Loading...
HomeMy WebLinkAboutJuly 26, 2005 Agenda AGENDA CITY OF DENTON CITY COUNCIL July 26, 2005 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, July 26, 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: 1. Receive a report, hold a discussion, and give staff direction regarding a Denton County offer to collect taxes. 2. Receive a report, hold a discussion, and give staff direction regarding proposed changes to Chapter 6, Section 27 of the City of Denton Code of Ordinances dealing with livestock. 3. Receive a presentation on the potential applicability of Bioreactor Technology at the City of Denton landfill. Information will be provided on the projected capital and operational costs. 4. Requests for clarification of consent agenda items listed on the consent agenda for today's City Council regular meeting of July 26,2005. 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: A. Consultation with Attorney - Under Tex. Gov't Code 551.071 1. Discuss with the City's attorneys legal issues associated with the request of JNC Partners Denton, LLC, to consent to the creation of a Water Control District at the Craver Ranch, located within the City's extraterritorial jurisdiction where to discuss these legal issues concerning the above stated matters with attorneys in public would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and would jeopardize the City's position in administrative proceedings or in potential litigation. 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 9551.086 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, 9551.001, 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 9551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. City of Denton City Council Agenda July 26, 2005 Page 2 Regular Meeting of the City of Denton City Council on Tuesday, July 26, 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 A. U.S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one and indivisible." 2. PROCLAMA TIONS/PRESENTA TIONS A. Proclamations/Awards B. Recognition of staff accomplishments 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent 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 Consent Agenda (Agenda Items A - N). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A - N 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. A. Consider adoption of an ordinance providing for the sale of real property located at 634 E. Prairie Street as a part of the City's Infill New Construction Program for affordable housing for sale to low-moderate income buyers; and providing for an effective date. B. Consider adoption of an ordinance of the City of Denton, Texas approving an agreement between the City of Denton and the Denton Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source in accordance with the provisions of the State law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3362 - Agreement with the Denton Record Chronicle in the amount of $8.00 per column inch for an estimated award of $33,000). C. Consider adoption of an ordinance approving the expenditure of funds for the purchase of the Caterpillar Computer Aided Earthmoving System (CAES) software package available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3363 - Purchase of a Computer Aided Earthmoving System to Holt CAT in the amount of $74,620). The Public Utilities Board recommends approval (5-0). City of Denton City Council Agenda July 26, 2005 Page 3 D. Consider adoption of an ordinance of the City of Denton accepting competitive bids and awarding a three year contract for traffic signal construction for the City of Denton Traffic Division; providing for the expenditure of funds therefor; and providing an effective date (Bid 3340 - Three Year Contract for Traffic Signal Construction awarded to lowest responsible bidder, Durable Specialties, Inc., in the annual estimated amount of $100,000). E. Consider adoption of an ordinance of the City of Denton accepting competitive bids and awarding a contract for galvanized steel structures for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 3323 - Galvanized Steel Structures for Hickory Substation awarded to lowest responsible bidder, LeHigh Utility Associates, Inc., in the amount of $66,616). The Public Utilities Board recommends approval (5-0). F. Consider adoption of an ordinance of the City of Denton, Texas, providing for the renaming of certain sections of West Prairie Street, Avenue A and Chestnut Streets which run adjacent to the UNT Parking Garage, Baptist Student Union and University Union to "Union Circle" with a street address designation of "One Union Circle", providing for an effective date. The Historic Landmark Commission Recommends approval. G. Consider approval of a resolution of intent of the City of Denton, Texas, to enter into an interlocal cooperation agreement for the sale and purchase of assets related to LINK Public Transportation Service from the City of Denton to the Denton County Transportation Authority; and providing an effective date. H. Consider adoption of an ordinance approving an assignment of a gas well surface use agreement at the Denton Municipal Airport between the City of Denton, Texas and Dan A. Hughes Company, LLC as Assignor and Stroud Energy; Ltd. As assignee; and providing an effective date. The Airport Advisory Board recommends approval (6-0). I. Consider adoption of an ordinance approving an Alternative Development Plan for approximately 30 acres located in Neighborhood Residential Mixed Use (NRMU) zoning district. The proposed site is generally located east of Nottingham Drive, between University Drive and Mingo Road. The purpose of the Alternative Development Plan is to deviate from the requirements of Subchapter 13 of the Development Code. The Planning and Zoning Commission recommends approval (5-0). (ADP05-0003, Denton Bible Church) 1. Consider adoption of an ordinance authorizing the City Manager to execute a professional services agreement with R.I. Covington Consulting, LLC for consulting services relating to Task Order No. 05-F; providing for services related to final completion of the transmission cost of service case before the Public Utilities Commission of Texas; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval ( 5-0). City of Denton City Council Agenda July 26, 2005 Page 4 K. Consider adoption of an ordinance authorizing the City Manager to execute a Water Main Pro-Rata Reimbursement Agreement between the City of Denton, Texas and Pat Powell 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 Public Utilities Board recommends approval (5-0). L. Consider adoption of an ordinance approving a Right-Of-Way Use and Encroachment Agreement between the City of Denton and the University of North Texas to allow boring under existing City public utility easements and public right-of-way that will accommodate the installation of Electric Facilities between University of North Texas properties located on the east and west sides of Bonnie Brae Street; and providing an effective date. M. Consider the adoption of an ordinance approving a Real Estate Contract by and between Aaron Baltazar, Ltd., a Limited Partnership, as seller, and the City of Denton, Texas, as Purchaser, regarding a 1.46 acre tract ofland located in the T. Toby Abstract No. 1288, City of Denton, Denton County, Texas, and being shown as Lot B, Block C, of the La Hacienda Heights, Phase I Final Plat, authorizing the expenditure of funds and providing an effective date thereof. The Public Utilities Board recommends approval (5-0). N. Consider appointments to the following boards and commissions: 1. Airport Advisory Board 2. Animal Shelter Advisory Committee 3. Community Development Advisory Committee 4. Construction Advisory and Appeals Board 5. Historic Landmark Commission 6. Human Services Advisory Committee 7. Library Board 8. Parks, Recreation and Beautification Board 9. Planning and Zoning Commission 10. Public Utilities Board 11. Traffic Safety Commission 12. Zoning Board of Adjustment 4. PUBLIC HEARINGS A. Hold the second of two public hearings to consider annexing approximately 244 acres into the corporate city limits of the City of Denton, Texas. The property is generally located south of Mingo Road and both sides of Collins Road in the eastern section of the City of Denton Extraterritorial Jurisdiction (ETJ). (A05- 0001, Ash Grove Cement Distribution Center) B. Hold a public hearing and consider adoption of an ordinance granting approval of a Public Utility and Drainage Easement of 0.081 acres for a subsurface use of a portion of the Denton Branch Rail Trail near Mile Post 724.8 for the purpose of a wastewater and stormwater sewer pipeline in accordance with Chapter 26 of the Texas Parks and Wildlife Code; providing for the issuance of an easement; and providing an effective date. The Parks, Recreation and Beautification Board recommends approval (5-0). City of Denton City Council Agenda July 26, 2005 Page 5 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider approval of a resolution nominating a member to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. B. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a Settlement Letter Agreement with TXU Electric Delivery accepting the settlement between TXU Electric Delivery and the Steering Committee of cities served by TXU Electric Delivery; and providing an effective date. C. New Business This item provides a section for Council Members to suggest items for future agendas or to request information from the City Manager. D. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda E. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. F. 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 Denton, 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 IMP AIRED 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: July 26, 2005 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose & .. SUBJECT Receive a report, hold a discussion, and give staff direction regarding a Denton County offer to collect taxes. BACKGROUND The Denton County Tax Office, specifically, Steve Mossman, has offered to perform tax billing and collection services for the City. The costs and benefits associated with this offer have been reviewed and are outlined in the attached memorandum. The comparative information provided includes any customer service impact to City of Denton taxpayers, collection reporting and administrative practices, as well as, cost of operations. Upon a compare and contrast review, several differences between the City and County Tax Office operations were observed. More significant observations impact the citizens of Denton. The City provides many more locations and different methods for accepting payments. Another significant consideration is the availability and accessibility to the tax system and updated information by stakeholders, including businesses, mortgage companies, delinquent tax attorneys, other City departments, potential newcomers, etc. The City's cash flow would be impacted by the additional days the County is not available for conducting business. The County Tax Office closes for several weeks from mid-September to mid-October every year for preparation of tax bills. In addition, the County observes twelve holidays annually while the City observes nine per year. Combined billing may portray a negative image when other taxing jurisdictions' levy amounts are included and/or when other jurisdictions change their tax rates. The City has an established cashiering and customer service function, which must function regardless. The ongoing expenses would shift to the utility ratepayers because Customer Service would not go away or substantially downsize as a result of a change in the site for tax billing and collection. The costs associated with modifying data provided by the Denton Central Appraisal District will continue to be required and paid by the City. Regardless of which entity performs the billing and collection function, most tax department duties will continue to be required by the City for customer service, management of data, generation of reports, various impact analyses, etc. The biggest impact is the reduction in customer service and unavailability of updated information for citizens, businesses and other City departments for minimal savings. Agenda Information Sheet July 26, 2005 Page 2 FISCAL INFORMATION The current fiscal year financial comparison between the City and County Tax Office operations is approximately $30,000 greater for the City. This amount is projected to substantially decrease in the upcoming budgets, i.e., 2006-07. Respectfully submitted: '~- .., 'I t , ~' Diana G. Ortiz Director of Fiscal Operations MEMORANDUM DATE: July 20,2005 TO: Mike Conduff, City Manager FROM: Diana G. Ortiz, Director of Fiscal Operations RE: County Proposal - Property Tax Billing and Collection The costs and benefits associated with contracting with Denton County for property tax billing and collection services have been reviewed. This feasibility analysis has been conducted several times in the past and continues to be updated with the latest information. Comparative information includes customer service impact to our citizens, collection reporting and administrative practices and cost of operations. An Executive Summary is provided below. Customer service impact to our citizens: The City currently provides more collection avenues for receiving tax payments including cashiering at City Hall East, cashiering at City Hall in the Mall, kiosk at City Hall in the Mall, mail, as well as, credit card payments on the City's website and payments by phone. The County only accepts tax payments by credit card over the internet. (Impact: Service and convenience available to taxpayers developed by the City in response to taxpayer demand will be lost.) The City's hours of operation are significantly greater than the County's. The City's include the following: 8:00 a.m. to 5:00 p.m., Monday through Friday at City Hall East, 10:00 a.m. to 7:00 p.m., Monday through Friday, 10:00 a.m. to 3:00, Saturday at City Hall in the Mall (cashiers), 10:00 a.m. to 9:00 p.m. Monday through Saturday at City Hall in the Mall (kiosk), 12:00 a.m. to 6:00 p.m. Sunday at City Hall in the Mall (kiosk). The County is available between 8:00 a.m. to 4:30 p.m., Monday through Friday. The City provides updated, 24-hour account information service via the Internet and Integrated Voice Response (IVR) System that includes seven years of historical information including levy amount, legal description, owner, taxable amount, payment history and amount due. The County system does not provide access to historical information for current levies. (Impact: Loss in levels of service without control over any changes in future levels of service.) 1 The City does not charge a transaction fee for credit card payments. The County passes their fee on to the taxpayer. (Impact: Taxpayers must pay more.) Account information can be quickly and easily transmitted to users, i.e., delinquent tax attorney, mortgage companies and tax service organizations. County system causes periodic major delays in access to current information to system users. (Impact: e.g., Posting of payments to individual, customer accounts fall weeks behind during County "busy" seasons where City postings are timely.) Taxpayers do not have access to the County Tax Office on three additional holidays they observe, Veteran's Day, Presidents' Day and Good Friday. The City collected a total of approximately $78,000 for those three days this fiscal year. The City operates an integrated imaging system that provides electronic images of all checks and correspondence between the City and the taxpayer. (Impact: Loss in level of service to taxpayers.) Lost value to taxpayers and other customers related to eliminated or reduced levels of service, although significant, cannot be quantified. Collection Reportin2 and Administrative Impact: The City provides an "on-line, real-time" system which allows instant updating, reporting and exporting of information via electronic media (CD, e-mail, disk, internet). The County works in a main frame, batch system environment that requires batch processing to update account information. (Inefficiencies throughout the assessment, collections, and recording system degrading usability of information, access to updated information by taxpayers and City, transfer of information which slows updates and timelines of tax information.) Lack of accessibility to updated tax records by other City departments, specifically for GIS drainage fee analysis, building inspections and permitting. (Impact: Inefficiency in access to tax-related information throughout the organization that is now available in real time. ) Questionable availability and responsiveness for report requests. The City's tax system and data are currently used to generate many, various types of reports for numerous departments. County reports are formatted as they deem appropriate based on numerous taxing entity's needs rather than to address City of Denton specific needs. (Impact: Delay due to non-usability of information even after provided, versus current 100% reporting flexibility in real time.) The collection rates for the City and the County are relatively the same; however, the collection rate for Denton ISD is lower. Taxes for DISD are collected by the County's Tax office. 2 By the end of January, before accounts became delinquent on February 1, the City, School and County collected 82%, 70.7% and 72.1 %, respectively, of their current levies. Therefore, interest income generated from those earlier collections is maximized. Lack of control by the City. (Impact: Existing contracts state price may increase at County discretion, with no practical alternative once the City Tax Office and supporting systems are dismantled.) The City is able to perform independent analyses based on current, up-to-date tax data to project the financial impact resulting from numerous legislative proposals. The County observes twelve holidays annually and the City observes nine a year. Therefore, the City's cash flow is impacted by the additional days the County would not be available for collections. Financial Impact Considerations: Regardless of which entity performs the billing and collection function, most tax department duties will continue to be required by the City for customer service, management of data, generation of reports, various impact analysis, etc. The City has an established cashiering and customer service function, which must function with or without in house tax billing and collections. Most of the ongoing expenses would be transferred to the utility ratepayers because Customer Service would not go away or substantially downsize as a result of a change in the tax billing and collection site. The costs associated with modifying data provided by the Denton Central Appraisal District will continue to be required and paid by the City. The City prepares and mails tax bills by October 1 of each year. The County Tax Office closes for several weeks from mid-September to mid or late October every year for preparation of tax bills. The City had already collected $1,050,000 by October 28,2004, the date when taxpayers first received their County tax bill. (Impact: "Opportunity Cost" related to expedited collections.) Also, the closed County Tax Office and unavailability of tax data adversely affects customer service during these weeks when up-to-date tax information is inaccessible. The City's current tax bills indicate the amount of property tax savings generated by the half-cent sales tax for the reduction of property tax. On a combined tax statement, it may be difficult to highlight this as a City initiative. Taxpayer perception of a smaller, segregated tax bill amount for the City compared to a larger, combined amount incorporating the County and School District. 3 Combined billing may portray a negative image when other taxing jurisdictions' levy amounts are included and/or when other jurisdictions' change their tax rates. A possible negative ramification may result from a rollback election of another taxing entity. The current financial comparison between the City and County Tax Office operations is approximately $30,000 greater for the City. Much of this amount would shift to the City's utility ratepayers, thereby greatly reducing any savings. The biggest impact is the reduction in customer service and unavailability of updated information for citizens, businesses and other City departments for minimal savings. I am available to discuss the information provided at your convenience. If you need additional information, please advise. Attachments: Comparison of Collections Collection Rate Comparison (10 year history) Collection Cost Comparison June 29, 2005 Letter from Steve Mossman January 11,2002 Memorandum October 4, 1996 Memorandum H:\Tax Collection Analysis.doc 4 rJ) z o i= (.)10 WO .....~ ""'1 o~ (.)0 LL.N o ~ z CI> 0>- rJ) m ~ ~ <( .- 1l.LL. :E o (.) (o~Mr::-cDCO~;:-OO~o)~M OlC'?COI'-""'CO~""''''''I.{)'''''NC'?1'- t)OlU""''''''I'-'''''O)O)O)O)COCOCOCON (1)Ea;~~~~--------~ d; 0 .... ~ _uJ!:! .=.=.... Ci c !:!2 z o .... z w c .... o ~ c U c 0 -c.s~ $C~ I'll Ol - E C 0 ;l U UI W z o .... z w c u. o ~ u o .- "C ~"O Q; <( 1:: .- 0>- 0.. - C'? I'll~ - -0) UI UI ~ Cl $ .!: .= E I'll W COCO""'o)COI'-""'NC'?~I'-N ~""''''''~~NI'-I.{)OOl.C)1'- COI'-CONNl.C)I'-~""'l.C)I.{)N N- ~- ~- 0)- 0 0 0 ~- ~ T"""'- ~- c0 ~C'?C'?""''''''"",,,,,,,,,,,,,,,,,,,,,I'- C'? ""'C'?No)O~ON""'o)COI.{)CO C'?l.C)I'-NO)C'?NCOCOCOCOO)O l.{)~o)~OI.{)COCOI.{)~I.{)NC'? c0 cD LO ro CO- oi N N 0 ro r-.: ro oi C'?C'?C'?I.{)C'?CO l'-C'?o)N""'NCO 'VOOL{)'Vc.oLO~"r"'"""r"'"""r"'"" "r"'"" -.i'o-.i' N ~ N ~l.C)I.{)I.{)COCOCOCOOCOo)NC'? CUlC'?~OC'?~""'NO)l.C)NC'?~O t/)C~o)I'-OI.{)C'?o)C'?COI.{)C'?I'-N - 0 cO' "",- N- -.i' r-.: 0 cO' oi co- oi ....: LO LO C;lN~I.{)COo)C'?COCO""'CO~No) OUo)l'-~""'I.{)I.{)I'-I.{)COI.{)N~"'" 'E~"":c0ocO'oN ro OlO N""'N 0) CU cJ??ft.~cft'#.cft?ft?ft?f2.?f2.?f!.'#. N~No)l'-C'?I'-O)I.{)I'-~C'? 6 ~":'<'";~~~I'--;~cq~C'!'<'"; ;lOl~C'?OCOONOOOOOO u- N""'N ~~ "0 U o)COO~CO""'OI.{)OOO~"'" _Ul""'o)No)COC'?I'-~~l.C)C'?O)"'" UlClC'?OI.{)O~"-""'I'-ONC'?C'?l.C) ~ C N"",-"",-cO'O"":"":"":NNN-NO Ol'e ~C'?""''''''''''''''''''''''''''''''''''''O) - ~ C'? .=&: C'?NCOI.{)OO)""'COOlCONNI'- NCOI.{)ONI.{)~COo)C'?O)COC'? UI"-C'?CO~..-..-I.{)Nl.C)""'CO~"'" _ C LOror-.:rocDN-cO''''':roNro'''':cO' 1'll0~l.C)1'-C'?0""'COC'?""'NC'?C'?0) ::s+:i"r"'""OJ"r"'""C'0LOLO"r"'"""r"'"""r"'"""r"'"" 'r"'"" o~~ l.C)-"":N- N <(-..- N "0 U ?ft?f2.?f.?ft.cf!.?f2.?f2.*?f!.?f!.?f2.?f2. C l.C)~I'-ON~C'?COCO""'I'-"'" o o)COO)C'?'<'";""'COI.{)COl.C)~~ ;lOl-.iCV)NO~N666666 u- Nl.C)~ ~~ "0 U ?f2.cf2,?f!.cf!.cf2.cf2.?f2.?f!.cf2.?f!.?f2.cf2. COCOI'-""'C'?COo)O~~~N ""''''''C'?N~C!~N'''''C'?'''''''''' NNNNNNNNNNNN ,-llll CC ~EEro~.c o W W ::l '- U t5iJ~c-al(;j OZO~LL:2: '- W .0 u; E ::l W '- >, W >, OJ a.. '-roC-::lW ~:2:-=;-=;<(CI) ~ N ""'- N "'" l.C)_ N N "'" 0) cq, N l.C) ~ o o ~ -;:R. o "'" ~ co 0) ~ N ""'- N "'" l.C). N N -;:R. o I'- "<l: co 0) "'" ,-,-0 00 (fJ~ roO >,~ >0) W .....I >: c ::l o () C o C W o >, .0 "0 W t5 ~ (5 ~ Cll ro '- C .Q t5 ~ (5 U W Cl ~ Cll > <( "C C ro :>; C ::l o () C o C W o o CI) o ro "C Q) '>. C W E u; W > .~ C o C Cll o '-'- o ~ () C o "0 W (fJ ro co ~ en z o i= () W ...J ...J o () LL o Z o en ii2 <( a. == o () It') o o ~ '<t o o N ... ell Gl >- n; (.) VI ii: Gl <.0 N Ol I!) '<t ~ <D '" N '" I'-- Ol I!) - Gl (.) ~ <.0 I'-- <.0 <.0 <.0 0 I'-- I'-- I!) ~ ~ CO VI E I: I!). <.0_ 0 1'--. q ~ 0_ ~ e?- e?- '" 2! Gl :s :s ~ ~ :s :s cO .l!! 0 ~ ~ (.) .E .E i5 :€ '" I'-- N <.0 N '" V '" CO I'-- '" N Ol '" '" V N N I'-- <.0 V '" Ol ~ I'-- I!) -;; CO V v_ "'- ~ ~ v. I'-- ~ "'. ~ ~ VI N ~ ~ m 0 0 0 ~ ~ ~ ~ N 2! Cl ~ '" '" V V '<t V V I'-- .l!! I: '" .c .E ... 2 ell III W c:: I: ... I: V <.0 N '<t co I'-- N V 0 0 0 0 Oi Oi 00 N .2 ~:;:; N N N co <.0 0 I'-- co ~ <.0 1:) I!) I'-- <.0 co. o. I'-- co_ ~ v ~ I!) co <.0 V U~ I.() eD M U; ~ 0 ~ m m N. eD m cO N ..s! Ol co I'-- I'-- 0 <.0 V Ol '" I!) N 0 V "0 'tl "0 '" I'-- '<t '<t. I'-- <.0 ~ ~ ~ ~ N I!). .l!! () ..,r 0 ..,r N N () ~ N N Gl ell I: .5 0 Cl - III -;; I: .. Gl Gl W C ~ >f!. >f!. ~ ~ >f!. ~ >f!. >f!. ~ >f!. >f!. >f!. ~ I: 0 0 0 0 0 0 0 0 'tl 0 I!) Ol I!) I'-- <.0 I'-- N <.0 co Ol I!) '" N Gl ~ Gl f'-; V co '? ~ <.0 I'-- <.0 co I!) N ~ I!) 'tl 1; ~ c<i cri <.0 N N 0 0 0 0 0 0 cO I: ..s! ~ '<t Ol Gl c:: iii "0 () <.0 '" I!) '" N ~ co '<t <.0 Ol '<t '<t ;::- Gl Ol '<t co co <.0 0 <.0 0 co I!) 0 0 Ol - Gl (.) I!). ~ '" q ~ q q 0_ e?- e?- e?- e?- '<t VI E I: :s :s ~ e :s :s :s :s m 2! Gl ~ 0 ~ .l!! (.) .E .E i5 :€ '" <.0 I!) co '<t 0 N ~ '<t Oi I!) co I'-- I!) I!) '" 0 N '" 0 ;::: N N co '<t - I'-- N ~ q 0 ~ '<t ~ "'. I!). ~ 0_ VI VI N m 0 0 0 Gl Cl ~ ~ ~ ~ ~ ~ ~ ... I: ~ '" '" '<t '<t '<t '<t '<t '<t I'-- Gl '" :E 'E ell w ... I!) co ~ '" co I!) '" N '<t 0 I!) I'-- N ~ 0 U; Ol I'-- I!) I'-- 0 Ol co 0 '" ~ <.0 ~ N ~ I: N C\[ <.0. 0 q (J) <.0 '<t o. <.0 '<to 0 '<t U I: .2 r--: r--: ~ I!) eD N 0 I.() cO <.0 I.() ~ cO N .8 I!) '" ~ '<t 0 '" I!) <.0 0 '" <.0 '" '<t '<t 'tl 1:) '" I'-- '<t '<to Ol <.0 ~ ~ N ~ N I!) .l!! I: ..s! ..,r 0 ..,r N N ~ Gl ell C "0 ~ N N Z ~ U ::l VI 0 W () Z '<t N C; Ol 0 0 I'-- I'-- Ol 0 0 I'-- <.0 I!) ~ '<t <.0 '" 0 ~ '" N I!) <.0 Ol <.0 co I'-- 0 VI <.0. '" <.0 "C ~ o. I'-- I'-- N co I!) I'-- <.0 l- I: ~ ..,r 0 0 N ~ m M cO I.() cO ..,r 0 N z ::l I: 0 co <.0 '" <.0 0 '<t 0 I!) Ol '" ~ 0 I'-- W 0 0 "'. <.0 0 q co '" I!) <.0 I'-- '<t N ~ O. 0 C U :;:; N eD r--: N N (.) ~ co 00 I: ..s! ~ '" ~ co .8 "0 I: U Gl C ~ ~ >f!. ~ 'if. ~ ~ ~ ~ >f!. >f!. >f!. >f!. 0 0 0 0 0 I: Ol I'-- I'-- '<t <.0 0 I'-- '" N 0 Ol '<t Ol .2 "' N I!) '" f'-; co <D I'-- Ol 1.0 N ~ <.0 1:) .l!! ~ c<i cri <.0 N N 0 0 0 0 0 0 cO ~ '<t Ol ..s! ell "0 c:: () COLLECTION RATE COMPARISON As of September 30 Entity 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Denton County City of Denton Denton ISO 100.00010 99.00010 98.00010 97.00010 96.00010 95.00010 98.85% 98.89% 98.89% 98.87% 98.89% 98.70% 98.60% 98.24% 98.53% 98.69% 98.65% 98.88% 98.56% 98.40% 98.75% 98.78% 98.21% 98.30% 98.57% 98.50% 98.50% 98.56% 98.04% 98.10% 98.28% 98.33% 97.14% 97.69% 98.25% 98.34% * ~ W ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I--+- Denton County - City of Denton ----.- Denton ISO I 7/20/2005446 PM COLLECTION COST COMPARISON Fiscal Year 2004-2005 Statement Preparation October Billing October Mortgage Billing (billing done bye-mail rpt) Monthly Supplemental Billing Delinquent Billing May Billing Accounts 24,342 10,181 2,500 3,500 2,500 Other Expenses Personal Services Tax Analyst II Tax Analyst I Postage Copy Charges Supplies Commercial Insurance Self Insurance Premium Transfers & Services Tech Services Transfer Tax System Reprographics Tax Analysis, Laserfische. Computers, etc. Customer Service Transfer Tax Transactions Misc. Transactions Lock Box Services Services (phones, advertising, licenses, etc.) Total Expenditures FOREGONE REVENUE (Opportunity Cost) Interest Income Tax Roll Processing Fee Tax Certificates (1) (2) Tax Dept Budget Tax Dept Budget with County with Current Out-Sourcing Utility Customer of Tax Billing Service & Collections Collections $ 15,822 $ 1,217 6,618 125 - 175 1,625 125 $ 24,065 $ 1,642 56,048 56,048 25,505 25,505 3,000 9,000 3,000 3,000 5,300 2,842 2,842 1,117 1,117 25,000 33,897 7,339 7,339 32,997 32,997 50,000 22,853 9,500 7,343 7,343 $ 188,255 $ 268,383 $ 212,320 $ 270,025 $ 18,385 8,000 . 1,500 $ 9,500 $ 240,205 $ 270,025 (1) If tax collections outsourced to county, position would still be needed to monitor and review c collection reports, process mowing and paving liens, report financial information, coordinate delinquent tax attorney services, and prepare tax analysis. (2) Position is 50% Tax and 50% Administrative. OFFICE OF STEVE MOSSMAN STATE AND COUNTY ASSESSOR.COLLECTOR OF TEXAS DENTON COUNTY TAX OFFICE P.O. Box 90223 DENTON, TEXAS 76202 E -MAl L: steve.mossman@dentoncounty.com June 29, 2005 r:--.-.----..~ IIl-.' '-.\. r'il::. ..=.i (-r:} ;-;:;:::, r'1. r\ 171'.'~::::'.' ~, l: ,1.' ~>p"::>" q f'.'--~i " ) ''-,\....'''IL-;1 \,/1= I 0 '..1' . ,. I__".c~' .--_.... :",~..'I "-;. _J' L.:::J.. I~ .......... \r.-".~"""'-" ',', ""~-O-='~._'~ , iU U 1./ I" ! L~J! L. '''' ,I - ,--_....._..,._.__._....._~ l"F"'H': A c.:! ! R 'Y , lLI \",~,-n ! Mike Condiff, City Manager City of Denton 215 E. McKinney Denton, Texas 76201 Mike, Several months ago we spoke about the possibility of having the Denton County Tax Office process the City property tax collection as a possible means of saving funds for the City. I believe that we can create a significant annual savings for the City. In conversation with the Appraisal District yesterday, June 28, 2005, the City of Denton has 36,153 property tax accounts. There will be mineral accounts added to this total at a later time. The Tax Office charge rate for collecting taxes is $.65 per account for each required mailing, ei: the October tax statements and the May delinquent tax notice. This is charged only on the accounts requiring the notice. Bases on the above numbers and an estimate of 5% May notice mailing (a total of 37,961 accounts) the annual cost would be $24,675.00, this amount will be somewhat higher based on added property tax accounts, especially mineral accounts. A copy of the tax rate survey (for calculation) and the interlocal tax collection agreement which sets out aU of the terms and conditions for this service are being emailed to you at your City email address. If the County Tax Office is to assist the City this year a decision must be made before August 1, 2005 to allow for software adjustments. County services would begin in advance of October 1, 2005 with tax rate calculations and publication. If we can be of assistance or if you have questions I am available to give you whatever time is needed. Sincerely" d 7 ~. "?/7. /~.. _ / /v" ~-;n~',____ ./ Steve Mossman cc. Mayor Euline Brock, Mayor Pro Tern Perry McNeil, Council Members Joe Mulroy, Jack Thompson, Pete Kamp, Bob Montgomery, Charlye Heggin, Acccounting staff member Diana Ortiz. AD VALOREM DEPARTMENT 300 E. McKINNEY STREET DENTON, TEXAS 76201 MOTOR VEHICLE DEPARTMENT PHONE 940-340-3500 ,METRO 972-434-8835 FAX 940-349-3501 PHONE 940-349-3510 Fiscal ami "~lullicipal Services * 215 E lHcKi1l1uJ' * Denton, TX 76201 (940) 349-8288 * DFWlvletro (972) 434-2259 * Fax (94lJ) 349-72lJ6 MEMORANDUM DATE: January 11,2002 TO: Honorable Mayor and Members of City Council & .. FROM: Kathy DuBose, Assistant City Manager Fiscal and Municipal Services SUBJECT: Property Tax Billing and Collection Council member McNeill asked that staff investigate the costs associated with consolidating property tax billing and collection with the County and School District. Although we have conducted several such feasibility analysis in the past, we had not done so this year. In all analysis, we not only compare costs, we also evaluate the impact on customer service to our citizens. As in the previous studies, our latest analysis reflects that the overall cost of consolidation is higher than our current process (more than $15,000 annually). The cost analysis includes all departmental costs, billing and collection fees, and revenue from collections. There are also significant differences in customer services provided to the taxpayer. While the estimated $15,000 annual increase in costs is not substantial, I believe the customer service impact is. Below are listed those customer service issues I believe to be most critical: . The City provides cashiering services at City Hall East from 8:30 a.m. to 4:30 p.m. Monday through Friday as well as at City Hall in the Mall from 10:00 a.m. to 9:00 p.m. Monday through Saturday. County cashiering services are available at the County Tax Office from 8:00 a.m. to 4:30 p.m. Monday through Friday only. . The City accepts credit card payments by telephone, Internet, Integrated Voice Response (IVR), as well as over the counter. The County only accepts credit card payments over the Internet. . The City absorbs the 1 % transaction fee for credit card payments (cost of fee is included in the analysis). The County passes their 3% credit card transaction fee on to the taxpayer. . The City provides 24-hour account service via the Internet and the IVR with 7 years of information including levy amount, legal description, owner, taxable amount, payment HDedicated to Quality Service" www.cityofdenton.com Property Tax Billing and Collection Memo January 11,2002 Page 2 history and amount due. The County system does not provide access to historical information and requires the taxpayer to enter an account number in order to make a credit card payment over the Internet. . The City's system is an "on-line, real-time" system allowing instant updating, reporting and exporting of information via electronic media. The County works in a main frame, batch system environment that requires batch processing to update account information. . The City is in the process of implementing an integrated imaging system that will provide electronic images of checks and correspondence between the City and taxpayer. The County does not provide such services. As you can see, the City has worked very hard to be sure our citizens have access to the information and services they've requested over the years. Better yet, we provide it at a lower cost. It's not often that we are invited to highlight our outstanding customer service, so I'm glad Council member McNeil asked! Please let me know if you have any questions. Thank you. cc: Michael A. Conduff, City Manager ". ,) (p DRAFT :MEMORANDUM DATE: October 4, 1996 TO: The Honorable Mayor Jack Miller Mayor Pro Tem Euline Brock Council Member David Biles Council Member Roni Beasley FROM: Ted Benavides, City Manager SUBJECT: RESPONSE TO CLAIMS MADE BY DENTON RECORD CHRONICLE AND DENTON COUNTY TAX ASSESSOR-COLLECTOR As you may be aware, on October 2, the Denton Record Chronicle printed a story claiming that the City could save $22,000 by having the County collect City ad valorem taxes. The article states that the Denton City Council used inaccurate figures to make its decision to continue collecting taxes. Though I can certainly understand why the County would not agree with the numbers provided to City Council, I believe the numbers provided to City Council in June to be accurate. The $22,000 Mary Horn refers to is the difference in the amount collected by taking the City's total levy times last year's collection percentages plus the lost interest revenue. The article implies that this $22,000 is associated to foregone interest revenue only, which is not accurate. I fail to understaiId how Ms. Horn views this as an inaccurate figure. In prior memos to City Council I have outlined a number of issues other than cost that make it more feasible to collect City taxes in-house. First is customer service. Ms. Horn claims that of the 38 entities she collects for all have been pleased with the cost savings and convenience they have enjoyed. Though I have not surveyed each entity I am certain there are a number of entities that are pleased with the service provided by the County. In some entities, the decision to have the County collect their taxes is an easy one. Many MUD and ISD districts that Ms. Horn collects for do not have established cashiering functions like the City of Denton. Because the City of Denton is unique in the fact that it owns its own electric utility, Denton must have, and continue to have, a cashiering/customer service function. Take for example Denton ISD. Ms. Horn and others continue to claim how happy Denton ISD was to contract with the County. Before contracting collections to the appraisal district, DISD paid approximately $5.00 per account for collections. The reason was due to the high overhead cost for DISD to maintain a cashiering and customer service function. When DISD contracted with the appraisal district their cost dropped to $2.00 per account, and fInally when DISD contracted with the County their cost ~/ Memo to Mayor and Members of the City Council October 4, 1996 Page 2 dropped to $.55 per account. In view of these facts, I can understand why DISD was happy to have the County collect their taxes. However, these kind of savings are not applicable to the City of Denton. Plus, because the City of Denton has well established cashiering and customer service functions which must function with or without a tax office, I do not feel the need which exists for some entities to outsource collections (cost) is applicable to the City of Denton. Accountability is another factor. The City would relinquish a tremendous amount of control to the County. The only recourse for poor service would be termination of the contract. If this were to happen customer service would be greatly impacted. Also, Ms. Horn's is an elected official. Its quite possible she won't hold this office long term. If this were to happen, nobody knows who would replace her, how effective they would be, or if they would have the City's best interest at heart. Other issues that must be addressed include the accessibility to tax records by CitY departments, report availability and timeliness, and cost control. Under the conditions of the contract provided by Ms. Horn, the County, at its sole discretion, may increase the amount charged to the City. As stated in previous memos, if the County collects City taxes, one bill consisting of line items of each taxing jurisdiction's levy will be sent to citizens. Essentially, citizens will see one total for all three entities' tax levies. If any jurisdiction other than the City were to raise taxes while the City rate remains constant or even decreases, the City's decrease will be overshadowed by any increase by another jurisdiction. Citizens may conclude that the City has raised taxes due to a higher combined tax bilI, when in reality the City lowered taxes. Frankly, I do not want the hard work of City Council to lower taxes to be mitigated by another taxing jurisdiction's tax increase. Plus, the City is required by law to print on each tax bill a statement reflecting how much money the additional 1/2 cent sales tax for ad valorem tax relief has reduced ad valorem taxes. I believe it is important for citizens to be able to identify the tax effect the 1/2 cent sales tax generates for them specifically and just as important that the City gets credit for such. . Several years ago the County was subject to a roll back election, when their adopted rate exceeded the maximum limits allowed by State law. The City of Denton could be adversely impacted should the County or DISD be in a roll back situation and all three entities utilize the same bill. The City's collection percentages (revenue) may suffer from this type of situation. Ms. Horn has stated how collection percentages have improved for some entities she collects for. One example frequently used is Lewisville ISD. Lewisville ISD has a taxing boundary that includes parts of Flower Mound. These areas have experienced amazing residential growth in the past few years. Typically when a person borrow's money to purchase a new home, the lender requires the borrower to establish an escrow to pay taxes and insurance. It is not unreasonable to conclude that Ms. Horn's improved collection percentages for LewisvilIe ISD is more attributable to the large number of new homes located in the area rather than the efforts Memo to Mayor and Members of the City Council October 4, 1996 Page 3 of Ms Horn. According to the De~ton Central Appraisal District, 64% of all residential property in Lewisville ISD is coded for mortgage company payment, as compared to 36 % for both the City of Denton and Denton ISD. It is also important to note that the collection rate for some entities has decreased under Ms. Horn's responsibility. For example, Denton lSD's collection percentage decreased from 98.85 % for 1994 taxes to 98.56% for 1995 taxes. I would argue that though Ms. Horn claims credit for increases, she is unable to explain any decreases. Minor fluctuations in collection percentages can be attributed more to external factor such as the economy and growth more than the efforts of the Denton County Tax Assessor. Finally, I would like to discuss the implication that the City could save tax payers $22,000 by having the County collect City taxes and that I, nor that City Council, is concerned about this. This is further from the truth. In fact, if Ms. Horn was truly concerned with saving tax payers money she would not insist on charging every entity the same amount. When Ms. Horn approached the City she was very adamant that her contract and price were non-negotiable. The fee is the same for all regardless of the entity size. But more importantly, the fee is the same no matter the cost to the County. Billing for additional accounts should drive the County cost down due to the economies of scale of overlapping jurisdictions. This places the County in a position to make a profit on their tax collection services, rather than save taxpayers money. For example, the County must send tax bills to their citizens, which includes City of Denton and Denton ISD residents. Suppose the County's cost is $.55 per account. In addition, the County collects for Denton ISD and charges them $.55 per account. The County charges DISD this amount even though their cost have not increased. They use the same bill, same postage, same appraisal roll, and same personnel. I can't think of any cost increase. Now suppose the County collected taxes for the City at the same $.55 per account. The county has not had to increase postage, have additional paper cost for bills, add envelopes, consider a different appraisal roll, or add personnel. The County's cost does not increase, but they are now making a profit at the . expense of City of Denton and DISD tax payers. Consider the fact that Ms. Horn collects for almost 40 entities charging each the same amount, and you can see why she is so aggressive to collect taxes from as many entities as possible, and why she is so eager to collect the City's approximately 25,000 accounts. Where does this money go? Does Ms. Horn's department benefit from the additional revenue? Does the money go the County's General Fund, thereby subsidizing other County services? I don't have an answer to these questions. My staff has researched the legality of Ms. Horn charging each entity the same amount regardless of County cost for the service. The City's legal office has advised that under an interlocal aereement, Ms. Horn could charge whatever the City is willing to pay. However, if the City elects to have the County assess and collect taxes on its behalf by official action in the manner required by law pursuant Section 6.23 (a)(3) of the Tax Code, then the County is only Memo to Mayor and Members of the City Council October 4, 1996 Page 4 allowed to receive a reasonable fee, which may not exceed the "actual costs It incurred by the County. I have attached the City's legal opinion as well as an Attorney General's opinion addressing this issue. Essentially, the City could force the County to collect its taxes at the actual cost to the County, which is likely far less than the amount the County now charges. Before any decision to have the County collect City taxes, the City must be assured that its tax dollars are not being used to subsidize County services that benefit individuals outside the City of Denton. If Ms. Horn was truly concerned with saving tax. payers money she would not seek to make a profit on behalf of the County and would charge each entity a fee that is based on actual costs. Having considered this issue in detail, I have concluded that the only way to ensure that Denton tax payers receive the most for their money is for the City to explore going into the tax collection business. Perhaps the City could charge a fee even less than the County currently charges nISD. Maybe some competition could save all Denton area taxpayers some money. In closing, I continue to feel very strongly that the City should collect it's own taxes. I feel I have demonstrated sufficient and responsible reasons for my opinion. Attached is a summary of why I continue to believe that the City should collect tax in-house. If you have any questions, please advise. Thank: you. . TB:JF:af AFF0131D REASONS TO MAINTAIN AD VALOREM COLLECTIONS IN-HOUSE . The County's proposal doesn't save the City any money. . The City has an established cashiering and customer serve functions, which it must continue to maintain. Other entities do not have to have these functions. . Lack of accountability. . County Tax Assessor is an elected position. Ms. Horn is there today, who will be there tomorrow? . Lack of accessibility to tax records by City departments. . Questionable availability and timeliness of report requests. . Lack of cost control by the City. Contract states price may increase at County discretion. . Combined bill which may portray a negative image when other entities sharply increase tax rate (as DISD has done. this year) while the City rate has decreased. . Possible negative ramifications resulting from a rollback election of another taxing entity . . Claims of improved collection percentages not always valid. . County earns a profit from current contract. The County charges all taxing jurisdictions that same price regardless of economies of scale (overlapping jurisdictions) . . City could possibly save tax payers more money by collecting for other entities. AFF0131D TO: Jon Fortune, Chief Financial Officer OFFICE OF THE CITY ATTORN~~, MEMORANDUM //4 r; '" ? /'}j /../'.>-,.. /t./IJ~': At4y ~ . ......-:~. :-:;' ','. I.. ". " / ,D,..L ........ '\7~ '.. ''''. "" :'~ ...../ FROM: Mike Bucek, First Assistant City Attorney SUBJECT: Legal Issues Relating to Collection of City Ad Valorem Taxes by the County DATE: May 30, 1996 In response to the questions raised in your Request for Legal Services dated May 20, 1996, our office submits the following answers: I. Does the Tax Code allow the County to charge for services in excess of its "actual costs"? ANSWER: Depends. If the City elects to have the County assess and collect taxes on its behalf by official action in the manner required by law (i.e. resolution or ordinance as implied in ~6.22(c) of Tax Coqe) pursuant to ~6.23(a) (3) of the Tax Code, then the County is only allowed by Tax Code ~6.27{b} to receive a reasonable fee, which may not exceed the "actual costs" incurred by the County. If, however, the City elects to have the County assess and collect taxes on its behalf through approval of an interqovernmental contract pursuant to ~6.23(a) (4) of the Tax Code, then the County is allowed to receive a fee in excess of the lIactual cost" incurred by the County. The contract attached to your legal services request constitutes an intergovernmental contract so the costs reflected in such contract may exceed the actual cost incurred by the County. Based on the foregoing it would appear to be more cost effective to authorize the County to assess and collect taxes pursuant to an ordinance or resolution rather than an interqovernmental contract. The quality of service and attitude of the County toward the City's taxpayers may well suffer based on the selection of the ordinance or resolution over the intergovernmental contract. A comparison of the County's "actual costs" to assess and collect City taxes vs. the. "intergovernmental contract costs" would appear to be necessary to determine which procedure the City should follow if it elects to have the County perform these functions. Jon Fortune, Chief Financial Officer May 30, 1996 . Page 2 II. Negative Legal Ramifications which may arise from contracting wi th the County to perform tax assessment and collection functions. (1) Under the new At-Will personnel policy adopted by the City, if a City Tax Department employee's attitude toward taxpayers or other City personnel leaves much to be desired or such employee's competence is suspect, the City Manager can quickly remove such employee from the City'S service. On the other hand, County Tax Department employees can only be removed by the County Tax Assessor-Collector and if such Assessor-Collector does not remove the questionable employee, the City's only recourse is to terminate the City'S contract with the County. (2) The threat of termination of a contract is poor leverage to a City to get the County Tax Assessor-Collector to make improvements in the manner in which City taxpayers are handled since it requires the City to hire, train and house new employees before a transition back to the City could be implemented. It would also require taxpayers to be educated as to where to begin paying City taxes again. Finally, tax collection contracts require a 30 - 60 day notice to terminate or cure breaches before the City can takeover the collection process. (3) Historically, the taxing entities with the lowest tax burden on the taxpayer receive their annual tax payments prior to the taxing entities with the higher tax burdens. The change in one entity collecting more of the tax burden usually results in higher delinquent tax accounts. The City'S action in transferring collection of taxes to the County could result in less tax revenues available for early investment by the City. (4) The City has no authority to implement cost control measures or streamline the tax collection process when County employees are collecting taxes. If County's costs go up, the City'S costs may go up as well. The County can even increase the City's costs even when the County's cost have not increased .with the only recourse of the City being the termination of the interlocal agreement. When the City reassigns its tax department personnel to other departments or terminates such employees as a result of the collection process being assumed by the County, it becomes very costly in the short term to reimplement a tax collection office. Jon Fortune, Chief Financial Officer May 30, 1996 Page 3 III. Possible changes to the "Interlocal Cooperation Agreement - Tax Collection." (1) Provide in Sec. III. (8.) that daily collection reports shall be faxed to City unless City agrees to accept such reports by mail. (2) Provide in Sec. XI. that tax revenues collected on City's behalf by County be deposited in City's depositories unless City agrees to accept receipt of such revenues. (3) Provide in Sec. XI. (1.) that all City tax revenues shall be deposited in City bank accounts by wire transfer unless City agrees to deposit by mail. (4) Provide in Sec. XI. (3.) that deposits will be made daily and that this provision survives termination of this agreement. ?4J=~._j} Mike Bucek MB:tr pc: Ted Benavides, City Manager Herb Prouty, City Attorney Susan Croff, Internal Auditor F:\WPDOCS\COR\CNTYTAX.MEM .