN EIGHT (8) FOOT TALL FENCE WITH ENHANCED DETAILS (BRICK COLUMNS & TRIM) BETWEEN MULTI-FAMILTY DEVELOPMENT AND THE ADJACENT SINGLE-FAMILY RESIDENTIAL LOTS, PROVIDING ADDITIONAL TREE CANOPY COVERAGE WITHIN THE PARKING LOTS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. (ADP04-0006) WHEREAS, Isbell Engineering Group, Inc., has applied for an alternative development plan which is on file in the City's Planning Department, a copy of which is attached hereto and made a part hereof as Exhibit "A" (the Alternative Development Plan), on approximately 12.5 acres of land located in a Neighborhood Residential Mixed Use (NRMU) zoning district, as more particularly described in Exhibit "B' attached hereto and made a part hereof by reference (the "Property"); and WHEREAS, on December 15, 2004, the Planning and Zoning Commission recommended approval of a Alternative Development Plan providing alternative site design standards, including locating street trees between the sidewalk and the buildings, providing an eight (8) foot tall fence with enhanced details (brick colunms & trim) between the multi-family development and the adjacent single-family residential lots, and providing additional tree canopy coverage within the parking lots; and WHEREAS, the City Council finds that the Alternative Development Plan is consistent with The Denton Plan, it meets or exceeds the design objectives in Subchapter 13 of the Denton Development Code, and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein. SECTION 2. The Alternative Development Plan is hereby approved. SECTION 3. If any provision of this ordinance or the application thereof to anyperson or circumstance is held invalid by any court, sUCh invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are servable. SECTION 4. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the __ day of ., 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: PAGE 2 Exhibit A Exhibit B AGENDA INFORMATION SHEET AGENDA DATE: January 18, 2005 DEPARTMENT: Legal CM/DCM/ACM: Herbert L. Prouty, City Attorney SUBJECT: Continue a public hearing and consider approval of an ordinance of the City of Denton, Texas, finding that the current rates of CoServ Gas Ltd. are unreasonable; approving CoServ Gas Ltd.'s revised and uncontested tariffs; approving a rate phase-in; authorizing continuation of deferral of carrying charges on plant held for future use; recognizing CoServ's right to surcharge for facility relocation required by the City; setting the effective date of new tariffs as February 1, 2005; finding the Cities' rate case expenses reasonable; sevehng the determination of the reasonableness of CoServ Gas Ltd.'s rate case expense from approval of the revised tariffs; retaining jurisdiction over the determination of the reasonableness of CoServ Gas Ltd.'s rate case expense issue until March 1, 2005; adopting a base rate case moratorium; finding that any relief requested by CoServ Gas Ltd. not specifically granted herein is denied; adopting a most favored nations provision; finding that the meeting at which this Ordinance is passed is open to the pubhc as required by law; and providing for notice of this Ordinance to CoServ Gas Ltd; and providing an effective date. BACKGROUND: On August 25 of this year, CoServ Gas, Ltd. (CoServ) filed a system wide request for a gas rate increase requesting $1,165,525 in additional annual revenue. The increase was filed in twenty-five cities in CoServ's current distribution system including the City of Denton. The gas rate request constituted an overall 19.4 percent increase in total revenues, (excluding gas costs) for CoServ. CoServ's request also included a number of other increases including a surcharge on customer bills to recover pipeline safety fees assessed by the Railroad Commission, a rate case expense surcharge to cover reasonable expenses relating to the filing of CoServ's Statement of Intent to Increase Rates, an increase in its monthly customer charge, and a request for a declining block rate design which would provide lower proportional rates for high usage, especially during the winter months. CoServ indicated that for Denton customers residential rates would increase 20.06 percent, commercial rates would increase 25.98 percent and industrial rates would increase 20.21 percent. The impact of the rate increase was reflected by the notice CoServ published in the newspaper as required by Ordinance No. 2002-073. According to that notice, published in the September 6, 2004 issue of the Denton Record- Chronicle, aggregate revenues in Denton would increase by $152,144, a 74.09 percent increase in revenues, exclusive of the gas commodity costs. Base rate revenues would increase by 72.96 percent for residential customers and by 143.96 percent for commercial customers. A residential customer using 6 Mcf would see a base rate increase of $10.18 per month while a commercial customer using 30 Mcf would see a base rate increase of $66.26 per month. The total impact of the rate increase on Denton customers could be more when the surcharges and additional monthly customer charges are included. Agenda Information Sheet January 18, 2004 Page 2 CoServ also had requested an 8.68 percent rate of return on its $24,372,960 rate base. The rate of return was not based on CoServ's capital structure as of March 31, 2004, but it was based on a capital structure utilizing local distribution companies (LDC) industry norms. Attached are the "Notice of Gas Rate increase Request" published by CoServ in the Denton Record-Chronicle and the "Narrative Accompanying Statement of Intent to Increase Rates" that more fully explains their reasons for their rate increase. On September 21, 2004 you passed a Resolution suspending the scheduled effective date of CoServ's rate increase - October 1, 2004 - for 90 days and for such additional time that the parties may agree upon. You also authorized the City to join a coalition of cities within CoServ's distribution system and to authorize a steering committee of those cities to h/re the law firm of Lloyd Gosselink Blevins Rochelle & Townsend, P.C. and rate consultants that the coalition steering committee decided to employ. Additionally, you authorized the employment of Diversified Utility Consultants, Inc. (DUCI) to represent the City in investigating this rate increase request. Both the consultants hired by the coalition of cities - C2 Consulting Services, Inc. and Denton's consultant, DUCI - investigated and made their reports to the City indicating that the entire amount of CoServ's rate request should be reduced and instead initially recommending amounts mound one-quarter of the system wide rate increase which was requested. Based upon the information reviewed by legal counsel and the consultant, CoServ has failed to meet its burden justifying its request for the entire requested amount. Specifically, the investigation determined that (a) CoServ's requested return on equity is excessive; (b) CoServ's restatement of the gross distribution plant accounts as "Plant in Service" or "Plant Held for Furore Use" should be adjusted to more closely track the actual use of the system; (c) CoServ did not submit a valid lead lag study to justify its request for Cash Working Capital; (d) CoServ failed to adequately support its requested increase in Affiliate Costs; and (e) CoServ failed to meet its burden to support recurring regulatory expenses, depreciation expense, and other expenses. In an effort to avoid costly litigation, the cities pursued settlement with CoServ. Based upon additional information supplied by CoServ, the legal counsel and consultant, working with the coalition of cities have reached a settlement for an increase in base rate revenues of $500,000, about 43 percent of the Company's request which the consultant's feel might be justified due to the additional rate information submitted by CoServ. The Company agreed to institute a schedule of miscellaneous service charges that mitigates some of the impact of the revenue increase that would otherwise be covered through residential and commercial customers. The Company also agreed to setting customer charges at less than requested in the Company's filing ($9 vs. $11 for residential customers and $15.50 vs. $25 for commercial customers). CoServ committed to minimize rate shock by phasing in any base rate increase exceeding 10 percent over an 18 month period and not to file any new action to increase rates until September 1, 2006. We were unable to settle the rate case expenses portion of the filing so this will be severed and, if you pass this Ordinance the Company will extend its effective date another 30 days so the City will retain jurisdiction over the rate case expense piece. The total impact of the rate increase including CoServ's rate case expense surcharges, and the increase in monthly customer charges and other rate increases is larger for Denton since Denton had the lowest rates in the system. This is more fully covered in the Legal Department's status reports of December 3, 2004, January 7 and January 14, 2005. Agenda Information Sheet January 18, 2004 Page 3 At your December 7, 2004 Council meeting, the public hearing was opened but continued to the Council meeting of January 4, 2004 to allow for a requested 30-day extension. At your January 4, 2005 Council meeting, you continued the public hearing until your January 18, 2005 Council meeting to provide time for the coalition of cities to work out the details of a proposed settlement with CoServ. Attached is an Ordinance that will accomplish the following objectives: Approve CoServ's request in part, and authorize an increase in base rate revenues equal to $500,000. In Denton, gas rates would still increase about 49 percent. This increase in base rates would be phased in over an 18-month period with the first ten percent of the increase effective on February 1, 2005, the second ten percent on November 1, 2005 and the last ten percent on August 1, 2006. All customer charges and service charges will be no more than the amounts approved for TXU Gas in their recent gas case before the Railroad Commission. Approves tariffs consistent with a system-wide increase of $500,000 in total annual base rate revenues. Denies CoServ's request for all other rate relief is denied. Provides a moratorium until September 1, 2006 on the filing of future rate increases. Severs the rate case expense aspect of the case with the cities retaining jurisdiction over this matter for an additional thirty days. OPTIONS: The City Council can approve the Ordinance authorizing the partial increase in rates for CoServ Gas, Ltd., which is supported by the coalition of cities. The City Council can pass the Ordinance either allowing a greater or lesser amount or denying the rate increase request entirely. The City Council can choose not to enact the Ordinance and CoServ's gas rate increase that would automatically go into effect on or after January 27, 2005. RECOMMENDATION: The staff recommends that the City Council choose Option 1 and pass the Ordinance denying CoServ's rate request and authorizing the smaller increase in rates recommended by the consultants and agreed to by CoServ. This rate increase would be over 57 percent less than the rate increase requested by CoServ with the average system wide rate increase for residential customers being two percent as opposed to a 19 percent average for residential. The average for commercial customers declined from an 82 percent increase to a 55 percent increase. Unfortunately, since Denton had the lowest rates in the system the impact of the increase will be much greater, declining from a base rate change of 72.96 percent to 48.3 percent for residential customers and from 143.96 percent to 109.1 percent for commercial customers. To reduce rate shock, the rate increase will be phased in over an 18-month period further reducing the impact on Denton customers. If the City chooses not to agree to any rate increase and to deny the rate increase, CoSerV would most likely appeal this to the Railroad Commission, which would mean additional time and consultant expense in prosecuting this Agenda Information Sheet January 18, 2004 Page 4 matter before the Commission. The cost of litigating this matter before the Railroad Commission could result in substantial additional rate case expenses, which can be passed on to Denton customers. Staff feels by authorizing the rate increase recommended by the consultants and agreed to by CoServ there is very little chance of an appeal to the Raikoad Commission by CoServ. FISCAL IMPACT: Gas customers utilizing CoServ will see an increase in their gas bills after February 1, 2005. However, the increase will be less than requested by CoServ and will be phased in over an 18-month period. Under Section 103.022 of the Gas Utility Regulatory Act, all reasonable costs of the rate case consultants are reimbursable to the City by CoServ and under the Ordinance, CoServ is required to pay the rate case expenses. CoServ has the right to pass rate case expenses on to customers in the form of a surcharge, but these expenses are much less than the decrease in the rates requested achieved by utilizing the consultants. Respectfully submitted: Herbert L. Prouty City Attorney Attachments: 1. "Notice of Gas Rate Increase Request" published by CoServ in the September 6, 2004 issue of the Denton Record-Chronicle.' 2. "Narrative Accompanying Statement of Intent to increase Rates" by CoServ. ~ of Denton.is' thai ~ 'S~fement~o~:~t~t' ~c~ge'.[: eea' filed ~i~' ~e Ci~ 6fDento~: ~:,~_.. :.~e':~g ~e!g{~'~(a.~e~:of.alI'Pr~osed'ch~ges:~'~ It'is ava~abb for':-':.t:'.:....;:'~-', '. ~hsp'~efiO~..~t-~e?~'~':,~i~' Mil and"at:~e 'offic~ bf.CoSe~ at 770 f 'Sou~ St~6fi~;, .... ?d~"~2:1.04'8~2. Pers0m'.~ questions or Who w~t ~omahon about ~s __ ~.~6~(~ ~e Ci~ secret~, ci~ of Denton, a~ 940:349-8200, or CoS. e~ :~td]"~t'i.-86d22~g~4;6.i'~.' '.~ affe6ted pc;son may file ~'-'~g :C~;;;;:'~'i:'' · .-protest coneeming.~ proposed .ch~ge ~ ~e.'rates M~ ~e CiW of Denton. CoServ Gas, Ltd. Narrative Accompanying Statement of Intent to Increase Rates Year Ended March 31, 2004 CoServ Gas, Ltd. Narrative TABLE OF CONTENTS Page No. introduction .................................................................................................................... 1 Revenue deficiency ........................................................................................................ 5 Rate base ............ ; ........................................................................................................... 6 Rate of remm ................................................................................................................. 9 14 Expenses ...................................................................................................................... Revenues ........................................... 2 .......................................................................... 20 Cost-of-service study ................................................................................................... 22 Rate design ................................................................................................................... 23 Revenue Deficiency Calculation ............................................................... : .................. 27 2 3 4 5 ? 9 10 11 12 13 t4 15 17 lg 19 2O 21 22 23 2~ 25 26 2? 2g 29 3O 31 CoServ Gas, Ltd. Narrative I1NTRODUCTION Cogerv Gas, Ltd. ("CoServ Gas" or the "Company") is proposing a rate increase using historical costs incurred by the Company updated for known and measurable changes. When CoServ Gas set its rates for the first time, there was no historical data to support the rate calculations. Estimates for revenues, expenses, and investment were used, and initial rates were set based upon those estimates. While it was necessary for the Company to make a massive investment in its system in£mstructure to meet its future growth requirements, only a handful of customers were initially serve& tn order to produce a reasonable set of rates for a company with a huge investment and few customers, it was necessary to set rates at a level sigrfificantly below what could have been justified. The original set of rates has remained in effect as CoServ Gas has not requested an increase since they were established. Many of these rates have been in place for four to five years. The Company is recommending a single, company-wide rate to replace the 18 different-sets of existing rates. This single set of rates will streamline the review of the Company's proPOsal and reduce the rate case expenses that are ultimately passed on to customers. In addition, to assist its customers with the cost of high winter heating bills and to mitigate the adverse impact of weather on the.Company's revenues, the Company is proposing a change from the current straight-line rate structure to a "declining block" design. A declining block design that lowers rates as consumption increases will result in lower winter heating bills compared to those that are experienced using flat rates. CoServ Oas's proposal will result in an average bill increase across the Company's service territories of about 7.3%. No one likes to see their utility bills increase; however, the Company believes that its calculation of the increases is very fair. CoServ Gas is eager to work with the cities that wish to review its proposal and develop rates that are fair to both the Company and its customers. COMPANY BACKGROUND' CoServ Gas is a new and fast-growing Texas natural gas distribution utility. It is dedicated to providing safe, dependable, and economical gas service to its customers in the Metroplex. 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17. 