--.... r- ~. THE ATTORNEY GENERAL OF TEXAS JIM :MATTOX ATTORNEY GEXERAL December 20, 1988 / Honorable James M. Kuboviak County Attorney Brazos County 300 E. 26th st., suite #325 Bryan~ Texas 77803 Opinion No. JM-996 Re: Construction of term "actual costs" in section 6.27 of the Tax COde, and related questions ,~ (RQ-1478) j/ --" Honorable Janelle Haverkamp County Attorney Cooke County Gainesville, Texas 76240 Dear Mr. Kuboviak and Ms. Haverkamp: There are three situations in which a county might assess, collect, or assess and collect taxes for other taxing units in the county. First, a county might do so if the qualified voters by petition and election require the county to do so, pursuant to section 6.26 of the Tax Code. In that instance, the charge for performing such services is governed by subsection 6.26(g) of the code, which provides: itA taxing unit shall pay the actual cost of Derformance of the functions to the office or entity that performs func- tions for it pursuant to an election as provided by this section. II (Emphasis added.) Second, a county may assess or collect taxes for other taxing units in that county if the governing bodies enter into an Interlocal Cooperation Act contract, pursuant to section 6.24 of the code. Neither section 6.24 of the code nor the Interlocal Cooperation Act itself, article 4413(32c), V.T.C.S., specify that charges may be made for the performance of such services; they are both silent on the matter. Third, a county may assess or collect taxes for another taxing unit in that county if it is required to do so by law. It is this last situation with which you are concerned, and it is governed by section 6.27 of the Tax Code. You ask first about the proper method for determining the "actual costs" incurred under section 6.27 of the code when the county tax assessor-collector assesses and collects ) . p. 5096 .. Honorable James M. Kuboviak Honorable Janelle Haverkamp page 3 (JM-996) ,~ (b) The entitled to exceed the assessina and unit pursuant of Subsection code. county assessor-collector is a reasonable fee. which ~v not actual costs incurred. for collectina taxes for a taxina to Subdivisions (1) throuqh (3) (a) of section 6.23 of this -' Cc) The assessor or collector for a taxing unit other than a county is entitled to reasonable compensation, which may not exceed the actual costs incurred, for assessing or collecting taxes for a taxing unit pursuant to Subsection (b) of Section 6.23 of this code. (Emphasis added.) Section 6.23 of the code permits, and in some cases requires, the county tax assessor-collector to asses~ and/or collect taxes for other taxing units: (a) The county assessor-collector shall assess and collect taxes on property in the county for the county. He shall also assess and collect taxes on property for another taxing unit if: (1) the law creating or authorizing creation of the unit requires it to use the county assessor-collector for the taxes the unit imposes in the county; ............ 2. In spite of the phrase "which may not exceed the actual costs incurred," we'do not construe section 6.27 to permit a county tax assessor-collector to impose a fee that is l.uJl than the actual costs incurred. au, ~, ~ Antonio rndeD. School Dist. v. Board of Trustees of San Antonio Elec. , Gas System, 204 S.W.2d 22 (Tex. civ. App. El Paso 1947, writ ref'd n.r.e.): Tex. Const. art. III, ii 51, 52; Attorney General Opinions &-1018 (1977); V-953 (1949); see also Acts 1987, 70th Leq., H.J.R. No. 83, 51, at 4127 (text of proposed constitutional amendment that failed to receive voter ratification, which would have permitted a county to, inter alia, use county personnel to perform work without compensation for another governmental entity under certain conditions). p. 5098 Honorable James M. Kuboviak Honorable Janelle Haverkamp Page 5 (JM-996) ,~. ,."..,'! '''''''- We think that a plain, common sense readinq of subsec- tion 6.27(a) requires such a construction. Subsection (b) of section 6.27 of the Tax Code provides: The county assessor-collector is entitled to a reasonable fee, which may not exceed the actual costs incurred, for assessing and collecting taxes for .a taxing unit pursuant. to Subdivisions (1) throuqh (3) of Subsection (a) of Section 6.23 of this code. (Emphasis added. ) Subsection (a) of section 311.011 of the Government Code provides: "Words and phrases shall be read in context and construed according to the rules of grammar and common usage." Reading the underscored phrase above in context and according to rules of common usage, we conclude that the phrase refers to the costs incurred bv the county tax assessor-collector for performinq assessment and collection functions for another taxing unit.. If the legislature had intended that the county tax assessor-collector impose a fee equal to the cost that would have been. incurred by the contracting taxinq unit if it had performed the services for itself, it explicitly would have so provided. ,-. We are required, moreover, to construe a statute or code provision so as not to ascribe to the legislature intent to do an unreasonable thinq if the provision reasonably is susceptible of such a construction. state Hiqhwav Oe~/t v. Gorham, 162 S.W.2d 934 (Tex. 1942): Anderson v. Penix, 161' S.W.2d 455 (Tex. 1942). The legislature clearly intended that taxing units in certain instances assess and collect taxes for otber taxing units in order to promote efficiency and economy in the performance of governmental functions. It has permitted, or in some instances, required such consolidation of services. ~ Tax Code, SS 6.23, 6.24, 6.26. Because one of the means by which the legislature effected such a consolidation is by Interlocal Cooperation Act contract, we think that it is reasonable to assume that the legislature intended that the Tax Code provisions promote the same. public policy as the Interlocal Cooperation Act itself promotes. The purpose of the Interlocal Cooperation Act is set forth in that act's first section: --.' It is the purpose of this Ac~ to imDrove the efficiency and effectiveness of local aovernments by authorizing the fullest possible range of intergovernmental p. 5100 Honorable James M. Kuboviak Honorable Janelle Haverkamp Page 7 (JM-996) ~ ....;;.:.1 budget of the Tax Assessor-Collector which relates to the assessing and cOllecting of property taxes? It has been suggested that, based upon Attorney General Opinion JM-833 (1987), the county tax assessor-collector is empowered by the Texas Constitution to determine the "actual costs" involved. We disagree. 4 In Attorney General Opinion' JM-833, we concluded that section 6.26 of the Tax Code, which purported to authorize the electorate to divest .the county tax assessor-collector of the duties of assessing and collectinq taxes for the county, was unconstitutional. ;. We so concluded because article VIII, section 14, of the Texas Constitution placed in the county tax assessor-collector "all the duties with respect to assessinq property tor the purpose of taxation and of collectinq taxes [for the county], as may be Drescribed bv the Leqislature.11 (Emphasis added.) The opinion held that the language of ...--.., 4. It also has been suqqested that section 6.24 of the code confers j oint authority on the cODbDissioners court and the county tax assessor-collector to determine what are "actual costs." The purportedly relevant language of section 6.24 provides: Cb) The commissioners court with the aD'Droval of the county assessor-collector may contract as provided by the Interlocal Coop- eration Act with the governing body of another taxing unit in the county or with the board of directors of the appraisal district for the other unit or the district to perform duties relating to the assessment or collec- tion of taxes for the county. (Emphasis added. ) We noted in the third footnote that the reach of section 6.27 specifically does not extend to a section 6.24 contract, because section 6.27, by its terms, does not apply when assessinq and collecting is performed pursuant to subdivision (4) of subsection (a) of section 6.23, i.e. when such services are performed pursuant to "an intergovern- mental contract." Therefore, reliance upon section 6.24 of the code in support of the proposition that a county tax assessor-collector may determine, whether jointly or independently, what are "actual costsl' as set forth in section 6.27 of the code is misplaced. ..........' p. 5102 Honorable James M. Kuboviak Honorable Janelle Haverkamp Page 9 (JM-996 ) 1".. ::.~:."~ the budget necessarily includes the authority to determine and budget the expenditures for' the various counties' offices, we conclude that the county commissioners court is empowered to determine as a final matter, in conjunction with its authority regarding the budget, what are "actual costs" incurred by the county pursuant to section 6.27 of the code. SUMMARY '-' , (;;;~. The phrase .lIactual costs" set forth in section 6.27 of the Tax Code refers to those costs that the collecting taxing unit or appraisal district incurs over and above the cost that it would incur if it were not collectinq for another taxing unit. The county commissioners court has implicit authority, derived from exp11cit authority regarding the preparation and adoption of a county's bUdget conferred by chapter 111 of the Local. Government Code, to determine as a final ]latter what are the "actual costs" incurred by the county pursuant ~o section 6.27 of the Tax Code. /81:: y JIM MATTOX Attorney General of Texas MARY KELLER First Assistant Attorney General LOU MCCREARY Executive Assistant Attorney General JUDGE ZOLLIE STEAKLEY Special Assistant Attorney General RICK GILPIN Chairman, Opinion Committee Prepared by Jim Moellinger Assistant Attorney General -- p. 5104 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Police ACM: Jon Fortune, Assistant City Manager SUBJECT: Receive a report, hold a discussion, and give staff direction regarding proposed changes to Chapter 6, Section 27 of the City of Denton Code of Ordinances dealing with livestock. BACKGROUND: As the City of Denton continues to grow and develop, new housing developments are being placed on or near to areas that have traditionally been used as pasture land for livestock. Because of this, there is an increasing amount of conflict concerning the housing of livestock (Bovine, Equine, Goats, Sheep, Swine) in the vicinity of these new developments. In attempting to address citizen complaints in this area, staff found several issues that need to be addressed including conflicts between the provisions of Denton Development Code and the requirements of Chapter 6 of the Code of Ordinances dealing with livestock. Current Applicable Regulations Denton Development Code Under the Denton Development Code, properties in every zoning category contain a "limitation 7", which addresses the keeping of livestock. This limitation states that on properties between 1 and 3 acres in size, two head of livestock can be kept. An additional head of livestock can be kept for each additional acre. Livestock cannot be kept on parcels of land less than one (1) acre in size. Other than a reference to an Equestrian Development, there is no mention or reference to the requirements for keeping livestock in Chapter 6 of the Code of Ordinances. Code of Ordinances 6-27 The City of Denton Code of Ordinances Chapter 6, Section 27 (a) and (b) provides spacing requirements to keep livestock within the city limits. Subsection (a) addresses the keeping of Swine, and requires a spacing distance of one thousand (1000) feet between the lot, pen, building, stable, or other enclosure containing the swine and any other building. Subsection (b) addresses the keeping of Bovines, Equines, Goats, and Sheep, and requires a distance of 200 feet from any habitable building (other than buildings of the livestock owner). Further, it contains a provision that was passed in 2003 concerning "Equestrian Developments" where the distance requirements for Equines is removed on properties within a housing development that is designated as an "Equestrian Development" by the Director of Planning and Development. Current Case Law Current court case rulings have defined the pen, stable, or enclosure of livestock to be the specific building, pen, or structure intended to house the livestock. It does not include those areas that are used for the general grazing of the livestock. In effect, this ruling serves to limit the applicability of the distance requirements. As it stands, if the pen or stable provided for livestock is positioned such that it is outside of the required distance from other habitable buildings, the livestock are considered to be in compliance with city ordinance, even if the livestock regularly graze in areas that are closer than the required distance to habitable buildings. Issues/Conflicts Applicability of Space Requirements As stated above, current case law established that only the pen or stable used to house livestock can be considered in the application of the distance requirements set forth in Chapter 6-27 of the Code of Ordinances. Because of this, citizens can find livestock grazing closer than the required two hundred (200) foot requirement, yet staff cannot enforce the distance provision in the code. The inclusion of the Equestrian Development provision makes the distance requirements even more complicated. The distance requirements are provided to ensure the health and safety of citizens around the livestock. By including a provision that eliminates these requirements in Equestrian Developments, the distance requirements for Equines are no longer defensible in terms of health and safety. The city cannot take a position that the distance is necessary in one setting to protect the health and safety of citizens and then allow the removal of the same distance requirements in another setting. The lack of any mention in the Development Code about other, additional requirements to maintain livestock creates a potential conflict for people who see they are allowed to keep livestock under the Development Code but are unaware of the added space requirements under Chapter 6-27 of the Code of Ordinances. Designation of Equestrian Development As it stands, the Director of Planning and Development makes the designation of a housing subdivision as an Equestrian Development. This is done when the proposed development is planned and designed around horse-related activities. The definition includes having common riding trails, arenas, and stables. However, it also includes a provision allowing for individual stables to be maintained on individual properties. Several issues arise from this provision. First, a development could be designated as an Equestrian Development based on the plans for the subdivision to build common trails and stables. Until these are completed, private stables are built and maintained on individual properties. Over time, for a variety of potential reasons, no common amenities are completed. The property is still designated as an Equestrian Development, meaning that the distance requirements in Chapter 6-27 do not apply to horses on these properties. Likewise, a development can be built using lots that are of sufficient size to allow for horses under Limitation 7 of the Development Code. There are no plans for common trails or stables, but stables are built and maintained on individual properties. The rest of the development is designed around equestrian themes, including the names of streets and the development itself. Because it does not have the official designation as an Equestrian Development, the distance requirements in Chapter 6-27 would still apply. Recommended Solutions Distance Requirements Due to the conflicts that are involved in the use of distance requirements, staff recommends the removal of the distance requirements for livestock other than Swine. There are specific health issues related to the keeping of Swine that cannot be adequately addressed without the current one thousand (1000) foot distance requirement. Unlike the provision for other livestock, the current distance provision for Swine requires the one thousand foot distance from all structures - including those of the owner. Instead of the current two hundred (200) foot distance requirement, staff recommends the implementation of the current language in Limitation 7 of the Development Code. In effect, this would require a minimum of 1 acre of property to maintain or keep Equine, Bovine, Goat, or Sheep within the city limits. Further, a property owner would be limited to two (2) head of livestock on properties between one and three (1-3) acres, and an additional head for each acre over three (3). This change would effectively eliminate the conflicts that exist in trying to interpret and enforce the current provisions that are applicable to the keeping of livestock. There are other provisions in effect that adequately address the manner and conditions for keeping livestock including odors and the attraction of pests. These provisions ensure that any livestock kept would be maintained in an acceptable environment that limits the potential to negatively impact surrounding properties. Livestock Registration Further, staff recommends the institution of a registration program for livestock maintained within the city limits. The City currently requires the annual registration of dogs, cats, and ferrets kept within the city limits. Included in the registration requirement for livestock, would be a provision for the livestock owner to authorize the City of Denton Animal Services Officers with voluntary permission to enter onto their property to inspect the health of the animals and the general conditions the animals are kept in. This consent would provide an effective means to quickly address complaints of foul odors and improper or poor living conditions. Currently, Animal Services Officers could be forced to obtain an administrative warrant to inspect these conditions. The registration would also provide for a listing of known properties containing livestock, which would be of tremendous use in returning stray animals to their owner. Staff recommends that the registration for livestock be free of charge. However, failure to register livestock would be an offense in keeping with the current provisions concerning dogs, cats, and ferrets. Staff believes that these changes will effectively address the growing number of conflicts between property owners as the city expands and grows. These changes will allow for the fair and equitable enforcement of the livestock regulations and eliminate some current conflicts that exist between the different provisions that are applicable to the issue. PRIOR ACTIONIREVIEW: None. FISCAL IMPACT: The passage of this ordinance will not have any projected or related costs to the City of Denton. Respectfully Submitted, w ..~ Charles Wiley Chief of Police Prepared by: ~ - . Lt. Scott Fletcher Operations Bureau AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Solid Waste ACM: Howard Martin, 349-8232 .. SUBJECT Receive a presentation on the potential applicability of Bioreactor Technology at the City of Denton landfill. Information will be provided on the projected capital and operational costs. BACKGROUND Bioreactor technology accelerates landfill waste decomposition, and accelerates biostabilization of landfilled organic constituents. Bioreactor landfills are controlled environmental systems that require proper operations management. There are approximately seventy operating bioreactor landfills within the United States, but currently none in Texas. The Cities of Dallas and Denton are proposing to implement the first bioreactor landfills in Texas. There are benefits from operating a landfill utilizing bioreactor technology. The benefits include increased landfill disposal capacity, a shorter period of post-closure maintenance due to faster biostabilization, increased gas production for beneficial use, lower leachate treatment costs, and increased site life. The City of Denton's bioreactor technology costs and financial benefits have been projected, and were reviewed by a consultant. The consultant stated the City's analysis was conservative, and that he would expect greater waste densities than utilized in the City's analysis. The City's landfill settlement and financial projections, and the potential implementation of this technology at the City's landfill will be discussed during the meeting. Staff provided a landfill bioreactor presentation to the City Council in November 2004, and had additional discussions concerning this technology with the City Council during December 2005. OPTIONS The City Council may recommend that the Solid Waste Department begin the implementation of landfill bioreactor technology at the City of Denton Landfill, or they may recommend that the Solid Waste Department not pursue landfill bioreactor technology. RECOMMENDA TION The city staff recommends the City implement landfill bioreactor technology at the City's landfill. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) The City Council was provided an introductory bioreactor presentation during their work session meeting of November 8,2004. In December 2004, during the discussions of other solid waste agenda items, bioreactor technology was briefly discussed by the City Council. The Public Utilities Board approved the utilization ofbioreactor technology at the City of Denton landfill during their meeting of May 23,2005. FISCAL INFORMATION Proj ected budget information will be presented during the staff presentation. EXHIBITS 1. The Bioreactor Landfill - An Innovation in Solid Waste Management 2. Summary ofBioreactor Settlement and History 3. Solid Waste Bioreactor Budget Comparison Respectfully submitted: a-(-l~ A. Vance Kemler Director of Solid Waste THE BIOREACTOR LANDFILL - AN INNOVATION IN SOLID WASTE MANAGEMENT John Pacey EMCON, San Mateo California Committee Chairperson Don Augenstein IEM, Palo Alto, California Richard Morck Engage Environmental, North Bend, Washington Debra Reinhart College of Engineering University of Central Florida Orlando, Florida Ramin Yazdani Yolo County Planning & Public Works Department Woodland, California Introduction Sanitary landfilling in the United States has made monumental strides in the last 20 years, moving from open dumps with little or no control to "state of the art" controlled facilities with sophisticated containment systems, environmental monitoring, improved operational practices, and increased regulation. The modern sanitary landfill is truly an important component of today's integrated solid waste management system. However, in order to advance the field of solid waste management, new and innovative ways of managing solid waste disposal need to be continually evaluated. One idea that has gained significant attention in the last several years is the "bioreactor landfill." The concept is seen as a way to significantly increase the extent of waste decomposition, conversion rates and process effectiveness over what would otherwise occur within the landfill. Other benefits include maximization of landfill gas (LFG) capture for environmental recovery projects; increased landfill capacity; improved opportunities for leachate treatment and storage; reduction of post-closure activities; and abatement of greenhouse gases. This "White Paper" presents an overview of the bioreactor landfill concept, including existing relevant regulations, benefits to be derived, design and operational issues and possible solutions to many of these issues. In addition, the paper addresses the numerous non-technical and non- environmental barriers to acceptance of the bioreactor landfill concept. This paper is intended to raise reader awareness that the bioreactor landfill is an emerging viable option for solid waste management. It is hoped that landfill owners and operators, policy makers, regulators, others concerned with the environment, and the public at large will use this paper as a focal point for future discussion. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 1 EXHIBIT 1 Background The predominant municipal solid waste disposal option in use today is the sanitary landfill. Landfills must meet the requirements of the Resource Conservation and Recovery Act (RCRA), Subtitle D, the Clean Water Act, the Clean Air Act and numerous other Federal, State and local regulations. The intent and guiding principle of these regulations is to keep wastes "dry," thus minimizing production ofleachate and LFG, two of the major by-products of waste degradation. The underlying assumption is that a 30-year post-closure period is the minimum necessary to effectively manage the very long-term environmental liabilities of the organic components, salts and heavy metals contained within conventional "dry" Subtitle D landfills. The containment provided by these landfills offers environmental protection initially; however, at some point beyond the 30-year period, there may be partial failure(s) of the containment lining system (underlying and overlying the waste). The primary environmental issue associated with partial containment system failure and moisture infiltration is the potential associated increase in gas and leachate production and the resulting impact of uncontrolled leachate and/or LFG releases to the environment. The nature and magnitude of the releases exiting the landfill and their resulting impacts is directly related to the amounts of organic waste not yet decomposed. Howa Bioreactor Landfill Differs from a Conventional Landfill As defined in this paper, a bioreactor landfill is a sanitary landfill that uses enhanced microbiological processes to transform and stabilize the readily and moderately decomposable organic waste constituents within 5 to 10 years of bioreactor process implementation. The bioreactor landfill significantly increases the extent of organic waste decomposition, conversion rates and process effectiveness over what would otherwise occur within the landfill. Stabilization means that the environmental performance measurement parameters (landfill gas composition and generation rate and leachate constituent concentrations) remain at steady levels, and should not increase in the event of any partial containment system failures beyond 5 to 10 years ofbioreactor process implementation. The bioreactor landfill requires certain specific management actIvItIes and operational modifications to enhance microbial decomposition processes. The single most important and cost-effective method is liquid addition and management. Other strategies, including waste shredding, pH adjustment, nutrient addition, waste pre-disposal and post-disposal conditioning, and temperature management, may also serve to optimize the bioreactor process. Successful implementation also requires the development and implementation of focused operational and development plans. In effect, the bioreactor landfill is merely an extension of the accepted Subtitle D leachate recirculation landfill option. However, the bioreactor process requires significant liquid addition to reach and maintain optimal conditions. Leachate alone is usually not available in sufficient quantity to sustain the bioreactor process. Water or other non-toxic or non-hazardous liquids and semi-liquids are suitable amendments to supplement leachate (depending on climatic conditions and regulatory approval). Other process amendment strategies may also be included, subject to -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: I 2 regulatory approval. Although Subtitle D does permit recirculation of leachate and condensate from a specific landfill, many states have not yet endorsed the leachate recirculation option, let alone permitted the addition of water or other liquid amendments needed to facilitate the bioreactor activity. Shortly following closure of a bioreactor landfill, the landfill gas generation rate will usually be at its highest. It will then quickly decline over the next 5 to 10 years to a stable and relatively low and declining rate. Similarly, shortly after landfill closure, many leachate contaminant concentrations will change from levels regarded as highly polluted to much lower levels normally characteristic of extended stabilization. The leachate quantity at closure will be a finite amount, amenable to on-site treatment with limited need for off-site transfer, treatment and disposal. In the event of post-closure partial containment system failure, the quality of the leachate generated from infiltration into a bioreactor landfill will be much better than other drier Subtitle D landfills. Evidence suggests that bioreactor landfills can meet Subtitle D requirements. A 1997 SW ANA survey of 130 US bioreactor landfills indicates that most environmental and other relevant concerns have been resolved; information on leachate recirculating landfills in existence worldwide is similarly positive. Existing Regulations, Policy, and Activities Present regulations generally encourage landfills to remain relatively dry. In most cases, the final moisture content remains close to that of the entering waste. The Federal Code most pertinent to liquid addition is 40 CFR 258.28, which only allows reintroduction of leachate and condensate into Subtitle D lined landfills, described in 40 CFR 25.40 (a)(2). Subtitle D does not expressly bar amendments, and is in fact silent on the issue. Some states interpret 40 CFR 258.28 to mean that liquid addition, other than leachate and condensate, is not allowed into landfills. Despite this oft-taken position, Federal Code may be interpreted to prohibit only the addition of bulk liquid wastes, and not amendments, to landfills. Thus water and other amendment additions to landfills appear permissible within regulations. For example, the US EPA, Region 10, approved an amendment to Washington State's solid waste regulation that specifically allowed water addition in a controlled manner to a specific composite lined, subtitle D Landfill. The bioreactor and leachate recirculating landfills differ from the "dry" Subtitle D landfill in that they each receive managed liquid additions to augment waste stabilization. The bioreactor landfill differs from the leachate recirculating landfill in that it can obtain rapid and complete stabilization by use of water and other amendments. For the bioreactor landfill, water is clearly not a waste but an amendment. Other potential bioreactor additions such as sludge and nutrients could also be categorized as amendments. Federal Code is open to necessary amendments providing that other statutory constraints are met, e.g., leachate head limits on the base liner and inclusions of a single composite liner. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 3 Favorable federal policy toward the bioreactor landfill has begun to develop. In the Federal Climate Change Action Plan (CCAP) of 1993, Action Item 37 contains, among others, the following relevant recommendations: . Creation of a joint state/federal coordination program to facilitate siting/permitting of enhanced recovery (i. e., bioreactor) landfills. . Modification of environmental performance standards and regulatory requirements to remove unnecessary barriers to bioreactor landfills. In addition to support apparent in these policy statements, federal support seems implicit in long- standing US EPA sponsorship of bioreactor experimental work. One representative compendium of work may be found in the EP A seminar publication, "Landfill Bioreactor Design and Operation," proceedings of the EPA Symposium in Wilmington, Delaware, March 1995. A large body of other work has been sponsored and published under EP A auspices over the past three decades. With respect to states, a 1997 SW ANA data collection effort included a survey of state regulatory agencies to determine their position on leachate recirculation and landfills as bioreactors, (Gou and Guzzone, 1997). Of 50 distributed surveys, 37 were returned. The survey indicates that approximately 130 MSW landfills are currently employing leachate recirculation. More than half (21) of the respondents cited specific state regulations on leachate recirculation. For the most part, the state requirements closely follow those stipulated under RCRA Subtitle D, i.e., a composite liner system and leachate collection system (LCS) to maintain leachate head levels below 1 foot (30 cm). Six states supplement their regulations with additional specific requirements, including gas collection, runoff controls, leak detection systems, and double liner systems (i.e., Delaware and New York.) In other states, survey responses list no specific requirements, save a requirement to obtain Department and state approval. For example, Ohio and Wyoming allow leachate recirculation, however, there are no specific state rules pertaining to the practice. Finally, three states do not permit recirculation at all. In these cases, either leachate production is not a primary concern ( dry climate), or most of the state's landfills are unlined, or the state environmental agency simply does not find the practice researched and studied adequately for implementation. At the time the survey was administered (mid 1997), fourteen states indicated either that they accept bioreactor landfills, approval was pending, or they would consider a proposal. States favoring, considering, or accepting bioreactor landfills include: Alabama, Alaska, Arkansas, California, Colorado, Delaware, Florida, Iowa (one project pending), Michigan, Mississippi, Montana, New Jersey, New York and Washington. Eleven states (Arizona, Illinois, Kansas, Kentucky, Massachusetts, Maryland, Nebraska, New Hampshire, Ohio, and Pennsylvania) indicated that they would not approve a bioreactor landfill. Others gave no answer, or indicated they were in the process of evaluating the technology. A primary reason cited by those not approving of bioreactor landfills was that most landfills were -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 4 unlined. Those that did permit bioreactor landfills usually classified the practice under recirculation, rather than as a separate category. In many of the states lacking specific bioreactor regulations, the practice had never even been requested. However, the topic had been considered internally through permit modifications or alterations. Example Bioreactor Landfill Activities . California: For three years, Yolo County has been operating a bioreactor demonstration cell that contains 9,000 tons of refuse. Yolo County is negotiating with concerned state regulatory agencies to permit and then operate the next IS-acre landfill cell of the Yolo County Central Landfill as a bioreactor. . Delaware: The Delaware Solid Waste Authority has operated the major landfill (largest in the state) at Sandtown as a bioreactor for more than 10 years. . Florida: The state recently allocated more than 3.2 million dollars to establish a demonstration bioreactor landfill. . Georgia: Two aerobic bioreactor landfill projects are operational; one at the Live Oak Landfill in Atlanta, the other at the Baker Road Landfill in Columbia County . Iowa: The Bluestem Solid Waste Authority has received a $500,000 state grant for its bioreactor project at the Bluestem #2 Landfill near Marion. Waste placement commenced in December 1998 and the demonstration project should receive final cover in June 1999. . New York State: An anaerobic bioreactor operation is being carried out at the Mill Seat Landfill; a pretreatment aerobic bioreactor activity is operational at Elmira. . South Carolina: The State Research and, Development and Demonstration Program is sponsoring an aerobic activity at the Aiken County Landfill. . Washington State: Washington Administrative Code 173-351-200(9) specifically permits bioreactor landfills. The pertinent section on operating criteria on liquid restrictions states, "Bulk or non-containerized liquid waste may not be placed in MSWLF units unless: (ii) the waste is leachate or gas condensate derived from the MSWLF unit, or water added in a controlled fashion and necessary for enhancing decomposition of solid waste, as approved during the permitting process of WAC 173- 351-700, whether it is a new or existing MSLF or lateral expansion." Potential Benefits of the Bioreactor Landfill Numerous benefits can be derived from the bioreactor landfill. These are situation-dependent and can affect different parties or stakeholders in different ways. They can accrue in the form of environmental, regulatory, monetary and social benefits. Some of the key benefits include: -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 5 Rapid organic waste conversionl stabilization . Rapid settlement - volume reduced and stabilized within 5 to 10 years of bioreactor process implementation. . Increased gas unit yield, total yield and flow rate - almost all of the rapid and moderately decomposable organic constituents will be degraded within 5 to 10 years of closure. . Improved leachate quality - stabilizes within 3 to 10 years after closure. . Early land use possible following closure. Maximizing of landfill gas capture for energy recovery projects . Significant increase in total gas available for energy use, which provides entrepreneurial opportunities. . Potential increase in total landfill gas extraction efficiency (enabled over a shorter generation period). . Increased greenhouse gas reduction from lessened emissions. . Increase in fossil fuel offsets due to increased gas energy sales. . Assistance in defraying landfill gas non-funded environmental costs. . Significant economy of scale advantage due to high generation rate over relatively short time. Increased landfill space capacity reuse due to rapid settlement during operational time period . Increase in the amount of waste that can be placed into the permitted landfill airspace (effective density increase.) . Extension of landfill life through additional waste placement. . Deferred capital and financing costs needed to locate, permit and construct replacement landfill results in capital and interest savings. . Significant increase in realized waste disposal revenues. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 6 Improved leachate treatment and storage . Low cost partial or complete treatment; significant biological and chemical transformation of both organic and inorganic constituents, although mostly relevant to the organic constituents. . Reintroduction of all leachate over most of the operational and post-closure care period significantly reduces leachate disposal costs. . Absorption ofleachate within landfill available up to field capacity. Reduction in post-closure care, maintenance and risk . Rapid waste stabilization (within 5 to 10 years) minimizes environmental risk and liability due to settlement, leachate and gas. . Landfill operation and maintenance activities are considerably reduced. . Landfill monitoring activities can be reduced. . Reduction of financial package requirement. . In the event of partial liner failure, there should be no risk of increased gas generation, worsening leachate quality, increased settlement rate or magnitude. Another major benefit ofbioreactors may come from greenhouse gas abatement. Bioreactors can generally rapidly complete methane generation while attaining maximum yield. This can be combined with nearly complete capture of generated gas using the bioreactor landfill in combination with a landfill gas energy project (Augenstein et ai, 1997). With this approach, the high generation level and gas capture efficiency maximizes landfill greenhouse gas offset potential. Additional goals and benefits may also accrue, including: 1) transformation of certain resistant organics (dehalogenation, etc.) and sequestration of certain inorganics (precipitation, etc.); and 2) pollutant removal processes of filtration, capture, sorption, etc. that are promoted by leachate recirculation (Pohland, 1995). BIOREACTOR LANDFILL ISSUES Design For the most part, state and federal regulations (primarily RCRA Subtitle D), dictate the design of the modern landfill. Required design components include the liner, leachate collection facilities, gas collection and management facilities, and the final cap. These same components must be adapted during the operational period of the bioreactor landfill to manage leachate, -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 7 including liquid introduction, and to handle enhanced gas generation. The following issues must be addressed to produce a successful project that satisfies regulatory concerns. Cell Size. For economic and regulatory reasons, an emerging trend in traditional landfill design is to build deep cells (or phases) that are completed within two to five years. This trend bodes well for bioreactor landfill evolution. Phased cell construction can more easily take advantage of emerging technological developments, rather than committing long term to a design that may prove to be inefficient. Once closed, methanogenic conditions within the cell (phase) are optimized and gas generation and extraction is facilitated. However, extremely deep landfills may be so dense in the lower portions that refuse permeability will inhibit leachate flow. In these instances, it may be necessary to limit addition and/or recirculation to the upper levels, or develop adequate internal drainage management capability. Maximum Allowable Leachate Head on the Bottom Liner. Federal regulations prescribe a one-foot maximum allowable leachate head on the bottom liner. This criterion may be readily achieved by appropriate design and specifications of bottom liner slopes, drainage layer flow distances, and hydraulic conductivity of the leachate drainage layer. The design can be aided by use of mathematical models such as HELP3 developed by the Corps of Engineers (Schroeder et ai, 1994). Since leachate head predictions are based on mathematical models, regulatory agencies may require monitoring to verify performance. Liquid management An estimate of the design flow rates and liquid storage and supplementation capacity must be developed for the liquid management system. Sufficient storage will be required to ensure that peak leachate generation events can be accommodated. Sufficient liquid supply (i.e., leachate, water, wastewater, or sludge) must be assured to support project goals. The volume of liquid needed to reach waste field capacity can be based on prior field studies, model predictions, or landfill specific measurement. Expressed as a volume per mass of solid waste, the range of liquid addition to reach field capacity is 25,000-50,000 gallons per 1,000 tons of solid waste (Reinhardt and Ham, 1974). There are various methods of adding liquid. Methods that directly apply the leachate and water to the solid waste can target moisture supplementation levels (desired gallons/ton or cubic yard) during active landfilling. One option is to apply the liquid at the working face as refuse is placed into the landfill. In this case, however, operators must be prepared to deal with increasing gas generation shortly thereafter. Another option is to add moisture after waste placement, which controls the onset of rapid gas generation. Applying leachate and water to solid waste already in place can be accomplished by using surface irrigation systems, infiltration ponds, injection wells, or trenches. Selection considerations include climate, malodors, worker exposure, environmental impacts, evaporative loss, reliability, uniformity and aesthetics. Buried trenches or vertical wells offer advantages of minimum exposure pathways, good all-weather performance, and favorable aesthetics. However, they may be adversely impacted by differential settlement. Guidance on liquid addition, alternative design and performance can be found in Reinhart and Townsend (1997). -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 8 Solid Waste Density Considerations Adding liquid to solid waste will increase its density, which can be of critical importance in the design of load-bearing structural members in the landfill. Most notably, the leachate and LFG collection system must be designed to accommodate the increased load, which may be as much as 30% heavier because of expected moisture uptake and settlement. The design process for determination of the buried leachate pipe load bearing capacity is described in Harrison and Watkins (1996). Landfill Gas Control System A bioreactor landfill will generate more landfill gas in a much shorter time than a drier landfill. To efficiently control gas and avoid odor problems, the bioreactor landfill gas extraction system may require installation of larger pipes, blowers and related equipment early in its operational life. Horizontal trenches, vertical wells, near surface collectors, or hybrid systems may be used for gas extraction. Greater gas flows are readily accommodated by increased pipe diameter, as capacity increases as the square of pipe diameter. Liquid addition systems should be separate from gas extraction systems to avoid flow impedance. The porous leachate removal system underlying the refuse should be considered for integration with the gas extraction system. Enhanced gas production can negatively impact side slopes and cover if an efficient collection system is not installed during active landfill phases. Uplift pressure on geomembrane covers during installation may cause ballooning of the membrane and may lead to some local instability and soil loss. Temporary venting or aggressive extraction of gas during cover installation may facilitate cover placement. Once the final cover is in place, venting should be adequate to resist the uplift force created by LFG pressure buildup. The designer should consider the pressure buildup condition on slope stability when the collection system is shut down for any significant time. Landfill Stability Addition of liquid into the refuse to increase biological activity will increase the total weight of the refuse mass and may cause an increase in internal pore pressure. This stability issue can be readily assessed and resolved with standard geotechnical analyses (Maier, 1998). Seismic effects should also be considered during geotechnical analysis when appropriate. Settlement A bioreactor landfill will experience more rapid, total and complete settlement than a drier landfill. Accelerated settlement results from both an increased rate of decomposition of the solid waste and increased compression through higher specific weights. Settlement during the landfilling operations will impact the performance of the final surface grade, surface drainage, roads, gas collection piping system, and leachate distribution piping system. Because of the significant increase in settlement magnitude and rate, it could be very beneficial to overfill the refuse above design grade before placement of the final cover. Alternatively, a significant benefit may accrue if final cover and final site improvement installations are postponed and the rapid settlement is used to recapture airspace. Settlement impacts can be readily accommodated by the project design. Since settlement will be largely complete soon after landfill closure, long- term maintenance costs and the potential for fugitive emissions will be avoided. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 9 Operations The bioreactor landfill is a waste treatment system. During landfill operations, it requires closer attention to system performance than the drier landfill. Successful operation of a bioreactor landfill depends upon control and monitoring of biological, chemical, and hydrologic processes occurring within the landfill. Operational and maintenance programs addressing settlement, landfill gas, and leachate may be reduced to a minimal level once the landfill is closed and the refuse is largely stabilized. Solid Waste Pre-treatment or Segregation Bioreactor operations are most efficient and effective where the refuse has high organic content and high exposed specific surface area. For this reason, bioreactor operations should be concentrated on waste segregated to maximize its organic content and shredded, flailed, or otherwise manipulated to increase its exposed surface area. Waste segregation could include separation of construction and demolition (C&D) wastes from MSW. Limited shredding can be obtained by spreading refuse in thin lifts and using landfill equipment to break open plastic bags and break down containers. Mechanical shredding can be efficient and effective in reducing particle size and opening bags, however it is an intensive, high maintenance and high cost activity, which may not be cost-effective. Moreover, shredded wastes may become exceedingly dense after placement, thereby limiting moisture penetration. Leachate Seeps Adding liquids to solid waste landfills increases the potential for leachate seeps or breakouts; and the landfill must be operated to minimize such possibilities. Leachate must be precluded from contaminating storm water runoff. Monitoring for leachate seeps is mandatory, and the operations plan must include a rapid response action to correct leachate seeps as they develop. Such measures as installation of slope and toe drains, surface regrading, filling and sealing cracks as necessary to reduce surface water infiltration, and reducing the liquid addition rate, are some of the standard methods used to address this condition. Potential for slope seeps can also be limited by managing liquid addition rate, amount, and location. Daily and Intermediate Cover The use of soil cover in a bioreactor landfill requires special attention. A cover more permeable than the waste can direct leachate to the sides, where the leachate must be properly collected and drained. Low permeability daily cover can create barriers to the effective percolation of leachate and water (Miller et ai, 1991). It can also impede leachate distribution and landfill gas flow to collection and distribution systems. Where low permeability soil is used as cover, its ability to serve as a barrier should be reduced by scarifiying, or partial removal, prior to placing solid waste over it. Where low permeability soil cover is placed within 50 feet of the slopes, it should be graded to drain back into the landfill to preclude leachate from reaching the slope and emerging as a seep. Use of alternative covers that do not create such barriers can mitigate these effects. In many cases, alternative covers have been found to be quite cost effective when compared to soil. Management of Nutrients and Other Supplement Addition Nutrient requirements are generally supplied by waste components (Barlaz et ai, 1990), but research suggests that nutrients and other biological and chemical supplements may be -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 10 considered to enhance biological activity. Addition of such additives has not yet been attempted in the field. As with waste segregation, or shredding, the costs of nutrient and supplement additions will need to be justified. Optimum pH for methanogens is approximately 6.8 to 7.4. Buffering of leachate in order to maintain pH in this range has been found to improve gas production in laboratory studies. Particular attention to pH and buffering needs should be given during early stages of leachate recirculation. Careful operation of the landfill bioreactor initially through slow introduction of liquids should minimize the need for buffering. Bioreactor Management Program It is important that operators of each bioreactor project develop a detailed and thorough management plan that addresses the project goals; design, operation and maintenance, training, monitoring, contingency considerations, and QA/QC elements. All issues and solutions should be addressed in detail within these programs to the satisfaction of regulators and the public. The bioreactor landfill is possible now that Subtitle D mandates an environmentally secure environment. Within Subtitle D, some management flexibility is allowable to optimize the benefits available through controlled management of the organic decomposition process. Under certain conditions, the bioreactor landfill may be a viable technical option for landfill management. Non-Technical Barriers to the Bioreactor Landfill Research and limited field-scale experience offers solid technical evidence of the efficacy of the bioreactor landfill. While resolution of remaining technical and the environmental issues appears assured by implementation of RCRA Subtitle D and the CAA, the bioreactor landfill also faces the challenge of numerous non-technical barriers. Principal among these are: . Limited regulatory awareness and negative perception. . Dearth of site-specific performance quantification. . Limited availability of proj ect economic assessments. . Insufficient project sustainability experience. . Lack of financing experience. . Extended time expectations for planning permitting and licensing. . Increased regulatory constraints and conditions. These non-technical issues and uncertainties must be further addressed to fully evaluate the viability of potential projects and gain acceptance for the concept. It is hoped that an improving -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 11 understanding of the technical Issues will lead to resolution of many of the non-technical barriers. Summary and Conclusion It is now time to seriously consider acceptance and adoption of the bioreactor landfill as a key strategy for deriving short and long-term environmental, regulatory, monetary and societal benefits. The bioreactor option is a direct result of engineering and building a new generation of environmentally sound landfills; it provides environmental security while permitting and encouraging rapid stabilization of the readily and moderately decomposable organic waste components. It is hoped that the emerging bioreactor landfill technology will point our solid waste industry towards taking a new look at a very effective option to manage our waste disposal. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: I 12 REFERENCES Augenstein, D., R. Yazdani, R Moore and. K. Dahl, "Yolo County Controlled Landfill Project", Proceedings, SW ANA, 1997 Landfill Symposium. Barlaz, M. A., RK. Ham, and D.M. Schaefer, "Methane Production From Municipal Refuse: A Review of Enhancement Techniques and Microbial Dynamics", Critical Reviews in Environmental Control, 19(6): 557 (1990). Fletcher, P., "Landfill Gas Enhancement Technology -Laboratory Studies and Field Research", Proceedings of Energy from Biomass and Wastes, XIII, IGT, 1989. pp. 1001. Gou, V. and Guzzone, B., "State Survey on Leachate Recirculation and Landfill Bioreactors", Solid Waste Association of North America, 1997. Gurijala, K. Rao. and J.M. Suflita, "Environmental Factors Influencing Methanogenesis From Refuse in Landfill Samples", Environmental Science & Technology, 27(6): 1176-1181 (1993). Harrison, S. and R.K. Watkins, "HDPE Leachate Collection Pipe Design by Fundamentals of Mechanics", Proceedings Nineteenth International Madison Waste Conference, Municipal and Industrial Waste, Department of Engineering Professional Development, University of Wisconsin, Madison, Wisconsin, September 25-26, 1996. Holmes, R., "The Absorptive Capacity of Domestic Refuse from a Full-Scale, Active Landfill", Waste Management, 73(11): 581 (1983). Kmet, P., "EPA's 1975 Water Balance Method: Its Use and Limitations", Wisconsin Dept. of Natural Resources Guidance Report, Madison, October 1982. Korfiatis, G. P., A. C. Demetracopolous, E. L. Bourodimos, and E. G. Nawey, "Moisture Transport in a Solid Waste Column", Journal of Environmental Engineering, 1l0(EE4): 789- 796 (1984). Maier, T. B., "1998 Analysis Procedure for Design of Leachate Recirculation Systems", Proceedings, SW ANA 1998 Landfill Symposium. Miller, L.v., R E Mackey and J. Flynt, "Evaluation of a PVC Liner and Leachate Collection System in a 10 Year Old Municipal Solid Waste Landfill", Presented at the Solid Waste Association of North America's 29th Annual Solid Waste Exposition, 1991. Natale, B.R, and W.C. Anderson, "Evaluation of a Landfill with Leachate Recycle", Draft report to US EPA Office of Solid Waste, 1985. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 13 Pacey, lG., lC. Glaub and R. E. Van Heuit, "Results of the Mountain View Controlled Landfill Project", Proceedings of the GRCDA 10th International Landfill Gas Symposium, GRCDA, Silver Spring, Maryland, 1987. Pohland, F.G., "Landfill Bioreactors: Historical Perspective, Fundamental Principles, and New Horizons in Design and Operations", EPA/600/R-95/146, 9-24, September 1995. Quasim, S. Rand l C. Buchinal, "Leaching from Simulated Landfills", Journal Water Pollution Control Federation, 42(3): 371 (1970). Reinhart, D. Rand T. G. Townsend, "Landfill Bioreactor Design and Operation", Lewis Publishers, New York, NY, 1997. Reinhardt, J.I. and RK. Ham, "Solid Waste Milling and Disposal on Land Without Cover", U.S. Environmental Protection Agency, Cincinnati, Ohio, PB-234 930, 1974. Robinson, RD. and P.l Maris, "The Treatment of Leachates from Domestic Waste in Landfill Sites", Journal of Water Pollution Control Federation 57(1): 30 (1985). Schroeder, P. R., C.M. Lloyd and P.A. Zappi, "The Hydrologic Evaluation of Landfill Performance (HELP) Model, User's Guide for Version 3", EPA/600/R-94/168a, 1994. Townsend, T. G., Miller, W.L. and Earle, l F. K., "Leachate Recycle Infiltration Ponds", ASCE Journal of Environmental Engineering, June 1995. Yolo County Department of Public Works, and I EM., "Yolo County Controlled Landfill Bioreactor Project", Report to Urban Consortium Energy Technology Foundation, March 1998. -c:ldocuments and settingslryazdanilmy documentslbioreactor-paperslbioreactword6.doc-96Ir: 1 14 Summary of Bioreactor Settlement and History General Bioreactor Chronology: Late 1960s - early 1970s 1979 1980s First pilot scale bioreactor field studies First leachate recirculation only bioreactor field study Full scale bioreactor landfill cells Currently approximately 70 bioreactor landfills operating in states whose regulations allow permitting and operation ofbioreactor landfills. Representative Site Settlement/Airspace Recapture Information Location King George, Virginia Yolo County, California New River, Florida Louisville, Kentucky Crow Wing, Minnesota Spruce Ridge, Minnesota WMI site, Illinois Percenta2e Airspace Recovery 12%, in 12 months 19%, in 2 years 15% to 30% 13.6%, short term 18% to 20%, in 3 to 4 years 20% to 25% 42% EXHIBIT 2 C") I- m I >< UJ ...-... ...-... 0 0 0 0 0 L.() 0 0 L.() It) 0 0 0 0 L.() N 0 0 I'- N Q) 0 <D <D 0 <D -.;t <D 0 <D en (.) 0 C") C") 0 <D co C") 0 co ..q~ c:: (J) (J) co ...-- -.;t co C'CS ----- ...-- ----- 'i: C'CS > f:I7 f:I7 f:I7 f:I7 f:I7 ~ <( L.() co L.() co <D (J) 0 C") (J) L.() 0 <D 0 10. (J) L.() -.;t 0 0 <D 0 <D N -.;t 0 0 0 a.. 0 -.;t C") -.;t (J) N ...-- 0 L.() <D -.;t 0 co ..q :E - C") L.() 0 (D~ (.) C'CS ...-- I'- I'- 0 0 C") I'- I'- C") C'CS E (J) <D 0 (J) <D -.;t 0 (J) 0 0 L.() 0 It) 0 (DQ) C") ...-- N -.;t N <D L.() (J) I'- N ...-- N U 010. 0 -.;t L.() ...-- ...-- L.() 0,2 10. ..... NID 0 I 10. c:: a.. 0 z f:I7 f:I7 f:I7 f:I7 f:I7 ~ m a: L.() co 0 L.() co <D (J) 0 0 (J) (J) L.() 0 ...-- It) 0 10. (J) L.() 0 -.;t 0 0 <D L.() 0 co N -.;t 0 co N 0 C'CS -.;t C") 0 0 (J) co ...-- <D 0 (J) <D 0 0 -.;t M 10- - E C") 0 ...-- I'- C") 0 <D L.() I'- ...-- 0 N "r"'" (D(.) ...-- ...-- U 10. (J) <D (J) ...-- (J) L.() <D ...-- 0 0 0 ...-- ...-- ...-- ..q OC'CS 0 C") ...-- N -.;t C") L.() ...-- L.() 0 I'- N ...-- N "r"'" <( OQ) ..... NIo. 0 -.;t L.() ...-- N L.() W 0 10. a: ID a.. f:I7 f:I7 f:I7 f:I7 f:I7 ~ m w 10- en UJ Q) ~ :J C Q) en en rn > Q) w Q) tn en Q) :J rn 0::: Q) c Q) C ::::J Q) LL Z W en I.... c:: Q.. Q) W rn Q) Q) Q) >< I.... > Z en Q) ..c tn UJ :J tn Q) LL ...... > en 0 W W 0 Q) Q) Q) a:: a.. :J Q) a:: tn en ~ Q) 0 tn UJ c en -. c:: Q) en () c:: >< Q) 0) Q) en 06 > Q) ...J I.... en Q) I.... ...... Q) w > co Q) :J lj: a. c 0 Q) Q) Q) en a. ...J Q) ..c LL 0 Q) en () LL 0 Q) u:: C 0::: () en Q) "C >< Q.. I.... Q) a.. >< E z I.... Q) Q) c c:: w >< 0 0::: C en Q) -. w C :J en C'CS UJ ...... I.... en 0 Z <( co (f) co co ...J () Q) Q) Q) (.) en ..c lj: co co (f) '+- ..c I.... lj: <( 0 Q) (f) () Q) (ij "C ~ Q) ~ en () :J "C c:: Q.. C () ...... c c en ...J ...... en c:: 06 I.... Q.. ..0 c:: - en co co en - 0 co co 0 ...... co I.... 0 C'CS co Q) I.... I.... C'CS Q) 0 (f) ~ LL ~ .... ...J 0 (Q u 0 l- LL U ...J Z AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 CM: Economic Development Mike Conduff ~ DEPARTMENT: SUBJECT Consider adoption of an ordinance providing for the sale of real property located at 634 E. Prairie Street as a part of the City's Infill New Construction Program for affordable housing for sale to low-moderate income buyers; and providing for an effective date. BACKGROUND The 2003 Action Plan for Housing and Community Development allocated $206,640 to the "Infill New Construction" housing program. The program is designed to use vacant properties in low to moderate-income areas for construction of single-family housing units. Under the program, the City of Denton acquired the property at 624 E. Prairie as trustee through the tax foreclosure process. A sales price of$I,950 was accepted for the property by the taxing entities. A three-bedroom, two and 1Iz bath unit with approximately 1,350 square feet has been constructed on the site. The unit will be sold to a qualifying family that obtains a mortgage loan to purchase the property and maintain it as their principal residence. The unit has been advertised at a sales price of $89,000. ESTIMATED PROJECT SCHEDULE The unit is projected to be complete and available for occupancy by mid-August. PRIOR ACTIONIREVIEW (Councils, Boards, Commissions) City Council approved purchase of the property for the project by ordinance on January 20, 2004. FISCAL INFORMATION Approximately $90,000 in HOME funding was used for the project. EXHIBITS Copy of Ordinance Linda Ratliff Director of Economic Development Prepared by: Barbara Ross Community Development Administrator S:\Our Documents\Ordinances\05\634 Prairie Sale Ord.doc ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE SALE OF REAL PROPERTY LOCATED AT 634 E. PRAIRIE STREET AS A PART OF THE CITY'S INFILL NEW CONSTRUCTION PROGRAM FOR AFFORDABLE HOUSING FOR SALE TO LOW-MODERATE INCOME BUYERS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, in the 2003 Action PIan for Housing and Community Development, approved implementation and funding for an Infill New Construction Program for the benefit of low-moderate income homes (the "Program"); and WHEREAS, the Program which was approved for implementation by City Council specified the acquisition of vacant properties for the purpose of new affordable housing construction; and WHEREAS, the subject property is commonly known as 634 E. Prairie Street which is more particularly described as a parcel or tract of land containing approximately .064 acre, and being a portion of Lot 1 & 4 (W45' Each), Block 6, Jasper Addition, as described in a deed dated December 13, 1967 from the Mount Calvary Baptist Church of Denton to Lucius A. Wilkerson, Et AI, recorded in Volume 560, page 384 of the Deed Records of Denton County, and being situated in the City of Denton, Denton County, Texas, and further described in document number 2003-6981 in the deed records of Denton County, Texas (the "Property"). WHEREAS, the City has previously acquired the Property (DCAD Parcel number R22134) as authorized by City of Denton Ordinance Number 2004-020 for the purpose ofinfill housing development for low-moderate income buyers; and WHEREAS, the sale of the Property to low-moderate income buyers is exempt from the requirements of Chapter 272 of the Local Government Code (the "Code") pursuant to Section 272.001(g) of the Code, which authorizes sales for less than fair market value for low-moderate income housing; and WHEREAS, the City Council finds that the sale of the Property to a low-moderate income buyer under the Program is a valid public purpose and is in the public interest; NOW THEREFORE, THE CITY 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 Property is hereby incorporated into the Program under which the City of Denton may acquire, improve and convey real property that is appropriate for new construction to promote conservation of Denton neighborhoods and provide affordable housing to low-moderate buyers. Page 1 S:\Our Documents\Ordinances\05\634 Prairie Sale Ord.doc SECTION 3. The City Manager, or his designee is hereby authorized to convey the Property to a qualified low-moderate income buyer on such terms and conditions and for such consideration as is required and authorized by the Program, without further City Council action. SECTION 4. 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: EDWIN M. SNYDER, INTERIM CITY ATTORNEY BY: Page 2 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Tom Shaw 349-7100 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas approving an agreement between the City of Denton and the Denton Record Chronicle; approving the expenditure of funds for the purchase of legal advertising services available from only one source in accordance with the provisions of the State law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3362-Agreement with the Denton Record Chronicle in the amount of $8.00 per column inch for an estimated award of $33,000). BID INFORMATION This is an annual agreement with the Denton Record Chronicle to publish legal notices for various City Departments that are required by law to do so. The advertising will be paid by departments such as: the City Manager's Office, City Secretary, Legal, Parks and Recreation, Planning, Police, Utility Administration and Purchasing. The Denton Record Chronicle is the only newspaper published and distributed within the City of Denton city limits; therefore, this is a sole source acquisition. Sole source supplies and/or services protected by copyrights or patents are exempt from the competitive bid process (Chapter 252 Texas Local Government Code). RECOMMENDA TION Award to the Denton Record Chronicle in the estimated amount of $33,000. PRINCIPAL PLACE OF BUSINESS Denton Record Chronicle Denton, TX ESTIMA TED SCHEDULE OF PROJECT This agreement is for a 12 month period beginning July 17,2005. FISCAL INFORMATION The using Departments will provide funding for this item. Agenda Information Sheet July 26, 2005 Page 2 Attachment 1: Retail Advertising Agreement l-AIS-File 3362 Respectfully submitted: ~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1 RETAIJ.. ADVRRTrSrNG AGREEMENT DENTON PUBLlSIITNG COMPANY; You tlre hen~hy allthorized to pl1bllsh advertilling for ~hc lmdcp,igned in lhe Dt'ntOlI Record-Chronicle, Demol! TIme, 1Y Chrollicle, D('ntml firlsiness Clltotlic/e, and/or The Grtlpt'vil1f SUll 1t-'-1 spcci~ku belnw: A minimum of ..4 t}()() inchcsnnsertions per mOlluvyeal', t'or u period of ~ITlonLhs/w~i!I<... p~j,linning ~:.. \ 'f \ "l ) 8- ClO.5" ' for insertions which Iht: E1dvt:nhler agrees to r~1.Y ~hc r(lllowin~ fine/; r~r t;olumn inch, per pll liCll.rJOrJ; payabl::: monthly ~s u.~ed. Combillation Buy (Daily) $17.00 o~nblX)ipl1 fhlY (Sunday)$t8.00 Cornbination Buy W~d'll~sday PluJ.\ $22.00 '0 d.. Denwn RCleon.l~Chrnnicl~ (Daily) . VU Denton Record-Chrollick (SundliY) q .:1!-? Wedne:>di.lY Plus ' TO Denton Time . TV Chrnnicle Denton Business Chronicle The Grl:l.pcvinc Sun (Pickup Rate) ~S,oO Oi:nton 'County Murning New:; (D.lily) .If; 15,00 Denton County Morning News (S~mduy) ~ The terms of rhis agreemenl Ufe based on cnsh widl ol'de1' 0(' thiny day ~co~nls Wilh apprclVed cn=clit ny the. b\lSineM office of Del'1tOli Puh1i~hing Company. AU rates ar~ nct, No rebaleii ("ur lIccumuli-llcd lineage, lnil;..! Th.i1< a&1'eern~nl may he ll!nninated by either party for allY tea~on allUly lime. [f !.his agreement is term.inated by either party. a termiouriun l'urc:hargc. equalLO the difference between CUrrent opc::n ra\.e and advertiller agreement rate. for all advertising placed under u,~ l~rms ur lhis .1greemenL wlll be added to lhe liIxl\le nameu advertiser's hillin&:. If at. the end of the term of thi~ agreemeot, advcniscr hOlS r<tilcd to meellineage commitmellt. Pellton Publi~hing Cumpany will bill adverli!olCf fClf lh~ b<tlam:e of tile ag.reement Or the raw difference nOIsed on accunul1ated lilleage, whichever i~ lhc le:i~cr llmuunl. Initial DepTh ReC[ujremenL'i-Afl~ ad running more tha.n 18-112 inches in depth will b~ chilfgcd ll.,'l 2l~1/4 inch~~ in depth, Inllilll Re~ij~~IJ'.or Plllcllmunt-Wc try co comply with cu.swmel' sectimr 4lf pllgC wqucsL'l_ However placement elm only ne gUllrul1teed wilh j.\ 35% CO&t of nd chLl.tgc applied. : , Illhilll Ermr,'l ~n~ Ac1justments- Plea..'lC: check Ylll-lr ad the first day it runs to see tha.t all infonnaLion i:-; correcl. Thill w1l1 ensure your ad is e.xactly whal you wauL rcad~r~ w :;.c,w. n~nlon Publishing. Company u.'1!iU[TlCS nO Te.~punliiplliLy fur CrTllfli llPpeilrins on odp,inill copy subrnilled by advertil'lef~ or his ;ilancy or npproved proof uf copy (oltcepL proof corrections). w~ must LilI1l.L 01.11' f;:sponsibility, if an}!, to the charge fllr lhe !lp'.Ice. and catll~01 be l:e~pon!.lible fur inCllm:cL ;His after lhe first day of publication. Any errors or changes .IIlWil be repnJ1ed to ~ates department the foUowlng bm:inc....s d:.!y. Claiml-; [or crr(\f!l.ln hilting mm;t be made within 30 day!oi of dlilt of invoice; Olherw.ise. such cla.lln.~ will ~Ol b~ consiuered. lnidal Pruufs f CODY and 1 ,l1Y011l Changes - Upon request, pr(lof~ will he delivered to the advertiser provided [he ad was submiued pr\(lf La deadline and the ad is 20 inches at larger- Copy or layuut changes totalling 25% or mace of [he ad wil1 be subjecltu ll. proclLlction surcllarge or 35% of lhc cosl of Qlc ad.. . . , " [lUtlltl 1'e$lrllheer.:;;- Tearsheers ute availabk upon request at no cbarge. up [0 five (5) tearsheet.."i of each ad. Additinnlillearnheel.,'i' mny 1 be re'fU\;,~l.cd fOf .\ charge of 25\t eaell. Any tequell~ mlltl~ 45 c1.1YIi "ner publication date will be filled :-Jubj~Cl W availanilily. If nu pap~r lli Olvallable, a microfilm copy and r~"tilihcr~ i1ffiduvit may be sub!lututed, minimum chllrg~. $2.0, lbarl'lhccl.s will be mtUled a~ !.he end (If the month umeblS otherwise f\.-"Cjueli~ccl 1,,'Liul Cant:ullallim - Adc: cancelled afle(' deadline will he nilll:Q for the "mount ot' space reserved by uUvcrtilicr. ~ ~w "his agreement is valid and bi ri'ding llpon el(~Ulion and iH made subject to the regulatioll~ covering acce.pmnce and (ll.lhllcation of advertising wiIh the DENTON PUBUSHING COMPANY: . Ci \- i of D~n+n0 a\-5 f. (YlLt.inD~~ 1)~ 'f'-+O,", I Tt '1 ~ 1..0 I Advdl1.isel' Company Name Strl}et Addre.'iS Mailing Address City/Stat~JZip Code Phone Number Name Clr Au~h(lrizect Agcntw Tide. of Aglml SlgnaruL'e of Agl:nL Approved by . . _. Date : ~ ~ I i - - ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON RECORD CHRONICLE; APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF LEGAL ADVERTISING SERVICES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF THE STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3362-AGREEMENT WITH THE DENTON RECORD CHRONICLE IN THE AMOUNT OF $8.00 PER COLUMN INCH FOR AN ESTIMATED AWARD OF $33,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 3362 Denton Record Chronicle $8/column in. SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWINM. SNYDER, CITY ATTORNEY ~~O-Fild"2 ~ AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Vance Kemler 349-8444 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance approving the expenditure of funds for the purchase of the Caterpillar Computer Aided Earthmoving System (CAES) software package available from only one source in accordance with the provision for State Law exempting such purchases from requirements of competitive bids; and providing an effective date (File 3363-Purchase of a Computer Aided Earthmoving System to Holt CAT in the amount of $74,620). BID INFORMATION At their meeting of February 18, 2003, the City Council awarded the purchase of a Caterpillar D7R landfill dozer equipped with a Caterpillar CAES system, which included the base station, wireless antenna infrastructure, software, and the radio controlled on board computer system for one machine. The City Council approved the purchase of the CAES system for the Landfill's AI-Jon Compactor on January 6, 2004. With the CAES system, the field operators have moved from relying on survey stakes and flags to define and manage the work area, to having an electronic plan available in the machine cab. This ensures proper waste placement, more efficient operations, and optimum compaction. With real time grade/slope information the operator better performs operations to maximize airspace utilization. Additionally the CAES system permits the identification of site-specific storage areas for all materials requiring a record of their placement. At their meeting of December 7, 2004, the City Council awarded the purchase of a used 826 Caterpillar Compactor from the City of Brownwood, Texas. The Caterpillar CAES system requested for purchase would be installed on this machine, providing both of the Landfill's compactors with this landfill management technology. This is the only system fully compatible with the system currently installed on other landfill equipment. The CAES system is only available from Holt CAT and is therefore considered a sole source item. PRIOR ACTIONNIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utility Board approved this at its July 11,2005 meeting. Agenda Information Sheet July 26, 2005 Page 2 RECOMMENDA TION Award to Holt CAT in the amount of $74,620. PRINCIPAL PLACE OF BUSINESS Holt CAT Ft Worth, TX ESTIMA TED SCHEDULE OF PROJECT The Computer Aided Earthmoving System will be delivered and installed on the compactor within 90 days of receipt of order. FISCAL INFORMATION This item will be funded from account 660041584.1350.30100 Respectfully submitted: ~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Sole Source Letter Attachment 2: Quote from Holt CAT l-AIS-File 3363 Attachment 1 . '-' -. -', . :',." .'- ,.....' '," -.... -." '--" - ,'. - - -. ".. '-., ',.. '. " ,'-,'. ,,' ".' -"."'- ..,.-....- -. '-,.'....... .' .- - - - - - - - .---. . - -' "'-"'~':""--"'E""Z '.,- ',' , 'Y~.' ~,':'" ." . _ '- . i. _ . .:.'-' . '. --" . .' -" , "'.- '."',~, , '... . " -,'",' " . ." - . . . -' .. , . '-' .'. , . ~ '. ,. . :....' ',_". _ 'c '._ __ '_.. .... ..-.~. ..' . .. '- . .' . '." ,-. .-. . -- ...-' .'_._", "'. ' _. c.' . '.,,} ...... "-. ..' .::' :.it: ' . '. c",-. ., ""_. .'. ^-. ".,'," -, " , - - n__' '," . ,'". '.~--- ,0:' ,'. . .__'_ C'~""_' , .- ~.:;,; ............ III .- - ." ,-, ". ' . - '." -,'.'.." - - ~ -- -' - ',:, ..', :;;',,~~~:.'~.. ~ :.':.~. ',_ '.',0",-'-' >':::-:;..<....'_ "::<} <,:>.-:_ '>';(, ,,:-':-><:::;: ........ '::.:..,<.<. .-.<,',".<':,-- I :.';_:_-:~_:.:. :>--;_',:--'::~ '>';.: {-::":" ..~.~t:__:~:,:,-;_:_.,c:_:_';_~:<~:~t,:;:\~~;;~/; . "/(^~" ""/i\~"'CC'{{>'''''''C: . -f-:'-' '" " ... .'_,', -, ~__'-_ "':"._n.' ,- '. y";'._/-.c,....'., San Antonio · Austin · Corpus Christi · Dallas' Ft Worth · Laredo' Longview' Texarkana' Tyler' Victoria' Waco · Weslaco July 5, 2005 Tom Shaw City of Denton Purchasing Department 804 Texas St. Denton, TX 76201 Dear Mr. Shaw, Attached is a copy of a quotation requested by and delivered to the City's Landfill. Although the quotation has expired, we are able to revise and extend the quote until July 29, 2005. The CAESultra On-Board system quoted is the same model as the systems on the Landfill's Cat D7R dozer and the Al Jon compactor, and is the only computer aided system capable of fully interfacing with the CAESultra Office Software currently in use at the City's Landfill. This technology is designed by and is an exclusive of Caterpillar. HoltCA T appreciates the opportunity of providing this quote. Please call me at (972) 742-6964 if you have any questions. Jo ie Terrell les Representative cc: Karen Smith 549 North Jim Wright Freeway' Ft Worth, TX 76108.1447 · (817) 246-6651 · FAX (817) 367-0119 www.holttexas.com Attachment 2 III San Antonio Austin Corpus Christi Dallas Ft Worth Laredo Longview Texarkana Tyler Victoria Waco Weslaco March 10,2005 City of Denton Landfill 1100 South Mayhill RD Denton, TX 76208 QUOTATION Caterpillar Computer Aided Earthmoving System: CAES Vehicle System One 900MHZ Radio Shipping Installation: By Caterpillar Factory Representatives at City of Denton Landfill on the City's Caterpillar 826 Compactor, sn: 7LN757. Local Dealer field service time, if needed, will be charged at published rates. Support Agreement: 24 hour Technical Support (by phone) Software Upgrades Firmware Upgrades The Support Agreement is for the first l2-month period begimring at the end of the software warranty period and is renewable annually through Caterpillar. Support Agreement rates to be determined at the time of renewal. Warranty: Software - 90 days Hardware - 1 year Quote Sale Price $74,620 Terms: Order must be received by Holt CAT by April 15, 2005 System to be invoiced from date of shipment to the City of Denton Payment due 30 days from date of invoice 549 North Jim Wright Freeway Ft Worth, TX 76108.1447 (817) 246.6651 www.holttexas.com FAX (817) 367-0119 ORDINANCE NO. AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF THE CATERPILLAR COMPUTER AIDED EARTHMOVING SYSTEM (CAES) SOFTWARE P ACKAGE AVAILABLE FROM ONL Y ONE SOURCE IN ACCORDANCE WITH THE PROVISION FOR STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE (FILE 3363-PURCHASE OF A COMPUTER AIDED EARTHMOVING SYSTEM TO HOLT CAT IN THE AMOUNT OF $74,620). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 3363 Holt CAT $74,620 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWINM. SNYDER, CITY ATTORNEY ~~O-Fild"3 ~ AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Curt Arndt 349-7342 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance of the City of Denton accepting competitive bids and awarding a three year contract for traffic signal construction for the City of Denton Traffic Division; providing for the expenditure of funds therefore; and providing an effective date (Bid 3340- Three Year Contract for Traffic Signal Construction awarded to lowest responsible bidder, Durable Specialties, Inc. in the annual estimated amount of $100,000). BID INFORMATION This bid is for a three-year contract to supply all labor, supervIsIOn, tools and equipment necessary for the construction of traffic signals utilizing City of Denton and Texas Department of Transportation specifications. The City of Denton will supply all hardware including poles, signal heads, wire, and signs. RECOMMENDA TION Award to the lowest responsible bidder, Durable Specialties, Inc., in the estimated annual amount of $100,000. PRINCIPAL PLACE OF BUSINESS Durable Specialties, Inc. Duncanville, Texas ESTIMA TED SCHEDULE OF PROJECT This price agreement will be in effect for a period of three years from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. FISCAL INFORMATION These items will be funded from account 350132446.1360.43510. Agenda Information Sheet July 26, 2005 Page 2 Respectfully submitted: ~~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet l-AIS-BID 3340 Bid #3340 Attachment 1 Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Vendor Barco Construction, Durable Inc. Specialties, Inc. Principle Place of Business Denton, TX Duncanville, TX 1 400 TRENCH/BACKFILL/ASPHAL T 2"WIDE - 24"DEPTH $8.30 $4.00 (MIN) LINEAR FT. 2 400 TRENCH/BACKFILL/ASPHAL T 3"WIDE - 24"DEPTH $8.30 $4.00 (MIN) LINEAR FT. 3 400 TRENCH/BACKFILL/ASPHAL T 4"WIDE - 24"DEPTH $8.30 $4.00 (MIN) LINEAR FT. 4 400 TRENCH/BACKFILL/CONCRETE 2"WIDE - 24" DEPTH $12.10 $6.00 (MIN) LINEAR FT. 5 400 TRENCH/BACKFILL/CONCRETE 3"WIDE - 24" DEPTH $12.10 $6.00 (MIN) LINEAR FT. 6 400 TRENCH/BACKFILL/CONCRETE 4"WIDE - 24" DEPTH $12.10 $6.00 (MIN) LINEAR FT. 7 400 TRENCH/BACKFILL/DIRT 2"WIDE - 24" DEPTH (MIN) $0.50 $3.50 LINEAR FT. 8 400 TRENCH/BACKFILL/DIRT 3"WIDE - 24" DEPTH (MIN) $0.50 $3.50 LINEAR FT. 9 400 TRENCH/BACKFILL/DIRT 4"WIDE - 24" DEPTH (MIN) $0.50 $3.50 LINEAR FT. 10 400 TRENCH/BACKFILL/SOD 2"WIDE - 24" DEPTH (MIN) $4.15 $3.60 LINEAR FT. 11 400 TRENCH/BACKFILL/SOD 3"WIDE - 24" DEPTH (MIN) $4.15 $3.60 LINEAR FT. 12 400 TRENCH/BACKFILL/SOD 4"WIDE - 24" DEPTH (MIN) $4.15 $3.60 LINEAR FT. 13 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $4.55 $3.50 2"WIDE - 24" DEPTH (MIN) LINEAR FT. 14 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $4.55 $3.50 3"WIDE - 24" DEPTH (MIN) LINEAR FT. 15 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $4.55 $3.50 4"WIDE - 24" DEPTH (MIN) LINEAR FT. 16 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $5.85 $4.00 2"WIDE - 24" DEPTH (MIN) LINEAR FT. 17 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $5.85 $4.00 3"WIDE - 24" DEPTH (MIN) LINEAR FT. 18 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $5.85 $4.00 4"WIDE - 24" DEPTH (MIN) LINEAR FT. 19 40 POTHOLlNG IN DIRT 12"WIDE - 30" OR LESS DEEP $120.00 $75.00 20 40 POTHOLlNG IN DIRT 12"WIDE - 31" - 48" OR LESS $120.00 $75.00 DEEP 21 40 POTHOLlNG/ASPHAL T UP TO 7.75" - 12"WIDE - 30" $120.00 $100.00 OR LESS DEEP 22 40 POTHOLlNG/ASPHAL T UP TO 7.75" - 12"WIDE - 31" - $120.00 $100.00 48" OR LESS DEEP 23 40 POTHOLlNG/ASPHAL T 8" to 11.75" - 12"WIDE - 30" OR $120.00 $100.00 LESS DEEP 24 40 POTHOLlNG/ASPHAL T 8" to 11.75" - 12"WIDE - 31" - $120.00 $100.00 48" OR LESS DEEP 25 40 POTHOLlNG/ASPHAL T 12" to 15" - 12"WIDE - 30" OR $120.00 $100.00 LESS DEEP 26 40 POTHOLlNG/ASHPAL T 12" TO 15" -12" WIDE - 31"- $120.00 $100.00 48" OR LESS DEEP 27 30 PULL BOX WITH CONCRETE APRON $600.00 $480.00 INSTALL/INCLUDING CONDUIT TIE IN Bid #3340 Attachment 1 Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Vendor Barco Construction, Durable Inc. Specialties, Inc. Principle Place of Business Denton, TX Duncanville, TX 28 30 PULL BOX REMOVAL $600.00 $50.00 29 6 INSTALL CABINET FOUNDATION $2,000.00 $2,000.00 30 6 REMOVE CABINET FOUNDATION $2,000.00 $200.00 31 6 INSTALL TRAFFIC SIGNAL CABINET $500.00 $5,000.00 32 6 REMOVE TRAFFIC SIGNAL CABINET $500.00 $100.00 33 2000 INSTALL 2" SCHEDULE 80 PVC $0.47 $3.50 34 2000 INSTALL 3" SCHEDULE 80 PVC $0.55 $3.50 35 2000 INSTALL 4" SCHEDULE 80 PVC $0.60 $3.50 36 8 PEDESTRIAN POLE INSTALL $100.00 $250.00 37 8 PEDESTRIAN POLE REMOVE $100.00 $50.00 38 8 INSTALL STRAIN POLE $700.00 $550.00 39 8 STRAIN POLE (WOOD) INSTALL WITH CONCRETE $1,040.00 $1,000.00 AND GUY WIRES 40 8 STRAIN POLE (WOOD) REMOVE WITH CONCRETE $1,040.00 $250.00 AND GUY WIRES 41 8 INSTALL TRAFFIC SIGNAL POLE SHAFTS (VARIOUS $1,025.00 $1,000.00 SIZES) 42 8 REMOVE TRAFFIC SIGNAL POLE SHAFTS(VARIOUS $1,025.00 $200.00 SIZES) 43 2000 INSTALL SPAN WIRE $2.00 $2.50 44 8 MAST ARM INSTALL 15'-29' $750.00 $50.00 45 8 MAST ARM INSTALL 30'-39' $750.00 $50.00 46 8 MAST ARM INSTALL 40'-49' $750.00 $50.00 47 8 MAST ARM INSTALL 50'-55' $750.00 $75.00 48 8 MAST ARM REMOVE 15'-29' $750.00 $50.00 49 8 MAST ARM REMOVE 30'-39' $750.00 $50.00 50 8 MAST ARM REMOVE 40'-49' $750.00 $50.00 51 8 MAST ARM REMOVE 50'-55' $750.00 $50.00 52 8 MAST ARM RESET $375.00 $250.00 53 32 PEDESTRIAN SIGNAL HEAD INSTALL/COUNTDOWN $320.00 $150.00 54 32 PEDESTRIAN SIGNAL HEAD REMOVE $150.00 $20.00 55 32 PEDESTRIAN PUSH BUTTON INSTALL $150.00 $50.00 56 32 PEDESTRIAN PUSH BUTTON REMOVE $75.00 $10.00 57 32 PEDESTRIAN PUSH BUTTON STATION HOUSING $220.00 $50.00 INSTALL Bid #3340 Attachment 1 Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Vendor Barco Construction, Durable Inc. Specialties, Inc. Principle Place of Business Denton, TX Duncanville, TX 58 32 PEDESTRIAN PUSH BUTTON STATION HOUSING $110.00 $10.00 REMOVE 59 16 PEDESTRIAN INSTRUCTIONAL SIGN INSTALL $100.00 $5.00 60 INSTALL LOOP DETECTOR $3,000.00 $5.75 61 32 INSTALL MICRO LOOP $375.00 $300.00 62 INSTALL TELEPHONE INTERCONNECT $1.75 $2.00 63 INSTALL OPTICOM LEAD IN WIRE $1.75 $2.00 64 12 OPTICOM SENSOR INSTALL $125.00 $150.00 65 12 VIDEO DETECTOR AERIAL MOUNT $125.00 $350.00 66 INSTALL VIDEO DETECTOR CABLE $1.75 $2.00 67 INSTALL #6 BARE BOND GROUND WIRE $1.50 $1.00 68 40 BUILD/lNSTALL 3 -SECTION SIGNAL HEAD WITH $100.00 $350.00 BACKPLATE 69 40 REMOVE 3 -SECTION SIGNAL HEAD WITH $100.00 $50.00 BACKPLATE 70 20 BUILD/lNSTALL 5 - SECTION SIGNAL HEAD WITH $125.00 $380.00 BACKPLATE 71 20 REMOVE 5 - SECTION SIGNAL HEAD WITH $125.00 $50.00 BACKPLATE 72 20 BUILD/lNSTALL 5 - SECTION CLUSTER(DOGHOUSE) $350.00 $380.00 SIGNAL HEAD WITH BACKPLATE 73 20 REMOVE 5 - SECTION CLUSTER(DOGHOUSE) $225.00 $50.00 SIGNAL HEAD WITH BACKPLATE 74 6 TRAFFIC CONFIRMATION LIGHT WITH CLEAR GLOBE $500.00 $150.00 AND MOUNTING HARDWARE 75 4 INSTALL OMNI ANTENNA, DB PRODUCTS DB589 $425.00 $450.00 76 4 INSTALL YAGI ANTENNA, MAXRAD MYA93012 $425.00 $455.00 77 INSTALL 19/20 CONDUCTOR SIGNAL CABLE $3.25 $2.00 78 REMOVE 19/20 CONDUCTOR SIGNAL CABLE $2.75 $1.00 79 INSTALL 7 CONDUCTOR SIGNAL CABLE $1.75 $2.00 80 REMOVE 7 CONDUCTOR SIGNAL CABLE $1.50 $2.00 81 INSTALL LOOP LEAD IN 4 CONDUCTOR CABLE $3.25 $2.00 82 REMOVE LOOP LEAD IN 4 CONDUCTOR CABLE $1.75 $2.00 83 INSTALL #6 SERVICE CABLE $2.20 $2.00 84 INSTALL VIDEO CABLE $1.20 $3.00 Bid #3340 Attachment 1 Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Vendor Barco Construction, Durable Inc. Specialties, Inc. Principle Place of Business Denton, TX Duncanville, TX 85 INSTALL ANTENNA CABLE LMR 400 OR EQUAL $2.00 $3.00 IN::; IALL,JU VVI II KUU,GAGt::, 86 12 CONCRETE FORMS AND 90 DEGREE PVC $2,300.00 $2,000.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 87 12 REMOVE 30" CAISONS. $250.00 $225.00 INSTALL 36" CAISONS WITH GROUND ROD,CAGE, 88 12 CONCRETE FORMS AND 90 DEGREE PVC $3,375.00 $2,200.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 89 12 REMOVE 36" CAISONS. $250.00 $200.00 INSTALL 48" CAISONS WITH GROUND ROD,CAGE, 90 12 CONCRETE FORMS AND 90 DEGREE PVC $5,250.00 $4,250.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 91 12 INSTALL BACK LITE STREET NAME SIGNS $85.00 $200.00 92 12 REMOVE 48" CAISON $250.00 $200.00 93 12 INSTALL STREET NAME SIGNS (NON LITE) $75.00 $200.00 94 32 INSTALL REGULATORY SIGNS ON MAST ARM $175.00 $100.00 95 6 INSTALL WIND DAMPENER ON MAST ARM $85.00 $50.00 96 24 PICK UP POLES AND MAST ARMS AND DELIVER TO $300.00 $100.00 JOB SITE 97 3000 DIRECTIONAL BORE 4" W/RECEIVER PITS 36" MIN $12.00 $11.00 DEPTH 98 1500 DIRECTIONAL BORE 2" W/RECEIVER PITS 36" MIN $10.00 $11.00 DEPTH SHIPMENT 5 DAYS ADDENDUM #1 YES YES SAFETY RECORD QUESTIONNAIRE YES YES ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON ACCEPTING COMPETITIVE BIDS AND AWARDING A THREE YEAR CONTRACT FOR TRAFFIC SIGNAL CONSTRUCTION FOR THE CITY OF DENTON TRAFFIC DIVISION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3340-THREE YEAR CONTRACT FOR TRAFFIC SIGNAL CONSTRUCTION AWARDED TO LOWEST RESPONSIBLE BIDDER, DURABLE SPECIALTIES, INC. IN THE ANNUAL ESTIMATED AMOUNT OF $100,000). 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 therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation offunds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER VENDOR AMOUNT 3340 Durable Specialties, Inc. Exhibit A SECTION 2. 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. Should the City and the winning bidder(s) 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 a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY. ~ 3-0RD-BID 3340 Bid #3340 Exhibit A Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Durable Specialties, Inc. Principle Place of Business Duncanville, TX 1 400 TRENCH/BACKFILL/ASPHAL T 2"WIDE - 24"DEPTH $4.00 (MIN) LINEAR FT. 2 400 TRENCH/BACKFILL/ASPHAL T 3"WIDE - 24"DEPTH $4.00 (MIN) LINEAR FT. 3 400 TRENCH/BACKFILL/ASPHAL T 4"WIDE - 24"DEPTH $4.00 (MIN) LINEAR FT. 4 400 TRENCH/BACKFILL/CONCRETE 2"WIDE - 24" DEPTH $6.00 (MIN) LINEAR FT. 5 400 TRENCH/BACKFILL/CONCRETE 3"WIDE - 24" DEPTH $6.00 (MIN) LINEAR FT. 6 400 TRENCH/BACKFILL/CONCRETE 4"WIDE - 24" DEPTH $6.00 (MIN) LINEAR FT. 7 400 TRENCH/BACKFILL/DIRT 2"WIDE - 24" DEPTH (MIN) $3.50 LINEAR FT. 8 400 TRENCH/BACKFILL/DIRT 3"WIDE - 24" DEPTH (MIN) $3.50 LINEAR FT. 9 400 TRENCH/BACKFILL/DIRT 4"WIDE - 24" DEPTH (MIN) $3.50 LINEAR FT. 10 400 TRENCH/BACKFILL/SOD 2"WIDE - 24" DEPTH (MIN) $3.60 LINEAR FT. 11 400 TRENCH/BACKFILL/SOD 3"WIDE - 24" DEPTH (MIN) $3.60 LINEAR FT. 12 400 TRENCH/BACKFILL/SOD 4"WIDE - 24" DEPTH (MIN) $3.60 LINEAR FT. 13 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $3.50 2"WIDE - 24" DEPTH (MIN) LINEAR FT. 14 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $3.50 3"WIDE - 24" DEPTH (MIN) LINEAR FT. 15 400 TRENCH/BACKFILL/ASPHAL T/NO RESTORATION $3.50 4"WIDE - 24" DEPTH (MIN) LINEAR FT. 16 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $4.00 2"WIDE - 24" DEPTH (MIN) LINEAR FT. 17 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $4.00 3"WIDE - 24" DEPTH (MIN) LINEAR FT. 18 400 TRENCH/BACKFILL/CONCRETE/NO RESTORATION $4.00 4"WIDE - 24" DEPTH (MIN) LINEAR FT. 19 40 POTHOLlNG IN DIRT 12"WIDE - 30" OR LESS DEEP $75.00 20 40 POTHOLlNG IN DIRT 12"WIDE - 31" - 48" OR LESS $75.00 DEEP 21 40 POTHOLlNG/ASPHAL T UP TO 7.75" - 12"WIDE - 30" $100.00 OR LESS DEEP 22 40 POTHOLlNG/ASPHAL T UP TO 7.75" - 12"WIDE - 31" - $100.00 48" OR LESS DEEP 23 40 POTHOLlNG/ASPHAL T 8" to 11.75" - 12"WIDE - 30" OR $100.00 LESS DEEP 24 40 POTHOLlNG/ASPHAL T 8" to 11.75" - 12"WIDE - 31" - $100.00 48" OR LESS DEEP 25 40 POTHOLlNG/ASPHAL T 12" to 15" - 12"WIDE - 30" OR $100.00 LESS DEEP 26 40 POTHOLlNG/ASHPAL T 12" TO 15" -12" WIDE - 31"- $100.00 48" OR LESS DEEP 27 30 PULL BOX WITH CONCRETE APRON $480.00 INSTALL/INCLUDING CONDUIT TIE IN Bid #3340 Exhibit A Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Durable Specialties, Inc. Principle Place of Business Duncanville, TX 28 30 PULL BOX REMOVAL $50.00 29 6 INSTALL CABINET FOUNDATION $2,000.00 30 6 REMOVE CABINET FOUNDATION $200.00 31 6 INSTALL TRAFFIC SIGNAL CABINET $5,000.00 32 6 REMOVE TRAFFIC SIGNAL CABINET $100.00 33 2000 INSTALL 2" SCHEDULE 80 PVC $3.50 34 2000 INSTALL 3" SCHEDULE 80 PVC $3.50 35 2000 INSTALL 4" SCHEDULE 80 PVC $3.50 36 8 PEDESTRIAN POLE INSTALL $250.00 37 8 PEDESTRIAN POLE REMOVE $50.00 38 8 INSTALL STRAIN POLE $550.00 39 8 STRAIN POLE (WOOD) INSTALL WITH CONCRETE $1,000.00 AND GUY WIRES 40 8 STRAIN POLE (WOOD) REMOVE WITH CONCRETE $250.00 AND GUY WIRES 41 8 INSTALL TRAFFIC SIGNAL POLE SHAFTS (VARIOUS $1,000.00 SIZES) 42 8 REMOVE TRAFFIC SIGNAL POLE SHAFTS(VARIOUS $200.00 SIZES) 43 2000 INSTALL SPAN WIRE $2.50 44 8 MAST ARM INSTALL 15'-29' $50.00 45 8 MAST ARM INSTALL 30'-39' $50.00 46 8 MAST ARM INSTALL 40'-49' $50.00 47 8 MAST ARM INSTALL 50'-55' $75.00 48 8 MAST ARM REMOVE 15'-29' $50.00 49 8 MAST ARM REMOVE 30'-39' $50.00 50 8 MAST ARM REMOVE 40'-49' $50.00 51 8 MAST ARM REMOVE 50'-55' $50.00 52 8 MAST ARM RESET $250.00 53 32 PEDESTRIAN SIGNAL HEAD INSTALL/COUNTDOWN $150.00 54 32 PEDESTRIAN SIGNAL HEAD REMOVE $20.00 55 32 PEDESTRIAN PUSH BUTTON INSTALL $50.00 56 32 PEDESTRIAN PUSH BUTTON REMOVE $10.00 57 32 PEDESTRIAN PUSH BUTTON STATION HOUSING $50.00 INSTALL Bid #3340 Exhibit A Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Durable Specialties, Inc. Principle Place of Business Duncanville, TX 58 32 PEDESTRIAN PUSH BUTTON STATION HOUSING $10.00 REMOVE 59 16 PEDESTRIAN INSTRUCTIONAL SIGN INSTALL $5.00 60 INSTALL LOOP DETECTOR $5.75 61 32 INSTALL MICRO LOOP $300.00 62 INSTALL TELEPHONE INTERCONNECT $2.00 63 INSTALL OPTICOM LEAD IN WIRE $2.00 64 12 OPTICOM SENSOR INSTALL $150.00 65 12 VIDEO DETECTOR AERIAL MOUNT $350.00 66 INSTALL VIDEO DETECTOR CABLE $2.00 67 INSTALL #6 BARE BOND GROUND WIRE $1.00 68 40 BUILD/lNSTALL 3 -SECTION SIGNAL HEAD WITH $350.00 BACKPLATE 69 40 REMOVE 3 -SECTION SIGNAL HEAD WITH $50.00 BACKPLATE 70 20 BUILD/lNSTALL 5 - SECTION SIGNAL HEAD WITH $380.00 BACKPLATE 71 20 REMOVE 5 - SECTION SIGNAL HEAD WITH $50.00 BACKPLATE 72 20 BUILD/lNSTALL 5 - SECTION CLUSTER(DOGHOUSE) $380.00 SIGNAL HEAD WITH BACKPLATE 73 20 REMOVE 5 - SECTION CLUSTER(DOGHOUSE) $50.00 SIGNAL HEAD WITH BACKPLATE 74 6 TRAFFIC CONFIRMATION LIGHT WITH CLEAR GLOBE $150.00 AND MOUNTING HARDWARE 75 4 INSTALL OMNI ANTENNA, DB PRODUCTS DB589 $450.00 76 4 INSTALL YAGI ANTENNA, MAXRAD MYA93012 $455.00 77 INSTALL 19/20 CONDUCTOR SIGNAL CABLE $2.00 78 REMOVE 19/20 CONDUCTOR SIGNAL CABLE $1.00 79 INSTALL 7 CONDUCTOR SIGNAL CABLE $2.00 80 REMOVE 7 CONDUCTOR SIGNAL CABLE $2.00 81 INSTALL LOOP LEAD IN 4 CONDUCTOR CABLE $2.00 82 REMOVE LOOP LEAD IN 4 CONDUCTOR CABLE $2.00 83 INSTALL #6 SERVICE CABLE $2.00 84 INSTALL VIDEO CABLE $3.00 Bid #3340 Exhibit A Date: 6/28/05 Three-Year Contract for Traffic Signal Construction ITEM QTY. DESCRIPTION Vendor Durable Specialties, Inc. Principle Place of Business Duncanville, TX 85 INSTALL ANTENNA CABLE LMR 400 OR EQUAL $3.00 WIIH KUU,GAGt::, 86 12 CONCRETE FORMS AND 90 DEGREE PVC $2,000.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 87 12 REMOVE 30" CAISONS. $225.00 INSTALL 36" CAISONS WITH GROUND ROD,CAGE, 88 12 CONCRETE FORMS AND 90 DEGREE PVC $2,200.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 89 12 REMOVE 36" CAISONS. $200.00 INSTALL 48" CAISONS WITH GROUND ROD,CAGE, 90 12 CONCRETE FORMS AND 90 DEGREE PVC $4,250.00 SCHEDULE 40 ELBOW(TXDOT SPEC) AND CONCRETE. 91 12 INSTALL BACK LITE STREET NAME SIGNS $200.00 92 12 REMOVE 48" CAISON $200.00 93 12 INSTALL STREET NAME SIGNS (NON LITE) $200.00 94 32 INSTALL REGULATORY SIGNS ON MAST ARM $100.00 95 6 INSTALL WIND DAMPENER ON MAST ARM $50.00 96 24 PICK UP POLES AND MAST ARMS AND DELIVER TO $100.00 JOB SITE 97 3000 DIRECTIONAL BORE 4" W/RECEIVER PITS 36" MIN $11.00 DEPTH 98 1500 DIRECTIONAL BORE 2" W/RECEIVER PITS 36" MIN $11.00 DEPTH SHIPMENT ADDENDUM #1 YES SAFETY RECORD QUESTIONNAIRE YES AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Materials Management Questions concerning this acquisition may be directed to Sharon Mays 349-8487 ACM: Kathy DuBose .. SUBJECT Consider adoption of an Ordinance of the City of Denton accepting competItIve bids and awarding a contract for galvanized steel structures for Denton Municipal Electric; providing for the expenditure of funds therefore; and providing an effective date (Bid 3323-Galvanized Steel Structures for Hickory Substation awarded to lowest responsible bidder, LeHigh Utility Associates, Inc., in the amount of $66,616). (The Public Utility Board approved this item by a vote of 5-0). BID INFORMATION The Capital Improvement Program (CIP) contains projects to provide a new source to the west side of the 69kV transmission loop. The Hickory Substation is an existing substation located at the intersection of Bonnie Brae and Hickory streets. The Hickory Substation is the location where the new transmission line originating from the Iron Horse Substation will be connected into the 69kV loop. It is necessary to modify the Hickory Substation to accommodate this third transmission line. Bid #3323 is to provide the steel structures for the modification. The existing 69kV station is made up of three, two-column self-supporting structures with wire bus stretched between the structures. The bus and switches in the station do not have sufficient capacity to carry the electrical load that will flow through the station as a result of the new line. It was determined that reconfiguration of the station would be necessary from both structural and electrical perspectives and to provide space for future replacement of aging transformers and switchgear. The planning goal is to complete the Hickory Substation project prior to beginning the construction of the Iron Horse Interchange and Substation and modifying the Denton West Interchange. Circuit breakers have already been purchased and substation switches have already been approved for the Hickory Substation project. DME will provide labor and equipment for unloading, field assembly and installation of the steel structures. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) The Public Utility Board approved this item at its July 11,2005 meeting. Agenda Information Sheet July 26, 2005 Page 2 RECOMMENDA TION Award to the lowest responsible bidder, LeHigh Utility Associates, Inc., in the amount of $66,616. PRINCIPAL PLACE OF BUSINESS LeHigh Utility Associates, Inc. South Plainfield, New Jersey ESTIMA TED SCHEDULE OF PROJECT The steel structures can be delivered within ten weeks from date of receipt of order. FISCAL INFORMATION Funding for this project will be provided from approved CIP bond funds. Respectfully submitted: ~~ Tom Shaw, C.P.M., 349-7100 Purchasing Agent Attachment 1: Tabulation Sheet l-AIS-BID 3323 ..... - C Ol E ..c: u I'll ~ 10. .E In Q) 10. ::::I oIoJ U ::::I 10. LnoloJ oU) 0- N~ ..oIoJ M....U) N > '1:1 M-Q) ::::I N M ..., .- -w...C "I't'WlC Cl-~ l-Ic:(lC a:lC~ cXS Ole e .Q :O+-' _ lU Q) u $:~ U lU ,LL ~ U Q)--l Q)--l ...... (f) , e e 0 coZ '- lU f-;- .~ V) '- ._ ..0 O{E '- Q) , _ Ol ::J e ..c .C U Q) . (f) Q) ~ (j) .~ .- cXSg' >w >- ...... ' = V) z2 :J lU . ._ U ..cue Olo~ .- V) I V) ,5<( V)' '- Q) N . 'c U lU e >~ lU 19 C o .- oIoJ lC oIoJ In .Q ::::I U) eu v)' ...... '- Q) 0 ::E...... . lU U V) U e .Y. .C ........ '-..0 lU lU CLLL Q) Q) ...... (f) . e 0 oU ~ lU LL 10. o ~ .~ J: W '<t Z (J) 01 N l.C) e '<t .;:: N' Q) 19 co -Ill- ::i 0 0 Q)' ~ 0 s: 0 Q) N' e "- i5: -Ill- '<t o ...... l.C) ...... ...... '<t o ...... I o e' o ...... e lU U o o l.C) '<t l.C) co' ~ -Ill- co o ...... (V) .. z -5 :2' ::J Q) Qij:: (f) e lU 0:: o o ~ ...... ~ ~' ~ -Ill- '<t o ...... 0' 2' (Eo ......z V) Q) $: l.C) ~ o (J) ~ ...... "- -Ill- (V) co X I- o o o o ...... 