19 2O 21 22 23 24 25 26 27 28 29 3O ~31 CoServ Gas, Ltd. Narrative The Company's story begins in 1937 when Demon County Electric Cooperative ("Co-op") began operations. Its mission was to provide reliable, affordable electric power to rural homes and communities in North Texas. The Co-op helped fuel the tremendous expansion in the Metroplex, home to some of the nation' s fastest-growing communities. To continue to meet the needs of its service territory, the Co-op reinvented itself as CoServ Electric in 1998. CoServ's new mission was to become a single source provider of both electric and gas services. To accomplish this objective, it established several affiliates, including CoServ Gas, which would serve new residential and commercial subdivisions in the Metroplex. CeServ Electric would Continue to provide electric service to its members, but it would also provide CoServ Gas with support services such as meter reading and billing, allowing both companies to enjoy economies of scale. Tn 1998, CoServ Gas began a massive construction project to install the in_frastmctUre needed to accommodate the predicted growth in the area. Before installing its first meter on a new home, the Company spent millions of dollars for high-pressure steel pipelines, metering stations, and other equipment to provide service to thousands of customers; I2 February 1999, the Company cormected its first customers - two model homes in Flower Mound. Since then, the Company has emerged as the fastest-growing gas distribution utility i~ the State, with more than 28,000 customers. CoServ Gas has earned a reputation for safety, reliability, and unsurpassed customer service. THE COSERV FAMILY OF COMPANIES TODAY Today, the CoServ family of companies ("CoServ") is still in a tremendous growth mode. In order to accommodate ties growth with the least cost, CoServ is structured in a manner that provides for efficiency in staffing and resources. CoServ Gas benefits from the staffing and' resources of other CoServ entities. CoServ Electric provides necessary'services to CoServ Gas such as engineering, meter reading, executive oversight, accounting, treasury, mapping, information technology, humar~ 2 1 2 4, 5 6 7 g .9 lO 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 ...... :.. CoServ Gas, Ltd. Narrative resources and customer service. Llano Utility Services, Inc. ("Llano Utility Services") provides construction services related to the backbone and infrastructure of the gas system. CoServ Realty GP, LLC ("CoServ Realty") provides necessary office space to CoServ Gas. As CoServ Gas grows, required staffing and resources are added when necessary and appropriate. COSERV GAS MANAGEMENT When establishing CoServ Gas in 1998, CoServ lacked the in-house expertise to effectively and efficiently construct, grow and operate a gas utility. Therefore, it formed a strategic alliance wi~ TexEnergy Management, L.C. ("TexEnergy"). CoServ recognized the tremendous diversity of expertise and vision p~ovided by TexEnergy aud executed a long- term management agreement. Through this agreement, TexEnergy provides necessary management services related to the day-to-day operations'of the gas utility, as well as necessary construction planning and oversight related to the construction of the Company's gas system. ttOW COSERV GAS SETS ITS RATES Under Texas law, utility companies set rates to recover their reasonable and necessary expenses, plus a retu_m on investment. Rates are calculated using the company's revenues a~d expenses over a 12-month period and its invested capital at the end of the same 12~month period, adjusted for known and measurable changes. As previously discussed, when CoServ Gas set rates for the first time, there was no kistorical data for the rate calculations. Estimates for revenue, expenses, and investment were used and initial rates were set based upon those estimates. However, it required a massive investment in plant to serve a handful of customers. With no economies of scale, the initial rates based upon the Company's actual costs and invested capital would have been unreasonably high. In order tO produce a reasonable set of initial rates for a company with a huge investment and few customers, it was necessary to set rates at a level sigaificantly below what might have been justified. 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 3O :31 CoServ Gas, Ltd. Narrative Since initially setting rates, the Company has continued to invest in new utility infrastructure and its expenses have continued to increase. A recent review by outside consultants indicated that CoServ was overdue for a gas rate increase. If, however, new rates were m be designed based on the company's total invested capital, nnreasonable increases to existing customer rates would occur. The reason that unreasonable rates would have occurred is simple: CoServ Gas has made a massive investment in infrastructure designed to accommodate future growth and to last for decades. Creating an infrastructure that is sized to accommodate future load requirements is beneficial and cost effective for both curren! and future customers. In au effort to minimize the cost to its customers, CoServ has taken the greatest possible advantage of economies of scale and construction efficiencies. Until the expected customer growth materializes and CoServ's plant assets are more fully utilized, the Company must use these assets to serve a much smaller customer base. Therefore, the rates proposed in this case reflect the portion of the Company's invested capital that is currently serving its existing customers and eliminates the invested capital, along with related cost of service components that are substantially in excess of the level needed to service current customers. As a result, the Company is only asking current customers to provide a remm on approximately 70% of the total plant investment. This portion of the Company's current investment in plant represents the portion necessary to serve current customers. In addition, although the Company is foregoing current recovery of and a return on its investment to support future customers, the Company is requesting a recovery of a portion of the deferred costs related to its plant investment held for the benefit of future customers. The portion for which we are requesting recovery is the portion related to customers that now exist but did not exist at the time the plant investment was made, amortized over the remaining useful life of the related plant. The deferred costs are comprised of deferred return and deferred depreciation. In addition, the Company is proposing to increase the monthly customer charge to reflect the fixed cost of making service available to a customer. The Company is also proposing to 4 1 2 3 4 5 6 7 9 10 11 12 13 14 15 17 lg 19 20 2I 22 23 24 25 26 27 28 CoServ Gas, Ltd. Narrative switch from "straight-line rates" m "declining block rates", which are rates that drop as a customer rises more gas. Relative to a comparable straight-line rate, declining block rates will lower whiter heating bills and help level out customer gas bills throughout the year. MINIMIZING RATE CASE EXPENSES CoServ Gas's initial rates, which are'still in effect, vary from city to city, resulting in many different sets of rates Mthin our service areas. The Company is proposLug the consolidation of these different rates into a single, company-wide set of rates. Company-wide rates will minimize future 'increases in costs associated with the admirfistration.of rates - savings that will ultimately be passed on to customers. In addition, rate cases are expensive to prepare and process. The cities', towns' and Company's rate case expenses, whether at the local level or at the Railroad Commission, are passed on to customers in the form of a surcharge on their monthly billing. UnfortunatelY, there have been recent examples of surcharges that were as high as the actual rate increase - and occasionally higher. The Company's goal is to m~n/mize rate case expenses - fzrst by filing a consolidated proposal with all cities and towns and then by keeping the discussions at the local level. A Kaikoad Commission proceeding is like a major court case, with huge expenses for attorneys, consultants, and expert witnesses. CoServ Gas is hopeful that it Can work with the c~fies to come up with a mutually satisfactory solution at the local level. REVENUE DEFICIENCY We have calculated a revenue deficiency ,as of March 31, 2004 by applying the proposed rate of return to the Company's net invested capital ("rate base"), adding in our operating expenses and federal income taxes, and subtracting our revenues. A summary .of this calculation follows: 1 2 3 4 5 6 7 8 9 I0 tl 12 13 14 t5 .,~r_9.,.~'' : ' 1116 17 18 t9 20 21 22 23 24 25 26 27 CoServ Gas, Ltd. Narrative Rate base Rate of return Return on rate base Expenses, including federal income taxes Total revenue requirement Adjusted revenues Revenue deficiency $ 24,372,96O x 8.68% 2,115,7t2 5,04.8,353 7,164,065 5,998,540 $__1 165 525 The numbers presented above l~ave been adjustecl for the known and measurable changes discussed below. These adjustments were calculated as of the year ended March 31, 2004. In the following discussion, adjustments will be described, for each component presented above. 1. RATE BASE In general, the Company's rate base consists of assets acquired over a period of time to provide utility service to its customers. Through a return on this rate base, the Company is able to recover a reasonable profit on its investment and its costs of financing the assets. The Company has been conservative in calculating its rate base by eliminating investments not supporting current customers, and thereby including only approximately seventy perdent (70%) of our total plant investment to date. The mount of plant currently included in rate base was calculated by multiplying the Company's gross plant by a percentage representing the portion utilized by current customers. Generally, the portion utilized by current customers was calculated by dividing the number of current customers utilizing a specific portion of plant by the total number of customers anticipated to be served by this portion of plant. The Company's rate base, reduced by plant that will support future customers, is comprised of the following: 2 3 4 5 6 7 8 9 10 tl 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 CoServ Gas, Ltd. Narrative Plant in service Depreciation and amortization reserves Net Plant in Service Prepayments and materials and supplies inventory Cash working capital Customer deposits Contributions in aid of construction Deferred federal income taxes Total rate base 29,736,642 (1,79'1.,603') 27,945,039 153,853 421,183 (95,283) (5,212,534) 1,160,702 24,372:960 A. NET PLANT IN SERVICE The primary component of rate base is net plant in service. This includes utility property, plant and equipment, net of accumulated depreciation. Net plant in service was calculated by taking total gas utility, plant in service at gross cost, less accumulated depreciation, plus or minus the following adjustments: Completed construction not classW~ed- completed proj e.cts related to plant in service that had not yet been classified in the appropriate plant accounts were added to plant in service. 2. Propane plant - non-utility propane plant was removed from plant service as was the associated accumulated depreciation. 3. Management fees - accrued but unpaid management fees were removed from plant in service. 4. Plant held for the benefit of future customers ' the portion of the Company's in,~estment in plant that will benefit future customers. 1 2 3 4 5 6 7 g 9 10 11 t2 13 14- 15 16 1'7 lg 19 20 2t 22 23 24 25 26 27 28 29 30 CoServ Gas, Ltd. Narrative AND MATERIALS AND SUPPLIES B. PREPAYMENTS INVENTORY Prepayments were included in rate base at an amount equal to the average month-end balance experienced by the Company over the fln2rteen months from March 2003 through March 2004. Materials and supplies inventory balance at March 31, 2004 was included in rate base. C. CASH WORKING CAPITAL Cash working capital requirements arise from the delay between the receipt of revenues and when expenses are paid.. An allowance for cash working capital requirements was calculated as 12.5 percent (45 days) of the sum of operating and maintenance and administrative and general expenses and included in rate base. This method, described in the Texas Railroad Commission's Natural Gas Rate Review Handbook (page t7), is consistent with traditional utility ratemakiag practices. D. CUSTOMER DEPOSITS The'balance in the customer deposits account as of March 3 !, 2004 was deducted from rate base to allow for the cost free nature of these funds. E. CONTRIBUTIONS IN AID OF CONSTRUCTION The Company receives contributions of cash toward the construction of gas utility plant from developers and builders. The balance in the contributions in aid of construction account ("CIAC") at March 31, 2004, after being adjusted to remove the portion related to future customers, was deducted from rate base to allow for the cost free nature of these funds. F. DEFERRED FEDERAL INCOME TAXES Income tax effects arising from timing differences between income tax and book accounting methods are treated as an adjustment to a ufility's rate base for regulatory purposes. This adjustment is comprised of the following: 2 3 4 5 6 7 8 9 10 11 12 I3 14 17 t8 19 20 21 22 23 24 25 26 27 28 29 ~ 30 CoServ Gas, Ltd. Narrative To reflect the tax benefits of accelerated versus straight-tine depreciation expense, deferred income taxes related to the CoServ Gas system were calculated by determining the timing differences between accumulated depreciation as of March 31, 2004 under the accelerated methods available for tax purposes and the straight-line depreciation method used for ratemaking purposes. Timing differences relating to plant investments benefiting f~ture customers were removed. The remaining timing differences were then multiplied by the corporate federal income tax rate to produce. deferred income taxes related to depreciation. This amount is deducted from rate base. A second deferred income mx amount relates to the fim~ng differences associated with CIAC. CIAC 'is taxed as ordinary income when received, but is used to reduce the plant investment included'on the Company's books rather tlmn being included in the Company's revenues. Therefore, the difference between the mount of CIAC included in rate base, less associated amortization through March 31, 2004 was also mUltiplied by the corporate federal income tax rate to calculate deferred income taxes related to CIAC. Th/s amount is added to rate base. 2. RATE OF RETURN CoServ Gas is requesting a rate of return on invested capital of 8.68 percent. This rate of return is based on the capital structure ratios, embedded costs of debt and preferred stock, and cost of equity for a group of large, publicly traded natural gas local distribution companies ¢'LDCs"). By basing CoServ's rate of return on the cost of capital of other LDCs, CoServ's rates reflect reasonable capital costs associated with providing natural gas service, and is consistent with the standards specified in the U.S; Supreme Court cases of Bluefield Water Works (1923) and Hope Natural Gas (1944) that require the rate of return to be sufficient to: 1) fairly compensate 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 30 31 CoServ Gas, Ltd. Narrative capital presently invested in the utility, 2) enable the mility to offer a return adequate to attract new capkat on reasonable 'terms, and 3) maintain the utitity's financial integrity. A. CAPITAL STRUCTURE Capital structure reflects the mix of capkat -- debt, preferred stock, and common equity -- used to finance utility assets. The proportions of a utility's total capitalization attributable to each source of capital are typically used to weight the costs of debt, preferred stock, and common equity in calculating an overall rate of return. The capital structure recorded on the CoServ Gas books reflects that it is organized as a limited parmershJp and is in its growth phase of operations. Accordingly, the CoServ Gas capital structure as of March 31, 2004 does not serve as a representative basis for developing a fair rate of return on invested capital. Therefore, a fair rate of remm for CoServ Gas was developed using a capital structure based on LDC industry norms. An industry capital structure comports with the principle that rates should reflect the reasonable costs to provide service, and reflect investors' perceptions of the business risks faced by LDCs and the mix of capital best suited to accommodating these risks. Indeed, the Railroad Commission of Texas has routinely used industry capital structures to determine utilities' rates of return, with their use being supported by the Railroad Commission's Natural Gas Rate Review Handbook (page 22). A review of the capital structure data for the ten LDCs in The Value Line Investment Survey's ("Value Line") iilamral Gas (Distribution) industry that have identifiable utility assets equal to at least 80 percent of total assets, pay cash dividends, and who are involved in a merger or acquisition, reveals that the capital structure ratios on average and for the individual LDCs were fairly consistent from year to year over the 1999~2003 period. Accordingly, a capkal structure for CoServ Gas equal to the average capital structure ratios of the LDC industry group at fiscal year-end 2003 of 47.9 percent long-term debt,. I0 1 2 3 4 5 6 7 8 9 10 11 12 13 I4 15 t6 17 18 19 20 21 22 23 24 25 26 27 28 29 3O CoServ Gas, Ltd. Narrative 1.5 percent preferred stock, and 50.6 percent common equity was used for present purposes. B. COST OF DEBT AND PREFERRED STOCK Based upon a review of the data related to the embedded costs of long4erm debt at the most recent fiscal year-end for each of the ten LDCs identified earlier, a 6.33 percent average cost of debt for the group was assigned to the debt component of the capital structure. The average embedded cost of preferred stock is 5.50 percent at the most recent fiscal year-end for the five fn'ms in the LDC group having preferred stock outstanding; therefore, 5.50 percent was assigned to the preferred stock component of the capital structure. It is important to note that the costs of both debt and preferred stock are slightly understated for two reasons. Fkst, for issues that are convertible into common stock, no consideration was given to the cost associated with the convertibility feature.. Second, not all issuance expenses were considered, even though they are necessary costs associated with raising debt and preferred .stock capital and are properly included in the calculation of the ,cost of these sources of capital. C. COST O1' EQUITY Unlike debt and preferred stock, common equity has no contractual cost, but common stockholders still require a return on thek investment commensurate with that available from alternatives having comparable risks. Because the rate of return investors requke is not directly,observable, this "cost of equity" must be estimated by analyzing information about current capital markets conditions and employing various quantitative methods that focus on investors' required rates of return. Two general approaches were used to estimate the cost of equity for the group of LDCs -- the discounted cash flow ("DCF") method and the risk premium method -- both of which are widely 1I 1 2 3 4 5 6 ? 9 10 11 12 13 14 t5 16 1'7 19 2{) 21 22 23 24 25 26 27 28 29 30 3t CoServ Gas, Ltd. Narrative used to arrive at the rate of remm investors require from an inYestment in the common stock of public utilities. The constant growth DCF model was used to estimate the cost of equity by summing the return investors expect from: 1) dividend yield, and 2) long- term growth. Dividing the dividends expected over the coming year for each of the ten LDCs by their respective recent stock prices produced an average dividend yield of 4.4 percent. Investors' long-term growth expectations were estLmated using both historical and projected data. There was considerable variability in the alternative growth rates for the individual LDCs in the industry group,, ranging from negative values to ~n excess of 17 percent. Average historical growth rates for the group of ten LDCs ranged from 1.9 percent (10-year dividend growth) to 5.6 percent (10-year earnings growth), with projected growth rates ranging from 2.0 percent (growth in dividends) to 5.9 percent (Value Line's projeet~d earnings growth), Eliminating growth rates that produced implausible cost of equity estimates and narrowing tlxe remaLrdng range taking into acco'ant other indicators of inYestors' growth expectations resulted in a growth rate range of 4.6 to 5.6 percent. CombSn~ng this growth rate range with an average dividend yield of 4.4 percent produced a DCF cost of equity estimate for the LDC group of betWeen 9.0 and I0.0 percent The cost of equity was also estimated by determining the additional return investors require to forego the relative safety of bonds and bear the greater risks associated with common stock, and then adding this equity risk premium to the current yield on bonds. These risk premium analyses relied on leading studies of equity risk premiums for utilities that employed expectational cost of equity estimates, surveys, and realized rates of return to measure equity risk premiums, and encompassed a variety of time periods and sample groups of utilities. After making adjustments to reflect present capital market conditions and risk differences, the nine applications of the risk premium method 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ' 16 17 18 19 2O 21 22 23 24 25 26 27 28 CoServ' Gas, Ltd. Narrative indicated a cost of equity for the group of LDCs ranging from 9.60 to 14.49 percent. After implausible values were discarded, the remaining range indicated a risk premium range of between 10.74 and 11.88 percent The above analyses implied that the cost of equity for the LDC industry group is in the range of approximately 10.0 to 11.0 percent. This range extends from the top of the 9.0 to 10.0 percent cost of equity range indicated by the DCF analyses through the bottom portion of the 10.74 to 11.88 percent cost of equity range indicated by the' risk premium analyses. Three other factors affecting the cost of equity are: !) flotation costs incurred in connection w{th sales of stock, 2) the declining block rate structure proposed by CoServ Gas, and 3) CoServ Gas' small size and closely held ownership. While flotation costs and the declining block rate structure tend to offset each other, it is important to recognize that the 10.0 to 11.0 percent industry cost of equity range is substantially below the cost of equity for CoServ Gas. The reason for this is that, the rate of return investors require from an illiquid investment in a small, start-up operation is considerably greater than the cost of equity for the LDC industry group, which consists of large, well-established fLrms whose stock is publicly traded. TherefOre, the 11 percent seledted for present purposes from the top ~)f the LDC industry range is appropriate in light of the comparative greater risk faced by CoServ Gas. D. OVERALL RATE OF RETURN Combining the LDC industry capital stracmre ratios of 50.6 percent long-term debt, 1.5 percent preferred stock, and 47.9 percent common equity with a cost of debt of 6.33 percent, a cost of preferred stock of 5.50 percent, and an 11.00 percent rate of remm on common equity produced CoServ's requested overall rate of return of 8.68 percent. 13 1 2 3 4 5 6 7 9 10 1I 12 I3 14 15 16 17 . 19 20 21 22 23 24 25 26 27 28 CoServ Gas, Ltd. Narrative 3. EXPENSES Expenses are the final component of the Company's revenue requirement. Expenses include operating and maintenance expenses, administrative and general expenses, depreciation expense, taxes other than income taxes, and federal income tax expense. The Company's books and records are maintained in accordance with the FERC Uniform System of Accounts. The Company expands upon these accounts with the use of sub-accounts. Since the Company maintains its books and records in accordance with the CommissiOn's rules, the amounts included on the Company's books and records are presumed to be reasonable and necessary. The following items were adjusted to reflect known and measurable changes: A. PAYROLL AND RELATED EXPENSES Payroll was adjusted to reflect current annualized payroll costs. Each employee's hourly pay rate was multiplied by 2,080 hours, which is the average number of hours available for work each year (52 weeks multiplied by 40 hours per week). This resulted in the annualized adjusted gross wages, excluding overtime. To calculate annualized over&ne, an effective overtime percentage for the year ended March 31, 2004 was calculated and applied to the annualized payroll for hourly employees only. Lastly, total annualized payroll, including overtime, was distributed between expense and capital accounts 'cased upon an adjusted distribution of payroll and overtime dollars during the year ended March 31, 2004. Adjustments were made to the test year distribution of expenses to reflect reclassification to capital investment of expenses for an employee. The difference between the annualized payroll and overtime expense versus the actual payroll and overtime expensed booked during the year ended March 31, 2004 is the adjustment included in the cost of service. 14 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 3O 31 CoServ Gas, Ltd. Narrative B. PAYROLL TAXES CoServ Oas, iike most employers, is required by Federal and State laws to pay certain payroll taxes for its employees. Applicable Payroll Taxes include Social Security, Medicare, federal unemployment and state unemployment taxes (FUTA and SUTA). The actual rate and wage limits for each of these taxes per the Internal Revenue Service for the tax year 2003 was applied to the annualized payroll and overtime dollars to determine the annualized payroll tax dollars. For calendar year 2003, the Social Security rate was 6.2%, on the first $87,000 of wages paid to an employee during a calendar year. The Medicare rate was 1.45% on all wages, with no wage limit. A Company's FUTA and SUTA rates are individually determined. CoServ Gas' FUTA rate has been set at 0.8% on the first $7,000 of an employee's annual wages and SUTA is 2.7% on the first $9,000. Because the distribution of payroll tax dollars should be the same as the distribution of payroll wages, the adjusted year-ended March 31, 2004 distribution of payroll and overtime dollars discussed above was used to distribute the nnnualized payroll mx dollars. Actual year-ended March 31, 2004 payroll tax expense was then deducted from the annualized payroll tax expense to determine the .payroll tax expense adjustment. C. BENEFITS The Company pays for all of, or a portion of, certain benefits to its employees. These benefits include medical, Life insurance, Accidental Death & Dismemberment ("AD&D"), Long-Term Disability ("LTD") and Pension. Annualized Life insurance, AD&D, LTD and Pension expenses were calculated by applying a rate per-payroll-dollar to the annualized gross payroll dollars. Annualized medical costs were computed using the current employer portion of medical premiums for each employee. Total adjusted benefits costs were multipl{ed by the distribution of payroll and overtime dollars discussed previously. The adjustment to cost 'of service was calculated by taking the 15 t 2 3 4 5 6 7 8 9 10 11 12 t3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 CoServ Gas, Ltd. Narrative difference between the annualized benefit expense and the year ended March 31, 2004 benefit expense. D. LOBBYING, ADVERTISING AND CHARITABLE CONTRIBUTION EXPENSES The Company incurred $470 in direct expenses related to lobbying, and no direct expenses related to advertising or charitable contributions on its books for the year ended March 31, 2004. The $470 related to lobbying were removed from expense and a portion of the TexEnergy Management fees related to lobbying activities were removed from annualized Tex_Energy Management fees in the adjustment to affiliate costs. E. REGULATORY, RATE CA.SE, AND OUTSIDE SERVICES EXPENSES . An adjustment was made to normalize regulatory commission expenses based on the two year average of actual costs incurred. In addition, an adjustment was made to reclassify various expenses to outside service expense and remove them from the current balance of deferred rate case costs. Rate case expenses 'associated with the increase in rates being requested in this filing have not been inctuded in the proposed revenue requirement nor [n the proposed base rates. The Company is proposing to recover the reasonable costs incurred, once they are known and measurable at the conclusion of this case, from customers using a separate surcharge provision. F. INSURANCE EXPENSE The Company's insurance premiums are generally set at the beginning of a calendar year, based on certain indicators as of the end of the prior calendar year. So, for the year ended March 31, 2004, the Company's books reflect insurance premiums from both the 2003 and 2004 calendar years, which were based upon certain indicators during the 2002 and 2003 calendar years. To determine the armuaSzed insurance expense using the most recent t6 1 2 3 4 5 6 7 8 9 10 11 t2 13 14 15 t6 17 18 19 20 21 22 23 24 25 26 27 28 CoServ Gas, Ltd. Narrative information, each insurance policy was reviewed to determine if the coverage was still applicable to the Company and if the policy's major indicators had changed. The annualized insurance expenses were then allocated to the appropriate FERC accounts, based upon the applicable indicator (i.e. payroll distribution for Workers' Compensation policy). The resulting difference between the annualized insurance expense and the actual insurance' expense booked during the year ended March 31, 2004 was an adjustment to cost of service. G. BILL MATRIX EXPENSES CoServ Gas removed from cost of service ali expenses related to services performed by an unaffiliated entity, Bill Matrix. Bill Matrix provides bill payment services via the Intemet or telephone. This adjustment was necessary because these expenses are not ongoing. H. AFFILIATE COSTS As pre~4ously discussed, CoServ Gas incurs reasonable and necessary costs associated with services provided by CoServ Electric, CoServ Realty, Llano Utility Services and TexEnergy. These costs were annualized using agreed upon monthly fees or actual costs incurred during the year ended March 31, 2004, as appropriate. The Company's current expense ratios were applied to these annualized costs to determine the total annualized expense. Adjustments were calculated as the difference between the armualized expense and the actual expense booked during the year ended March 31, 2004. tn addition, the Company has tested each type of cost incurred from an affiliate for reasonableness and has verified that the Company is not incurring costs in excess of those charged to other affiliates or non-affiliates. 17 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 3O 31 CoServ Gas, Ltd. Narrative I. UNCOLLECTIBLE EXPENSE Two adjustments were made to cost of service for uncollectible expense. First, an effective rate was calculated by dividing the 2003 bad debts by the related revenues for that same annual period. This percentage was then applied to annualized revenues for the test year ended March 31, 2004 to determine fl~e annualized uncollectible expense. An adjustment was calculated by taking the difference between the annualized uncollectible expense and the actual uncollectible expense for the year ended March 31, 2004. Second, additional uncollectible expense was calculated on the overall revenue deficiency, using the same ratio. J. DEPRECIATION AND AMORTIZATION EXPENSE Depreciation allows the Company to recover its cost of assets by distributing the assets' cost, less any salvage value, over their useful lives in a systematic and rational manner. The Company calculated annualized depreciation on its distribution'plant included in rate base by applying the applicable depreciation rates by FERC account. Depreciation rates were determined in a study conducted by Engineering and Compliance Consultants, an engineering consulting company based in Austin, Texas. The consultants reviewed each plant account and compared the service life and net salvage value to the Depreciation Practices for Small Gas Distribution Companies, dated July 25, 1984, and Published by FERC. This information, combined with their experience and knowledge in the natural gas industry, was used to develop the service life and net salvage values used in this rate case. The difference between the annualized depreciation amount and the amount booked during the year ended March 31, 2004 is the depreciation adjustment requested in cost of service. A depreciation adjustment was also calculated relating 1o the Company's general plant, which includes automobiles, computers and tools. For general plant, the Company tracks each individual item of property, plant and 18 , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 CoServ Gas, Ltd. Narrative equipment, including original cost, date of purchase or acquisition, useful life and salvage value. Each item is depreciated using straight-line rates over the item's useful life. Annualized depreciation for general plant was calculated on the existing plant, property and equipment at the year ended March 3 l, 2004, using the existing useful lives. This annualized depreciation was then compared to the actual depreciation expense for general plant on the Company's books for the year ended March 31, 2004, to determine the adjustment included in cost of service. Lastly, as discussed previously, amortization of a portion of the deferred costs related to the Company's plant investment held for the benefit ot5 future customers is included. The portion that has been included is the portion related to customers that now exist but did not exist at the time the plant /nYestment was made. Additionally, the revenue requirement impact of deferred taxes associated with the debt component of the de[erred return has been subtracted from the requested amortization expense. K. AD VALOREM TAXES Tangible property in place as of January 1st of each calendar year is subject to Ad Valorem expenses (i.e. property taxes). The Central Appraisal District ~n each County where the Company owns property is responsible for assessing or appraising the value of the property in its district. These appraised values are applied to the property tax rates in the individual counties, to determine the Company's Ad Valorem tax expense for the calendar year. The Company's Ad Valorem taxes for the year ended March 31, 2004 have been adjusted to reflect a full year's taxes for ali property in rate base at the end of the year using the effective tax rate. 19 1 2 3 4 5 6 7 8 9 10 ti 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3O 31 CoServ Gas, Ltd. Narrative L. FEDERAL INCOME TAXES A federal income tax allowance was included in the Company's revenue requirement, which is consistent with the treatment prescribed by the Texas Supreme Court in Suburban Utility Corporation v. Public Utility- Commission of Texas (1983). To calculate the income taxes, CoServ's requested return on investment was reduced by interest expense, calculated as the product of rate base and the weighted cost of debt, to arrive at after-tax income. Federal income tax expense was then calculated based on the statutory marginal corporate income tax rate of 35 percent by applying a factor of 1.5385 (i.e., 1 / (1 -tax rate)-i) to the after-tax income amount. 4. REVENUES In order to determk~e the Company's overall revenue deficiency, annualized revenues at current rates were subtracted from the Company's total revenue requirement. To determine annualized revenues at current rates, adjustments were made for year-end customer armualization and weather normalization. The Company started with its per-book '~unadjusted" number of customers, volumes and revenues as of the year ended March 31, 2004. The following adjustments to revenues were calculated to reflect the number of customers existing at year-end and to weather normalize related volumes. By reflecting the impact of these adjustments, the customers and volumes are reflected at a level that more accurately depicts the anticipated costs and revenues that will occur during the period the proposed rates will be in effect. Annualizing revenues also allows for the proper matching of customers, volumes, and revenues 'with annualized expenses for the period ended March 31, 2004. A. GROWTH ADJUSTMENT The customer growth adjustment can be broken into the customer charge growth adjustment and the volumetric adjustment, excluding weather. For the volumetric adjustment, actual customers and volumes by month were used ~o calculate an average Mcr-per-customer for each town and class. To calculate annualized growth-adjusted revenues, the average Mcr-per-customer was 2O 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 CoServ Gas, Ltd. Narrative multiplied by each month's actual volumes and the actual year~end number of customers. The growth adjustment was then calculated' by subtracting the actual revenues during the year ended March 31, 2004 from the total annualized revenues. For the customer charge growth adjustment, the actual number of customers at the year ended March 31, 2004 for each town and class was multiplied by the annual customer charge to determine the armualized customer charge revenue. Actual customer charge revenue for the year ended March 31, 2004 was subtracted from the armualized CUstomer charge revenue to calculate the amount of the adjustment. B. WEATI-IER NORMALIZATION ADJUSTMENT A second adjustment was made to revenues to take into consideration the fact that {he Company's customers' consumption is highly influenced by temperature conditions. CoIder than normal temperatures in a year result in higher gas sales and revenues, while warmer than normal temperatures in a year result in lower gas sales and revenues. Because the volumes consumed during the year ended March 31, 2004 are used to set f-amre rates, the volumes can be either over- or under-stated depending on whether the temperatures during the year were either colder or warmer than normal. Therefore, it is necessary to adjust revenues, so there is no over- or under-statement. First, a base-load volume level was calculated for each class of customers in each town. An average volume level was calculated, using June, July, August and September volumes, which are typically the lowest usage months. Since usage during these months is generally for non-heating type uses, this average usage is assumed to be the base-toad. This base-load was then deducted from each individual month's usage, in order to calculate each month's heat-load volumes. These volumes were then multiplied by the heating degree-day 2i 1 2 3 ? 9 10 l! ]2 13 15 16 17 t9 2O 21 22 23 2~ 25 26 2? 2g 29 3O 31 CoServ Gas, Ltd. Narrative factor, which is the monthly total heating degree-days divided by the 30-year total heating degree-daysL This results in weather adjusted heat4oad volumes by month. Then, the base-load volumes by month were added back to the adjusted heat load volumes, in order to determine the total adjusted volumes. To get the total weather adjusted revenues, the adjusted volumes are multiplied by the year-end number of customers and by the volumetric rate. The volumetric growth adjustment was then subtracted from this Volumetric weather adjustment to determine the final weather adjustment. 5. COST-OF-SERVICE STUDY As the basis for developing its proposed rates, CoServ Gas conducted a cost-of- service ("COS") study, which is an engineering, accounting, and economic analysis that allocates the total cost of providing service among a utility's different customer classes. Many of a utilky's operating expenses and much of its investment are incurred to serve all customers to a greater or lesser extent. Because these joint and common costs cannot be directly related to specific customers, they must be apportioned among customer classes. This apportionment is accomplished through a COS study in which operating and capital costs are allocated using factors developed from various operating data intended to reflect cost causation. The sum of the costs allocated to each customer anclTor customer class in the COS study represents class revenue requirements, or that portion of the utility's total costs for which a particular customer class is responsible. The first step in conducting the COS study was to separate the Company's adjusted rate base and revenue requirements by FERC account, which identifies the function and content of each investment and/or cost. The next step was to develop various allocation factors to reflect the relative responsibility of each of the Company's customer classes for different investment and operating costs based on cost-causal relationships. These allocation factors were derived from usage, operating, and other data, and are intended to capture the relative contribution or responsibility of each customer class to the system as a whole. 22 1 2 3 5 6 ? 9 tO 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 2? 