0' "- -Ill- co lU e lU .::s:. '- lU >< Q) I- (V) o ...... N >- ...... o ~~ ...... lU I o o ~ ~ o (J)' (J) -Ill- ~ o ...... '<t co -0 '- -0 Q) Q) Q) 0.. ,......, .:t= V) N 0.. V) -0 .- Q) lU .::s:. e e ..c '- Q) lU lU V) ::J V) Q) .?: ...... .::s:. 3: V) V) Q) U Q) V) lU ...... ..0 ::J Q) Q) OlO '- 3: e ..0 0 ...... -0 ...... V) 'Vi Q) '- V) Qj ::J ..0 0 ~ CO E ..c -0 0 Q) '- "- U Q) ...... Q) CO V) 0 Q) e <;::: -0 V) lU 'u '- -0 '- Q) V) o Q) '- V) 0 U lU V)' Q) ..c- Q) ~ "- lU '- Q) 0.. u..o -0 0 0:: V) e E V) ::J 0 '- ~ '- ...... ...... "- ::J V) <( Q) 0 U 0.. Q) Q) ...... lU '----' V) 0 "- ::J U CO Q) 0.. .~ 2 ...... V) 0 '- Q) lU ...... U 'u '- e '- ...... (f) Q) e o..t) lU Q) 0 0 0.. '- .;:: 3: E ...... ..c Q) Qj '- eu u CL Qj -0 0..'- e u Q) Q) ...... Q) '- ._ 0 Q) ...... .:t= 0 ...... lU ..c .;:: <( '- (f) lU l- V) ..c (f) 0.. ...... ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF GAL V ANIZED STEEL STRUCTURES FOR DENTON MUNICIPAL ELECTRIC; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE (BID 3323-GAL V ANIZED STEEL STRUCTURES FOR HICKORY SUBSTATION AWARDED TO THE LOWEST RESPONSIBLE BIDDER, LEHIGH UTILITY ASSOCIATES, INC., IN THE AMOUNT OF $66,616). 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 therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation offunds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID NUMBER VENDOR AMOUNT 3323 LeHigh Utility Associates, Inc. $66,616 SECTION 2. 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. Should the City and the winning bidder(s) 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 a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. 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: EDWIN M. SNYDER, CITY ATTORNEY BY. ~ 3-0RD-BID 3323 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 CM/DCM/ACM: Fire Prevention Jon Fortune, Assistant City Manager ~ DEPARTMENT: SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, providing for the renaming of certain sections of West Prairie Street, Avenue A and Chestnut Streets which run adj acent to the UNT Parking Garage, Baptist Student Union and University Union to "Union Circle" with a street address designation of "One Union Circle"; and providing for an effective date. BACKGROUND The University of North Texas (UNT) has requested that the City rename certain sections of West Prairie Street, Avenue A and Chestnut Streets that run adjacent to UNT, the UNT parking garage, and the Baptist Student Union to "Union Circle." See the attached location maps. The University has provided letters of support (also attached) from the UNT parking garage, and the Baptist Student Union for the name change. Expenses associated with the name change will be the responsibility of UNT. The Historic Landmark Commission has considered this request and has passed it unanimously. OPTIONS 1. Approve the ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDA TION Staff recommends approval of the street name change. There are no foreseeable public safety issues and may improve easy recognition of the site in an emergency. There is no planned connectivity of the existing West Prairie Street and Chestnut Streets with West Prairie and Chestnut to the west of the campus. ESTIMATED PROJECT SCHEDULE Upon approval, street signs will be obtained and erected as soon as possible. PRIOR ACTIONIREVIEW The Historic Landmark Commission recommended approval on June 13,2005. ATTACHMENTS 'Y Location maps 'Y Historic Landmark Commission minutes June 13, 2005 'Y Letter from Richard Deter, Director of Police, Parking and Transportation 'Y Letter from John Pearce, Director of the Baptist Student Union Ministry 'Y Letter from Dan R. Martin, Owner of the UNT Parking Garage 'Y Background report provided by UNT Administration 'Y Ordinance Prepared by: Dean A. Bray Fire Protection Engineer-Associate Respectfully submitted: Ross Chadwick Fire Chief ~ CL~ II!'P '" ij tC . ~ t sc~ Q:~ 5t!tl Q:~ ~~ ^ ~ ~ i ~ ~ ~! ~~I ~ C) ~ ~ ~~ ~ ~I z C) ~ ::J "I ~ ~ ~~ Q) ~ ~~ ~ ~z too Q; "i:;,; ~o ~f! :;)~ in ~~p ~ h! ill f I II H ~ . ~~ll ~ IlluH H i~~1 U111!IUUf ;u I ful" .... u .... Minutes Historic Landmark Commission ~onday,JuneI3,2005 A regular meeting of the Historic Landmark Commission of the City of Denton was held in Denton Main Street Office Conference Room, located at 101 S. Locust, Suite 500, on Monday, June 13,2005, at 5:30 p.m. ~embers Present: Peggy Capps, Ann Hatch, Diana Hatch, Donna Morris, Darlene Mullenweg, and Ty Wood Staff ~embers: Julie Glover, Historic Preservation Officer/Main Street Manager; Alison Ortowski, City of Denton Others Present: Dean Bray, Salty Rishel, Aaron Wiethoff I. Call to order The meeting was called to order at 5:31 P.M. II. Consider approval of minutes of the regular meeting of ~ay 9, 2005. Capps made a motion to approve the minutes of May 9, 2005 with the following changes made: Diana Hatch added to the Members Present section and the following sentence under Item V, "Ambuehl then observed that the only proposed change to the building that could not easily be undone is the widening of the center widow" amended to read "Ambuehl then observed that the only proposed change to the building that could not easily be undone is the widening of the center window." The motion was seconded by Wood and carried unanimously. III. Hold a public hearing and take action on a Certificate of Appropriateness for 1816 N. Bell Avenue (roof - change from black composite to composite that resembles wood shake) Staff recommendation: Glover reported that staff recommends the project. Applicant: Not present In favor: None present Opposed: None present Mullenweg then closed the public hearing and opened the matter up to discussion among the Commissioners. Capps made a motion to approve the Certificate of Appropriateness for 1816 N. Bell. The motion was seconded by Morris and carried unanimously. IV. Consider street name change to certain sections of West Prairie Street, Avenue "A" and Chestnut Streets which run adjacent to the UNT Parking Garage, Baptist Student Union and University Union to "Union Circle" and make recommendation to City Council Dean Bray, Fire Protection Engineer with the City of Denton, addressed the Commission, noting that the City of Denton Fire Department has no opposition to the street name change. Capps then made a motion to recommend the street name change to the City Council. The motion was seconded by D. Hatch and carried unanimously. V. Hold a public hearing and take action on a Certificate of Appropriateness for 924 W. Oak (fence installation to front, side and rear) Staff recommendation: Glover reported that staff recommends the project. Applicant: Salty Rishel, contractor for the project, addressed the Commission, letting them know he was available to answer any questions. In favor: None present Opposed: None present Mullenweg then closed the public hearing and opened the matter up to discussion among the Commissioners. Mullenweg questioned Rishel as to the materials on the gate. Rishel responded that the gate would be wood on the outside with the frame on the inside. D. Hatch then made a motion to approve the Certificate of Appropriateness for 924 W. Oak, with the addition of approval of a sliding gate. The motion was seconded by A. Hatch and carried unanimously. VI. Hold a public hearing and take action on a Certificate of Appropriateness for 904 W. Oak (sidewalk installation) Staff recommendation: Glover reported that the owner of the home is elderly, has problems walking and needs to level the walkway to help with that problem. Staff recommended the project. Applicant: None present In favor: None present Opposed: None present Mullenweg then closed the public hearing and opened the matter up to discussion among the Commissioners. Mullenweg questioned whether or not there were limits to the width of the sidewalk. Glover noted that the COA requests a replacement of the walkway, not widening. Capps then made a motion to approve the replacement of the current walkway, located around the perimeter of the home near the landscaping. The motion was seconded by Morris and carried unanimously. VII. Hold a public hearing and take action on a Certificate of Appropriateness for 311 Mounts (window replacement) Staff recommendation: Glover passed out brochures containing examples of the proposed window. The proposed windows are wood frame, wood muttons with one pane of glass. Applicant: Aaron Wiethoff addressed the Commission, letting them know he was available to answer any questions. In favor: None present Opposed: None present Mullenweg then closed the public hearing and opened the matter up to discussion among the Commissioners. D. Hatch questioned whether the windows were vinyl coated. Wiethoff answered that the windows were wood frame and would be painted. Mullenweg asked Wiethoff if the new windows would the same style as the original with 9 panes over 9 panes. Wiethoff confirmed that the replacement windows would be the same style as the originals, with 9 panes over 9 panes. Capps then made a motion to approve replacement of the windows for 904 W. Oak with new, 9 over 9 all wood windows to match the existing north windows. The motion was seconded by Wood and carried unanimously. VIII. Receive Preservation Officer's report . Glover reported that Item VII for a balcony addition to 208 W. Oak was pulled from the agenda because the owner of the property had not given her approval of the project. . Evers House update: Glover reported that she had received an email from the City's Code Enforcement Department regarding their investigation of reports that the Evers House had multiple students leasing rooms there. The email she received listed several dates in July and September where the Code Enforcement Department had gone by the house due to a citizen complaint but found no violation. IX. Future agenda items . None at this time. X. Adjourn Mullenweg adjourned the meeting at 6:12 p.m. 2 UNNERSITYof NORTH TEXAS Police, Parking 6- Transportation May 16, 2005 Mr. Dean Bray Fire Protection Engineer - Associate City of Denton 221 N. Elm Street Denton, TX 76201 RE: Request to rename certain street sections to "Union Circle" Dear Mr. Bray, The University of North Texas requests that the City of Denton rename certain sections of West Prairie Street, Avenue "A", and Chestnut Streets which run adjacent to the UNT Parking Garage, Baptist Student Union, and University Union to "Union Circle" (see attached diagram). The University has advised its Board of Regents of this request, as well as, obtained the consent from the two known effected property owners, Baptist Student Ministry, and Martin Parking Systems, Inc. Additionally, the University Union requests a physical street address designation of "One Union Circle" if possible. Dean, thanks for your assistance and cooperation with this request. Please contact me if I can provide additional information. With best regards, ~ Richard Deter Director Attachments: diagram of area involved Letter from Baptist Student Union - 4/5/05 Letter from Martin Parking Systems - 3/28/05 UNT Board of Regents Background Report - 4/26/05 p.o. Box 310948. Denton, Texas 76203-0948. (940) 565-3000 Fax (940) 369-8788. TTY (800) RELAYTX. www.unt.edu/police Dean Bray RE: Street renaming - Union Circle May 16, 2005 Page two cc: Kelly Carpenter, City of Denton Dr. Richard Rafes, UNT Dr. Bonita Jacobs, UNT Jesse Davis, UNT Student Government Association David Hall, UNT Student Government Association Scott Kangas, UNT April 5, 2005 Baptist Student ~ i n i s try To Whom it may concern, University of North Texas The proposed street name change for Avenue A to Union Circle is a good change. The Baptist Student Ministry is in favor of this name change. SM~ John Pearce UNT BSM Director P.O. Box 310890 UNT Station Denton, TX 76203 (940) 387-6331 APi 12 AM10:32 e-mail bsm@unt.edu www.unt.edu/orgs/bsm Martin Parking Systems, Inc. 1807 North Elm Street #105 Denton, TX 76201 940-595-6703 March 28, 2005 Richard Deter Chief of Police UNT Police Department P.O. Box 310948 Denton, TX 76203 Dear Chief Deter: I found your phone presentation today, concerning changing the name of the streets that encircle the UNT Parking Garage, very interesting. I'm very supportive of changing the collective names of the campus/city streets bordering the parking garage on the north side, south side and west side to "Union Circle". The proposed name change is very appropriate in my opinion. The fact that the UNT Student Government has endorsed the name change makes it even more appealing to me. Please consider this letter as a vote in favor of the name change. Sincerely, ~e Dan R. Martin Owner, UNT Parking Garage lIAR 30 AMl1:09 UNIVERSITYof NORTH'lExAs SYSTEM I Background Report I Committee: Atlmini!li:.trj:ltivp./ Ar:::llipmir.s. Date Filed: ADril 26. 2005 Title: Request to City of Denton to rename certain sections of West Prairie Street, Avenue "A", and Chestnut Streets which run adjacent to the UNT Parking Garage, Baptist Student Union, University Union, etc. to "Union Circle" Background: Student Government Association (SGA) President, Jesse Davis, approached UNT administrators requesting that the above noted area be renamed to better reflect its location on campus and simplify street identification to a single name. Davis was requested to work with the SGA to develop a proposed name. UNT staffhave obtained written consent from non-UNT property owners who would be affected by the proposed street renaming (Baptist Student Union and UNT Parking Garage). UNT will formally request the City of Denton to consider making the proposed change. The proposed change is subject to approval and action by the City of Denton. Financial Analysis/History: There are no fiscal implications. Phil Diebel DIgIIIlI"'~bJPtilDIebeI > Df\I:CN..PhlOiebfi c. US. 0.. UNT S,..,." au.. au.-and "'- Allails boiihI: 2006.05.03 Il:lill:I52-OS'OO' Vice Chancellor for Finance Legal Review: This board item has been reviewed by the Office of the Vice Chancellor and General Counsel. Nancy Footer ~""'IlfNol...,"-r ON:CN",~F_.C.US.O.UNT~..m. .~~_eo::I6~'OO' Vice Chancellor/General Counsel Schedule: UNT will forward a request to make the proposed change to the City of Denton within the next 30 days. Recommendation: No action required -- information only. Recommended By: Richard S Rafe!';, Senior Vice Presitient for AtiministrMion Name and Title '.IlIgItoI~_bv_..poN Norval POhlo.N'CN._PoN.C'US.O. ~~~~.OU..Officeofthe DatI: 2005.05.0317:45:13 -05'00' '. _...... bv Lee Jadcson Lee Jacksorj.:r~:..':.:~;;,~o, -, Date: '~.05.04 08:43:<<J -OS'OO' President Chancellor S:\Our Documents\Ordinances\OS\Union Circle Name Change.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE RENAMING OF WEST PRAIRIE STREET, AVENUE A AND CHESTNUT STREETS WHICH RUN ADJACENT TO THE UNNERSITY OF NORTH TEXAS PARKING GARAGE, BAPTIST STUDENT UNION AND UNIVERSITY UNION TO UNION CIRCLE WITH A STREET ADDRESS DESIGNATION OF "ONE UNION CIRCLE"; AND PROVIDING FOR.AN EFFECTIVE DATE. WHEREAS, the Historic Landmark Commission convened on June 13, 2005 recommendc:;d that West Prairie Street, Avenue A and Chestnut Streets which run adjacent to the University of North Texas Parking Garage, Baptist Student Union and University Union to Union Circle with a street address designation of "One Union Circle"; and WHEREAS, said renaming will simplify street names and provide for more consistent addressing; NOW THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The streets officially designated as West Prairie Street being a public street connecting Welch Street to Avenue A, Avenue A connecting West Prairie Street to .Chestnut Street and Chestnut Street connecting Avenue A to Welch Street, as illustrated in the attached Exhibit "A", which is incorporated and made a part hereof, is renamed to Union Circle. The address designation will be "One Union Circle". SECTION 2: The Director of Planning and Development is directed to amend the official map of the City of Denton to reflect the change in the street name as provided herein. SECtION 3: This ordinance shall become effective immediately upon its passage and approva1~ PASSED AND APPROVED this the _ day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: S:\Our Documents\Ordinancea\05\Union Circle Name Clange.doe APPROVED AS TO LEGAL FORM: EDWIN M. SNYD CITY 1\ Y BY: .. , ,. . EXHIBIT" A" CHESTNUT c( w ~ c( w ~ ..J ~ I- Z W (J . m QI I HI LAND SYCAMORE PRAIRIE I AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Airport and Transportation Operations II ACM: Jon Fortune, Public Safety and Transportation SUBJECT Consider the adoption of a Resolution of Intent of the City of Denton, Texas, to enter into an Interlocal Cooperation Agreement for the sale and purchase of assets related to Link Public Transportation Service from the City of Denton to the Denton County Transportation Authority; and providing an effective date. BACKGROUND City staff and Denton County Transportation Authority (DCT A) staff have worked diligently in the past six weeks to facilitate the final transfer of the LINK System capital assets from the City of Denton to DCTA. A sale price of $233,000 was determined to be fair and equitable for the transfer of LINK' s assets. However, a number of details must be addressed prior to forwarding a final Interlocal Cooperation Agreement (ICA) to the City Council and to the DCTA Board of Directors for approval. The unresolved issues are items such as proper transfer of title since the vehicles were purchased with grant funds, adequate insurance coverage upon transfer of vehicles, and point of sale for tickets and monthly passes. The current ICA between the City of Denton and DCT A references a second ICA between the City of Denton and University of North Texas (UNT) to provide transportation services to UNT for the 2004-2005 school year. This ICA with UNT expires on August 20, 2005. To continue providing transportation services to UNT, DCTA will need to have access to LINK's capital equipment to provide UNT service beginning August 21, 2005. The adoption of the resolution will allow the two parties to complete negotiations and avoid a potential gap in service delivery for UNT due to the expiration of the ICA with UNT. Finally, the resolution outlines the intent and the schedule to complete the transfer by September 30, 2005 thereby allowing both the City and DCTA to demonstrate the sale of the system during the current fiscal year 2005. ESTIMA TED SCHEDULE OF PROJECT The resolution would become effective upon adoption by the Denton City Council and adoption of the resolution by the Board of Directors for the Denton County Transportation Authority. The resolution demonstrates the intent that the final sale and transfer of the LINK System would be complete by September 30,2005. Agenda Information Sheet July 26, 2005 Page 2 PRIOR ACTIONIREVIEW The City Attorney has reviewed and approved the proposed resolution and legal counsel for DCTA has reviewed and approved the proposed resolution. FISCAL INFORMATION The resolution outlines that the two parties have determined a fair price of $233,000 for the acquisition of the LINK Public Transportation System and associated assets. EXHIBITS Resolution Respectfully submitted: ~~ Mark Nelson, Director Airport and Transit Operations S: lOur Documents IReso lutions 10 51! CA DCT A-Link Reso 2. doc RESOLUTION NO. A RESOLUTION OF INTENT OF THE CITY OF DENTON, TEXAS, TO ENTER INTO AN INTERLOCAL COOPERATION AGREEMENT FOR THE SALE AND PURCHASE OF ASSETS RELATED TO LINK PUBLIC TRANSPORTATION SERVICE FROM THE CITY OF DENTON TO THE DENTON COUNTY TRANSPORTATION AUTHORITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton and the Denton County Transportation Authority are authorized by law to purchase and sell assets, including rolling stock; and WHEREAS, the City of Denton desires to sell all assets related to LINK public transportation service and the Denton County Transportation Authority desires to purchase all such assets; and WHEREAS, the agreed-upon price for the asset sale and purchase is $233,000; and WHEREAS, both parties intend to enter into an interlocal cooperation agreement (lCA) detailing the terms and conditions of the asset sale and purchase no later than September 30, 2005; and WHEREAS, prior to execution of the ICA, the Denton County Transportation Authority is in need of the use of the assets currently owned by the City of Denton in order to continue to provide UNT campus shuttle services beginning August 21,2005, and the City of Denton agrees to allow the use of all necessary rolling stock for such service prior to completion of the asset sale and purchase ICA; and WHEREAS, prior to execution of the ICA, the City Council of the City of Denton believes it is in the public interest to agree to continue to provide, pursuant to the existing Agreement between the parties dated September 7, 2004, fuel, facilities, utilities and all other equipment and services necessary for the LINK public transportation and UNT campus shuttle operations to the Denton County Transportation Authority or its service contractor; and WHEREAS, once the ICA is executed, the City Council understands that the Denton County Transportation Authority will agree to maintain all applicable and necessary insurance coverage for the newly acquired assets, including rolling stock; and WHEREAS, once the ICA is executed, the City Council deems it is in the public interest for the City of Denton to transfer all applicable titles and ownership records, as well as assign the federal and/or state grant interest, to the Denton County Transportation Authority; NOW, THEREFORE, S: lOur Documents IReso lutions 10 51! CA DCT A-Link Reso 2. doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. That the City of Denton and the Denton County Transportation Authority are authorized to continue to negotiate and complete the sale and purchase agreement related to all assets associated with LINK public transportation service. SECTION 3. That the Denton County Transportation Authority is authorized to use of all necessary rolling stock related to LINK public transportation service until the Denton County Transportation Authority and the City of Denton have completed negotiations and agreed to the terms of the Interlocal Cooperation Agreement transferring all LINK assets. SECTION 4. That the City Council expresses its intent to approve the Interlocal Cooperation Agreement and to authorize the Mayor of the City of Denton to execute the Agreement in the name of the City of Denton after it is approved as to form by the City Attorney and the parties agree to its terms. SECTION 5. That this Resolution is contingent on the Chairman of the Denton County Transportation Authority being authorized to execute the Interlocal Cooperation Agreement in the name of the Denton County Transportation Authority by appropriate action of the Denton County Transportation Authority's Executive Board. SECTION 6. This Resolution 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: EDWIN M. SNYDER, CITY A TIORNEY BY: Page 2 of3 S: lOur Documents IReso lutions 10 51! CA DCT A-Link Reso 2. doc BY: I hereby certify that this resolution was adopted by the Executive Board of the Denton County Transportation Authority on July 28, 2005. F. Charles Emery, Chairman Denton County Transportation Authority Page 3 of3 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Airport and Transportation Operations II ACM: Jon Fortune, Public Safety and Transportation SUBJECT Consider adoption of an ordinance approving an assignment of a gas well surface use agreement at the Denton Municipal Airport between the City of Denton, Texas and Dan A Hughes Company, LLC as Assignor and Stroud Energy, Ltd as assignee; and providing an effective date. Airport Advisory Board unanimously recommends approval 6-0. BACKGROUND The Dan A Hughes Company has requested the City of Denton approve the assignment of their surface use agreement to Stroud Energy, Ltd. of Ft. Worth. Stroud Energy, Ltd. has agreed to assume the obligations of the existing surface use agreement and the corresponding oil and gas lease agreement. The company's primary objective is to develop long-lived natural gas reserves by applying new technology throughout the drilling, completion and production phases of its wells. Stroud Energy is focusing on diversifying from existing wells in the Austin Chalk area to developing opportunities in the East Texas Basin and the Fort Worth Basin Barnett Shale. Stroud Energy will also be acquiring approximately 10 additional producing gas wells and 2000 acres of gas leases owned and operated by the Dan A. Hughes Company in the Barnet Shale in the North Texas Region. ESTIMATED SCHEDULE OF PROJECT The assignment would become effective July 26, 2005 and continue through the original term of the Surface use Agreement which was part of the January 17,2002 Oil and Gas Well Lease and amended by Ordinance 2005-126 on May 3, 2005. This agreement provides the gas well operator lease will remain in full force and effect as to all of the lands identified and described in Exhibit A so long as not more than 180 days elapse between the drilling of one well and the drilling of each subsequent well. PRIOR ACTIONIREVIEW The City Attorney has reviewed the assignment and the Airport Advisory Board unanimously recommends approval of the assignment 6-0. Staff recommends approval of the assignment as submitted. FISCAL INFORMATION There will be no change to the lease rate established III the current verSIOn of the lease agreement. EXHIBITS Ordinance Assignment Respectfully submitted: n#~ Mark Nelson, Director Airport and Transit Operations S:\Our Documents\Ordinances\05\Air Surf Use Agr-Stroud Energy.doc ORDINANCE NO. AN ORDINANCE APPROVING AN ASSIGNMENT OF A GAS WELL SURFACE USE AGREEMENT AT THE DENTON MUNICIPAL AIRPORT BETWEEN THE CITY OF DENTON, TEXAS AND DAN A. HUGHES COMPANY AS ASSIGNOR AND STROUD ENERGY, LTD. AS ASSIGNEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Dan A. Hughes Company wishes to assign its interest in that certain Gas Well Surface Use Agreement, as amended, (Assignment) to Stroud Energy, Ltd.; and WHEREAS, the Airport Board has recommended this Assignment be approved by the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute an Assignment of Gas Well Surface Use Agreement between the City of Denton and Dan A. Hughes Company as Assignor and Stroud Energy, Ltd. as Assignee at the Denton Municipal Airport, in substantially the form of the Assignment of Gas Well Surface Use Agreement, which is attached to and made a part of this Ordinance for all purposes. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWINM. SNYDER, CITY ATTORNEY BY: C:\nOCUME-I \hIpmrtTJ.OCAlS-1 \Tc:nv\Scroud AYipmen!: fin.l Ot3ft.dOG ASSIGNMENT OF GAS WELL SURFACE USE AGREEMENT AT DENTON MUNICIPAL AIRPORT DATE: July 15. 2005 ASSIGNOR: Dan A. Hughes Company ASSIGNEE: Stroud Encr8Y~ Ltd. LEASE: Date: Smfacc Owner: Operator' Assignor: Premises: 1 anuary 17 ~ 2002 City of Dcnton, Texas Dan A. Hughes Company The property located on the Denton Municipal Airport and identified in the Surface Use Agreement dated January 17, 2002 and the Amended Agreement dated April 29. 2004- and the Amended Agreement dated August 30, 2004, which is made a part oftbis Assignment fOr all purposes. Operator! Assignor assigns to Assignee Assignor~s interest in the Surface Use Agreement. A. Assignee Agrees To; 1. Assume Operatoc/Assignor's obligations lDlder the Surfi.ce Use Agreement as amended. 2. Acc:ept the premises in their present "as is" condition including those commitments identified in the Letter of Understanding dated July 13. 200S addressing Well Site Airport #2-H Well. Said letter is attad1ed as Exhibit A. Should the items not be accurately addressed and approved by AiIport Management within the identified time frame, the assigned Swface Use Agreement will be terminated. 3. Coniplete all obligations of purchase from Operator/Assignor prior to this Assignment becoming effective. Surface Owner consents to this assignment. Surface Owner agrees to notify Operator/Assignor within 30 days of any Assignee default. B. Operatorl Assignor agrees that ~. Operator/Assignor and Assignee will comply with their gas well permit, the gas wen ordinance and aU other applicable laws and Kgulations. including without limitation, Section 35.22.15 of Subchapter 22 of the Denton Development Code. which governs the transfer of gas well permits. 2. Operator/Assignor will remain liable on the Surface Use Agreement,. as amended, should Assignee default on the Agreement. C:\OOCUMn-l\lliprnuty'lI..ClCAl.S-l \Temp\Strovd Auipnmu Pin.! DrIJllfoc PREVIOUS ASSIGNMENTS: June 19, 2002 Assignment of the Enexeco, Inc. Oil, Gas and Mineral Lease and Leasehold dated January 17, 2002 between Enexeco, Inc. and the City of Denton to Dan A. Hughes Company. Dan A. Hughes Company, Operator/Assignor ~ HUi;So~ Propri- ~ ~~ tv Dan . ughes . Stroud Energy, Ll.d.. Assignee By: Stroud Energy Management, Ltd., its sole General Partner By. s~ Pn>perties. L~~Ponnor By: . ~ '""p: Gregory Smith Division I.and Manager City of Denton, Texas, Surface Owner By: Michael A. Conduff, City Manager Attest : 1ennifer Walters, City ~Jdwy By; Approved as to Legal Fonn: Edwin M. Snyder, Interim City Attorney BY..q~ Page 2 of3 C:\DOL'UMFr-IIJlIpl'llU&)'\LOCALS-l\TomlP'Slnl1ld Asl.ilJlRlC"ll"mal Draft.c* STATE OF TEXAS COUNTYOF~ 8E:.E:. This instrument was acknowledged before me on the -l,i"1ay of /']u}py- ~ 2005, by Dan A. Hugh~ President or Dan A. Hughes Company, a. sole propri~f ofnanA. Hughes Company. [ AVAK.HIRT bryNklll:i1lBal__ ""~ElPslbl.6.l!Wl alA f ~ Notary Public, State of Texas My Commission Expires J J- /, - () J (or Notary Stamp) STATE OF TEXAS COUNTY OF DEffON TA .r.-t ~ T th This instrument was acknowledged bcf~ me on the J 5' day of Q uln,. . 2005. by Gregory P. Smith. Division Land Manager of Stroud Energy, Lt~ Partnership Company, on behalf of said Company and. Stroud Energy M~ag Ltd. and Stroud Oil Production. Ltd. ~-""-~~_~~~~",'~~"'''l!:n,,,..:'.1~~''--~~ .. ~ ' . LlS.A. K .'.Il0Ri'iiO"N "j ., Notary Public [SEAL] Slats ofTenul } No Public, State of Texas My CammiS5ion Expires ~,(, My Commission Expires 12~ "" -0 S D:!oom~;" S"i. 2nQS I~~_~~.,."~"~,.._...~,, ,.,_......,._.._~_~,r, (or Not'"'" Stamp) _ .. "., '_'''':!' "'. :'.........--.:..:i--._~_....- __~'.,-._." ~__' .~,. "., .,," ," ~ I/4A&J STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the _ day of , 2005. by Michael A. Conduff, City Manager on behalf the City of DCmton) Texas, a municipal corporation. [SEAL] Notary Pub~ State of Texas My Commission Expires (or Notary Stamp) Page 3 on EXHIBIT A DANA. JltA~WES COMPANY . 1 ~ PetrOlllUm Exp/ofst/on AM PrOductiOn July 13, 2005 CilY or Denton Ot;:Jt{QnMunicjpal Airpart Mt....Mmt-.NeJSon, . Directot. 5000 Airportftd. .~ Texas 761JJ7 Rc:CityofDentQU- AJrportI2-HWell De.1CMr, Nelson; Asyou'al"e O\Wflre.PaltA. Hugll,es~Ybasreachedia~[() .seU ..its..ptOd~dQijintheDentonCoUrity llrealo 'SunudEnergy.. Ud,includins its lease covtrlrtltfitCiiYiofDentonA.irpOn, .Witb ~garcflo.besutfa~. ~;~aiJ5~~~?r._i~... . and, Stroudhereby'.ai@etbatprontptlyafterJbe eo.tion()f~llchsecondmYfrac:but, in any cVentnomoi'e tha,n . lSOdilysfroJ1H1re' dale afmiS leu.er..1he.. (oUQW1ng 'aCtiomlwill betaken: . . .. .111e tbreestrandbm'bed wire fence will6ereplacedwi(ba JK!nri"secwityf~t, The. leltlpOtatyd~Dagc;~lvert~ toClCce5sthe1Q4tlon' frOrilWes{coUJ'fR.oadwillbt .. . relJWvedan4 theculven rewrne':lW' iU;ori~alcond.iriOD. 3. thes~tyJelte al(jl1g WcslctiurrRoad wiU~retUmed'to its ongtiud. Joeat;toltand in 'lt~. orig.iMlcoi:ldition. . 4. Thepernument access point (Q (heIQCat!on wiD beideDtjr~ ;m,d' cCnst~dwHhjQg~$$ BTid egress ftorttSk)'ttule or SpartartRcad. . . . . HUgheS. and . Stroud request that if the ftttegoing accutatelyexpr~sse$theparties'agr:ecmcntwithr@pec;ttQJCJip leropOJal'}; entranee.dJatyou $osiJillry. byc~eculing and rewl'riiri!lo Hughes acon.merpartoftbis letter ; ThoanRi youJrn:your he.pand~istancejl1thl!l..m.atter. ... Sincerely, ~'.....'..".'...~' .. ... .. r.hn S...." Landman AG.:lEED'and ACCEPTED this ~ day of July. 2005. CITY of DENTON AIRPORT AGREBDand ACCEPTED this .l3"'~day of JuJy,2005 . STROUD ENERGY, LTD. CI.J\ A"r.r'" ~f't.:b..."1 1 , l '[ 1 1 1 j ! 1- I J 1 j I , ! 1 C(;')'.~~ S:\Our Documents\Contraccs\02\f"ne Enexco Surface Use AgreemenLdoc SURFACE USE AGREEMENT CITY OF DENTON AIRPORT This Agreement is made and entered into effective this 1 ih day of January, 2002, by and among ENEXCO, INC. whose address is 3500 Oak Lawn Avenue, Suite 390, Dallas, Texas 75219 (Operator") and the CITY OF DENTON, TEXAS, a home rule municipal corporation, acting by and through its duly authorized City Manager ("City"); WHEREAS, Operator owns the right to explore the lands described as follows: TRACT 1: The land described in condemnation proceedings identified by Cause No. 3922 filed on November 30, 1943 between the City of Denton and R.M. Evers, et al and subsequently filed in Volume 1675, Page 546 of the Real Property Records of Denton County, Texas, containing 147.26 acres, 2.26 acres of which is in a public road, in the William Wilburn Survey, Abstract Number 1419. TRACT 2: The land described in that Warranty Deed dated December 23, 1943 between P.T. UndelWood and wife Jimmie Underwood and the City of Denton recorded in Volume 304, Page 503 of the Real Property Records, of Denton County, Texas, containing 74.94 acres, 1.75 acres of which is in a public road, in the Thomas Toby Survey, Abstract Number 1285. TRACT 3 The land described in that Warranty Deed dated January 18, 1944 between Mrs. Ellen Pearl Corbin, a widow, Hugh C. Corbin and wife, Sue Lou Corbin, John S. Corbin, Alice Corbin Brown and husband W.O. Brown, Grace Corbin, a feme sole, Georgia Corbin, a feme sole, James E. Corbin and wife, Johnnie Corbin, Mrs. Gertie Corbin Hurst and husband, G.E. Hurst, and the City of Denton, recorded in Volume 305, Page 216 of the Real Property Records of Denton County, Texas, containing 331.94 acres, 2.61 acres of which is in a public road, in the Wm. Smith Survey, Abstract Number 1188, and the Wm. Neill Survey, Abstract Number 970. Denton County, Texas ("the Lands") for oil and gas operations; and VYHEREAS, Operator and City desire to enter into an agreement regarding Operator's use of the Lands for its proposed oil and gas operations thereon in cOIUlection with Operator's wells to be located at a surface location and drilled to a projected vertical depth pursuant to the Oil, Gas and Mineral Lease of the City of Denton Airport (the "Well"). NOW, THEREFORE, in consideration of the premises and the covenants set forth below, Operator and City agree as follows: 1. In connection with the Well, and pursuant to the terms and Provisions herein after contained, Operator shall have the right: (a) to construct and use a drilling pad location and related drilling and circulation pits on the Land on which such Well is to be situated (the "Site") for the purposes of drilling for, equipping, operating and producing oil, gas and other minerals from the Well (including, but not limited to, the installation and maintenance of a tank battery, heater treater, separator, and other equipment on the drilling pad); and (b) to install flowlines and pipelines to and from the Site; to install electric poles on the Site. 2. Drilling Operations. For purposes of this Agreement, the drilling pad shall be constructed in the approximate dimensions and configuration depicted on a gas well development plat as approved by the City. No well shall be drilled within 500 feet of any structure on the land without the written consent of the City Manager or his designee. During drilling operations, the perimeter of the drill site shall be fenced by Operator at its sole expense with a fence sufficient to turn livestock; thereafter, in the event of production, said fence shall be maintained around the perimeter of the well site and tank. battery area actually utilized by Operator. Operator shall use only the entrances and roadways for entering upon and leaving the land and will use only the routes in going upon, over or about the land as are designated by City in writing for Operator's use in accessing the drill site. Operator shall access the Site directly from Airport Road, and that Operator shall construct roads to the Site as depicted on the gas well development plat approved by the City. Operator shall maintain all roads, existing or new, used by Operator in good repair free of rocks and ruts to the reasonable satisfaction of City. Annual maintenance must include, as a minimum, addition of at least two inches of caliche and motor grading. Operator will construct diversion terraces as may be reasonably necessary to prevent soil erosion. Use of roads shall be confined to lease operations and to the use of the City and Surface tenants. Operator shall never obtain or assist anyone to obtain or have designated a public road across the land. Operator may open new roads only upon written concurrence of City noted upon a survey plat of the road showing its location and a legally sufficient centerline description. All new roads shall be straight and parallel to survey lines to the extent the terrain permits. No interior gate or opening in the fence shall be constructed so as to access any other part of the Land from the Site or rectangular area described in this paragraph without City's consent. All travel shall be confined to roads and no off-road travel is permitted unless written permission is obtained from the A.irport Manager and the propeny restored to the same condition. 3. Refineries prohibited. Operator is prohibited from constructing an oil or gas refinery or a plant for cleaning up gas or removing H2S on the leased premised Page 2 without first obtaining a separate written lease agreement with City. The location of separators, dehydrators and compressors shall not be considered as plants. 4. Compensation. An annual rental for a 40 x 40 well site (16,000 square feet) at $.05 per square foot for any well sites located on the west side of the lands or at $.08 per square foot for any well sites located on the east side of the lands shall be paid to the City as compensation for the use of the surface. This arumal rental shall be adjusted every two years according to the Consumer Price Index. The arumal rental payment shall be payable to the City of Denton prior to the start of construction of each well site and on each year anniversary thereafter until the well is abandoned and plugged. 5. No water wells may be drilled on the property. 6. Notification. Operator shall notify City at least 3 days, exclusive of Saturdays, Sundays and legal holidays, prior to commencement of all exploration, drilling, highline or pipeline construction operations on the land, specifying the approximate date of commencement, and the nature and location of the operations. No facilities required for any operation permitted under this lease shall be commenced, placed, erected or constructed until City and Operator have conferred and mutually selected the site or sites for location of the facilities, taking into consideration the use of the land for airport operations. 7. Pipelines and Flowlines. Prior to constructing pipelines and flowlines on the Lands, Operator shall consult with City so that the pipelines and flowlines shall be located, insofar as reasonably practical, to cause minimum interference with City's surface operations and use of the land. Pipelines and flowlines shall be limited to natural gas transported through such pipeline to natural gas produced under the terms of the lease from the leased premises. Operator agrees that all flowlines and gas sales pipelines shall be constructed as near as practical to public right of ways and shall be buried to a depth as the City determines or as may be required under applicable laws. including FAA rules and re2ulations. A plot plan showing proposed pipelines shall be filed with the Director of the Airport. "As built" plans shall be filed with the Director of the Airport on completion. Operator shall place pipelines and flowlines with the ingress easements to the well sites and shall obtain an easement from the City. Compensation for the easement shall be $lOlrod (16 feet). Operator shall remove pipelines or flowlines after the well is abandoned or shall make the pipelines and flowlines dormant as requested by the City. 8. Abandonment of WeBs. At Operator's cost, Operator agrees to conduct a gammaray neutron log survey from the surface to the bottom of the surface casing of any well drilled on leased premises by Operator in order to assist City in determining whether water sands have been encountered to such depths. Operator shall provide Page 3 City or City with a copy of such log and, without any warranty whatsoever, Operator's opinion as to whether such log indicates water bearing sands and if so, the location or depth thereof. Prior to\ abandoning a well, Operator agrees to give City prior notice of such intended plugging and City shall have twenty (20) days after notice within which to elect to take over such well for completion as a water well. If City elects to take over same, Operator shall plug such well to the depth designated by City and thereafter City shall own such well together with the obligation to plug the remaining, unplugged portion of such well when City abandons same. City agrees to execute the appropriate forms required by the Railroad Commission of Texas and other regulatory authority in order to transfer operations and ownership of, as well as liability for, such well to City. In the event City declines to take over such well, then Operator shall promptly plug same. At each stage of Operator's operations, Operator will maintain the site of operations in a neat, orderly, safe condition, free of litter and free of all objects not reasonably necessary to the operation. Upon abandonment of any site, operation or road, Operator will notify and confer with City, and except to the extent City waives, in vtriting, Operator's obligation to do so, the site or road will be cleaned, all mounds will be leveled, and all pits, pit liners will be removed at the appropriate time and all pits, ruts and other excavations (after being allowed to dry out) will be filled, leveled and smoothed, all caliche will be removed from the site or road will be seeded with grass of City's choice and otherwise returned, as nearly as practical to its natural state,. all within a reasonable time. 9. Penalties. In the event Operator fails or refuses to pay City for penalties, claims, surface use or damages, as required under this lease, within 30 days after same are due, then Operator shall be required to provide City with security in the form of cash in the sum of $10,000.00 payable to City which sum may thereafter be applied by City toward Operator's obligations for past unpaid, as well as future compensation for penalties, claims, surface usage and damages and on each occasion that City applies all or a part of said security deposit toward unpaid penalties, claims or compensation, Operator agrees to restore such security deposit to $10,000.00. If Operator fails to make such $10,000.00 security deposit and/or maintain same, within 20 days after notice from City to tender same, then this lease shall terminate. City shall have a first lien against the leasehold interest of Operator therein to secure City under the terms of this lease and further this lease shall constitute a Security Agreement sufficient to satisfy the Uniform Commercial Code of Texas to establish a security interest in this leasehold estate for the benefit of City to secure them in the event of default by City. Until such time as Operator breaches its obligation to timely perform under this lease, City agrees that all production and revenue attributable to the working interest hereunder shall be temporarily exempt from this lien. Upon notice to City of Operator's breach of this or any other provision of this lease, which breach constitutes an accrued but unpaid claim owned by Operator to City, then said temporary exemption shall be lifted and this security interest and lien shall thereafter attach to all production and revenue attributable to the working interest under this lease. Page 4 10. Preferential Right to Sell. As part of the consideration for this lease, Operator covenants and agrees that the owner of the surface estate shall have a first preferential right to sell City or its contractors or assignees, at the same price and tenns Operator can obtain elsewhere, any water, sand, gravel or caliche or anyone of them, which Operator or any of its successors, assigns, agents or independent contractors might need incidental to any exploration or development operations on leased premises. 11. Place of Payment. All payments, compensation and damages which may be due and payable to City shall be payable to the City to the City Manager, 215 E. McKinney, Denton, Texas 76201. Payment shall identify if the payment is for the bonus, the royalty, delay rental, shut in rental, or annual rental payment for the well site. 12. Environmental. As used in this lease, the term "Hazardous Materials" means any substance defined or identified as a hazardous, extra hazardous or toxic substance, waste, or material under any applicable federal, state, or local statute or regulation. "Remedial Work" is defined as any site investigation or monitoring, any cleanup, containment, remedial removal, or restoration work performed in response to any federal, state or local government authority or private attorney general action, or pursuant to any federal, state or local statute, rule regulation or other laws. Operator agrees (1) to remove from the leased premises, if, as and when required by law, any Hazardous Materials placed or released thereon by Operator, (2) to perform remedial work where the need therefore arises in connection with Operator's operations or activities on the leased premises, and (3) to comply in all respects with all federal, state and local governmental laws and regulations governing operations by Operator and remedial work on or associated with the leased premises. Such remedial work shall be perfonned by one or more contractors selected by Operator and approved in advance by City and under the supervision of a consulting engineer selected by Operator and approved in advance by City. All costs and expenses of remedial work made necessary by Operator's operations shall be paid by Operator, including, without limitation, the charges of such contractors and/or the consulting engineer and City's reasonable attorneys' fees and costs incurred in connection with the monitoring or review of remedial work. If Operator shall fail to timely commence or cause to be commenced, or fail to diligently prosecute to completion, such remedial work, City may, but shall not be required to, cause such remedial work to be performed. Operator promises to notify City of any claim or other action by any governmental agency or other third party involving the actual or alleged existence of hazardous materials on the leased premises or on City's adjoining property and to provide City with copies of (1) any notice of any release of Hazardous Materials given to Operator pursuant to any law or regulation and (2) any report of and response to any such incident. Operator agrees to indemnify, pay and protect, defend and save City harmless from all claims, liabilities, fees and expenses of any kind that arise from the actual or alleged presence or release any Hazardous Material in connection with Operator's operators on the leased premises. This indemnification shall include costs in connection with any remedial work when performed by City or any third party in response to any federal. state or local governmental authority, laws or regulations, due and payable upon demand therefore by City. Page 5 13. Notices. Operator agrees to designate in writing the name of the person or persons to be present from time to time on said premises as current operations are being conducted, with whom City may resolve any claim for use, injury and damage to airport operators surface area or improvements on said premises occasioned by or arising from Operator's operations or other activity on the said premises. In regard to notice of surface use, the City affected 'by such operations shall be entitled to prior notice of such operations. Either party hereto may from time to time designate in writing a different address or agent. The following persons are designated as each party's initial agent: To City: City Manager Attn: Airport 215 E. McKinney Denton, Texas 76201 To Operator: C. Noell Rather Ralph E. Rather Enexco, Inc. 3500 Oak Lawn, Suite 390, LB #15 Dallas, Texas 75219 14. Second/Tertiary Operations. Operator is denied the right and privilege of injecting any substances into the subsurface for secondary or tertiary recovery operations unless allowed under the gas well permit. 15. Memorandum of Agreements. Operator and City agree to execute a Memorandum of this Agreement in the form attached as Exhibit "A" hereto, which may be recorded in the records of Denton County, Texas. 16. Assignment. This Agreement shall remain in effect for so long as the oil and gas leases owned by Operator on the Lands are in force and effect, and be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors and assigns. 17. Indemnification. Operator shall indemnify and hold harmless and defend City and City's officers, agents and employees from all suits, actions, claims, damages, personal injuries, accidental death, property damage, losses, and expense of any character whatsoever including attorney's fees brought for or on account of any injuries or damages received or sustained by any person or persons or property, on account of any negligent act of Operator, Operator's officers, agents and employees whether such negligent act was the sole proximate cause of the injury or damage or a proximate cause jointly and concurrently with Operator or Operator's employees, agents or subcontractors' negligence, in the execution, supervision and operations Page 6 growing out of or in any way connected with this Agreement and Operator will be required to pay any judgment, with costs, which may be obtained against City or any of their officers, agents or employees, including attorney's fees. 18. Insurance. Operator shall file evidence in the form of a certificate of insurance with the City Secretary for the City of Denton, acceptable to the City Attorney, that it has obtained liability insurance in accordance with the Oil and Gas Mineral Lease, City's Gas Well Ordinance and with the City of Denton as an additional insured and covering its operations on the Lands. Operator shall also file evidence in the form of a certificate of insurance with the City Secretary for the City of Denton, acceptable to the City Attorney, that its workers' compensation and general liability coverage includes in its provisions a waiver of any rights of subrogation as against the City of Denton, Texas in accordance with the City's Oil and Gas Regulations. 19. Operator shall follow FAA rules and regulations prior to the commencement of drilling operations under this agreement. Operator shall file a aeronautical study request form (Form 7460) before commencing drilling operations and shall obtain all prior consents, approvals or waiver of FAA regulations. Operator shall indemnify and hold City harmless for any FAA orders requiring Operator to cease operations. 20. This agreement shall be construed under the laws of the State of Texas, without reference to conflict of law principles which would require the application of the law of another jurisdiction, and exclusive venue shall be in Denton County, Texas for any claims lawsuits or actions in connection with this Agreement. 21. In the event of any conflict between the parties hereto such that either party brings or commences any legal action or proceeding related to this license, including but not limited to, any action pursuant to the provisions of the Texas Uniform Declaratory Judgments Act (Tex. Civ. Prac. & Rem. Code S 37.001, et seq., as amended), the parties hereto agree to waive any and all rights to recovery of attorneys fees to which the prevailing party might otherwise be entitled. 22. This Agreement shall never be construed to constitute the parties hereto as partners or joint venturers, or to create a relationship of principal-agent, employer-employee, trustee beneficiary, an association for business or profit, or any other relationship, legal or equitable, among the parties hereto. In all respects, each party shall be responsible for its own conduct in connection with the subject matter of this Agreement as though it were an independent contractor, free from all control and direction of the otbers. 23. This Agreement may be executed in multiple counterparts, each of which when taken together shall constitute but one and the same instrument, but none of which shall be Page 7 effective until and unless executed by all parties named herein. Additionally, this Agreement may also be executed in multiple originals, anyone of which, when fully executed as herein provided, shall be effective for all purposes. 'When fully executed as herein provided, the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto, their heirs, successors and assigns. 24. EXECUTED by each party hereto as of the date indicated beside its signature, to be effective for all purposes as of the Effective date. City: Date: \ - I! - ~ ..l- Michael A. Condu , ity Man:ager CITY OF DENTO , TEXAS ATTEST: BY: (Mitt 6'e/U2(dihl, ad JennifeifWalters, City Secretary , Date: \- 1/-01- APPROVED AS TO LEGAL FORl\1: BY'~J 0 ,~/~'Ot), J.., : ,-J.A..:.) Lc.-:rr- <..r- _/L:l--'.~ Herbert L. Prouty, ty Attorney Operator: .1' // . .'--:~' .'~ -f' ..-: / ,.~., I _~'~ . '''/ ./ By' {L..! /.:G:x.' " t<t"' Y"" Noell-Rather, President Page 8 ACKNOWLEDGMENTS STATE OF TEXA.S 9 COUNTY OF DENTON S Before me, the undersigned authority, on this day personally appeared Michael A. Conduff, CITY MANAGER OF THE CITY OF DENTON, TEXAS, known to me to be the person and official whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of said City, and for title purposes and consideration therein expressed, and in the capacity therein stated. ct,~<-,.Li,- A _0"iLf- Notary Public, State of Texas STATE OF TEXA.S 9 COUNTY OF DENTON 9 The foregoing instrument was acknowledged before me on \ - l'l- on behalfof the corporation. 2002 by, CHRISTINE A. DICK Notary Public State of Texas Comm. Expires 3-2-2005 ~~ ' " ~~ I::s.hL t\, bl[,{ Notary Public, State of Texas Page 9 ACKl'JOWLEDGMENTS STATE OF TEXAS 9 COUNTY OF DENTON 9 Before me, the undersigned authority, on this day personally appeared C. Noell Rather, PRESIDENT OF ENEXCO, INC., known to me to be the person and official whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of said Operator, and for title purposes and consideration therein expressed, and in the capacity therein stated. u ' CJ~,~'~L-.t\. 'Ill LI- Notary Public, State of Texas STATE OF TEXAS 9 COUNTY OF DENTON S The foregoing instrument was acknowledged before me on \ - 1'1 - 2002 by, on behalf of the corporation. CHRISTINE A. DICK Notary Public State Of Texes Comm. expires 3-2-2005 Ll;;,~.j;L-M.b(~ Notary Public, State of Texas Page 10 EXHIBIT "A" to Surface Use Agreement dated effective \- \ l ~Dj... , between and the CITY OF DENTON, TEXAS MEMORANDUM OF SURF ACE USE AGREEMENT The Memorandum is being executed for the purpose of giving notice of the existence of that certain Surface Use Agreement dated effective of even date entered into by and between Enexco, Inc. (as "Operator") and the CITY OF DENTON, TEXAS (as "City") regarding Operator's use of the lands o\V1led by City located in Denton County, Texas, to wit: (the "Land") for Operator's oil and gas operations on such lands. Dated effective this --D..- day of 0;~~ b'YV I , 2002. OPERATOR: ," ~., ,./1 i " L .- / /. !/ / d By: i (\,[~nfl Cd Noell Rather, President CITY OF DENTON, TEXAS ATTEST: l1 , t;~. I -- it. ~ " " '. '1 J By: \ _/tlliJ! 'C'I! cllfA- t-t.! Jennifer Walters, City Secretary . .~ //1.4 j- L,.{.~~T'- ~ . APPROVED AS TO FORM: , -----...... .----;--.... . \.... Bv:; I ~c;-v "7-0i/l C--. ~j / . .~, ~L-) ~ . , --- I ,-' . ...... . r'- ~ .'~ L-<~"-- v ..........--- -...... Herb Prouty, Clry--'Attorney Page 11 04/29/2004 09:32 FAX 36136228' HUGHES tiiI 002 AMENDMENT 1'0 SURFACE USE ~GR.EE~NT g1) P.l DENTON AIRPORT Thilii Anumdnl<<1t to the Surfam: I Jse Agreement City of Denton Airport of Janu9.t)' 17 \ 2002 ("Amendment to the A~I '. ....ment") is made and entered into Effective Date .s provided below by and among llll~ DAN A. HUGHES COMPANY, whose address is a P.O. Drdwer 669, Beevillct TeJl.1 , 78104-0669 (Openuorn) and the CiTY OF DENTO) l, TEXASt a hQ11le rule municipal \:orpormon. acting by and through its duly authorizl d City Manager c'Sur!acc Owner" I. WHERBAS~ Operator and Surall :: Owner desire to enter into an amendment to flu: abo' e mentio.ned agreement regarding I 'percltor's use of the Lands for its proposed oil and g IS operations thereon in connecLioll w-ith Operator's gas well operations on the Airpc rt Property . NOW, T,HBREPORB. in consid'.1 ation of the premises and the coveMnts set forth belO1 '. Operator and Surface Owner u!" ee to amend their agreement to add these addition Ll provisions as tollows: i. Compensation. An mutual) :11ta1 for a 200~ X 300' well site of5.05 per square fo )t for wells located on tho we. t side of the lands 01' $.08 per square foo1 for proper y locatC1d on the east side of tll" lands shall be paid to the City as compensation for tl .e use of the surface. AdditiOlr.d compensation will be required for the road aOOOI!lS 0 each well site. This compl I\sation will be detennined once the aooess road ,S established. The same rate IIl~r square foot used. for- the well site will be Wj,ed n. calculating the. access road II;;e compensation. The aanual rental sb.a.ll. be adjustl d every two years according 1 \' the Con5umer Price Inde:JC The annual rental shall 1 .e pa.yabLe to the City of Delle'-I" upon the start of construction of each well site and ( 11 each year anniversary theref11 h~r until the weU is abandoned. 2. AssIgnment. This amendm( lIt to the agreement shall remain in effect for so long IS the oil and gas leases ownu. f II Y Operator on the Lands are in force and effect. and J ,e binding upon and shall inurt: hJ the benent of the parties hereto. their respective heil ~. personal representatives. f:lli I;'CSSOB and assigns. Surface Owner has the right :0 comient: to ~uch assigmnent, :"I<:h consent will not be unreasonably withheld. 3, This amendment to the agrv' 'ment shall be construed under the laws of the State ~f Texas, without reference 1.' conflict of law principles which would require ~ le application of the la.w of anI II her jurisdictio~ and exclusive venue shall be: in Dente -n County, Texas for an)': (:laims la.wsuits or actioJis in COIlOeetiOD with tI1 ~ Agt'eement. .... ,........j I ~l I I In"1' I~IT. Lln"'&J...J 04/29/2004 09:33 FAX 36136228~ HUGHES 2J 003 4. In the event of any conflict 1" tween the parties hereto such thilt either puty brings I Ir commences any legal actio)" ,'Ir proceeding related to this license, incll1ding but n It limited to, any aotion pursl1illit to the provisions of the Texas Uniform Declarato: y JudlPll\mts Act (Tex. Civ. 1'1 .le. & Rem. Cooe ~ 37.001, et seq., as aInended), tI e parties hereto agree to waiv~ day and all rights to recovery of attorneys fees to wbi~ b. the prevailing party might 01 h;'rwisc be entitled.. 5, This amendment to the agrl.." lTIent shall never be construed to COllStitute the partil S hereto IS partners or joint '. I 'Iltur~ OT to create 11 relationship of principal-ager ~ employer-employee, trustee 1'll1leficiary, an association for business or profit. or lr y other relationship. legal or "Iluitable. among the parties hereto. In all respects, ear II party shall be responsible for its own conduct in connection with the subject matter I f this Agreement as though it 11..::re an ind.opendent ~tra.ctor. free from all control ar i ~tion of the others. 6. This amendment to the 8g1't':'lnent may be executed in multiple counterparts, each ~ f which when taken together 1'11.;111 constitute but one and the same instnunent, but nor e of which shall be effeetive IlI1m and unless executed by all parties named bereu.. Additionally. this AgreemCll1 may also be executed it1 multiple originals, anyone c f whioh, when fully executed ,15 herein provided. shall be effective for all purpose '. 'When fully executed as hCI';lJl provided. the terms and conditions of this Agreeme3 1 shall be bindin,e upon. and I nure to the benefit of. the parties hereto, their heir, iUceessors aDd assigns. 7. EXECUTED by each pan:, hereto to be effective as 0 f the later date of tb ~ acknowledgment for c:ach p.lIlY (the ''Effective Date'). fYI~ et Date: ATTEST: ( ) Date: J{/ 21/0 if' f f . APPROVED AS TO FORM: ,- C'...J I.II-lTC" J ~ "'~::o '::'::0 '..J.dH >=,Rr'}-b17>.: 0V6: 'ON Xl::l.:l l~od~~t uo+uaa: WO~~ 04/29/2004 09:33 FAX 36136228 HUGHES .. ". ". Operator: DAN A. HUGHES G By: Dan Allen Hughes.) Attorney in Fact :fi Dan A. Hughe, P.O. Drawer 669, BeeYille, Texas 78104-0669 Date: 141004 04127/2004 08: 49 FAX .161.162U" , -------------...-... o o W. NEIL A-9YO _ _ - SURVEY LINE -,-,- FENCE LINE ROAD +-----.----. LEASE LINE HUGHES T. TOBY A.1285 lO-110J'!-ol' .r-' -..------;-;,j.' ~I,-. "T- O D' 0 I 160' I,_.~ _J_ ~ 270' J o :, 'I \ ;\ :1 :1 I :1 I :l I I , 1 I I 1 \ I I 1 \ ------ - -- - -- .. ......- ... ---- J. HARDIN A - 1 656 Enlargement of Well-Sol "'l100'j" Proposed r-- x .---.- Entrance, I I ~ '\ x 'rx-x DDL~.~ ... 270' . Dan A. Hughes Company Site Plan Plat City of Denton Airport #2-H 141007 s Area --L- 1001 ---.- 160' __1- t} M,L-' J 1:. AMENDMENT TO SURFACE USE AGREEMENT CITY OF DENTON AIRPORT This Amendment to the Surface Use Agreement City of Denton AirpOli of January 1 i\ 2002 ("Amendment to the Agreement") is made and entered 1nto effective this 30th day of August, 2004 by and among the DAN A. HUGHES COMPANY, whose address is a P.O. Drawer 669, Beeville, Texas 78104-0669 (Operator") and the CITY OF DENTON, TEXAS, a home rule municipal corporation, acting by and t]uollgh its duly authorized City M~.nagcr ("Surface Owner"); WHEREAS, Operator and Surface Owner desire to enter into an amendment to the above mentioned agreement regarding Operator's use of the Lands for its proposed oil and gas operations thereon in cOlmection with Operator's gas well operations on the Airport Property. NOW, THEREFORE, in consideration of the premises and the covenants set forth below, Operator and Surface Owner agree to amend their agreement to add these additional provisions as follows: 1. An annual lease at the rate of $0.08000 cents per square foot for a tract of land totaling 35,629.94 square feet, which is $2850.40 payable annually to be used for a gas collection pipeline. Attachment A, a survey of the leased premise from Alliance Area Surveying, identifies the proposed tract of land. A survey showing the corrected ] 5-foot width of property lease will be provided no later than 30 days after the signing of th1s Surface Use Agreement Amendment. Such payment for land to be payable upon completion of construction and each year anniversary thereafter until gas pipeline removal. Operator shall remit the payments required in tbis paragraph payable to the City of Denton, the Surface Owner. 2. An alUmal payment of $10.00 perrod for a total of 87.81 rods (1404.95 feet), which is 5878.10 for the right of way to lay a gas collection pipeline on Airport property. Attachment A, a survey of the leased premise from Alliance Area Surveying, identifies the proposed tract of land. A survey showing the corrected 15-foot width of property lease will be provided no later than 30 days after the signing of this Surface Use Agreement Amendment. Such payment for pipelines to be payable upon completion of constmction and each year anniversary thereafter until removal. Operator shall remit the payments required in this paragraph payable to the City of Denton, the Surface Owner. 3. An annual lease at the rate of $0.08000 cents per square foot for a tract of land totaling 200' x 400' 'well site or 80,000 square feet, which is $6400.00 payable annually. Attaclunent B, a survey of tbe leased premise from Alliance Area Surveying, identifies the proposed tract of land. A survey showing the corrected dimensions of the property lease w11l be provided no later than 30 days after the signing of this Surface Use Agreement Amendment. Such payment for land to be p8yable upon signing of this Surface Use Agreement and each year anniversary thereafter until the well is abandoned and plugged. Operator shall remit the payments required in this paragraph payable to the City of Denton, the Surface Owner. 4. This amendment to the agreement shall be construed under the laws of the State of Texas, without reference to conflict of law principles which would require the application of the law of another jurisdiction, and exclusive venue shall be in Denton County, Texas for any claims lawsuits or actions in connection with this Agreement. 5. In the event of any conflict between the parties hereto such that either party brings or commences any legal action or proceeding related to this license, including but not limited to, any action pursuant to the provisions of the Texas Uniform Declaratory Judgments Act (Tex. Civ. Prac. & Rem. Code 9 37.001, et seq., as amended), the parties hereto agree to waive any and all rights to recovery of attorneys fees to which the prevailing party might otherwise be entitled. 6. This amendment to the agreement shall never be construed to constitute the parties hereto as partners or joint venturers, or to create a relationship of principal-agent, employer-employee, trustee beneficiary, an association for business or profit, or any other relationship, legal or equitable, among the parties hereto. In all respects, each party shall be responsible for its own conduct in cOlmection with the subject matter of this Agreement as though it \vere an independent contractor, free from all control and direction of the others. 7. This amendment to the agreement may be executed in multiple counterparts, each of which when taken together shall constitute but one and the same instrument, but none of which shall be effective until and unless executed by all parties named herein. Additionally, this Agreement may also be executed in multiple originals, anyone of which, when fully executed as herein provided, shall be effective for all purposes. 'When fully executed as herein provided, the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto, their heirs, successors and assigns. 8. EXECUTED by each party hereto as of the date indicated beside its signature, to be effective for all purposes as of the Effective date. ATTEST: ~ J cl1l1ifcr \Valters, City S ccrctary Date: APPROVED AS TO F /,r) I . .,t// /, / ~-L/ J / G.--?;;/ -- Herbert L./routy, pt { /' / J / RM: / Surface Owner: ~~- ~, ~ ssistant City Manager NTON, TEXAS Operator: BY~t2/~ Dan A. Hughes ' DAN A. HUGHES COMPANY P.O. Drawer 669, Beeville, Texas 78104-0669 STATE OF TEXAS S ffE S COUNTYOF BENTeN S Before me, ~~Ri Nt:.. ft. You AXi ' the undersigned notary public, on this day personally appeared I>l ~ ~f1'ift~;:: , the ~e.)>, of j)JtN It. ~es ~-AJ_ OM G~ocatton. .,/ v' known to me; proved to me on the oath of ; or proved to me through his/her current {description of identification card or other document issued by the federal government or any state government that contains the photograph and signature of the acknowledging person to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed that instrument for the purposes and consideration therein expressed. Given under my hand and seal of office this 30th day of August, 2004. ".- '::~~'~~'---"X':C~~~.-:;:':::.!;:::>...:>~:;i..t.,~_-=-::.::._ . ':'><~ KATHE8If'!E A. '(QUilG . ,.c.>" \~'.:"'<0 NO'I'i' PY PlJBLIC ~,' .-' ^"(J)"- L..', J ! \",',' .;:.---"'';. F: STAl'E OF' 'P"Y .'8 :;.' ~, .L.~ /"1" ., _u....J+...I.~ ~ ._'..~-;_(::-,.;. PIJ tnm'1"is<!'op t"""I'r;S"1 '-'Jf( ....~~r. r \' I'J _.... ..1'_ .1 Ln;...'.. i ._-.:::.~. . -' "'>T-<~.~~~'~::" -= T ~~~ c-_.:~:: ~':;-:":'-~:::-., ::;":--- -:- ~. -~ . MEMORANDUM OF SECOND AMENDMENT TO SURFACE USE AGREEMENT The Memorandum is being executed for the purpose of giving notice of the existence of that certain Surface Use Agreement dated effective of even date entered into by and between, whose address is (as "Operator") and the CITY OF DENTON, TEXAS (as "Surface Owner") regarding Operator's use of the lands owned by Surface Owner located in Denton County, Texas, to wit: (the "Land") for Operator's oil and gas operations on such lands. Dated effective this, August 30, 2004. Surface Owner: \. ~ i Jon'fortun Assistant City Manager CITY OF DENTON, TEXAS ATTEST: Jennifer Walters, City Secretary APPROVED AS TO FORM: --- (:;\ / -j- ~~ ,I .) .?" ,.. '- / ./ &(l;jL~-}-/c'--u~../i4--L) Herb Prouty,vCity Attorney GAS PIT -!INE EASEMENT EXHIBIT DEN1 '-.~ MUNICIPAL AlRPORT 1.636 ACRES FIELD NOTES to 011 that certoin troct of lane: situated in the WILLIAM NEIL SURVEY, Abstrae! No. 97D, in the City of Denton. Denton County, Texas and being a port Df LDt 1, Block 1, Southeast AirpDrt Addition, on addition in the City of Denton c.ccarding tD the plat thereof recorded in Cabinet G, Page 295 of the Plot Records of Denton County, Texas, and a part of 0 tract of land nDW Dwned by the City of DentDn Municipal Nrport; the subject tract being more particularly described os follows: BEGINNING at the intersection of the South I:ne of said Lot 1 and a 25' building line as shawn on said Pial, from which th~ Southeast corner ')f said Lot 1 bears North 86 degrees 43 minutes 03 seconds East at a distance of 25.01 feet; THENCE Sauth 88 degrees 43 minutes 03 sGconds West with the South line thereof 0 distance of 30.01 feet; THENCE North 00 degrees 06 minutes 03 seconds West parallel with and 30,00 feet Wesl of soid building line 0 distance of 1405,57 feel at tne beginning of 0 tangent curve to the left having 0 radius of 215.00 feet, 0 chord bearing and distance of North 02 degrees 23 minutes 20 seconds West, 17.16 feet and a delta on~le of 04 d"grees 34 m;nutcs 23 seconds; THENCE along said curve parallel with and 30.00 feet West of said building line an arc distance of 17.16 feet; THENCE North 89 degrees 39 minutes 14 s~conds West pDrollel with and 30.00 feet South of a 60' access and utility easement as shown on sc:d Plat 0 distance of 436.14 feet tD the East line of a 60' access, drainage ar,d utility easement o~. shown on said Plot; THENCE North 00 degrees 20 minutes 46 se:onds East with tht) East line thereof a distance of 516.42 feet to the Northwest comer of the ~erein described easement; THENCE South 89 degrees 39 minutes 14 s('conds East a distance of 30.00 feet to the Northerly most Northeast corner of the herein describ~d easement; THENCE South 00 degrees 20 minutes 46 sl-conds West a distance of 486.42 feet to the South line of said 80' Access and Utility Easement; THENCE South 89 degrees 39 minutes 14 s~,conds East with the South line thereof a distance of 434-.06 feet to the intersection of soid Soutt; line with said building line at the beginning of a non-tangent curve tD the right having a rod'us of 245.00 feet, a chord bearing and distance of South 05 degrees 37 minutes 30 seconds East. 47.16 feet and 0 delta angle of 11 degrees 02 minutes 44 seconds; THENCE along said curve and said building I:ne an arc distance of 47.23 feet; THENCE South 00 degrees 06 miriutes 03 seconds East with said building line 0 distance of 1404.95 teet to the PLACE OF BEGINNING and enclosi:',g 1.636 acres of larid, more or less. CERTIFiCATION; I hereby certify that! have conducted on accurate on the 9round survey of the premises depic'.ed hereon and described in the legal de':cription attached hereto and that the findings and results of said surVey arc true and correct to the best ~f my knowledge and belief and that the size, type and locotion of the permanent improvements are cs shown. and that said survey correctly shows the location of 011 alleys. streets, rights-at-way, and easemer.s of record of which the undersigned has been advised effecting the subject premises according tD th" descriptions of record, and that except os shown there ore no visible encro?~hr:nent.~, :ci~Lble overlaps, visit..e conflicts or visible protrusions. --., n - _c~...:~ f . ", ". '-- ~ .... t J.E. TrlOMPSON II R.E'.C:S, No 4857 Date THIS SURVEY NOT VmD ~ ~ ...... o c: ..., !t::;~:2;:) ) '.'.'., I" ) * 0"- * \ (( J. E. ThCi:,!PSOK]f ~ " >:-7:\~, '>0:; i ~ ,', ~S-/ \. "':".::, c s s;. . (.... j(- ......~ ~_. .0,..... ~~ --~-~;f-P?' U) C=::I F ~;' ALLIANCE ',: AREA "URVEYING JOB NUMBER:lo20B01-3 114-B MAIN STREET DATE: 18-4-4 GAlNESVILLE'. TX 76240 DRAWN BY: !Her 940-665-9105 OFFICE CHECKED By.iJET 940-665-9106 FAX '; ',,,. .,u,. ..:"'.'.' .'. ':'.'" R.P.L.S. ,JET P.O, BOX 507 KRUM, TX 76249 940-4B2-6723 OFFICE 940-482-3650 FAX t=:l 8 o U) Ul t:<.J t:.: [ttf:zA(h,~ 14 GAS PIPELP-~ EASEMENT EXHIBIT D,ENTON . .JNICIPAL AIRPORT 1. .636 ACRES S 89.39'14-"[ 30.00' , 10\1 t,'i SU I' 'IG ,,'~\\. "'0 9 \\ " c'\ \, . S\\ZP-.. ,,\1- ~ C'l '<t '<t to UJ !Xl "<l' I.{) DENTON 3: w . MUNICIPAL ' . c.o I to "<l' AIRPORT ,-.:- 0 io C'l .N 0 ,0 0 0 z - Vl~ --- sc.' ,t.,.-:'[,~',':. Go- ;jru....I~.. t::"S-(M~~.> S 8S' 39' 14"[ 434.06' z ." I '" I .:Ji >- ' ~ I , S : R=215.00' "0 ICH=N02.23'20"W 17.16' i : DELTA=04.34'23" ~ ~ <> ' - I "'. r;j I E j "' I g~ 'N~::9'14"W 438.14' L=17.16' LOT ~ J BLOCf< 1 SOUTHEP:ST !AIRPORT ADDITION CABINET G, PAG::: 295 , I I 1 "=200' THIS SURVEY NOT VALID~ >-J ::c o G ...., tr:l 8 o Ul Ul t:-":I t:::I j~~52!~s.\ ; ,> ;.,c{ * l. ',< ,r. L~. TH 0 \,1 PSO!\ ~, , {.' !\->> ,i:I:~{ J'~'~~~/' .L"_~- ' '.'11 ~/.:~ ". "<.~~ L=47.23' R=24S.00' -- __ ":-CH=SOS.37'30"E 47.16' ;/: DELTA=11'02'44" ,0 '6 : 'CD '. , i~ .~ I:~ 'd~ 'Z ,;:0 DR\'f,'\ ~D\~ S \t'.=jD y.~\' .' ~o .\. ..rrv.}.c. \ r-,B:J1 Z ,Ul i o '0 ~ iC:;:! o ,0 ~. :6- i Uol Uol ~- ~I -I>- o UI U1 -..J ;:1 '0 ..,. wi U1 : I r- - - -- - .. -- -. - - I '- - - ..- ~ S88<i3'03"W-30.01' P.O. BOX 507 KRUM, TX 76249 940-482-6723 OFF1CE 940-482-3680 FAX it~LLIANCE :,' AREA "URVEYIN G JOB NUMBER:io20801-3 114-B },WN STREET DATE: 18-4-4 GAiNESVILLE, TX 76240 DRAWN BY: IHeI 940-665-9105 OFFICE CKECKED BY'! JET 940-665-9106 FAX .: ',r" e.OC. "..",; . .'" RP.L.S. :JET Ul t=j > t"" I I s\J?S'S'{ J. :B\i'?-~ l. /l,: \ 9 $J t \q. \11Lfl,C1 '1;-1.0. t- ,US'll< .~- - -1-", ~" t{J;tAdt1~+E -- I f\\!~1 , Jji S~ \'2.~~ '\ ,\0 '1 ~o' 'S.t\=thC l""B -i ~- I ~ __oj I i ~-%- j dD....Jf.i DUHON . ~ \ S V (\.. ~)'"I 0 AIRPORT "C I ...,q. '(; \;\:'t \'l. 0 ' ".---------- WCLUICA) I..t3S'jl:tP-. \ r -% ~> \ \y,?-\rr~\ 1 .-:>IJ\I'I S \.o()O , \\t....,t'- '" ~o' t. J. .....,"Yt!\c ~ ~ t'"..:B':J\. 40 ACRE~.. DE.f'ITON LEASE - AIRPORT '0' / ~,ELLliU-D - ~-"lfiO '-' '-" <,' i..' ..,<..7 B.'-J\:> \. \11\ S-U \ \'Ot) ~ StJ. '\ ~o' ~US't"Rt..C %w ~P-J ~ i~ D\1'1 e,'i l>'O s '7 ':, )\C-oO~h't ~o. & J. 'Oc~'RI\C p..\p) t t 1"~1000' r t.$~tl ~ I I cortify thi~ plat 10 bo truo and COTToct 10 the bost of my knowledge. I - % fl~ t %; smt~~ 'DI"-cO , ~o. \ J. :\R!\.C1_. - ~--- \j~~~- l?\}t;\ 'i S\. 'C.9 {j-- -.~.(B'R~ 'lo.~O 'Z.) \\'{.l'1! l' >~ . \.. ~''I'~f\C ~\3';) \. P.O. BOX 507 KRUM, TX76249 _.' 940-482-6723. OFFICE 940-482--:3680 FAX::;':: ~ALLIANCE -., AREA ;URVEYING Date Operator. Dan A. Hughe3 CompclnY Lease Name &: Well Number: AIrport "D" EIlWaUon: 632 JOB NUMBER:020BOl-3 114-B MMN. STREE~ DATE: 08-09-0 GAINESVILLE, TX 76240 DRAWN BY: Her 940-665-9105 OFFICE CHECKED BY. JET n~cE~~~~.~~::.~:_~6 FAX R.P.L.S. . JET Nll<lre~t Town in Caunty: 1 Milo We~t of Denion, Texas ~/uj 6:v~ ~ .-.. . .+,,-p. ....-- or-....nT ~n nI ~n1:J I ...,...,--.ro.. ,.,,.. l trr ~ I.' CJ (/) ,J' w r. :J ~ ;:) ":;l w CJ ~ ., ci o '.n VI w U U < o cj) r: ~ h c'-:' '<--' :2 '"1" ? ~ -- -=-L OKU t :--' I t- ..c :i-:: _ ~- ,.- :-.Ii -- ~ ~ r- ~ , - ~ Y., .~~ ~ ~ :0 C\ r~ ::::: ../ ~) .=> r;l -:.r. ~ .", -, - ,,' L::. o (' t:;1 l ENTON MUNICIPAL AIRI RT #G.U. #l-H & CENTRAL FACILITY SITE LAYOUT LOT 11 BLOCK 1 SOUTHEAST AIRPORT ADDITION CABINFT G; PAGE 295 PROPOSED WELL HEAD ~ I RESERVE PIT <~, I \ \ I :\ I \ Q \ \ % \ \ \ GUY ANCHOR (TYP.) TANK BATTERY ew:#~ : II II II I I I I II I II II I 1 I II II I I I /Vtf I~-, I I I l~ :c o , I I: I Ii I II ~ r..1 ~I la ! ~ . 11 I :=J T- o - -. _w - --- 60' ro,\O EASn.lE~~_ . I--+---- I OHl.J---~-..~OHU- OHU'-L, II I-'J _ -----=---(j- . _ =-_ :.::-.- -- EY1"s..TJtID..G~AV(- R:J'/;;l.Ll J _ ___ '---2 --rr.l. _ .-----L' ~ALUANCE -':$~::~NG JOB N1ndBER:020801 d 114-B MAIN STREET DATE: 8-9-04 GAINESVIl.LE~ TX 76240 DRAWN BY: IRe! ~:g=~~~=~~g~_..~~CE CHECKED BY:IJET "'" ",on. .r.'f.'O l(n'-~~-M R.P .L.S. JET P.O. BOX' 507 KRUM~ TX "76249 ...... 940-482-6723'0FF1CE 940-482-3680 FAX';'" 1"==100' 1--....,..,f""'I~ nTALJn err :nl -loa L1 ~nCl AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Planning and Development Department CM/DCM/ACM: Jon Fortune, Assistant City Manager SUBJECT - ADP05-0003: (Denton Bible Church) Consider adoption of an ordinance approving an Alternative Development Plan for approximately 30 acres located in Neighborhood Residential Mixed Use (NRMU) zoning district. The proposed site is generally located east of Nottingham Drive, between University Drive and Mingo Road. The purpose of the Alternative Development Plan is to deviate from the requirements of Subchapter 13 of the Development Code. The Planning and Zoning Commission recommends approval. (5-0) BACKGROUND Applicant: Pacheco Koch Consulting Engineering Dallas, TX The purpose of alternative development plans is to provide a mechanism for those developments that choose to or cannot meet the site design standards, but nevertheless meet or exceed the objectives of the Denton Plan and Development Code, to proceed with approval under SubChapter 13. The applicant is proposing to vary from the site design standards concerning parking and vehicular circulation. OPTIONS 1. Approve 2. Approve with conditions. 3. Deny. 4. Postpone consideration. 5. Table item. STAFF RECOMMENDATION Based on the following findings, staff recommends approval of the Alternative Development Plan requested to deviate from the parking and vehicular circulation requirements: 1) The proposed additional Landscape area, tree canopy cover and the shrubbery screen, ensure a quality development that meets the intent of the regulations of the Development Code. 2) Existing infrastructure is adequate to accommodate the development. 3) The proposed development is located in Existing Neighborhoods/Infill Com pati bili ty. ESTIMA TED PROJECT SCHEDULE The subject property is zoned Neighborhood Residential Mixed Use (NRMU) zoning district. Commercial parking lot is not a permitted use within NRMU zoning district. The parcel on which the Phase 2 parking lot is proposed will need to be replatted along with the existing church parcel. PRIOR ACTIONIREVIEW The following is a chronology of ADP05-0003, commonly known as Denton Bible Church: On March 2,2004 an Alternative Development Plan was approved to allow for parking between the building and University Drive. On August 6,2002 the subject property was rezoned from Neighborhood Residential (NR-3) zoning district to Neighborhood Residential Mixed Use (NRMU) zoning district. Ordinance 2002-040, adopted on February 20, 2002 placed the subject property in Neighborhood Residential (NR-3) zoning district and land use classification. Prior to the adoption of the Development Code, the property was zoned Single Family 7 (SF-7) and Multi-Family 2 (MF-2). A Predesign meeting was held September 4,2003. ATTACHMENTS 1. Staff Analysis 2. Maps 3. Site Photos 4. Aerial Map 5. ADP - Site Plan 6. ADP - Landscape Plan 7. July 13,2005 Planning and Zoning Commission Minutes 8. Ordinance ~y Supriya Chewle Planner I Respectfully submitted: 4~ Kelly Carpenter, AICP Director of Planning and Development 2 ATTACHMENT 1 Staff Analysis Summary of Alternative Development Plan Request S 35.13.10.B.1.d (Permeable paving Requirements) states: "Permeable paving IS required for those parking spaces that exceed the number of parking spaces required" The applicant has previously built 1055 parking spaces in phase 1. The total number of allowable parking spaces for this development is approximately 1241 parking spaces. In phase 2 the applicant is proposing 455 additional parking spaces. Which exceeds the allowable parking by 269 spaces, which relates to approximately 107,600 sq.ft. of permeable paving area. S 35.13.10.B.1.c (Vehicular Circulation Requirements) states: "Parking lots with 100 spaces or more shall be divided into separate areas and divided by landscaped areas or walkways at least 10 feet in width, or by a building or group of buildings. The applicant is proposing two areas within the parking lot with 139 parking spaces and 118 parking spaces without separation. Instead of the permeable paving and the vehicular circulations separation design, the applicant is proposing to increase landscape area and tree canopy coverage within the parking lot area. The table below identifies the required and proposed landscape area and tree canopy: TABLE "A" ITEM MIN. REQUIRED PROVIDED DIFFERENCE PARKING LOT INTERIOR Landscape Area: 7% 11,671 sq.ft. 36,104 sq.ft. 24,433 sq.ft. Tree Canopy Cover: 15% 25,010 sq.ft. 67,824 sq.ft. 42,814 sq.ft. BUFFERING AND SCREENING Miscellaneous 0 780 1ft shrubbery 780 1ft. screen Existing Condition of Property The property has a church, chapel and educational facility on the property. Adiacent zoning and land uses. North: South: Commercial Mixed Use General (CM-G) Neighborhood Residential 2 (NR-2) 3 East: West: Neighborhood Residential Mixed Use (NRMU) Neighborhood Residential 3 (NR-3) Comprehensive Plan Analysis The site is located in an "Existing Neighborhoods/Infill Compatibility" future land use area. New development in this district should respond to existing development with compatible land uses, patterns and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land uses is allowed. The Denton Plan defines compatibility as: "The characteristics of different uses or activities or design which allow them to be located near or adjacent to each other in harmony ... Compatibility does not mean "the same as." Rather, compatibility refers to the sensitivity of development proposals in maintaining the character of existing development" (p. 188). "Off-street parking requirements should reflect respect for environmental quality considerations. Parking location and associated landscaping should be carefully regulated to avoid unacceptable expanses of pavement. Large parking lots should be broken into smaller sub-lots. Parking standards should be carefully set to avoid unnecessary pavement. Shared use parkingfacilities should be encouraged" (p. 66) Development Code/Zoning Analysis The proposed plan deviates from the parking and circulation standards established by the Development Code. 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 di screti onary." Section 35.13.5.A. identifies the criteria for approval of an Alternative Development Plan. A. Criteria for Approval. The goals and objectives which must be met, and by which the proposal will be judged are: 1. Preserve Existing Neighborhoods. 2. Assure quality development that fits in with the character of Denton. 3. Focus new development to activity centers to curb strip development and urban sprawl. 4. Ensure that infrastructure is capable of accommodating development prior to the development occurring. 4 ATTACHMENT 2 locationl Zoning Map land Use Map 5 NORTH ATTACHMENT 3 Site Photographs SUBJECT SITE Existing Parking lot along University Ave. Parking lot along Mingo Rd. 6 ATTACHMENT 4 Aerial Photo 7 . ~ II . :J: e 51 . ~ I '" II . ~ II . ~ II (I ::J ~ oj) . L ~I 0 (swu 0 11. 1.:: I!! N ..- "' ~ N . 1lj~ oj <: U " ~~ .. >- f-~D:::: i!! ~. 0 - ..J . n::: z " ZOJ=:J -Z I- ~"- r- <C ~ W~ 'U (j) . 5~ '" , "l i!! WOJI ~ n:::Z :;; @ <C Q 00 ~11. '" 0- n . 0 U ,l.L..U 'l ..=t ~~.~ )--. o z ...,jij! <l~ lk:l~~ "-'IU Z-~. t5li~ b~ i~~ .~~ hh ~~~! '1h ~h ..1. i'~d ~= In ~.~. ~,.~ ~.i. 11!~ I( .il~ !:;;iI. ~ .~~. "-0' ~I~ - ~ol .J; . ~ ~I ~ ,!l i ~I~ !~: I ~~~ ~. i. ~~;~ ~ ~ I; ~ ~; ~ ~ :".~ ~..!. .! ~~ ~. z i"" i ~ K ~ .~ , I \ ' , I \ \ I , \ \ ' \ \ , I , \ I " \ \ \ ~ ': " \, u~" -J~ \ ia. ~ \ I ~ o~ ~ \ \ \ ~cn ~ I \.... \ \ 0 \ \a)~ , I\L"-i, \ \ ~)~ \ , ~ I , I , I \ ' , , , , I I -L...-+__\ I --.---\=-= \ , , , \ , L , , , , , , \ i \ \ \ \ I \ L I \ \ \ \ \ \ \ , , , I , L , I I , I I I \ , , , , i ~. "~ I~. J~ g~~ .~~ ~i~ ~~, . ~;d iln ~"n ~ii i h~~ "NY1d 3~IS z c .... co a. I- zw Wa. ~c OCJ ~CI) !;:c z c .... . '" 9 . '= I o I: ~ <( ::l j. :( i ,- N .:.: z ~ W Q "" . Vl o . ~ ~ ;S ':lb. ... ,:i\,. <( :J '" -::ll '" '1: ..~..ll X Q2 :;c :2: w c.. <( U en C Z <( --I - U Ii Ii ~ l'l <0 g g :" :" ro ro " ~ '1 ro Ci ;.;\ oJ " - Ii Ii U '" ~ Ii Ii 8 g g ~ w ~ g g 0 l'l ~ > ;ii ~ '" 55 g i s ~ ro 1\1 ~ <( '" ~ ~ 0 ~ m ~ !i U CL :0 8 bl 'i '" 0 1Jj z z 0 15 ~ ::; ~ N ::J ~ - '0 ~ , ~ ~ ! ~ Ii Ii ~ W <0 g g Q ~ <0 <0 <0 <0 ~ <( M' <0 <0 S' S' :2' '0 ~ w '" <0 - ~ :0 Z g ~ z ::; z - ~ ~ I-- 6: 0 z (!) <( z 0 >- S2 Ii ~ '" (!) 13 91 z <'E z z '" ~ 0 @ z U 0 ~ Ii U) os UJ ii:i <( ~ g () <i 5' ti:i '" z '" [3 ~ 8 ~ ;! z () <( ?; ~ '" ;i: w on ~ ii:i U) ;( '" 9 0 I N ~ U) c5 ri/5 CO :0 '" 0 0 - 0 ~ w ~ 0 '" UJ i'ii 8 <( 5: Ifj ~ <( z w () w 9 9 :;:: '" ~ Z if> Z 0 z UJ Q 0 0: <( f--- :?' ffi fB ~ z ~ z '" if 0 tE ~ t ;s: '" S2 <( w <( a 0 w 0 Z ;" '" ~ fjj ci tt '"' bl '" Cl Z '" :0 Z ~ ~ '" i2 0 t;; 0 g 3: oi ::J ~ ~ <'E ::; '" 0: Q Z co ~ 0 ::J z 0 z ~ 0 B in z ~ 0 0 z 0 ~ 0 w it on (; <( it ~ '" (; ct ~ on '" <( if ~ ::t z Cl ~ i=! z 0 ::; ~ Z Q ~ '" <( w 0 '" & S5 ~ ~ <( ~ e3 0 0 0 to> z '" Z .--' N CHEWLE.TXT 1 COMMISSIONER STRANGE: The next item on the 2 Agenda 1S gOlng to be an individual consideration, Item 3 No. D, which 1S an Alternative Development Plan for Denton 4 Bible church on 25.13 acres located approximately 1,350 5 feet east of Nottingham Drive between university Drive and 6 Mingo Road. 7 MS. CHEWLE: The property is currently 8 zoned Neighborhood Residential Mixed Use. The purpose of 9 this Alternative Development Plan is to deviate from the 10 requirements of subchapter 13 of the Development Code such 11 as parking Section 35.13.10.B.l.d and vehicular 12 circulation Section 35.13.10.B.l.c. The applicant 1S 13 Pacheco Koch consulting Engineering, Dallas, Texas. 14 The property currently has a church, chapel 15 and an educational facility on the property. The summary 16 of this development plan, the Alternative Development Plan 17 request is according to the Development code, permeable 18 paving is required for those parking spaces that exceed 19 the number of parking spaces required. 20 The applicant has previously built 1,055 21 parking spaces 1n Phase I. The total number of parking 22 allowable parking for this development is approximately 23 1,241 parking spaces. In Phase II, the applicant is 24 proposing 455 additional parking spaces, which they exceed 25 the allowable parking spaces by 269, which relates to ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 1 Page 1 CHEWLE.TXT 1 approximately 107,600 square feet of permeable pav1ng 2 area. 3 The other var1ance they're requesting 1S 4 from the vehicular circulation requirements. And 5 according to our code, it reads, parking lots with 100 6 spaces or more shall be divided into separate areas and 7 divided by landscaped area or walkways at least ten feet 8 in width or by a building or group of buildings. well, 9 those are this area and this area here. If they had 10 provided a division like this, and there was not more than 11 100 parking spaces within that area, they wouldn't requ1re 12 this Alternative Development Plan for that reason. 13 Instead of the permeable paving and the 14 vehicular circulation, there is a separation design. The 15 applicant is proposing to increase the landscaped area and 16 the tree canopy coverage within the parking lot. The 17 table provided in your backups and on the presentation 18 shows that the landscape area required within the parking 19 lot is 7 percent. And the applicant is going to provide 20 14 extra percent of landscaped area within the parking -- 21 within the interior of the parking. 22 The tree canopy required within the parking 23 area 1S 15 percent and the applicant is providing 25 24 excess percent over the required 15 percent. They're also 25 providing a buffering and screening, 780 linear feet ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 2 Page 2 CHEWLE.TXT 1 shrubbery screen as mitigation. 2 The proposed additional landscaped area, 3 tree canopy cover and the shrubbery screen ensure a 4 quality development that meets the intent and regulation 5 of the Development Code. Existing infrastructure is 6 adequate to accommodate the development. The proposed 7 development 1S located in existing neighborhood in-fill 8 compatibility. And based on these findings, staff 9 recommends approval of the alternative development planned 10 request to deviate from the parking and vehicular 11 circulation requirements. 12 If you have any questions, I'll take them 13 now. 14 COMMISSIONER STRANGE: Anyone have any 15 questions of staff? Just clarify for me. You lost me on 16 those percentages. Are they increasing 15 percent by 25 17 percent which is 4 percent or are they increasing 15 18 percent to 40 percent? 19 MS. CHEWLE: 15 percent to 40 percent, 20 that's right. 21 COMMISSIONER STRANGE: okay. 22 MS. CARPENTER: Would you like me to read 23 that into the record so it will be clearer? 24 COMMISSIONER STRANGE: Let's just have that 25 1n the record because it was confusing. ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 3 Page 3 CHEWLE.TXT 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 MS. CARPENTER: All right. The table A 1n the staff report on Page 3 of this item offers the following information. For landscaped area inside a parking lot interior the minimum required square footage of that -- such landscaped area for this project would be 11,671 square feet. The applicant has provided 36,104 square feet of landscaped area. So that's more than triple the m1n1mum requirement for an additional square footage of 24,433 square feet of additional landscaped area. The tree canopy coverage requirement is 15 percent which equates to 25,000 square feet minimum for this project, and the applicant has provided 67,824 square feet which 1S more than double the tree canopy requirement for a tree canopy area of 42,814 square feet, which is just shy of an acre. COMMISSIONER STRANGE: okay. Thank you. Mrs. Holt. COMMISSIONER HOLT: Yes. Is there someone here from the church? I wanted to know where all of this extra landscaping was going? I mean, it is a parking lot and where are they going to put all of these trees? I mean, I'm delighted, but MR. REAGAN: Hi. My name 1S Charlie Reagan. I'm with Alliance Architects and reside at 7612 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ITEM 4D CHEWLE.TXT PLANNING AND ZONING MEETING OF JULY 13, 2005 copella Court in plano, Texas 75025. I'm representing Denton Bible as a principle of Alliance Architects. Did you have a question? COMMISSIONER STRANGE: Mrs. Holt has a question. MR. REAGAN: If you don't mind, I've got a very, very short powerpoint color thing that's basically the same thing that supriya is addressing here. It may help you visualize just a little better what we're doing here. If I can find the mouse here. I can be trained. This 1S a representation that we presented of the previous ADP that we applied for when we applied for the ADP whereby the city requested we enhance the street scape along 380 just to give you an idea of some of the construction that we've done to enhance this, and just to give you an idea of where we've gone with this. What we're proposing is the Phase II parking here as supriya was saying, just as a point of reference, this is the overall site. The m1n1mum landscape requirement for trees along the thoroughfare are along the right-of-way here along Mingo here have already been planted, one for every 30 feet. Those are not included in the calculations that you've been glven. All of the landscape that we've provided is up in this area Page 5 4 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 CHEWLE.TXT here, okay. ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 What this landscape plan shows 1S the m1n1mum landscape requirements for the area. This slide here zooms in on it a little bit more. The two things that we're applying for is the mitigation of the permeable paving by enhancing the landscaping. The other one, as supriya mentioned, that we've got a separation between these two walks that's greater than what the city normally allows. The reason for that is it is more in keeping with the already established circulation patterns within the parking lot. So what we've done 1S provide a 16-foot wide landscape buffer here with a walk and trees along these areas. That increased the amount of overall pav1ng, I'm sorry, landscaped area, and then we've got the enhanced landscape buffers along the side of the drives here as well as this area here. And if I may, one more slide, we've also added a large row of shrubbery along the south side of the site to enlarge a little bit more here to show you pretty much exactly where that happens. Does that answer your question? COMMISSIONER HOLT: Yes. And why not use Page 6 5 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 CHEWLE.TXT the permeable parking, permeable MR. REAGAN: From a technical standpoint with the type of soils we have in this area, permeable ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 pav1ng allows water to get under the pav1ng, it causes ground heave, cracks concrete and it causes drainage problems. Just technically, it's not real feasible. Does that mean my time is up? In talking with city staff throughout the course of this process, really the intent of the permeable pav1ng 1S to avoid the big massive parking lot look that you get a lot of times in say a big Wal-Mart or something where there aren't a lot of landscape requirements in a city. The issue here was really more aesthetic than anything else. COMMISSIONER HOLT: Along this side there are apartments that are pretty close on this -- what is this the west side? MR. REAGAN: On the east side here. COMMISSIONER HOLT: East side. MR. REAGAN: There are apartments along here. COMMISSIONER HOLT: Are there gOlng to be shrubbery along there or just the trees? MR. REAGAN: Landscape requirements requ1re Page 7 6 CHEWLE.TXT 22 a six-foot fence along this side where we will have a 23 stained cedar fence of six feet. We've also got a 12-foot 24 landscape buffer plus we've got this row of trees here 25 that's going to create -- you'll see the six-foot fence, ITEM 4D PLANNING AND ZONING MEETING OF JULY 13, 2005 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 questions? this item? and then you'll have the tree canopy which will certainly block the views of the cars. And as they mature, they'll end up blocking the views of the building. COMMISSIONER HOLT: Thank you. COMMISSIONER STRANGE: Anyone else have any Thank you very much. Any other discussion of Do we have a motion? COMMISSIONER WATKINS: Motion to approve. COMMISSIONER HOLT: Second. COMMISSIONER STRANGE: Have a motion by Mr. watkins, a second by Mrs. Holt. If there is no other discussion, please vote. Mrs. Holt, your vote didn't register. Vote passes 5-0. Page 8 J:\OUT Documents\Ordinances\05\ADP05-0003 .doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AN ALTERNATIVE DEVEWPMENT PLAN FOR APPROXJMATELY 30 ACRES OF LAND GENERALLY LOCATED EAST OF NOTTINGHAM DRIVE, BETWEEN UNIVERSITY DRlVE AND MINGO ROAD, wrrHIN A NEIGHBORllOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT; PROVIDING FOR A PENALTY IN THE MAXJMUM AMOuNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (ADP05- 0003) WHEREAS, Pacheco Koch Consulting Engineering has applied for an alternative development plan which is on ftle in the City's planning Department, a copy of which is attached hereto and made a part hereof as Exhihit" A" (the Alternative Development Plan), on approximately 30 acres of land particnlarly described in Exhibit "B" attached hereto and made a part hereof as Exhibit "B" (the "property") which is located in a Neighborhood Residential Mixed Use (NRMIJ) zoning district; and WHEREAS, on Jnly 13,2005, the planning and Zoning eonnnission recommended approval nflhe Alternative Development Plan; which allows the applicant to deviate from ~ 35.13.1 O.B.I.d (permeable paving Requirements) and ~ 35.13.10.B. \.c (Vemcular Circulation Requirements) of the Development Code and WHEREAS, the City Conncil finds that the Alternative Development Plan is consistent with the Denton Plan; NOW, THEREFORE THE COUNCa OF THE CITY OF DENTON HEREBY ORDAlNS: 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 any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 4. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City SecretarY is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date ofits passage. PASSED AND APPROVED this the _ day of -' 2005 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: EULThffiBROCK,MAYOR PAGE 2 6 " e- o '" o '" <l. .... <( -.-: .~ g '" . cD ::; . ;s ~ :\ z 2 z " \~! 00 l.i..U ~. ~ tl m w ~ · '" i1 ~>2 . . =>!;1f .. t- 0.. Vl ~~ ~ :c ~ ;; ~K ~ ~ N '" ..- . tl .1 . ~ ej ~ I · :li II o i . ~ ij . ~ II Z I OWU I~~CL ZOJ~ L u rn ::r:: o u '" "" x: I I , , 1 ~~ ~; ". ~"g 3~! / ,.e ~~ ~:t , , -.,--- < ..... :c .- s:. )( W I i! .~ .~~ . i!i!;l:~ " ~., H ~~~ . '.l 'e' [:J .'~ ~~~ .- -!:; ~~[i~ ~ ~iii~~ 'i1i \;:~...!! -1&1 ]!;;i~::,; ..::1. ~.., a:'~O ~... w~d ~~~t z.~~ F~.~ ~i!~. ",Su .. .~~ ~.. '~'i i;~. ..~~ ~h~ ~~;i ~-~"- ;l~~ ...!\lIiiI ~~~ 'i~ ~ h.~ ; ~ ~~" ; =~~E ;; .. ;:~~ ~ l-- < =~" " Z~.~O < , -, ~J ~ii 'h i-. ~i~ .~! ~~. ~ ~~~ . ~.~ ~ Ii ~ i.