2~ 29 3O 31 CoServ Gas, Ltd. Narrative Each FERC account was then examined to judge its nature and cost-causal characteristics, with the mount in each account being allocated between the Company's customer classes using a corresponding allocation factor. For example, · CoServ's investment in meters was allocated based on ,a study of the number of customers in each class and the relative costs of the meters required by Residential versus Commercial customers, while costs related to customer records and billing were allocated based simply on the number of customers in each class. Concurrent with dais' cost allocation, the mounts in each account were classified as being either primarily customer-related (i.e., varying with the number of customers) or capacity- related (i.e., varying with the need to meet peak demand) and commodity-related (i.e., varying with the amount of gas delivered). The amounts allocated to each customer class were then summed to calculate cIass revenue requirements, or the total cost of service for each customer class. 6. RATE DESIGN Having determir~ed the cost of providing service to each of these major customer classes, the next step was to design rates, or the prices to be included in the tariffs, that will produce revenues equal to the cost of providing service to each class. CoServ Gas's current rates consist of a monthly customer charge plus a uniform rate applied to each'hundred cubic feet (Ccf) consumed during a month. CoServ proposes to increase the monthly customer charge and adopt a declirdng block rate structure where the price for additional amounts consumed during a month decreases. A. CUSTOMER CHARGE .The customer charge is a rate billed 1o customers each month irrespective of gas consumption. Sometimes referred to as a facilities charge or availability charge, it is intended to reflect that plant inYestment and operating costs are incurred simply to make service available to a customer. In mm, the customer charge recovers all or a portion of the capital and operating costs associated with having a customer connected to the utility system. At a minimum, these customer-related costs consist of the capital and operating costs associated 23 1 2 3 4 5 6 7 8 9 I0 11 12 14 15 16 ~17 18 19 2O 21 22 23 24 25 26 27 28 29 CoServ Gas, Ltd. Narrative with meters, services, and house regulators; customer accounts, customers service m~d information; sales expenses; and corresponding general plant and administrative and general expenses. To minimize rate case expenses, CoServ did not include costs associated with mains in this study, resulting in lower customer-related costs. Dividing these minimmn customer-related costs indicated by the COS study for each customer class by the number of customers in that class and twelve months produces the following monthly per customer costs: Description Customer-Related Costs Number of Customers Number of Months Billings Units Monthly Customer Cost Residenti~ CommerciM $3,249,049 $198,786 25,628 431 12 12 307,536 5,172 $11 $38 CoServ is proposing that the customer charges for the Residential and Commercial classes be increased only to $11.00 and $25.00 per month, respectively. B. COMMODITY CHARGES As discussed earlier, CoServ proposes to move from a uniform rate per Ccfto a traditional three-step declining block rate structure. Under a declining block structure, more capacity-/commodity-related costs are recovered in the initial usage blocks than in the tail blocks. Besides resulting in ra;es that tend to better match cost incurrence, declining block rates also recognize that some cost elements decrease on a unit basis as usage increases and that load factor may increase with higher use. Additionally, customers' bills are moderated during the winter because t~igher usage is billed at lower marginal rates: 24 1 2 4 5 6 7 9 10 11 12 13 14 15 16 17 19 2O 21 22 23 24 25 26 27 28 29 30 CoServ Gas, Ltd. Narrative Declining block rates were devdoped by first identifying proper block intervals or block breaks. This was accomplished by analyzing the monthly usage patterns of each customer class to determine base load, intermediate load, and heating load. The first block was established to reflect year-round base load, with the third block capturing winter peak heating load and the middle block falling betWeen the Wvo seasonal extremes. The block intervals that were selected for each customer class are shown below (in Cc£s): Description Blocks: First Second Third Residential Commercial 0 to 20 0 to 300 21 to 70 30t to 500 >70 >500 The next step was to analyze bill frequency distribution data for each customer class for each month to determir~e the number of billing units (i.e., Cci) that fell into the blocks identified above. Then, after accounting for the revenues that would be produced through CoServ's proposed customer charges, unit rates per Cci were calculated that, when multiplied times the billing units in each block, resulted in total class revenue requirements. For both customer classes, the unit rates for the second and third blocks were set equal to $0.05 per Cci lower than the previous block. The following table · displays the unit rates per Cci for each class and block (excluding gas costs) Description Residential Commercial Blocks: . First $0.2022 $0.2519 Second $0.1522 $0.2019 Third $0.1022 $0.1519 25 1 2 3 4 5 6 7 8 9 10 11 t2 13 i4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 3I CoServ Gas, Ltd. Narrative C. MISCELLANEOUS SERVICE CItARGES CoServ proposes only minor modifications to its existing Schedule of Miscellaneous Service Charges. Most of these fees are predicated on the normal time required to perform the service and an average hourly employee cost rate. To account for wage and benefit increases since the Schedule of Miscellaneous Service Charges was first implemented, CoServ proposes to increase the .hourly rate underlying most of these charges from $35 to $42, which is supported by a current labor cost study. Except for meter tampering charges, sendce restoration following non-payment, and duplicate trip charges, which were set at levels intended to encourage operational efficiency, all other miscellaneous service charges will be billed to customers at their actual cost to the Company. · D. SURCHARGES CoServ is proposing two surcharge provisions. The first is for collection of Pipeline Safety Fees assessed against CoServ under Section 121.211 of the Texas Utilities Code .and the Commission's Rule at 16 TAC § 8.201. The Commission's rule sets out the mount of the surcharge and the manner in which it is to be collected. The second surcharge is to recover CoServ's reasonable rate case expenses for this case, plus costs reimbursed to municipalities under the municipal reimbursement provisions of the Texas Utilities Code. CoSeTM is proposing to recover such costs and expenses over 36 months, together with interest on the declining balance. E. PURCHASED GAS FACTOR CoServ is proposing to continue use of the same Purchase Gas Factor provision that previously has been approved by all cities and the Railroad Commission. The only change is to delete the "Special Transition Provision" that was solely for the purpose of the transition from the previous gas cost 26 1 2 3 4 5 6 7 9 10 11 12 t3 14 15 16 17 lg 19 2O 21 22 23 24 25 26 27 2g CoServ Gas, Ltd. Narrative recovery provision to the currem provision. The caption of the provision has also been revised to refer to "Schedule 2" instead of"TariffNo. 1." Several years ago, CoServ was able to begin buying its gas supplies from companies other that TXU Gas Company, the company that had been its sole supplier. At present, the gas purchased by CoServ is transported by TXU under a faro transportation contract. Although CoServ must purchase gas at market prices that 'it does not control, CoServ has been able to achieve substantial gas cost savings over the prices it would have paid had it continued to purchase its gas supplies from TXU. REVENUE DEFICIENCY CALCULATION Description ' Plant in Service, Net Contributions in Aid of Construction Other Rate Base Rate of Return Return on Rate Base Depreciation and Amortization Expense Operating and Maintenance Expense Taxes Other Than Income Taxes Federal Income Taxes Revenue Requirement Test Year Adjusted Revenue Revenue Deficiency Current 27,945,039 (5,212,534) 1,640,455 24,372,960 2.94% 716,522 Adjusted Test Year 27,945,039 (5,212,534) 1,640,455 24,372,960 8.68% 2,115,7t2 755,759 3,372,909 t78,381 741 3,,~Q~04 7,164,065 5,998,540 1,165,525 27 S:\Our Documents\Ordinances\05\CoServ Settlement Ord.tloc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, FINDING THAT THE CURRENT RATES OF COSERV GAS LTD. ARE UNREASONABLE; APPROVING COSERV GAS LTD.'S REVISED AND UNCONTESTED TARIFFS; APPROVING A RATE PHASE-IN; AUTHORIZING CONTINUATION OF DEFERRAL OF CARRYING CHARGES ON PLANT HELD FOR FUTURE USE; RECOGNIZING COSERV'S RIGHT TO SURCHARGE FOR FACILITY RELOCATION REQIJIRED BY THE CITY; SETTING THE EFFECTIVE DATE OF NEW TARIFFS AS FEBRUARY I, 2005; FINDING THE CITIES' RATE CASE EXPENSES REASONABLE; SEVERING THE DETERMINATION OF THE REASONABLENESS OF COSERV GAS LTD.'S RATE CASE EXPENSE FROM APPROVAL OF THE REVISED TARIFFS; RETAINING JURISDICTION OVER THE DETERMINATION OF THE REASONABLENESS OF COSERV GAS LTD.'S RATE CASE EXPENSE ISSUE UNTIL MARCH 1, 2005; ADOPTING A BASE RATE CASE MORATORIUM; FINDING THAT ANY RELIEF REQUESTED BY COSERV GAS LTD. NOT SPECIFICALLY GRANTED HEREIN IS DENIED; ADOPTING A MOST FAVORED NATIONS PROVISION; FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS ORDINANCE TO COSERV GAS LTD; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on or about August 25, 2004, CoServ Gas Ltd. ("CoServ" or "Company"), filed with the City of Denton a Statement of Intent to change gas rates in all municipalities within the CoServ System effective October 1, 2004; and WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's Statement of Intent as it pertains to the distribution facihties located within the City, pursuant to Texas Utilities Code §§ 102.001(b) and 103.001; and WHEREAS, pursuant to Section 104.107 of the Texas Utilities Code, on September 21, 2004, the City Council passed Resolution No. 2004-050, suspending the effective date of CoServ's rate request until December 28, 2004 and CoServ extended the effective date of the rate increase by an additional thirty days for the City to investigate the Company's filing and to consider settlement of the request or until January 27, 2005; and WHEREAS, failure to take action regarding CoServ's rate request by January 27, 2005, will cause CoServ's request to become effective for all CoServ customers within the municipal limits; and WHEREAS, the City Council authorized Denton to cooperate with the Coalition of Cities Served by CoServ ("Cities"), a group of other cities similarly affected by CoServ's rate request to jointly hire counsel and an independent consultant to review CoServ's application and further authorized the retention of Diversified Utility Consultants, Inc. to assist Denton in its review of CoServ's proposed rate application; and S:\Our Documents~Ordiuancesk05\CoServ Settlemen: Ord,doc WHEREAS, after consideration of the Company's filing and the report issued by Cities' expert, the City concludes that CoServ's current rates are unreasonable and should be changed; and WHEREAS, the Company and Cities have reached an agreement as to CoServ's filed request to increase rates conditioned upon final approval by Cities; and WHEREAS, the Company's requested increase in system-wide annual revenues of $1,165,525 is excessive, and the Company has agreed to an increase in system-wide revenue of $500,000, of which approximately $214,000 is associated with changes to the miscellaneous service charges; and WHEREAS, a condition to the settlement with CoServ is the City's recognition of the Company's right under Texas Utilities Code Section t04.112, independent of the tariffs approved herein, to surcharge facilities relocation charges within the city requiring relocation in accordance with this Code section; and WHEREAS, a condition to the settlement with CoServ and the revised tariffs approved herein is the Company's commitment that it will not file a request with Cities for a rate increase that becomes effective prior to September 1, 2006; and WHEREAS, a condition to the settlement with CoServ is the phase in of the base rate increase approved and reflected by the attached tariffs so that the first ten percent of the rate increase will be implemented upon adoption of the revised tariffs and the remaining increase will be implemented in ten-percent increments on or after November 1, 2005 and the balance on or after August 1, 2006; and WHEREAS, Cities' rate case expenses incurred in this proceeding are reasonable and should be reimbursed by CoServ; and WHEREAS, the City is unable at this time to determine the reasonableness of the rate case expenses incurred by the Company; and WHEREAS, the City has reviewed the settlement agreement reached between the Company and the Coalition of Cities Served by CoServ and has determined that approval of the revised tariffs is in the best interest of the City and its residents, results in just and reasonable rates, and, therefore, should be approved by the City; and WHEREAS, since the Company filing is based upon system-wide standardized rates and tariffs, it would be inappropriate for any city or residents of any city to receive benefits not enjoyed by the entire system; and WHEREAS, pursuant to Chapters I03 and 104 of the Texas Utilities Code, the Cities and Denton are required to (i) analyze CoServ's Rate Filing, as updated; (ii) conduct a pubhc hearing in order to determine the propriety of the proposed rate increase (the "Public Hearing"); and (iii) make a reasonable determination of CoServ's rate base, expenses, investment and rate of return in Denton; and Page 2 of 5 S :\Our Documents\Ordinances\05\CoServ Settlement Orr.doc WHEREAS, the Public Hearing was conducted on December 7, 2004 before the enactment of this Ordinance at which all interested parties were given a full oppommity to comment on the Rate Filing and was continued until January 4, 2005 at which time an additional Public Hearing was held; and WHEREAS, at the January 4, 2005 Council meeting the City Council continued the public hearing until your January 18, 2005 Council meeting to provide an opportunity for additional public comment and to provide time for the coalition of cities to complete the details ora proposed settlement with CoServ; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That it is in the best interest of the City and its residents to adopt the revised residential, commercial and miscellaneous service charge tariffs attached to and made a part of this ordinance that reflect the settlement agreement reached between CoServ and the Coalition of Cities Served by CoServ. All other tariffs proposed/n CoServ's Statement of Intent, except for rate schedule 9 (Rider RCE - rate case expenses) are adopted. SECTION 2. That the adoption of the revised tariffs provides for just and reasonable rates to be charged system-wide by the Company. SECTION phased in over an February 1, 2005, 2005 and the final 3. That the system-w/de annual base revenue increase of $500,000 is to be 18 month period with the first ten percent of the increase to be instituted on the second ten percent of the base rate increase to be instituted November I, ten percent of the base rate increase to be effective on August 1, 2006. SECTION 4. That the effective date of the new tariffs is February 1, 2005 except that the base revenue increase shall be effective as indicated in Section 3. SECTION 5. That no specific rate base, return, revenue or cost adjustments or rate making methodologies are approved in reaching the revenue requirements settlement that leads to the rates and charges adopted by this ordinance, except that CoServ may continue to defer its carrying charges on plant held for future use. SECTION 6. That Cities' rate case expenses, including without limitations those of Diversified Utility Consultants, Inc., are reasonable and shall be reimbursed by CoServ. SECTION 7. That the issue of the recovery of rate case expenses incurred by CoServ Gas be severed from consideration of the revised base rate tariffs and that the City retains jurisdiction over the rate expense reimbursement issue until March 1, 2005, subject to a second thirty-day extension of the City's jurisdiction by CoServ. SECTION 8. That CoServ may not file for a further increase in base rates that is intended to become effective prior to September 1, 2006. Page 3 of 5 S:\Our Documents\Ordinanees\05\CoServ Settlement Ord.doc SECTION 9. That adoption of a most favored nations provision is reasonable and appropriate and that any concession granted to arty city is, at the discretion of the City Council, to be implemented in the City. SECTION 10. That alt relief requested by CoServ not specifically addressed herein is denied. SECTION 11. In order to ensure that rates and charges assessed by CoServ in Denton are just and reasonable to both CoServ and its customers, Denton reserves the fight and privilege at any time to increase, decrease, alter change or amend this Ordinance or the rates established herein or to enact any ordinance or adopt any rates and charges which would effectuate that purpose. In this connection, Denton further reserves the right and privilege to exercise any authority and power granted to it under any applicable law, ordinance or administrative rule or regulation. SECTION 12. If CoServ disputes all or any portion of this Ordinance, prior to filing an appeal with the Railroad Commission of Texas, CoServ shall file with the City Secretary a request for rehearing on the merits by the City Council and shall comply with the procedures established for such a rehearing as set forth in this Section 12. Upon receipt of a request for rehearing, the City Council will promptly provide a forum during a public hearing on an open meeting in order for CoServ to set forth the aspects of this Ordinance which CoServ disputes. The City Council shall have sixtY (60) calendar days following the date of such rehearing to render a final decision. Action of the City Council shall not be considered final for purposes of appeal to the Railroad Commission of Texas until a final decision on any motion for reheating has been rendered. The provisions of this Ordinance shall remain in full force and effect from and after its adoption unless modified by a subsequent ordinance adopted by the City Council as a result of a final decision following a rehearing. SECTION 13. That it is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. SECTION 14. This Ordinance shall take effect and be in full force and effect from and after the date of its adoption. SECTION 15. That the City Secretary is hereby directed to forward a copy of this ordinance, constituting fmal action on the CoServ application, to the appropriate designated representative of the Company, Charles D. Harrell, Chief Financial Officer, CoServ Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, within I0 days. PASSED AND APPROVED this the __ day of ,2005. EULINE BROCK, MAYOR Page 4 of 5 S:\Our Document*\Orttinances\05\CoServ Settlement Or&doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~4~~' Page 5 of 5 Rate Schedule 5 RATE R - RESIDENTIAL SALES Applicable to: Entire System Page 1 of 2 Effective Date: February 1, 2005 Application of Schedule Schedule applies to all Residential Customers. Monthly Base Rate Customer's base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $ 9.00 per month, plus Volumetric Charge: First 0 Ccf to 20 Ccf Next 50 Ccf All Additional Ccf $. 