~ ~ hi:! I:: ~. ~ EXHIBIT B LEGAL DESCRIPTION DESCRIPTION of a 30.200 acre tract of land situated in the William Lloyd Survey, Abstract No. 773, City of Denton, Denton County, Texas; said tract being part of a tract of land described in a Special Warranty Deed to Denton Bible Church recorded in Volume 5388, Page 2573 of the Real Property Records of Denton County, Texas and part of a tract of land described in a Warranty Deed to Denton Bible Church recorded in Volume 4657, Page 1224 of said Deed Records and part of a tract of land described in a Warranty Deed to Denton Bible Church recorded in Volume 4615, Page 1132 of said Deed Records and being part of Lot 2, Block B Denton Bible Church Addition, an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet V, Slide 880 of the Map Records of Denton County, Texas; said 30.200 acre tract being more particularly described as follows; The Bearing system for this description is based on a bearing of South 88 degrees, 53 minutes, 59 seconds East for the south right-at-way line of East University Drive according to the first referenced Denton Bible Church tract Special Warranty Deed; BEGINNING, at a 112.inch iron rod found; said point being in the south right-of-way line of East University Drive (U.S. Highway 380, a variable width right-of-way); said point being the most northerly northeast corner of said Denton Bible tract (first mentioned) and being the northwest comer of a tract of land described in Warranty Deed with Vendor's Lien from Mistry Enterprises, Inc. to SM7, Inc. d.b.a. Highland Food Store recorded in Volume 4311, Page 2828 of said Deed Records; THENCE, South 10 degrees, 12 minutes, 38 seconds West, departing the said south line of East University Drive and along the west line of said SM7 Inc. tract, a distance of 140.11 feet to a 1/2- inch iron rod found at the southwest comer of said SM7 Inc. tract; said point being the beginning of a tangent curve to the left; THENCE, southeasterly, departing said southwest comer of said SM7 Inc. tract, and along said curve to the left, having a central angle of 22 degrees, 52 minutes, 36 seconds, a radius of 682.59 feet, on a chord bearing and distance of South 01 degrees, 13 minutes, 40 seconds East, 270.74 feet, an arc distance of 272.54 feet to a S/8-inch iron rod found for comer; said point being in the west line of a tract of land described in Special Warranty Deed from BRE-N, Inc. to Denton Village East Apartments, L.P. recorded in County Cieri<: File Number 97-068469 of said Deed Records; THENCE, South 12 degrees, 39 minutes, 58 seconds East, a distance of 307.34 feet to a 1/2- inch iron rod found at an angle point; THENCE, South 12 degrees, 16 minutes, 07 seconds East, a distance of 273.69 feet to a 1/2- inch iron rod with "Pacheco Koch" cap set for corner on the north right-of-way line of Mingo Road (a variable width right-of-way, 110-feet wide at this point); from which a 1I2-inch iron rod with "Pacheco Koch" cap found at the southwest corner of said Denton Village East Apartments, L.P. tract bears South 12 degrees, 16 minutes, 07 seconds East, a distance of 50.31 feet; THENCE, South 69 degrees, 38 minutes, 26 seconds West, along the said north line of Mingo Road, a distance of 1231.91 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set for comer on the east line of the remainder of a tract of land described in a deed to Denton Bible Church recorded in Volume 2495, Page 675 of said Deed Records; THENCE, North 18 degrees, 26 minutes, 31 seconds West, passing at a distance of 121.74 feet the northeast corner of said remainder tract and the southeast corner of Lot 1, Block B, Denton Bible Church Addition, an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet L, Slide 108 of said Map Records, continuing, for a total distance of 363.77 feet to a 1I2.inch iron rod with "Pacheco Koch" cap found for corner; said point being the northwest corner of said Denton Bible Church tract (Volume 4615, Page 1132) and being the southwest comer of a tract of land described as "Third Tract" in a deed to Willie H. Rainey (Trustee) of the William V. Rainey Testamentary Trust recorded in Volume 4423, Page 1870 of said Deed Records; THENCE, North 73 degrees, 54 minutes, 27 seconds East, along the south line of said Willie H. Rainey tract, a distance of 91.68 feet to an old wood fence post found for corner; THENCE, North 72 degrees, 37 minutes, 13 seconds East, continuing along the south line of said Willie H. Rainey tract, a distance of 50.36 feet to a wood fence post found at the southeast corner of said Willie H. Rainey tract; THENCE, North 07 degrees, 46 minutes, 58 seconds East, along an east line of said Willie H. Rainey tract, a distance of 11.37 feet to a 1/2-inch iron rod found for corner; said point being the most northerly northwest corner of said Denton Bible Church tract (Volume 4657, Page 1224) and the southwest corner of said Denton Bible tract (first mentioned); THENCE, North 00 degrees, 35 minutes, 31 seconds East, along an east line of said Willie H. Rainey tract, a distance of 1054.96 feet to a wood fence post found for corner in the said south line of East University Drive; said point being the beginning of a non-tangent curve to the right whose center bears South 04 degrees, 56 minutes, 23 seconds East, a distance of 3749.72 feet from said point; THENCE, in an easterly direction along said south line of East University Drive and said non- tangent curve to the right, through a central angle of 00 degrees, 13 minutes, 54 seconds, a radius of 3749.72 feet, an arc distance of 15.16 feet, on a chord bearing and distance of North 85 degrees, 10 minutes, 34 seconds East, 15.15 feet to a 112-inch iron rod found at a TXDOT wood right-of-way marker at the end of said curve; THENCE, South 88 degrees, 53 minutes, 59 seconds East, continuing along said south line of East University Drive, a distance of 759.01 feet to a TXDOT Concrete Highway R.O.W. monument found at the beginning of a non-tangent curve to the right whose center bears South 06 degrees, 09 minutes, 49 seconds West, a distance of 3749.72 feet from said point; THENCE, in an easterly direction continuing said south line of East University Drive and along the said non-tangent curve to the right, through a central angle of 03 degrees, 43 minutes, 07 seconds, an arc distance of 243.36 feet, on a chord bearing and distance of South 81 degrees, 58 minutes, 37 seconds East, 243.33 feet to the POINT OF BEGINNING; CONTAINING, 1,315,501 square feet or 30.200 acres of land, more or less. AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Electric Utility Howard Martin, 349-8232 .. ACM: SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the city manager to execute a Professional Services Agreement with R. J. Covington consulting, LLC for consulting services relating to Task Order No. 05-F; providing for services related to final completion of the Transmission Cost of Service Case before the Public Utilities Commission of Texas; authorizing the expenditure of funds therefor; and providing an effective date. (The Public Utilities Board recommends approval by a vote of (5-0.) BACKGROUND On June 1 ih, 2003 Task Order 03-F with RJ. Covington, LLC (RJC) in the amount of $106,100 for preparation of an updated DME TCOS filing was approved. That Task Order was estimated to cover the cost of preparing the filing package and negotiating a settlement with the PUC staff. On October 25, 2004, DME made its 2003 TCOS filing with the PUCT. DME and the PUCT staff were not able to come to agreement on two issues in the filing, which caused the matter to go through the formal hearing process. On March 7,2005 Task Order OS-A, in the amount of $23,100, with RJC was approved for support and testimony during the hearing process. This Task Order was not sufficient to cover all the hearing expenses. Given the fact that the PUC staff had agreed to include 100% of all legal and consultant fees associated with preparation and support of the filing in the final recommended TCOS, RJC and DME agreed to wait until the entire TCOS process was complete and submit one final Task Order for the exact amount required to cover all expenses incurred. Task Order 05-F is that Task Order. DME received a favorable decision in the subject TCOS proceeding, which increased DME's TCOS from $995,000 to $3,955,195. This amount included recovery, over a one-year period, of all legal and consultant fees associated with preparation and support of the filing. OPTIONS 1. Approve this Task Order, which allows payment to RJC of the full amount of funds provided in the TCOS decision to cover its filed consultant filing support costs. 2. Do not approve this Task Order. Retain the revenues allowed for payment of the filed consultant support costs and do not pay RJC for work performed. RECOMMENDA TION DME recommends approval of Task Order 05-F PRIOR ACTIONIREVIEW (Council, Boards, Commissions) The Public Utilities Board recommends approval by a vote of 5-0. FISCAL INFORMATION Total cost of$18,766 EXHIBITS 1. Ordinance 2. Agreement 3. PUB Minutes R tu 11 b Ott d . ----------:;---- --/%'- ,"----/0[-/-; .,----- -) ~c-::::il ?;[:7/i--1ill/{'<:""-/fd.(y/ :r-::::...?:- ~~~-:'illj~ d~<V '~ t3 1./ -r.!S;:r{.~ --'::/------1-:::.....---.5'--- Sharon Mays Director of Electric Utilities ORDINANCE NO. 2005- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH R. J. COVINGTON CONSULTING, LLC FOR CONSULTING SERVICES RELATING TO TASK ORDER NO. 05-F; PROVIDING FOR SERVICES RELATED TO FINAL COMPLETION OF THE TRANSMISSION COST OF SERVICE CASE BEFORE THE PUBLIC UTILITIES COMMISSION OF TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it in the public interest to continue to engage the firm of R. J. Covington Consulting, LLC of Austin, Texas ("Covington"), to provide further professional consulting services to the City relating to Task Order No. 05-F; which includes, without limitation, services related to the final completion of the transmission cost of service case, before the Public Utilities Commission of Texas, being docketed as Docket Number 30358, and entitled Application of Denton Municipal Electric to Change Rates for Wholesale Transmission Service. WHEREAS, the City staff has reported to the City Council that there is a substantial need for the above-described specialized professional services, and that limited City staff cannot adequately perform the services and tasks 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 on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and WHEREAS, Covington has represented DME continuously and ably over the last nine (9) years, and has proven to be a valuable, reliable, affordable, and competent professional resource that has expertise in, and is well-acquainted with the electric operations as well as the financial and regulatory framework of Denton Municipal Electric ("DME"), as well as its relations with the PUC and ERCOT. Covington and his staff are familiar with the characteristics, operations, and present rate structure ofDME: and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the professional services, as set forth in the Professional Services Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the City Manager is hereby authorized to execute a Professional Services Agreement with R. J. Covington Consulting, LLC of Austin, Texas, for professional consulting services relating to Task Order No. 05-F, to the City and to Denton Municipal 1 EXHIBIT 1 Electric, in an amount of not to exceed $18,766; in substantially the form of the Professional Services Agreement attached hereto and incorporated herewith by reference as Exhibit "A." SECTION 2: That the award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of Covington and the ability of Covington to perform the professional services needed by the City for a fair and reasonable pnce. SECTION 3: That the expenditure of funds as provided in the attached Professional Services Agreement is hereby authorized. SECTION 4: 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: ED SNYDER, INTERIM CITY ATTORNEY 1/ffJiMfj-D By: 2 STATE OF TEXAS ~ ~ ~ COUNTY OF DENTON PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES PERTAINING TO DENTON MUNICIPAL ELECTRIC THIS AGREEMENT is made and entered into on the day of ,2005, by and between the City of Denton, Texas, a Municipal Corporation, with its principal office at 215 East McKinney Street, Denton, Texas 76201 ("CITY"); and R. J. COVINGTON CONSULTING, LLC, a Texas Limited Liability Corporation, with its principal office at 11044 Research Boulevard, Suite A-325, Austin, Texas 78759, hereafter "COVINGTON"; acting herein by and through their duly authorized representatives. WITNESSETH, that in consideration of the covenants, promises and agreements herein contained, the CITY and COVINGTON do hereby AGREE as follows: ARTICLE I EMPLOYMENT OF CONSULTANT The CITY hereby contracts with COVINGTON, as an independent contractor, and COVINGTON hereby agrees to perform the services herein in connection with the Scope of Services as stated in the Articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. ARTICT ,E TT SCOPE OF SERVICES A. COVINGTON shall provide to the CITY professional consulting services pertaining to assisting Denton Municipal Electric in its [mal completion of Public Utility Commission of Texas, Docket Number 30358, entitled Application of Denton Municipal Electric to Change Rates for Wholesale Transmission Service, COVINGTON agrees to perform those services and tasks more particularly and specifically described in Task Order No. 05-F attached hereto and incorporated herewith by reference. B. To consult with the City Manager, Assistant City ManagerJUtilities, the Director of Electric Utilities, the Utility Attorney, and any other designated administrative personnel regarding any and all aspects of the services to be performed pursuant to this Agreement. ARTICLE III PERIOD OF SERVICE This Agreement shall become effective on the date this Agreement is approved and upon the issuance ofa notice to proceed by Denton Municipal Electric ("DME"). The termination date of this Agreement shall be upon the earliest to occur of the following events: completion of the work described herein and in the attached Task Order No. 05-F; or upon the depletion and exhaustion of 1 EXHIBIT 2 the $18,766 not to exceed amount provided for herein; or upon fifteen (15) day's written notice to terminate, issued by the Director of Electric Utilities, DME. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement COVINGTON shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule established by the CITY, acting through its Director of Electric Utilities. ARTTrTJ;'. TV COMPENSATION A. COMPENSATION TERMS: "Direct Non-Labor Expense" is defined as that expense for any assignment incurred hereunder by COVINGTON for supplies, long-distance telephone, telecopier, reproduction expense, overnight courier, photocopy expense, transportation, travel, communications, subsistence and lodging away from home and similar incidental expenses reasonably incurred in connection with that assignment B. BILLING AND PAYMENT: 1. For and in consideration of the professional services to be performed by COVINGTON herein, the CITY agrees to pay COVINGTON, a total fee, including reimbursement for direct non-labor expense, not to exceed $18,766 for those services described in Task Order No. OS-F. 2. The fee for the services described in this Agreement to be performed by COVINGTON are to be billed the rates as set forth in Exhibit "A" attached hereto and incorporated herewith by reference. Billing shall be reported in minimum one-quarter (1/4) hour increments. 3. Payments to COVINGTON will be made by the CITY on the basis of detailed monthly statements rendered to the CITY through its Director of Electric Utilities. The fee bills as submitted, shall be allowed and approved by the Director of Electric Utilities. However, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. 4. Nothing contained in this Article shall require the CITY to pay for any work which is unsatisfactory as reasonably determined by the City Manager or the Director of Electric Utilities, or which is not submitted in compliance with the terms of this Agreement. The City shall not be required to make any payments to COVINGTON when COVINGTON is in default under this Agreement. 5. It is specifically understood and agreed that COVINGTON shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the CITY for any charge, expense or reimbursement above the maximum not-to-exceed fee as stated, without first having obtained written authorization from the CITY. 2 C. PAYMENT If the CITY fails to make payments due COVINGTON for services and expenses within forty (40) days after receipt of COVINGTON'S undisputed statement thereof, the amounts due COVINGTON will be increased by the rate of one percent (1 %) per month from the said forty (40th) day, and in addition, COVINGTON may, after giving ten (10) days' written notice to the CITY, suspend services under this Agreement until COVINGTON has been paid in full all amounts due for services, expenses and charges provided. However, nothing herein shall require the CITY to pay the late charge of one percent (1%) set forth herein if the CITY reasonably determines that the work of COVINGTON is unsatisfactory, in accordance with this Article IV, Compensation, and the CITY notifies COVINGTON in writing of any such defect. ARTICLE V OBSERVATION AND REVIEW OF THE WORK COVINGTON will exercise reasonable care and due diligence in discovering and promptly reporting to the CITY any defects or deficiencies in his work or the work of any subconsultants performed hereunder. A RTK] ,E VI OWNERSHIP OF DOCUMENTS All documents, analyses and other data prepared by COVINGTON under this Agreement ("Work Products") are instruments of service and are and shall remain the property of CITY. COVINGTON shall have the right to make and retain copies and use all Work Products; provided, however, the use shall be limited to the intended use for which the services and Work Products are provided under this Agreement. COVINGTON may use and may copyright certain non-sensitive Work Products as property of COVINGTON; provided that prior written approval is obtained from CITY, whose approval shall not be unreasonably withheld, and providing that copywriting will not restrict CITY'S right to retain or make copies of the Work Products for its information, reference and use on the Project or services under the Agreement. The Work Products shall not be changed or used for purposes other than those set forth in this Agreement without the prior written approval of COVINGTON. If CITY releases the Work Products to a third party without COVINGTON'S prior written consent, or changes or uses the Work Products other than as intended hereunder, CITY does so at its sole risk and discretion and COVINGTON shall not be liable for any claims or damages resulting from or connected with the release or any third party's use of the Work Products. ARTICLE vn ~EPENDENTCONTRACTOR COVINGTON shall provide services to the CITY as an independent contractor, not as an employee of the CITY. COVINGTON shall not have or claim any right arising from employee status. 3 ARTICLE VTTT INDEMNITY AGREEMENT COVINGTON shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses and expenses, including but not limited to court costs and reasonable attorney's fees incurred by the CITY, and including without limitation, damages for bodily and personal injury, death and property damage, and damage for professional malpractice resulting from the negligent acts or omissions of COVINGTON or any subconsultants, in performance of this Agreement. COVINGTON'S liability under this Article VIII is expressly limited to the amount of COVINGTON'S insurance coverage as set forth in Article IX. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. A RTICT,E IX INSURANCE During the performance of the Services under this Agreement, COVINGTON shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an !lA_it or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence, and not less than $100,000 in the aggregate. B. Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident; and with property damage limits of not less than $100,000 for each accident. C. Professional Liability Insurance with policy limits of not less than $1,000,000 arumal aggregate. D. COVINGTON shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies to the extent legally possible, and shall contain a provision that such insurance shall not be canceled or modified without thirty- (30) days prior written notice to CITY and COVINGTON. In such event, COVINGTON shall, prior to the effective date of the change or cancellation, deliver substitute policies furnishing the same coverage to the CITY. 4 A R TlCLE X ARBITRA nON AND AL TERNA TE DISPUTE RESOLUTION The parties agree to settle any disputes under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. No arbitration or alternate dispute resolution arising out of or relating to, this Agreement involving one party's disagreement may include the other party to the disagreement without the other's approval. ARTTCI,F Xl LIMITATION OF LIABILITY To the extent permitted by law, the total liability of COVINGTON to CITY for any and all claims arising out of this Agreement, whether caused by negligence, errors, omissions, strict liability, breach of contract or contribution, or indemnity claims based on third-party claims, shall not exceed one million dollars ($1,000,000). ARTICLE XU CONSEQUENTIAL DAMAGES In no event and under no circumstances shall COVINGTON be liable to CITY for any interest, loss of anticipated revenues, earnings, profits, or increased expense of operations, or for any consequential, indirect or special damages. ARTICLE XTTT PROFESSIONAL STANDARDS COVINGTON will perform services under this Agreement with the degree of skill and diligence normally practiced by professional engineers or consultants performing the same degree of similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services furnished under this Agreement and all implied warranties are disclaimed. ARTlCI,E XIV TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by giving thirty- (30) days advance written notice of termination to the other party. B. This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be effected unless the other party is given: (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifYing the nonperformance, and not less than ten (10) business days in which to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C. If this Agreement is terminated prior to completion of the services to be provided hereunder, COVINGTON shall immediately cease all services and shall render a final bill for services to 5 the CITY within thirty- (30) days after the date of termination. The CITY shall pay COVINGTON for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination in accordance with Article IV, Compensation. Should the CITY subsequently contract with a new consultant for the continuation of services on the Project, COVINGTON shall cooperate in providing information. COVINGTON shall turn over all documents prepared or furnished by COVINGTON pursuant to this Agreement to the CITY on or before the date of termination, but may maintain copies of such documents for its use. ARTICLE XV RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the CITY shall not constitute nor be deemed a release of the responsibility and liability of COVINGTON, or any sub-consultants of COVINGTON, for the accuracy and competency of their designs or other work product. A RTTCLE XVT NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail at the address shown below, certified mail, return receipt requested unless otherwise specified herein. Mailed notices shall be sent to the parties at the following addresses: To COVINGTON: To CITY: R.I. Covington Consulting, LLC Attn: Richard 1. Covington 11044 Research Blvd., Suite A-325 Austin, Texas 78759 City of Denton, Texas Attn: Michael A. Conduff, City Manager 215 East McKinney Street Denton, Texas 76201 and to City of Denton, Texas Attn: Sharon Mays Director of Electric Utilities 901-A Texas Street Denton, Texas 76205 All notices shall be deemed effective upon receipt by the party to whom such notice is given or within three days after the date of mailing. ARTTCT,E XVII ENTIRE AGREEMENT 6 This Agreement consisting of nine (9) pages, and two (2) additional pages consisting of Task Order No. 05-F, constitutes the complete and final expression of the agreement ofthe parties and is intended as a complete and exclusive statement of the terms of their agreements and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. ARTICLE XVTTT. SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE XIX COMPLIANCE WITH LAWS COVINGTON shall comply with all federal, state, local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTTCT ,E XX DISCRIMINATION PROHIBITED In performing the services required hereunder, COVINGTON shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XXI PERSONNEL A. COVINGTON represents that he has secured, or will secure at his own expense any additional personnel required to perform all the services required under this Agreement. Such persolll1el shall be subconsultants of COVINGTON, and shall not be employees or officers of, nor have any contractual relations with the CITY. COVINGTON shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by COVINGTON or under his supervision. All personnel engaged in work shall be qualified and shall be authorized and permitted under state and local laws to perform such services. ARTI(],E xxn ASSIGNABILITY COVINGTON shall not assign any interest in this Agreement and shall not transfer any 7 interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the CITY. ARTICLE xxnr MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith 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, and unless such waiver or modification is in writing, duly executed; and, the parties further agree that the provisions of this section will not be waived unless as herein set forth. A RTICLE XXIV MISCELLANEOUS A. COVINGTON agrees that CITY shall, until the expiration of three (3) years after the final payment under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of COVINGTON involving transactions relating to this Agreement. COVINGTON agrees that the CITY shall have access during normal working hours to all necessary COVINGTON facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. The CITY shall give COVINGTON reasonable advance notice of any intended audits. B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be governed by, and construed in accordance with the laws of the State of Texas. C. COVINGTON shall commence, carry on, and complete the work required by this engagement with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the work, COVINGTON 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. D. The CITY shall assist COVINGTON by placing at COVINGTON's disposal all available information pertinent to the work required by this engagement, including previous reports, any other data relative to the project and arranging for the access to, and make all provisions for COVINGTON to enter in or upon, public and private property as required for COVINGTON to perform services under this Agreement. E. The captions of this Agreement are for inforn1ational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed in four (4) original counterparts, by its duly authorized City Manager; and R.J. Covington Consulting, LLC has executed this Agreement by its duly authorized officer on this the ~ day of ,2005. 8 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, INTERIM CITY ATTORNEY By: ; tQQ "CITY" CITY OF DENTON, TEXAS A Municipal Corporation By: Michael A. CondutT, City Manager "COVINGTON" RJ. COVINGTON CONSULTING, LLC A Texas Limited Liability Corporation By: S:\OUT Documents\Contracts\05\RJ Covington Consulting LLC-PSA- TO 05-F Completion ofTCOS-DME.doc 9 ATTACHMENT PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND R.J. COVINGTON CONSULTING, LLC TASK ORDER NO. 05-F Transmission Cost of Service - Final This Attachment is a Task Order contemplated by and appended to the Professional Services Agreement entered into by and between the City of Denton, Texas ("City") and RJ. Covington Consulting, LLC, ("RJC") as approved on this day by the Denton City CounciL Discussion The work provided for in this Task Order is for the completion of the transmission cost of service rate filing ("TCOS") that was filed on behalf of Denton Municipal Electric before the Public Utility Commission of Texas ("PUe"). The TCOS filing requested a transmission rate increase from the City's current TeOS of $995,000 to a requested TCOS of $3,955,195. The final approved TCOS for this proceeding, which includes reimbursement of the rate case expenses, is $4,021,887. These costs will be recovered through the Electric Reliability Council of Texas ("ERCOT") "postage stamp transmission facilities charges." This Task Order includes RJe final billing for services performed and work associated with Docket 30358, Application of Denton Municipal Electric to Change Rates for Wholesale Transmission Service. The following is a detailed list of services to be provided under this Task Order: Scope of Services Tasks - TCOS Hearin2s 1. RJC will assist attorneys in preparing cross-examination of pue staff and other parties. 2. The hearings will be attended by RJC to present direct testimony and assist DME's attorneys on technical issues that arise. 3. RJC will assist attorneys in preparing briefs. 4. Staffs briefs will be reviewed by RJe. 5. Reply Briefs will be prepared by DME's attorneys, and reviewed by RJC and filed. Task Order No. 05-F Transmission Cost of Service - Final 6. The Administrative Law Judge's Preliminary Order will be reviewed by RJC in order to assist DME's attorneys in filing Exceptions. 7. The Final Order and Staffs exceptions will be reviewed and RJC will work with DME's attorneys in preparation of the Reply to Exceptions. 8. The TCOS numbers in the Final Order will be evaluated for accuracy and for compliance with the Public Utilities Commission's final decisions. 9. RJC will attend the PUC Open Meeting for the final decision, and be available to respond to the Commissioners' questions, if needed. Budget The not-to-exceed amount of the professional fee, for the above scope of services for labor and out-of-pocket expenses is not to exceed $18,766. RJC will bill this Task Order monthly, with supporting documentation of activities performed. The work performed will be under the supervision of the Director of Electric Utilities, and may be modified at any time, by a written document, executed by both DME and RIe. This is the final Task Order for the TCOS rate filing case before the PUe. EXECUTED in four (4) original counterparts by a duly authorized officer of RJC and by a duly authorized official of the City of Denton, Texas on this the day of ,2005. AUTHORIZED BY: ACCEPTED BY: CITY OF DENTON, TEXAS A Texas Municipal Corporation R. J. COVINGTON CONSULTING, LLC A Texas Limited Liability Corporation By: Michael A. ConduIT City Manager By' ~j~ President Dated: Dated: 6ftt7/~.J , -- ATTEST: APPROVED AS TO LEGAL FORM: Dated: EDWIN M. SNYDER INTERIM CITY ATTORNEY By IV~ ~ Dated: 1ft (oS I . JENNIFER WALTERS CITY SECRETARY By: S:\Our Documents\Contnlcts\05\RJC TO 05-F Completion ofTCOS Case-DME,doc 20f2 1 2 3 4 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR JULY 11,2005 9:00 A. M. DRAFT 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 11,2005 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell, Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: John Baines George Hopkins CONSENT AGENDA: Approval of the Consent Agenda authorizes the Assistant City Manager for Utilities or his designee, to implement each item in accordance with the staff recommendations. The Public Utilities Board has received background information, staff s recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids or purchase orders or other matters to be brought before the Public Utilities Board to be considered and approved for payment under Consent Agenda Items 1 through 7. Detailed information is attached to each Consent Agenda item. This listing is provided on the Consent Agenda to allow Public Utilities Board Members to discuss or withdraw an item prior to approval of the Consent Agenda. If the item is pulled from consideration for separate discussion, prior to its consideration, such item will be considered as the first item(s) taken up under the "Items For Individual Consideration" section of the agenda, set forth below. The remaining Consent Agenda Items will be approved with one motion, a second, and by a majority vote of the Public Utilities Board Members who are present. 1) Consider approval of Task Order 05-F with R.I. Covington Consulting, LLC for the provision of testimony and support during a formal Public Utility Commission of Texas (PUCT) hearing regarding the Denton Municipal Electric (DME) Transmission Cost of Service (TCOS) filing in an amount not to exceed $18,766. 2) Consider approval of Bid 3347 for Purchase of Electrical Secondary Connection Pedestals from Priester Supply, in the annual estimated amount of $30,000. Page 1 of 2 EXHIBIT 3 1 2 3) Consider approval of Bid 3348, for the Purchase of Polymer Concrete Transformer Pads, 3 from the lowest responsible bidder for each item in the annual estimated amount of $26,000. 4 5 4) Consider approval of Bid 3323 for the purchase of galvanized steel structures to construct an 6 addition to the existing Hickory Substation and awarded to the lowest responsible bidder in 7 the estimated amount of$66,616. 8 9 5) Consider approval of Bid No. 3343 for a 10,000 Gallon ConVault Above Ground Fuel 10 Storage Tank, from Holloway Welding and Piping Company in the amount of$71,152. 11 12 6) Consider approval for the purchase and installation of Caterpillar's Computer Aided 13 Earthmoving System (CAES), to Holt Caterpillar of Fort Worth, Texas, in the amount of 14 $74,620. 15 16 7) Consider recommending approval of the purchase of a certain 1.46 acre tract of realty, from 17 Aaron Baltazar, Ltd. located in the T. Toby Abstract, No. 1288, City of Denton, Denton 18 County, Texas, and being shown as Lot B, Block C, of La Hacienda Heights, Phase I Final 19 Plat. 20 21 Board Member Bill Cheek moved to approve Consent Agenda Items #1-7 with a second 22 from Board Member Phil Gallivan. The motion was approved by a vote of 5-0. Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Utility Administration Howard Martin, 349-8232" ACM: SUBJECT Consider adoption of 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 Pat Powell 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 Public Utilities Board recommends approval by a vote of (5-0.) BACKGROUND Mr. Powell owns a property on 1170 North Mayhill Road (Exhibit 2) that has been served in years past by a private water well located on an adjacent property. This property was disconnected from the private well a few years ago and Mr. Powell was anticipating that development activity would extend the city's water system closer to his property to make connect to the system economically feasible. The Providence Square development is located along both sides of Audra Lane between Loop 288 and Mayhill Road. The approved preliminary plat for the development called for waterline extension to be built along the frontages of Loop 288, Audra Lane and Mayhill Road. The project has received approval for the construction and rerouting of Audra Lane along with the installation of a 12-inch waterline. The first phase of the development has also been approved and final platted and includes a single-family development that only fronts along Audra Lane. The schedule for completing the portion of the development that fronts along Mayhill Road is unknown at this time. Mr. Powell requested staff to investigate the costs to extend water to service his property. The proposed water line extension required includes 460 ft of offsite waterline and 390 ft of frontage waterline for a total of 850 ft as shown on Exhibit 3. Staff proposed to use City forces to install the line due to the relatively short distance involved to help the customer expedite the normal administrative procedures required to extend the City's water distribution system. Based upon a preliminary cost estimate provided by staff, Mr. Powell decided to move forward with the project and requested a formal cost proposal (Exhibit 4). Staff has received payment for the extension and is requesting approval of the attached Pro Rata Agreement (Exhibit 5). Due to the background circumstances involved with this project, staff is recommending that both the offsite and onsite portions of the waterline be subject to pro rata reimbursement instead of only the offsite portion, which is standard procedure. OPTIONS 1. Approve the Pro Rata Agreement as recommended by staff 2. Revise the Pro Rata Agreement to only reflect the off site portion of the water line. 1 RECOMMENDA TIONS Staff recommends approval of the Pro Rata Agreement as submitted that includes the entire waterline project. Since the waterline along Mayhill Road was a part of the approved preliminary plat for the Providence Square development and the waterline is currently being extended by the owner of a single family home rental property, this approach appears to provide the most equitable cost distribution for both parties. ESTIMA TED SCHEDULE OF PROJECT The City expects construction to begin in late July or early August with completion within 30 days. PRIOR ACTIONIREVIEW (COUNCIL, BOARDS, COMMISSIONS.) The Public Utilities Board recommended approval at their July 11, 2005 meeting with a vote of 5-0. FISCAL INFORMATION The City has received payment from Mr. Powell to cover the cost of an 8-inch waterline ($ 38,235) and an impact fee for the single-family home ($ 3,155). The City's oversize participation cost to increase the line size to a 12-inch is $ 6,440. EXHIBITS 1. Ordinance 2. Property Location Map 3. Proposed Water Line Extension 4. June 9, 2005 Proposal Letter 5. Pro Rata Agreement 6. PUB Minutes Respectfully submitted: ~~. . .. -- , . . . - - . ~: . - Jim Coulter Director of Water Utilities Prepared by: Tim Fisher, P.E Assistant Director of Water Utilities 2 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 PAT POWELL 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. WHEREAS, the City of Denton, Texas requires that the development owned by Pat Powell ("Owner"), commonly referred to as that real property commonly known as 1170 North Mayhill Road, Denton, Denton County, Texas (as more particularly depicted in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction; and said 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 Denton, Texas may lawfully reimburse the Owner for the costs of the eight-inch water main installation by the Owner based upon pro-rata charges paid to the City of Denton, Texas by persons connecting to the water main pursuant to the Denton Development Code, Subchapter 35.21.10.1 and .2; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is authorized to execute a Water Main Pro-Rata Reimbursement Agreement Between the City of Denton, Texas and Pat Powell (the "Agreement") to provide for the pro-rata reimbursement for the design, construction, and installation of a total of 850 linear feet of waterline, being an 8-inch diameter water main, 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 Owner, Pat Powell entering into a Development Contract with the City of Denton, Texas in accordance with the Denton Development Code, Subchapter 35.16.20.2 and 35.16.20.4. SECTION 2. That the City Manager is hereby authorized to make such expenditures and transfers of funds under such conditions as are set forth in the attached Agreement. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2005. EULINE BROCK, MAYOR 1 EXHIBIT 1 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, INTERIM CITY ATTORNEY ~ffD By: S :IOur DocumentslOrdinanceslO 51 Water Main- Pro- Rata Reimb-Ordinance- Powell- 200 5 .doc 2 Water Ma n Pro-rata Exhibit 2 1170 N. Mayhill Water Main Pro-rata Exhibit 3 12" Water Lines . y- , . I I WA TER UTILITIES 901-A Texas Street Denton, TX 76209 (940) 349-8452 Fax (940) 349-7334 June 9, 2005 Mr. Pat Powell 1108 Pennsylvania Denton, TX 76205 Re: Water Line Extension on Mayhill Road Dear Mr. Powell: In response to your request, the City of Denton Water Utilities Department offers the following proposal to provide a water line extension and a water meter to serve your property on Mayhill Road (1170 N. Mayhill). Descrivtion Ouantitv Amount 8 inch water main on Mayhill with %" water meter and service Lump Sum $ 38,235 Water impact fee One Single Family Equivalent $ 3,155 Total Cost $ 41,390 This proposal would be a turnkey project where the City of Denton Water Distribution Division would cover the costs of engineering design and all costs associated with the water line construction, including a service line to the meter to be placed within the Mayhill Road right of way. You will be responsible for hiring a plumber to connect the plumbing for your structure to this meter. The city will require that a customer service inspection be made as required by the TCEQ prior to connect to the city's public water system. A key element of this inspection will be to verify that there is on interconnection with the well system that you have been connected to in the past. As we have discussed, you may also want to request a pro rata agreement with the city to enable you to possibly recover some of these costs if future water service connections are made for other properties that have frontage along this water line. Enclosed for your consideration is a sample copy of this type of agreement. I can help you work out the detail on how to get this agreement completed and processed through the city. We anticipate that the construction could begin as early as August 30 of 2005, pending receipt of funds by July 1,2005. We would be completed with construction and could provide water service within 30 days of construction mobilization. EXHIBIT 4 Please make the check payable to the City of Denton Water Utilities Department, and send to this address to the attention of Tim Fisher, Assistant Director of Water Utilities. If you have any questions or need further assistance, please call me at 940-349-7190. Sincerely, Tim Fisher, P.E. Assistant Director of Water Utilities City of Denton Attachment: Waterline prorate agreement Cc: Frank Payne Kelvin Pryor THE STATE OF TEXAS S COUNTY OF DENTON S WATER MAIN PRO-RATA REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DENTON. TEXAS AND PAT POWELL WHEREAS, Pat Powell ("Property Owner"), whose service address is 1170 North Mayhill Road, City of Denton, Denton County, Texas wishes to develop and improve certain real property commonly known as 1170 North Mayhill Road (as shown in Exhibit I, attached hereto and incorporated herein by reference) located in the City of Denton, Texas or its extraterritorial jurisdiction, and desires 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; and NOW, THEREFORE, in consideration of their mutual promises, Property Owner and City agree as follows: 1. Property Owner, who is the record owner of the subject real property, desires to connect the service address known as 1170 North Mayhill Road, City of Denton, Denton County, Texas with the City's existing water main; to do so would involve the construction of approximately 850 feet of waterline ("Facilities"), located as shown on Exhibit II, attached hereto and incorporated herein by reference. This water main shall be subject to pro-rata reimbursement in accordance with this Agreement. 2. Prior to beginning construction of Facilities, Property Owner shall submit payment to the City in the amount of $38,235, thereby funding the City's cost to design, install and construct 850 feet of eight-inch waterline 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 waterline, 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: 1 EXHIBIT 5 $38,235 = Property Owner cost for 850 linear feet of Facilities Pro-Rata Unit Cost Amount: $44.98 per linear foot for 850 linear feet of Facilities 3. The City has established the cost for the project, which has been agreed upon by the Property Owner, in the amount of $38,235. This amount is based upon the cost of installing an eight-inch waterline. The City will collect pro-rata for all connections of properties abutting and adjacent to the waterline portions regarding the water line improvement described in this Agreement. Pro-rata charges shall be $44.98 per linear foot. Pro-rata reimbursements to the Property Owner shall be in the amount of $44.98 per linear foot regarding pro-rata charges received by the City, subject to the limitation contained in Paragraph 5 hereinbelow. 4. After title to the Facilities 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 ofthe receipt of pro-rata charges, the City shall transfer the applicable amount collected to Property Owner, in accordance with the provisions of Paragraphs 3 and 5 of this Agreement. 5. The City shall transfer to Property Owner pro-rata charges collected for a period oftime 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 $38,235. 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 absolutely no funds pursuant to this Agreement. 6. 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 8-inch waterline that Property Owner is required to install. If the City elects to oversize the 8-inch waterline, then any additional cost and expense related to the oversizing will be borne solely by the City. 7. 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, utility revenues, or any other revenues that it may receive, except solely from those pro-rata funds received from any persons connecting to such Facilities in the time period specified in Paragraph 5 above. 8. 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 2 Agreement are based, are found to be unlawful or invalid, the City may then cease to charge or collect the pro-rata charges for connection to the Facilities, and shall have no further obligations hereunder. 9. 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 below and to the Assistant City Manager of Utilities for the City at the address given below: Pat Powell, 1108 Pennsylvania Drive., Denton, Texas 76205. 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 $38,235, whichever event occurs first; provided, however, in the event that Property Owner fails to complete substantial construction of the Facilities within one year from the date of execution of this Agreement, this Agreement shall terminate. WITNESS OUR HANDS this the day of ,2005. "CITY" CITY OF DENTON, TEXAS By: MICHAEL A. CONDUFF, City Manager 3 1-" I i.. ATTESTED BY: JENNIFER W ALTERS, City Secretary By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, Interim City Attorney .,. ?\ - r\ tt ," I ' '! ,. , !J W.... n / LJJ.!' / J '. } 1/ . . It [~t\'L-V l~. .-. f\ ~ r I I \ J By: "PROPERTY OWNER" PAT POWELL ~ S:\Our Documents\Contracts\05\Water Main-Pro Rata-Powell-2005.doc 4 1 2 3 4 CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR JULY 11,2005 9:00 A. M. DRAFT 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 11,2005 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell, Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: John Baines George Hopkins ITEMS FOR INDIVIDUAL CONSIDERATION: 9) Consider approval of a pro rata agreement with Pat Powell for a waterline extension along Mayhill Road to serve 1170 North Mayhill Road in the amount of $38,235. Tim Fisher, Assistant Director for the Water Department presented this item. Fisher explained that Mr. Powell owns property along Mayhill Road that in the past has been serviced by a private well. Mr. Powell was anticipating development activity that would extend the city's water system closer to his property and make connection to the City's system economically feasible. Providence Square development has received preliminary plat approval that calls for a waterline extension to be built along Loop 288, Audra Lane and Mayhill Road, but a completion schedule is unknown at this time. Powell requested staff to investigate the cost to extend water service to his property. Staff developed a prorata agreement and has received payment from Mr. Powell to cover the cost of an 8-inch waterline in the amount of $38,235, with impact fees for a single-family home of $3,155. The City will also participate in an oversize agreement to increase the line size to 12 inches in the amount of $6,440.00. Board Member Bob Bland moved to approve a prorata agreement between the City of Denton and Pat Powell for a waterline extension along Mayhill Road to service 1170 Mayhill with a second from Board Member Dick Smith. The motion was approved by a vote of 5-0. Page 1 of 1 EXHIBIT 6 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 .. SUBJECT Consider an Ordinance approving a Right-Of-Way Use and Encroachment Agreement between the City of Denton and the University of North Texas to allow boring under existing City public utility easements and public right-of-way that will accommodate the installation of Electric Facilities between University of North Texas Properties located on the east and west sides of Bonnie Brae Street; and providing an effective date. BACKGROUND The University of North Texas has requested permission to bore under Bonnie Brae street right- of-way and a City public utility easement for the installation of underground electric utility lines and appurtenances between University of North Texas property on the east and west sides of Bonnie Brae to provide additional electrical services the Eagle Point development from a utility corridor located just east of Bonnie Brae. The plans and specifications for the proposed electric facilities will require approval of the Development Review Committee, and City Construction Inspectors will monitor the Installations. OPTIONS 1. Approve the Ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDA TION Staff endorses the approval of the ordinance. PRIOR ACTIONIREVIEW (Council, Boards, Commissions) None FISCAL INFORMATION Not Applicable EXHIBITS 1. Location Map 2. Ordinance 3. ROW Use Agreement 4. Request letter from UN.T. Prepared by: ..... '.If. . '.'i. . ~j.-- .J~ Pamela G. England Real Estate & Capital Support Division Respectfully submitted: ?--~ ~" ' . . -. -~- . . Jimmy D. Coulter Director, W ater/W aste Water t' , I '.. . , .41 . , ' , , EXHIBIT 1 S:\OUf Documents\Ordinances\05\UNT ROW Use and Encroachment Ordinance.doc ORDINANCE NO. AN ORDINANCE APPROVING A RIGHT-OF-WAY USE AND ENCROCHMENT AGREEMENT BETWEEN THE CITY OF DENTON AND THE UNIVERSITY OF NORTH TEXAS TO ALLOW BORING UNDER EXISTING CITY PUBLIC UTILITY EASEMENTS AND PUBLIC RIGHT-OF-WAY THAT WILL ACCOMMODATE THE INSTALLATION OF ELECTRIC FACILITIES BETWEEN UNT PROPERTIES LOCATED ON THE EAST AND WEST SIDES OF BONNIE BRAE STREET; AND DECLARING AN EFFECTIVE DATE THEREOF. WHEREAS, the City of Denton has received a request from UNT for the installation of electric facilities under existing City Public Utility Easements and Public Right of Way pursuant to a Right-of-Way Use and Encroachment Agreement, a copy of which is attached to this ordinance (the "Agreement"); and WHEREAS, the Development Review Committee of the City of Denton, Texas reviewed the requested construction project and recommended approval; and WHEREAS, the Council of the City of Denton, Texas has found and determined that the Agreement is in the public interest; and 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 Agreement is hereby approved and the City Manager or his designee is hereby authorized to execute the Agreement on behalf of the City of Denton. SECTION 3. 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: Page I EXHIBIT 2 S;\Our Documents\Ordinances\05\UNT ROW Use and Encroachment Ordinance.doc APPROVED AS TO LEGAL FORM: EDWINM. SNYDER INT CITY ATTORNEY BY: Page 2 RIGHT-OF-WAY USE AND ENCROACHMENT AGREEMENT THIS AGREEMENT is entered into effective as of the date set forth below by and bet\veen the City of Denton, Texas, a home rule municipal corporation (the "City") and the University of North Texas, Texas State University ("UNT"). WHEREAS, UNT, has requested permission to bore under Bonnie Brae street right-of-way and a City public utility easement (the "City Right-of-Way') for the installation of underground electric utility lines and appurtenances (the "Electric Facilities") between UNT property on the east and west sides of Bonnie Brae with such boring being at the bore location shown on the drawing attached hereto and made a part hereofbyreference as Exhibit "A" (the "Encroachment Area"); and WHEREAS, The City of Denton, Texas ("City") hereby grants permission for UNTto locate, maintain and repair the Electric Facilities within the Encroachment Area, subject to the following terms and conditions: 1. The Electric Facilities shall be constructed in such a manner as not to interfere with the City's use of the City Right-of-Way and shall be limited to and constructed only in accordance with the plans, and specifications that are approved in advance in writing by the City ("Plans and Specifications"). When referring to the Electric Facilities within this agreement such term shall mean the Electric Facilities constructed in accordance with the Plans and Specifications. The construction method shall be by boring underneath the street surface and electric easement at a minimum depth approved by the City, which depth will be shown on the Plans and Specifications. The City reserves the right to limit and/or to require specific construction methods within the Encroachment Area. These limitations or construction methods shall be included in the construction plans and specifications for any work performed within the Encroachment Area. In addition, UNT shall provide adequate inspection and coordination with the City to insure the contractor adheres to these' items during construction. 2. The Electric Facilities are subordinate to the City's use of the City Right-of-Way, including without limitation, utilities and street improvements located now or in the future within the Encroachment Area. In the event the City repairs, expands, or adds to its facilities within the Encroachment Area, and in the City's sole opinion it is necessary that the Electric Facilities be modified, removed or relocated, in whole or in part, to accommodate such repairs, expansion or addition, UNT shall, at its sole cost, modify, remove orrelocate the Electric Facilities, as directed by the City, no later than 120 days after City gives UNT written notice. 3. To the extent permitted by law, UNT shall defend, indemnify and hold harmless the City, its employees and agents from and against any and all claims, expenses, (including attorney fees), damages, losses and judgments arising out of orincident to the presence, construction, operation and maintenance of the Electric Facilities. fu addition, UNT shall require that its contractor provide and maintain throughout the installation of the Electric Utilities, general liability insurance in an amount equal to at least $500,000 per occurrence, naming the City of Denton, its officers and employees as EXHIBIT 3 additional insureds. Prior to commencing any work within the Encroachment Area UNT shall deliver to the City an insurance certificate evidencing such insurance which certificate will be in a form approved by the City, and shall provide that the insurance may not be cancelled or modified until the City has been given at least 30 days advance written notice of cancellation or modification. Such certificate shall also provide a waiver of subrogation in favor of the City, its officers and employees. 4. UNT and its contractor will prevent construction equipment from damaging existing City facilities or public utilities located within the Encroachment Area and adjacent areas. 5. It is agreed that no trash dumpsters, toxic substances or flammable material will be allowed on or in the Encroachment Area. \ 6. The City will not be responsible for any costs of construction, operation and maintenance of UNT Electric Facilities. It is further agreed that the City shall not be liable for any damage to the Electric Facilities as a result of the City's use of the City Right-of-Way. If any City property is damaged or destroyed by UNT or its agents it may be repaired or replaced by the City at UNT expense and payment is due upon UNT"s receipt of an invoice from the City. 7. Blasting is not permitted on the Encroachment Area or adjacent areas. 8. Because the Electric Facilities will be installed by boring within the Encroachment Area, the surface should not be disturbed. However, should the surface be disturbed UNT will cause the surface to be restored to the condition it was in prior to the installation of the Electric Utilities. Spoil dirt and all trash shall be removed. 9. The Encroachment Area and City Right-of-Way shall be protected from washing and erosion by a method approved by the City. 10. Construction equipment and materials shall not be stored on the Encroachment Area. 11. It is understood and agreed that, in case of default by UNT or its contractors or agents in any of the terms and conditions herein stated and such default continues for a period often (10) days after the City notifies UNT of such default, the City may at its election forthwith terminate this Agreement and upon such termination all ofUNT's rights hereunder shall cease and come to an end. This agreement shall also terminate upon the abandonment ofthe Electric Facilities. 12. This agreement shall be construed under the laws of the State of Texas and is fully performable in Denton County, Texas. Dated to be effective as of the _ day of . 2005 (the "Effective Date''). CITY OF DENTON, TEXAS Page 2 . ( ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO FORM: I~Y""'RR~ T ~f_::Yr.~, CITY ATTORNEY BY:- APPROVED AS FORM: BY: BY: MICHAEL A CONDUFF CITY MANAGER 215 E. McKinney Denton, Texas 76201 UNIVERSITY OF NORTH TEXAS BY: (i/~~~)J Title: ACKNOWLEDGEMENT Page 3 THE STATE OF TEXAS 9 COUNTY OF DENTON 9 This instrument was acknowledged before me on ,2005 by Michael A. Conduff, City Manager of the City of Denton, Texas, on behalf of such municipality. Notary Public in and for the State of Texas My Commission Expires: ACKNOWLEDGEMENT THE STATE OF TEXAS 9 COUNTY OF DENTON 9 This instrument was acknowledged before me on M(}. ~ ;;;. ( ,2005 by ~ the V? -Ca'r 'Fin. J- for the University of North Texas, on behalf of the University of North Texas. 8~. ~\n ~Alo7iY Notary Public in and for the State of Texas My Commission Expires: J~ /30 I () I (......-rJ~'b. NEHA VOlA ..~::~'~.. ..'~ ~ C'4Ii.. II_M N f If : . i otary Public. Stllte of Texas J !..'t..f My Commission Expires ; ~ti~~ December 3D, 2007 Page 4 . . 69.3 5LDG 7.4' ~ 1 04~ 8' ~~~~ Ci a-.~~ ~~~~ :;Ii- ~-'N (\ :!!-- .. (')I\)IJI ~. -"=1 g~.t:.[f c...S:(j)~ (\:EO" ::;,= if 0 __ 1:>.- 1t[~~ ;::~ -1>-(\ 5.." P:tt: C1I Z-' @ ;no -..j s: ~~ WZrv 5tlEEf T1TU:: 43.4 66 8 58.0 . OJ STY /FRAM E/BLDG ~ N 63.4' 26.7'35.8 -l~ ~I . L.42.4! I -<11 ~8 18 I ~ 'l I ; I I I I \ ! \ I II L.J <-> 8 S 00040';51 "E sour BONNIE BRAE A\ @@8 ee ~ ~ ~ g' ~ g'. g'lz --~-<l~---Q- ~--~a--a 8 t:d ~~ .. .. * ~ .. rn ~ ~1:}1\)-5:--U ~ ~ ~ ~ [~Ui ~ - 3 3 "lft - II> _ _ _ _ '" ~ ~ ~ ~~ ~ ~ ~gg(\<TO td n",,:EQ.;:l. II> 0 0 <.t\ " .....:;33g'o ~ o '1"1' 'f'P C:;:Ii - ~,...-, - :l:J--n g' Il. ~ ;i; ~ [01 3 "OJ ~ > n C1I I:>. !:;V 0: .. ~ ... r" ~ )> r --i -0 )> ::::0 ^ f'T1 ::::0 e 'V EAGLE POINT CAMPUS 1 SOUTH BONNIE BRAE BORE LOCATIONS ~ ~~.~~ -;'- . P.O. BOX 311040. DENTON., TIC 76203-1040- g....)69..7000 ' or 1 ~'I~i".l..q l1A'fE. 0.-~1-{)t 5'l" U,>II . J ( I ! '.{/ /'i-' ! i ---- ._,~~~~~ --~1 i , . I )[ 808. D D ......""'" """ ~ .. ... UNIVERSITYof NORTH TEXAS Physical Plant and Facilities Planning MEMORANDUM May 18,2005 TO: Pamela England City of Denton Real Estate and Capital Support FROM: Glen Haubold University of North Texas Associate Director of Facilities Maintenance ~ SUBJECT: Right of Way Use Agreement #2 UNT provides utilities to the Eagle Point development from a utility corridor just east of Bonnie Brae. UNT occupancy of Liberty Christian dictates the ext~nsion of the UNT Utility duct bank from the present location at the entrance driveway at Walt Parker to the south and west buildings of the newly acquired complex. Permission for a branch extension under Bonnie Brae is requested from the City of Denton for the purpose of providing utilities to the southern sections of what previously was the Liberty Christian Academy. The extension will consist of (4) 4" PVC pipes directionally bored under Bonnie Brae. Thank you for your assistance. The leading university of the Dallas-Fort WOrth region 2204 W. Prairie + P.O. Box 311040. Demon, Texas 76203-1040 + (940) 565-2751 Fax (940) 565-4650 + TTY (800) RELAYTX + www.plam.um.edu EXHIBIT 4 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 .. SUBJECT Consider the adoption of an Ordinance approving a Real Estate Contract by and between Aaron Baltazar, Ltd., A Limited Partnership, as seller, and the City of Denton, Texas, as Purchaser, regarding a 1.46 acre tract of land located in the T. Toby Abstract No. 1288, City of Denton, Denton County, Texas, and being shown as Lot B, Block C, of the La Hacienda Heights, Phase I Final Plat, authorizing the expenditure of funds and providing an effective date thereof. BACKGROUND Currently, Denton Municipal Electric (DME) and the Texas Municipal Power Agency (TMP A) share space at the Denton North Interchange Electric Substation property, each owning the property supporting their respective systems. DME and TMPA propose to purchase a tract of land adjacent to the existing electric substation's north and west boundaries. The purpose of the acquisition is to allow expansion of TMP A's area of the interchange. In a cooperative effort with TMP A, DME has agreed to purchase the land and then transfer the property to TMP A. DME is designing and constructing this project as a service to TMPA and DME will be reimbursed for all construction costs by TMPA. There are efficiencies and cost savings by having the City handle the project locally. Since the City of Denton is a part owner ofTMPA, a direct benefit is derived. In addition, the TMPA expansion project will free up capacity in the DME system. In May of 2003, Aaron Baltazar initiated the process with the City to develop a 58.66 acre parcel of land that borders the north and west sides of the existing Denton North Electric Substation. Mr. Baltazar is developing primarily single family residential with a small percentage of Neighborhood Residential Mixed Use (2.43 acres) along his North Locust Street frontage. It was early on in the development plans for his property that City dialogue was initiated with him to explore the possibility of acquiring a portion of his property for electric substation expansion. Mr. Baltazar was favorable to the idea of selling the City some property for expansion and worked cooperatively with City staff to modify his plans to accommodate our request. The complexity of the property purchase and the subsequent reimbursement anticipated by TMP A required a formal appraisal for the subject purchase tract. An appraisal was commissioned and the point estimate for value was $14,700. The initial offer to Mr. Baltazar was for the appraised amount of $14,700, with both parties sharing the closing costs. Mr. Baltazar submitted a counter-proposal in the amount of $32,220. After several exchanges, both parties agreed to propose a Contract with a negotiated purchase price of $26,110, with the purchaser paying all closing costs. 1 OPTIONS 1. Approve the ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDA TION Staff recommends approval of the ordinance. ESTIMATED PROJECT SCHEDULE Closing date for real estate purchase is scheduled for July 30, 2005. PRIOR ACTIONIREVIEW Public Utilities Board approval on July 11,2005 FISCAL INFORMATION TMP A will reimburse Denton for the cost of purchasing the land, together with closing costs, as a component of the overall Project and has internally approved the measure by resolution on November 4, 2004. EXHIBITS 1. Location Map 2. Ordinance 3. Real Estate Contract 4. LaHacienda Heights Final Plat 5. PUB Minutes R?-espeClfullYZ:;- . . -. -~- . . Jimmy D. Coulter Director, W ater/W aste Water P db . Jl~e ~ Wl f( __ ,~5-~'4-g? >i'){~ It ryj ,'i'tlli ~-, ,fi~~^r ~4 if ~. -f iF 1'??7""'" """4- r:: :~&...: ~_.1'J.'"j^-'/ do.,,_ _~_c'.,.Jo "- --'::;~ ....~... ~ ~ :;',:~:;;! 'f.:;:;::"-~~::;:_ Paul Williamson Manager, Real Estate & Capital Support 2 Legend 100 50 0 100 Feet w+u _ Centerline s EXHIBIT 1 S:\Our Documents\Ordinances\05\Aaron Baltazar Ordinance.doc ORDINANCE NO. AN ORDINANCE APPROVING A REAL ESTATE CONTRACT BY AND BETWEEN AARON BALTAZAR, LTD., A LIMITED PARTNERSHIP, AS SELLER, AND THE CITY OF DENTON, TEXAS, AS PURCHASER, REGARDING A 1.46 ACRE TRACT OF LAND LOCATED IN THE T. TOBY ABSTRACT NO. 1288, CITY OF DENTON, DENTON COUNTY, TEXAS, AND BEING SHOWN AS LOT B, BLOCK C, OF THE LA HACIENDA HEIGHTS, PHASE I FINAL PLAT; AUTHORIZING THE EXPENDITURE OF FUNDS; AUTHORIZING THE CONVEYANCE OF THE PROPERTY TO THE TEXAS MUNICIPAL POWER AGENCY; AND PROVIDING AN EFFECTIVE DATE THEREOF. WHEREAS, the City of Denton, Texas is desirous of entering into a Real Estate Contract with Aaron. Baltazar, Ltd., to acquire approximately 1.46 acres of land ("Property") as more particularly described in that certain Real Estate Contract attached hereto and made a part hereof by reference (the "Contract"); and WHEREAS, the Property is being acquired for Denton Municipal Electric ("DME") purposes, a municipally owned and operated electric utility that constitutes the unbundled electric operations of the City of Denton; and WHEREAS, subsequent to the acquisition ofthe Property the City and DME are desirous of conveying the Property to the Texas Municipal Power Agency ("TMP A"), an electric power agency of which the City is a member; and WHEREAS, the conveyance of the Property will serve a valid public purpose as TMP A will utilize the Property to provide electric services to the City; and WHEREAS, the City's Public Utility Board has recommended approval of the Contract and subsequent conveyance to TMP A; and WHEREAS, the conveyance of the Property to TMP A is exempt from the bidding and appraisal requirements of Chapter 272 of the Local Government Code, pursuant to Section 272.001(k) thereof; and WHEREAS, the City Council fmds that the Contract serves valid municipal and public purposes 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 by reference. SECTION 2. The Contract is hereby approved. The City Manager or his designee is hereby authorized to enter into the Contract, to make the expenditures provided for therein, and to carry out the City's rights and duties under the Contract. Page 1 EXHIBIT 2 S:\Our Documents\Ordinances\05\Aaron Baltazar Ordinance.doc SECTION 3. The City Manager or his designee is hereby authorized to convey the Property to TMPA after the City receives title to the Property, upon TMPA's reimbursement to the City of the purchase price plus closing costs under the Contract. SECTION 4. This ordinance also constitutes a resolution of the City Council. SECTION 5. 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: EDWINM. SNYDE, ERIM ITY ATTORNEY BY: Page 2 ,. REAL ESTATE CONTRACT STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT OF SALE is made by Aaron' Baltazar, Ltd., (hereinafter referred to as "Seller") and CITY OF DENTON, TEXAS, a home rule municipality, of Denton, Denton County, Texas, (hereinafter referred to as "Purchaser"), upon the terms and conditions set forth herein. I. PURCHASE AND SALE Seller hereby sells and agrees to convey, and Purchaser hereby purchases and agrees to pay for all that certain tracts, lots or parcels orland described in "EXHIBIT N' and further illustrated in "EXHIBIT B", attached herein, with all rights and appurtenances pertaining to the said property, including any right, title and interest of Seller maud to adjacent streets, alleys or rights- of-way (all of such real property, rights, and appurtenances being hereinafter referred to as the "Propertyll), together with any improvements, fixtures, and personal property situated on and attached to the Property, for the consideration and upon and subject to the terms, provisions, and conditions hereinafter set forth. n. PURCHASE PRICE 1. Amount of Purchase Price. The total purchase price for the Property sluill be the smn of Fourteen Thousand Seven Hundred Dollars and No Cents ($26,110.00) (the "Purchase Price"). 2. Payment of Purchase Price. The full amount of the Purchase Price shall be payable in cash at the closing. ill. PURCHASE~S OBLIGATIONS The obligations of Purchaser hereunder to consunnnate the transactions contemplated hereby are subject to the satisfaction of each of the following conditions any of which may be waived in whole or in part by Pw-chaser at or prior to the closing. EXHIBIT 3 1. Preliminaty Title Report. Within ten (10) business days after the date hereof: Purchaser, at Purchaser's sole cost and expense, sha1I have caused the Title Company (hereinafter defined) to issue a owner's policy conunitment (the "Commitment") accompanied by copies of all recorded documents relating to easements, rights-of-way, etc., affecting the Property. Purchaser shall give Seier written notice on or before the expiration often (10) business days after Purchaser receives the Conunitment that the condition of title as set forth in the Commitment is or is not satisfuctory. In the event Purchaser states the condition of title is not satisfactory, Seller shall, at Seller's option, promptly undertake to eliminate or modify atl unacceptable matters to the reasonable satisfaction ofPurcbaser. In the event Seller is unable to do so within ten (10) business days after receipt of written notice, Purchaser, at its option may elect to.tenninatethis Agreement (in which event this Agreement shall be nul and void), grant Seller additional time to cure, or proceed to closing. Purchaser's failure to give Sener this written notice shall be deemed to be Purchaser's acceptance of theconunitment. 2. Survey. Purchaser, at Purchaser's sole cost and expense, shall obtain a current survey of the Property, prepared by a duly licensed Texas land surveyor acceptable to Purchaser. The survey shall be staked on the ground, and shall show the location of all improvements, highways, streets, roads, railroads, rivers, creeks, or other water courses, fences, easements, and rights-of- way on or adjacent to the Property, if any, and shall contain the surveyor's certification that there are no encroachments on the Property and shall set forth the number of total acres comprising the Property, together with a metes and bounds description thereof. Following delivery of the Survey, the parties agree to amend this Contract to substitute the metes and botmds description of the Property set forth on the Survey for the current description set forth herein if the current description is different from that set forth in the Survey. Purchaser will have ten (10) business days after receipt of the survey to review and approve the survey. In the event the survey is unacceptable, then Purchaser shall within the ten (10)- business day period, give Seller written notice of this fact. SeUer shall, at Seller's option, promptly undertake to eliminate or modifY the unacceptable portions of the survey to the reasonable satisfaction of Purchaser. In the event Seller is unable to do so within ten (to) business days after receipt of written notice, Purchaser, at its option may elect to terminate this Agreement (in which event this Agreement shall be null and void), grant Seller additional time to cure, or proceed to closing. Purchaser's failure to give Sener this written notice shall be deemed to be Purchaser's acceptance of the survey. 3. Seller's Compliance. Seller'shall have perfonned, observed, and complied with all of the covenants, agreements, and conditions required by this Agreement to be perfonned, observed, and complied with by Seller prior to or as of the closing. 2 IV~ REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby represents and warrants to Purchaser as follows, which representations and warranties shall be deemed made by Seller to Purchaser also as of the closing date: 1. Property to be sold in "AS IS" condition; however nothing herein shall be construed to release~. discharge. or hold harmless, any of Seller~ s predecessors in title. V. CWSING The closing shall be held at the office of Sierra Title Company 3960 FM 2181~ Suite 200, Denton, Texas, on or before July 30, 2005, or at such title company, time, date, and place as Seller and Purchaser may mutually agree upon (which date is herein referred to as the "dosing date"). VI. CLOSING REQUIREMENTS 1. Seller's Requirements. At the closing Seller shall: A. Deliver to the City of Denton a duly executed and acknowledged Special Warranty Deed conveying good and marketable title in fee simple to all of the Property, free and clear of any and all liens, leases, encmnbrances, conditions, assessments, and restrictions, except for the following: 1. General real estate taxes for the year of closing and subsequent years not.yet due and payable; 2. Any exceptions approved by Purchaser pursuant to Purchaser's Obligations hereof; and 3. Any exceptions approved by Purchaser in writing. B. Deliver to Purchaser a Texas Owner's Policy of Title Insurance at Seller's sole expense, issued by Reunion Title Company, Dento~ Texas, (the "Title Company"), or such title company as Sener and Purchaser may mutually agree upon, in Purchaser's favor in the fun amount of the purchase price, insuring fee simple title for the City of Denton to the Property subject only to. those title exceptions listed in Closing 3 Requirements hereof, such other exceptions as may be approved in writing by Purchaser, and the standard printed exceptions contained in the usual fonn of Texas Owner's Policy of Title Insurance, provided, however: I. The boundary and survey exceptions shall be deleted if required by Purchaser and if so required, the costs associated with it shall be borne by Purchaser; 2. The exception as to restrictive covenants shall be endorsed "None of Record"; 3. The exception for taxes shall be limited io the year of closing and shall be endorsed "Not Yet Due and Payable"; and 4. The exception as to liens encumbering the Property shall be endorsed "None of Record". C. Deliver to Purchaser possession of the Property on the day of closing. 2. Purchaser's Requirements. Purchaser shall pay the consideration as referenced in the "Purchase Price't section of this contract at Closing in immediately available funds. 3. Closin~ Costs. Seller shall pay all taxes assessed by any tax collection authority through the date of Closing. All other customary and standard costs and expenses of closing in consunnnating the sale and purchase of the Property not specifically allocated herein shall be paid by the Purchaser, except each party will be responsible for its own attorney fees. Vll. REAL ESTATE COMMISSION Seller and Purchaser represent and warrant to each other that neither has retained a broker for this transaction and that there are no broker or real estate fees due as a result of the consunnnation of this contract. VIII. BREACH BY SELLER 4 If Seller fails to fully and timely perform any of its obligations under this Contract or fails to consunnnate the sale of the Property for any reason, except Buyer's default, Buyer may enforce specific performance of this Contract. IX. BREACH BY PURcHAsER In the event Buyer fails to consummate the purchase, of the Property, if Seller is not in default under this Contract, Seller will have the right to enforce specific performance of this Contract. x. MISCELLANEOUS I. Assignment of Agreement. Purchaser may assign this Agreement without the express written consent of Sener. 2. Survival of Covenants. Any of the representations, warranties, covenants, and agreements of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the closing of the .transactions contemplated hereby shall survive the closing and shall not be merged therein. 3. Notice. Any notice required or permitted to be delivered hereunder shall be deemed received when. sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to Sener or Purchaser, as the case may be, at the addreSs set forth beneath the signature ofthe party. 1_ f. /' i j fJ I J 11 t tl' CAtv... hot c... IV b (VJ a. Seller's agent for purposes of notice shall be: Aaron Baltazar Ltd., .525 Part \VMtlI DfWe, D8RtQll, Texas~, (940) 381-5453. ~{--e.- 7 b ,,'z., l? b. PurcHaser's agent for the purposes of notice shall be: Edwin Snyder, Acting. City Attorney, City of Denton, 215 East McKinney Street, Denton, Texas, 76201 (940) 349~8333. 4. Texas Law to Apply. This Agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Denton County, Texas. 5. Parties Bound This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Agreement. 5 6. Legal Constroction. In case anyone or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, said invalidity; illegality, or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been contained herein. 7. Prior Agreements Superseded. This Agreement constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between. the parties respecting the within subject matter. 8. Time of Essence. Time is of the essence in this Agreement. 9. Gender. Words of any gender used in this Agreement shall be held and construed to include any other gender; and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. to. Memorandum of Contract. Upon request of either party, both parties shall promptly execute a memorandum of this Agreement suitable for filing of record. 11. Compliance. In accordance with the requirements of the Texas Real Estate License Act, Purchaser is hereby advised that it should be furnished with or obtains a policy of title insurance or Ptrrchaser should have the abstract covering the Property examined by an attorney of Purchasers own selection. 12. Effective Date. The term "Effective Date" meansthe latter of the dates on which this Contract is signed by either Sener or Purchaser, as indicated by their signature below. If the last party to execute this Contract fails to complete the date of execution below that party' s signature, the date the Title Company acknowledges receipt of a copy of this fully executed contract is the Effective Date. IN WITNESS WHEREOF, Sener and Purchaser have executed this contract as follows: SELLER: Aaron Baltazar, Ltd By By: ..ltaur MeIta, Praideat of MeIta ~_LLC, Gtaenl PJrtIler of Aaron ......r, Ltd 6 PURCHASER: City of Denton, Texas By Approved as to f(tno.: CITY ATfORNEY City of Denton, Texa Title BY: STATE OF TEXAS County of D lln-Wn Before me the undersigned authority on this day personally appeared BaltazarMesta, President of fieSta Management, ILC, General Partner of Aaron Baltazar, Ltd., known to me to be the person whose name is subscnbed hereto and after being duly sworn; acknowledged that he is authorized and has executed the above document for the purposes and consideration therein stated and for the purpose therein stated on behalf of Aaron Baltazar, Ltd Witness my hand and seal of office this the 2005. ~:L day of d onJ2. - . !~1f.'/f!!:.;;~ PAMELA G. ENGLAND ~ . { ..} . ~ Notary Public, Slate of Texas \,,;:..,'~i My Commission Exp. 02.27.2006 '"'';::.ff.,..''''' . ?~~~ L~ Notary Public in and for State of Texas r A md '^- ~. [I'lj ta.ru1 Printed Name of Notary My cormnission expires ~{p 7 STATE OF TEXAS County of Denton Before me the undersigned authority on this day personally appeared , known to me to be the person whose name is subscnDed hereto and after being duly sworn, acknowledged that he executed the above document for the purposes and consideration therein stated and for the purpose therein stated on behalf of and fOT the City of Denton, Texas. Witness my hand and seal of office this the day of Notary Public in and for State of Texas Printed Name of Notary My commission expires TITLE COMP ANY ACCEPTANCE AND ACKNOWLEDGEMENT The Title Company acknowledges receipt of the fully executed Contract on _,2005. TITLE COMPANY: Name: Address: Sierra Title Company 3960 FM 2181 Suite 200 Denton, Texas 76205 Phone: 972-434-3163 By: Printed Name: Title: 8 , 2005. day of CITY OF DENTON, TEXAS PUBLIC UTILITIES BOARD MEETING AGENDA FOR JULY 11,2005 9:00 A. M. DRAFT After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Public Utilities Board convened into an Open Meeting on Monday, July 11,2005 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Bob Bland, Bill Cheek, Phil Gallivan, Charldean Newell, Dick Smith EX OFFICIO MEMBERS Michael Conduff, City Manager Howard Martin, ACM. /Utilities Excused: John Baines George Hopkins CONSENT AGENDA: Approval of the Consent Agenda authorizes the Assistant City Manager for Utilities or his designee, to implement each item in accordance with the staff recommendations. The Public Utilities Board has received background information, staff s recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids or purchase orders or other matters to be brought before the Public Utilities Board to be considered and approved for payment under Consent Agenda Items 1 through 7. Detailed information is attached to each Consent Agenda item. This listing is provided on the Consent Agenda to allow Public Utilities Board Members to discuss or withdraw an item prior to approval of the Consent Agenda. If the item is pulled from consideration for separate discussion, prior to its consideration, such item will be considered as the first item(s) taken up under the "Items For Individual Consideration" section of the agenda, set forth below. The remaining Consent Agenda Items will be approved with one motion, a second, and by a majority vote of the Public Utilities Board Members who are present. 1) Consider approval of Task Order 05-F with R.I. Covington Consulting, LLC for the provision of testimony and support during a formal Public Utility Commission of Texas (PUCT) hearing regarding the Denton Municipal Electric (DME) Transmission Cost of Service (TCOS) filing in an amount not to exceed $18,766. 2) Consider approval of Bid 3347 for Purchase of Electrical Secondary Connection Pedestals Page 1 of 2 EXHIBIT 5 from Priester Supply, in the annual estimated amount of $30,000. 3) Consider approval of Bid 3348, for the Purchase of Polymer Concrete Transformer Pads, from the lowest responsible bidder for each item in the annual estimated amount of $26,000. 4) Consider approval of Bid 3323 for the purchase of galvanized steel structures to construct an addition to the existing Hickory Substation and awarded to the lowest responsible bidder in the estimated amount of $66,616. 5) Consider approval of Bid No. 3343 for a 10,000 Gallon ConVault Above Ground Fuel Storage Tank, from Holloway Welding and Piping Company in the amount of$71,152. 6) Consider approval for the purchase and installation of Caterpillar's Computer Aided Earthmoving System (CAES), to Holt Caterpillar of Fort Worth, Texas, in the amount of $74,620. 7) Consider recommending approval of the purchase of a certain 1.46 acre tract of realty, from Aaron Baltazar, Ltd. located in the T. Toby Abstract, No. 1288, City of Denton, Denton County, Texas, and being shown as Lot B, Block C, of La Hacienda Heights, Phase I Final Plat. Board Member Bill Cheek moved to approve Consent Agenda Items #1-7, with a second from Board Member Phil Gallivan. The motion was approved by a vote of 5-0. Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: City Manager's Office CM: Mike Conduff, City Manager SUBJECT Consider appointments to City's Boards and Commissions. BACKGROUND The attached nominations for boards and commissions were discussed at the July 18, 2005 City Council luncheon. Council will be voting on approval of these nominations at this meeting. The nominations for Animal Shelter Advisory Board have changed slightly. Dr. Wright does not live in the city limits nor does Scott Fletcher. Dr. Randy Wuensche and Jim Bryan have been substituted for those nominations. I have also learned that Daniel Farmer will be moving out of the city limits. Daniel fills the category of an individual who works in the daily operation of an animal shelter. Staff is recommending that Anthony Dodson be considered for Daniel's replacement, as he is a current employee of Animal Services. No other nominations have been received at this time. Council Member Montgomery has a nomination to the Construction Advisory and Appeals Board and Mayor Brock has a nomination to the Traffic Safety Commission. There is an "All" nomination to the Traffic Safety Commission and Zoning Board of Adjustment left to complete. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary BOARD AND COMMISSION NOMINATIONS Board Council Member Nomination Airport Advisory Board Heggins Rick Woolfolk Kamp Bob Eames Mulroy John Kristoferson Animal Shelter Advisory Committee Thomson Dr. Randy Wuensche McNeill Nancy Grantz Brock Jim Bryan Heggine Anthony Dodson Community Development Advisory Heggins Cassandra Berry Cmte. Kamp Kathy Tedrick McNeill Walter Eagleton Mulroy Larry Collister Construction Advisory and Appeals Heggins John Ryan Board Thomson Don Richards Montgomery Mulroy Jim Strange Brock Dana Binnion Historic Landmark Commission Heggins Donna Morris Thomson Ann Hatch McNeill Thomas Wood Montgomery David Wright Mulroy Diana Hatch O-All Steve Ambuehl Human Services Advisory Cmte. Heggins Mae Nell Benford Thomson Kami Fletcher Montgomery Lilia Bynum Mulroy Jodi Vicars-Nance Brock Sonj a Ball O-All Steve Pogue O-All Dena Bruton-Claus Library Board Heggins Turner Kobler Kamp Dorothy Adkins Montgomery Teresa Starrett 1\ K 1 Sherri McDade Parks, Recreation & Beautification Board Heggins Reginald Heard Montgomery Ross Richardson Mulroy Teresa Andress Brock Jo Kuhn Board Council Nomination Member Planning and Zoning Commission Heggins Emma Guzman Ramon Kamp George Watkins McNeill Virgil Strange Brock Joe Roy Public Utilities Board 1\ C , Charldean Newell Traffic Safety Commission Thomson Linda Brown McNeill Murray Ricks Montgomery Harry Phillips Brock O-All Zoning Board of Adjustment Heggins Kevin O'Dell Thomson Mike Boswell McNeill Judy Willis Mulroy Bobby Jones Brock Jim Kirkpatrick O-All Tim Tryan O-All Lee Ann Nutt O-All AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Planning and Development Department CM/DCM/ACM: Jon Fortune, Assistant City Manager SUBJECT A05-0001 (AshGrove Cement) Hold the second of two public hearings to consider annexing approximately 244 acres into the corporate city limits of the City of Denton, Texas. The property is generally located south of Mingo Road and both sides of Collins Road in the eastern section of the City of Denton Extraterritorial Jurisdiction (ETJ). BACKGROUND Applicant: City of Denton Denton, TX An involuntary annexation proceeding is being considered by the City of Denton for the AshGrove Cement distribution site and intervening properties. In accordance with the City's annexation policy plan, approved in June 1993, the City will "assess on a case by case basis" the annexation of areas in the ETJ when significant developments are proposed. The subject area to be annexed contains 22 separate parcels, portions of the Union Pacific Railway, Collins Road and Fishtrap Road. 'Y On June 6, 2005, staff received direction from the City Council to pursue involuntary annexation proceedings. 'Y The City of Denton issued a letter of intent to annex to property owners on June 8th, 2005. 'Y On June 13th, the Real Estate Division of the City of Denton Engineering Department proposed an alternative annexation area that would be in compliance with Texas state law requiring 1,000 ft width to the annexation area. Staff reissued a new intent to annex letter on June 18th, 2005 with the revised map and area. Previously notified property owners who were removed from the initial annexation area were also sent a notice of the revised annexation area. 'Y The entire area proposed for annexation is located in the extra territorial jurisdiction and is not zoned. Approximately seven of the parcels contain existing residential uses. Three of the parcels contain existing commercial uses. 'Y The Comprehensive Plan identifies this area to be within the Neighborhood Centers, Employment Centers and Rural Areas land use designation. 'Y Property owners were notified of the involuntary with an "intent to annex" letter and official public hearing notification. To date, staff has received no letters in opposition from property owners within 200' of the proposed annexation area. (Refer to Attachment 3.) 1 OPTIONS 1. Maintain land area. 2. Delete land area. 3. Amend service plan. 4. Deny. RECOMMENDA TION Staff recommends that the second public hearing for A05-0001 is held as scheduled, and pending comments received; determine if additional information is needed. Staff recommends that the public hearings proceed as scheduled, finding that: The need to manage and coordinate development in an orderly manner is a significant city objective that the City of Denton will pursue. ESTIMATED PROJECT SCHEDULE The annexation process will be completed by October 4,2005. (Refer to Attachment 4.) PRIOR ACTIONIREVIEW Intent to Annex Notification Mailed 18t CC Public Hearing 2nd CC Public Hearing June 18, 2005 July 19,2005 July 26, 2005 FISCAL INFORMATION Development of this property will increase the assessed value of the city, county, and school district. It will require no short-term public improvements that are the responsibility of the city. Proposed annexation area will add additional tax base to the city. City of Denton fire and police services are required upon annexation. ATTACHMENTS 1. Service Analysis 2. Location Map 3. Notification Map 4. Annexation Schedule 5. Draft Annexation Service Plan Prepared by: Stephen A. Cook, AICP Planning Policy Coordinator Respectfully submitted: ~~ Kelly Carpenter, AICP Director of Planning and Development 2 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Police - 1. Estimated average response time for this area based on current department conditions: Priority 11 minutes Non-priority 27 minutes Average 19 minutes 2. Appropriate average response time in the city based on current department conditions: Priority 11 minutes Non-priority 27 minutes Average 19 minutes 3. If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? No 4. Will additional equipment and funding be needed to serve this area? No 5. Will a police substation or other facility be needed to serve this area as a result of annexation and development? No 6. Please comment on the cumulative impact of annexation and development. There will be a negligible impact to general police services due to this annexation. At what population level would another police facility be required? Proposed annexation would not require a new facility. However, the projected additions to the current facility will help to accommodate any population increases resulting from this or similar annexation projects. Is there an accepted facility/equipment to population ratio that can be used for planning purposes? There is no accepted facility or equipment ratio in use. Is there an accepted officer to population ratio that can be used for planning purposes? 1. 79 officers per 1000 citizens. 3 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation En2ineerin2 and Transportation 1. What existing roads, bridges and other transportation facilities will be impacted by this proposed annexation and development in terms of needed improvements or upgrades? Name and location Type of Improvement Approximate Cost Mingo Road Reconstruct to 8" Asphalt and 6" Sub2rade $435,000 Truck traffic from proposed concrete distribution plant, and potential closure of Collins Road at the Union Pacific Railroad will increase heavy truck traffic on Mingo Road and cause increased deterioration of the Mingo Road surface from Collins Road to Cooper Creek Road. The proposed development within this annexation as stated will cause the need for improvements to Mingo Road. 2. Are any of these improvements presently scheduled to be done at state or federal expense? No 3. Please list any drainage improvements that may require local funding, and include estimated cost (if no specific improvements can be determined, please make general comments concerning drainage). All existing drainage structures on Mingo will need to be upgraded to the 100- year storm design. 4. Will additional equipment and facilities be needed as a specific result of this annexation and development? No. 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? N/A Is there an accepted equipment to population ratio that can be used for planning purposes? N/A Is there an accepted employee to population ratio that can be used for planning purposes? N/A Additional Comments: A part of this annexation may result in the removal of the railroad crossing at Collins/Mingo. Cement and other heavy trucks will have to use an alternate route along Mingo. One possible route is Geesling/Fishtrap of which at least Fishtrap should be prohibited to truck traffic. Another route along Mingo is to Cooper Creek, this is the more desirable route. Mingo is substandard in this area for this type of truck traffic. 4 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Fire 1. Fire and Emergency Medical Services can be provided to the area from station(s) located at 3309 McKinney Street and 2110 E. Sherman. # 4 and 2, 2. Estimated response time. 5 minutes 3. Appropriate response time in the City. 5 minutes 4. Is a new fire station approved in the CIP that could serve this area? No. 5. Will a new fire station be requested in upcoming CIP proposals to serve this area? N/A. 6. Total estimated funding for equipment, employees and/or facilities needed to serve this area strictly based on annexation and proposed development. N/A. 7. Please comment on the cumulative impact of annexation and development. At what population level would another fire station facility be required? Undetermined. Is there an accepted facility/equipment to population ratio that can be used for planning purposes? No. Is there an accepted fire fighter to population ratio that can be used for planning purposes? 1.5 per 1,000. 5 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Parks and Recreation 1. What neighborhood park and recreational facilities are currently serving this area or are capable of serving this area if annexed and/or developed (federal, state, or local)? None are within the proposed annexation. The closest Denton Parks properties to the proposed annexation area are Avondale Park 2.5 miles to southwest, Water Works Park and Natatorium Pool complex 2.85 miles to west, and the Greenbelt Trail and Clear Creek Nature Center 1.1 mile to the east and north. The Army Corp of Engineers open space property is bordered on the east of this annexation. Current residents will be able to use existing City of Denton parks, facilities and programs. 2. What projects and/or equipment will be needed to adequately serve this area if annexed and/or development based on the parks and recreation master plan or similar standards? The 2000 Denton Park and Recreation Master Plan does not indicate a need for a Community Park in the general area of the proposed annexation due to existing open space land at Clear Creek Nature Center and the Greenbelt trail. In the event new residential development occurs in the annexation area, a neighborhood park may be necessary. Service Standards: Neighborhood Parks: 2.5 acres per 1,000 population (to be dedicated at time of development) 5 acres minimum size. (by developer) cost per acre. Community Parks: 3.0 acres per 1,000 population 30 acres minimum 3. How much additional funding will be needed for maintenance if additional park facilities are developed to serve this area? None required for Parks at this time. However addition mowing for street right of ways will be needed. Annual Cost for street right of way mowing is $702.00 for the 5,200 new feet of right of way to come into the city. Service Standard: Based on $41.00 per acre per mowing cycle. 4. How many additional personnel would be needed to properly serve this area if annexed and developed? No additional personnel for Parks maintenance required at this time. However additional resources will be required for road right of way mowing along Mingo, Collins and Fishtrap roads. Additional Comments: Denton Parks and Recreation Department will attempt to coordinate placement of park facilities proposed for development by the developer or use funds from the Park Land Dedication requirements to purchase or expand existing parks within the service area of this development. 6 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Library 1. Estimated additional funding needed strictly based on proposed annexation and development. $0.00 2. Please comment on the cumulative impact of annexation and development. The proposed annexation will have no direct impact on library services in the City of Denton. 3. At what population level would another library facility be required? 98,913 4. Is there an accepted circulation to population ratio that can be used for planning purposes? Yes. 7.4 per capita 5. Is there an accepted employee to population ratio that can be used for planning purposes? Yes. One Professional degreed librarian with Master of Library Sciences or Information Studies per 1,000 of population or .11 and one full-time equivalent staff per 1,000 population or .462 6. At what population level would another library facility be required? 98,913 Is there an accepted circulation to population ratio that can be used for planning purposes? Yes. 7.4 per capita Is there an accepted employee to population ratio that can be used for planning purposes? Yes. See #5 above. If annexed, can anticipated servIce demands be met using existing materials, facilities, and personnel ? Yes. If not, how many additional employees and what type of facilities and materials will be needed to provide services? N/A Additional Comments: None. 7 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Solid Waste 1. Is residential solid waste service available to the proposed area for annexation? Yes. 2. Is commercial solid waste service available to the proposed area for annexation? Yes. 3. What is the estimated cost to provide this area with solid waste service? Existing solid waste service rates will apply. What is the typical revenue collected per: Household. Commercial Business 90 Gallon Refuse Cart -$15.00 / month. 35 Gallon Recycling cart - $2.99 / month. Various Container sizes and rates - Contact 940-349-8787. 4. Will additional equipment be needed to serve this area if annexed or developed? No. 5. Will additional employees be needed to serve this area if annexed or developed? No. 6. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? N/A. Is there an accepted equipment to population ratio that can be used for planning purposes? No. Is there an accepted employee to population ratio that can be used for planning purposes? No. Additional Comments: None. 8 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Water/Wastewater 1. What is the nearest City of Denton water line? Size of water line. 12" Location of water line. Fishtrap & Geesling Distance from proposed annexation. 1750 ft to SW corner of annexed area 2. What is the nearest City of Denton sewer line? Size of sewer line. 10" Location of sewer line. Geesling & US 380 Distance from proposed annexation. 3250 ft to SW corner of annexed area 3. According to the City of Denton master plan what type of lines and facilities would be required for this area and when are those lines and facilities proposed for construction. Size Year Location Water lines None Proposed Sewer lines None Proposed 4. Are there any City of Denton lines included in the proposed annexation? No. 5. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? 18,750 Is there an accepted equipment to population ratio that can be used for planning purposes? One crew per 18,750 population Is there an accepted employee to population ratio that can be used for planning purposes? One employee per 5,770 population Additional Comments: The nearest existing sewer line has been given, however, planned development along Lakeview Blvd south of US 380 would put a sewer line closer to the annexation area. Additionally, the sewer line at Geesling and US 380 feeds into a lift station which is currently not sized for significant additional flow. Therefore, the lift station and force main would require expansion to be used by development in the annexed area. Finally, the annexation area drains away from the existing sewers in the area, which means that one or more lift stations will be required to provide sewer service. 9 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Drainage 1. Please list any drainage improvements that may require local funding, and include estimated cost (if no specific improvements can be determined, please make general comments concerning drainage). All drainage improvements required for development within the proposed annexation area will be subject to the requirements of the Development Code, and will be paid for by the developer(s). There are no FEMA designated floodplains identified within the annexation area with one possible exception: Minor portions of the eastern fringe of the proposed annexation area may be within the floodplain of the Elm Fork Trinity River between Lake Lewisville and Lake Ray Roberts. Development will not be allowed within these areas which must be reserved as drainage easements. 2. Will additional equipment and facilities be needed as a specific result of this annexation and development? No. If yes, what type of equipment or facility? 3. Please comment on the cumulative impact of annexation and development. At what population level would additional equipment be required? N/A Is there an accepted equipment to population ratio that can be used for planning purposes? N/A Is there an accepted employee to population ratio that can be used for planning purposes? N/A 10 Attachment 1 SERVICE ANALYSIS A05-0001 - Ash Grove Cement Annexation Electric Utilities DME has certification to serve in certain areas of the County that in no way corresponds to existing or future City limits. These areas of certification were determined by the Public Utility Commission of Texas, the City has no authority in their determination. If a customer falls within an area singly certified to DME, we have an absolute obligation to serve that customer regardless of whether they are inside or outside the City limits. If a customer falls within an area that is multiply certified to DME and other electric distribution service providers, then we can complete for the opportunity to serve that customer if we choose to but, again, this is in no way tied to whether they are inside the City limits. 11 ATTACHMENT 2 Location Map NORTH A05-0001 (AshGrove Cement Annexation) LOCATION MAP Scale: None 13 ATTACHMENT 3 Public Notification Notification Map NORTH Public Notification Date: July 1, 2005 200' Legal Notices* sent via Certified Mail: 18 500' Courtesy Notices* sent via 151 Class Mail: 9 Number of responses to 200' Legal Notice · In Opposition: 0 · In Favor: 0 · Neutral: 0 Scale: None *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 14 Property Owner Responses Property Owner Name and Address In favor IOpposed* Comments *A copy of the original notice can be picked up at City Hall West, 221 N. Elm Denton TX 76201 15 ATTACHMENT 4 ANNEXATION SCHEDULE AshGrove Cement Distribution Center (A05-0001) Tuesday, 7/19/05 City Council conducts first public hearinq. . Public notice must be no less than 10 days and no more than 20 days before public hearing. o Annexation Study prepared and available for public review. o Service Plan prepared and available for public review. Tuesday, 7/26/05 City Council conducts second public hearinq. (Special Called Meeting) . Public notice must be no less than 10 days and no more than 20 days before public hearing. Wednesday, 8/24/05 Planning and Zoning Commission public hearings - make a recommendation to City Council regarding the proposed annexation and the proposed zoninq. Tuesday, 8/16/05 City Council by a four-fifths vote institutes annexation proceedings. First readinq of annexation ordinance. . Action must be more than 20 days after the second public hearing but less than 40 days from the first public hearing. Sunday, 08/21/05 Ordinance published . The ordinance cannot be acted upon until at least 30 days after publication. City Council by a four-fifths vote takes final action. Second readinq and adoption of the annexation ordinance. City Council considers approval of zoning request. . Council action must be more than 30 days after publication of ordinance and less than 90 days after council institutes annexation proceedings (adopts ordinance on 151 reading). Tuesday, 10/04/05 Annexations must be rigidly coordinated in conjunction with the City Council public hearing schedule due to specific timing mandates established by Texas State Law. The Texas Local Government Code requires that City Council institute annexation proceedings (1st Reading of the Ordinance) more than 20 days after the second City Council public hearin2 but less than 40 days from the first City Council public hearin2. - 1 - ATTACHMENT 5 DRAFT CITY OF DENTON ANNEXATION SERVICE PLAN FOR A05-0001 (Ash Grove Cement Distribution Center) I. AREA ANNEXED The annexation area is located in the northeast portion of Denton's Extraterritorial Jurisdiction and contains approximately 244 acres generally located of land generally located south of Mingo Road and both sides of Collins Road. II. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021, 43.065, and 43.065(b)-(0) (Vernon 1999, as amended). Municipal facilities and services to the annexed area described above will be provided or made available on behalf of the City in accordance with the following plan. The City shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the city with similar topography, land use, and population density. III. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection, Code Enforcement, and Animal Control Police service, including patrolling, response to calls, and other routine functions, will be provided to the property upon the effective date of the annexation using existing personnel and equipment. Code enforcement and animal control services will also be provided to the property upon the effective date of the annexation. B. Fire Protection Fire protection (within the limits of existing hydrants) and emergency medical services will be provided to the property upon the effective date of the annexation. The estimated emergency response time in this area is 5 minutes, which is similar to responses for surrounding properties within the city limits. The City of Denton will provide emergency medical services ("EMS"). C. Roads and Streets Roads and streets, which have been properly platted, duly dedicated, and accepted by the City of Denton and/or Denton County shall be maintained by the City of Denton on the effective date of the annexation. Installation and maintenance of street signs, street lighting and traffic control devices will be maintained by the City of Denton on the effective date of the annexation. 1 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc D. Parks and Recreation Facilities Parks and recreational facilities in the area to be annexed will begin upon the effective date of the annexation according to the 2000 Denton Park and Recreation Master Plan which does not indicate a need for a Community Park in the general area of the proposed annexation due to existing open space land at Clear Creek Nature Center and the Greenbelt trail. Residents of the proposed annexation area will be able to use existing City of Denton park and recreation facilities and programs. E. Library Services Library services will be made available on the effective date of the annexation on the same basis and at the same level as similar library facilities are maintained throughout the city. F. Building Inspections and Consumer Health Services Building inspections and consumer health services will be made available on the effective date of the annexation on the same basis and at the same level as similar facilities are maintained throughout the City. Both services are provided on a "cost recovery" basis, and permit fees offset the costs of services delivered. Incomplete construction must obtain building permits from the Building Inspections Department of the City of Denton. G. Planning and Development Services Planning and development services will be made available on the effective date of the annexation. The Planning and Development Department currently services this property by way of administration of Chapter 35 of the Code of Ordinances, concerning subdivision and land development regulations. City Council adopted The Denton Plan, the city's 1999-2020 comprehensive plan, by Ordinance 99-439 on December 7, 1999. The Future Land Use Plan addresses both land in the city and its ETJ, and the subject tracts contain Neighborhood Centers, Employment Centers and Rural Areas future land use designations and are located within close proximity to a 500-year Floodplain/ Environmentally Sensitive Areas. The Denton Plan designates future land uses to manage the quality and quantity of growth by organizing the land use patterns, by matching land use intensity with available infrastructure, and by preserving floodplains as environmental and open space corridors. The Denton Plan will be used as a basis for final zoning classifications after the properties are annexed. 2 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc IV. UTILITY (RATEPAYER) SERVICES A. Solid Waste Collection The City of Denton is the exclusive residential and commercial Solid Waste service provider within Denton's city limits. The City Ordinance requires Solid Waste services for all residences and commercial businesses located in the City. The City of Denton Solid Waste Department is fully funded through the service fees charged, and receives no funding from city tax revenues. Solid waste refuse collection services will be provided to the newly annexed property immediately upon the effective date of the annexation. To request solid waste refuse collection services, please telephone the City of Denton Solid Waste Customer Service Department at 940-349-8787. Commercial customers are required to complete and submit a Service Agreement to Solid Waste Customer Service prior to receiving service. Residential Solid Waste Services Each residential address will be provided a 96-gallon wheeled refuse cart, which will be serviced one time per week. Residents are required to place their refuse cart(s) at the curb prior to 7:00 a.m. on their collection day. Carts should be placed at the curb for collection no earlier than 6:00 p.m. the evening prior to their collection day. Carts are to be removed from the curb no later than 6:00 a.m. on the day following their collection day. All refuse placed in the cart for collection must be bagged to eliminate wind blown debris and littering. Refuse that is not placed in the cart with the lid closed will not be collected. Additional carts may be provided for an additional monthly charge. Weekly yard waste service is provided. Weekly curbside recycling services are provided by Trinity Waste Services. Contact Trinity at 1-800-766-1758 to obtain curbside recycling information. Each residential customer's refuse cart service, curbside recycling service, and yard waste service will occur on the same day each week. Commercial Refuse Service Each commercial business will be provided with a commercial container(s), which are available in a variety of sizes and frequencies of collection, based on the waste type and volume generated. All refuse placed in the container for collection must be bagged to eliminate wind blown debris and littering. Refuse that is not placed in the container with the lid closed will not be collected. Refuse placed outside the container is subject to code enforcement regulations, including potential fines. 3 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc Landfill Service The City of Denton Solid Waste Landfill hours of operation are 7:00 a.m. to 4:00 p.m. Monday through Friday; and 7:00 a.m. to 12:00 p.m. on Saturdays. For information regarding disposal charges, call the Landfill Office at 940-349-7510. B. Water/Wastewater Facilities The area lies within the City of Denton's Certificate of Convenience and Necessity (CCN) service area for both water and wastewater service. The nearest available water lines that could be extended by the developer to serve the property are a 12" line at the intersection of Geesling and Fishtrap, 1,750 feet from the southwest corner of the proposed annexed area. Currently, there are no Capital Improvement Projects proposed for the annexation area. Currently there are no existing sewer lines on either side of Mingo Road to serve the proposed development. The nearest existing sewer line is a 10" line at the intersection of Geesling Road and US Hwy 380. However, planned development along Lakeview Blvd south of US 380 would put a sewer line closer to the annexation area. Additionally, the sewer line at Geesling and US 380 feeds into a lift station which is currently not sized for significant additional flow. Therefore, the lift station and force main would require expansion to be used by development in the annexed area. Finally, the annexation area drains away from the existing sewers in the area, which means that one or more lift stations will be required to provide sewer service. Computer modeling of the wastewater system will provide the means necessary to accommodate all of the wastewater flows in the existing sewer system downstream of the development. Maintenance of water and wastewater facilities in the area to be annexed that are not within the service area of another water or wastewater utility will begin upon the effective date of the annexation using existing personnel and equipment. The City shall provide a level of water and wastewater service, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or projected in the area. C. Drainage Services Drainage maintenance will be provided to the property upon the effective date of the annexation. The City shall provide a level of drainage services, 4 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the city with topography, land use, and population density similar to those reasonably contemplated or projected in the area. D. Electrical Services Denton Municipal Electric is certified by the State to provide electric utility service to the annexation area should a request be made by a property owner. Customer cost participation will be required for the overhead line extension to the site. V. OTHER SERVICES Other services that may be provided by the City, such as municipal and general administration will be made available on the effective date of the annexation. The City shall provide a level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City with topography, land use, and population density similar to those reasonably contemplated or projected in the area. VI. CAPITAL IMPROVEMENTS PROGRAM (CIP) No new construction of additional water, sewer, and drainage facilities is contemplated within the annexed area as a result of this annexation because the annexed area on the date of annexation will have a level of full municipal services equal to other areas within the City having similar characteristics of topography, land use, and population density. Street improvement needs will be investigated as part of the City of Denton Capital Improvement Program. Thus, no construction of public improvements is contemplated as a result of this annexation that would begin within two and a half (2 IIz) years after the effective date of the annexation. The City shall consider construction of other public improvements as the needs dictate on the same basis as such public improvements are considered throughout the City for areas having similar characteristics of topography, land use, and population density. VII. UNIFORM LEVEL OF SERVICES MAY NOT BE REQUIRED Nothing in this plan shall require the City to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. VIII. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. 5 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc IX. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056 (Vernon Supp. 2000). 6 S:\Annexation\A05-0001 AshGrove Cement\PH CC 1st A05-0001\6 - A05-0001 DRAFT ANNEXATION PLAN.doc AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Parks and Recreation Department Howard Martin, 349-8232 .. ACM: SUBJECT Hold a public hearing and consider adoption of an ordinance granting approval of a Public Utility and Drainage Easement of 0.081 acres for a subsurface use of a portion of the Denton Branch Rail Trail near Mile Post 724.8 for the purpose of a wastewater and stormwater sewer pipeline in accordance with Chapter 26 of the Texas Parks and Wildlife Code; providing for the issuance of an easement; and providing an effective date. (Parks, Recreation and Beautification recommended approval with a vote of 5-0). BACKGROUND Providence Place Apartment complex has requested the use of parkland in order to locate a stormwater and wastewater pipeline across the Denton Branch Rail Trail as part of a future expanSIOn. State law as defined in Chapter 26, Protection of Public Parks and Recreational Lands, of the Texas Parks and Wildlife Code requires that: (a) a municipality of this state may not approve any program or project that requires the use or taking of any public land designated and used prior to the arrangement of the program or project as a park unless the municipality, acting through its duly authorized governing body or officer, determines that: (1) there is no feasible and prudent alternative to the use or taking of such land; and (2) the program or project includes all reasonable planning to minimize harm to the land, as a park, resulting from the use or taking. (b) A finding may be made only after notice and a hearing as required by this chapter. /I If the proposed storm water and wastewater pipeline easement is allowed, a value must be placed on the 0.081 acres section and charged to the Providence Place Apartments. In addition, land disturbed on the trail will be returned to its original condition. Possible alternatives include: . Select a route through the city that would not cross the Denton Branch Rail Trail area. A routing study was conducted. Since negotiations for an easement to the south along the eastside of the trail appears likely to not be attained, there are no other feasible or prudent alternatives due to the topography and hydraulics of drainage. . Permit the proposed Denton Branch Rail Trail crossing of a stormwater and wastewater easement of the trail right of way to connect to existing sewer line and creek channel on the Westside of rail trail right of way. As a condition of construction, require the installer to - 1 - install all pipe structures to meet the American Railway Engineering Maintenance Standards for the future re-activation of the rail line for a rail commuter line. OPTIONS City Council may approve or deny the recommendation to a allow a public utility and drainage easement across the Denton Branch Rail Trail, select another option outlined above, or request staff to submit an alternative not listed. RECOMMENDA TION After reviewing all alternatives, staff recommends approval of the use of the Denton Branch Rail Trail for the public utility and drainage easement at milepost 724.8. There will be no major impact on current park operations or programs. The Parks and Recreation Department confirms that the City of Denton has investigated all other alternatives and has used reasonable planning to minimize harm to the land. ESTIMA TED SCHEDULE OF PROJECT Construction is projected to begin in fall 2005. PRIOR ACTIONIREVIEW The Parks, Recreation and Beautification Board recommended approval (5-0) of this expansion of Providence Place Apartments utility and drainage easement at a meeting on July 11,2005. FISCAL INFORMATION Compensation related to this use is still under discussion with Providence Place Apartments. It is reasonable to expect that improvements directly related to programs and/or facilities in the Denton Branch Rail Trail will be provided. BID INFORMATION Not applicable EXHIBITS: 1. Ordinance 2. Map 3. Minutes R tflll S b Ott d . )"1 '{I " Jf"" ,-"- ! '/,1 ,1'0 ..- r ~I ~.v-.L..- ~ .N ~/...1h/1:- .!~ .;.--'::/. 1::':p7:- ""-?,f::1 ~'.H/;/ j: ii/d':'Y' /::;i(i;;;!i$J;,~ 'J-:-' J ~'l< ~rt: ."t ~'/ ~~'/Jw.:.'J I ~ - Iy;;{' Janet Fitzgerald, Director Parks and Recreation Department Prepared by: ~ Bob Tickner, Superintendent Parks and Recreation Department - 2 - ORDINANCE NO. AN ORDINANCE GRANTING APPROVAL OF A PUBLIC UTILITY AND DRAINAGE EASEMENT OF 0.081 ACRES FOR A SUBSURFACE USE OF A PORTION OF THE DENTON BRANCH RAIL TRAIL NEAR MILE POST 724.8 FOR THE PURPOSE OF A W ASTEW ATER. AND STORMW ATER SEWER IN ACCRODANCE WITH CHAPTER 26 OF THE TEXAS PARKS AND WILDLIFE CODE~ PROVIDING FOR THE ISSUANCE OF AN EASE1\.1ENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 26.001 of the Texas Parks of Wildlife Code provides that public land designated and used as a park may be used for a non-park purpose if the City Council finds after notice and hearing that there is not feasible and prudent alternative to the use of such land for the proposed project and the proposed project includes all reasonable planning to minimize harm to the park resulting from such use; and WHEREAS, the City of Denton desires to provide for a required wastewater sewer and drainage easement of approximately 0.081 acres across the trail for proper wastewater and storm water utility services; and WHEREAS, The Providence Place Apartments desires to construct a wastewater sewer and storm water drainage pipeline across the Denton Branch RaillTrail since alternative options would not be feasible and pmdent; and WHEREAS, the City provided notice in the Denton Record. Chronicle on July 4, 11. and July 18, 2005 of a Public Hearing to be held on July 26, 2005 in the Council Chambers to consider the alternatives to the use of City Park for the subject wastewater sewer and drainage easement; and WHEREAS, the City Council on July 26, 2005 received testimony at a public hearing on the issues of no feasible and prudent alternative to the use of the property for the proposed project and that the project includes all reasonable planning to minimize harm to the Denton Branch RailITrai1 resulting from the public utility and drainage easement~ and WHEREAS. the City Council finds that the project does not fall within the purview of Section 253.001 of the Texas Local Government Code; and WHEREAS, the City Council finds that there is no feasible and prudent alternative to the use of the park land and that the subject wastewater sewer and drainage project includes all reasonable planning to minimize harm to the park as a result of the project; NOW, TIffiREFORE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAlN'S: SECTION 1. The findings and recitations contained. in the preamble of this ordinance are incorporated herein by reference. EXHIBIT 1 S:lOur Do<1uu...,\O"ti",,,,,,<>I05\CHAP26-railtr.n~Posl724,"-OOC SECTION 2. The Public Utility and Drainage Easement proposed by the Providence Place Apartments (the "Project") shall be constructed and maintained below the surface of the park property described in Exhibit A, which is attached hereto and made a part hereof for all purposes, and that the surface of the park after installation of the wastewater sewer and storm water pipe shall be constructed in a manner so that the park land may still be used by its patrons after completion of the Project in the same manner it was used prior to the Project. In addition~ during construction provisions shall be made so that the hike and bike trail will always be open to the public. SECTION 3. A Public Utility and Drainage easement which is revocable as required by law (National Trails System Act, 16 U.S.C. 1247(d)) shall be signed by the City Manager or his designee and approved by the City Attorney allowing the use of the park property for the Project as referenced above with appropriate provision to insure the improvements are constructed in accordance with City Subdivision Rules and Regulations; American Railway Engineering and Maintenance of Way Standards, protects the patrons using the park from injury and damage both during and after construction of the Project; compensates for the reasonable market value of the use herein granted and generally protect the health, safety and general welfare of the City. SECTION 4. During construction of the Project, temporary use of such additional park land necessary to stage the construction of the improvements may be approved by the Director of Parks and Recreation Department. However, at the completion of the construction activities for the Project such additional park land shall be restored to the condition to which it existed prior to the beginning of such construction activities. SECTION 5. The rights and benefits set forth in this ordinance may not be assigned without the express written consent of the City. SECTION 6. The findings contained in the preamble of this ordinance are incorporated into the body of this ordinance. SECTION 7. 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: Page 2 of3 8,10., Dooum<utslOrdIDanooo\05\CI!Al'26-<oilu1lil-Post 724.8.00c By: Page 3 of3 CITY OF DENTON STORM SEWER EASEMENT Exhibit A DAVID HOUGH StJ'R.VEY ABSTRACT NO. 646 STATE OF TEXAS f COUNTY OF DENTON ~. ALL TfIAT CERTAIN TRACT OR PARCEL OF LAND BEING SITUATED IN nIE.,DA VlD HOUGH SURVEY, ABSTRACfNO. 646, DENTON COUNTY, TEXAS. AND BElNG A PORllQN OF THAT FQRMER 60 FOOT WIDE DALLAS & WICHl1'^~OADRImrr- .OF-WAY, ACCOlUllNG TO 'l'HB DEED FILlm OF RECORD IN VOLt.JMBR. PAGE 435. DEED RECORDS DENTONCOUNI'Y~, WHICH WAS QUITCLAIMED TO THE CITY OF DENTON ACCORDING TO THE DEEDFH.ED OF RECORD IN DENTON COUNTY CLERK'S Fn..E N0.93-QOS8485, DEED.REOORDS DENTON COUNTY TEXAS, AND BEINO MOREPARTICULARLYDESCRlBED AS FOLLOWS: BEGINNING AT THESOumEAST CORNEROFTHAT TRACTOFLAND CONVEYED TO QUE AND BRENDA BRlTI'AINACCORDING TO THE DEED.PlLE OF RBOOlID iN VOLUME 4734, PAGE 1616.DBED RECORDS DENTON COUNTVTExAS. THE SOUTHWEST CORNER OF THAT TRACT OF LAND CONVEym> TORODERT.. DONNELLY ACCORDING TO THE DEBDFILl! OF' RECOR.nlN VOLUME 3384~ PAGS 90S. DEED RECORDS DENTON COUNTY TEXAS, ANDTHENORTHLlNE OF SAID CITY OF DENTON TRACT; TllENCESOum 00031'16" WEST. DEPARTING SAlD NORTH LlNE. ADISTANCE OF 71.35 FEET, TO A POINT IN TIlE SOUTH LINE OF SAlDClTYOF DENTONTRACT TO A POlNT POR CO.RNER; THENCE NORTH 56042'4211 WEST. ALONG SAID SOUTlILINB,.ADISTANCE OF 18.62 FEET TO A PQINTFOR CORNER~ . THENCE NORTHS6042'39" WEST. CONTINUING ALONG SAID SOUTH LINE, A DISTANCE OF 20.84 FEET TO A POINT FOR CORNER.; THENCE NORTH 00"31'1611 BAST, DEPARTING 'SAID SOUTH LINE,ADISTANCEOF 69.61 FEET TO APOlNT IN THE NORm ImEOF SAID CITY OF DENTON TRACT, AND THl3 SOUTH LlNEOFSAID BRIITAINTRACf; THENCESOum 60007'00" EAST. ALONG THE COMMON LINE OF SAIDBRlTrAIN AND CITY OF DENTON TRACTS. A DISTANCE OF 24;75 FEET; , THENCE SOUTH 56042'39,1 EAST~ CONTINUING ALONGSAlD COMMON L~A DISTANCE OF 33.81 FEET; TO THE PLACE OF BEGINNING AND CONTAlNING 3,548.87 SQUARE FEET~ OR 0.081 ACllESOF LAND MOkE OR LEsS. AND BEING SUBJECT TO ANY AND ALL BASBMENrS THAT MAY AFFECT. If\1&CPROJECTW>ROVlDENTREALTY (0079)\(028) QUAILCRBEK; PHASE IDLEGALSlCITYOF DENTONDAVm HOUOHSURVEY.DOc -c f Z I ~ S; ;:t Il "'- ~';... ~ ~~ -..J G Vi: I- ~ ~ W < r.JJ >= ~ <C CI) W~ t: W ~YJ>"" m ' :x:t1:..U') _w..W~O~::;)i=:g :c 0 ,'" _ 4( t...('I.) , Z N )( ..., ~, 0 :J 111 c( ,-t-%OW Z CO :J .", 0 Z _ OO=>>Z~' <C d Oe a: :z:~ C 00 b :;; La ~ I- Z Q~ ->'a " I ~ , z~...,'! ~ ~" ~;:s -1':>:1~p~. i ' '" '4" ~ ,do. ! 9.. l- ;::: } "u .zf.- <;;y' I l;:j ~ -<:0:: ! ~ -....n C7, ~_;~ ,/ i.: ~-? t),~ ~ 4 ,"'. ~~,' /{J "Ob.y'b'l ~~ / "" ''''.- f ,. , I I 7- ---" 11 / ~ ~j;r...,~t:$-~~i:> / /' ,f .. .!j.(' -------. j{-- I r(; ~ O~?&i L,pj;.~a~ . ,j . ~' A!? k~.zt> . -~A , . ,..<~~~~' .. -- .:; . .'/ c(~rr; . ~ " /. ,/ /~ 7-"' I // o./f:;IY'/ - -~~:-: :' ~ - - -- -/7}~~' . ,'>. 0- <: '" / } /_ () ~~ ',:.. I / / ! / J#~ kf' t/! I / / 1/'" ~_O ,;:; '&V,~ I ~ , / Q ,iJ1J'" :;;:,. ~<y I '" ! II .,~~'<s4' "'&!" I .. " " ~"... V <:>~ fI'" I ;Q t ~ ~'. .;i,!v "",''.1., ,! Q:',~ ,8),'59 I Sl ~ " ~'R '" ",'It:; {;J /}'..r I ~ I " "P""U"f....~ I 0:" , .~Q"_ I ( "ttj"1'f I , <:f .9'. OJ I . _ _0- f _~ '" I I I I I / ~ ~ >= ! ~ II e', ~i~J 8 iijl , ~(! i ~ lil I I I i I ! 1 ! I j I I~ Draft Parks, Recreation and Beautification Board Minutes July 11,2005 Members present: Teresa Andress, Chuck Smith, Geri Aschenbrenner, Jo Kuhn, and Ross Richardson. Patrice Lyke arrived late after action items were discussed. Members absent: Reggie Heard. Staff present: Janet Fitzgerald, Bob Tickner and Janie McLeod. Others present: Alan Bussell of Greg Edwards Engineering Services, Sandy Stevens with Jones and Carter, and Mat Harris representing Providence Place Apartments. Approval of Minutes of June 6, 2005. The minutes were approved as distributed. ACTION ITEMS Proposed Stormwater and Wastewater Easement - Denton Branch Rail Trail. Bob discussed the Providence Place Apartment complex request for the use of parkland in order to locate a stormwater and wastewater pipeline across the Denton Branch Rail Trail. Bob said that the apartment complex wants to expand its complex and needs to add to its capacity. The property to the south has indicated he is not interested in granting an easement across his land at this time. Bob stated that the subsurface easement use would not be noticed on the trail and will not have any negative impact. Construction will meet with railroad specifications for when Denton County Transit Authority needs to construct the rail commuter line. Janet said the release of water up-stream of the trail railroad trestle appears to not be a negative impact on the railroad trestle structure. Teresa asked if the users of the trail would have access to the trail during construction. Sandy Stevens responded that half of the trail would be closed off for work then the other half would be worked on so that users would have uninterrupted use of the trail. Teresa asked if the project could be constructed so it did not impede the use of the trail during construction. Sandy Stevens of Jones and Carter Engineering stated they would specify in the construction documents for a safe route through the construction area at all times. Teresa asked if any trees would be removed as a result of construction of the line. Bob stated that there was the potential for at least one Post Oak to be removed, but the majority of growth was small understory trees and scrub-brush. Sandy Stevens stated that any trees removed would be mitigated as required. Ross asked if there will be any future expansions of the apartment complex and would Jones and Carter be coming back later requesting additional easements on the trail. Sandy responded that there would not be any more additions to the complex. ACTION: Jo made a motion to approve the request for Providence Place Apartment complex to use the parkland in order to locate a stormwater and wastewater pipeline across the Denton Branch Rail Trail contingent on uninterrupted use of the trail during the construction. Geri seconded the motion and the Board voted to approve the request unanimously. EXHIBIT 3 Draft DIRECTOR'S REPORT Denton Aquatic Center Update - Janet provided a brief overview of the first three weeks of operation at Water Works Park. Although attendance and revenue is up, it is not projected to be able to cover natatorium expenses. Ross asked about new marking for the water park. Janet said that HOT funds were available for advertisement to attract more non-residents to the park. Jo suggested by changing the font and color on the ads running in the newspaper it could be more eye catching. Geri commented that a wave pool had been suggested and asked if there were any plans in the future to incorporate one. Janet said no there are not plans in future developments to add a wave pool. She added that she would like for the next additions to the park to be a high priority in future bond programs. Project Status Report - Teresa asked about the status of the Lake Forest project. Bob said that the plat has been filed and things are moving forward. He added that trees will be cleared and moved in the near future. He added that much of the work would be completed in-house. It was asked if the batting range was up and operating. Janet commented that is has not opened yet but the operated does have a building permit. Keep Denton Beautiful- There were no questions. Items for Upcoming Meetings - None There being no further business, the meeting was adjourned at 6: 10 p.m. AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Fiscal Operations ACM: Kathy DuBose ,. SUBJECT Consider approval of a resolution nominating a member to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. BACKGROUND The Denton Central Appraisal District (DCAD) has notified the City of a vacancy on the Board of Directors. Generally, Board of Directors are nominated and elected by taxing jurisdictions once every other year. (All members of the existing board will complete their terms in December 2005.) Mr. Richard Smith will be moving in the very near future and the Board is requesting nominations to fill his vacancy and complete his term. The chief appraiser will deliver the nominations to the Board of Directors and by maj ority vote; one of the nominees will be selected to fill the vacancy. Eligibility Guidelines: . The selection process is set forth in Section 6.03 of the Property Tax Code as follows, "If a vacancy occurs on the board of directors other than a vacancy in the position held by a county assessor-collector serving as a nonvoting director, each taxing unit that is entitled to vote by this section may nominate by resolution adopted by its governing body a candidate to fill the vacancy. The unit shall submit the name of its nominee to the chief appraiser within 10 days after notification from the board of directors of the existence of the vacancy, and the chief appraiser shall prepare and deliver to the board of directors within the next five days a list of the nominees. The board of directors shall elect by majority vote of its members one of the nominees to fill the vacancy." . An appraisal district director must reside in the appraisal district for at least two (2) years immediately preceding the date he or she takes office. Most residents are eligible to serve as a director. . An employee of a taxing unit served by the appraisal district is not eligible to serve as a director. However, if the employee is an elected official, he or she is eligible to serve. . A statute relevant to the Board selection process prohibits nepotism and conflict of interest for appraisal district directors and chief appraisers. In summary, the law states that: ...... ."a person may not serve as director of closely related to anyone in the appraisal district or if related to anyone who represents owners in the district, or if the person has an interest in a business that contracts with the district or a taxing unit. A chief appraiser may not employ someone closely related to a member of the board of directors". Agenda Information Sheet July 26, 2005 Page 2 . EXPERIENCE - In considering individuals to serve as directors, taxing units should look for expertise in such areas as accounting, finance, management, personnel administration, contracts, computers, real estate or taxation. Historical involvement in local government activities also indicates that someone should make an excellent Board member. . FREQUENCY OF MEETINGS - The applicable statutes require the board of directors to meet not less often than once each calendar quarter. The DCAD Board meets more often than is required by law. FISCAL INFORMATION There is no fiscal impact to the City of Denton. EXHIBITS DCAD Notification Memo DCAD Board of Directors Resolution Respectfully submitted: ". A~ ' ., ; ~ .., ',. I t- o I ~' ;ill ~. ,.,. Diana G. Ortiz Director of Fiscal Operations DENTON CENTRAL ApPRAISAL DISTRICT 3911 MORSE STREET, POBox 2816 DENTON, TEXAS 76202-2816 ~DW~ 0 JUL - 6 2005 MEMO INANCE DATE: July 1,2005 TO: All Taxing Jurisdictions FROM: Denton Central Appraisal District Board of Directors SUBJECT: Vacancy on Board of Directors The Denton Central Appraisal District Board of Directors is requesting nominations for a vacancy on the Board of Directors. The vacancy is to complete a term that expires 12/31/05. All nominations must be submitted to the Chief Appraiser by resolution within forty-five days after receiving this notification. The Chief Appraiser will deliver the nominations to the Board of Directors and by majority vote one of the nominees will be selected to fill the vacancy. PHONE: (940) 349-3800 METRO: (972) 434-2602 FAX: (940) 349-3801 DENTON CENTRAL APPRAISAL DISTRICT BOARD OF DIRECTORS 2004-2005 Terms ending December 2005 Lee Baker 616 Paisley Drive Flower Mound, Texas 75028 Ben Harmon 917 Angela Ct. Lewisville, Texas 75067 Steve Mossman P. O. Box 1249 Denton, Texas 76202 Richard Smith 1026 West Main St., Ste. 203 Louisville, Texas 75067 Charles Stafford 1903 Williamsburg Row Denton, Texas 76209 Rick Woolfolk 115 W. College St. Denton, Texas 76201 "Dedicated to Quality Service" www.cityofdenton.com s: \Our Documents\Resolutions\05\nominate central appraisal district.doc RESOLUTION NO. A RESOLUTION NOMINATING MEMBERS TO THE BOARD OF DIRECTORS OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, a vacancy exists for the Board of Directors ofthe Denton Central Appraisal District; and WHEREAS, the City of Denton, Texas wishes to nominate a member to said Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. That the City of Denton, Texas hereby nominates as a member to the Board of Directors of the Denton Central Appraisal District for the remaining term and expiring December, 2005. SECTION 2. That this resolution 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: BY: AGENDA INFORMATION SHEET AGENDA DATE: July 26, 2005 DEPARTMENT: Legal Department CM/DCM/ACM: Herbert L. Prouty, Consulting Assistant City Attorney SUBJECT: Consider and adopt an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a Settlement Letter Agreement with TXU Electric Delivery accepting the settlement between TXU Electric Delivery and the Steering Committee of cities served by TXU Electric Delivery; and providing an effective date. BACKGROUND: Both Mayor Euline Brock and City Manager Mike Conduff have received letters from Danny Hodges, the Community Relations Manager of TXU Electric Delivery ("Electric Delivery") offering to pay the City of Denton initially $1,765.08 and, thereafter, $1,680.72 annually if the City agrees to sign a Letter of Agreement accepting benefits comparable to those reached in a settlement between Electric Delivery and the Steering Committee of the cities served by Electric Delivery. A copy of the Letter of Agreement is attached. A number of cities served by Electric Delivery formed a coalition and then filed a series of Show Cause Actions challenging certain TXU municipal utility rates. According to the information provided by Mr. Hodges and through discussions with the law firm of Lloyd Gosselink Blevins Rochelle & Townsend, P.C., who represented the coalition of cities in this matter, the settlement involves a payment of $8.5 million to the coalition of cities. About $6 million of this is a refund of 25 percent of the annual TXU's street lighting revenues to the coalition of cities. The other $2.5 million constitutes a refund of some additional municipal electric revenues to the coalition of cities on a per capita basis. Although the City of Denton was not a member of this Steering Committee or the coalition of cities, TXU is offering Denton and a number of other non-coalition cities benefits comparable to those reflected in the settlement. It is my understanding from talking with the Lloyd Gosselink firm that what Denton is being offered represents a refund of 25 percent of TXU's annual street lighting charges. Denton's agreement not to initiate a Show Cause Action or similar proceedings concerning Electric Delivery's rates or to participate in any such Show Cause Action before July 1, 2006. is the consideration for these cash payments. In accordance with the Letter Agreement, the cash payments would cease (1) upon the date that the City initiates, intervenes in, or participates in a Show Cause Action or similar proceeding, (2) the date that Electric Delivery ceases to have any obligation to pay any amounts under paragraphs 4 of Exhibit A of the Settlement Agreement, or (3) the date the electric rates approved in Electric Delivery's next system-wide rate case at the PUC or in a city rate inquiry become effective. OPTIONS: 1. The City Council can approve the Ordinance which authorizes the acceptance of the Settlement Letter Agreement. S:\OUT Documents\Miscellaneous\05\072605 AIS- TXU Electric Delivery.doc 2. The City Council can choose not to approve the Ordinance or the Settlement Letter Agreement and consider filing a Show Cause Action against TXU Electric Delivery. 3. The City Council can approve the Settlement Letter Agreement and join the TXU coalition of cities. RECOMMENDATION: The staff recommends that the City choose Option 1 and pass the Ordinance accepting the Settlement Agreement. Because Electric Delivery's presence in Denton is extremely limited since Denton Municipal Electric serves most Denton electric customers, we would not recommend the City filing a Show Cause Action against TXU to dispute the amount of street lighting and other municipal utility rates. For this same reason, although we have been invited to become a member of the coalition, the staff does not recommend at this time that the City join this coalition. Because the amounts that the City would receive as a result of the participation of the rate case are relatively small, it may cost us more in staff time than any financial benefits we would gain from either initiating our 0\\11 Show Cause Action or joining the coalition of cities who have settled this matter with TXU. FISCAL INFORMATION: Since the payments from TXU, even though small, were not anticipated in the budget, these amounts will increase the revenue of the City and will have a positive financial impact. Respectfully submitted, HLP:tr Page 2 S:\OUT Documents\Miscellaneous\05\072605 AIS- TXU Electric Delivery.doc ATXU ~4. Electric Delivery TXU Electric Delivery 31 DO Garrison Rd. Corinth, Tx.76210 Tel: 940-497-7510 Fax: 940-497-7517 Danny Hodges Community Manager 'RECt'VED JUN 2 7 2005 ,....~. fFY 8>: r.I"MTO~\ REt:Ertrrnt June 22, 2005 JUN 2 3 2005 City of Denton 215 E. McKinney Denton, Texas 76201 CITY MANAGER'S OFFICE Re: Settlement Between TXU Electric Delivery and the Steering Committee of Cities Served by TXU Electric Delivery Dear Mr. Conduff, As you know, TXU Electric Delivery Company ("Electric Delivery") and the Steering Committee of Cities Served by TXU Electric Delivery ("Steering Committee") have concluded a settlement of all outstanding issues related to existing and potential Show Cause Actions and other pending regulatory issues. The purpose of this letter is to offer your city benefits comparable to those reflected in that settlement. A copy of that settlement is attached to this letter as Exhibit A. In consideration for your city's agreement not to initiate a Show Cause Action or similar proceeding concerning Electric Delivery's rates before July 1, 2006 and not to intervene in or participate in any manner in any Show Cause Action concerning Electric Delivery's rates initiated at the PUC or in any other jurisdiction prior to July 1, 2006, Electric Delivery will make a cash payment of $1,765.08 to your city. Starting March 31, 2006, and each March 31 st thereafter, Electric Delivery will also make an annual cash payment of $1,680.72 to your city. Electric Delivery's obligation to make this payment ceases on (1) the date that your city initiates, intervenes in, or participates in a Show Cause Action or similar proceeding, (2) the date that Electric Delivery ceases to have any obligation to pay any amounts under paragraph 4 of Exhibit A, or (3) the date that the tariffs approved in Electric Delivery's next system-wide rate case at the PUC or in a city rate inquiry become effective on a temporary or permanent basis ("Termination Date"); provided, however, in the year the new tariffs become effective, the annual payment shall be prorated until the Termination Date. Your city's execution of this Letter Agreement signifies your city's agreement to the terms of this paragraph. June 22, 2005 - 2 - Electric Delivery and the Steering Committee have also agreed to pursue discussions concerning various subj ects. Any improved processes or revised tariffs that result from Exhibit A will be made available to and will be applicable to your city. Your city's acceptance of this Letter Agreement also signifies that your city agrees that the amounts paid under this Letter Agreement are paid solely in consideration for your city's forbearance from filing, pursuing, or intervening in any Show Cause Action or similar proceeding against Electric Delivery and are not a rate reduction, refund, rebate, discount, preference, or privilege of any kind for services provided by Electric Delivery. Upon receipt of an executed original of this Letter Agreement, Electric Delivery will send you a check in the first amount specified above. If your city agrees to the provisions of this Letter Agreement, please have a properly authorized representative of your city sign in the space provided below and return the executed original to the undersigned. The offer reflected in this letter expires on September 15,2005. Sincerely, ~ ~ AGREED TO AND ACCEPTED: City of Denton By: Its: Date: S:\Our Doeurnents\Qrdinanees\05\TXU Elee Delivery.doe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A SETTLEMENT LETTER AGREEMENT WITH TXU ELECTRIC DELIVERY ACCEPTING THE SETTLEMENT BETWEEN TXU ELECTRIC DELIVERY AND THE STEERING COMMITTEE OF CITIES SERVED BY TXU ELECTRIC DELIVERY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, TXU Electric Delivery Company ("Electric Delivery") and the Steering Committee of cities served by Electric Delivery ("Steering Committee") has settled all issues relating to existing and potential Show Cause Actions and other pending regulatory issues regarding municipal street lighting and other electric rates; and WHEREAS, although, the City of Denton was not a part ofthe coalition of cities and was not on the Steering Committee, Electric Delivery has offered the City benefits comparable to those reflected in the settlement in return for Denton's agreement not to initiate a Show Cause Action or similar proceeding concerning Electric Delivery's rates before July 1, 2006 or to otherwise not participate in any such Show Cause Action; and WHEREAS, Electric Delivery has written both Mayor Euline Brock and City Manager Mike Conduff offering the City comparable benefits of this Settlement Agreement and the offer expires on September 15, 2005; and WHEREAS, the City Council considers it in the public interest to accept this Settlement Agreement with Electric Delivery; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Manager is hereby authorized and directed to execute and accept the Settlement Agreement dated June 22, 2005 of various outstanding and potential Show Cause Actions reached with the Steering Committee of cites served by TXU Electric Delivery in the form of the Letter Agreement, which is attached to and made a part of this Ordinance for all purposes. SECTION 3. The City Manager is hereby directed to return one executed original of the Settlement Agreement to Danny Hodges, Community Relations Manager, TXU Electric Delivery, 3100 S. Garrison Road, Corinth, TX 76210. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. S:\Our Documents\Ordinances\05\TXU Elec Delivery.doc PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: J Page 2 of2 day of EULINE BROCK, MAYOR , 2005.