19437 per Ccf $.14437 per Ccf $.09437 per Ccf Purchased Gas Factor In addition to the base monthly bill above, each customer's bill wiI1 include a Purchased Gas Factor to account for purchased gas costs and computed Ln accordance with CoServ Purchased Gas Factor Schedule No. 2. Taxes In addition to the monthly charges above, each customer's bill will include a charge for an mount equivalent to the customer's proportional part of the city franchise fees, state gross receipts taxes, or other governmental levies payable by the Company, exclusive of federal income taxes. Municipal franchise fees are determined by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the percentage and applicability of franchise fees. From time to time, the tax factor may be adjusted, if required, to account for any over- or under-recovery of municipal franchise fees by the Company and to include an amount equivalent to the proportionate part of any new tax or increased franchise fee or tax, or any other governmental imposition, rental fee, or charge levied, assessed or imposed subsequent to the effective date of this tariff by any governmental authority, including districts, created under the laws of the State of Texas. The Company will also collect sales taxes where appticable. Rate Schedule 5 RATE R - RESIDENTIAL SALES Applicable to: Entire System Page 2 of 2 Effective Date: February 1, 2005 Surcharges In addition to the monthly charges above, each customer's bill will include an amount for surcharges calculated in accordance with the applicable rider(s). Line Extension Policy The company has the right to contract with individual customers for the installation of gas facilities as provided for by the city franchise. Upon the request of a prospective new residential or commercial customer for service in an area served by CoServ Gas, CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main in the Public Rights o£Way, without charge. The 100-foot allowance applies to a single customer or to a group of customers requesting service from the same extension. Customers requesting mainI/ne extensions in excess of 100 feet shall bear the cost of any additional main, and shall bear the cost of all yard lines, service lines, customer meters and regulators, and appurtenant equipment, in accordance with the charges listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service Charges. CoServ Gas is not required to extend its mains or facilities if the customer will not use. gas for space heating and water heating, or the equivalent load, at a minimum. Rate Schedule 6 RATE C - COMMERCIAL SALES Applicable to: Entire System Page 1 of 2 Effective Date: February 1, 2005 Aoolieation of Schedule Schedule applies to ali commercial customers. Monthly Base Rate Customer's base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $15.50 per month, plus Volumetric Charge: First 0 Ccfto 300 Ccf Next 200 Ccf All Additional Ccf $.24436 per Ccf $. 19436 per Ccf $. 14436 per Ccf Purchased Gas Factor In addition to the base monthly bill above, each customer's bill will include a Purchased Gas Factor to account for purchased gas costs and computed in accordance with CoServ Purchased Gas Factor Schedule No. 2: Taxes In addition to the monthly charges above, each customer's bill will include a charge for an amount equivalent to the customer's proportional part of the city franchise fees, state gross receipts taxes, or other governmental levies payable by the Company, exclusive of federal income taxes. Municipal franchise fees are determined by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the percentage and applicability of franchise fees. From time to time, the tax factor may be adjusted, if required, to account for any over- or under-recovery of municipal franchise fees by the Company and to include an amount equivalent to the proportionate part of any new tax or increased franchise fee or tax, or any other governmental imposition, rental fee, or charge levied, assessed or imposed subsequent to the effective date of this tariff by any governmental authority, including districts, created under the laws of the State of Texas. The Company will also collect sales taxes where applicable. Rate Schedule 6 RATE C - COMMERCIAL SALES Applicable to: Entire System Page 2 of 2 Effective Date: February 1, 2005 Surchare~ In addition to the monthly charges above, each customer's bill will include an amount for surcharges calculated in accordance with the applicable rider(s). Line Extension Policy The company has the right to contract with individual customers for the installation of gas facilities as provided for by the city franch/se. Upon the request of a prospective new residential or commercial customer for service in an area served by CoServ Gas, CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main in the Pubhc Rights of Way, without charge. The 100-foot allowance applies to a single customer or to a group of customers requesting service from the same extension. Customers requesting mainline extensions in excess of 100 feet shall bear the cost of any additional main, and shall bear the cost of all yard lines, service lines, customer meters and regulators, and appurtenant equipment, in accordance with the charges listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service Charges. CoServ Gas is not required to extend its mains or facilities if the customer will not use gas for space heating and water heating, or the equivalent load, at a minimum. Rate Schedule 10 RATE M - MISCELLANEOUS SERVICE CHARGES Applicable to: Entire System Page 1 of 2 Effective Date: February 1, 2005 Application The service charges listed below are in addition to any other charges under the Company's Tariff for Gas Service and will be applied for the condition described. Other services not covered by these standard conditions will be charged on the basis of an estimate for the job or the Company's actual cost plus appropriate surcharges. Aoplicable Charees Service Charge Name and Description Amount of No. Charge ConnectiOn Charge During BusineSs H0'~rs ..... During standard business hours, for each reconnection of gas service where service has been chscontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with 1 the following exceptions: (a) For a builder who uses gas temporarily during construction $ 65.00 or for display purposes. (b) Whenever gas service has been femporarily interrupted because of System outage or service work done by Company; or (c). For any reason deemed neces.sary for Company operations Connection Charge After Business Hours After standard business hours, for each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with 2 the following exceptions: $ 97.00 (a) For a builder who uses gas temporarily during construction or for display purposes. (b) Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or (c) For any reason deemed necessary for Company op_.erations Field Read of Meter 3 A read for change charge when it is necessary for the Company to read the meter at a currently served location because of a change in $ 19.00 the billable party. 4 l~eturned Check Charges $ 20.00 Returned check handling charge for each check returned to Company for any r..e. ason. Charge for Temporary DiscontinuanCe of S"ervice - Residential ....... Whenever service has been temporarily disconnected at the request 5 of the customer, this charge plus the appropriate Connection Charge $ 65.00 wilt be made to reestablish such service for that customer at the same address. Charge for TemporarY Dis~'~htinuance of Service- ~hResidential Whenever service has been temporarily disconnected at the request 6 of the customer, this charge plus the appropriate Connection Charge $ 107.00 will be made to reestablish such service for that customer at the same address. Charge for Meter Testing The Company shall, upon request of a customer, make a test of the accuracy of the meter serving that customer. The Company shall inform the customer of the time and place of the test and permit the customer or his authorized representative to be present if the 7 customer so desires. If no such test has been performed within the previous four (4) years for the same customer at the same location, $ t5.00 the test shall be performed without charge. If such test has been performed for the same customer at the same location within the previous four (4) years, the Company will charge the Meter Test Fee. The customer must be properly informed of the result of any test on a meter that services lfim. Charge for Servi'~'e Calls During Business H;h s A Service Call Charge is made for responding to a service call 8 during standard business hours that is determined to be a customer $ 26.00 related problem rather than a Company or Company facilities problem. Charge for Service Calls After Business Hours 9 A Service Call Charge is made for responding to a service call after standard business hours that is determined to be a customer related $ 40.00 problem rather than a Company or Company facilities .problem. Tampering Charge No Company Meters, equipment, or other property, whether on Customer's premises or elsewhere, are to be tampered with or interfered with for any reason. A Tampering Charge is made for unauthorized reconnection or other tampering with Company 10 metering facilities or a theft of gas service by a person on the $ 125.00 customer's premises or evidence by whomsoever at customer's premises. An additional cost for the cost of repairs and/or replacement of damaged facilities and the installation of protective facilities or relocation of meter are made at cost plus appropriate charges as may be detailed in the Company's Service Rules and Regulations Credit/Debit C~rd Payments Charge ...... 11 Bill payments using credit cards, debit cards, and electronic checks Actual Cost (includes third-party transaction fees and administrative, costs). _. Rate Schedule 10 RATE M - MISCELLANEOUS SERVICE CHARGES Applicable to: Entire System Page 2 of 2 Effective Date: February 1, 2005 Line Extension and Installation Charges Extension and installation of new mains, service lines, risers, 12 fittings and other appurtenant equipment pursuant to main Actual Cost extension policy in municipal franchise. Credit for main pursuant to municipal franchise. The customer is responsible for the _i..n. st.a. llation of yard line and yard line n~.s. ers. 13 Construction Crew Charges Actual Cost All labor charges if a construction crew is required. 14 Construction Costs Charges Actual Cost All other cons .t?..ction charges. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: January 18, 2005 Materials Management Kathy DuBose Questions concerning this acquisition may be directed to Kelly Carpenter 349-8504 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of sidewalks for the City of Denton; providing for the expenditure of funds therefore; and providing an effective date (Bid 3272-Prairie, Crawford, Paisley Sidewalks awarded to Floyd Smith Concrete, Inc. in the amoum of $162,145.18). BID INFORMATION This project consists of the construction of sidewalks along three different streets using Community Developmem Block Gram funds. Sidewalks will be constructed on the north side of Prairie Street from Bradshaw to Bell Street and on the south side of Prairie Street from Bell to Locust Street. Sidewalks will also be constructed on the west side of Crawford Street from Hickory to Sycamore Street and on the north side of Paisley Street from Frame to Bradshaw Street. Except for the proposed sidewalk on Prairie Street from Bradshaw to 600 feet west, these sidewalks comply with Section 35.20.3 of the City of Demon Developmem Code titled "Pedestrian/Bicycle Standards" and meet the width, thickness and material specifications listed in Section 2.1.3 of the City of Demon Transportation Criteria Manual. These sidewalks will be constructed according to City of Denton standard details for concrete sidewalk construction. A variance for sidewalk width will be processed for the Prairie sidewalk because there is only four feet between the curb and cemetery fence. Texas Accessibility Standards allow sidewalks to be narrowed to three feet where there are obstacles, so staff will be supporting the variance application of Community Developmem on this sidewalk. RECOMMENDATION Awarded to Floyd Smith Concrete, Inc. in the amount of 162,145.18. PRINCIPAL PLACE OF BUSINESS Floyd Smith Concrete, Inc. Denton, TX STAFF COST ESTIMATE The engineer's estimate for this project was $159,795,90. Agenda Information Sheet January 18, 2005 Page 2 ESTIMATED SCHEDULE OF PROJECT This project is scheduled to begin March 1, 2005 with an estimated completion date of June 1, 2005. FISCAL INFORMATION Funding for this project will come from accounts 902003029 (Prairie Street Sidewalks), 902003044 (Crawford Street Sidewalks), and 902003028 (Paisley Street Sidewalks). Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 3272 Attachment 1 BI'D # :3272 DATE: 12/16/04 PRAI'RI'E, CRAWFORD & PAI'SLEY STREET SI'DEWALKS ~ , Humprey & Morton Floyd Smith J & J Harascape ~ ~ . , Ken-Do Contracting ..... Construction uoncre[e, ~nc. uons[rucuon, ~nc. Inc. Company, Principle Place of Business: Denton, TX Desoto, TX Fort Worth, TX Fort Worth, TX 1 TOTAL BASE BID $162,145.18 $172,382.50 $233,449.00 $175,959.60 2 Bid Bond YES YES YES YES 3 Addendum #1 YES YES YES YES 4 5 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF SIDEWALKS FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3272-PRAIRIE, CRAWFORD, PAISLEY SIDEWALKS AWARDED TO FLOYD SMITH CONCRETE, iNC. iN THE AMOUNT OF $162,145.18). 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 3272 Floyd Smith Concrete, Inc. $162,145.18 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 .,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY 3-ORD-Bid 3272 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: January 18, 2005 Materials Management Questions concerning this acquisition may be directed to Scott Payne 349-7836 ACM: Kathy DuBose ~ SUBJECT Consider adoption of an Ordinance accepting sealed proposals and awarding a coNract for Long Term and Short Term Disability Program for the City of DeNon; providing for the expenditure of funds therefore and providing an effective date (RFSP 3264-Long Term and Short Term Disability Program awarded to UNUM ProvideN in the estimated annual amouN of $199,100). RFSP INFORMATION The City purchases Long-Term Disability (LTD) Insurance for all regular, full-time employees. The purpose of this insurance is to provide employees with temporary income replacement in the event that the employee should have a non-work related illness or injury that lasts longer than 90 days. in addition, the City provides all regular, full-time employees the option of purchasing Short-Term Disability (STD) insurance, paid for 100% by the employee. This allows employees, especially new hires, without enough sick or vacation time a bridge to the LTD coverage in the even of a personal illness or injury. The City has been insured with UNUM ProvideN for LTD Insurance since 1999, and added the benefit option of STD Insurance in 2000. The current contract with UNUM expires on February 1, 2005. Through Request for Sealed Proposal (RFSP) #3264, the City of DeNon received six proposals for the City's LTD and STD insurance. Staff evaluated and analyzed proposals submitted by the following: UNUM Provident provided a joint proposal for LTD and STD Insurance, with a two-year rate guaraNee for the City's cost for LTD coverage. Unum proposed an annual cost to the City of approximately $199,100 for LTD. They proposed an estimated total of $71,300, an average decrease of 12.5%, for employee premiums for STD coverage. Prudential provided a join proposal for LTD and STD Insurance, with a two-year rate guarantee for the City's cost for LTD coverage. Prudential proposed an annual cost to the City of approximately $195,000 for LTD. They proposed an estimated total of $81,000, with no decrease, for employee premiums for STD coverage. Hartford Life provided a join proposal for LTD and STD Insurance, with a one-year rate guaraNee for the City's cost for LTD coverage. Hartford proposed an annual cost to the City of approximately $205,000 for LTD. They proposed an estimated total of $72,000, an average decrease of 11%, for employee premiums for STD coverage. Agenda Information Sheet January 18, 2005 Page 2 RFSP INFORMATION (CONTINUED) SunLife provided a joint proposal for LTD and STD Insurance, with a one-year rate guarantee for the City's cost for LTD coverage. SunLife proposed an annual cost to the City of approximately, $210,000 for LTD. They proposed an estimated total of $75,000, an average decrease of 3%, for employee premiums for STD coverage. Reliance Standard provided a joint proposal for LTD and STD Insurance, with a one-year rate guarantee for the City's cost for LTD coverage. Reliance Standard proposed an annual cost to the City of approximately $264,000 for LTD. They proposed an estimated total of $74,000, an average decrease of 13%, for employee premiums for STD coverage. MetLife provided a joint proposal for LTD and STD Insurance, with a one-year rate guarantee for the City's cost for LTD coverage. MetLife proposed an annual cost to the City of approximately $269,000 for LTD. They proposed an estimated total of $81,000, with no decrease, for employee premiums for STD coverage. RECOMMENDATION Awarded to RFSP 3264 to UNUM Provident in the amount of $199,100. With a decrease of 9.1 % proposed by UNUM, in 2005 the City will save approximately $20,000 for premiums for LTD coverage. Furthermore, UNUM proposed a reduced rate to employees for STD coverage, which they fully pay out of pocket. Prudential had a lower LTD rate ($.39 per $100 as opposed to UNUM's $.40 per $100 of payroll), however their STD rates provided no savings to the employee. UNUM proposed a 12.5% decrease for the employees' contributions for STD, guaranteed for 2 years. Reliance Standard actually offered a lower STD rate for employees aged 40 and over, however the majority of City employees who voluntarily enroll in STD are between the ages of 20 to 39 years. Reliance's proposal resulted in an increase to most of our employees. In addition, Reliance offered only a one-year rate guarantee and a much higher LTD ($0.53 per $100) rate. Remaining with UNUM will allow the City continuity of coverage, cause no disruptions in benefits, and will also provide better coordination of LTD and STD benefits by having both coverages with the same carrier. UNUM is one of the largest providers of disability coverage nationwide, with a solid financial rating. In addition, UNUM has a large Texas presence with a Dallas/Fort Worth office providing representatives, customer service and benefit management. Prudential did not provide any information regarding their Texas client base or Dallas/Fort Worth representation. Agenda Information Sheet January 18, 2005 Page 3 RECOMMENDATION (CONTINUED) The City's history with UNUM has been very positive, including claims managemem, benefit design and administration and customer service. UNUM provides the City with consistem and meaningful data on the performance and financial status of our disability plans. Awarding this contract to UNUM Provident is the most advantageous to both the City and the employees. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) Pursuam to Ordinance No. 2001-032 the City Council awarded a comract for Employee Long- Term Disability Insurance to UNUM Provident for a period of two years, with two one year options to renew. The first contract commenced on February 1, 2001, and ended January 31, 2003. This policy was renewed with UNUM Providem in each of the renewal periods with the final renewal expiring on January 31, 2005. PRINCIPAL PLACE OF BUSINESS UNUM Providem Addison, TX ESTIMATED SCHEDULE OF PROJECT The comract begins February 1, 2005, with a guarameed rate umil January 31, 2007. The City has the option for an additional one-year renewal, based on the City of DeMon's loss history, employee demographics and enrollmem. FISCAL INFORMATION Funds for Long-Term Disability Insurance premiums are provided in the fiscal year 2005 budget accoum 911001.6136. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachmem #1: LTD Responses/Analysis Attachmem #2: STD Responses/Analysis Attachmem #3: Vendor List 1-AIS-RFSP 3264 Vendor Prudential UNUM Hartford Life SunLife Reliance Standard MetLife Attachment 1 RFSP 3264 Responses Long-Term Disability Coverage Current Rate Proposed Rate Lenqth/Guarantee N/A $0.39 2 year $0.44 $0.40 2 year N/A $0.41 1 year N/A $0.42 1 year N/A $0.53 1 year N/A $0.54 1 year Rates are per $100 of payroll. Attachment 2 RFSP 3264 Responses Short-Term Disability Coverage Age 2004 Rate UNUM Hartford SunLife MetLife Prudential Reliance Std. $ ~ 25-29 $0.51 $0.45 0.45 0.47 0.51 0.51 0.51 ~ $~ $~ ~ ~ 35-39 $0.44 $0.39 0.39 0.40 0.44 0.44 0.44 $~ $~ ~ 45-49 $0.51 $0.45 0.45 0.47 0.51 0.51 0.44 55-59 $0.76 $0.67 0.68 0.70 0.76 0.76 0.62 64-70 $1.05 $0.9~ 0.93 0.96 1.05 1.05 0.69 Rate Guarantee 2 years 1 year 1 year 1 year 2 years 1 year AETNA HEALTH JOHN LAWLESS 2777 N STEMMONS FWY DALLAS TX 75207 AUL DREW DRIVER 12377 MERIT DR, STE 730/LB29 DALLAS TX 75251 CIGNA JEFF PORTUGAL 6600 E CAMPUS CIR DR, STE 540 IRV1NG TX 75063 FIRST FIN GROUP OF AMERICA STEVE ROSENBAUM 6311 N O'CONNOR BLVD #207 IRVING TX 75039 HARTFORD JEREMY LEWIS 17855 DALLAS PKWY STE 100 DALLAS TX 75287 METLIFE JACK MATHEWS 1 L1NCOLN CTR LB 30 STE 460 5400 LBJ FREEWAY DALLAS, TX 75240-2622 PACIFIC LIFE LORI GIBSON 2805 DALLAS PKWY, STE 510 PLANO TX 75093-8719 RELIANCE STANDARD TEDD CLOVSTAD 14881 QUORUM DRIVE STE 420 DALLAS TX 75254 UNIMERICA MATT ALDRIDGE 5800 GRANITE PKWY STE 520 PLANO TX 75024 ALLSTATE 4100 HERITAGE AVE STE 107 GRAPEVINE, TX 76051 Attachment 3 RFSP 3264 Vendor List AIG TERRI ROBINS 8144 WALNUT HILL LANE SUITE 1600 DALLAS TX 75231 BOSTON MUTUAL LARRY FALDET 14651 DALLAS PKWY STE 306 DALLAS TX 75254 COLONIAL LIFE INSURANCE CALVIN DORSEY 2049 VISTA DRIVE LEWISVILLE TX 75067 GREAT SOUTHERN LIFE BILL TATUM 13897 BROOKGREEN DALLAS TX 75240 ING EMPLOYEE BENEFITS JEFF FLANAGAN/GAYLE YORK 15455 DALLAS PKWY STE 1250 ADDISON TX 75001 MUTUAL OF OMAHA LILA MCLEOD 14131 MIDWAY ROAD STE 1010 ADDISON TX 75001 PRINICIPAL FINANCIAL GROUP DREW FUSCO 13737 NOEL ROAD, STE 1210 DALLAS TX 75240 SUNLIFE DAN HARLOW ONE GALLERIA TOWER, 13355 NOEL ROAD STE 1907 DALLAS TX 75240 UNUM PROVIDENT MONA B1NKLEY THE MILLENNIUM BUILD1NG I 15455 N DALLAS PWY STE 700 ADDISON TX 75001 ASSURANT BENEFITS JILL WILLIAMS 16775 ADDISON RD SUITE 500 ADDISON TX 75001 CANADA LIFE JESSE BECK TWO LINCOLN CENTER 5420 LBJ FREEWAY, # 1440 DALLAS TX 75240 CORPORATE HEALTH PLANS OF AMERICA MICHAEL WILSON 5005 LBJ FREEWAY STE 820 DALLAS TX 75244 GUARDIAN TODD REDMOND GALLERIA TOWER ONE 13455 NOEL ROAD STE 1555 DALLAS TX 75240 JEFFERSON PILOT RUSTY WENZEL 9001 AIRPORT FRWY STE 660 NORTH RICHLAND HILLS TX 76180 NYLCARE JOHN PARKER 4500 FULLER DRIVE IRVING TX 75038 PRUDENTIAL JAY WARD 8117 PRESTON ROAD, STE 600 DALLAS TX 75225 TEXAS MUNICIPAL LEAGUE SUSAN SMITH 2711 LBJ FREEWAY STE 1012 DALLAS TX 75234 WAUSAU INSURANCE COMPANIES TIM PERRY 105 DECKER COURT # 600 IRVING TX 75062 RFSP 3264 Long and Short Term Disability ORDINANCE NO. AN ORDINANCE ACCEPTING SEALED PROPOSALS AND AWARDING A CONTRACT FOR LONG TERM AND SHORT TERM DISABILITY PROGRAM FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE AND PROVIDING AN EFFECTIVE DATE (RFSP 3264-LONG TERM AND SHORT TERM DISABILITY PROGRAM AWARDED TO UNUM PROVIDENT IN THE ESTIMATED ANNUAL AMOUNT OF $199,100). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of insurance Consultant Services in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFSP NUMBER CONTRACTOR AMOUNT 3264 UNUM Provident $199,100 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. That by acceptance and approval of the above numbered items of the submitted proposals, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved proposals or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ., 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY 3-ORD-RFSP 3264 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET January 18, 2005 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Mike Ellis 349-8424 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a contract for the purchase of fleet vehicles; providing for the expenditure of funds therefore; and providing an effective date (Bid 3251-Fleet Vehicles 2005 awarded to the lowest responsible bidder for each item in the amount of $496,428.00). (The Public Utility Board approved the Utility and Solid Waste vehicles by a vote of 7-0). BID INFORMATION This bid is for the purchase of fleet vehicles for various City departments. The following are for vehicle replacements approved in the FY 2004-05 budget. Several criteria are used to evaluate the need for replacement. These criteria include maintenance costs, the age of the vehicle, and mileage. · Electric Metering 2 - ½ ton regular cab · Electric Operations 1 - ½ ton extended cab 1 - ½ ton crew cab · Water Metering 1 - ½ ton extended cab, 4-wheel drive · Solid Waste Residential 1 - 3/4 ton crew cab diesel · Wastewater Collection 1 - 3/4 ton regular cab, 4-wheel drive · Streets 1 - 1½ ton crew cab · Traffic Control 1 - 1½ ton, utility body, winch, arrow board · Water Reclamation 2 - 1½ ton utility body with auto crane · Drainage 1 - 3/4 ton crew cab 4-wheel drive · Solid Waste Residential 1 - 3/4 ton crew cab diesel · Solid Waste Landfill 1 - 3/4 ton crew cab diesel The following are additions to the fleet approved in FY 2004-05 budget: · Water Metering · Electric Metering · Solid Waste Commercial · Customer Service 1 - ½ ton extended cab, 4-wheel drive 1 - 3/4 ton extended cab utility body 2 - 3/4 ton crew cab diesel 1 - 4-door midsize sedan Water Metering - ½ ton pickup: This unit is intended to give a field service supervisor the ability to deal with customer service and field-related projects in a timely manner instead of waiting for a pool vehicle. Agenda Information Sheet January 18, 2005 Page 2 BID INFORMATION (CONTINUED) Electric Metering - 3/4 ton pickup utility body: This unit is to supplement a new position for an Electric Metering Technician. Solid Waste Commercial - 3/4 ton pickup: This unit is intended to give the crew leader the ability to deal with individual customer service issues in a timely manner instead of waiting for a pool vehicle. Customer Service - Sedan: This unit will be utilized for transportation to and from various Customer Service locations, for meetings and general supervision. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved the Utility and Solid Waste vehicles at its January 10, 2005 meeting. RECOMMENDATION Awarded to the lowest responsible bidder for each item as listed below. Item Desc.(See Tab) Qty. Supplier Price +Options* Net Each Total 1. ½TnPickup 2 GraffChevrolet $11,935.00 N/A $11,935.00 $23,870.00 2. ½ TnPickup 1 Philpott Ford $14,144.00 $850.00 $14,994.00 $14,994.00 3. ½ TnPickup V6, 4x4 2 Westway Ford $16,748.00 N/A $16,748.00 $33,496.00 4. ½ Tn Pickup 1 Alvin Dodge $18,996.00 N/A $18,996.00 $18,996.00 5. 3/4 TnPickup 4x4 1 Philpott Ford $18,238.00 N/A $18,238.00 $18,238.00 6. 3/4 TnPickup 4x4 2 Philpott Ford $26,928.00 N/A $26,928.00 $53,856.00 7. 3/4 TnCrew Cab 4x4 4 Philpott Ford $26,368.00 N/A $26,368.00 $105,472.00 8. 3/4 TnExt. Cab Utility 1 GraffChevrolet $24,248.00 N/A $24,248.00 $24,248.00 Body 9. 1½ TnCrew Cab 1 Philpott Ford $32,848.00 N/A $32,848.00 $32,848.00 Flatbed 10. 1½ Tn. Utility 2 Philpott Ford $53,488.00 N/A $53,488.00 $106,976.00 Body/Crane 11. 1½ Tn. Utility Body 1 Philpott Ford $51,146.00 N/A $51,146.00 $51,146.00 12. 4-Door Midsize 1 Philpott Ford $12,288.00 N/A $12,288.00 $12,288.00 Sedan Total Amount for 19 Vehicles: $496,428.00 *Options include extended warranty and power windows and locks for Item 2. All vehicles are powered by LEV rated gasoline or diesel engines. Agenda Information Sheet January 18, 2005 Page 3 PRINCIPAL PLACE OF BUSINESS Alvin Dodge Alvin, TX Westway Ford Garland, TX Philpott Ford Nederland, TX Graft Chevrolet Grand Prairie, TX ESTIMATED SCHEDULE OF PROJECT Delivery schedules vary by vendor and type of vehicle with delivery dates ranging from 45 days to 120 days. FISCAL INFORMATION Funding for the Motor Pool replacement vehicles will be from the Motor Pool Fixed Asset Fund account 810001.8535. This fund is made up of an accumulation of Motor Pool replacement funds and proceeds from the auction of City vehicles and equipment. Fleet additions will be funded as listed below. Water Metering Electric Metering Solid Waste Commercial Customer Service 1 - ½ ton ext. cab 4x4 1 - 3A ton ext. cab utility body 2 - 3A ton crew cab diesel 1 - 4-door midsize sedan $16,748.00 $24,248.00 $57,236.00 $12,288.00 630300.8537 810001.8535 3rd-pa~ylease 630800.8537 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Attachment 2: 1-AlS-Bid 3251 Tabulation Sheet Vendor List I.N 0 0 0 0 0 0 0 0 Attachment 2 ALVIN DODGE CHRIS ROLLO 1509 S GORDON ST ALVIN TX 77511 BANKSTON JEEP 6600 HWY 121 FRISCO TX 75034 CLASSIC CHEVROLET PO BOX 1717 GRAPEVINE TX 76051 DON DAVIS AUTO GROUP 1901 N COLLINS ARLINGTON TX 76011 EQUIPMENT SOUTHWEST DAVID SCHOENER 425 S LOOP 12 IRVING TX 75060 FIVE STAR FORD VICTOR LEA PO BOX 110098 CARROLLTON TX 75006 FIVE STAR FORD 6618 NE LOOP 820 N RICHLAND HILLS TX 76180 FORREST CHEVROLET ROBBIE KNIGHT PO BOX 37 CLEBURNE TX 76033 GRAFF CHEVROLET 1405 E MAiN ST GRAND PRAIRIE TX 75050 HUDIBURG CHEVROLET 7769 GRAPEVINE HWY FT WORTH TX 76180 HUFFiNES CHEVROLET PO BOX 338 LEWISVILLE TX 75067 HUFFiNES CPJK 5150 1-35 E SOUTH DENTON TX 76205 HUFFiNES DODGE PO BOX 807 LEWISVILLE TX 75067-0338 LEE JARMAN FORD PO BOX 98 CARROLLTON TX 75006 KARL KLEMENT DODGE CLIFTON ADDK1NSON PO BOX 995 DECATUR TX 76234 LONGHORN DODGE iNC LARRY MCNATT 4500 S FREEWAY FT WORTH TX 76115 MCNATT CHEVROLET 1405 STEMMONS SANGER TX 76266 JIM MCNATT DODGE TOYOTA 4100 S 1-35 DENTON TX 76210 MHC KENWORTH RANDY SMARTT 4040 IRVING BLVD DALLAS TX 75247 PHILPOTT FORD EMITT CONE 1400 US HWY 69 NEDERLAND TX 77627 PHILPOTT FORD LJ SCHRIEBER PO BOX 876 PORT NECHES TX 77651 PILOT POINT FORD RANDY HAYES PO BOX 310 PILOT POINT TX 76258 PRESTIGE FORD 3401 S GARLAND AVE GARLAND TX 75041 RDO TRUCK CENTER CO RICHARD WYNNE 2959 IRVING BLVD DALLAS TX 75247 ALLEN SAMUELS DODGE PO BOX 77037 FT WORTH TX 76177 TEXAS MOTORS FORD GREG ROTRUCK 300 W LOOP 820 S FT WORTH TX 76108 TEXOMA FORD DONNIE NORMAN 215 HWY 75N PO BOX 693 DENISON TX 75020 BILL UTTER FORD 4901 S 1-35E DENTON TX 76205 VILLAGE AUTO GROUP PO BOX 294286 LEWISVILLE TX 75029 WESTWAY FORD 801 W AIRPORT FWY IRVING TX 75062 JAMES WOOD AUTOPLEX RICH HOFFMAN-COMMERCIAL SALES PO BOX 50779 DENTON TX 76206 WESTWAY FORD PERRY SMITH 2101 COUNTRY DELL DR GARLAND TX 75040 Attachment 2 JAMES WOODS MOTORS PO BOX 479 DECATUR TX 76234 Bid #3251 - Fleet Vehicles 2005 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF FLEET VEHICLES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3251-FLEET VEHICLES 2005 AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH ITEM IN THE AMOUNT OF $496,428.00). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER ITEM VENDOR AMOUNT 3251 1,8 Graft Chevrolet $ 48,118.00 3251 2,5-7,9-12 Philpott Ford $395,818.00 3251 3 Westway Ford $ 33,496.00 3251 4 Alvin Dodge $ 18,996.00 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 ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY 3-ORD-Bid 3251 Q/z/ (/ CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities 6) Receive a report and hold a discussion regarding vehicle replacement criteria utilized by the City. Howard Martin, ACM/Utilities, reviewed the criteria that determine vehicle replacement. He explained that the criteria are based on estimated useful life; miles/hours the vehicle has been in operation and the amount of repairs. Each piece of equipment is evaluated on a 15-point scale. When the point total reaches 15 the vehicle meets the criteria for replacement. Martin also gave an explanation of the categories in the points system. The Motor Pool fund tracks the information on all vehicles and maintains funding for all equipment/vehicle replacements. Each department provides funding for the initial purchase of the equipment/vehicle in their operating budgets. Using estimated life, each department provides money to the Motor Pool Fund for replacement costs so that funds are always available to replace equipment in a timely manner. This was an information only item and required no vote by the Board. 7) Consider approval of Bid No. 3251 accepting competitive bids and awarding a contract for the purchase of fleet vehicles to the lowest responsible bidders in an amount not to exceed $412,434.00. Tom Shaw, Purchasing Agent, presented this item. Shaw also introduced Mike Ellis, the new Fleets Superintendent to the Board. Board Member Phil Gallivan moved to approve Bid No. 3251, with a second from Board Member Bill Cheek. The motion was approved by a vote of 7-0. 8) Consider approval of Bid No. 3253 accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment to the lowest responsible bidder in an amount not to exceed $398,181.07. Page 1 of 2 Shaw also presented this item. Smith moved to approve Bid No. 3253, with a second from Board Member Bob Bland. The motion was approved by a vote of 7-0. 9) Consider approval of Bid No. 3279 for five refuse trucks, a motor grader, a skid steer loader, and five 3A ton 4 x 4 diesel pickup trucks for the Solid Waste Department, and a wheel loader and screener for the Beneficial Reuse division through a lease-purchase financing agreement to Chase Equipment Leasing, Inc. in an amount not to exceed $123,364.40. Shaw presented this bid. Bland moved to approve Bid No. 3279, with a second from Hopkins. The motion was approved by a vote of 7-0. The meeting was adjourned at 11:09 a.m. Charldean Newell, Chairperson Howard Martin, ACM/Utilities Lynn Pedrick, Secretary Page 2 of 2 AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET January 18, 2005 Materials Management Kathy DuBose ~ Questions concerning this acquisition may be directed to Mike Ellis 349-8424 SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a comract for the purchase of fleet heavy equipment; providing for the expenditure of funds therefore; and providing an effective date (Bid 3253-Fleet Heavy Equipmem 2005 awarded to the lowest responsible bidder for each item in the amoum of $780,133.57). (The Public Utility Board approved the Utility and Solid Waste items by a vote of 7-0). BID INFORMATION This bid is for the purchase of two skid steer loaders, one single drum vibratory roller, two loader/backhoes, one 2 cubic yard articulated 4-wheel drive loader, one 180-200 horsepower motorgrader, and one 160-180 horsepower motorgrader. One skid steer loader is a fleet addition for Solid Waste Recycling. One skid steer loader, the single drum loader, one loader backhoe, and the 160-180 hp motorgrader are motor pool replacements for the Street Maintenance Division. One loader backhoe is a motor pool replacement for the Water Distribution Division. The 2 cubic yard 4-wheel drive loader is a fleet replacemem for Beneficial Reuse and the 180- 200 hp motorgrader is a motor pool replacemem for the Solid Waste Landfill operation. All units are powered with EPA Tier II compliant 2005 model engines. RECOMMENDATION Awarded to the lowest responsible bidder as listed below based upon net cost after the 36-momh buy back agreement is exercised except for Item 1. Item Desc.(See Tab) Qty. Supplier Price +Options Deduct 36 Total Net Mo Buy Back Cost 1. Skid Steer Loader 1 Bobcat DeNon $26,671.85 $7,065.09 N/A $33,736.94 1. Skid Steer Loader 1 Bobcat DeNon $26,671.85 $2,372.18 N/A $29,044.03 2. Single Drum 1 Cominemal $93,346.00 $10,870.00 ($51,340.00) $52,876.00 Roller 3. Loader/Backhoe 1 Equip Support $71,120.47 N/A ($39,900.00) $31,220.47 Services 3. Loader/Backhoe 1 Equip Support $71,120.47 N/A ($39,900.00) $31,220.47 Services 4. 2 Cu Yd Loader 1 Equip Support $85,845.66 $8,117.00 ($57,000.00) $36,962.66 Services 6. Motorgrader 180- 1 Holt CAT $199,361.00 N/A ($156,500.00) $42,861.00 200 hp 7. Motorgrader 160- 1 Holt CAT $177,572.00 N/A ($142,500.00) $35,072.00 180 hp Subtotal Award $751,709.30 $28,424.27 ($487,140) $292,993.57 Agenda Information Sheet January 18, 2005 Page 2 RECOMMENDATION(CONTINUED) The total award amount of $780,133.57 includes the outright purchase price plus options as described below. Item 1, Line 1 options include pallet fork, grapple bucket, sweeper and auger attachments. Item 1, Line 2 options include grappler bucket attachment. Item 2, Line 3 options include all weather protective cab. Item 4, Line 6 options include 5 cubic yard optional bucket. At the end of 36 months, the awarded supplier will buy back the applicable equipment at the guaranteed price. Item 5 will not be awarded. and minimal operating cost. back agreement on this unit. We are recommending we retain the existing unit due to low hours The supplier, Holt CAT, has agreed to release the City from the buy The lower price offered by RDO Equipment on Item 3 failed to meet specification for engine horsepower, digging depth, load height and operating weight. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved the Utility and Solid Waste equipment at its January 10, 2005 meeting. PRINCIPAL PLACE OF BUSINESS Bobcat of Denton Denton, TX Equipment Support Services Continental Equipment Company,L.P. Euless, TX Dallas, TX Holt CAT Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT Delivery can be accomplished within approximately 60-100 days from receipt of an order for all items. FISCAL INFORMATION These heavy equipment acquisitions will be funded from two sources-Motor Pool Replacement Account (810001.8535) or Third Party Leasing as approved during the 2004-05 budget process. The funding source for each heavy equipment item is listed below: Agenda Information Sheet January 18, 2005 Page 3 FISCAL INFORMATION (CONTINUED) Item# Description Dept. 1 Skid Steer Loader Street 1 Skid Steer Loader Recycling 2 Single Drum Roller Street 3 Loader/Backhoe Street 3 4 6 7 Loader/Backhoe Water Dist. 2 Cubic Yd Loader Ben. Reuse Motorgrader 180-200 Solid Waste Motorgrader 160-180 Street Funding Source Motor Foot Third Party Lease Motor Foot Motor Foot Motor Pool Motor Pool Motor Pool Third Party Lease Motor Pool Total Funding Amount $ 29,044.03 $ 33,736.94 $104,216.00 $ 18,549.47 $ 52,571.00 $ 71,120.47 $ 93,962.66 $199,361.00 $177,572.00 $780,133.57 Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet 1-AlS-Bid 3253 CD CD f'~ ~ W ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF FLEET HEAVY EQUIPMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3253-FLEET HEAVY EQUIPMENT 2005 AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH iTEM iN THE AMOUNT OF $780,133.57). 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 3253 1 Bobcat of Denton $ 62,780.97 3253 2 Continental Equipment $104,216.00 3253 3 Equipment Support Services $142,240.94 3253 4 Equipment Support Services $ 93,962.66 3253 6 Holt CAT $199,361.00 3253 7 Holt CAT $177,572.00 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 on file in the office of the Purchasing Agent; 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 ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: "":' "' 3-ORD- Bid 3253 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities The Chair, Charldean Newell, informed the Board that Item # 10 would be discussed after Agenda Item #5. The Board would convene into a Closed session as follows: CONSENT AGENDA: 1) Consider approval of Bid No. 3273 to Montgomery Watson Harza Laboratories for the annual contract for Lab Service for Drinking Water Testing. 2) Consider approval of a Professional Services Agreement with Lloyd, Gosselink, Blevins, Rochelle & Townsend, P.C., Austin, Texas in an amount not to exceed $65,000 for legal services related to Denton Municipal Electric's (DME) updated Transmission Cost of Service (TCOS) case at the Texas Public Utilities Commission. 3) Consider approval of an Agreement for Professional Legal Services with the Law Offices of Jim Boyle, PLLC, Austin, Texas in an amount not to exceed $68,000 for representation of the City electric and water utility interests during the 79th Texas Legislative Session. 4) Consider approval of the purchase of a back-up emergency diesel powered generator for the operation ofwastewater facilities during a loss of power from American Generators, Miami, Florida for an amount not to exceed $47,500. Board Member George Hopkins moved to approve Consent Agenda Items #1-4, with a second from Board Member Dick Smith. The motion was approved by a vote of 7-0. Page 1 of 1 CITY OF DENTON PUBLIC UTILITIES BOARD MINUTES January 10, 2005 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, January 10, 2005, at 9:02 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, Dick Smith, Phil Gallivan, George Hopkins, Charldean Newell EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM/Utilities 6) Receive a report and hold a discussion regarding vehicle replacement criteria utilized by the City. Howard Martin, ACM/Utilities, reviewed the criteria that determine vehicle replacement. He explained that the criteria are based on estimated useful life; miles/hours the vehicle has been in operation and the amount of repairs. Each piece of equipment is evaluated on a 15-point scale. When the point total reaches 15 the vehicle meets the criteria for replacement. Martin also gave an explanation of the categories in the points system. The Motor Pool fund tracks the information on all vehicles and maintains funding for all equipment/vehicle replacements. Each department provides funding for the initial purchase of the equipment/vehicle in their operating budgets. Using estimated life, each department provides money to the Motor Pool Fund for replacement costs so that funds are always available to replace equipment in a timely manner. This was an information only item and required no vote by the Board. 7) Consider approval of Bid No. 3251 accepting competitive bids and awarding a contract for the purchase of fleet vehicles to the lowest responsible bidders in an amount not to exceed $412,434.00. Tom Shaw, Purchasing Agent, presented this item. Shaw also introduced Mike Ellis, the new Fleets Superintendent to the Board. Board Member Phil Gallivan moved to approve Bid No. 3251, with a second from Board Member Bill Cheek. The motion was approved by a vote of 7-0. 8) Consider approval of Bid No. 3253 accepting competitive bids and awarding a contract for the purchase of fleet heavy equipment to the lowest responsible bidder in an amount not to exceed $398,181.07. Page 1 of 2 Shaw also presented this item. Smith moved to approve Bid No. 3253, with a second from Board Member Bob Bland. The motion was approved by a vote of 7-0. 9) Consider approval of Bid No. 3279 for five refuse trucks, a motor grader, a skid steer loader, and five 3A ton 4 x 4 diesel pickup trucks for the Solid Waste Department, and a wheel loader and screener for the Beneficial Reuse division through a lease-purchase financing agreement to Chase Equipment Leasing, Inc. in an amount not to exceed $123,364.40. Shaw presented this bid. Bland moved to approve Bid No. 3279, with a second from Hopkins. The motion was approved by a vote of 7-0. The meeting was adjourned at 11:09 a.m. Charldean Newell, Chairperson Howard Martin, ACM/Utilities Lynn Pedrick, Secretary Page 2 of 2 AGENDA DATE: DEPARTMENT: CM/ACM/CA: AGENDA INFORMATION SHEET January 18, 2005 Legal Department Dorothy Palumbo, Senior Assistant City Attorney/Legislative Coordinator SUBJECT. - A resolution of the City of Denton, Texas adopting the City of D enton's 2005 State Legislative Program for the 79th Texas Legislature; providing a repealer; and providing an effective date. BACKGROUND. - The City Council has met in workshops, participated in legislative seminars and have had input from the city staff and various groups to develop the City of Denton's 2005 State Legislative Program. The main changes in the program since Council's adoption in November of 2004 are the addition of Denton's Highest Legislative Priority on page 6 and Photographic Red Light Legislation on page 12. Bills have been filed that would be detrimental to the city on these issues. We have been working with TML, other city lobbyists and the North Texas Commission Working Group to continue to urge the Texas Legislature not to adopt school finance reforms or tax changes that would negatively affect city revenues and economic development efforts. Late last week we received a copy of the Denton Independent School District Legislative Priorities, which is attached, hereto. Attached is a resolution adopting the City of Denton's 2005 State Legislative Program. OPTIONS. - The City Council may adopt the resolution and the City of Denton's 2005 State Legislative Program or direct staff to make changes and then adopt the legislative program as amended. Respectfully submitted, Dorothy Palul~nbo, Senior Assistant City Attorney/ Legislative Coordinator Denton Independent School District Legislative Priorities Executive Summar The Denton ISD supports the efforts of the Texas Association of School Boards, the Texas Association of School Administrators, and other educational agencies in the development of Core Principles on School Finance. The district fully supports these principles and encourages our elected officials to use the 79th session for the purpose of finding appropriate funds and formulas for public school education. Additionally the Denton ISD has identified the following legislative priorities that reflect local needs and concerns: Textbooks - The district supports legislation that provides appropriate funding and an efficient distribution and accounting system for textbooks and auxiliary materials. This system should provide a weighted distribution formula for fast growth schools and should consider the use of electronic alternatives and delivery systems. o Transportation -The district supports legislation that updates funding and increases services to students for school provided transportation. This update should occur each legislative session, reflecting actual transportation costs, and should include increased allotments and improved means of fund distribution for hazardous routes and special program services (i.e. special education, bilingual education, magnet programs, career and technology programs). This legislation should also change the current 2- mile regular education requirement for transportation services to t ½ miles. Election Dates - The district opposes legislation that would reduce the number of uniform election dates and/or reduces local discretion to hold a bond election on a non-uniform date. The district further supports local control for school boards to choose either a May or November election date and either three or four-year terms. Impact Fees - The district supports legislation giving school districts authority to assess impact fees or contributions in lieu of to developers of residential property. The district additionally supports legislation that would exempt school districts from requirements to pay impact fees assessed by local municipalities. Unfunded Mandates - The district opposes unfunded mandates and supports fully funding the actual cost of any requi.red programs and services. Recent examples of unfunded mandates passed by the 78tn Legislature include the requirements for the development of personalized graduation plans and the required medical screening for Acanthosis Nigricans. Current discussion requiring the use of graphing calculators for middle school TAKS tests would additionally become an unfunded mandate. 10. Use of Professional Organizations - The district opposes legislation that would limit the ability of professional organizations such as TASB and TASA to represent school boards and administrators as governmental/legislative liaisons. The district opposes legislation that would restrict the use of public school tax dollars to support these and similar professional organizations. Employee RetentionfRetirement - The district supports legislation that seeks to enhance and encourage employee retention in the public schools and in the TRS system. The district supports legislation that would reduce and/or restrict the return to work options that are detrimental to the TRS system. The district opposes legislation that would change the current retirement eligibility without enhancing the retirement benefits. Tax Base Protection - The district opposes legislation that grants further tax-exempt status to individuals and public/private organizations. The district supports legislation that would require Commumty Housing Development Organizations (CHDO) who use tax- exempt bonds for housing projects to pay full ad-valorem taxes, or fully equivalent contributions in lieu of taxation, to public schools. Vouchers and Charter Schools - The district opposes private-school vouchers, increased allotments of charter schools, virtual charter programs/schools, and other such programs funded with public tax dollars. Special Program Funding - The district supports legislation that restores and increases funding that directly affects student achievement and retention in the areas of Career and Technology Education, Bilingual/ESL Education, Special Education, and Compensatory Education. S:\Our Documents\Resolutions\05\Denton Final Legislative Program 79th session. DOC RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON, TEXAS ADOPTING THE CITY OF DENTON'S 2005 STATE LEGISLATIVE PROGRAM FOR THE 79TM TEXAS LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 79th Texas Legislature will commence on January 11, 2005; and WHEREAS, public school finance issues, general governmem, and many legislative issues affecting local governmem will be considered; and WHEREAS, the City of Denton desires to adopt its legislation program for the 79th Texas Legislature, attached as Exhibit "A", NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton's 2005 Legislative Program for the 79th Texas Legislation is adopted as set forth in Exhibit "A", incorporated herein and made a part of this resolution for all purposes. SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the state legislative program to members of the Texas Legislature. SECTION 3. The City Attorney, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and City staff and through other appropriate means. SECTION 4. That the Mayor, City Manager and the City Attorney, or their designees are directed to communicate to the members of the Texas Legislature and actively oppose any legislation which diminishes the City of Demon's home-rule authority or has a negative impact on the City of Demon's governmemal authority and City of Demon's ability to provide services to its citizens. SECTION 5. That all previous resolutions and orders or parts of resolutions or orders in force when the provisions of this Resolution become effective which are inconsistent or in conflict with the terms or provisions contained in this Resolution are hereby repealed to the extent of any such conflict. SECTION 6. This resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Demon and it is accordingly so resolved. S:\Our Documents\Resolutions\05\Denton Final Legislative Program 79th session. DOC PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 of 2 "Exhibit A" 2005 State Legislative Program State of Texas 79th Legislative Session As approved by the Denton City Council January 18, 2005 TABLE OF CONTENTS City of Denton Mayor and Council Contact Information City Manager, City Attorney and City Staff Contact Information Denton's Highest Legislative Priority · Continue to urge the Texas Legislature not to adopt school finance reforms or tax changes that would negatively affect city revenues and economic development efforts Erosion of Local Control over City Rights-of-Way · 3 4 6 Support TML in "seeking introduction and passage" of legislation that would require utilities in city rights-of-way to relocate at their cost for city construction projects and to impose financial penalties on utilities that fail to relocate. 8 Support TML in "seeking introduction and passage" of legislation that would limit the Public Utility Commission's (PUC) jurisdiction to ratemaking. 8 Tax and Finance Issues Oppose State initiatives that restrict a city's ability to fund necessary local services. · Oppose legislation that would reduce the current 10 % appraisal growth cap or impose revenue caps of any type. 8 · Oppose legislation that imposes a property tax freeze that can be implemented by any mechanism other than council action. 9 State Fees/Agreements in Lieu of Fees · Support legislation that repeals the drainage fee exemption for state entities. · Support legislation related to the cost of city infrastructure, fire and police services. 9 9 Regional Transportation · Support legislation that would permit cities to exceed the two-percent local sales tax cap for regional transportation revenue purposes. TML Resolutions proposed by the City of Denton · Support legislation that would provide for a method of road assessment damages or increased fees paid by heavy trucks in using city, county or state roads. 10 · Support legislation that would provide for funding options for maintenance and operation of city-owned or city/private partnerships for convention centers, including hotels. 10 · Support legislation that would automatically remove the ad valorem tax exemption, for Higher Education Authorities, or reduces the ad valorem tax exemption to the ratio of student occupation. 10 Retain Local Control over Development Issues and Fees · Oppose legislation that would erode city annexation authority. 11 · Oppose legislation that would erode city authority in the extraterritorial jurisdiction over annexation and special districts. 11 · Oppose legislation that will reduce or eliminate development fees, exactions or building permits. 11 City of Denton 2005 State Legislative Progra~ January 18, 2005 Page 1 Table of Contents (Page Two) Red Light Legislation · Oppose legislation that would restrict a city's ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. 12 Workers' Compensation Reforms · Support reform of workers' compensation law to control or reduce health care costs without putting injured employees at risk, including legislation that would create health care networks, improve back-to-work programs and establish other cost-reducing programs or procedures suggested by the Sunset Commission. 12 Financial Disclosure Requirements · Oppose the expansion of financial disclosure requirements beyond current law. 13 Uniform Election Dates · Oppose any changes to or elimination of uniform election dates. 13 Support Legislation that directly benefits University of North Texas and Texas Woman's University · Support full funding formulas for state universities and improved public education programs to to promote more college graduates. 13 Support Legislation that directly benefits Denton 1SD · Support increasing state funding for children with special needs, increasing the fiscal capacity of the school finance system and adding a factor to school funding for exempt state and federal property. 13 City of Denton 2005 State Legislative Progra~ January 18, 2005 Page 2 City of Denton City Council Members Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201 Voice Mail for all of Council 940-349-8555 Mayor Euline Brock 1900 Westridge Denton, TX 76205 E-mail: euline.brock~cityofdemon.com Office: 940-349-7717 Home: 940-382-2436 Cell: 940-391-4940 Fax: 940-381-0106 Council Member - District 1 Raymond Redmon 1029 E. Hickory Denton, TX 76205 E-mail: raymond.redmon~cityofdemon.com Office & Home: 940-323-2301 Cell: 940-390-9475 Fax: 940-323-2300 Council Member - District 2 Pete Kamp 110 Friar Tuck Circle DeNon, TX 76209 E-mail: pete.kamp~cityofdenton.com Office: 940-591-0308 Home: 940-566-5557 Cell: 940-390-9485 Council Member - District 3 Jack Thomson 1401 Amherst Dr. Denton, TX 76201 E-mail: j ack.thomson~cityofdemon.com Home: 940-382-5176 Cell: 940-390-2296 Mayor Pro Tem- District 4 Perry McNeill 1508 Gatewood Drive Denton, TX 76205 E-mail: perry.mcneill~cityofdemon.com Office: 940-565-2364 Home: 940-591-6080 Cell: 940-390-9463 Council Member - At Large Place 5 Bob Montgomery 2329 E. Windsor DeNon, TX 76209 E-mail: bob.momgomery~cityofdemon.com Home: 940-891-0051 Cell: 940-391-6545 Pager: 940-380-5140 Council Member - At Large Place 6 Joe Mulroy 124 Hollyhill Denton, TX 76205 E-mail: j oe.mulroy~cityofdemon.com Cell: 940-391-0049 Home: 940-382-3396 City of Denton 2005 State Legislative Progran~ January 18, 2005 Page 3 City Manager, City Attorney and City Staff The Denton City Council and staff would be glad to provide information, research issues and testify on the City of Denton 2005 Legislative Program. Municipal Offices: City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com Michael A. Conduff City Manager (940) 349-8307 Herb Prouty City Attorney (940) 349-8333 Kathy L. DuBose Assistant City Manager/Finance (940) 349-8228 Ed Snyder Deputy City Attorney (940) 349-8333 Howard Martin Assistant City Manager/Utilities (940) 349-8232 Jon Fortune Assistant City Manager/Public Safety and Transportation Operations (940) 349-8535 Sharon Mays Director/Electric Utilities (940) 349-8487 Betty Williams Director of Management and Public Information (940) 349-8302 If you or your legislative staff needs assistance from Denton or has any questions concerning Denton's legislative priorities, please contact: Dorothy Palumbo, Senior Assistant City Attorney/Legislative Coordinator (940) 348-8393, (940) 382-7923 FAX, or email: dorothy.palumbo~cityofdenton.com. John Cabrales, Public Information Officer (940) 349-8509, (940) 349-7444 FAX, or email: john.cabrales~cityofdenton.com City of Denton 2005 State Legislative Progra~a Page 4 January 18, 2005 Denton's Legislative Priorities The City of Denton has adopted the following legislative issues as priority issues for the 79th Legislative Session. The City Council of the City of Denton has met in workshops, participated in legislative seminars and has received information from city staff and various groups within the community to set these priorities. City of Denton 2005 State Legislative Progra~ Page 5 January l8,2005 Denton's Highest Legislative Priority Continue to urge the legislature not to adopt any school finance or tax system reforms that would negatively affect City revenues and economic development efforts. Background: The City of Denton during the 4th Special Session of the 78th Texas Legislature passed Resolution No. 2004-012 urging the Texas Legislature not to adopt any school finance reform or tax system changes that would negatively impact city revenues or economic development efforts. Bills have been introduced in the 79th Texas Legislature on this issue. The City of Denton continues to urge the legislature not to pass this legislation by adopting the following resolution: RESOLUTION NO. 2004-012 A RESOLUTION OF THE CITY OF DENTON, TEXAS, CONTINUING TO URGE THE LEGISLATURE NOT TO ADOPT ANY SCHOOL FINANCE REFORM OR TAX SYSTEM CHANGES THAT WOULD NEGATIVELY AFFECT CITY REVENUES AND ECONOMIC DEVELOPMENT EFFORTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on March 23, 2004, the City of Denton, Texas passed Resolution No. 2004-012 urging the Texas Legislature not to adopt any school finance reform or tax system changes that would negatively affect city revenues and economic development efforts; WHEREAS, the Texas Legislature was called into a Fourth Special Session and failed to pass school finance reforms; and WHEREAS, during the special session by the Texas Legislature, proposals to limit the ability of cities to collect property taxes and sales taxes were offered by some members of the Legislature; and WHEREAS, additional restrictions on city taxes fly in the face of a history of frugal tax administration by Texas cities; and WHEREAS, all Texas cities combined collect only 15.3 percent of all property taxes collected in the State of Texas, while schools collect more than 60 percent; and WHEREAS, between 1985 and 2002, the municipal share of all property tax revenue fell from 20.3 percent to 15.3 percent; and WHEREAS, Texas cities rely on tax revenue to build basic infrastructure, to ensure public safety through police and fire departments, and to provide numerous essential services for city residents, who are 80 percent of the state's population; and City of Denton 2005 State Legislative Progra~ January 18, 2005 Page 6 WHEREAS, Texas cities engage in numerous economic development activities that produce jobs and revenue for the entire State of Texas; and WHEREAS, cities must meet the challenges of homeland security and compliance with state and federal mandates many of which are unfunded mandates; and WHEREAS, Texas cities have shown over the years that they are fiscally responsible and good stewards to taxpayers' money; and WHEREAS, it is the City of Denton, Texas highest priority to continue to urge the Texas Legislature not to adopt legislation to limit the ability of cities to collect sales and property tax revenues or to set tax rates that would have severe negative impacts on city services, city employees, economic development efforts, and ultimately the citizens of the State of Texas; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the governing body of the City of Denton will continue to oppose all school finance reforms or tax system changes by the Texas Legislature that negatively impact the ability of the City to provide basic essential services, conduct economic development activities, and ensure public safety by limiting our ability, beyond the provisions of current law, to collect property tax or sales tax revenues. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 23ra day of March, 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: City of Denton 2005 State Legislative Progra~a Page 7 January 18, 2005 Erosion of Local Control over City Rights-of-Way Support TML in "seeking introduction and passage" of legislation that would require utilities in city rights-of-way to relocate at their cost for city construction projects and to impose financial penalties on utilities that fail to relocate. Support TML in "seeking introduction and passage" of legislation that would limit the Public Utility Commission's (PUC) jurisdiction to ratemaking. Background: Historically, most utilities were required by franchises and state law to relocate their facilities at their cost when the relocation was required for a public work's project. Some utility companies are arguing that Chapter 283 of the Texas Local Government Code (H.B. 1777) altered state law. Denton has experienced delay in public work's projects due to this confusion and a clarification of state law is necessary. There are no current federal or state laws that reduce the authority of cities to exercise police powers for the protection of the health, safety, and welfare of the public in connection with the use of city streets and rights-of way by telecommunication companies and other entities providing service. Cities may impose numerous kinds of regulation on entities that use the city's right of way. These regulations will withstand legal challenge because they are reasonably connected to protection of the health, safety, or welfare of the public. Denton opposes any new legislation that limits the ability of cities to control the right of way. Cities collect franchise fees as compensation for the use of the right of way. These fees reimburse the public for the use of the right of way. Denton opposes any legislation that limits cities' ability to collect franchise fees. TML has placed these issues in their highest category. Tax & Finance Issues Oppose State initiatives that restrict a city's ability to fund necessary local services. · Oppose legislation that would reduce the current 10 % appraisal growth cap or impose revenue caps of any type. City of Denton 2005 State Legislative Progra~ January 18, 2005 Page 8 · Oppose legislation that imposes a property tax freeze that can be implemented by any mechanism other than council action. Background: During the 4th Special Session, the City of Denton adopted a resolution that urged the Texas Legislature not to adopt school finance reforms that would adversely affect city revenues and economic development efforts. The city testified and wrote numerous letters during the session. The city continues to oppose state initiatives that restrict a city's ability to fund necessary local services. TML has also placed these issues in their oppose category. State Fees/Agreements in Lieu of Fees · Support legislation that repeals the drainage fee exemption for state entities. Background: During the 2003 regular session, the legislature enacted legislation that exempts state properties, state colleges and universities from paying municipal storm water utility fees. These state entities benefit from the flood prevention and storm water control provided by city storm water program. 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 ratepayers make up the difference. This issue was placed in TML's support category. · Support legislation related to the cost of city infrastructure, fire and police services. Background: TML adopted this legislative issue by the City of San Marcos. University communities bear the cost of providing city infrastructure, fire and police services. Universities make no direct payments to university communities. State law should expressly provide for state universities to enter into agreements in lieu of fees with cities in which they are located for the cost of infrastructure, fire and police services. TML placed this issue in their support category. Regional Transportation · Support legislation that would permit cities to exceed the two-percent local sales tax cap for regional transportation revenue purposes. Background: The City of Denton participates in the Regional Transit Initiatives, Regional Transportation Council and the Dallas Regional Mobility Coalition. The City of Denton 2005 State Legislative Progra~ January l8,2005 Page 9 City is also a founding member of the Denton County Transportation Authority. The city will urge the state legislature to amend state law to allow a region wide local option election to increase the sales tax cap, or to boost the gasoline tax on a regional basis, or provide any other funding source for regional transportation needs. TML placed this issue in their support category. TML Resolutions proposed by the City of Denton Support legislation that would provide for a method of road assessment damages or increased fees paid by heavy trucks in using city, county or state roads. 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 assessing road damages and imposing appropriate fees to be paid by heavy trucks using city, county or state roads. The resolution is written broadly enough to apply to all heavy trucks that damage city roads, not just those trucks related to gas well operations. TML placed this issue in their support category. Support legislation that would provide for funding options for maintenance and operation of city-owned or city/private partnerships for convention centers, including hotels. Background: Many Texas cities need funding for the construction, maintenance and operation of convention centers. State legislation is needed to allow funding for maintenance and operation, of city owned or city/private partnerships for convention centers, including hotels. TML placed this issue in their support category. Support legislation that would automatically remove the ad valorem tax exemption, for Higher Education Authorities, or reduces the ad valorem tax exemption to the ratio of student occupation. Background: Chapter 53 of the Texas Education Code permits a city to create a higher education authority or a nonprofit corporation to exercise powers similar to those of an authority. The nonprofit organization could formerly issue tax-exempt bonds to buy dormitories outside the city that created the corporation. Chapter 53 was amended last legislative session to require these authorities locate their facilities in the cities that created the authority. City of Denton 2005 State Legislative Progra~ Page 10 January l8,2005 However, existing authorities have already located these dormitories in cities other than the city that created them. These bonds financing the dormitories are sold to investors and are paid off from the rent from the dormitories. To qualify under the law, the dormitories must be rented exclusively to students or others officially connected with a university. The tax-exempt bonds must be approved by the state attorney general's office. Some cities that have created higher education authorities contend that facilities they have constructed or acquired outside their extraterritorial jurisdiction are not subject to local ad valorem property taxes. The City of Denton proposes removing or reducing the ad valorem property tax exemption if these facilities are not rented to students. TML placed this issue in their support category. Retain Local Control over Development Issues and Fees · Oppose legislation that would erode city annexation authority. · Oppose legislation that would erode city authority in the extraterritorial jurisdiction over annexation and special districts. · Oppose legislation that will reduce or eliminate development fees, exactions or building permits. Background: During the past five years Denton has allocated major staff recourses and spent significant sums on creating a development strategy, embodied in the Denton Plan, 1999-2020, and the Denton Development Code. Denton citizens do not want these efforts to be undermined by legislation eroding local control. The city needs to retain local authority over annexation, development fees, and building permits to implement these plans. Denton provides water and wastewater to its own citizens and also provides water and wastewater services through interlocal agreements with many smaller cities in Denton County. There are 12 fresh water supply districts in Denton County. The City of Denton has had problems with a fresh water supply district forming inside the city limits and had to file litigation. Fresh water supply districts frequently have substandard infrastructure and cannot serve the development that the district projected at build out. These systems are not required to bid competitively and are very expensive. Developers will often structure the debt to include a bond balloon payment. This balloon payment is usually due around the time the system is failing. Cities are then pressured to take over the district through annexation and are forced to spend City of Denton 2005 State Legislative Prograna January 18, 2005 Page 11 substantial sums to correct the problem. This is the same problem Houston faced in the early 80s. Denton will urge legislators to exercise caution when creating special districts and make sure that special districts notify and receive permission from cities before forming. Photographic Red Light Legislation Oppose legislation that would restrict a city's ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. Background. During the 2003 legislative session, SB 1184 passed and amended the Texas Transportation Code to all cities to use cameras at traffic lights and impose a civil penalty for running the red light. Each year in the United States more than 800 people die and over 200,00 are injured in crashes that involve running of a red light. Texas is ranked fourth in the nation for death rates in red- light crashes. In one Texas city that implemented right light photo systems, the Insurance Institute for Highway Safety reported a twenty-nine percent overall reduction in injury crashes. Other Texas cities have implemented this program. Denton is in the process of implementing the ordinance. Whether to implement this type of system should be a local decision that is made by the local government. Workers' Compensation Reforms Support reform of workers' compensation law to control or reduce health care costs without putting injured employees at risk, including legislation that would create health care networks, improve back-to-work programs and establish other cost-reducing programs or procedures suggested by the Sunset Commission. Background. The House Business and Industry Interim Committee is studying this issue along with Representative Burt Solomons, who is the chair of the Sunset Advisory Commission. Denton supports these reforms to contain the costs of workers' compensation. TML has placed this issue in their support category. City of Denton 2005 State Legislative Progra~a Page 12 January l8,2005 Financial Disclosure Requirements · Oppose the expansion of financial disclosure requirements beyond current law. Background. H.B. 1606 passed last legislative session late in the last day of the session with a provision added on in conference committee to apply financial disclosure requirements to cities over 100,000 in population. This bill as sent to the committee applied only to cities over 350,000. Denton opposes any changes to financial disclosure requirements. TML has placed this issue in their "oppose" category. Uniform Election Dates · Oppose any changes to or elimination of uniform election dates. Background. H.B. 1549 (2003 regular session) moved the May general election date from the first Saturday to the third Saturday. During the 3rd special session this legislative issue was a TML priority, since moving May elections to the last Saturday would create significant problems for many Texas cities. Legislation sponsored by Representative Denny and Senator Nelson passed, returning the May election date to the first Saturday in May. Denton opposes any modification of the uniform election dates. TML has placed this issue in their "oppose" category. Support Legislation that directly benefits UNT and/or TWU · Support legislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city's interest. Support Legislation that directly benefits Denton 1SD · Support legislation that directly benefits Denton 1SD, if such proposals do not adversely affect the city's interest. City of Denton 2005 State Legislative Progra~ Page 13 January 18, 2005 AGENDA DATE: DEPARTMENT: CM/DCM/ACM: AGENDA INFORMATION SHEET January 18, 2005 Legal Dorothy Palumbo, Senior Asst. City Attorney/Legislative Coordinator SUBJECT Resolution of the City of Denton, Texas continuing to urge the Legislature not to adopt any school finance reform or tax system changes that would negatively affect city revenues and economic development efforts; and providing an effective date. BACKGROUND The Texas public education system faces severe challenges. The current school finance system relies too heavily on local property taxes. Already, half of the 1,100 school districts levy taxes at or near the statutory cap of $1.50 for Maintenance and Operations. On March 23, 2004, the City of Denton, Texas passed a resolution urging the Texas Legislature not to adopt any school finance reform or tax system changes that would negatively affect city revenues and economic development efforts. The Texas Legislature was called into a Fourth Special Session and failed to pass school finance changes. During the special session by the Texas Legislature, proposals to limit the ability of cities to collect property taxes and sales taxes were offered by some members of the Legislature. Bills have already been filed that negatively impact city revenues and economic development efforts. Please see the attorney status report for additional information. OPTIONS 1. The City Council may pass the resolution or direct staff to add or delete certain provisions and then pass the resolution; or 2. The City Council may decline to adopt the resolution. FISCAL IMPACT This legislative effort will help to preserve city revenues. Respectfully submitted: Dorothy Palumbo Senior Assistant City Attorney S:\Our Documents\LegislationhA[S School Finance Reforms 2005.doc S:\Our DocumcnLs\ResoluLions\05\Oppose Sch Finance-Tax Sys Relbrms.doc RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON, TEXAS, CONTINUING TO URGE THE LEGISLATURE NOT TO ADOPT ANY SCHOOL FINANCE REFORM OR TAX SYSTEM CHANGES THAT WOULD NEGATIVELY AFFECT CITY REVENUES AND ECONOMIC DEVELOPMENT EFFORTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on March 23, 2004 the City of DeNon, Texas passed Resolution No. R2004-012 urging the Texas Legislature not to adopt any school finance reform or tax system changes that would negatively affect city revenues and economic development efforts; WHEREAS, the Texas Legislature was called imo a Fourth Special Session and failed to pass school finance reforms; and WHEREAS, during the special session by the Texas Legislature, proposals to limit the ability of cities to collect property taxes and sales taxes were offered by some members of the Legislature; and WHEREAS, additional restrictions on city taxes fly in the face of a history of frugal tax administration by Texas cities; and WHEREAS, all Texas cities combined collect only 15.3 percem of all property taxes collected in the State of Texas, while schools collect more than 60 percent; and WHEREAS, between 1985 and 2002, the municipal share of all property tax revenue fell from 20.3 percent to 15.3 percent; and WHEREAS, Texas cities rely on tax revenue to build basic infrastructure, to ensure public safety through police and fire departmems, and to provide numerous essemial services for city residents, who are 80 percent of the state's population; and WHEREAS, Texas cities engage in numerous economic development activities that produce jobs and revenue for the emire State of Texas; and WHEREAS, cities must meet the challenges of homeland security and compliance with state and federal mandates many of which are unfunded mandates; and WHEREAS, Texas cities have shown over the years that they are fiscally responsible and good stewards to taxpayers' money; and WHEREAS, it is the City of Demon, Texas highest priority to cominue to urge the Texas Legislature not to adopt legislation to limit the ability of cities to collect sales and property tax revenues or to set tax rates that would have severe negative impacts on city services, city employees, economic developmem efforts, and ultimately the citizens of the State of Texas; NOW, THEREFORE, S:\Our DocumcnLs\ResoluLions\05\Oppose Sch Finance-Tax Sys Relbrms.doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the governing body of the City of Demon, Texas will cominue to oppose all school finance reforms or tax system changes by the Texas Legislature that negatively impact the ability of the City to provide basic essemial services, conduct economic developmem activities, and ensure public safety by limiting our ability, beyond the provisions of current law, to collect property tax or sales tax revenues. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERB PROUTY, CITY ATTORNEY BY: Page 2 of 2 AGENDA DATE: DEPARTMENT: CM: AGENDA INFORMATION SHEET January 18, 2005 City Manager's Office Mike Conduff, City Manager SUBJECT Consider nominations/appointments to the City's Boards and Commissions. BACKGROUND The following is a list of current board/commission vacancies: Planning and Zoning Commission - Bob Powell has resigned. This is a nomination for Council Member Redmon. Construction Advisory and Appeals Board - Jimmy Polozeck has resigned. This is a nomination for Council Member Mulroy. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary S:kAgenda Items\Board-Commission vacancies.doc